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Beyond the Click: Understanding the Full Value of Email to Your Business
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Beyond the Click: Understanding the Full Value of Email to Your Business

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  • 1. Beyond The Click:! Understanding and keeping up with changing email! !
  • 2. Its  nice  to  meet  you  Jessica  Jaye  Harley  VP  Customer  Marke5ng  Gilt  Groupe   For  context,  prior  experience  includes:     •  VP  Online  Marke;ng  FTD.com   •  VP  Marke;ng  Borders   •  Director  Marke;ng  Barnes  &  Noble   •  10  years  direct  marke;ng  
  • 3. Who  we  are  •  Launched  November  2007  •  Curate  broad  range  of  daily   sales  to  serve  membership  •  Over  6,000  premium  brands   featured   3  
  • 4. Who  we  are  •  1/3  of  total  company  sales   occur  noon  hour  on   weekdays  •  Compe;;ve  shopping  •  Sales  last  36  hours  •  Average  160  sales/week  
  • 5. Who  we  are  •  4.3  million  ac;ve  members  •  Over  1/3  login  in  any  month  •  Extremely  loyal  customers  •  65%  Noir  members  purchase   each  month  •  Interna;onal  shipping  launched   November  2011  
  • 6. Who  we  are  •  Named  by  Fast  Company  as   one  of  the  Top  25  Innova;ve   Companies,  #1  in  Fashion  •  Internet  Retailer  Top  500   Rank  of  49  •  DMA  2011  Marketer  of  the   Year  
  • 7. Who  we  are  •  Growth  largely  fueled  by   fantas;c  customer  experience  •  Acquired  less  than  1/3  of  our   members  via  paid  marke;ng   efforts  to  date  •  S;ll  growing  –  20%  of  purchasers   each  month  are  new  customers  
  • 8. Who  we  are  •  Women’s  Fashion  •  Men’s  Fashion  •  Children’s  Clothing  &  Toys  •  Home  •  Gourmet  Food  &  Wine  •  Travel  Experiences  •  City  Experiences  
  • 9. Who  we  are  •  Shoot  almost  all  our  own  photography  •  Undergoing  major  rebranding  •  Lighter,  friendlier  and  more  accessible  •  Allows  product  and  color  to  shine   9  
  • 10. Women’s  –  Nov,  2007  Launch  
  • 11. Home  –  launched  2008  
  • 12. Men’s  –  Oct,  2009  Launch  
  • 13. Baby  &  Kid’s  –  Jul  2008  Launch  
  • 14. Jetseger  –  Sep  2009  Launch  
  • 15. Gilt  City-­‐  Sep  2010  Launch  
  • 16. Taste  –  May  2011  Launch  
  • 17. Park  &  Bond  –  Aug  2011  Launch    
  • 18. Gilt  Japan  –  Mar  2009  Launch  
  • 19. A  lot  has  changed  in  these  4  years…  
  • 20. Email  has  changed  too    The  big  ques;on…  
  • 21. Is  Email  Dead?  
  • 22. Social  leaders  declared  it  
  • 23. Mainstream  media  
  • 24. Industry  blogs  
  • 25. The  evidence  is  moun;ng  
  • 26. Gilt’s  tremendous  growth  has  occurred  within  an  email  based  model…  During  the  ;me  these  claims  have  been  so  popular  
  • 27. How  is  this?    
