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We Make Marketing Work Better
marketing
analysis
Email Marketing: Making It Personal
Adam BenjaminVice President & General ManagerDoubleClick Email Solutions
June 2004
© 2004 DoubleClick Inc. All Rights Reserved.
Marketing’s goal
Right Messageto the
Right Customerat the
Right Time
Maximize customer value
through an ongoing dialogue
based on an understanding of customer needs
© 2004 DoubleClick Inc. All Rights Reserved.
Offer Choices
LINKS
Multi-Channel
Creative Copy
When did it get so complicated?
List Selection
ROI ?
CLTV
Subject Lines
Personalization
List Hygiene
© 2004 DoubleClick Inc. All Rights Reserved.
Email marketing’s evolution to date
Factor ’96-’98 ’99-’01 ’02-’04
Adoption Dabbling Broad adoption Established
Organization Part of “Web” team
Where does this belong?
Part of marketing
Focus Basics. What’s a bounce?
List growth Revenue targets
Neat Tricks Real-time tracking
HTML, personalization
Dynamic content
Real-Time Messaging
Permission Opt-in/out, SPAM
Opt-in/out,
SPAMOpt-in/out,
SPAM
© 2004 DoubleClick Inc. All Rights Reserved.
What are the goals of your email program?
• Understand the email channel as it relates to your business• Example high level goals:
• Drive direct sales• Reduce cost of communications• Create greater customer loyalty and satisfaction
• Where does email fit into your overall marketing and sales strategy
Are you building relationships?
6
Crate & Barrel, a respected leading housewares retailer in the U.S., currently with over 80 stores in 15 major markets nationwide.
• Used DARTmail to promote a retail sales event to drive furniture store traffic and sales.
• Used DARTmail to target customers in their database who lived in zip codes near their furniture.
• Used DARTmail to measure the response of the campaign.
Results • Store sales during the week of the email promotion increased by more than 50% from the previous week.
• The email campaign successfully pushed store traffic for the sale as well as giving customers the opportunity to browse online before visiting stores.
Case Study
© 2004 DoubleClick Inc. All Rights Reserved.
Companies use email for a variety of business objectives
What is/are your marketing objective for house lists?
54% 52% 54%
63%
50%54%
0%
20%
40%
60%
80%
Brandawareness
Acquisition Immediatedirect sales
Retention/relationships
Upselling Providing info
Marketing Objective
% of Respondents
House Lists
DoubleClick Marketing Spending Index II, December 2002
© 2004 DoubleClick Inc. All Rights Reserved.
Email Strategic Framework
© 2004 DoubleClick Inc. All Rights Reserved.
Customer Base
Email Productivity
Delivery Success
Growth Rate, Unsub Rate
Bounce Rate, Block Rate
Open Rate, Click Rate
Conversion Rate
Average Purchase Value
ROI, Revenue per Contact
Registration Design…
ISP Relations…
Segmentation…
Order Process…
Cross-sell Promotions…
Everything below!
Interest Generation
Interest Conversion
Revenue per Action
Strategic Levers Key Measures Tactical Actions
A framework helps clarify objectives
© 2004 DoubleClick Inc. All Rights Reserved.
Subject Line A provided a 26% lift in sales
Subject Line A:
“A belated gift from the capital of comfort”
Subject Line B:
“The #1 guilty pleasure of 2002”
Control The Levers - It is better than guessing.And small differences can have a big impact.
© 2004 DoubleClick Inc. All Rights Reserved.
Case Study – Proflowers Subject Lines
Subject Line A:
“Last chance to order for Valentine’s Day is this Wednesday, order now”
Subject Line B:
“Only 48 hours to order for guaranteed Valentine Day delivery”
Proflowers tested two subject lines
Subject Line A provided a 23% lift in sales.
© 2004 DoubleClick Inc. All Rights Reserved.
What to test? When did it get so complicated???
