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How to Leverage Customer Data to Optimize Your Email Campaign - Wayne Carrigan


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How to Leverage Customer Data to Optimize Your Email Campaign

This session will outline an Email optimization framework to help marketers enhance the performance of their emails and email marketing programs. Marketers will hear how to conduct extensive analysis of customers' behaviors as well as leverage this data to form a strong foundation of all online (and offline) campaigns.

* Wayne Carrigan, Executive Vice President, Thindata 1:1

Published in: Education, Business, Technology
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How to Leverage Customer Data to Optimize Your Email Campaign - Wayne Carrigan

  1. 1. July 7, 2010 Wayne Carrigan, Executive Vice President Optimizing Your Email and Email Marketing Strategies
  2. 2. AN OVERVIEW <ul><li>A new kind of digital and database marketing agency </li></ul><ul><ul><li>Leverage customer insights </li></ul></ul><ul><ul><li>Marketing automation technologies </li></ul></ul><ul><ul><li>Cross-channel expertise </li></ul></ul><ul><li>Founded in 1995 </li></ul><ul><li>Team of 170+ marketing professionals </li></ul><ul><li>Offices in Toronto, New York, Chicago and Salt Lake City </li></ul><ul><li>Tier 1 Technology Platform </li></ul><ul><li>Canada’s #1 Email Marketing Company (ESP) </li></ul>
  3. 3. <ul><li>North America’s sixth largest printing company and operates out of multiple offices in Canada, U.S. and Mexico. </li></ul><ul><li>A leading publisher of consumer magazines, French-language educational resources, community newspapers, and digital publishing through more than 120 Web sites. </li></ul><ul><li>12,500 employees in Canada, the United States and Mexico and reported revenues of C$2.3 billion in 2009. </li></ul><ul><li>Thindata 1:1 resides within the Marketing Communications Sector which provides advertising services and marketing products </li></ul>TRANSCONTINENTAL
  4. 4. <ul><li>Some of the most recognized brands in the world have selected Thindata 1:1 to be their marketing partner. </li></ul>INDUSTRY LEADERS
  5. 5. AGENDA
  6. 6. AGENDA <ul><li>Purpose of this session </li></ul><ul><li>Metrics and Relevance </li></ul><ul><li>A Framework in Action </li></ul><ul><ul><li>Part One: Performance Analysis </li></ul></ul><ul><ul><li>Part Two: Testing </li></ul></ul><ul><ul><li>Part Three: Creative Audit </li></ul></ul>
  7. 7. Purpose
  8. 8. PURPOSE <ul><li>1) Increase the performance of your email marketing campaign </li></ul><ul><li>2) Stay ahead of your competitors </li></ul><ul><li>3) Increase engagement with your customers </li></ul>
  9. 9. THE FRAMEWORK <ul><li>Why a framework… </li></ul><ul><ul><li>Save time/expense </li></ul></ul><ul><ul><li>Scale to different/more programs </li></ul></ul><ul><ul><li>Compare outputs </li></ul></ul><ul><ul><li>Put into action </li></ul></ul><ul><ul><li>Leverage current data </li></ul></ul><ul><ul><li>Demonstrate return </li></ul></ul>
  10. 10. The Power of Email 86% are maintaining or increasing the size of their email marketing budget
  11. 11. The Power of Email <ul><li>ROI : Email marketing generates an ROI of $43.52 (DMA) </li></ul><ul><li>Lead Generation : Email produced the highest response rates (4.09%) for those companies whose primary objective was to generate leads. (Habeas) </li></ul><ul><li>Trust in Email : 67% of respondents prefer email as a communications channel over other online vehicles (Datran) </li></ul><ul><li>Media Buy : 80% of Marketers report email is the strongest performing media buy -- ahead of Search Marketing and display marketing (Datran) </li></ul>
  12. 12. Metrics and Relevance
  13. 13. Use of Email Metrics The focus remains on Clickthrough, Open and Delivery
  14. 14. Email Metrics Delivered, opens, clicks, conversions, complaints, unsubscribes Process Metrics (Email Diagnostics) Forwards, shares with social, cross-channel conversion Influence Metrics Questions, complaints, critique, frustration, problems, praise Feedback Metrics ROI, AOV, LTV, Share of customer, measurement against business objectives Contribution Metrics
  15. 15. Metrics vs. Analysis Metric-Driven Email Reports Behaviour-Driven Email Analysis Common Elements Focus Application Requirements Opens, delivery, clicks, and bounces. Recency, Frequency, Lifetime Monetary Value, Seasonality, Tenure What are people doing? Why are people doing what they are doing? Reactive and tactical Proactive and strategic Software for counting An actionable framework
  16. 16. The Focus on Relevance <ul><li>Recognition of the need for Relevance spans companies of all sizes </li></ul>
