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3 Secrets of Multi-Channel Mar...
OVER 200 COMPANIES COMPETE IN THE DAILY DEAL SPACE IN THE USA ALONE.
Yet Groupon maintains a leading competitive edge in t...
53%
of Canadians are familiar with at least
one deal site.
42%
of these Canadians joined deal sites in
order to receive da...
February 20, 2014
Recode, Groupon Crushes
Q4 Estimates, but Mixed
Forecast Drags Down Stock
Groupon, Groupon Q4 2013
Publi...
Risks & Operations
“Our business depends on our ability to maintain and
scale the network infrastructure necessary to send...
Challenges
Opportunities
Benefit
Invest in multichannel
marketing
Internet trends and changes (ISP
changes like Gmail intr...
(1) Develop email solution in-house
License a messaging solution on a per-
customer-record pricing model instead
CPM: Cost...
“
The decrease in cost of revenue was primarily
driven by reduced email distribution costs,
primarily due to the migration...
Is optimal send time the same across different
segments?
Deal sites release limited-time and location-specific
offers, mak...
(2) Optimize deliverability
Certification, monitoring solutions and customized
consulting may sound excessive, especially ...
(3) Invest in multichannel marketing
APPLICATION APPROACH
Mobile is everywhere. To lead as a mobile-first
company Groupon ...
Mobile customers continue to be more
engaged than web-only customers,
purchasing more frequently and
spending more.
50% of...
“
ERIC LEFKOFSKY, CHAIRMAN OF GROUPON
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We still send far too many irrelevant
emails. That’ll change in 2014.
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LEARN MORE AT WWW.BRICKSTREETS...
3 Secrets of Multi Channel Marketing
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3 Secrets of Multi Channel Marketing

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Lessons from Groupon's strategy for increasing revenue per email.
For those organizations with large transactional email volume who depend on email marketing to drive traffic/sales. Read on the learn about industry best practices to lower send cost, improve deliverability and increase revenue per email.

Challenges Addressed:
#1 Internet trends and changes (ISP changes like Gmail introducing tabs in 2013, CASL 2014)
#2 Mobile commerce will make up 29% of web sales this year and today nearly half of all email is opened on a mobile device
#3 Marketing fatigue: Customers eventually begin to ignore due to excess marketing ads (i.e. The Law of Shitty Clickthroughs)

Learn about strategies to:
Develop email solutions in-house
Optimize deliverability
Invest in multi channel marketing

This deck was lovingly assembled using publicly available information and makes no claims on behalf of Groupon. If you have any feedback, ideas or questions just drop us a line ---> marketing[at]brickstreetsoftware.com

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3 Secrets of Multi Channel Marketing

