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HOW TO BOOST EMAIL
MARKETING PERFORMANCES
30 MINUTES




food for thought doing permission
marketing




2
BUILDING CUSTOMER-CENTRIC RELATIONSHIPS




3
Most important KPI:
                 CPnO   (Cost Per new Customer)



                 CLTV    (Customer Life Time Value)




4    1/28/2013            Teradata Confidential
WHY CARE ?




       10.000.000.000



Bankrupt webshops
2012 # 55
6   1/28/2013   Teradata Confidential
Repeat buy?


    E-COMMERCE                                              MAILORDER CATALOGUE
    ORDER           NUMBER     REBUY             ACCUM.            UTILIZATION   NUMBER
    REBUY           ACCUM.   UTILIZATION




7       1/28/2013                          Teradata Confidential
10% Loyalty improvement
                                                       conv. To
                                          CpC           buy %           CpO

    Today                            €          0,40     1,8      €        22,22
    Future                           €          0,40     1,8      €        22,22

Reference numbers for the customer (BEFORE)
                     Re-buy              CpO      Basket              Margin       Margin €      Contribution
1st buy                          €         22,22 € 51,00               40%       €     16,73         €     -5,49
2nd buy                   35%                                                                        €      5,85
3rd buy
4th buy
                          45%
                          50%
                                              10% = 38% Value                                        €
                                                                                                     €
                                                                                                            2,63
                                                                                                            1,32
5th buy                   70%
                                              20% = 81% Value                                        €      0,92
Total direct contribution after 5 buys (CLTV)        € 5,23
                                              30% = 2,3X Value
Reference numbers for the customer (AFTER 6 MTH)
                     Re-buy              CpO      Basket              Margin         Margin €    Contribution
1st buy                          €         22,22 € 51,00               40%       €       16,73       €     -5,49
2nd buy                  38,5%                                                                       €      6,44
3rd buy                  49,5%                                                                       €      3,19
4th buy                  55,0%                                                                       €      1,75
5th buy                  77,0%                                                                       €      1,35
Total direct contribution after 5 buys (CLTV)                                                        € 7,24




8            1/28/2013                                                  Teradata Confidential
Business value = Loyalty



                   5X

                   4X
    Repeat buy




                   3X

                   2X

                   1X


                             Customers

9                1/28/2013    Teradata Confidential
Pre-condition for
     professionel email
         marketing


10   1/28/2013   Teradata Confidential
Value of email permissions?

• Dutch webshop – b2c
• Data source: new customers in Q4 -11 and Q1 – 12
• No segmented or behavioural marketing


                        Permission                    Non-permission
 1. time buy          100%      100                 100%         100
 2. buy               46%        46                  30%          30
 3. buy               56%        26                  50%          15
 4. buy               74%        19                  61%          9
 5. buy               93%        18                  80%          7
                                207                              161


     Value of email permission, before ”real” email marketing -
                                         28%
11        1/28/2013                   Teradata Confidential
From Newsletter to Campaign mail




     1:all                                  1:1




12      1/28/2013   Teradata Confidential
Email marketing


Key email marketing
discipline must be managed
and applied to succeed




                                                           Permission and
                                                               send
• Email deliverability: Capacity
                                                           Deliverability
  timing, right speed
  Whitelisting, reputation etc                                 Open
• Email open: Personalization,                                              DATA
                                                               Click
  timing, subject line
• Conversion: Relevance and                                      €
  appealing (based upon
  buying/click history)


 13   1/28/2013                    Teradata Confidential
Email marketing


     Data integration




 Automatic processes




14        1/28/2013     Teradata Confidential
Data, data,data



     INTEREST       1. TIME BUY   ESTABLISHED                  LOYAL       REACTIVATED


                                                            DON´T MISS
                                  BE THE FIRST              IT!            WE MISS YOU!
                                  Segmented
                                  TO…!
                    THANK YOU
                    FOR           behavioural                       Antichurn
                     Feedback
                    CHOOSING…!
                                                                   reaktivering
         Lead
        nuturing
     SAFE & EASY!




