Waterloo Shopify June Meetup - Klaviyo
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Klaviyo's presentation on email best practices according to a data collected from over 2 billion emails sent.
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Waterloo Shopify June Meetup - Klaviyo
- 8. International vs Domestic Time Zone Purchaser vs non-purchaser Viewed Product Inactive vs active
- 10. Abandoned cart WinbackBrowse abandonment Welcome series1. 2. 4.3. Automated Email Flows
- 12. Abandon Cart Emails 1. Structure 2. Creative
- 13. 1st Abandon Cart Email The Reminders: Delight customers with.. shocked expressions cute sadness absurdity 1-2 hours
- 14. 2nd Abandon Cart Email The Incentive: Drive action with.. unique discounts complimentary items free shipping 24 – 48 hours
- 15. 3rd Abandon Cart Email The Last Chance: Create urgency via.. expiration date scarcity countdown timer 4 – 5 days
- 16. Full Abandon Cart Flow Reminders Incentive Last ChanceNew Customer? YES NO
Editor's Notes
- Intro Hi everyone my name is Parker McMahon, I work on the Partner Marketing team at Klaviyo. Klaviyo is a marketing automation platform, originally built for ecommerce, we give companies the power to use their data to drive relevant messaging to their customer base which increases sales. We’re longtime partners (and fans) of both Shopify and Shopify Plus. We thank both of them for the opportunity to be here speaking with you tonight. To get the information I’ll present on today, our team at Klaviyo analyzed over 1 ½ billion emails sent from over 1000 different ecommerce businesses during Q4 of 2016. From this analysis we gained several key insights into successful email marketing -- I’ll share these insights with you as well as some examples -- after that we’ll have some time at the end for Q&A, if you don’t ask me then you can catch me here after the presentation.
- Before we talk about the secrets for making money with email we have to understand the importance of email... What role does it play in a company's success? We all know email makes money. But how much? Does anyone here know -- In the ecommerce industry -- What is the average percentage of a company’s annual revenue attributed to email? ¼ CORRECT! we found that, as an industry average, about 25% of revenue comes from email alone. To start our analyses we focused on revenue generated by email and we immediately noticed that when you segment by company size it starts to get interesting.
- When we split up companies by their annual revenue we noticed a trend of smaller companies sourcing a smaller percentage of their Q4 revenue than larger companies. On the far ends, companies with under 100K annual rev made ⅕ of their Q4 revenue from email while companies with $10+ million annually sourced NEARLY A THIRD of their Q4 revenue from email! Additionally Larger companies were getting more Revenue Per Recipient than smaller. So the next question was why?
- We found that the keys to success were in segmentation and automation.
- Segmentation in email marketing is slicing up your customer base into smaller groups so you can send them content that is more tailored to their interests.
- And we know segmentation is one of the keys because when we looked at the total ammount of segments used in larger companies versus smaller -- there was a huge gap. On average, companies over $10 Mil were breaking their customer base into well over 100 different segments while smaller companies were sticking around in the 10’s 20’s and 30’s. Now I know what you’re thinking… “Obviously larger companies have more segments since they have more customers -- this doesn’t prove the effecacy of segmentation” well we thought the same thing….
- So we took a different look at our sample -- we completely removed the size of company and strickly looked at the performance of highly targeted emails that went out to a specific segment of a customer base (25% or less) versus campaigns that were not sent to a specific segment, mass blasts that went out to 75% or more. Again, company size aside, the resulting open rate, clickthrough rate and average rev per recipient shows us that segmentation is key to success. So remember this when you hear someone talking about “as long as you send to enough people you will do well”
- A great real-world example of applying segmentation is Nomad -- A company in California that provides ruggedized electronics. Nomad segments their customers by.. International vs. domestic: Since some of Nomad’s incentives, like free shipping, are only available to domestic customers Purchasers vs. non-purchasers: which helps them include stronger incentives for first time buyers. Time Zones: So that Nomad can optimize their delivery by landing emails in customer’s inbox at optimal times across the globe Viewed Products: This data lets Nomad retarget customers on Facebook using Klaviyo’s integration with Custom Audiences. And lastly -- Engagement: Nomad uses flows to re-engaged inactive subscribers, or customers who haven’t opened an email in the past 120 days.
- So along with segmentation our automation is also key to your email marketing success. For a free level up shirt can anyone tell me some key reasons for using automation? Correct: it also... Saves your time - less manual work Increases speed -- Deliver at the right time for customer Makes more money - marketing that sends itself for you Scale -- do more with limited manpower Long story short -- There’s a lot of reasons to use automation in your business
- In email marketing some of the most common types of Automation or “Flows” as we call them are… Welcome series: or emails you send to new customers Abandon carts: or emails you send to folks who make a cart and leave your online store without buying Browse abandonment: or emails you send to folks who were simply browsing your products but never bought or added to a cart. Winback: or emails you send to reengage customers who have been inactive for a long period of time. For a t-shirt can anyone tell me which of these Flows generates the most revenue? (Abandon Cart) Correct and infact as an industry standard -- 7 out of every 10 online shopping carts are abandoned today.
- We took our 1 ½ billion emails and we broke them down by the type of flow to see which ones were making the most money. As you can see Abandon carts took the cake with one exception, smaller orders under $50 were dominated by the welcome series. Focus on when your in the buyer cycle that’s why your welcome series is a strong performer -- Strike while the iron is hot One of the facts we found to be really impressive was that abandon cart emails for orders over $200 made an average of $14 per recipient! Not bad for email that sends itself. So -- Since Abandon carts were so successful we thought we’d share some examples with you today..
- Shocked expressions. Finding images of shocked expressions is pretty easy and they’re eye catching. The caption for your image can be something simple, such as “Wait! Where did you go? Cute sadness. Think big cartoon-ish, doe eyes. The kind of image that evokes a sense of vulnerability and makes someone want to go “awwww.” Absurd. And lastly, you could throw a complete curve ball and lead with an image that seems unrelated to your business. You know those Old Spice ads?
- Shocked expressions. Finding images of shocked expressions is pretty easy and they’re eye catching. The caption for your image can be something simple, such as “Wait! Where did you go? Cute sadness. Think big cartoon-ish, doe eyes. The kind of image that evokes a sense of vulnerability and makes someone want to go “awwww.” Absurd. And lastly, you could throw a complete curve ball and lead with an image that seems unrelated to your business. You know those Old Spice ads?