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Boosting Email Marketing Revenue with Personalised Recommendations<br />
Our Presenters<br />Chloe RigbyWeb Editor – Internet Retailing<br />Rolf DoerrDirector, Business Development – Baynote<br ...
Today’s Agenda<br />Personalising the Web<br />The Concept of Collective Intelligence<br />Creating the Customer Experienc...
MEETING REVENUE TARGETS IS STILL CHALLENGING<br />FAILING TO MEET REVENUE EXPECTATIONS<br />Expected Revenue <br />  The N...
Conversion Rates Are Stuck
Average Order Size is Flat</li></ul>5<br />
CONVERGENCE OF RECENT MARKET DYNAMICS<br />Rising Commerce<br />Complexity<br />Higher eCommerce Revenue Targets<br />The ...
BREAKING THROUGH THE 3% CONVERSION BARRIER<br />Traditional online personalization strategies are based on past shopping h...
TODAY’S REQUIREMENT: NEW APPROACH TO PERSONALISATION<br />WHO<br />are you?<br />UNDERSTAND<br />What is your intent,<br /...
POLL: Do you currently use recommendations on your website, in email or both?<br />
UseRank<br />ENGAGEMENT<br />Adaptive Web: Automated, real-time, and personalised<br />…page refers, links, entry trails,<...
Baynote Secret Sauce: UseRank®<br />
Musicroom.com<br />
Music Sales Ltd.<br /><ul><li>Musicroom.com
Europe’s largest online store for printed music and related materials for musicians, including tutor methods, instruments ...
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...
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?   </li></li></ul><li>Musicroom.com Recommendations<br /><ul><li>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.</li></li></ul><li>Musicroom.com Recommendations<br />Product P...
Musicroom.com Recommendations<br />Search Results & Category Pages<br />Placing results that users currently find relevant...
Musicroom.com Recommendations<br />Basket Page<br />Cross-sell complimentary items, missed deals etc.<br />
Musicroom.com Recommendations<br />Artist A-Z<br />Popular Artist Tag cloud<br />
Musicroom.com Recommendations<br />Email Recommendations<br />Follow-up emails include related items.<br />
Recommendations - 2 examples<br /><ul><li>Crowd-sourced recommendations
Basic recommendations algorithms can suggest related products based on meta-data. i.e. With a flute, recommend flute strin...
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 </li></li></ul><li>Recommendations Results<br /><ul><li>Conversion Rate increase
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Boosting Email Marketing Revenue with Recommendations

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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.

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Transcript of "Boosting Email Marketing Revenue with Recommendations"

  1. 1. Boosting Email Marketing Revenue with Personalised Recommendations<br />
  2. 2. Our Presenters<br />Chloe RigbyWeb Editor – Internet Retailing<br />Rolf DoerrDirector, Business Development – Baynote<br />Alistair McLeishCTO, Musicroom.com<br />Richard EvansDirector, Marketing – Silverpop<br />
  3. 3. Today’s Agenda<br />Personalising the Web<br />The Concept of Collective Intelligence<br />Creating the Customer Experience <br />The Power of Triggered Email Marketing<br />Personalising Email Marketing<br />Live Q&A<br />
  4. 4. MEETING REVENUE TARGETS IS STILL CHALLENGING<br />FAILING TO MEET REVENUE EXPECTATIONS<br />Expected Revenue <br /> The Need: <br />Revenue Multiplier Effect<br />Incremental Gains: Not Good Enough<br />Widening Gap<br /><ul><li>Acquisition Costs Through Roof
  5. 5. Conversion Rates Are Stuck
  6. 6. Average Order Size is Flat</li></ul>5<br />
  7. 7. CONVERGENCE OF RECENT MARKET DYNAMICS<br />Rising Commerce<br />Complexity<br />Higher eCommerce Revenue Targets<br />The Battle for Consumer Attention<br />eCommerce growing at 12.6%/yr. Senior execs and board perceive online channel as a “miracle cure”<br />e-Commerce dominated by large players, brands selling direct, increasing global competition<br />More sku’s, prices, bundles, terabytes of data to analyze, multi-channel touch points,internationalization<br />Consumers are Ahead of Merchants<br />Social, mobile, local, flash sales, group buying, video, what’s next???<br />The Result: Increasingly Difficult to Make Your Revenue<br />3<br />