15    1/28/2013                     Teradata Confidential
Automatisering er et “must”

       Segmented
         PUSH

          1:N




      Opt-In                                                                                                      Opt-Out
                        Prospect        1st Buy             2nd Buy                Established   Premium




                  WF:              WF:            WF:                   WF:                WF:             WF:
                  Sign-up          Honey Moon     1st-Timers            Loyalty            Aborted         Browsed in
                  Capture          Turning        Feedback              offers             purchase        high value
                  leads            prospects      mails &                                                  product areas
                                   into           follow-up
                  onsite
                                   customers      incentive
      1:n/1:1
       PULL




                                   WF:            WF:                   WF:                WF              RFM:
                                   Birthday       Tell a                Up-Selling         Local shop      Reactivation
                                                  friend                and Cross          offers          Mails
                                                                        Selling                            60 days
                                                                                                           90 days
                                                                                                           180 days

                 WorkFlows – automated                                                      Retargeting campaigns



 16             1/28/2013                                  Teradata Confidential
Case Study – Mediherz.de




                                          • German online pharmacy
                                            Customers /month 25.000
                                          • 56 employees




17   1/28/2013    Teradata Confidential
Data driven campaigns improved result 5x



                                                              Click stream campaigns
     Number of orders




                                 Gender, age                                           543
                                 and prescription



                                                     242
                               100



                        Push - mail     Segmented                      Behavioural

18               1/28/2013                     Teradata Confidential
halfords - automated and highly personalized messages to drive
 second purchase




                                  Challenge
                                  Increase second purchase rate of customers through
                                  cross-selling other products

                                  Solution
                                  •Storage and synchronization product catalog and
                                  Product recommendations in the Digital Marketing
                                  Cloud

                                  •Integration with Bazaarvoice for compelling product
                                  review data to enrich the message

                                  •Complete automation by dynamic assembly of email
                         Results  templates
                               Open rates increased 129%
                               Sales conversions up 45%

 19   1/28/2013               Teradata Confidential

19
Sony increased sales conversions by 5% using customer
product reviews


                         Challenge


                         • Increase traffic to the Sony online store
                         • Use product review data to drive online conversions
                         • Promote sales of specific products according to business needs

                         Solution

                         • product promotional email campaign using customer reviews content
                         • Match Reevoo reviews content to products using Cloud+ / related data
                         • Cross-sell opportunities identified driving customers along the sales
                           funnel
                         Results

                         • Increase in traffic to Sony website
                           bringing prospects closer to the product
                         • 81% of shoppers utilise customer reviews
 20   1/28/2013                 Teradata Confidential

                         • 5% uplift in sales conversions                                      e
21   1/28/2013   Teradata Confidential
Data driven
                                         marketing
                                         = KPI




22   1/28/2013   Teradata Confidential
KPI could be

                        today          6 months            12 months
     CpO - Google             8                    7,50       7,00
            Affiliate       7,25                   7,00       6,75
            ……..
     Repeat buy -
        1. to 2. buy        25%                    35%        50%
        2. t0 3. buy        45%                    58%        65%
     ………
     Permission %
          email             65%                    70%        75%
          SMS               10%                    15%        18%
     Conversion %
         Direct            2,1%                   2.4%        2,6%
         Shop              1.1%                   1.3%        1.4%
         Call center       3.0%                   1.5%        1.1%
     email open rate        19%                    23%        26%
     email click rate       12%                    20%        22%
     …..
     CLTV (after x          22                       25        30
     mth)


23         1/28/2013               Teradata Confidential
get a balance in marketing spending?




     Lead generation activities




                     Nurturing activities


                  Loyalty /retention activities

24    1/28/2013                    Teradata Confidential
Summary – 7 Points



                                     Budget


                    KPI
                 Follow-up                            Permission


                                     CLTV

                 Dedication
                                                       Data &
                 & Passion
                                                      Integrat.
                                     System




25   1/28/2013                Teradata Confidential
Make a plan

                                          30                                 100                            180
                 Quick-wins               Days   Next Generation                 Days                        Days
Værdi/Resultat




                                                                                         Lift off
                                                 Campaigning                             Business



                 ROI-Acceleratorer:

                 - Profil data
                 - Welcome mail
                 - Feedback mail                                                        Advanced campaigns:
                 - Birthday e-mail etc.
                                                 Segmenteret & Trigger                  Abandon basket
                                                 kampagner:                             - Click stream campaigns
                                                                                        - 1:1 recomendations
                                                 - Click stream segmented               - Facebook feed
                                                 - Me too offers                        - Reactivation campaigns
                                                 - Bounce handling
                                                 - …...
                                                                                        Lift off
                                                                                        Business
                                                                                                               Tid
      26              1/28/2013                          Teradata Confidential
THANKS FOR LISTENING




Per John Jensen          Follow us
Northern Europe

T +45 29 61 33 03
@ p.jensen@ecircle.com

Slagterhusgade 10        www.ecircle.com
1715 København V



   27       1/28/2013                      Teradata Confidential

                                                                   eC

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How to boost e-commerce ROI with digital marketing & data - Webwinkel Vakdagen 2013