Format Source of the name Subject line
From line Segmentation Personalization
Promotions Length Creative
Link placementTiming and frequency
Landing page
Geographic Remarketing Model scores
© 2004 DoubleClick Inc. All Rights Reserved.
“From” line is most compelling reason to open permission-based emails
• Consumers need to make a connection with sender to open
What most compels you to open a permission-based email?
59.9%
34.9%
63.3%
31.6%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
From Line Subject Line
% of Users
2002
2003
DoubleClick 2003 Consumer Email Study
© 2004 DoubleClick Inc. All Rights Reserved.
Email Strategic Framework… Part II
© 2004 DoubleClick Inc. All Rights Reserved.
Irrelevant messages damage relationships
Response to Irrelevant Email
55%
37%
22%
12%
Asked to be unsubscribed
Impression of that company/brandsending the message changed for the
worse
Stopped visiting that site altogether
Stopped shopping at that store
Source: Cyber Dialogue
BUT – the reality is that most people learn to ignore you…and increasingly so, complain to their ISP/Sys Admin.
© 2004 DoubleClick Inc. All Rights Reserved.
Is sending every email to everyone the right approach?
• If you are taking a campaign view, you might think so.
• “I have a campaign to send. Who should I send it to in order to maximize contribution?”
Campaign 1 Campaign 2 Campaign 3
Customer 1 X X X
Customer 2 X X X
Customer 3 X X X
© 2004 DoubleClick Inc. All Rights Reserved.
Is sending every email to everyone the right approach?
• But if you are taking a customer view, probably not.
• “What is the optimal sequence of communications for customer X to maximize his/her long-term value?”
Message 1 Message 2 Message 3
Customer 1 X X X
Customer 2 X X
Customer 3 X X
© 2004 DoubleClick Inc. All Rights Reserved.
Migrating from “Blast” to “Real Time”
New Registration
Welcome Message
Customer Anniversary
Thank You and Re-order
Abandoned Shopping Cart
Re-marketing Message
• Automatic messages based on customer events or actionsCampaign mentality Dialogue mentality
• Real-time dialogue with your customers based on specific events: behavioral, time-based, etc.
• High Value - Increased customer loyalty
Service Tips
Event Message
© 2004 DoubleClick Inc. All Rights Reserved.
Timely messages are relevant and get results
• Additional examples• “Only 5000 miles to Elite Status!”• Alert of changes in stock portfolio• Over your credit limit• New product available in previously purchased category
• What are the triggers in your business?
• Hard to be timely in a campaign mindset• Events are sporadic• No lead campaign development
© 2004 DoubleClick Inc. All Rights Reserved.
Segment(“Who”)
Message(“What”)
Channel(“Where”)
Classify customers to better understand needs.
Vary content to meet segment needs.
Channel of message: mail, email, store, site, etc.
Sequence(“When”)
Timing and sequencing of message delivery.
Customer Contact Levers
A better approach: design a comprehensive customer strategy (where you start can determine where you end)
© 2004 DoubleClick Inc. All Rights Reserved.
Email Strategic Framework… Part III
© 2004 DoubleClick Inc. All Rights Reserved.
Relevance is driven by customer insight—insight is driven by data
• Now is the time to get your data in order• Is your email database connected with other customer data
sources?• Do you have data quality processes in place?• Do you know when and where an address was added to your
database?• Are you capturing customer promotion history?• Do you have tools and process in place to derive insight from the
data?• Can you act on these insights?
• Breadth, depth and quality of data can be your largest driver of success
© 2004 DoubleClick Inc. All Rights Reserved.
Which data drive insight for your business?
Dimensions Example Data
Value $ purchase history
Behavior Purchase patterns, click behavior, service interactions
Needs/Interests Product categories purchased, survey response
Demographic/ Lifestyle
Age, gender, marital status, geography
Competitive Share of customer wallet
Relationship Stage Time since first/last purchase
© 2004 DoubleClick Inc. All Rights Reserved.
