Guest Member-to-Subscriber Conversion Stream Analysis & Recommendations

Member-to-Subscriber Conversion Stream Analysis
and Conversion Performance Recommendations
July 2013July 2013
Provided by Leslie A. Howard
leslieahoward@gmail.com
1
This is an analysis and resulting recommendations made for a B2C company’s subscriber conversion
communications stream. The company’s service is clothing rental by mail.
This client does not have sophisticated CRM capabilities nor manpower capacity, therefore
recommendations focus on changes that could make the greatest positive impact.
Definitions:
• Member is a guest who has registered but who has not converted to a paying user of the service
• Subscriber is a paying user of the service

Situation
Study after study proves that word-of-mouth (WOM) is most influential information source for
consumers, i.e., no other “tactic” out-performs WOM’s conversion rate
In its current development stage, [client name] is using WOM as its primary means to acquire
subscribers
Prior to layering in additional paid or owned media tactics, [client name] should optimize its
WOM conversion performance
Objective
Assess Member-to-Subscriber conversion communications stream to improve conversion
Background
Assess Member-to-Subscriber conversion communications stream to improve conversion
performance
Methodology
Registered for [client name] membership 25-Apr-13; deliberately did not convert to subscriber
(provide credit card account)
Collected two months’ of communications (note: all communications were received via email,
as opposed to other/additional comms channels)
Analyzed communications to provide [client name] with insight regarding the experience
provided from the Target’s perspective
– Note, actual email performance metrics were not available to analyst to augment observational analysis
2

The 40/40/20 rule was established by industry
benchmarks showing that target data and offering
content are each twice as important as the
creative elements in their effect on program
performance.Data
40%
Content
Keep in mind the 40/40/20 direct marketing “golden rule”.
Offer (incentive and content
Segmented Target
Lists & Frequency
Due to the methodology employed for this
analysis—observations based on a single
registration profile—it’s not possible to comment
on how effective segmentation and list selection
was.
Therefore, this presentation primarily focuses on
Content and Creative.
40%
Content
40%
Creative
20%
Offer (incentive and content
access) & Offering
(subscription cost and rental
volume)
Visual Graphics,
Layout, Copy
3

Summary of Recommendations to Improve Conversion
Performance
Focus Areas Recommendations
Data
Registration
Data Capture
Consider adding registration fields upon which you can segment non-converted
subscribers in the future
Frequency
Decrease touch frequency
Consider implementing greater user control over frequency: opt-down, user
preference center
Timing
Ensure that all communications targeting non-converted subscribers focus singularly
on conversion for at least the first two weeks post-registration (strike while the iron is
hot)
4
Content
hot)
Offer
Continue to ensure offer type aligns with target’s position in life cycle
Vary the subscription offer’s positioning without greater financial exposure
Content Ensure that the content promoted in conversion touches align with target’s interests
Landing Page
Implement a conversion landing page that reinforces subscription benefits and the
offer, and teases (again) the conversion-focused content, e.g., celeb styles or new
collections
Creative
Layout
Ensure conversion CTA and offer are positioned prominently above the scroll
Consider locking-up social icons with header
Consider continuing layout testing

Currently, [client name] could (in theory)
segment, then treat differentially non-
converted registered members based on a few
rudimentary measures:
– Date of registration
– Referring source, which (in absence of paid media)
should mostly be direct and organic search
Consider testing into (completion vs.
You can’t segment unless you capture actionable
information.
Mask Client
Mask Client
abandonment) adding to the registration page
additional fields that would enable future
segmentation, e.g.,
– Fashion Interests? (e.g., formal workplace,
business casual workplace, sultry evenings, fun
weekends, special occasions)
– Zip code
– How did you learn about [client name]?
5
Mask Client

Non-converted members received a high volume of varied
content.
S M T W T F S
Apr 25 26 27
28 29 30 May 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 Jun 1
26
Conversion/Promotion
Best of the Week
Curated Collection
Conversion from C/S1
9
11
4
Color Key per Content TopicVolume
Subscription focused (count: 10)
Community focused (count: 22)
Period Tracked: April 25 Registration through July 15
Registration date
6
26 27 28 29 30 31 Jun 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 Jul 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15
30
New Arrivals
New Collection
I’m not a model but …
Lookalike Celeb Styles
Styling Tips
Member Mashup
Miscellaneous Miscellaneous includes: Kickoff
Summer, #Throwback Thursday,
Meet Our Model, Join Our
Community
2
5
10
7
7
2
5
Product focused (count: 17)
Fashion focused (count: 9)
Note: Dates with 2 colors
indicates 2 emails received

The touch frequency was excessive.
S M T W T F S
Apr 25 26 27
28 29 30 May 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 Jun 1
26
Near daily touches:
– Received 63 touches during 81 days
– Only 21 touch-free days
High frequency can cause declining email
performance metrics and drive opt-outs.
Since [client name]’s efforts are primarily
word of mouth, an opt-out represents a large
opportunity cost.
– Conduct a cohort analysis of unconverted
members to understand: open, click and opt-out
7
26 27 28 29 30 31 Jun 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 Jul 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15
30
members to understand: open, click and opt-out
and conversion rates over time as well as which
subject lines perform best
– Consider implementing an “opt-down” option
that decreases frequency but doesn’t eliminate
all contact
– Consider implementing a user preference center
through which members and subscribers can
indicate which content types, frequency and to
what email address they want to receive [client
name] communications, then promote the
preference center

