SlideShare a Scribd company logo
Transforming retail 
into me-tail 
Jonny Dixon 
Global Ecommerce Channel Manager 
22nd September 2014
The growth of online 
• Offline vs Online 
• Standardization vs Humanization 
• The Aim 
2012 2017 
33% 
Report email contributes 
most to online purchases 
Custora.com, 2014 
16% 
Increase in ROI from 
2012 to 2013 
DMA, 2014 
$49 
Average B2C ROI on 
email marketing spend 
DMA 2014 
What is shopping?
Integrating email with other channels 
Leveraging dynamic content 
Leveraging segmentation 
Managing email frequency and cadence 
Increasing open click-through rates 
57% 
50% 
43% 
38% 
38% 
Source: Forrester, 2013 
Top challenges in email
Insight noun 
The capacity to gain an accurate and deep 
intuitive understanding of a person
Purchase 
Segment and automate 
based on what people 
purchase 
Feedback 
Use the data your 
customers provide you 
to make the right 
decision 
Social 
Use publically available 
data to find out who they 
are 
Email 
Are your customers 
opening, clicking or 
converting? 
Browse 
Understand what people 
are looking at but 
not necessarily buying
Segmentation & Personalization 
• Treat people differently 
– Friends, Family & Strangers 
– Tailor the experience 
– Make people feel special 
39% 
Email revenue was from 
segmented emails 
DMA, 2014 
51% 
Higher CTR from 
personalized triggers 
EmailInsider, 2014 
10x 
Better performance from 
triggered emails 
EmailInsider, 2014
Customer 
Segments 
Best Customer 
VIP Customer 
Big Spenders 
Splurgers 
Win Back Customers 
Loyal Customers 
Customers Location 
New Customers 
Almost Lost 
People Who Purchase 
Carts Containing 
Failed Cart Recovery 
Freq. Low Value Customers 
Bargain Hunters 
Sale Only Shoppers 
Non-Sale Shoppers
• Stand out from the crowd 
• Consider your persona 
• Always add value & build trust 
A 5% increase in retention yields profit 
increases of 25 to 100% 
Source: Bain & Company, 2013 
ROR – Return on relationship
Seize the opportunity online 
• Welcome Programs / Account Registration 
• Browse / Cart Abandonment 
• Transactional Emails / Post Purchase Feedback 
• Replenishment / Re-engagement
Start a conversation 
• First interaction 
• Account creation 
• Multi step welcome 
54% 
Average open rate across 
3 step welcome series 
Cabbages & Roses
Abandoned Browse 
• Include recommended products 
• Ensure the email arrives within 
an hour 
• Use urgency 
• Highlight value 
• Use clear and large product 
imagery 
• Make sure your mobile optimized 
• Include customer service contact 
details
Cart Abandonment 
• Send within the hour 
• Include the cart 
• Use dynamic content 
• Serve recommendations 
68% 
Average cart 
abandonment rate 
Baymard.com, 2014
Transactional Emails 
• Customer service 
• Change imagery and style 
• Build personality of brand 
• Cross sell but make sure 
you add value
Feedback 
• Ask questions 
• Service & Satisfaction 
• Social advocacy 
• Make it useful
Replenishment and 
Re-engagement 
• Use Magento! 
• Identify the right products 
• Add Value & Content 
• Multi-step and branched 
67% 
More spent on avg by 
repeat customers vs new
Takeaways
Takeaways 
1. Integrate! 
Get your Magento data syncing with your ESP – quick! 
2. Segment and Personalize 
Define your default segments 
3. Automate 
Multi step welcome, abandoned cart, re-engagement
Think BIG, start small, scale quickly 
• Time and Resource is not an excuse 
• Time to Test 
• Optimization
Any questions? 
Jonny Dixon 
jonny.dixon@dotmailer.com 
@jonnydotdixon 
@dotmailer 
#MMNY14

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Transforming retail into me-tail. Jonny Dixon

  • 1. Transforming retail into me-tail Jonny Dixon Global Ecommerce Channel Manager 22nd September 2014
  • 2. The growth of online • Offline vs Online • Standardization vs Humanization • The Aim 2012 2017 33% Report email contributes most to online purchases Custora.com, 2014 16% Increase in ROI from 2012 to 2013 DMA, 2014 $49 Average B2C ROI on email marketing spend DMA 2014 What is shopping?
