2009 Email Marketing Masterclass Red Eye


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Advanced Email Marketing - covers Email Segmentation, Personalisation, Testing and Optimisation.

Presented to marketers from the Retail, Financial Services, Travel, Charity and B2B Sectors and including examples from all of these.

Published in: Business, Technology

2009 Email Marketing Masterclass Red Eye

  1. 1. E-mail Marketing Masterclass 28 th April 2009 Dr Dave Chaffey www.davechaffey.com/blog www.davechaffey.com/presentations
  2. 2. The biggest challenge in Email marketing?
  3. 3. Today’s topic: improving engagement
  4. 4. Today’s topics <ul><li>Benchmarking engagement </li></ul><ul><ul><li>What should I be measuring? </li></ul></ul><ul><li>How to best target & personalise </li></ul><ul><ul><li>Behavioural targeting </li></ul></ul><ul><li>Creating a structured testing programme </li></ul><ul><ul><li>What to test? </li></ul></ul><ul><ul><li>How to test? </li></ul></ul><ul><li>What other companies are doing? </li></ul><ul><ul><li>Case studies to inspire </li></ul></ul>
  5. 5. About Dave Clients include 3M, BP, CIPD, Euroffice, HSBC, IDM, Intel, Sony, Tui and Tektronix. Analyst at www.econsultancy.com . E-marketing consultant at www.cScape.com . E-marketing trainer and consultant <ul><li>Cranfield School of Management </li></ul><ul><li>Leeds University Business School </li></ul><ul><li>Warwick (E-business) 2 </li></ul><ul><li>Previously Birmingham, Derby </li></ul>Visiting lecturer at leading UK business schools <ul><li>Internet Marketing </li></ul><ul><li>E-business and e-commerce Mgt </li></ul><ul><li>Total E-mail Marketing </li></ul>Author of 6 best-selling business books Recognised by the CIM in 2004 as one of 50 people who have ‘shaped the future of marketing’ and by DTI in 2005 as a key contributor to the development of UK E-commerce in the last 10 years An e-marketing “guru”! www.davechaffey.com/blog
  6. 6. Activity. What affects E-mail campaign success rate? <ul><ul><li>CREATIVE </li></ul></ul><ul><ul><li>RELEVANCE, Readability, Reach </li></ul></ul><ul><ul><li>Individualised, ISP delivery, INCENTIVISATION </li></ul></ul><ul><ul><li>TARGETING/Segmentation </li></ul></ul><ul><ul><li>INTEGRATION </li></ul></ul><ul><ul><li>CONTENT/COPYWRITING </li></ul></ul><ul><ul><li>ATTRIBUTES </li></ul></ul><ul><ul><li>LANDING PAGE </li></ul></ul>
  7. 7. About You How advanced is your email marketing? <ul><li>Level 5: Optimised </li></ul><ul><li>Multiple segments, subject lines optimised in real-time, single customer view, optimized event-triggered mailings, Full RFV </li></ul><ul><li>Level 4: Contextual relevance Event-triggered lifecycle, mailings: Welcome strategies, post-purchase and reactivation – but not optimized, Basic RFV </li></ul><ul><li>Level 3: Basic test and learn Subject line testing, AB Testing, Follow-up on open/click behaviour </li></ul><ul><li>Level 2: Increasing relevance Broadcast to multiple segments (and track response) </li></ul><ul><li>Level 1: “Pray and Spray” Emails untargeted and untracked </li></ul>
  8. 8. Benchmark your Email capabilities! Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission
  9. 9. 1 Measuring engagement
  10. 10. 3 advanced ways of measuring email engagement <ul><li>How do you measure engagement with email? </li></ul><ul><li>Open/clicks/CTOR is NOT good enough, instead… </li></ul><ul><li>Opens/clicks/CTOR/sales: </li></ul><ul><ul><li>1. At position in lifecycle </li></ul></ul><ul><ul><li>2. By segment </li></ul></ul><ul><ul><li>3. By offer / email type </li></ul></ul><ul><ul><li>4. Aggregated over a longer time period </li></ul></ul>
  11. 11. Measuring list activity – email engagement <ul><li>These “hurdle rates” are for whole list. Repeat: </li></ul><ul><ul><li>By segment </li></ul></ul><ul><ul><li>By product categories purchased </li></ul></ul>Tip. Measure the overall health of your list through activity / inactivity levels over time
  12. 12. Avoiding disengagement Not open email Open email Click through Purchase Weeks or campaigns 1 2 3 4 5 6 7 8 Potential Disengagement (Don't let this happen) Successfully engaged (Do more of this) Semi-Engaged (change something now) Increasing engagement Source: Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
  13. 13. 2 Which are the best targeting variables?
