Boosting Email Marketing Revenue with Recommendations
 

Boosting Email Marketing Revenue with Recommendations

on

  • 1,884 views

Silverpop and partner Baynote take a look at using recommendations in email marketing to drive cross- and up-sell. Joined by the CTO of Musicroom.com, the team take a look at a dozen or more ...

Silverpop and partner Baynote take a look at using recommendations in email marketing to drive cross- and up-sell. Joined by the CTO of Musicroom.com, the team take a look at a dozen or more real-world examples of how personalised recommendations are driving conversion in triggered email marketing programmes.

Statistics

Views

Total Views
1,884
Views on SlideShare
1,854
Embed Views
30

Actions

Likes
2
Downloads
42
Comments
0

1 Embed 30

http://paper.li 30

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Boosting Email Marketing Revenue with Recommendations Boosting Email Marketing Revenue with Recommendations Presentation Transcript

  • Boosting Email Marketing Revenue with Personalised Recommendations
  • Our Presenters
    Chloe RigbyWeb Editor – Internet Retailing
    Rolf DoerrDirector, Business Development – Baynote
    Alistair McLeishCTO, Musicroom.com
    Richard EvansDirector, Marketing – Silverpop
  • Today’s Agenda
    Personalising the Web
    The Concept of Collective Intelligence
    Creating the Customer Experience
    The Power of Triggered Email Marketing
    Personalising Email Marketing
    Live Q&A
  • MEETING REVENUE TARGETS IS STILL CHALLENGING
    FAILING TO MEET REVENUE EXPECTATIONS
    Expected Revenue
    The Need:
    Revenue Multiplier Effect
    Incremental Gains: Not Good Enough
    Widening Gap
    • Acquisition Costs Through Roof
    • Conversion Rates Are Stuck
    • Average Order Size is Flat
    5
  • CONVERGENCE OF RECENT MARKET DYNAMICS
    Rising Commerce
    Complexity
    Higher eCommerce Revenue Targets
    The Battle for Consumer Attention
    eCommerce growing at 12.6%/yr. Senior execs and board perceive online channel as a “miracle cure”
    e-Commerce dominated by large players, brands selling direct, increasing global competition
    More sku’s, prices, bundles, terabytes of data to analyze, multi-channel touch points,internationalization
    Consumers are Ahead of Merchants
    Social, mobile, local, flash sales, group buying, video, what’s next???
    The Result: Increasingly Difficult to Make Your Revenue
    3
  • BREAKING THROUGH THE 3% CONVERSION BARRIER
    Traditional online personalization strategies are based on past shopping history and profile data.
    20% of online shoppers have an intent to buy, but only ~3% actually purchase.
    Personal in-store experience starts with understanding and acting on intent – “how can I help you today?”
    In comparison, 30% of shoppers who enter a physical store complete a purchase.*
    7
  • TODAY’S REQUIREMENT: NEW APPROACH TO PERSONALISATION
    WHO
    are you?
    UNDERSTAND
    What is your intent,
    this time?
    ACT
    Deliver relevant
    product & content
    at every moment
    RESPOND
    Continually adapt
    to ever-changing
    interests
    Traditional Profiles
    And Targeting Rules
    Buyer Intent
    Streaming
    Modeling
    Revenue Multiplier Effect … Across All Channels
    6
  • POLL: Do you currently use recommendations on your website, in email or both?
  • UseRank
    ENGAGEMENT
    Adaptive Web: Automated, real-time, and personalised
    …page refers, links, entry trails,
    queries, page sizes, mouse movement,
    negative experience, virtual bookmarks,
    time spent, exit trails…
  • Baynote Secret Sauce: UseRank®
  • Musicroom.com
  • Music Sales Ltd.
    • Musicroom.com
    • Europe’s largest online store for printed music and related materials for musicians, including tutor methods, instruments and accessories.
    • Started in 1996.
    • 18 high street stores in the UK and Ireland.
    • Part of the Music Sales Group, an international family of music companies with interests in music copyright, printed music, book publishing, music retail & digital publishing.