  8. 8. BREAKING THROUGH THE 3% CONVERSION BARRIER<br />Traditional online personalization strategies are based on past shopping history and profile data. <br />20% of online shoppers have an intent to buy, but only ~3% actually purchase.<br />Personal in-store experience starts with understanding and acting on intent – “how can I help you today?”<br />In comparison, 30% of shoppers who enter a physical store complete a purchase.*<br />7<br />
  9. 9. TODAY’S REQUIREMENT: NEW APPROACH TO PERSONALISATION<br />WHO<br />are you?<br />UNDERSTAND<br />What is your intent,<br />this time?<br />ACT<br />Deliver relevant <br />product & content<br />at every moment<br />RESPOND<br />Continually adapt <br />to ever-changing <br />interests<br />Traditional Profiles<br />And Targeting Rules<br />Buyer Intent<br />Streaming<br />Modeling<br />Revenue Multiplier Effect … Across All Channels<br />6<br />
  10. 10. POLL: Do you currently use recommendations on your website, in email or both?<br />
  11. 11. UseRank<br />ENGAGEMENT<br />Adaptive Web: Automated, real-time, and personalised<br />…page refers, links, entry trails,<br />queries, page sizes, mouse movement,<br />negative experience, virtual bookmarks,<br />time spent, exit trails…<br />
  12. 12. Baynote Secret Sauce: UseRank®<br />
  13. 13. Musicroom.com<br />
  14. 14. Music Sales Ltd.<br /><ul><li>Musicroom.com
  15. 15. Europe’s largest online store for printed music and related materials for musicians, including tutor methods, instruments and accessories.
  16. 16. Started in 1996.
  17. 17. 18 high street stores in the UK and Ireland.
  18. 18. 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. </li></li></ul><li>Recommendation Challenges<br /><ul><li>Catalogue size
  19. 19. With 150,000+ products, some very niche, how to manage recommendations effectively.
  20. 20. Playing an instrument is personal
  21. 21. Listening to music is passive, playing it is active.
  22. 22. So targeting must include not only genre & instrument, but also skill level.
  23. 23. The Problem with Customers Also Bought...
  24. 24. Ignores new and long tail items with insufficient purchase history.
  25. 25. Ignores 95%-98% of user activity.
  26. 26. Doesn’t provide an alternative / up-sell technique.
  27. 27. Optimising Search
  28. 28. How to order search results? </li></li></ul><li>Musicroom.com Recommendations<br /><ul><li>Product Page
  29. 29. As an alternatives/up-sell or cross-sell technique.
  30. 30. Search Results & Category Pages
  31. 31. Placing results that users currently find relevant at the top search.
  32. 32. Basket Page
  33. 33. Cross-sell complimentary items, missed deals etc.
  34. 34. Artist A-Z
  35. 35. Artist Tag cloud
  36. 36. Email Recommendations
  37. 37. Follow-up emails include related items.
  38. 38. Future: Using 10 different metrics to customise experience.</li></li></ul><li>Musicroom.com Recommendations<br />Product Page<br />As an alternatives/up-sell or cross-sell technique.<br />
  39. 39. Musicroom.com Recommendations<br />Search Results & Category Pages<br />Placing results that users currently find relevant at the top search.<br />
  40. 40. Musicroom.com Recommendations<br />Basket Page<br />Cross-sell complimentary items, missed deals etc.<br />
  41. 41. Musicroom.com Recommendations<br />Artist A-Z<br />Popular Artist Tag cloud<br />
  42. 42. Musicroom.com Recommendations<br />Email Recommendations<br />Follow-up emails include related items.<br />
  43. 43. Recommendations - 2 examples<br /><ul><li>Crowd-sourced recommendations
  44. 44. Basic recommendations algorithms can suggest related products based on meta-data. i.e. With a flute, recommend flute strings, flute books, flute cleaning products.
