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Metrics from 400 Retailers: What Drives the Most Revenue?
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Metrics from 400 Retailers: What Drives the Most Revenue?

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Retailers know that email is generally an effective mechanism for driving sales. However, 20% of potential sales are being lost because retailers do not know how to leverage email to drive the highest …

Retailers know that email is generally an effective mechanism for driving sales. However, 20% of potential sales are being lost because retailers do not know how to leverage email to drive the highest revenue and lifetime value from their customers. We will share data, email tactics and strategies supported by our client base of over 450 retailers that illustrate which best practices are really performing in 2013:

What specific categories of email are delivering the highest sales and revenue for retailers in 2013

How, where, and when to use email strategically across the shopper lifecycle

What consumers are telling retailers about their desires for desktop and mobile email communications

Quantitative results you should strive for based on the achievements of your peers

Published in: Business, Technology

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  • 1. Metrics from 400Retailers: What Drives theMost Revenue?Best practices to maximize revenueand customer lifetime value throughemail marketing
  • 2. KEY TAKEWAYSEmail continues to be a top driverof revenue for retailersAdding customer-centric marketingto your email strategy can drivesubstantially higher conversions andrevenueAlways ask yourself….“what wouldJulie do?”
  • 3. A TALE OF ONE CITY (AND TWO GREAT COMPANIES)What’s common?Maniacal focus on the customer
  • 4. THE JEFF BEZOS IMPERATIVE – THE “EMPTY CHAIR”Ensure the customer is always represented
  • 5. WHY THE IMPERATIVE TO BE CUSTOMER-CENTRIC?►  Accounts for 25-35% of allecommerce►  Grew revenues by $13.9B last year►  Spent $2B on technology last year$13.9BAmazon2012Growth$14B497 of IRTop 5002012Growth
  • 6. THE NORDSTROM IMPERATIVE – “BLACK BOOK” CLIENTELINGTreat each customer as an individual
  • 7. “WHAT WOULD JULIE DO?”+Hi, I’mJulie
  • 8. CURRENT STATE OF CUSTOMER-CENTRIC MARKETINGHOW DO CONSUMERSFEEL ABOUT IT?WHAT CANRETAILERS DO?WHAT APPROACHESWORK BEST?
  • 9. 2013 - 5TH ANNUALCONSUMER STUDYHOW DO CONSUMERS FEEL ABOUT 1:1 INTERACTIONS?Source: the e-tailing group
  • 10. TOP REASONS CONSUMERS SAY THEY ABANDONSource: the e-tailing groupYou must stay engageduntil the consumer is readyto purchase123Warning:Amazon will stay engaged – if youdon’t, you are giving up
  • 11. AND CONSUMERS WANT YOU TO STAY ENGAGED3 out of 4 consumers want personal email alerts as part of anintegrated cross-channel shopping experienceSource: the e-tailing group
  • 12. CONSUMERS INCREASINGLY VALUE 1:1 CONVERSATIONS53% 66%51% 64%37% 44%41%34%35% 39%25%25%19%21%11%RETAILERS WHERE I SHOPPERSONALIZE MY EXPERIENCERECEIVE PERSONALIZED EMAILSFROM RETAILERSVALUE RETAILERS WHOPERSONALIZE ACROSS CHANNELSPURCHASE MORE BECAUSE OFPERSONALIZED EMAILSPURCHASE MORE BECAUSEPRODUCTS RECOMMENDED20132012Source: the e-tailing group
  • 13. Current State Of Customer-Centric MarketingHOW DO CONSUMERSFEEL ABOUT IT?WHAT CANRETAILERS DO?WHAT APPROACHESWORK BEST?
  • 14. Best Practice:Three emails – within 24 hours, day 2and day 7SITE ABANDONMENTCART ABANDONMENT•  You leave an item inyour cart•  What would Julie do?•  She’d reach out toyou and remind you•  She’d offer theproduct abandoned,but also an up-sell,and maybe even adown-sell•  She’d repeat thisprocess a couple oftimes, maybe evenwith a special offeron the last attempt