  • 28. People  are  S;ll  Paying   Agen;on  to  email    87% of  email  users  check  personal  email  daily  51% of  daily  mobile  email  users  check  personal  email  4+  ;mes  daily   Merkle;  View  from  the  Digital  Inbox,  February  2011    
  • 29. Even  those  who  say   they  are  not    60% of  those  who  report  they  have  a  special  account  for  retail  emails  say  they  check  it  daily   Merkle;  View  from  the  Digital  Inbox,  February  2011    
  • 30. But  they  are  changing  HOW  they  interact  with  email  
  • 31. Mobile  is  Changing  Email  Usage  
  • 32. While  s;ll  the  minority…   Up 34%Return  Path:  Mobile,  Webmail,  Desktops:  Where  Are  We  Viewing  Email  Now?,  Nov  2011.  Mobile  %  increased  34%  from  April-­‐Sept  2011  vs.  prior  6  months      
  • 33. Mobile  %  is  Growing  Rapidly   %    Total  Email  Opens   Up 51% 20%   Mobile   PC   80%   Kno;ce,  Mobile  Email  Opens  Report  ;First  Half  2011,  up  vs.  Q4  2010  
  • 34. Gilt’s  mobile  email  opens  are  approaching  half   %  Gilt  Email  Opens   Mobile   PC  
  • 35. Yet  top  brands  engaging  in  email   marke;ng  are  s;ll  linking  to  full  site   14%   Link  to  Plain  Web  Site   17%   Link  to  Mobile   69%   Op;mized  Site   Link  to  Mobile  Apps  L2  Pres;ge  100©;  Mobile  IQ,  January  11,  2012  
  • 36. Mobile  has  come  to   dominate  on  weekends  Return  Path:  Mobile,  Webmail,  Desktops:  Where  Are  We  Viewing  Email  Now?,  Nov  2011.    
  • 37. Mobile  sales  are  following   Gilt  Mobile  Sales  %   73% HigherWeekend  Weekday  
  • 38. Device  usage  also  changes  by  ;me  of  day  
  • 39. Mobile  %  of  sales  also   changes  by  ;me  of  day   Mobile  %  of  Gilts  Total  Sales   +48% Full  24  hrs   to 24hr9  to  Midnight  Noon  to  9PM   Midnight  to   Noon  
  • 40. How  best  to  keep  up  with  Mobile  Email?  
  • 41. Ensure  a  single  voice  across  channels  
  • 42. Be  where  customers  are  
  • 43. YOY  revenue  growth  fueled  by  mobile  
  • 44. Understand  what  works  when  
  • 45. Link  to  App  or  M-­‐Site  
  • 46. It  is  becoming  clear  that  Email  and  Mobile  will  dominate  over  Social  when  it  comes  to  revenue  
  • 47. Stores  shupng  down  on  Facebook  Facebook  stores  that  opened  and  closed  in  the  past  year:  •  Gamestop  •  Gap  •  JC  Penny  •  Nordstrom  
  • 48. “It  was  like  trying  to  sell  stuff  to  people  while  they’re  hanging  out  with  their  friends  at  a  bar”  
  • 49. Consumers  prefer  to  receive   promo;ons  via  email  over  social   Where  Consumers  Prefer  to  Receive  Retailer  Promo5ons   +   +   Social   4X   2X   Email   Adults*   Youth  15-­‐24**  *Internet  Retailer:  Young  consumers  use  e-­‐mail  to  find  deals,  July  2010  **Internet  Retailer:  For  store  promo;ons,  e-­‐mail  tops  social  media,  June  2010  
  • 50. Top  Brands  are  promo;ng  Social   more  than  Mobile  L2  Pres;ge  100©;  Mobile  IQ,  January  11,  2012  
  • 51. Social  is  crucial  to  brands,  email  and  mobile  beger  cater  to  direct  response  sales  driving  
  • 52. Social  is  a  great  tool  for  brands  to  build  a  rela;onship  
  • 53. Provide  fantas;c  customer   service….    Hi  Gilt,  me  again.  Well,  late   tonight  you   totally  solved   the  order   problem  in  a   kind  of   unexpected,   "wow"  way.   Thanks!  
  • 54. Important  part  of  the  promo;onal  mix…  
  • 55. Build  excitement  for  sales  and  promo;ons….  
  • 56. Drive  Awareness  and  engagement  
  • 57. Drive  loyalty  among  exis;ng  customers….   Gilt  Social  Promo5on  Sales   New  Customers   Exis;ng   Customers  
  • 58. Understand  full  impact  of  email  
  • 59. Gilt  open  rates  remain  steady  in  the  face  of  rapid  growth,  but  click  rates  are  declining   Open%   Click%   2009   2010   2011  
  • 60. Problem?    Let’s  understand  the  cause  
  • 61. Mobile  email  openers   are  not  clicking  %  Gilt  Email  Opens   %  Gilt  Email  Clicks   Mobile   PC   PC  
  • 62. Tabbed  browsing   prolifera;on  also  likely   causing  click  declines  57% of  users  switch  tabs  in  a  session   Jeff  Huang,  Ryen  W.  White  (June,  2009).  "Parallel  Browsing  Behavior  on  the  Web"  
  • 63. How  should  email  revenue  be  measured?  