  • Recommendation Challenges
    • Catalogue size
    • With 150,000+ products, some very niche, how to manage recommendations effectively.
    • Playing an instrument is personal
    • Listening to music is passive, playing it is active.
    • So targeting must include not only genre & instrument, but also skill level.
    • The Problem with Customers Also Bought...
    • Ignores new and long tail items with insufficient purchase history.
    • Ignores 95%-98% of user activity.
    • Doesn’t provide an alternative / up-sell technique.
    • Optimising Search
    • How to order search results?
  • Musicroom.com Recommendations
    • Product Page
    • As an alternatives/up-sell or cross-sell technique.
    • Search Results & Category Pages
    • Placing results that users currently find relevant at the top search.
    • Basket Page
    • Cross-sell complimentary items, missed deals etc.
    • Artist A-Z
    • Artist Tag cloud
    • Email Recommendations
    • Follow-up emails include related items.
    • Future: Using 10 different metrics to customise experience.
  • Musicroom.com Recommendations
    Product Page
    As an alternatives/up-sell or cross-sell technique.
  • Musicroom.com Recommendations
    Search Results & Category Pages
    Placing results that users currently find relevant at the top search.
  • Musicroom.com Recommendations
    Basket Page
    Cross-sell complimentary items, missed deals etc.
  • Musicroom.com Recommendations
    Artist A-Z
    Popular Artist Tag cloud
  • Musicroom.com Recommendations
    Email Recommendations
    Follow-up emails include related items.
  • Recommendations - 2 examples
    • Crowd-sourced recommendations
    • Basic recommendations algorithms can suggest related products based on meta-data. i.e. With a flute, recommend flute strings, flute books, flute cleaning products.
    • Crowd-sourced recommendations can make associations that are not present in product data.
    • E.g. Recommend a music stand with a flute.
    • Real-time recommendations
    • Trends in how music is consumed often moves fast
    • Real-time recommendations can give products exposure without marketing intervention.
    • E.g. Ubi Caritas at the 2011 Royal Wedding
  • Recommendations Results
    • Conversion Rate increase
    • Users clicking on recommendations convert at a rate of ten times the site average.
    • Average Order Value increase
    • Significant AOV increase for those using recommendations.
    • Margin increase
    • Ability to add business rules allows recommendations to target high margin areas of the catalogue.
    • Business Knowledge
    • Which content do users find interesting and engaging.
    • Which internal search terms are not producing the required results?
  • Recommendations in Email Marketing
  • Relevant Emails Rock!
    Note: Metrics and salary costs based on JupiterResearch executive survey. Broadcast assumes $3 CPM, and all others assume $4.5 CPM. All assume $89 AOV, 50 percent product margin, and 2.8 million pieces of mail per month.
  • Triggered Email Program Benefits
    • Highly relevant to individual
    • Beyond the buzzword... This IS Relationship Marketing
    • “Set it and forget it”
    • Incremental revenue
  • POLL: What types of triggered email marketing are you using?
  • Low Volume
    4.1%
    Triggered
    Campaigns
    Volume of Emails sent
    95.9 %
    Batch
    Campaigns
  • Low Volume, High ROI
    4.1%
    Triggered
    Campaigns
    Sales Generated
    Volume of Emails sent
    95.9 %
    Batch
    Campaigns
    40.2%
    Triggered
    Campaigns
    59.8 %
    Batch
    Campaigns
  • Survey: Deploy Post Purchase Email?
  • Reminders…almost out of stock
    Open, CT and Conversion Rates that are MORE THAN DOUBLE broadcast email rates
    Average Order Value is 53% HIGHER
  • Marketers: Pick a Door
    Door #1
    Door #2
    Average Open Rate of 47%
    Avg Click-through rate of 20%
    • Recipients receive only 87 of these messages per year
    • Customers find this door twice as interesting as door #2