  17. 17. The Basis for Relevance <ul><li>Content delivered based on user behaviours is not leveraged </li></ul>
  18. 18. The Framework in Action
  19. 19. Optimized Email/Email Campaign Data-Driven Performance Analysis Testing Creative Audit Email Optimization Framework The Framework
  20. 20. Part One: Performance Analysis <ul><li>Client: Loyalty Co. </li></ul><ul><ul><li>Nation-wide loyalty program </li></ul></ul><ul><ul><li>5 Million+ members </li></ul></ul><ul><ul><li>100+ offices across Canada </li></ul></ul><ul><ul><li>Sends two email newsletters </li></ul></ul><ul><ul><li>500,000+ email per month </li></ul></ul><ul><ul><li>Consistently high open rates (30%+) </li></ul></ul><ul><ul><li>Consistent click rates (5~9%+) </li></ul></ul><ul><ul><li>Main source of revenue: annual/tiered subscription </li></ul></ul><ul><li>Exceptional, right? </li></ul><ul><li>But, what questions do these metrics raise? </li></ul>
  21. 21. Part One: Performance Analysis <ul><li>Stage 1: Collect historical data </li></ul><ul><ul><li>One year’s worth of data </li></ul></ul><ul><ul><li>Opens, clicks, bounces (and conversions) </li></ul></ul>Stage 2: Conduct Wear-out Analysis <ul><li>Initial contact analysis; and Tenure VS New subscribers </li></ul>1st Email Sent 2nd Email Sent 3rdEmail Sent 4th Email Sent 5th Email Sent Open Rate Click–Through Rate
  22. 22. Part One: Performance Analysis Stage 3: Conduct Recency analysis <ul><ul><li>Identifies lapsed subscribers </li></ul></ul><ul><ul><li>Look for “gaps” when people drop-off </li></ul></ul><ul><ul><li>Provides insights about timing to re-engage with subscribers </li></ul></ul>In Current Month 1-2 Months Ago 3-11 Months Ago 12+ Months Ago/ Never Proportion of Customers who Last Opened Email Sent to Them Proportion of Customers who Last Clicked a Link in Email Sent to Them
  23. 23. Part One: Performance Analysis <ul><li>Stage 4: Conduct Frequency of clicks analysis </li></ul><ul><li>Stage 5: Conduct Monetary value analysis </li></ul><ul><ul><li>Seasonality analysis </li></ul></ul>10-12 of the Emails Sent 4-9 of the Emails Sent 1-3 of the Emails Sent None of the Emails Sent Proportion of Customers who Opened in Past Year Proportion of Customers who Clicked-Through in the Past Year
  24. 24. Part One: Performance Analysis <ul><li>Stage 6: Layer Account Information </li></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Purchase history </li></ul></ul><ul><ul><li>Expressed preferences </li></ul></ul><ul><li>Stage 7: Develop Meaningful Segments </li></ul><ul><ul><li>Leverage knowledge to develop personnas </li></ul></ul><ul><ul><li>Reflect the relevant distinctions </li></ul></ul><ul><ul><li>Recency/Frequency/Monetary/Seasonality (and Tenure) </li></ul></ul>
  25. 25. <ul><li>Stage 8: Develop Contact Schedule </li></ul><ul><ul><li>For each segment: </li></ul></ul><ul><ul><ul><li>Type of content </li></ul></ul></ul><ul><ul><ul><li>Frequency </li></ul></ul></ul><ul><ul><ul><li>Areas that require testing </li></ul></ul></ul>Part One: Performance Analysis
  26. 26. Part One: Performance Analysis <ul><li>Contact Strategy </li></ul><ul><li>Customize content based on past purchase behaviour, click-throughs and preference centre </li></ul><ul><li>Contact Strategy </li></ul><ul><li>Test subject lines </li></ul><ul><li>Drive inactive customers to a Preference Centre to determine desired frequency, interests </li></ul><ul><li>Consider Sun-setting program </li></ul>Tenure < 12 months & opened and clicked Tenure < 12 months & Did not open or click Tenure>=12 months & 1-3 opens and clicks Tenure>=12 months & 4-12 opens and clicks Never opened or clicked New, Engaged Customers New, Disengaged Customers Longer Tenure, Low Engagement Customers Longer Tenure, Engaged Customers Inactive Customers <ul><li>Contact Strategy </li></ul><ul><li>Move into Retention program </li></ul><ul><li>Customize content based on past purchase behaviour, click-throughs and preference centre </li></ul><ul><li>Contact Strategy </li></ul><ul><li>Implement Testing Strategy </li></ul><ul><li>Customize content based on past click-throughs </li></ul><ul><li>Build customer profiles, including desired frequency and interests </li></ul><ul><li>Contact Strategy </li></ul><ul><li>Reduce the number of emails sent to this segment </li></ul><ul><li>Send email only during peak periods </li></ul><ul><li>Implement Testing Strategy </li></ul><ul><li>Customize content based on past click-throughs </li></ul>35% 26% 19% 11% 9%
  27. 27. Optimized Email/Email Campaign Data-Driven Performance Analysis Testing Creative Audit Email Optimization Framework The Framework
  28. 28. Part Two and Three: Testing/Creative Audit TEST A TEST B Maintain control groups Tests must be statistically relevant Control Test Test only one element or variable at a time Conduct tests at the same time S M T W TH F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Control
