Red eye white-paper-email-remarketing-julio2011
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Red eye white-paper-email-remarketing-julio2011 Red eye white-paper-email-remarketing-julio2011 Document Transcript

  • Email RemarketingHow to recapture lost sales and make more moneyMark PatronJune 2011 The Leader in Behavioural Email
  • Email Remarketing one of the most efficient ways to do this. Introduction The average website conversion rate is only 2% Remarketing via email is one of the best ways to to 3%, so there is clearly a lot of room for recapture lost sales and improve ROI. This white improvement. With this in mind it is often more paper will help online marketers understand the cost effective to spend money improving benefits of using email remarketing and provide conversion than spend the same amount driving clear information on how email remarketing works. more traffic to the site; and one of the simplest It includes advice on best practice email triggers ways to improve conversion is email remarketing. online marketers can use to target new and Digital marketers are often frustrated by the fact existing customers and provides information on that some 70% of shoppers add something to their the cost of remarketing and guidance on privacy basket but never complete the purchase. So, how and security. do you go about clawing back these lost sales? There are many reasons for basket abandonment. At the back of the paper we have provided two Assuming you have undertaken usability testing to case studies of RedEye clients who have achieved streamline your checkout process and made outstanding results from email remarketing. buying easy and transparent on your website, and there are no hidden shipping costs or confusing payment options to put users off, then one of the best ways to improve conversion is email remarketing. Your most valuable prospects are those who nearly bought something and email remarketing allows you to keep in contact with those prospects. Sadly, prospects dont come back to your website frequently enough. To improve revisits and sales, remarketing is necessary and extremely effective. For well qualified prospects email remarketing We hope you find it useful! speeds up the process of making a sale that may have otherwise gone to a competitor. Forrester ResearchII found marketers integrating Why use email web analytics data to drive remarketing emails can generate nearly 4 times more revenue and 18 remarketing? times greater net profits compared with marketers using simple untargeted mailings. Remarketing uses two of the most important criteria for producing targeted marketing - recency Research by MarketingSherpaIII (see Fig 1) shows and frequency. Any direct marketer will tell you triggered emails and emails segmented by users’ the more recent the data the higher the behaviour are the most effective. Historically, response. Frequency is also important. Studies remarketing emails have been difficult to do. suggest that a company needs to have seven different However, suppliers have recently started to make ‘contacts’ with a customer (on average) before they the process easier, to the extent that now a make a purchaseI. To look at this another way, you number of suppliers offer a remarketing email need to get someone back to your website seven free trial. times before they buy, and email remarketing is www.redeye.com pg1
  • Email Remarketing Fig 1 means sending timely emails to people who have What is email remarketing? been on your site. The message you send them depends on what they did on the site. If they There are many types of automated emails, so let’s nearly bought something then maybe a simple start with some definitions. reminder will get them back to the site to buy. If they bought something but on the way spent five Remarketing email refers to the techniques, minutes viewing pages about another product strategies and often the automated email systems then send them a message about the other used by marketers and online merchants to follow up product they were viewing. with website visitors who do not make a desired action on the websiteIV, for example when they abandon their shopping basket. Email remarketing www.redeye.com pg2 View slide
  • Email Remarketing Examples of remarketing emails 1. Process drop out (abandoned basket) 2. Quote and viewed another product (cross sell, if the user requested a quote for car insurance but also viewed life cover plans, send them an email about the life cover you provide) 3. Initial registration and introduction process drop out 4. Registered not purchased 5. Quote not purchased 6. Single purchase (discount to purchase again) 7. Occasion (birthdays, anniversary of purchase) 8. Reactivation (not booked for 3 months) 9. Cross sell (viewed not purchased) 10. Site error or error registering www.redeye.com pg3 View slide
  • Email Remarketing Trigger emails are emails that are automated to respond to an event. For instance, someone How does email completing a registration form can instantly receive a ‘thank you for signing up’ trigger or if they abandon remarketing work? a basket, an email is triggered to that person to encourage them to complete the purchase. Triggers Email remarketing normally combines web are relatively straightforward. CMS and e-commerce analytics and email marketing. Take for example a platforms often have trigger facilities and most web basket abandonment email. This is simply an email analytics companies provide facilities to link visitor sent out to any customer that abandons their information to your email service provider.v shopping cart. To be effective, the email has to go out soon after the abandonment has happened, Behavioural email is based on an online database and this generally means some form of that collects all web and email engagement automation. information and can also be fed by offline behaviours. Thereby it automates and constructs When you use remarketing, youll tag pages of emails based on recent web engagement your site in the sales funnel. You might tag the first information and indeed any other information page of the sales funnel and the confirmation available to the database. The key is the fact that page. You might also tag the page where the email behavioural email marketing is driven by an online