  • 1. HOW TO BOOST EMAIL MARKETING PERFORMANCES
  • 2. 30 MINUTES food for thought doing permission marketing 2
  • 4. Most important KPI: CPnO (Cost Per new Customer) CLTV (Customer Life Time Value) 4 1/28/2013 Teradata Confidential
  • 5. WHY CARE ? 10.000.000.000 Bankrupt webshops 2012 # 55
  • 6. 6 1/28/2013 Teradata Confidential
  • 7. Repeat buy? E-COMMERCE MAILORDER CATALOGUE ORDER NUMBER REBUY ACCUM. UTILIZATION NUMBER REBUY ACCUM. UTILIZATION 7 1/28/2013 Teradata Confidential
  • 8. 10% Loyalty improvement conv. To CpC buy % CpO Today € 0,40 1,8 € 22,22 Future € 0,40 1,8 € 22,22 Reference numbers for the customer (BEFORE) Re-buy CpO Basket Margin Margin € Contribution 1st buy € 22,22 € 51,00 40% € 16,73 € -5,49 2nd buy 35% € 5,85 3rd buy 4th buy 45% 50% 10% = 38% Value € € 2,63 1,32 5th buy 70% 20% = 81% Value € 0,92 Total direct contribution after 5 buys (CLTV) € 5,23 30% = 2,3X Value Reference numbers for the customer (AFTER 6 MTH) Re-buy CpO Basket Margin Margin € Contribution 1st buy € 22,22 € 51,00 40% € 16,73 € -5,49 2nd buy 38,5% € 6,44 3rd buy 49,5% € 3,19 4th buy 55,0% € 1,75 5th buy 77,0% € 1,35 Total direct contribution after 5 buys (CLTV) € 7,24 8 1/28/2013 Teradata Confidential
  • 9. Business value = Loyalty 5X 4X Repeat buy 3X 2X 1X Customers 9 1/28/2013 Teradata Confidential
  • 10. Pre-condition for professionel email marketing 10 1/28/2013 Teradata Confidential
  • 11. Value of email permissions? • Dutch webshop – b2c • Data source: new customers in Q4 -11 and Q1 – 12 • No segmented or behavioural marketing Permission Non-permission 1. time buy 100% 100 100% 100 2. buy 46% 46 30% 30 3. buy 56% 26 50% 15 4. buy 74% 19 61% 9 5. buy 93% 18 80% 7 207 161 Value of email permission, before ”real” email marketing - 28% 11 1/28/2013 Teradata Confidential
  • 12. From Newsletter to Campaign mail 1:all 1:1 12 1/28/2013 Teradata Confidential
  • 13. Email marketing Key email marketing discipline must be managed and applied to succeed Permission and send • Email deliverability: Capacity Deliverability timing, right speed Whitelisting, reputation etc Open • Email open: Personalization, DATA Click timing, subject line • Conversion: Relevance and € appealing (based upon buying/click history) 13 1/28/2013 Teradata Confidential
  • 14. Email marketing Data integration Automatic processes 14 1/28/2013 Teradata Confidential
  • 15. Data, data,data INTEREST 1. TIME BUY ESTABLISHED LOYAL REACTIVATED DON´T MISS BE THE FIRST IT! WE MISS YOU! Segmented TO…! THANK YOU FOR behavioural Antichurn Feedback CHOOSING…! reaktivering Lead nuturing SAFE & EASY! 15 1/28/2013 Teradata Confidential
  • 16. Automatisering er et “must” Segmented PUSH 1:N Opt-In Opt-Out Prospect 1st Buy 2nd Buy Established Premium WF: WF: WF: WF: WF: WF: Sign-up Honey Moon 1st-Timers Loyalty Aborted Browsed in Capture Turning Feedback offers purchase high value leads prospects mails & product areas into follow-up onsite customers incentive 1:n/1:1 PULL WF: WF: WF: WF RFM: Birthday Tell a Up-Selling Local shop Reactivation friend and Cross offers Mails Selling 60 days 90 days 180 days WorkFlows – automated Retargeting campaigns 16 1/28/2013 Teradata Confidential
  • 17. Case Study – Mediherz.de • German online pharmacy Customers /month 25.000 • 56 employees 17 1/28/2013 Teradata Confidential
  • 18. Data driven campaigns improved result 5x Click stream campaigns Number of orders Gender, age 543 and prescription 242 100 Push - mail Segmented Behavioural 18 1/28/2013 Teradata Confidential
  • 19. halfords - automated and highly personalized messages to drive second purchase Challenge Increase second purchase rate of customers through cross-selling other products Solution •Storage and synchronization product catalog and Product recommendations in the Digital Marketing Cloud •Integration with Bazaarvoice for compelling product review data to enrich the message •Complete automation by dynamic assembly of email Results templates Open rates increased 129% Sales conversions up 45% 19 1/28/2013 Teradata Confidential 19
  • 20. Sony increased sales conversions by 5% using customer product reviews Challenge • Increase traffic to the Sony online store • Use product review data to drive online conversions • Promote sales of specific products according to business needs Solution • product promotional email campaign using customer reviews content • Match Reevoo reviews content to products using Cloud+ / related data • Cross-sell opportunities identified driving customers along the sales funnel Results • Increase in traffic to Sony website bringing prospects closer to the product • 81% of shoppers utilise customer reviews 20 1/28/2013 Teradata Confidential • 5% uplift in sales conversions e
  • 21. 21 1/28/2013 Teradata Confidential
  • 22. Data driven marketing = KPI 22 1/28/2013 Teradata Confidential
  • 23. KPI could be today 6 months 12 months CpO - Google 8 7,50 7,00 Affiliate 7,25 7,00 6,75 …….. Repeat buy - 1. to 2. buy 25% 35% 50% 2. t0 3. buy 45% 58% 65% ……… Permission % email 65% 70% 75% SMS 10% 15% 18% Conversion % Direct 2,1% 2.4% 2,6% Shop 1.1% 1.3% 1.4% Call center 3.0% 1.5% 1.1% email open rate 19% 23% 26% email click rate 12% 20% 22% ….. CLTV (after x 22 25 30 mth) 23 1/28/2013 Teradata Confidential
  • 24. get a balance in marketing spending? Lead generation activities Nurturing activities Loyalty /retention activities 24 1/28/2013 Teradata Confidential
  • 25. Summary – 7 Points Budget KPI Follow-up Permission CLTV Dedication Data & & Passion Integrat. System 25 1/28/2013 Teradata Confidential
  • 26. Make a plan 30 100 180 Quick-wins Days Next Generation Days Days Værdi/Resultat Lift off Campaigning Business ROI-Acceleratorer: - Profil data - Welcome mail - Feedback mail Advanced campaigns: - Birthday e-mail etc. Segmenteret & Trigger Abandon basket kampagner: - Click stream campaigns - 1:1 recomendations - Click stream segmented - Facebook feed - Me too offers - Reactivation campaigns - Bounce handling - …... Lift off Business Tid 26 1/28/2013 Teradata Confidential
  • 27. THANKS FOR LISTENING Per John Jensen Follow us Northern Europe T +45 29 61 33 03 @ p.jensen@ecircle.com Slagterhusgade 10 www.ecircle.com 1715 København V 27 1/28/2013 Teradata Confidential eC

