Automated Email Marketing Triggers Silverpop

Delivering IncreasedRelevance and Revenue with Automated Emails @CareyMKegel @LorenMcDonald

“Trigger” horse senseCarey Marston Kegel, SmartPak @CareyMKegel Loren McDonald, Silverpop @LorenMcDonald

Happy Birthday Carey!

Why Automation?

1. Relevance …Hope is not a marketing strategy.

2. Revenue - Low Volume, High ROI! Volume of Emails sent Sales Generated 4.1% Triggered Campaigns 40.2% Triggered Campaigns 59.8 % 95.9 % Batch Batch Campaigns Campaigns

3. Relaxation …and no need to push the “send” button!

Agenda SmartPak Email Program Overview SampleQ&A Automated Emails Process / Takeaways

SmartPak Background

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 Purchase24 triggered and Review Credit Card Failure transactional Notification Consumable Replenishment programs in SmartPaks Cancelplace, ~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

Sample Lifecycle Emails

Browse Reengagement CartReplenishment Sample Automated Order Status Emails Upsell Onboarding Shipment Review Request Reminders

Pre- to Post-Purchase Emails Pre-Transaction Purchase Process Post-Purchase Relationship• Browse • Order • Satisfaction • Bounceback abandonment Confirmation Survey • Account reminder• Cart • Order status • Review request • Loyalty programs abandonment • Shipping notice • Review • Account status • Shipment notification • Purchase confirmation • Recommendation anniversary • Trip preparation • Replenishment • Repurchase • Upgrades

Browse Behavior

Browse Behavior • 37.6% Open Rate • 7.35% CTR • $0.44 Rev/Email

Browse Behavior

Cart / Wishlist Abandonment

Updated Abandon CartThe results:• 38.5% open rate• 10.15% CTR Dynamic product recommendations• 50% conversion rate• $4.80 revenue/email

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

Supplement Wizard

Supplement Wizard – Abandoned, Finished Process • Sent when a customer receives their results but does not add items to cart or checkout • 40.17% Open Rate • 4.18% CTR • $0.38 Rev/Email

Supplement Wizard – Abandoned, Did not get results • Sent when a customer starts the Wizard, but does not get to the results page • 44% Open Rate • 7.61% CTR • $0.25 Rev/Email

Order Status

Order Status: Another $ OppOrder Confirmation24.16% Open Rate Shipment Confirmation Delivery Confirmation$0.13 Rev/Email 36% Open Rate 34.44% Open Rate $0.16 Rev/Email $0.05 Rev/Email Next Steps: • Insert dynamic product recommendations to increase rev/email • Potentially insert offer for repeat purchase

Product Review Request

Post-Purchase Review“Customer input gives shoppers the confidence 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

Onboarding Emails

SmartPaks System Welcome Email – New Creative 41% Open Rate 5.46% CTR Answers questions customers may have when their package arrives

SmartPaks System Welcome Email #2 • Sent 7 days after the 2nd shipment • 34.5% Open Rate • 8.9% CTR • Goal – increase retention of new customers

Order/Shipment Reminders

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.

Upsell Emails

SmartPaks Upsell Emails Customer orders supplements in buckets for their horseGOAL: Convert customer to order supplements in AutoShip SmartPaks

SmartPaks Upsell Emails • Focus on the most important product purchase

SmartPaks Upsell Emails

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

Replenishment

ReplenishmentGoal: Increase sales of repeatpurchasesTiming: Based on a calculation ofwhen product will run outResults:- 29.4% Open Rate- 3.56% CTR- $0.41 Rev/Email- 9.56% Conversion Rate

Inactive Re-Engagement

Inactive Email recipient does not open, click or purchase in 45Re-Engagement 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%”

Process / Takeaways

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?

Identify current and wishlist campaigns

Reasons to Targeted Email SmartPak SmartPak Promotional Lifecycle & Email Transactional Email Open Rate 17% 28%  64% higher Click-Through Rate 2% 5%  150% higher Conversion Rate 6% 11%  83% higher Revenue-Per-Email $0.16 $0.44  175% higher Unsubscribe Rate 0.043% 0.05%  16% higherSpam Complaint Rate 0.047% 0.043% 10% lower

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…* Includes promotional emails and reminders (when applicable), order shipped emails with tracking number, rate and reviewemails, and abandoned cart emails. Does not include transactional emails such as delivery confirmation, orderconfirmation, password recovery, 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

Q&A / Contact Info• Carey Marston Kegel – SmartPak – Email Marketing Manager – Twitter: @CareyMKegel – Cmarston@smartpak.com• Loren McDonald – Silverpop – VP, Industry Relations – Twitter: @LorenMcDonald – Google+: +LorenMcDonald – Pinterest: intevation – lmcdonald@silverpop.com

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Automated Email Marketing Triggers Silverpop

by Silverpop on Oct 16, 2012

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