  14. 14. easyJet.com example Source: Brand Republic Email marketing conference Personalising by departure airport increased response by 5 percent
  15. 15. Example of dynamic content insertion Presented by Grant Baillie of Argos at 2008 Email marketing conference,, with permisssion Tip. Change order of offers or features according to segment to increase relevance
  16. 16. Q. Which targeting factors give best response?
  17. 17. Farming segments <ul><li>Purchase behaviour: </li></ul><ul><ul><li>Buyer vs non-buyer </li></ul></ul><ul><ul><li>One-time vs multiple </li></ul></ul><ul><li>Email activity </li></ul><ul><ul><li>Active vs inactive clicker </li></ul></ul><ul><ul><li>Number of clicks on email </li></ul></ul><ul><li>Web activity </li></ul><ul><ul><li>Visited, never visited </li></ul></ul><ul><ul><li>Browsed, not bought </li></ul></ul><ul><li>Channel activity </li></ul><ul><ul><li>Web vs Store vs Catalogue </li></ul></ul><ul><li>RFM </li></ul><ul><ul><li>Proportional </li></ul></ul><ul><ul><li>Hard-coded </li></ul></ul><ul><li>Category purchased </li></ul><ul><li>Appending lifestyle data </li></ul><ul><li>Value </li></ul>
  18. 18. Using predictive modeling to nurture best customers <ul><li>Some variables used to identify “best” included: </li></ul><ul><ul><li>Total # of purchases </li></ul></ul><ul><ul><ul><li>The more the better </li></ul></ul></ul><ul><ul><li>Time on file </li></ul></ul><ul><ul><ul><li>The younger the better </li></ul></ul></ul><ul><ul><li>Months since first purchase </li></ul></ul><ul><ul><ul><li>The more the better </li></ul></ul></ul><ul><ul><li>Months since last purchase </li></ul></ul><ul><ul><ul><li>The less (or more recent) the better </li></ul></ul></ul><ul><ul><li>Total e-mails clicked on over the past year </li></ul></ul><ul><ul><ul><li>The more the better </li></ul></ul></ul><ul><ul><li>Total e-mails opened over the past year </li></ul></ul><ul><ul><ul><li>The more the better… though not always predictive </li></ul></ul></ul>
  19. 20. The eBay approach: segmentation layers
  20. 21. Targeting customers according to value Customer potential Customer quality high low low high One time shoppers with low potential Average customers Good customers Very good customers 15 % 15 % 60 % 10 % Indicators for customer quality Indicators for customer potential <ul><li>Order value per received catalogue </li></ul><ul><li>Order value per season </li></ul><ul><li>Gross margin in % of net sales </li></ul><ul><li>Returns in % of order value </li></ul><ul><li>Last date of purchase </li></ul><ul><li>Number of active seasons </li></ul><ul><li>Channel usage score </li></ul><ul><li>Number of different product categories </li></ul>Source: Chris Poad, Otto, E-consultancy masterclass 2006
  21. 22. Behavioural targeting
  22. 23. Exactly what is behavioural targeting? <ul><li>Event based. A set of individuals who do the same thing on a web site and therefore become a segment of individuals </li></ul><ul><li>Browsing behaviour. A set of individuals who have shown the same behaviour, for instance browsing the same website sections or pages or using similar paths to the website. </li></ul><ul><li>Email response behaviour. For instance, active vs inactive, openers, clicker non converters etc </li></ul><ul><li>Online purchase history. Buyers/non buyers, onetime buyer/multibuyers, loyal or transient, brand engaged or disengaged. </li></ul><ul><li>RFM  / RFV </li></ul>Matthew Kelleher – Redeye blog - http://www.redeye.com/blog
  23. 24. BT - It’s all about past actions… Purchase Dispatched +7d +14d +21d Recognition of previous purchase
