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Improving Traditional Email Marketing


• Make every email count

• More data equals better targeting predictive power

• More channel data variety equals better targeting predictive
  power
Results: Increased Click-Thru Rates


    Original           Big Data and
   Campaign            Machine Learning

    3.3M emails            3.4M emails




                                 60%



      35K clicks               57K clicks
Opportunity Analysis



                 Emails   Clicks
Original         3.3M     35K      Traditional data mining and intuition
Campaign                           based rules
Big Data         1.5M     37K      55% fewer emails for same clicks
Optimizing for
email volume
Big Data         3.4M     57K      60% more clicks for same emails
Optimizing for
Revenue
Optimizing Daily Deal Email

  Model propensity to convert for each user on each category
  Matrix of Scores: 3.1 Million Members x 568 Categories




                 Offer 1       Offer 2   Offer 3     …         Offer N

    User 1         0.01         0.05       0.02                  0

    User 2         0.2          0.01       0.03                  0.4

    User 3         0.03          0          0                   0.01
      :
  User 3.1M        0.02         0.5        0.1                  0.01
Optimizing Daily Deals Email




              Offer 1    Offer 2   Offer 3       …     Offer N

  User 1        0.01       0.05     0.02                  0

  User 2     0.4 0.2     0.2
                           0.01     0.030.03          0.010.4
           Offer N      Offer 1        Offer 3       Offer 2
  User 3        0.03         0       0                   0.01
    :
   User
               0.02        0.5      0.1                  0.01
   3.1M
Email Marketing as a Strategic Asset


• Strategically define KPI goals

• Use data to transform your process

• Integrate email marketing into overall multi-channel strategy
Optimizing Daily Deals Email




              Offer 1    Offer 2   Offer 3       …     Offer N

  User 1        0.01       0.05     0.02                  0

  User 2     0.4 0.2     0.2
                           0.01     0.030.03          0.010.4
           Offer N      Offer 1        Offer 3       Offer 2
  User 3        0.03         0       0                   0.01
    :
   User
               0.02        0.5      0.1                  0.01
   3.1M
Daily Deal Targeting Strategies


       Daily                   Daily                   Rank 1
    Fresh Deal              Fresh Deal                 Recom.

            Closest
  Popular                 Rank1    Rank2           Rank2     Rank3
              To
   Deal                   Recom.   Recom.          Recom.    Recom.
            Expiry



Human-Based Targeting   Man/Machine Targeting   100% Predictive Targeting
Results: Increased Conversion Rate

       Daily                   Daily                   Rank 1
    Fresh Deal              Fresh Deal                 Recom.

            Closest
  Popular                 Rank1      Rank2         Rank2     Rank3
              To
   Deal                   Recom.     Recom.        Recom.    Recom.
            Expiry



Human-Based Targeting   Man/Machine Targeting   100% Predictive Targeting




                                                            22%
                                8%

     Base Line
Results: Increased Conversion Rate



   Rank 1                       Rank 1
   Recom.                       Recom.
                   Rank 1
                   Recom.        Rank2
Rank2    Rank3
                                 Recom.
Recom.   Recom.



 Consumer 1       Consumer 2   Consumer 3
Take Aways

Improve Traditional Email Targeting
• Make every email count
• More data equals better targeting predictive power
• More channel data variety equals better targeting predictive power
Strategically Use Data and Analytics
• Strategically define KPI goals
• Use data to transform your process
• Integrate email marketing into overall multi-channel strategy
Achieve Incremental Value

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Big data email case studies

  • 1.
  • 2.
  • 3. Improving Traditional Email Marketing • Make every email count • More data equals better targeting predictive power • More channel data variety equals better targeting predictive power
  • 4. Results: Increased Click-Thru Rates Original Big Data and Campaign Machine Learning 3.3M emails 3.4M emails 60% 35K clicks 57K clicks
  • 5. Opportunity Analysis Emails Clicks Original 3.3M 35K Traditional data mining and intuition Campaign based rules Big Data 1.5M 37K 55% fewer emails for same clicks Optimizing for email volume Big Data 3.4M 57K 60% more clicks for same emails Optimizing for Revenue
  • 6. Optimizing Daily Deal Email Model propensity to convert for each user on each category Matrix of Scores: 3.1 Million Members x 568 Categories Offer 1 Offer 2 Offer 3 … Offer N User 1 0.01 0.05 0.02 0 User 2 0.2 0.01 0.03 0.4 User 3 0.03 0 0 0.01 : User 3.1M 0.02 0.5 0.1 0.01
  • 7. Optimizing Daily Deals Email Offer 1 Offer 2 Offer 3 … Offer N User 1 0.01 0.05 0.02 0 User 2 0.4 0.2 0.2 0.01 0.030.03 0.010.4 Offer N Offer 1 Offer 3 Offer 2 User 3 0.03 0 0 0.01 : User 0.02 0.5 0.1 0.01 3.1M
  • 8. Email Marketing as a Strategic Asset • Strategically define KPI goals • Use data to transform your process • Integrate email marketing into overall multi-channel strategy
  • 9. Optimizing Daily Deals Email Offer 1 Offer 2 Offer 3 … Offer N User 1 0.01 0.05 0.02 0 User 2 0.4 0.2 0.2 0.01 0.030.03 0.010.4 Offer N Offer 1 Offer 3 Offer 2 User 3 0.03 0 0 0.01 : User 0.02 0.5 0.1 0.01 3.1M
  • 10. Daily Deal Targeting Strategies Daily Daily Rank 1 Fresh Deal Fresh Deal Recom. Closest Popular Rank1 Rank2 Rank2 Rank3 To Deal Recom. Recom. Recom. Recom. Expiry Human-Based Targeting Man/Machine Targeting 100% Predictive Targeting
  • 11. Results: Increased Conversion Rate Daily Daily Rank 1 Fresh Deal Fresh Deal Recom. Closest Popular Rank1 Rank2 Rank2 Rank3 To Deal Recom. Recom. Recom. Recom. Expiry Human-Based Targeting Man/Machine Targeting 100% Predictive Targeting 22% 8% Base Line
  • 12. Results: Increased Conversion Rate Rank 1 Rank 1 Recom. Recom. Rank 1 Recom. Rank2 Rank2 Rank3 Recom. Recom. Recom. Consumer 1 Consumer 2 Consumer 3
  • 13. Take Aways Improve Traditional Email Targeting • Make every email count • More data equals better targeting predictive power • More channel data variety equals better targeting predictive power Strategically Use Data and Analytics • Strategically define KPI goals • Use data to transform your process • Integrate email marketing into overall multi-channel strategy Achieve Incremental Value