Matthew KelleherCommercial Director, RedEye                              1
Relevance andAutomation Combined                      2
What is Behavioural Email Marketing?Behavioural Email Marketing is the application ofbehavioural data to drive maximum rel...
•••••••    4
•••    5
Marketing Sherpa, 2011                         6
Three quarters ofrespondents said thatirrelevancy is the mainreason for unsubscribingfrom a company‘s emailprogramme.Frequ...
Relevant emails make more money – shocker!                                             8
The rise of email analytics                              9
Building Automation                      10
Maximise customer lifetime value by targeting behaviour                        Increased value with behavioural           ...
Basket Abandonment                     12
Increased value with behavioural                       lifecycle marketing                                                ...
Single Integrated e-CRM Infrastructure                                         14
Evans Cycles achieved over172% year on year increasein email revenues.Clifford James achieved678% ROI with abandonedbasket...
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Email & Mobile Theatre; Behavioural Email Automation and Relevance Driving Rapid Email Growth


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  • Good morning, thank you for attending today.My presentation is straight forward today, no beating around the bush. There are two strategies that combine to produce what RedEye have termed as Behavioural Email, and these are Automation and Relevance. In the next 12 months, my strong recommendation is that you build these strategies into you email marketing plans.So, the next 19 minutes are really about trying to persuade you that I am right!
  • This email is the best email I have received in the last 6 months. Others I may have read and clicked through from, others may have been relevant, carried content that I enjoyed or in many other ways have been relevant. However, I made a copy of this email because it was so totally relevant that it took £45 out of my wallet. I was delighted to get it, it saved me the hassle of trying to find these products.The story behind this email is that, before Christmas my youngest son wrote me his Christmas list. Sadly, in an indictment of modern technology the list wasn’t posted to Father Christmas, The North Pole, it was browsed for only line and sent to me by email.But the act of browsing for products left behind it behavioural information. The Amazon email automation system picked up this information and triggered an email to me. I spent more than I should have. Nice story.So how can you ensure relevance… well, the moral of this story is that, in general, people only browse, read and consume content that is interesting to them. Using that information, in whatever guise, to personalise your email marketing strategy, will therefore have very significant impacts on your CRM strategy.
  • Behavioural email is, effectively, online direct marketing. Some of you may not enjoy that analogy, but email is what direct marketing was made for. Email is protected from the worst abuses of direct marketers by optin legislation… and email also benefits from the obvious benefit that the better you do it, the more income you make!But added to traditional dm tools of RFM segmentation and lifecycle modeling, behavioural data, dynamic content capabilities and automation provide relevancy to marketers like never before.
  • Success with Evans Cycles has been based on the goal of setting the target of making every email as relevant as possible to the recipient. Evans started working with RedEye at the end of May , introducing best practise email marketing technique, followed by behavioural email strategies, and achieving an increase in income by 172% year on with return on investment is running at a healthy 2400%. If you want to see more on this, the full case study can be found on the RedEye website, also is only refers to the previous quarter success and this is more up to date.I want to draw you attention to the notes on open and click through rates. Ordinarily you will be achieving open rates in a range of 10-20% and click rates of 5-10% and some of you may be seeing declining rates in the face of increased competition in the inbox as consumers become more confident with online and email marketing and opt in to more newsletters. But here you see the impact of using engagement data and behavioural information to make the email more relevant. The benchmark open rate for a behavioural email should be 50% and the click rate benchmark should be 35%This is the benefit of RELEVANT email.
  • A similar story, with similarly spectacular results, is also available for Budget Rent A Car. The strategy of addressing customers engaged in particular ways with the brand, as distinct from regular offer driven email newsletters, achieved the double whammy of increasing income at the same time as reducing costs. The end point is a vastly improve return on investment for email marketing.But consider what is going on. If you switch you email marketing effort from manual campaigns to automated behavioural email you will reduce outlay whilst achieving the dual goals of increased engagement and income as well as increased complexity.
  • The search for ‘relevance’ is as old as marketing. Soap Operas are called soap operas because that is when P&G and Unilever thought it best to target the stereo typical housewife. Direct marketing grew during the 80’s and 90’s off the back of a desire to be more targeted and exact with marketing spend. Segmentation was developed and now informs huge swaths of CRM and then developed into propensity modelling, the search to identify people most likely to buy.Whether you are advertising Fairy Liquid in the Coronation Street ad break or developing customer journeys based on propensity modelling, I don’t think it is an over exaggeration to say that knowing what a customer is thinking about buying is useful! But if you agree with me that you rarely browse things that you really don’t want to buy or are not interested in, then behavioural data is hugely insightful.And others support the potential value of behavioural data. Indeed, Marketing Sherpa’s 2011 Email Benchmark Report, where nearly 3000 email marketers were polled, suggested that Behavioural Segmentation is the most important tool in the email marketer armoury with Automation running a close 2nd.
  • But, before we review the full list, one key point needs to be reiterated. Its all about relevance. Every strategy we are going to outline in this presentation seeks to improve relevance to the individual customer. Whether it is segmenting your customer list in a new or more advanced way, or integrating behavioural data from your website into your email communications, the goal to success is always to make each email more relevant.Another benefit of behavioural email marketing is that is not only allows emails to be more relevant, but it also allows for you to understand when customers are in ‘the buying window’. Engagement analysis, ieunderstanding when an individual is reading emails and visiting the website, allows emailers to respond to activity. Take my Amazon example from the start of my presentation… it was in specific reaction to engagement. And of course the reverse is also true. At times inactivity email frequency can be reduced, lessening or removing the feeling that an organisation is over mailing the customer and reducing unsubscribe rates.
