When an 83-year-old direct marketing company serving 120 million households starts firing on all digital cylinders, there are a lot of legacy databases, media channels and customer relationships to unify. Silver Star Brands is the pioneer in customized cards and merchandise (Miles Kimball, Walter Drake catalogs), and their VP of Marketing will explore how she is tracking the impact of email across both online and offline marketing programs – from catalog and e-commerce activity to display advertising and search. How is one of the newest forms of marketing personalization – the in-box – driving omnichannel performance for one of the inventors of personalized anything.
2. The Beginning
1934 + $500 “Johnson” Minneapolis
• Catalog circulation 70m+
• Spend about $360k a week in postage
• Database of over 26m buyers
3. Miles Kimball Email Stats
3
2015 2016
Customer Service Emails 0 1.6 million
Marketing Emails 103 million 134 million
Triggered Emails 6 million (48% of $) 5.8 million (42% of $)
Ad hoc Emails 97 million (52% of $) 127 million (58% of $)
Ad hoc versions 550 467
Value of an Email Address $9.75 $10.50
4. Email and Catalog Stream Test
4
Email Only Catalog & Email
Response Rate 27% 81%
AOV -15% -8%
Revenue 1% 56%
Marketing Cost per Recipient -97% 3%
Total Marketing Return on Investment
Revenue (Revenue less Marketing Costs) 84% 106%
Performance compared to Catalog Only
5. Expanding the Value of an Email
Email Email Sales
5
Traffic Collect Email Email Sale
6. Value of Search / PLAs
• Value of an email is $10.50, search brought in 250K subs, value of
those subs is $2.6 million
• Search demand = $4.2 million with A/S of 25%
• Search + email value ($2.6 million) = $6.8 million with A/S of 16%
6
Target A/S Spend Revenue
Search Without Including the Value of Email 16% $64 $400
Search Including the Value of Email 16% $100 $625
7. Expanding the Value of an Email
Digital Traffic Abandon / Browse
Email Sale
7
8. Value of Onsite Triggers
• For every 100,000 visitors, 10,000 convert (10% conversion)
• 90,000 abandon
• 18,000 receive a browse or abandon cart email = 360 orders / $12,600 revenue
• 9,000 received a now on sale, back in stock or low inventory email = 45 orders /
$1,575
8
100,000 Visitors
$2k
45 orders
$12.6k
360 Orders
Remarket with Browse or
Abandon Cart emails
18,000
Remarket with Back in
Stock, Low Inventory or
Now on Sale emails
9,000
Abandon
90,000
Buy
10,000
9. Value of Onsite Triggers
• What happened in holiday?
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2,135,000 Visitors
$34k
1,000 orders
$269k
7,700 Orders
Remarket with Browse or
Abandon Cart emails
384,000
Remarket with Back in
Stock, Low Inventory or
Now on Sale emails
192,000
Abandon
1,922,000
Buy
213,000
10. Expanding the Value of an Email
Pricing Strategy Digital Traffic Collect Email
10
Abandon / Browse
11. Price Testing in Product Listing Ads
Decreased price on key items to match the market price in PLAs
• Results:
• Page views of the items tested increased 95% during the timeframe of
the price test
• Increased email sign-ups and remarket email opportunities
• Orders for the items in the test increased 63%
• 60% of customers who purchased a price test item through PLA’s were
new to file, up 30% from prior year
• Digital orders = email subscribers
11
12. Email Display Test (YLM)
• Matched segments – avg lift of 113% ($420K)
• Catalog - 91%
• Email – 158%
• Other (Web) – 147%
• Reactivation Stats
• Orders (Unmatched 9,150; Onboard Only 18,243; All 27,393)
• Email Signups xxx?? (calculate based on our current avg subs
through cart?)
