About SmartPak• Founded by riders and horse owners for riders and horse owners• Finding a better way to administer supplements led to a quest for discovering innovative, smarter products• Convenience, peace of mind, time savings Benefits:• How SmartPaks work: • Fed right every time • Custom orders • Delivered free, monthly
Email Channel Promotional Transactional Lifecycle Newsletters Order Confirmation SmartPaks Welcome Order Shipment Offers Confirmation Order Reminder Order Delivered Confirmation Abandoned Cart Delivery Confirmation SmartPaks Up-sell Password Recovery Post Purchase 24 triggered and Review Credit Card Failure transactional Notification Consumable Replenishmentprograms in place, SmartPaks Cancel ~50 unique Confirmation Browse Behavior automated Returns Notification ColiCare mailings/day + 8 More
SmartPak Email Program Email Volume Transact. & Triggered Promotional 12% 88%• ~2MM+ emails sent, per month• Email generates 30% of all online marketing Email Revenue revenue Transact. & Promotional Triggered• Healthy transactional 70% 30% and triggered email program drives high return4 years ago = 2% volume / 1% revenue
SmartPak Email Team Business Owners with many requests for email campaignsEmail Marketing Manager Email Designer
Where we came from Separate systems Email startingNew ESP to get respect Hired Consultant
Abandon Cart Enhancement Enhancement+ Add “reminder” to existing stream to increase conversion » Test timing (5 days with no conversion) » Test subject line and headline » Streamline copy
DEMCO ResultsConversion rate is just as high on the first email as it is on the last email– without an offer Cart Email A Cart Email B Cart Email C Day 1 Day 3 Day 5 AVERAGEOpen Rate 40% 39% 32% 37%Click-to-Open 44% 47% 28% 41%Click-thru-Rate 18% 18% 9% 15%Conversion Rate 22% 15% 24% 20%Sales/email $8.60 $8.40 $5.04 $7.46
Abandon Wishlist + Encourage subscribers to update their SmartPak wish list and/or share with friends + Potential to pair with birth date targeting (and timely email encouraging subscriber to share list with friends and family) + Send reminders around holidays + 36% Open rate + 2% CTR + $0.73 Rev/Email + Offer a forward to a friend feature, but have so far seen little usage
Post-Purchase Review“Customer input gives shoppers theconfidence to buy, increasing sales, conversion, average order value, and more.” Source: Bazaarvoice • Launched home-grown product review tool in early 2006 – Gathered 5,000 customer reviews • Use Bazaarvoice (launched January 2009) to handle customer reviews • Sent generic broadcast email to customers to review products they have purchased • Launched a daily triggered email to review first time ordered products post-purchase – Currently have over 80,000 product reviews
Autoship Reminder Email • Reminds customer of upcoming SmartPaks order • Allows customer time to make changes before order is processed • Top revenue generating triggered email The results: • 36% open rate • 13% click-through rate • $1.39 revenue-per-email • 18%+ conversion rate Real time products based on purchase behavior
Follow Up Reminder Email • 22.9% Open Rate • 6.7% CTR • $0.98 RPE • 22.8% Conv. Rate - Sent 3 days before autoship order ships - Since launching the 2nd reminder email, we are seeing ADDITIONAL revenue (almost double) being generated from this campaign.
SmartPaks Upsell Emails• Launched early September• Slow to start• 15% Open Rate• 1% CTR• 3 SmartPaks started (1% conversion)• Potentially re-assess timing and/or welcome onboarding as the majority are brand new customers
Inactive Email recipient does not open, click or purchase inRe-Engagement 45 days• Goal: Reactivate customers before Inactive Re-Engagement Email: Update Profile - 1.1 they become inactive• Results: • Open Rate – 5.6% Opens or clicks any • CTR – 0.5% email or makes a purchase in 75• Timing previously was 75 Day, 90 days Day, 180 Day. • Observed low engagement • 3% Open Rate Inactive Re-Engagement Email: Exits Inactive Re- Enagagement Pays to be Smart – 1.2 • 0.35% CTR Program • Decided to make the switch to catch people earlier in the Opens or clicks any inactive process email or makes a purchase in 90 days Inactive Re-Engagement Email: 10% off Order – 1.3
Inactive Re-EngagementDay 45: “Help Us Day 75: “It Pays toServe You Better” be Smart” Day 90: “We Miss You! Come Back and Save 10%”
How we did it? – Phased Approach • Identified critical segments and articulated the goals for each (e.g.1 convert supplement bucket buyers to SmartPaks buyers) • Mapped out existing email framework to understand the flow from2 one lifecycle stage to the next (and identify gaps!) • Prioritized opportunities and executed (while keeping an eye on3 simplicity and automation to make the most of our limited resources) • Completed relational tables integration4 • Our motto: Pilot > Optimize > Automate!5
Where to Focus????What marketing What marketing What What marketing What marketing programs will programs marketing programs programs will help will help programs will will help help you capture you convert help you grow you ensure you win new email prospects to customer customer back lost addresses? customers? value? loyalty? customers?
Too much email with triggered messages? Average No. Emails Received Per Month by Customer Segment 14 12.1 12 10 8.5 8 6 4 3.1 2.8 2 0 Email Subscriber Email Subscriber Non-Email Subscriber Non-Email Subscriber With SmartPaks No SmartPaks With SmartPaks No SmartPaks* Includes promotional emails and reminders (when applicable), order shipped emails with tracking number, rate and review emails,and abandoned cart emails. Does not include transactional emails such as delivery confirmation, order confirmation, passwordrecovery, etc.
Test First - Purchase Cross-SellGoal: Increase supplies sales of Subject Line: “You Might Like the Backsupplement buyers by marketing on Track Saddle Pad”a relevant product to themResults:- 26.59% Open Rate- 6.73% CTR- $0.23 Rev/Email- 2.6% Conversion Rate - Of the orders, half sold the saddle pad - Test group performed 2.4x better than control
Test First - Purchase Cross-SellGoal: Increase sales by Subject Line: “Stop Sore Feet in theirmarketing a relevant product to Tracks”customers - Targeted customers with aparticular need - Reused previous creativeResults:- 19.41% Open Rate- 4.31% CTR- $0.58 Rev/Email- 12.5% Conversion Rate- Test group performed 2x better than control group - (small test groups, difficult to draw solid conclusions off of)
Upcoming Goals Anniversary Customer-centric conversion Creative/brand refresh on all current triggered emails Real-time product recommendations Integrated marketing database Post-purchase upsells and cross-sells
TakeawaysHave an action planMap out your existing framework and where you want to goDon’t get overwhelmedPrioritize based on business goalsTestSpeak to your customers in a timely mannerAnalyze your business and what value you want to give to yourcustomers via emailDemonstrate results of email along the way. Share success