  • So, before summarising, I would like to use this example of some of the gains you can make by making your emails more relevant using behavioural data.Haven Holidays, a UK holiday company, have utilised behavioural search criteria to ensure that emails during the customer browser research period are as relevant as possible. Internal search criteria or holiday browsed data can be pulled automatically into the dynamic templates from an online database and deployed automatically.Version one of this programme was a static trigger. If you want to send static triggers then you can integrate your ESP with your database and make the trigger event-driven. But when we modified the template to automatically pull in the behavioural data on search and browsed variables, the last click revenue performance increased by 61%.
  • Of course, the data that drives Behavioural Marketing comes from the ecommerce website through tags, hence fueling the rise of what Forester are calling ‘email analytics’. Indeed, as you can see from the graph they are predicting that this will be the faster growing area of growth in the email markeitng space.
  • But Behavioural Email cannot work without automation. I have to ask you to think of your customers as two segments… those who are engaged with your website or brand, and those who you want to get engaged. Let’s deal with those who are NOT engaged… these are customers who you are targeted with mailings in order to GET them engaged.But now consider those customers who are engaged.
  • There are two things that are important with engaged customers. Firstly, as we have reviewed, the behavioural data that you have on these customers, but secondly where that customer sits on your customer lifecycle. So much depends on this. The way you will deal with a prospect yet to make their first purchase and a loyal customer who has purchase 13 times is going to be vastly different. Understanding this, and utilising behavioural data, could not be possible without AUTOMATION.
  • Take for example basket abandonment. Dependent on your brand you will be able to test an optimal time to send basket abandonment emails. But without automation you will not be able to meet those optimal times.But take this to another level.
  • Returning to the Customer Lifecycle Model, organisations are now developing fully automated journeys according to the behavioural data on the individual customers. Each stage is defined by certain criteria, so for instance a customer remains in the conversion bracket until, as defined, the 3 purchase is made and the customer moves to the Develop Lifestage with the goal of enhancing loyalty and retention.Each stage is governed by the customer actions and is fully automated. Browser information drives specific relevant content to replaces standard offers in newsletter. And all the while the automation process ensure that marketing costs are kept low whilst achieving the high response rates that we reviewed a few minutes ago.
  • The key to making behavioural email marketing work is to utilise a deployment tool that is able to merge all the possible data sources. This is the key. Essentailly, the art of a good ESP in the future is the ability to plubj together different data streams in a meaningful way. You have three mains sources. Customer database. Held within here is your historical data, usually RFM driven, defining customer loyalty and value. This need to underpin the decision making of the deployment tool with information on Customer Loyalty and Value. Email data. Not just email address, but engagement data, such as the last time they opened an email or what links they click etc. Online data (most important). This tell us what is browsed, when it is browsed, the drop of points through to the products viewed for the longest period or most often. Then, business rules based on data from all these elements will inform the next step, usually a highly relevant email but this could be used to generate SMS or Direct Mail.And one important thing to remember – the database needs to be able to process data quickly, ie real time, because too often these days 24 hours later is not quick enough.
  • So, in summary, Behavioural Email can be seen as the pursuit of relevance through a greater understanding of the customer or prospects requirements and interests. Traditional marketing and segmentation allows us to understand what a customer bought previously, there loyalty to your business, even the next product they are likely to buy. But behavioural marketing tells you when a customer is in the buying window and what they are browsing. Applied to the pre-existing understanding of that customer, and deployed through automation tools I hope I have managed to persuade you that they produce phenominal results through providing customers and prospects with emails they want to open, read and act upon.
  • Email & Mobile Theatre; Behavioural Email Automation and Relevance Driving Rapid Email Growth

    1. 1. Matthew KelleherCommercial Director, RedEye 1
    2. 2. Relevance andAutomation Combined 2
    3. 3. What is Behavioural Email Marketing?Behavioural Email Marketing is the application ofbehavioural data to drive maximum relevancy in emailmarketing.• RFM and Historical Data• Lifecycle Modelling• Engagement Data• Automation• Dynamic Content• Behavioural Data 3
    4. 4. ••••••• 4
    5. 5. ••• 5
    6. 6. Marketing Sherpa, 2011 6
    7. 7. Three quarters ofrespondents said thatirrelevancy is the mainreason for unsubscribingfrom a company‘s emailprogramme.Frequency of emails isanother reason with 66% ofemail users listing it as areason to unsubscribe. 7
    8. 8. Relevant emails make more money – shocker! 8
    9. 9. The rise of email analytics 9
    10. 10. Building Automation 10
    11. 11. Maximise customer lifetime value by targeting behaviour Increased value with behavioural lifecycle marketing Profile Re-engagement Customer driven Nursery offers lifetime Win back value Welcome X-sell Abandoned basket Traditional customer lifecycle email marketing Newsletters Time Acquire Convert Develop Retain Reactivate 11
    12. 12. Basket Abandonment 12
    13. 13. Increased value with behavioural lifecycle marketing Profile Re-engagementCustomer driven Nursery offerslifetime Win backvalue Welcome X-sell Abandoned basket Traditional customer lifecycle email marketing Newsletters Time Acquire Convert Develop Retain Reactivate 13
    14. 14. Single Integrated e-CRM Infrastructure 14
    15. 15. Evans Cycles achieved over172% year on year increasein email revenues.Clifford James achieved678% ROI with abandonedbasket email campaign.Halfords Autocentresachieved over 5000% ROIfrom triggered behaviouralemail.Monarch Airlines achieved17,257% ROI withbehavioural email. 15