  45. 45. Crowd-sourced recommendations can make associations that are not present in product data.
  46. 46. E.g. Recommend a music stand with a flute.
  47. 47. Real-time recommendations
  48. 48. Trends in how music is consumed often moves fast
  49. 49. Real-time recommendations can give products exposure without marketing intervention.
  50. 50. E.g. Ubi Caritas at the 2011 Royal Wedding </li></li></ul><li>Recommendations Results<br /><ul><li>Conversion Rate increase
  51. 51. Users clicking on recommendations convert at a rate of ten times the site average.
  52. 52. Average Order Value increase
  53. 53. Significant AOV increase for those using recommendations.
  54. 54. Margin increase
  55. 55. Ability to add business rules allows recommendations to target high margin areas of the catalogue.
  56. 56. Business Knowledge
  57. 57. Which content do users find interesting and engaging.
  58. 58. Which internal search terms are not producing the required results? </li></li></ul><li>Recommendations in Email Marketing<br />
  59. 59. Relevant Emails Rock!<br />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.<br />
  60. 60. Triggered Email Program Benefits <br /><ul><li> Highly relevant to individual
  61. 61. Beyond the buzzword... This IS Relationship Marketing
  62. 62. “Set it and forget it”
  63. 63. Incremental revenue</li></li></ul><li>POLL: What types of triggered email marketing are you using?<br />
  64. 64. Low Volume<br />4.1%<br />Triggered<br />Campaigns<br />Volume of Emails sent<br />95.9 %<br />Batch <br />Campaigns<br />
  65. 65. Low Volume, High ROI<br />4.1%<br />Triggered<br />Campaigns<br />Sales Generated<br />Volume of Emails sent<br />95.9 %<br />Batch <br />Campaigns<br />40.2%<br />Triggered<br />Campaigns<br />59.8 %<br />Batch <br />Campaigns<br />
  66. 66. Survey: Deploy Post Purchase Email?<br />
  67. 67. Reminders…almost out of stock<br />Open, CT and Conversion Rates that are MORE THAN DOUBLE broadcast email rates<br />Average Order Value is 53% HIGHER<br />
  68. 68. Marketers: Pick a Door<br />Door #1<br />Door #2<br />Average Open Rate of 47%<br />Avg Click-through rate of 20%<br /><ul><li>Recipients receive only 87 of these messages per year
  69. 69. Customers find this door twice as interesting as door #2
  70. 70. Average Open Rate of 31%
  71. 71. Avg Click-through rate of 6%
  72. 72. Recipients receive 3,694 of these messages received per year</li></ul>Source: Jupiter Research “US email Marketing Forecast, 2007 to 2012”<br />Source: Quris, Harris Interactive, Executive Summary Consulting, November 2004<br />Source: Forrester Research, September 2003<br />
  73. 73. Marketers: Pick a Door<br />Door #1<br />Door #2<br />Transactional<br />Commercial<br /><ul><li>Average Open Rate of 47%
  74. 74. Avg Click-through rate of 20%
  75. 75. Recipients receive only 87 of these messages per year
  76. 76. Customers find this door twice as interesting as door #2
  77. 77. Average Open Rate of 31%
  78. 78. Avg Click-through rate of 6%
  79. 79. Recipients receive 3,694 of these messages received per year</li></li></ul><li>Customer Examples and Results<br />
  80. 80. Social<br /><ul><li> Facebook Fan Page
  81. 81. Facebook News Feed</li></ul>Chat<br /><ul><li> Reactive Chat
  82. 82. Proactive Chat
  83. 83. Exit Chat</li></ul>Website<br /><ul><li> Home page
  84. 84. Landing page
  85. 85. Category page
  86. 86. Product page
  87. 87. Search page
  88. 88. Etc…</li></ul>Email<br /><ul><li> Order confirmation