  • 64. Based  on  direct  click   revenue?  Gilt  Email  Revenue  %  Total  Click  Only   Email  Revenue   Non-­‐Email  Revenue  
  • 65. What  if  we  add  in  revenue   from  same  day  email  clickers?  Gilt  Email  Revenue  %  Total  w/Clickers   Email  Revenue   Non-­‐Email   Revenue  
  • 66. How  about  email  openers  who  purchase  in  same  day?   Gilt  Email  Revenue  %  Total  w/Openers   Email  Revenue   Non-­‐Email   Revenue  
  • 67. Or  revenue  from  all  same  day  email  recipients?   Gilt  Email  Revenue  %  w/Recipients   Email  Revenue   Non-­‐Email   Revenue  
  • 68. Perhaps  oversta;ng  it,  but…  Some  por;on  of   Gilt  Email  Revenue  %  w/Openers   these  sales  are  driven  by  email   received   Email  Openers  &   Clickers   Email  non-­‐Openers   Email  Non-­‐ Recipients  
  • 69. The  key  is  we  need  to  be  flexible  in  our  understanding  of  email’s  value  or  we  could  be  making  wrong  decisions  
  • 70. When  tes;ng,  ensure  right  metrics  Email  Tes;ng  –  Ensure  that  you  are  capturing  the  full  impact  of  tests  with  cross  channel  ac;vity  Lifecycle  Marke;ng  –  Ensure  that  purchases  are  incremental  over  ;me  Cross  Channel  Promo;ons  –  Does  total  spending  behavior  change  a{er  cross-­‐channel  promo;on?    
  • 71. Even  crea;ve  tes;ng  can  have  impact  beyond  click  revenue  
  • 72. Bricks  &  Clicks  is  more  challenging  Loyalty  Cards  –  If  customers  are  earning  something  they  have  incen;ve  to  give  you  email  and  pull  out  the  card    Store  Credit  Cards  –  Will  always  impact  a  lower  %  of  customers,  but  will  be  most  loyal  ones    Credit  Card  Data  Analysis  –  Painful  route      
  • 73. What  would  an  email  presenta;on  be  without  discussion  of  Relevancy?  
  • 74. Relevance  is  now  more  important   than  ever   Single  campaign  w/segments  by   format,  offer,  #  sales,  products,   etc.  across  channels   Stated   Preferences   Loyalty   Machine   Program(s)   Learning   Predic;ve   $" Models   Campaign   Management   Purchase/  Browse   Member   History   Data  Cube   """""" """"""" """"""" User  Input   """"""" """""""Merchandise  Strength   $ Customer   Spend,  RFM,   Outside  Data  (Demo/ Sa;sfac;on     Lifecycle   Shopping)   5 4 3 2 Series1 1 0 1 2 3 4 Series1 Campaign  Results  
  • 75. Personalized  sale  emails  drive  +10%  revenue  across  all  customers  
  • 76. User  input  drives  up  to  31X  to  50X  revenue  li{s  
  • 77. Lifecycle  marke;ng  drives  up  to  2-­‐5X  revenue  increases  
  • 78. But  lifecycle  messaging  can  easily  be  overused  
  • 79. Behavioral  targe;ng  drives  up  to  20X  revenue  li{  
  • 80. User  discre;on  needs  to  be  used  in  conjunc;on  with  sta;s;cs  
  • 81. Key  Takeaways  Unified  Voice  –  across  all  channels    Understand  what  is  behind  data  –  It  could  change  your  strategies    Be  where  your  customers  are  –  Understand  the  mindset  they  are  in    Be  relevant  and  flexible  –  Adapt,  adapt  adapt    
  • 82. Ques;ons?    Jessica  Harley  VP  Customer  Marke;ng  Gilt  Groupe  jharley@gilt.com