  24. 25. Using subscription behaviour to set broadcast time Source: Econsultancy Innovation Report
  25. 26. <ul><li>Behavioural Email Dramatically Increases Online Conversion for Sainsbury's Bank </li></ul><ul><ul><li>RedEye followed up with behaviourally triggered email campaigns across Sainsbury’s Bank pet and car insurance products. </li></ul></ul><ul><ul><li>Utilising activity driven triggered emails in response to saved quotes and basket abandonment, RedEye analytics enabled Sainsbury’s Bank to recognise specific online behaviours, targeting emails in response to customer engagement in definitive areas of the site. </li></ul></ul><ul><li>Sainsbury’s Bank was delighted to record an unprecedented ROI of 750% across their pet insurance promotions. </li></ul>Source: case study
  26. 27. Need to segment and test follow-ups: William Hill example Source:
  27. 28. Basic registration triggered e-mails B2C brand education B2B registration follow-up
  28. 29. “ Learn more through time…”
  29. 30. Incentivising multichannel purchase
  30. 32. The Argos approach: Identifying “unfulfilled intent” Tip. Identify Next best “hero” product for each category
  31. 33. Parlez-vous RFM/V? 5 1 2 3 4 5 R ecency F requency M onetary 1 2 3 4 5 1 2 3 4 5 Each R decile contains 20% of all customers Recency : Time since customer completed an action e.g. click, visit, log-in, new purchase Frequency : Number of times action completed in period Monetary value : Amount transacted, average balance in period HIGHEST Lowest Note alternative term: Frequency Recency Amount Category = FRAC analysis 1 3 4 Phone E-mail/web only Direct mail
  32. 34. RF scoring example Source: Article by Mark Patron + Matthew Kelleher – Interactive Marketing journal – January to March 04 – SilverMinds music catalogue Scoring: Recency Low 1 = > 24months 2 = 19-24 months 3 = 13-18 months 4 = 7-12 months 5 = 0-6 months High Frequency Low 1 = One purchases 2 = Two purchases 3 = Three 4 = Four 5 = Five High Note here boundaries are defined to illustrate behaviour. There are a different number in each group
  33. 35. A RF(M) segmentation example for a theatre Booked 6+ more than a season ago Very rusty Booked 6+ last season Recent Booked 6+ events in current season Current subscribers   6+ (F) attended in 36+ months Very rusty twicer attended >12, < 36 months Rusty twicer attended < 12 months Recent twicer   Twicers (F) attended 36+ months (R) Very rusty oncers attended >12<36 months (R) Rusty oncers attended <12 months (R) Recent oncers Definition Oncers (F)
  34. 36. Q. How well are you using ‘Sense & Respond’ marketing Source, adapted from:
  35. 37. How Behavioural Email develops over time Entry level 5 - 8 triggers Medium level 17 – 30 triggers Upper level 20 – 50 triggers Nirvana 50 – 500 triggers Nursery program Site Activity program Full marketing email program Customer service emails Source: Customers Welcome email Behavioural Cross sell Regular marketing emails Site segmented Activity flagging RFM Predictive Lapsed / Churn By product Site down apology Birthday / Xmas Emails Repeat abandoner Future Release alert Back in stock alert Lapsed Activity Non cross sell Not returned in 14 days Not re-purchased in 14 days Process abandonment X-sell programme By product Newsletter Not transacted By content group visited Content triggers
  36. 38. More inspiring examples of touch strategies
  37. 39. Re-mailing to opening non-converters Response increases by 25% for campaign First Campaign, Open rate, 8 to 10% CCR = 0.2% Second Campaign, Open rate, 50 to 75% CCR = 0.2% Source: E-consultancy Masterclass - BCA Tip. Remind with multimessage campaigns