  89. 89. Shipping confirmation
  90. 90. Re-targeting
  91. 91. Product review</li></ul>Mobile<br /><ul><li> Mobile Site
  92. 92. Mobile Apps.</li></ul>In-Store<br /><ul><li> Kiosk</li></ul>Personalization Zones<br />In-Session Behaviors<br /><ul><li> Keywords
  93. 93. Scroll
  94. 94. Etc…
  95. 95. Navigation
  96. 96. Dwell time</li></ul>Profile & Content Input<br /><ul><li> Demographics
  97. 97. Preferences
  98. 98. Past history
  99. 99. Catalog</li></ul>Intent Model<br />
  100. 100. Why Add Recommendations?<br />According to a Forrester survey: <br />74% unsubscribe from email lists because of irrelevant content<br />
  101. 101. Order Confirmation<br />Best Practice:<br />Recommend accessory items<br />or complementary items for each product in cart<br />
  102. 102. Shipping Confirmation<br />Best practice:<br />Recommend accessory items<br />Or popular items in same category<br />
  103. 103. Cart Abandonment<br />Best practice: <br />- Send within 24 hours for optimal results<br />- Recommend similar items<br />- Use business rules to determine if up-sell can be done<br />
  104. 104. POLL: How long do you wait to follow up on abandon carts, etc? <br />
  105. 105. Follow Up Timing<br />
  106. 106. Baynote Improves Email Relevance to Increase Conversion Rates <br />Cart/Browse Abandonment<br />Order Confirmation<br />Special Offers<br /><ul><li>Personalize your transactional emails with relevant recommendations to increase conversion (Transactional emails have open rates upwards of 60-80%)
  107. 107. Retarget and convert lost customers with targeted emails based on cart/browse abandonment
  108. 108. Effectively market to and convert customers with special offers</li></li></ul><li>Tablespoon.com<br />Use Cases<br /><ul><li>Using Baynote in Marketing Campaigns
  109. 109. Delivering Related Recipe Recommendations
  110. 110. Increasing Engagement with Tablespoon.com</li></li></ul><li>Netshoes<br />Use Cases<br /><ul><li>Using Baynote in Cart Abandonment and Out-of-Stock Alerts
  111. 111. Delivering Related Product Recommendations
  112. 112. Increasing Revenue through Cross-Sell and Up-Sell</li></li></ul><li>Fingerhut<br />Use Cases<br /><ul><li>Using Baynote in Order and Shipping Confirmations
  113. 113. Delivering Related Product Recommendations
  114. 114. Increasing AOV through Cross-Sell</li></li></ul><li>Potential 5% Uplift<br />5%+ Revenue Lift Potential by Adding Email Recommendations<br />
  115. 115. Wrapping Up<br />Personalised product recommendations create a more relevant experience on site and in email – leading to more engagement.<br />Including recommendations in triggered email marketing can lift revenues from 5-12% by providing more options and a more personal experience.<br />Implementation shouldn’t be daunting. Much of your investment has already been made in your email marketing solution. <br />
  116. 116. Q&A<br />
  117. 117. About Silverpop<br /><ul><li>1,400+ customers
  118. 118. Across 38 countries
  119. 119. 95% customer retention
  120. 120. >2B msgs sent per month across our customer base</li></li></ul><li>About Baynote<br /><ul><li>300+ customers
  121. 121. Across 23 countries
  122. 122. Delivering 3bn+ online recommendations each month</li></li></ul><li>Resources<br />Resource Centreat silverpop.com<br />White papers<br />Webinars<br />Blogs<br />Case studies<br />Newsletters<br />Presentations on SlideShare<br />www.slideshare.net/Silverpop<br />
  123. 123. Thank you!<br />
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