    • Average Open Rate of 31%
    • Avg Click-through rate of 6%
    • Recipients receive 3,694 of these messages received per year
    Source: Jupiter Research “US email Marketing Forecast, 2007 to 2012”
    Source: Quris, Harris Interactive, Executive Summary Consulting, November 2004
    Source: Forrester Research, September 2003
  • Marketers: Pick a Door
    Door #1
    Door #2
    Transactional
    Commercial
    • Average Open Rate of 47%
    • Avg Click-through rate of 20%
    • Recipients receive only 87 of these messages per year
    • Customers find this door twice as interesting as door #2
    • Average Open Rate of 31%
    • Avg Click-through rate of 6%
    • Recipients receive 3,694 of these messages received per year
  • Customer Examples and Results
  • Social
    • Facebook Fan Page
    • Facebook News Feed
    Chat
    • Reactive Chat
    • Proactive Chat
    • Exit Chat
    Website
    • Home page
    • Landing page
    • Category page
    • Product page
    • Search page
    • Etc…
    Email
    • Order confirmation
    • Shipping confirmation
    • Re-targeting
    • Product review
    Mobile
    • Mobile Site
    • Mobile Apps.
    In-Store
    • Kiosk
    Personalization Zones
    In-Session Behaviors
    • Keywords
    • Scroll
    • Etc…
    • Navigation
    • Dwell time
    Profile & Content Input
    • Demographics
    • Preferences
    • Past history
    • Catalog
    Intent Model
  • Why Add Recommendations?
    According to a Forrester survey:
    74% unsubscribe from email lists because of irrelevant content
  • Order Confirmation
    Best Practice:
    Recommend accessory items
    or complementary items for each product in cart
  • Shipping Confirmation
    Best practice:
    Recommend accessory items
    Or popular items in same category
  • Cart Abandonment
    Best practice:
    - Send within 24 hours for optimal results
    - Recommend similar items
    - Use business rules to determine if up-sell can be done
  • POLL: How long do you wait to follow up on abandon carts, etc?
  • Follow Up Timing
  • Baynote Improves Email Relevance to Increase Conversion Rates
    Cart/Browse Abandonment
    Order Confirmation
    Special Offers
    • Personalize your transactional emails with relevant recommendations to increase conversion (Transactional emails have open rates upwards of 60-80%)
    • Retarget and convert lost customers with targeted emails based on cart/browse abandonment
    • Effectively market to and convert customers with special offers
  • Tablespoon.com
    Use Cases
    • Using Baynote in Marketing Campaigns
    • Delivering Related Recipe Recommendations
    • Increasing Engagement with Tablespoon.com
  • Netshoes
    Use Cases
    • Using Baynote in Cart Abandonment and Out-of-Stock Alerts
    • Delivering Related Product Recommendations
    • Increasing Revenue through Cross-Sell and Up-Sell
  • Fingerhut
    Use Cases
    • Using Baynote in Order and Shipping Confirmations
    • Delivering Related Product Recommendations
    • Increasing AOV through Cross-Sell
  • Potential 5% Uplift
    5%+ Revenue Lift Potential by Adding Email Recommendations
  • Wrapping Up
    Personalised product recommendations create a more relevant experience on site and in email – leading to more engagement.
    Including recommendations in triggered email marketing can lift revenues from 5-12% by providing more options and a more personal experience.
    Implementation shouldn’t be daunting. Much of your investment has already been made in your email marketing solution.
  • Q&A
  • About Silverpop
    • 1,400+ customers
    • Across 38 countries
    • 95% customer retention
    • >2B msgs sent per month across our customer base
  • About Baynote
    • 300+ customers
    • Across 23 countries
    • Delivering 3bn+ online recommendations each month
  • Resources
    Resource Centreat silverpop.com
    White papers
    Webinars
    Blogs
    Case studies
    Newsletters
    Presentations on SlideShare
    www.slideshare.net/Silverpop
  • Thank you!