  • 3. Integrating email with other channels Leveraging dynamic content Leveraging segmentation Managing email frequency and cadence Increasing open click-through rates 57% 50% 43% 38% 38% Source: Forrester, 2013 Top challenges in email
  • 4. Insight noun The capacity to gain an accurate and deep intuitive understanding of a person
  • 5. Purchase Segment and automate based on what people purchase Feedback Use the data your customers provide you to make the right decision Social Use publically available data to find out who they are Email Are your customers opening, clicking or converting? Browse Understand what people are looking at but not necessarily buying
  • 6. Segmentation & Personalization • Treat people differently – Friends, Family & Strangers – Tailor the experience – Make people feel special 39% Email revenue was from segmented emails DMA, 2014 51% Higher CTR from personalized triggers EmailInsider, 2014 10x Better performance from triggered emails EmailInsider, 2014
  • 7. Customer Segments Best Customer VIP Customer Big Spenders Splurgers Win Back Customers Loyal Customers Customers Location New Customers Almost Lost People Who Purchase Carts Containing Failed Cart Recovery Freq. Low Value Customers Bargain Hunters Sale Only Shoppers Non-Sale Shoppers
  • 8. • Stand out from the crowd • Consider your persona • Always add value & build trust A 5% increase in retention yields profit increases of 25 to 100% Source: Bain & Company, 2013 ROR – Return on relationship
  • 9. Seize the opportunity online • Welcome Programs / Account Registration • Browse / Cart Abandonment • Transactional Emails / Post Purchase Feedback • Replenishment / Re-engagement
  • 10. Start a conversation • First interaction • Account creation • Multi step welcome 54% Average open rate across 3 step welcome series Cabbages & Roses
  • 11. Abandoned Browse • Include recommended products • Ensure the email arrives within an hour • Use urgency • Highlight value • Use clear and large product imagery • Make sure your mobile optimized • Include customer service contact details
  • 12. Cart Abandonment • Send within the hour • Include the cart • Use dynamic content • Serve recommendations 68% Average cart abandonment rate Baymard.com, 2014
  • 13. Transactional Emails • Customer service • Change imagery and style • Build personality of brand • Cross sell but make sure you add value
  • 14. Feedback • Ask questions • Service & Satisfaction • Social advocacy • Make it useful
  • 15. Replenishment and Re-engagement • Use Magento! • Identify the right products • Add Value & Content • Multi-step and branched 67% More spent on avg by repeat customers vs new
  • 17. Takeaways 1. Integrate! Get your Magento data syncing with your ESP – quick! 2. Segment and Personalize Define your default segments 3. Automate Multi step welcome, abandoned cart, re-engagement
  • 18. Think BIG, start small, scale quickly • Time and Resource is not an excuse • Time to Test • Optimization
  • 19. Any questions? Jonny Dixon jonny.dixon@dotmailer.com @jonnydotdixon @dotmailer #MMNY14

Editor's Notes

  1. 6000 clients across 150 countries New York, UK & Europe 15 years old this year Started as ecommerce agency building ecommerce sites for 14 years fully focused email service provider but we understand ecommerce own ecommerce platform Magento Silver SI So we don’t just think email, we think ecommerce and how to make the most of the email channel. Focus email marketing automation for retail…
  2. We tend to use the word shopping in an offline capacity but ‘buying’ online. So what is shopping… Its an experience, something you do with friends, your partner – it gets you excited or envokes emotion. *personal example* It’s a brand opportunity – luxury retailer serving champagne or the abercrombie and fitch example. It’s a chance to connect, the ultimate personal experience. ‘Hi how can I help you today’, 1 to 1 personalization with shop assistants on call. But think about the contrast of ‘buying online’ – it’s a very standardized process. AMAZON example, checkouts all the same. But shops don’t do this – they see value in creating difference experience all together. Online standardization is not a bad thing – server speeds, UX layouts etc but are we becoming to robotic. We need to think about humanizing the experience. So this is the aim. Turn online retail more into me-tail. And we can start to do this through other channels and today email will eb the focus.
  3. I wanted to quickly look at this forrester report of the biggest challengers faced in email marketing. You can see that it is no longer about open and click through rates or managing frequency. But focus is on integrating other channels and leveraging this data for things like dynamic content. However, Magento makes this easy. There are ESPs out there with integrations that can do this for you. And the more data we have the more effective our email marketing becomes….
  4. So once we can integrate we need to think about the word Insight. The capacity to gain an accurate and deep intuitive understanding of a person. What insight can we gain to help us humanize our communication?
  5. If we look at what insight is available to us then we can start to think how we can utilize this to our advantage. For me there are 3 key areas to focus on here. Purchase, Feedback and Browse data. Purchase – the ability to segment and automate based on what people purchase. Feedback – starting to use the data they give you to make sure they like what they are getting! Browse – not everyone makes a purchase. If we can understand browse better it gives us the tools to make them purchase! Browse is interesting to, take abandoned cart emails, very common. But do people consider the fact that the products in the basket may not have actually been the last ones they looked at?
  6. Treat people differently. Use segmentation effectively Friends, Family & Strangers – we treat them differently and would expect the same Starbucks example Regular customers vs new customers Be more friendly with repeat customers Build the relationship with new customers Tailor the experience Customer journey Would you trawl through 100s irrelevant products in a shop? Use email to direct them to what they are interested in. Use Product Recommendations Bring these into email Be clever‘ Abandoned cart may not be the ones they looked at last! Make people feel special Use Unique Coupon codes at unique times one on the house - Feel valued + higher engagement
  7. Many customer segments out there and these will differ business to business, but here is a snap shot of the types of segment you need to start thinking about. But We often worry about ROI when we should also be considering ROR…
  8. ROR – build the relationship online, it will provide a return in the longer term. Stand out from crowd Think about: Who you are? Why are you different? What are your selling points? Are you communicating this and is it helping forge relationships? Consider your persona How do you train your staff? – shop assistants train a lot. Do your copywriters get the same, do they understand the human side to the brand Copy & Style, tone of voice we react to how people talk to us, or how they look and behave. Old age VS young teenager Use the data to personalise the conversation and make people feel valued Look for opportunities to bring personality! – Unsubscribe link Add Value Customers not just an ID. Real people – consider their feelings & needs – don’t just sell, add value.
