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.

1. E-mail Marketing Masterclass 28 th April 2009 Dr Dave Chaffey www.davechaffey.com/blog www.davechaffey.com/presentations

2. The biggest challenge in Email marketing?

3. Today’s topic: improving engagement

8. Benchmark your Email capabilities! Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission

9. 1 Measuring engagement

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. 2 Which are the best targeting variables?

14. easyJet.com example Source: Brand Republic Email marketing conference Personalising by departure airport increased response by 5 percent

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. Q. Which targeting factors give best response?

20. The eBay approach: segmentation layers

22. Behavioural targeting

24. BT - It’s all about past actions… Purchase Dispatched +7d +14d +21d Recognition of previous purchase

25. Using subscription behaviour to set broadcast time Source: Econsultancy Innovation Report

27. Need to segment and test follow-ups: William Hill example Source:

28. Basic registration triggered e-mails B2C brand education B2B registration follow-up

29. “ Learn more through time…”

30. Incentivising multichannel purchase

32. The Argos approach: Identifying “unfulfilled intent” Tip. Identify Next best “hero” product for each category

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

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

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)

36. Q. How well are you using ‘Sense & Respond’ marketing Source, adapted from:

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

38. More inspiring examples of touch strategies

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

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

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

42. Email Campaigns that Build… Welcome Email Time-limited offer Offer Extension

43. Example New account welcome: Email No. 1 Welcomes customers to their new account Product information welcomes customers to their new account Source: Forrester

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

45. Example Cross-sell: Email No. 3 Cross-sell message: online banking Cross-sell message: Bill pay and online statements Source: Forrester

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

47. 3 Creating a testing and optimisation plan for Email marketing

50. Which hypotheses could you test to optimize? i.e. which design elements will make a difference?

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

52. Q. Short or long subject lines - which are best?

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

54. eBay treats Subject line optimisation seriously

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%

56. Test length – Which is best: short or long?

57. On the other hand… Tip. Tease (sometimes) Don’t give too much away in subject line or Email body

58. Test position and form of hyperlinks

60. Integrated hyperlinks: email best practice

61. Highlight your offer with a “Johnson box”

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

63. Copyable offer code

64. Test video

65. http://www.rei.com/email/gearmail/gm022709_vid.html http://www.retailemailblog.com/2009/03/am-inbox-reis-embedded-animation-video.html

70. Optimise your “pre-headers”!

71. Make your Emails mobile

73. Q. Are you getting the tone right?

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

75. Audible.co.uk Campaign targeting matrix