  • 15. •  You leave the siteempty-handed•  What would Julie do?SITE ABANDONMENT•  Does she recognizeyou?•  She’d look at howengaged you were•  She’d recognizecategories andproducts of interest,and depth of interest•  She’d send you apersonalized email witha mix of productsBenefit:Site abandonment alerts deliver16 times greater reach than cartabandonment alone
  • 16. PURCHASE AND SHIPPING CONFIRMATION•  You just checked out andare receiving your orderconfirmation•  What would Julie do?Bottom Line:These types of emails have thehighest open rates of anything yousend – don’t waste them!•  She’d look at what youbought•  She’d assess your interestsand past shopping behavior•  She’d offer complementaryproducts for cross-sell thatmatch your interests +purchase
  • 17. NEW PRODUCTS OF INTERESTNEW PRODUCTS OF INTEREST•  A new product arrives in thecatalog•  What would Julie do?Benefit:2-3X Average Email Conversion Rate•  She’d look in her little blackbook and find all clients with aninterest in this type of product•  She’d call each one individuallyand invite them to come back•  She’d be waiting with thatproduct and others that eachcustomer most wants to buy
  • 18. ADVERTISINGAUGMENT EMAIL WITH DISPLAY ADVERTISING•  You are no longeropening their emails?•  What would Julie do?•  She’d try to engageyou in other ways,perhaps a display ad?•  She’d show youproducts of interest,products recentlyabandoned, etc.•  She might throw anoffer out to entice youback•  She’d spend only whatis necessary…
  • 19. Current State of Customer-Centric MarketingHOW DO CONSUMERSFEEL ABOUT IT?WHAT CANRETAILERS DO?WHAT APPROACHESWORK BEST?
  • 20. CUSTOMER-CENTRIC EMAIL OUTPERFORMS INDUSTRY AVERAGES19%Higher2XBetter3XLowerCustomer Centric Industry Average Customer Centric Industry Average Customer Centric Industry Average
  • 21. EFFECTIVENESS INCREASES OVER TIMEWine Enthusiast0.00%2.00%4.00%6.00%8.00%10.00%12.00% Jan-08Mar-08May-08Jul-08Sep-08Nov-08Jan-09Mar-09May-09Jul-09Sep-09Nov-09Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Sep-12Nov-12Jan-13Customer Centric Email Revenue Performance Index
  • 22. Time Period: January 2010 to December 2012.$159$375$760$-$100$200$300$400$500$600$700$8001 2 3AverageConsumerSpendNumber of Engaged ChannelsAvg Consumer Spend 5X improvementMORE CHANNELS, THE HIGHER LIFETIME VALUE
  • 23. PRIORITIES, PRIORITIES…ATTRACTCONVERTNURTURETop seller emailsAbandoned site & cart emailOrder confirmationShipping confirmationPost-order follow-upNew products of interestPricing / offer changesSeasonal newslettersSales / promotions12345
  • 24. Email Best Practice in ActionSports UnlimitedMike Neff, Director of eCommerce
  • 25. Sports Unlimited - BackgroundHistory•  Started 1983 with one brick-&-mortar store•  1998 went online•  2008 shut down brick-&-mortarChallenges:•  Site traffic is declining; acquisition costs are highMain Areas of Focus 2013:•  SEO (lost traffic)•  Site conversion rate (conversion testing)•  Refocusing on customer loyaltyOngoing Strategies:•  Bronto segmented emails•  MyBuys web recommendations and email alerts
  • 26. POST CART ABANDONMENTPRODUCT ALERTS•  Sent 2x weekly•  Automatically segment to individualsubscriber
  • 27. PERFORMANCE METRICSSales Growth:Cost Per Acquisition:pay for sales you receiveCustomer Loyalty:100%Increase(2+ purchases)50%33%0%10%20%30%40%50%60%Revenues2011 2012
  • 28. ORDER CONFIRMATION EMAIL
  • 29. SITE ABANDONMENT ALERTS•  Sent after consumer leavesthe site•  Targets consumers whilethey’re still in shoppingmode with products andoffers they were browsing•  Identifies infrequentshoppers in the house list,bring them back to buy.
  • 30. Q & ASports UnlimitedMike Neff, Director of eCommerceMyBuysChip Overstreet, SVP Business & CorporateDevelopment20% off any order couponCODE = BRONTO20