12
Display Traffic Sale
Display Traffic Email Reactivation
13. Key Learnings
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Drive Sales
• Incorporating value of email into calculating ROI on other digital
channels
• Email triggers to close the deal on other onsite behaviors
Email Capture
• Display tests to reactivate lapse email customers
• Price testing to increase traffic from PLA’s and drive incremental
email sign-ups
14. Email and Catalog Stream Test Continued
Results by Test Cell: Catalog Only Email Only Catalog & Email
Recipients 43,855 41,075 41,035
Conversion Rate 2.4% 3.1% 4.3%
Converted 1,055 1,254 1,783
AOV 41.62$ 35.50$ 38.48$
Revenue 43,910$ 44,513$ 68,609$
Revenue per Recipient 1.00$ 1.08$ 1.67$
Total Marketing Cost 19,998$ 520$ 19,231$
Marketing Cost per Recipient ($.456 per catalog and $.85 per thousand emails) 0.46$ 0.01$ 0.47$
Total Marketing Return on Investment (Revenue less Marketing Costs) 23,912$ 43,994$ 49,378$
Total Marketing Return on Investment per Person 0.55$ 1.07$ 1.20$
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15. Email and Catalog Stream test
• Adding a catalog to an email stream lifts conversion from 3.1% to
4.3% (a 42% increase)
• Alternatively, adding email messages to a catalog lifts conversion
from 2.4% to 4.3% (an increase of 81%)
• The “Catalog and Email” combination segment produced the most
revenue and total marketing ROI due to significantly higher
conversion rates than other test cells
• The “Email Only” segment produced the more total marketing ROI
per person than the “Catalog Only” segment (also due to
conversion)
• The “Catalog Only” segment produced the highest AOV, the these
relatively high AOV results are not enough to compensate for the
relative underperformance on conversion
15
16. Search / CSE
• AMO (Paid Search management tool)
• Of total search and CSE traffic, 13% sign up for emails.
• Clicks (traffic)- 1,934,698
• Signups – 256,380
• Omniture
• Of email sign ups, search and CSE make up 28.3%
• Of search and CSE visits, 1.4% sign up for emails
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17. On Site triggers
• Abandon Shopping Cart
• X% of total Trigger circ
• X% of total Trigger demand
• Sales per email mailed
• Browse
• X% of total Trigger circ
• X% of total Trigger demand
• Sales per email mailed
• Now on Sale
• X% of total Trigger circ
• X% of total Trigger demand
• Sales per email mailed
• Back in Stock
• X% of total Trigger circ
• X% of total Trigger demand
• Sales per email mailed
17
18. Value of Onsite Triggers
• For every 100,000 visitors, 10,000 convert (10% conversion)
• 90,000 abandon
• 18,000 receive a browse or abandon cart email = 360 orders / $12,600 revenue
• 9,000 received a now on sale, back in stock or low inventory email = 45 orders /
$1,575
18
100,000 Visitors
$2k
45 orders
$12.6k
360 Orders
Remarket with Browse or
Abandon Cart emails
18,000
Back in Stock
9,000
Abandon
90,000
Buy
10,000
Editor's Notes
Needs some flair.
Maybe a picture of silos or piggy backs
NOTE: Contains animation
Possibily missing about how much by phone, digital, . Put next
Lets talk about one of the brands. To look at the size. And change year over year.
YoY differences … lots more emails
Less versions, but they are more productive
Don’t look at these channels in isolation
Add some highlights. Circle stuff
Hyposthsis: Could we stop sending catalogs to people who are active in the email file? Email is cheaper, should be more profitable.
EML expense is so much cheaper compared to catalog. And to add an email to the catalog cust is basically $0
Describe the test: 3 groups. Email only. Catalog only. Catalog and email
AOV could be driven by product mix, not the test. Ex/ more clearance online
We tend to think of email just as sales.
But what if you count traffic as a goal, that then leads to sales
Email strategy can’t just be about email last click revenue. It needs to include a strategy for driving traffic to the website and a strategy for collecting email addresses.
What happens when you look at email outside of a vacuum.
What do you think when you combine with catalog?
Well, how about PLAs. Then abandon and browse
Picked 100k because it’s easy to comprehend
In reality, here is what Q4 looks like with the actual number of vistiors and the rest factored out.
Back it up the food chain.
So now, look at pricing. How do you drive traffic?
We made a concerted effort to drive traffic