  38. 40. Reminder emails: Re-mailing with urgency Response increases by 40% for campaign First Campaign, CCR = 0.2% Second Campaign, CCR = 0.2% Source: E-consultancy Masterclass – BCA CCR = Campaign conversion rate
  39. 41. Combining Email with offline communications Combined response from e-mail and direct mail is 125% better than no e-mail. Response increases, 100% for direct mail piece. Source: E-consultancy Masterclass 2005 - BCA Pre-mail, with online response Teaser e-mail. No online response Direct Mail Direct Mail
  40. 42. Email Campaigns that Build… Welcome Email Time-limited offer Offer Extension
  41. 43. Example New account welcome: Email No. 1 Welcomes customers to their new account Product information welcomes customers to their new account Source: Forrester
  42. 44. Example Account usage: Email No. 2 Encourages customers to activate their Portfolio Management credit card Encourages customers to activate their Portfolio Management check card Source: Forrester
  43. 45. Example Cross-sell: Email No. 3 Cross-sell message: online banking Cross-sell message: Bill pay and online statements Source: Forrester
  44. 46. Example Up-sell: Email No. 4 Up-sell message: Personal loan and lines of credit Up-sell message: Home equity loan or line of credit with your mortgage Source: Forrester
  45. 47. 3 Creating a testing and optimisation plan for Email marketing
  46. 48. Q. How can I build in testing – Sixteen testing ideas <ul><li>Testing copy in e-mail headers – different subject lines and from addresses. </li></ul><ul><li>Making “Pre-headers” more persuasive </li></ul><ul><li>Different offers – does 10% discount or £50 off work best – it is usually the latter. Are secondary offers useful in elevating the overall response? </li></ul><ul><li>Different template layout designs </li></ul><ul><li>Timing of broadcast on different days of the week, times of day </li></ul><ul><li>Text vs HTML , Embedded versus linked images </li></ul><ul><li>Tone of voice in copy / personality of e-mail. </li></ul><ul><li>Long vs short copy </li></ul><ul><li>Calls-to-action (number and location of links) </li></ul><ul><li>Personalisation for targeting and dynamic messaging </li></ul><ul><li>Use of video and animation </li></ul><ul><li>Incorporating social media and customer involvement </li></ul><ul><li>Integration with other media (e.g. e-mail teaser before DM or response mechanism after DM). </li></ul><ul><li>Which newsletter or solus e-mail template is most effective? </li></ul><ul><li>Which frequency interval for a newsletter maximises revenue (while avoiding perceptions of SPAM) </li></ul><ul><li>Touch strategy for event triggered e-mail – which sequence of offers and intervals between them work best? </li></ul>
  47. 49. Using Eyetracking research to improve Email marketing <ul><li>Heading and subhead copy critical </li></ul><ul><ul><li>First 2-3 words most important </li></ul></ul><ul><ul><li>Make hyperlinked </li></ul></ul><ul><li>Large fonts work well </li></ul><ul><li>Images often missed </li></ul><ul><ul><li>Use text link calls-to-action </li></ul></ul><ul><li>Readers scan down the left of an E-mail </li></ul><ul><li>First part of para important </li></ul><ul><ul><li>F shape eyetrack </li></ul></ul><ul><li>Email intros skipped </li></ul><ul><ul><li>Use to personalise and engage e.g. with hyperlinks </li></ul></ul>Need to deliver` Scannability and Skimmability See www.etre.com
  48. 50. Which hypotheses could you test to optimize? i.e. which design elements will make a difference?
