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1. Email and Social Media: Proven Strategies for Driving Revenue and New Customer Acquisition September 17, 2010 Kristin Hersant, VP of Corporate Marketing, StrongMail Twitter: @kristinhersant
3. Today, Buyers Rely on Influencers for Purchase Decisions Point of Purchase Corporate Domain Advertising, Print, Web and TV Direct Mail Email Search
4. Today’s Customers Identify whichcustomers are active on the Social Web PotentialInfluencers Key Influencers Target the most valuable potential Influencers Motivate Key Influencers to extend your brand via social channels, multiplying program reach and increasing overall program performance. Tomorrow’s Customers Strategic Approach to Social Referral Campaigns
6. New Customer Acquisition Case Study Campaign Objective: Acquire new Mint.com users at little or no cost. Campaign Strategy: Email to engaged users asking them to recommend Mint.com to their friends. Tap into social media networks to facilitate referrals. Key Metrics Tracked: Open rate, percent of users inviting friends, percent of friends becoming users. Definition of Success: Less than $1 CPA
8. Test Social Motivators Mint.com launched an Influencer program designed to drive new user registrations. Ran an A/B Test using three different offers: A free iPod Early Access to a Beta Nothing (Control Group) The Winner deployed to the remainder of the list.
19. Tips for Getting Started Identify your best customers Hint: They’re already in your email database Test different incentives to motivate them to share on your behalf Hint: It’s not always discounts, cash or free items that drive the best referrals Launch a referral marketing campaign using email and social media Hint: Use technology that makes it easy to share in social channels Capture that information in your customer database for future remarketing Hint: Social CRM is coming… start building a foundation today
The folks at Neilsen hypothesized that the consumption of social media actually decreases email use – and they set out to prove it, breaking internet users in to four groups – three focused on varying levels of social media usage and a fourth group that did not use social media at all – then they overlayed email usage and discovered that their hypothesis was wrong. In fact, the more engaged a person was with social media the more heavily they consumed email. This intersection of highly engaged email and social media users tend to be more active online, generating reviews, recommendations and comments in forums. We refer to this segment as influencers – a term that you will hear frequently at social media marketing events.
CSN Stores is an online discount retailer that had previously launched a referral effort for driving new members to their loyalty program which did not perform as anticipated. StrongMail identified an opportunity to socialize the effort and re-launch the program. Not only were they looking to drive participation in the loyalty program but to also drive incremental revenue through these new members. The program was conceived as follows: existing members were asked to refer their friends to the rewards program – and if their friends joined and made a subsequent purchase the existing customer would receive a 15 dollar credit to their existing rewards account – for each friend. And if they are able to drive 5 new customer purchases, another 75 dollars would be deposited resulting in up to 150 dollars to be earned.
The results were impressive. CSN has realized a 3x lift in performance over previous attempts to launch a referral campaign. On average the program has generated 1 new member for every 1.8 invitations sent with 10% of those new members going on to complete a purchase.They saw an 80% lift in total click-throughs from email and social sharing activity, and their influencers sent 4.3 emails on average per person.
So to wrap this up, I’d like to leave you with several tips for getting started….
