Retail Email: Leaving Money in the Inbox

Retail Email: Leaving Money in the Inbox Sallie Burnett , President, Customer Insight Group (moderator) Scott Roth , Director, Product Marketing, ExactTarget Caroline Gardner , Director of Customer Experience, SiteBrand Alicia Elizarraras , Marketing & Content Specialist, Kiyonna

Sallie Burnett , President, Customer Insight Group (moderator)

Scott Roth , Director, Product Marketing, ExactTarget

Caroline Gardner , Director of Customer Experience, SiteBrand

Alicia Elizarraras , Marketing & Content Specialist, Kiyonna

The Opportunity

Why Are We Here Today? Commercial email last year generated more than $21 billion in U.S. sales.* Email offers a strong ROI, delivering $48 for every dollar invested. Eight out of 10 online consumers have registered to receive emails from at least one company, and nearly half of online users who receive promotional emails from their favorite retailers have been prompted to make a purchase because of the messaging.** Source: *Direct Marketing Association, ** Forrester Research

Commercial email last year generated more than $21 billion in U.S. sales.*

Email offers a strong ROI, delivering $48 for every dollar invested.

Eight out of 10 online consumers have registered to receive emails from at least one company, and nearly half of online users who receive promotional emails from their favorite retailers have been prompted to make a purchase because of the messaging.**

Opportunity to Improve Email Results 35% of retailers in the Internet Retailer Top 500 Guide fail to send a single e-mail within 30 days of when customers sign up for the e-mail program 96% of the Top 500 fail to personalize subject lines 71% of e-mail marketers do nothing to entice customers to stay on the list after the customer has initiated the unsubscribe process. 75% of the retailers that offered choices in their preference center at opt-in, failed to forestall potential opt-outs by offering to send emails less often or to send different types of content. Source: silverPOP 2008 Email Study of Top Retailers

35% of retailers in the Internet Retailer Top 500 Guide fail to send a single e-mail within 30 days of when customers sign up for the e-mail program

96% of the Top 500 fail to personalize subject lines

71% of e-mail marketers do nothing to entice customers to stay on the list after the customer has initiated the unsubscribe process.

75% of the retailers that offered choices in their preference center at opt-in, failed to forestall potential opt-outs by offering to send emails less often or to send different types of content.

Driving Engagement with One-to-One Communications

The challenge is clear… How do I convert? Website visitors to buyers One-time buyers into repeat customers Low-value into highly profitable loyal customers

How do I convert?

Website visitors to buyers

One-time buyers into repeat customers

Low-value into highly profitable loyal customers

And the tool kit is more than full… Engagement Mediums Web Other Online Email Mobile Offline Information/Data Sources CRM Web Analytics Onsite Search eCommerce Merchandising Point of Sale Data Warehouse Financial Systems

Engagement Mediums

Web

Other Online

Email

Mobile

Offline

Information/Data Sources

CRM

Web Analytics

Onsite Search

eCommerce

Merchandising

Point of Sale

Data Warehouse

Financial Systems

Our Philosophy Serve... the individual Honor... their unique preferences with regard to communication, content, frequency and channel Deliver... them timely, relevant content that improves their lives www.subscribersrule.com

Serve...

the individual

Honor...

their unique preferences with regard to communication, content, frequency and channel

Deliver...

them timely, relevant content that improves their lives

Stages of Retail Engagement

Acquire The Challenge Develop cutting edge web presence and email strategy that reflects brand Measure performance and impact that email has on overall business The Solution Opt-ins gathered through online and offline stores Postcard-type emails with high quality photographs Subscribers driven to brand consistent landing pages for immediate purchase

The Challenge

Develop cutting edge web presence and email strategy that reflects brand

Measure performance and impact that email has on overall business

The Solution

Opt-ins gathered through online and offline stores

Postcard-type emails with high quality photographs

Subscribers driven to brand consistent landing pages for immediate purchase

Convert The Challenge Improve overall customer lifetime value Gain efficiency by automating manual remarketing activities The Solution Re-marketing program targets customers who purchase specific products or abandon a shopping cart Highly targeted offers sent to customers drive adoption of continuity programs The Result Increased overall site conversion rate by 1% = 50% improvement 100% increase in site traffic Expected revenue increase by ~$1million this year

The Challenge

Improve overall customer lifetime value

Gain efficiency by automating manual remarketing activities

The Solution

Re-marketing program targets customers who purchase specific products or abandon a shopping cart

Highly targeted offers sent to customers drive adoption of continuity programs

The Result

Increased overall site conversion rate by 1% = 50% improvement

100% increase in site traffic

Expected revenue increase by ~$1million this year

Retain The Challenge Re-engage existing clients, keep a continuous dialogue over time, open door for repeat purchases Drive user reviews of purchased products The Solution Automated follow-up email with direct feed of purchased products 21 days after The Results 40,000 extra touch points with customers created so far in 2008 78% of website product reviews generated from this campaign

The Challenge

Re-engage existing clients, keep a continuous dialogue over time, open door for repeat purchases

Drive user reviews of purchased products

The Solution

Automated follow-up email with direct feed of purchased products 21 days after

The Results

40,000 extra touch points with customers created so far in 2008

78% of website product reviews generated from this campaign

Email Best Practices

List Growth Prominent opt-in area with clear expectations Easy sign up process Detailed customer profiles can be built over time (demographic, behavioral and transactional)

Prominent opt-in area with clear expectations

Easy sign up process

Detailed customer profiles can be built over time (demographic, behavioral and transactional)

Simple sign-ups look like this… Incentive… Profile… Prominent…

List Growth Strict privacy policy Easy opt-out process Responsible bounce management Be ready to use automation to move beyond segmentation Instant gratification via welcome email

Strict privacy policy

Easy opt-out process

Responsible bounce management

Be ready to use automation to move beyond segmentation

Instant gratification via welcome email

Encourage immediate search… Offer an incentive to purchase… Acknowledge the New…

Acknowledge the Lapsed… Come back today! Benefits galore!

Split Testing / Design Email A Email B

With Images Off & Results Results: Increased opens, clicks, deliverability Email A generated $1,200 Email B generated over $9,000 Email A Email B

Results:

Increased opens, clicks, deliverability

Email A generated $1,200

Email B generated over $9,000

What Doesn’t Work…

What’s Better…

Why it’s Better…

Creating Email that Sells Alicia Elizarraras Marketing and Content Specialist Kiyonna

Thank You! Alicia Elizarraras , Marketing & Content Specialist, Kiyonna [email_address] Scott Roth , Director, Product Marketing, ExactTarget [email_address] Caroline Gardner , Director of Customer Experience, Sitebrand [email_address] Sallie Burnett , President Customer Insight Group, Inc. [email_address]