  49. 51. Response testing option A : Live split testing 50% of list: Subject Line 1 or Offer 1 Two or more alternatives are evaluated during broadcast 50% of list: Subject Line 2 or Offer 2 100% List http://www.company.com/promotion.htm?SL1O2
  50. 52. Q. Short or long subject lines - which are best?
  51. 53. Recommendation - Test alternate subject lines Split or live testing Subject line 1: “ Autumn offers start today - £20 cash-back” Open rate 23.4% Subject line 2: “ £20 cash-back this week only” Open rate 36.8% Subject line 1: “Travel is fun, not a high street trek” Open rate 39% Subject line 2: “A click away from all your foreign currency” Open rate 34% Source: HSBC Presented to MAD conference With permission
  52. 54. eBay treats Subject line optimisation seriously
  53. 55. Testing option B. AB pre-test for major campaign Test version A Send Volume: 10,000 Sample criteria: Random Click through rate: 6.1% Test version B Send Volume: 10,000 Sample criteria: Random Click through rate: 4.5% Main Broadcast Send Volume: 180,000 Click through rate: 5.8%
  54. 56. Test length – Which is best: short or long?
  55. 57. On the other hand… Tip. Tease (sometimes) Don’t give too much away in subject line or Email body
  56. 58. Test position and form of hyperlinks
  57. 59. Q. Are you using effective calls-to-action? <ul><li>Lorem ipsum dolor sit amet, consectetuer adipiscing elit. In eget nulla ac eros eleifend vestibulum. Aenean felis wisi, consequat vitae, dapibus sed, nonummy a, lorem. Sed fringilla. Phasellus pellentesque neque vel leo. Sed pretium risus a lacus. Nulla ipsum. Click here! , Vivamus erat urna, porttitor et, blandit aliquet, lacinia id, orci. Phasellus vitae mauris. Curabitur tristique, turpis at fringilla ultrices, mi dui consectetuer nibh, id condimentum ipsum magna in dolor. Quisque imperdiet. Curabitur dui. Sed augue. Curabitur imperdiet. </li></ul>Use Action Verbs : Get a Quote Register now Make images clickable : Optimise for organic search in anchor text i.e. Not click here for your car insurance quote But, Get an instant car insurance quote now ! Make Hyperlinks long and buttons larger : I am an easier to click than me ! Fitts law states that “ Time to reach a target with mouse is proportional to the distance to the target divided by the size of the target ”. Use Hyperlinks : Within body copy
  58. 60. Integrated hyperlinks: email best practice
  59. 61. Highlight your offer with a “Johnson box”
  60. 62. Using the passcode as a response activator Combining simple web form and ‘Exclusive’ code encourages click through and conversion to site. Prospects do not enter payment details Conversion rate is three times higher than sites without passcode. Source: E-consultancy Masterclass 2005 - BCA
  61. 63. Copyable offer code
  62. 64. Test video
  63. 65. http://www.rei.com/email/gearmail/gm022709_vid.html http://www.retailemailblog.com/2009/03/am-inbox-reis-embedded-animation-video.html
  64. 66. Make your emails social! <ul><li>Web 2.0 = Participation + Interactivity + dialogue : </li></ul><ul><li>Creation of user generated content – users can comment on blogs or upload videos and are updated by feeds. </li></ul><ul><li>Rating of content and online services – social bookmarking services such as deli-cious and Traceback comments on some blogs. </li></ul><ul><li>Mashups – Different types of content are merged, for example YouTube videos or Google Maps can be integrated into a web site. Widgets or gadgets can be integrated into users home pages on social networks or personalised home pages like Netvides or iGoogle ( www.google.co.uk/ig ). </li></ul>
  65. 70. Optimise your “pre-headers”!
  66. 71. Make your Emails mobile
  67. 73. Q. Are you getting the tone right?
