Building lifecycle strategies final

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Lifecycle Marketing strategies will govern the development of email marketing over the next few years. Not since Peppers and Rogers envisioned the "One to One Future" has the capability to manage customer relationships been so cost effective. This presentation was given to both the TFM&A London and Manchester events during 2011.

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Building lifecycle strategies final

  1. 1. Building Customer Lifecycle Marketing Strategies Using Behavioural and Engagement Data 26 May 2011 TFM&A Manchester
  2. 2. Premise <ul><li>“ Using the new media of the 1:1 future you will be able to communicate directly with customers, individually, rather than shouting at them in groups… The technologies needed to track and communicate with customers, one at a time, are already here.” </li></ul><ul><ul><ul><ul><li>* ‘The One To One Future, Building Relationships One Customer at a Time’, Don Peppers and Martha Rogers, 1993 </li></ul></ul></ul></ul><ul><li>Income for eCommerce organisations employing the latest Behavioural and Engagement strategies should be growing 150-250% per year. </li></ul><ul><li>Email driven by Engagement and Behavioural data achieves open rates of 40-60%... It is relevant </li></ul>
  3. 3. Over 100% Year on Year Increase in Email Revenues <ul><li>ROI of 2,399%, 103% growth in email revenues compared to the same period 2009. </li></ul><ul><li>Evans Cycles achieved these results through, amongst others, segmentation and life cycle marketing strategies. </li></ul><ul><li>The email campaign plan segmented messaging and creative content based on individual preferences, engagement, online browsing and behavioural behaviour. </li></ul><ul><li>Email marketing content was relevant to each individual user. The results included open rates as high as 84.9% (generic ‘newsletter’ emails 16% - 25%) and click rates of 40.5% (generic emails 3.8% - 5%). </li></ul>
  4. 4. Diverging Strategies in Email
  5. 5. Maximising Relevance Email Address Preference Centre RFM Data Behavioural Data Engagement Data
  6. 6. What is Engagement Data? <ul><li>Engagement data identifies engagement with all media and the website. </li></ul><ul><li>When Engagement is tracked and analysed the resulting segmentation will identify those customers likely to buy </li></ul><ul><li>For instance, a customer engaged with email is 6.2 times more likely to purchase than one who is not… </li></ul>
  7. 7. Email engagement data in action A combination of engagement and RFM can be used to select frequency of mailings. Sending emails to people who want to receive them, is vital to ensuring email deliverability. More frequent Less frequent Toxic segments
  8. 8. What is Behavioural Data? <ul><li>Repeat visitors are 8 times more likely to buy than first time visitors and the best way to get someone back to the website is via email </li></ul><ul><li>Consumers respond better to more relevant communication </li></ul><ul><li>Behavioural email targets consumers based on their online behaviour for best results </li></ul><ul><li>Makes email marketing relevant to every recipient </li></ul><ul><li>Typical results of 70% open rates, 30% click through rates and conversion rates over 10% </li></ul>
  9. 9. Why it’s important <ul><li>Forrester research says 71% of shopping carts are abandoned </li></ul><ul><li>Whilst recent studies have shown 46% of abandoned transactions would convert when remarketed to </li></ul><ul><li>A single basket abandonment email will generate about 2% extra revenues </li></ul><ul><li>A few dozen behavioural emails should be able to generate an extra 10% to 20% revenues </li></ul>
  10. 10. How the combined strategies work Visitors Browsers Info Gathering Comparing Basket Abandon Engagement is the first stage of any journey Purchase Drop off communications Browser programme Brand reinforcement and USPs Competitor Positioning Basket Abandonment Engagement
  11. 11. Automated Welcome Programme
  12. 12. Automated Welcome Programme
  13. 13. Extending Customer Lifetime Value with Lifecycle Strategies March 2007, Trends “Realizing The Life-Cycle Marketing Vision” <ul><li>Lifecycle Marketing is identified by Forrester as the most advanced form of customer marketing and involves all approaches to customer marketing. </li></ul><ul><li>Lifestage programmes, from Welcome thru Xsell to Win Back, are automated and optimised. </li></ul><ul><li>Lifestage programmes, supported by dynamic content and behavioural information, achieve maximum relevancy. </li></ul><ul><li>The outcome will be increased Lifetime Value. </li></ul>
  14. 14. The 6 Stages of Customer Lifecyle <ul><li>Tactical </li></ul><ul><li>Engagement </li></ul><ul><li>Purchase </li></ul><ul><li>Re-Enforcement </li></ul><ul><li>Retention </li></ul><ul><li>Reactivation </li></ul>
  15. 15. Behavioural Search Criteria Holiday specific search criteria will drive the content and trigger
  16. 16. Saved Event Mailings – Travel Industry <ul><li>Client: Haven Holidays </li></ul><ul><li>Campaign : – Saved Search </li></ul><ul><li>Data Logic: - 7 days after the event </li></ul><ul><li>No purchase </li></ul><ul><li>Results: </li></ul><ul><li>Revenue increased by +168% </li></ul><ul><li>Increased conv. +196% </li></ul>
  17. 17. Extended Product Specific Basket Abandon Program <ul><li>Client: Haven Holidays </li></ul><ul><li>Campaign: Holiday Type driven </li></ul><ul><li>Basket Process </li></ul><ul><li>24 hr emails </li></ul><ul><li>Results: </li></ul><ul><li>Revenue increased by +556% YoY </li></ul>
  18. 18. To make these programmes work… <ul><li>An online database operating at a customer level </li></ul><ul><li>Engagement data </li></ul><ul><li>Browser/web analytics data </li></ul><ul><li>Customer RFM data </li></ul><ul><li>Product and customer lifecycle models </li></ul><ul><li>Business rules </li></ul>
  19. 19. <ul><li>Thank you. </li></ul>
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