Current Email Performance Trends
© 2004 DoubleClick Inc. All Rights Reserved.
.
DoubleClick Q1 2004 Email Benchmark Data
Source: DoubleClick Internal Benchmark Statistics
Compiled from over 2 billion emails sent through DARTmail in Q1 2004, across hundreds of clients.
Benchmark data should be used as general guidelines - specifics for each company will be the key driver of results.
Metric Definitions:
Open Rate: HTML Opens / (HTML Delivered + Multi-Part Delivered)
Click-through Rate: Total Clicks / Emails Delivered
Unique Click-through Rate: Unique Clicks/ Emails Delivered
Bounce Rate: (Soft Bounces + Hard Bounces) / Emails Sent
© 2004 DoubleClick Inc. All Rights Reserved.
Trend line shows improved deliverability with a slight decline in opens and clicks vs. 2003
86.4 86.7 86.5 87.5 88.5 88.2 87.3 88.8
37.6 36.4 39.2 38.8 37.1 36.8 38.2
7.5 8.5 8.0 8.9 8.3 9.2 8.4 8.4
37.3
0
10
20
30
40
50
60
70
80
90
100
Q2 02 Q3 02 Q4 02 Q1 03 Q2 03 Q3 03 Q4 03 Q1 04
Source: DoubleClick Internal Benchmark Statistics
Delivery %
Open %
Click %
+1.4%
Q104/Q103 % Change
-2.5%
-5.6%
© 2004 DoubleClick Inc. All Rights Reserved.
6.4%8.0%
4.8% 5.2%3.8% 3.2% 3.1% 3.5%
23.6%25.3%
26.8%
22.3%
14.9% 15.5%
19.2%17.6%
15.1% 15.4%14.1%
15.5%
9.3%8.4% 8.4%
9.9%
0%
5%
10%
15%
20%
25%
30%
BusinessProducts
andServices
ConsumerProducts
ConsumerServices
FinancialServices
Travel Retail andCatalog
Publisher -BusinessAudience
Publisher -ConsumerAudience
Bounce rates fall between 3% and 27%
Source: DoubleClick Internal Benchmark Statistics
Q1 Bounce Rate Range By Industry Category(Note: Individual company policies affect overall bounce rates)
© 2004 DoubleClick Inc. All Rights Reserved.
Most categories see an increase in open rates
31.5
39.2
34.2
40.3
43.5
31.4
42.6
43.2
35.7
39.2
34.1
40.1
47.8
37.5
39.5
45.5
0 10 20 30 40 50 60
Publisher - Consumer
Publisher - Business
Retail & Catalog
Travel
Financial Services
Consumer Services
Consumer Products
Business Products & Services
Q1 04
Q4 03
Q1 Average: 38.2%Q4 Average: 36.8%
Source: DoubleClick Internal Benchmark Statistics
+3.8%
© 2004 DoubleClick Inc. All Rights Reserved.
Click rates remain stable quarter-on-quarter
8.4
7.3
7.5
7.6
9.2
9.3
10.9
8.9
9.6
7.3
7.1
8.3
11.8
9.3
9.5
6.7
0 2 4 6 8 10 12 14
Publisher - Consumer
Publisher - Business
Retail & Catalog
Travel
Financial Services
Consumer Services
Consumer Products
Business Products & Services
Q1 04
Q4 03
Q1 Average: 8.4%Q4 Average: 8.4%
Source: DoubleClick Internal Benchmark Statistics
© 2004 DoubleClick Inc. All Rights Reserved.
The average “clicker” clicks 1.6x per email
3.9
6.5 6.1
3.9
5.64.9
4.3
5.9
0
2
4
6
8
10
12
14
BusinessProducts &Services
ConsumerProducts
ConsumerServices
FinancialServices
Travel Retail &Catalog
Publisher -Business
Publisher -Consumer
Total ClickRate
UniqueClick Rate
Average total click-through: 8.4%Average unique click-through: 5.2%
Source: DoubleClick Internal Benchmark Statistics
1.62x
1.63x1.70x1.45x1.48x
3.03x1.52x1.46x1.72x
9.69.3
6.7
8.3
7.37.1
9.5
11.8
© 2004 DoubleClick Inc. All Rights Reserved.