  68. 74. Bonus! Optimisation case study – Audible.co.uk Acquisition Retention Conversion 5%  in acquisitions 5%  in revenue; 40% better with M/F split Email sales  25% Source: Thanks to Louis Wahl, Marketing Director at www.audible.co.uk
  69. 75. Audible.co.uk Campaign targeting matrix
  70. 76. Acquisition Email <ul><li>Sent to new leads, daily </li></ul><ul><li>Two test offers – ’30-day Free Trial’, ‘£6.99 per month’ </li></ul><ul><li>Targeted by gender </li></ul><ul><li>Limited to first send only </li></ul><ul><li>High open rates </li></ul>Acquisition
  71. 77. Retention – dynamic container <ul><li>Sent to members and customers, weekly </li></ul><ul><li>Targeted by customer status </li></ul><ul><li>A la Carte vs AudibleListener </li></ul><ul><li>Repeat sending to opening, non-purchasers </li></ul><ul><li>25% more conversions than single send </li></ul>
  72. 78. Conversion – reactivation - dynamic <ul><li>Sent to dormants, at ‘end of life cycle’ </li></ul><ul><li>A/B tested against other generous offers </li></ul><ul><li>Best performing offer sent to bulk </li></ul><ul><li>Repeat sending to opening, non-purchasers </li></ul><ul><li>Male vs Female </li></ul>
  73. 79. Discussion and Q & A <ul><li>Format – Split into groups to discuss how to make these types Behavioural marketing successful: </li></ul><ul><ul><li>1. Welcome strategies </li></ul></ul><ul><ul><li>2. Re-engagement strategies </li></ul></ul><ul><ul><li>3. Targeting based on past behaviour </li></ul></ul><ul><li>Please discuss key issues / questions which will govern success, e.g. frequency, personalisation, testing </li></ul><ul><li>Report back at …. with: </li></ul><ul><ul><li>Best practice recommendations and examples of approaches </li></ul></ul><ul><ul><li>Questions </li></ul></ul>
  74. 80. Retail <ul><li>Gather softer information initially e.g. “how savvy with product” clicks populate database – according to product / vertical </li></ul><ul><li>Accelerated first offer – First welcome email has strong offer to segment - danger of extended offers </li></ul><ul><li>Apology emails </li></ul><ul><li>Service emails e.g. password for reactivation </li></ul><ul><li>Basket abandonment – ask why – provide phone messages – give main reasons </li></ul>
  75. 81. Financial Services <ul><li>1 Enewsletters in FS have to be info-led – need consistent format to highlight products and call-to-action </li></ul><ul><li>2 Cross-sell upsell in service emails? Using store&save of quote information email </li></ul><ul><li>3 Basket abandonment – review all steps – include relevant information </li></ul>
  76. 82. Travel <ul><li>Reactivation example: </li></ul><ul><ul><li>Inactives tested </li></ul></ul><ul><ul><li>Leave fallow </li></ul></ul><ul><ul><li>Send single email – do you want to hear from us? </li></ul></ul><ul><ul><li>Ultimate goal to avoid fallow </li></ul></ul><ul><li>Welcome example: </li></ul><ul><ul><li>Asking product interests and timing of holiday </li></ul></ul><ul><ul><li>Then test 6-8 initial emails for right frequency </li></ul></ul>
  77. 83. <ul><li>Please complete the feedback forms </li></ul><ul><li>Download presentation: </li></ul><ul><ul><li>www.davechaffey.com/presentations </li></ul></ul><ul><li>Any questions, any time, do e-mail me: </li></ul><ul><ul><li>[email_address] </li></ul></ul><ul><li>Subscribe to my E-marketing Essentials, monthly briefing in What‘s New in Digital Marketing </li></ul><ul><ul><li>www.davechaffey.com /blog </li></ul></ul><ul><li>Stay in contact through: </li></ul><ul><ul><li>www.twitter.com/DaveChaffey </li></ul></ul><ul><ul><li>www.linkedin.com/in/davechaffey </li></ul></ul>Thank you!