address is collected. Emails are then simply sent to database that integrates web analytics and email those consumers who start the sales funnel, opt in data. So rather than just delivering a basket to receive email, but do not complete a purchase. abandonment email about the specific products in the basket, the incentive to complete the basket By coupling web analytics technology with email may be to discount a separate product that the marketing in one integrated system, marketers individual has browsed recently (for instance have the ability to track customer activity on their ‘complete your basket and get this product 15% websites and then deploy messages to those off’). Behavioural strategies are based on the whole customers in real time. interaction with the customer or prospect and not simply the last event. Customer history, together Regardless of the web activity marketers wish to with current engagement, is used to enable more act upon (shopping basket abandonment, relevant and timely automated emails. different products viewed, page views, search keywords, registration forms) email remarketing Transactional emails are used as a result of a can harness valuable behavioural data to enhance transaction (for example welcome or confirmation customer interactions. emails). Transactional email may be generated by the e-commerce platform which tracks all website Remarketing allows you to communicate with transactions. Remarketing or behavioural emails people who have previously visited key pages on on the other hand do not just rely on transactions your website, giving you a powerful new way to but may be based on a user’s website behaviour match the right people with the right message. and therefore typically use web analytics data. Clearly there is some overlap in the definitions above, but this does not really matter. The important thing is to understand the differences between the different types of automated email and then to use the most appropriate for your application. www.redeye.com pg4
  • Email Remarketing reasons. It is impossible to properly synchronise How to improve your separate web analytics and email marketing email remarketing databases. Ideally they should be in one database. Database driven is best. For example, many Relevancy improves results; it’s as simple as that. suppliers of email remarketing do not recommend Relevancy can be improved by better targeting incentives in basket abandonment emails. The and recency. very valid reason for this is there is a danger of training customers to abandon baskets in Recency improves response. A basket expectation of a discount or free delivery. However, abandonment email done manually that goes out if you use a database driven system you can once a week will drive more sales but nowhere differentiate between first time and multiple time near the amount of sales timely automated emails abandoners. That way you can send an incentive will achieve. on the first or first two times when a consumer abandons a basket but not to someone who Be careful not to send remarketing emails so abandons multiple times. quickly that they arrive before the consumer has finished the session and truly abandoned the Registrations are important because the more shopping basket. Waiting 30 to 60 minutes is a registrations there are, the more remarketing safer option. emails can be sent. Incremental revenues from email remarketing increase in proportion to the Once remarketing email programmes get going percentage of opt-in emails collected. A common they can generate hundreds of different emails issue is when the email address is collected at the targeting users who have not fulfilled any number end of the sales funnel rather than early on. of key actions on the site. Creating targeted emails Registration should be included early in the buying using rich web analytics data will drive more process, enabling acquisition of more email relevant communications. A simple basket addresses for remarketing. However, this must be abandonment email can turn into several emails handled with a light touch and included within the targeted and individualised to each step in the buying flow. Positive language in the copy can sales funnel. Similarly, cross selling emails can be make all the difference. For example, Amazon’s first targeted at each individual product or product purchase step, which is essentially registration, is category viewed but not purchased. labelled as ‘Welcome’. When an account needs to be created the benefits of signing up need to be Automation is key. It is impossible to develop a rich made clear; let the user know they will be able to email remarketing programme unless it is track the progress of their order, and remind them automated. Email remarketing programmes that of the time they will save when placing their next allow for dynamically driven automated email order. marketing also minimise costs and human intervention. Testing improves results. Test recency, frequency, incentives and where the email address is Reach is important. Some email remarketing collected. Test everything that could improve systems can only remarket to consumers who were results, particularly those things that could driven to the site by previous emails. Clearly this improve results a lot. Best practice is to develop will miss the majority of consumers who will have your email remarketing programme over time got to the site via another route. This is often a (see Fig 2). Remarketing emails develop like a tree problem with combining separate web analytics diagram. Each email is tested for its ROI, and high and email systems for technical and privacy ROI emails become candidates for further www.redeye.com pg5
  • Email Remarketing refinement. So, a simple basket abandonment many companies go through so much pain getting email quickly turns into a programme of different a simple basket abandonment email going they emails targeted at different products. Not all tests then do no further testing, forfeiting further will work and certain branches in the tree will run improvements and revenues. out of juice giving no more uplift. This approach also highlights the requirement for flexibility. Sadly Fig 2 - A retail example of how email remarketing programmes can evolve www.redeye.com pg6