  9. So lets look into some practical examples of how we can start putting all of this into practice.
  10. So to come back to the idea of humanization and treating people differently. First up – the first point of contact, welcome/account creation Make sure your newsletter welcome email is not identical to the account creation email. Consider this in a store. Leaving your email address at the counter is very very different from signing up and registering a store account! With account emails we should educate them about the benefits of shopping with you. Your returns and delivery policies. If you have different customer groups then explain how they can move up the ladder? Say thank you – be polite, Prompt for additional information? Humanization – its normal to interact and keep the conversation going! Multi Step
  11. Abandoned browse is an often under utilized channel of communication but the fact is it will result in conversions. To make the most of this though it is important to consider the following Include recommended products – make it useful, the reason they abandoned may well have been because they couldn’t find what they wanted! Ensure the email arrives within an hour – otherwise it risks becoming irrelevant! Make sure you attempt to recapture that sales before someone else does! Use urgency – give the customer a reason to come back and purchase quickly. Use messaging around stock availability to increase urgency. Highlight value – highlight additional value you offer. If you offer free returns then the risk becomes much less. So shout about it! Use clear and large product imagery – ultimately imagery is what sells online so make sure the product images are large enough! Make sure your mobile optimised – a lot of browsing is done on mobile devices these days so ensure that any follow up emails are also mobile optimised! Include customer service contact details – there may have been a reason they abandoned, they may have questions they cant find the answers to. So include customer service details to help them find the answers.
  12. Send within the hour Include the cart contents – remind people what they are missing out on! Dynamic content- freshen things up, 10x purchaser vs brand new or guest Recommendations – products in the basket may not be what they last looked at!
  13. Transactional emails Highest open rates oof all email – who doesn’t open order confirmations? Great opportunity to build the brand. Seasonal imagery Personality, dynamic content based on most valuable customers? Humanize! Cross sell but also add value. Delivery, returns information, customer service details etc. Think about adding value
  14. Themselves: DALE CARNEGIE – ‘The most important thing someone can hear is their own name’ Ask questions; people want to give you information… Ask at relevant times In real life you don’t ask 100 questions in one go! Use behaviour not just explicit data – people telll you want they want you to hear Make it useful – great feedback then turn them into social advocates Bad feedback – well think about getting customer services to call them? Humanize
  15. Magento has all this data – better opportunity than offline! You know what they bought and when they bought You don’t get this in a store – once they leave, they’ve gone. Look to identify key products that lend themselves to replenishment. Face cream example But also add value… if you have products with hints and tips, send them guides, additional content Thin kabout multi step programs – branch out based on what you know.
  16. There are other providers out there – im not going to say we are the only ones… just the best at it! ;) Segments – what are the key segments for you. General segments and work down from there. Is it gender? Average order value? Do you have two ranges or lines – both different values? Personalize and think about ROR…. Relationshops -- Another coined phrase for you!! Automate Do the easy ones first… but do them well. Sit back and watch the money roll in!
  17. Dotmailer mantra 52 weeks in a year 40 hours a week. Spend 1-2 hours every week on something new. First week – 2 hours of planning! Go back, see how things are working and tweak. Optimize
  18. Have you got any tips or ideas for building email lists? Survey, pop over capture Promote an online contest like a free giveaway, and have entrants sign up or submit with their email address.  Print/SMS campaigns Social/Facebook Use transactional emails/post purchase Social sharing/forward to a friend links Viral campaigns With all of this would you not end up sending too much email? / How do you ensure you are not spamming customers? Interestingly email is one of the only marketing channels where we are told to do less of it! If you think about all other forms of marketing, getting your message/brand out there – generally we cant do enough! So we need to stop worrying about sending too much email… email is one of the least intrusive mediums, the subscriber is in control and email is easy to delete. However, we need to be smarter, more emails that are relevant and suitably different is a good thing, if you send someone 2 emails you have 2x the chance to get someone to convert! But consider the types of email and use behaviour to ensure the same type of email is not reaching the customer at the same time, build in rules around their recent opens and only send email if its relevant. If my ESP doesn’t integrate and automatically pass the data across, what can I do? These days it is crucial you do have a fully integrated solution – the amount of time this will save you in the long run will far outweigh any initial costs to buy into a platform that does the heavy lifting for you. However, there is always the manual export function. Check what data you can export manually and what you can use. Typically date fields are the ones needed for any form of automation but ensure you align your trigger scheudle with the time you export and import data, i.e. it would be no good if you ha da trigger doing 2 days after purchase if you only exported and imported every 5 days!