E-mail productivity remains stable, with slight declines in Q1.
Click-to-Purchase Conversions
4.3%
3.5%
4.9%
3.5%3.9%
3.4%
4.2%
3.3%
2.0%
2.7%
3.5%
4.2%
5.0%
Q202 Q302 Q402 Q103 Q203 Q3 03 Q4 03 Q1 04
Orders per E-mail Delivered
0.25% 0.23%0.29% 0.30% 0.30%
0.24% 0.26%0.22%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Q202 Q302 Q402 Q103 Q203 Q303 Q4 03 Q1 04
Source: DoubleClick Internal Benchmark StatisticsNOTE: New to Q3, averages are calculated unweighted
© 2004 DoubleClick Inc. All Rights Reserved.
Current Challenge:
Spam and Deliverability
© 2004 DoubleClick Inc. All Rights Reserved.
Email marketing has its challenges…
90%
28%
11%6%
89%
42%
13%7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Unsolicited emails(spam)
Frequency ofpermission-based
emails
Volume fromfriends/colleaguestoo demanding to
keep up with
I do not have anyconcerns
Other
Percent of Respondents
2002
2003
What concerns you about your email inbox?
Source: DoubleClick Consumer Email Study
© 2004 DoubleClick Inc. All Rights Reserved.
90% have done something to limit spam
• Unsubscribing most common activity, bulk folders next most common followed by using “report spam” features
What specifically have you done to eliminate or limit the amount of spam that you receive?
69.8%
43.1%36.1%
17.7% 15.9% 13.7%8.6%
4.9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
unsubscribedto whatevercompany issending me
spam
created 'junkemail' or 'bulkmail' folders
used a 'reportspam' functionon my email
program
created anemail address
to use whengiving out mypersonal info
downloaded aspam filtering
software online
created asecondaryemail for
making onlinepurchases
not doneanything toeliminate or
limit theamount of
*Other
Percent of Respondents
DoubleClick 2003 Consumer Email Study
© 2004 DoubleClick Inc. All Rights Reserved.
Result: Highly favorable impact for clearly branded message.
Client: Major multi-channel retailer
Analysis: Comparison of the impact of using the company’s brand name in the “from” address before the @ sign as well as in the beginning of the subject line versus no brand name before the @ sign and brand name at end of subject line.
AOL Open Rate: +121%
AOL Click Rate: +69%
AOL Complaint Rate: -79%
DoubleClick Case Study: Impact of company brand name in “from” and “subject” lines for AOL email
© 2004 DoubleClick Inc. All Rights Reserved.
CAN-SPAM: Do’s for commercial emails
• Include a working unsubscribe mechanism in your messages
• Honor unsubscribe requests within 10 business days
• Identify commercial email messages as promotions or advertisements
• Don’t need ADV: in the subject line• If recipient gave prior affirmative consent to the receive the
message, you don’t have to identify the commercial email as a promotion
• Include in commercial email messages a valid “physical postal address” for the “sender” (entity whose product is advertised in the email)
© 2004 DoubleClick Inc. All Rights Reserved.
Transactional or Relationship Email
Commercial Email WITH Affirmative
Consent
Commercial Email WITHOUT
Affirmative Consent
Clear and Conspicuous
Identification that Message Is an Advertisement
No No Yes
Valid Postal Address No Yes Yes
Unsubscribe Mechanism No Yes Yes
CAN-SPAM requirements for commercial email
© 2004 DoubleClick Inc. All Rights Reserved.
We Make Marketing Work Better
plan
execute
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Adam [email protected]
Thank You!
Further questions?