  • Email Remarketing How effective is email Privacy and security remarketing? There have been many examples of poor internet security covered in the press. It is obviously The best time to contact someone is when they important that any supplier meets the highest data have nearly bought something. So not surprisingly security standards. It is vital that all data is kept a single cart or basket abandonment email will securely and data transfers are only done via secure typically generate 2% to 5% extra revenue. Three means such as a secure FTP (File Transfer Protocol). or four well targeted remarketing emails should be able to produce around 4% to 8% incremental Clearly you cannot remarket to consumers without sales. A few dozen good remarketing emails can their email address and as with any email drive 10% extra sales. marketing, users must opt in to receive emails first. In addition your website privacy policy should be According to RedEye’s Behavioural Email clear about how cookies are used for remarketing Benchmark StudyVI , companies using remarketing purposes. or behavioural email have achieved conversion rates as high as 15% and click through rates as high as 65%. However, the report shows the The future majority of online companies are failing to use email remarketing to recapture lost sales by implementing programmes such as abandoned The outlook for email remarketing over the next basket and quote not buy. Only 13% of retail few years is bright as more and more suppliers companies implement abandoned basket email. offer more competitive offers and more Simple confirmation emails are more commonly sophisticated email remarketing technologies are used with 81% of retail companies sending a developed. welcome email and 73% of insurance companies sending a quote confirmation email. This higher Email remarketing is a great way to re-engage figure is because, until recently, it has been easier customers in a timely and relevant way. Most to implement transactional email than important of all it typically gives one of the highest remarketing or behavioural email. returns on investment of any marketing communications. What does email remarketing cost? There are now a number of companies, including RedEye, that offer remarketing free trials. This enables you to test the validity of doing email remarketing on a low risk basis. The supplier should send you daily progress reports on the number of emails sent, number of orders and money made. From this you can easily work out potential return on investment. www.redeye.com pg7
  • Email Remarketing Case Study: Haven Holidays “We have been working with RedEye for 4 years and are impressed with the innovation they have helped Remarketing Campaign: Booking Abandonment us to implement and the subsequent improvement in results. Using an automated abandoned basket ROI: 2815% | Open rate: 54% | Click through rate: 53% campaign has been a great investment. Being able to convert drop out customers with relevant, timely behavioural email has really paid off.” Haven Holidays was finding a proportion of their online Alison Dunn, Head of Ecommerce, customers began the booking process, but dropped off before Haven confirming their holiday booking. Haven wanted to find a way to target these customers and increase ROI. RedEye’s unique method of data capture enabled Haven to capture where users were dropping off in the buying cycle. These customers were then remarketed to via email, segmented by where in the booking process the customer dropped off and the type of holiday they were viewing. All emails were sent within 24 hours of drop off. Reaching customers in this time scale helped to entice customers back to Haven.com while the holiday was still fresh in the customer’s mind. Whenever possible the behavioural emails were personalised. Personalisation and information specific to the user helped to entice the customer to read the email and react to it. Case Study: Evans Cycles “We are extremely impressed by RedEye’s determination to continually drive our email Remarketing Campaign: Booking Abandonment conversion through on-going reviews and testing of ROI: 2399% | Year on year increase in email revenue: 100% creative, timings and segmentation. Evans Cycles has experienced significant growth in the last 12 months | Open rates: 84.9% towards which RedEye has played an integral role in our success.” Evans Cycles, the UK’s largest quality cycle retailer, has achieved significant business growth despite the economic downturn. Will Lockie, Online Marketing Manager, Determined to perpetuate success, Evans Cycles wanted to Evans Cycles find a way of optimising email marketing to improve revenue further. To improve campaign targeting and subsequently performance, RedEye worked with Evans Cycles to formulate their segmentation to remarket to new and existing customers via email. Email messaging and creative content was segmented based on individual email preferences, engagement and online browsing and purchasing behaviour. This ensured all email marketing content was relevant to each individual user. Using RedEye’s email engagement segmentation, Evans Cycles was able to remarket to consumers based on an individual’s level of interaction with email. In addition to uplifts in open and click rates, the percentage of engaged people increased by 29% and the database also grew by 17% in 3 months. www.redeye.com pg8
  • Email Remarketing References (I) Wikipedia, February 2011 (sourced from http://en.wikipedia.org/wiki/Behavioral_retargeting) (II) Forrester Research, February 2009, Integrating Web Analytics with Email Marketing to Improve Campaign Performance (III) MarketingSherpa, Email Marketing Benchmark Survey, 2010 (IV) Webopedia, ecommerce remarketing (sourced from http://www.webopedia.com/TERM/E/ecommerce_remarketing.html) (V) Matthew Kelleher, October 2009, Econsultancy blog “Defining trigger, remarketing and behavioural emails” (available at http://econsultancy.com/uk/blog/4831-defining-trigger-remarketing-and-behavioural-emails) (VI) RedEye Behavioural Email Benchmark Study, March 2011 (available for download from http://www.redeye.com/events/whitepapersandreports/behavioural-email-benchmark-study-2/) For more information on RedEyes products and services please visit www.redeye.com or call 0845 094 1114 www.redeye.com pg9