Editor's Notes

  1. OutlineAdding consumer reviews to websites is known to generate an uplift in conversions. Sony are partners with ReeVoo who currently provide review content to Sony’s websites. Some of the following statistics are demonstrated by ReeVoo: “81% of online shoppers use consumer reviews in their purchasing process. ““Ratings and reviews content at key conversion points lifts your rates by an average of 11%.”“Trust builds consumer confidence and reduces risk. That leads to a 5% lift in average order values.”ReeVoo content has occasionally been inserted into HTML email campaigns, but this is currently a manual process whereby a snapshot of information is transferred into a static message.ChallengeTo gather a weekly feed of review information from ReeVoo, apply business rules defined by Sony, and dynamically populate positive content into lifecycle messages.Solution Collect all of ReeVoo’s Sony content via a weekly XML feedImport this into a Cloud+ DB and format ready for use in email.Code an HTML message with business rules to select specific content from the imported feed (example, Find 3 X BluRay players with score 7 or more).Insert these dynamic messages into an existing lifecycle programme. ResultsThis was the first time ReeVoo content had ever been integrated with live email. No established method had been written regarding putting their content into mails.French TV Lifecycle messages were the first to be integrated. After 1 month, a TV purchaser will receive customer reviews for 3 X BlueRay players and 3 X Home Theatre systems, all with positive scores. The project has to be changed slightly during build, and was therefore delivered slightly later than expected, however, it was delivered on budget, and is not in the process of being rolled-out to all Sony’s territories supported by ReeVoo.