However, relatively few touches focused on subscription
conversion.
S M T W T F S
Apr 25 26 27
28 29 30 May 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 Jun 1
26
17 of 63 (27%) touches could be attributed to
conversion, indicated by a combination of
offer, prominence of offer, CTA and
prominence of CTA.
– That’s being somewhat generous…
Strike while the iron is hot. Interest is highest
upon registration.
– Touches immediately following member
registration should focus on conversion, and
should serve-up the benefits of subscription
8
26 27 28 29 30 31 Jun 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 Jul 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15
30
should serve-up the benefits of subscription
with strong trial offer incentive.
– This premise includes “operational”
confirmation email(s).
– Consider integrating/testing outbound
telemarketing and/or mail into the conversion
comms stream.
Indicates touch that was conversion-focused
Key

The offer didn’t initially align with the Target’s position in
life cycle.
S M T W T F S
Apr 25 26 27
28 29 30 May 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 Jun 1
26
conversion indicated by combination of offer,
prominence of offer, CTA and prominence of CTA.
Initially, the offer was a refer-a-friend (RAF)
incentive which didn’t make sense for
members who are not subscribers, i.e., the
RAF incentive is best for subscribers who
have experienced the service/product and
thus would make a recommendation
9
26 27 28 29 30 31 Jun 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 Jul 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15
30
thus would make a recommendation
Indicates touch w refer-a-friend incentive
Key
Indicates touch w subscription incentive
Indicates touch w both types of incentives

Once the offer transitioned to a subscription incentive, the
same offer was used without variation.
S M T W T F S
Apr 25 26 27
28 29 30 May 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 Jun 1
26
conversion indicated by combination of offer,
prominence of offer, CTA and prominence of CTA.
Initially, the offer was a refer-a-friend (RAF)
incentive which didn’t make sense for members
who are not subscribers, i.e., the RAF incentive is
best for subscribers who have experienced the
service/product and thus would make a
recommendation
Once the offer was better aligned, the same
10
26 27 28 29 30 31 Jun 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 Jul 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15
30
Once the offer was better aligned, the same
offer was repeated without variation
– If Target doesn’t respond to offer 1, 2, 3 times,
it’s time to start providing variety, e.g., same
financial exposure but positioned in varied ways
as opposed to repeating “Sign up now & Get 30
days free”, for example:
• “Yours Free: XX new outfits every week for a month”
• “Perfectly Polished for a Month”
• “This month, look like a celeb for free”
Indicates touch w refer-a-friend incentive
Key
Indicates touch w subscription incentive
Indicates touch w both types of incentives

The content promoted was not always aligned with the
target’s position in life cycle.
S M T W T F S
Apr 25 26 27
28 29 30 May 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 Jun 1
26
Conversion/Promotion
Best of the Week
Curated Collection
Conversion from C/S
Member Mashup
1
9
11
4
2
Color Key per Content TopicVolume
Subscription focused (count: 10)
Community focused (count: 22)
1
4
Actual Recommended
Content Promotion
3
1
11
26 27 28 29 30 31 Jun 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 Jul 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15
30
New Arrivals
New Collection
I’m not a model but …
Lookalike Celeb Styles
Styling Tips
Member Mashup
Miscellaneous Miscellaneous includes: Kickoff
Summer, #Throwback Thursday,
Meet Our Model, Join Our
Community
2
5
10
7
7
2
5
Product focused (count: 17)
Fashion focused (count: 9)
Note: Dates with 2 colors
indicates 2 emails received
2
3
4
2

Landing pages that reinforce subscription benefits, the offer
and content teased were not employed.
All links seem to land in the same place:
login required.
– This approach presents a hurdle with no
added value.
Best practice would test landing pages that
reinforce subscription benefits, the offer
and would tease (again) conversion
focused content, e.g., celeb styles or new
collections.
Mask Client
Mask Client
12
Mask Client

The art direction/layout improved during the observation
period.
July 11
Reduced to 40%
June 11
Reduced to 40%
Improved prominence and
featuring of clothing
Arguably more attractive and
less distracting/clothes-
competing color palette
Mask Client Mask Client
13
Mask Client
Mask Client
Mask Client
Mask Client
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However, the conversion offer is below the scroll, appearing
as almost a footer element.
July 11
Reduced to 40%
Viewed in Chrome
July 11
Reduced to 40%
Viewed in IE
Mask Client
Mask Client
14
Both CTAs—Browse Now & Sign Up Now
& Get 30 Days Free—are below the scroll.
The conversion offer is locked-up with “footer” information. It should
be at the top.
Given the real estate dedicated to the Blog, one would think that it’s
an important CTA. Is there evidence that blog engagement drives
conversion?
Consider locking-up social icons with header.
Consider continued layout testing.
Mask Client
Mask Client

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