  1. 1. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 3 Secrets of Multi-Channel Marketing LESSONS FROM GROUPON’S STRATEGY FOR INCREASING REVENUE PER EMAIL
  2. 2. OVER 200 COMPANIES COMPETE IN THE DAILY DEAL SPACE IN THE USA ALONE. Yet Groupon maintains a leading competitive edge in their core business whilst expanding into other markets. What can other deal sites adopt from Groupon’s marketing approach?
  3. 3. 53% of Canadians are familiar with at least one deal site. 42% of these Canadians joined deal sites in order to receive daily offers via email. 1,000,000,000 monthly Groupon emails. 53% 42% September 6, 2012 Globe and Mail, Canada loves daily deal sites, even more than U.S.: Survey June 24, 2011 Email Expert, Groupon Email Delivery Speed Increases by 40% with Certification
  4. 4. February 20, 2014 Recode, Groupon Crushes Q4 Estimates, but Mixed Forecast Drags Down Stock Groupon, Groupon Q4 2013 Public Fact Summary February 25, 2014 Brian Nichols, The Motley Fool, Could Groupon Be the Next Netflix?
  5. 5. Risks & Operations “Our business depends on our ability to maintain and scale the network infrastructure necessary to send our emails and operate our websites, mobile applications and transaction processing systems, and any significant disruption in service on our email infrastructure, websites, mobile applications or transaction processing systems could result in a loss of subscribers, customers or merchants. If our emails are not delivered and accepted, or are routed by email providers in a less favorable way than other emails, our business may be substantially harmed.” according to groupon’s management discussion and analysis of financial condition and results of operations THE RISKS TO GROUPON’S BUSINESS Groupon, Groupon Annual Report 2013
  6. 6. Challenges Opportunities Benefit Invest in multichannel marketing Internet trends and changes (ISP changes like Gmail introducing tabs in 2013, CASL 2014) TRENDS AND CHANGES MOBILE COMMERCE MARKETING FATIGUE Mobile commerce will make up 29% of web sales this year and today nearly half of all email is opened on a mobile device Customers eventually begin to ignore due to excess marketing ads (i.e. The Law of Shitty Clickthroughs) Sales and loyalty improve when customers receive fewer and more relevant offers Develop email solution in- house Optimize deliverability 1 2 3 February 20, 2014 Recode, Why Groupon’s Gmail Problem May Be A Good Thing May 13, 2014 Internet Retailer, US M-commerce Will Make Up 29% of Web Sales This Year June 12, 2014 Marketing Land, Report: Climbing To 48%, Mobile Email Open Rates Nearly Overtake Desktop in 2013
  7. 7. (1) Develop email solution in-house License a messaging solution on a per- customer-record pricing model instead CPM: Cost per thousand messages sent APPLICATION APPROACH Custom build a sending system in-house • Extra security of having entire database in- house • Cloud servers like Amazon Virtual Private Cloud (VPC) provide the same security and integration options as on-premise plus speed and superior economics • Build in feedback loop through surveys and analytics for better defined segments and greater personalization Nearly all large-volume senders pay ESP vendors on a CPM model, essentially trusting their most valuable asset — their email list — to a third party sender. For Groupon, developing Mindstorm helps broaden the relevance of emails and optimize revenue per email.
  8. 8. “ The decrease in cost of revenue was primarily driven by reduced email distribution costs, primarily due to the migration to an internal email distribution platform. GROUPON ANNUAL REPORT, 2013
  9. 9. Is optimal send time the same across different segments? Deal sites release limited-time and location-specific offers, making timing and inbox placement critical to conversion optimization. Groupon uses Smart Deals email personalization to customize the deals subscribers receive every day and includes input subscribers can submit on their interests and curiosities. Personalizing content to micro-segments, through a combination of analytics and feedback, lessens the junk subscribers have learned to ignore. CUSTOMER DEMOGRAPHICS DATA IS KEY TO IMPROVING RELEVANCE 73% 61% 25% are women, who are key to reaching families where they’re often primary household decision makers have college education and 20% have a graduate degree have an annual household income above $100,000 Groupon, Groupon Annual Report 2013
  10. 10. (2) Optimize deliverability Certification, monitoring solutions and customized consulting may sound excessive, especially since email is only one acquisition channel within a marketing mix — but for volume senders, like Groupon, even a 6% difference in CTR is extremely valuable. Factors Impacting Deliverability: Managing campaigns across multiple ESPs with a seed-based deliverability monitor allows you to test local ESPs in international markets and optimize send speed. Experimenting with multiple vendors and SMTP relays increases email marketing performance because different ESPs may experience different soft bounce rates depending on the ISP of the email recipient. APPLICATION APPROACH • ISP throttling (delivery speeds were slowed down by receiving servers) • Delivery performance per IP address and per location in the world • Send speed times • Optimizing for inbox placement between 6 and 9am locally across the world Return Path, Groupon Case Study Example of an ISP: Gmail, Outlook, Yahoo
  11. 11. (3) Invest in multichannel marketing APPLICATION APPROACH Mobile is everywhere. To lead as a mobile-first company Groupon had to invest in acquisition methods beyond email. User experience is central to their m-commerce and merchant apps and reflects in 5-star user ratings. To date, over 70 million people have downloaded a Groupon mobile app. Make customers feel recognized with relevant content and experiences • Markets categories of deals rather than just one per email • Reward loyalty within transactional emails • Map the buying experience across all channels • Use customer data to deploy triggered campaigns across email, mobile push and SMS • Provide transparent, helpful and authentic support through all channels Coordinate communication across channels, devices, and activities Real-time responsiveness
  12. 12. Mobile customers continue to be more engaged than web-only customers, purchasing more frequently and spending more. 50% of global transactions were completed on a mobile device as of December 2013. Groupon, Groupon Annual Report 2013
  13. 13. “ ERIC LEFKOFSKY, CHAIRMAN OF GROUPON $ $ $ We still send far too many irrelevant emails. That’ll change in 2014.
  14. 14. $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ LEARN MORE AT WWW.BRICKSTREETSOFTWARE.COM

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