  29. 29. Testing Guidelines <ul><li>Prioritize testing opportunities based on performance analysis </li></ul><ul><li>Give yourself a realistic goal (one test per month) </li></ul><ul><li>Keep it simple </li></ul><ul><ul><li>A/B splits to start </li></ul></ul><ul><li>Always test any major departure from your current strategy </li></ul><ul><li>Where to start </li></ul><ul><ul><li>Subject line </li></ul></ul><ul><ul><li>Graphics—size, type of image </li></ul></ul><ul><ul><li>Call to action—soft sell, hard sell, buy online, call </li></ul></ul><ul><ul><li>Links—text, buttons, underlined text </li></ul></ul><ul><ul><li>Offer </li></ul></ul><ul><ul><li>Copy </li></ul></ul><ul><ul><li>Layout </li></ul></ul><ul><ul><li>“ From” name </li></ul></ul><ul><ul><li>Text font and color </li></ul></ul><ul><ul><li>Content </li></ul></ul><ul><li>Progress into multivariate testing </li></ul>
  30. 30. Appetite for Testing Marketers are building testing budgets into their email campaigns
  31. 31. Probability of Acquisition = low No prominent exposure to newsletter subscription Review of Homepage Part Two and Three: Testing/Creative Audit
  32. 32. Allows only for one subscription at a time. Review of Preference Centre and Subscription Process <ul><li>Difficult user experience: </li></ul><ul><li>Sign-up page is buried in the site </li></ul><ul><li>Two call-to-action buttons causes confusion - “Sign Up Now” and “Next Step” </li></ul><ul><li>Recommendations: </li></ul><ul><li>Home Page Sign-up generates the highest opt-in numbers </li></ul><ul><ul><li>Provide a simple value statement and call to action </li></ul></ul><ul><ul><li>Add email subscription point to other high-level pages </li></ul></ul><ul><ul><li>Include a link to the Privacy Policy </li></ul></ul><ul><li>Only collect data relevant for immediate use. Additional profiling data can be acquired over time. </li></ul>Part Two and Three: Testing/Creative Audit
  33. 33. Part Two and Three: Testing/Creative Audit <ul><li>Challenges: </li></ul><ul><ul><li>Many topic areas </li></ul></ul><ul><ul><li>No clear call to action </li></ul></ul><ul><ul><li>Offer strategy lacking </li></ul></ul><ul><ul><li>Email very lengthy </li></ul></ul><ul><ul><li>All recipients receive same email </li></ul></ul><ul><ul><li>Difficult to navigate </li></ul></ul><ul><ul><li>Ineffective use of preview pane </li></ul></ul>
  34. 34. Newsletter Re-Developed Part Two and Three: Testing/Creative Audit
  35. 35. Preference Centre: Re-Developed Part Two and Three: Testing/Creative Audit
  36. 36. Program Re-Developed <ul><li>Content Strategy : </li></ul><ul><li>What the newsletter program about… </li></ul><ul><li>Educate and inform members of various services and product available to them. Allow each business line to have an opportunity to showcase services and benefits. </li></ul><ul><li>Allow members to see member savings and value and build to loyalty (LoyaltyCo Dollars). </li></ul><ul><li>A great introduction that leads the way into the regular email newsletter program and sets expectations for emails to come. </li></ul>Week 1 Week 2 Week 3 Part Two and Three: Testing/Creative Audit
  37. 37. Optimized Email/Email Campaign
  38. 38. <ul><li>Summary of Key Stages </li></ul><ul><li>Use Performance Analysis results to identify areas for Testing and Creative Audit </li></ul><ul><li>Review all online (and offline) subscription points for performance and consistency </li></ul><ul><li>Review competitors’ subscription processes and offerings </li></ul><ul><li>Flesh out content strategy for email program </li></ul><ul><li>Flesh out contact strategy for email program </li></ul><ul><li>Develop a wireframe </li></ul><ul><li>Design, code and copy-write emails </li></ul>Part Two and Three: Testing/Creative Audit
  39. 39. Optimized Email/Email Campaign Data-Driven Performance Analysis Testing Creative Audit Email Optimization Framework The Framework
  40. 40. ACQUIRE CONVERT GROW RETAIN REACTIVATE MINIMAL VISIBILITY MODERATE VISIBILITY OPTIMAL VISIBILITY Optimized Email/Email Campaign Website Subscription Centre Contests / Promo Data Acquisition Strategies Online Membership Join Offline Opt-in (In-Store & Magazine Tactics) Complete Profile & Welcome Program Referral Program Opt-out Exit Survey Newsletter #1 Lapsed Program Post-Transactional Flyer Email Program Newsletter #2 Product specific Targeted Program Triggered Alerts Off Line Membership Join New to Province X Program
  41. 41. Discussion Wayne Carrigan Executive Vice President 1.866.361.3522 x247 [email_address] Jim Mahoney Business Development Executive 1.866.361.3522 x384 [email_address]