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Evolution of Email Marketing: 2016 Edition

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Email marketing is one of the oldest digital marketing tactics, yet it continues to deliver a higher ROI than just about any other online strategy. But this is not your father's email marketing anymore. That's right: this strategy has matured, and if you haven't revisited how you create email content since the early 2000's, you're most likely missing out on the major ROI and benefits of email. This topic takes an in depth look into six key areas of email marketing and how each has evolved. It's time to update your old email marketing strategy and move it to 2016 and beyond.

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Evolution of Email Marketing: 2016 Edition

  1. 1. Evolution of Email Marketing 2016 Edition Dave Woodbeck President & CEO Three Deep Marketing 1
  2. 2. Dave Woodbeck CEO, Three Deep Marketing Email: dave.woodbeck@threedeepmarketing.com • Self-described recovering CPA, in a good way • Manages over 1,200 email campaigns per year • Sends over 245,000,000 permission-based emails per year • Works with B2C and B2B Fortune 100 to Small Businesses • Maps marketing to consumers’ behavior and buying psychology Visit www.threedeepmarketing.com to learn more about the measureable digital marketing campaigns Dave and his team provide.
  3. 3. Evolution Happens: Transportation
  4. 4. Evolution Happens: Photography 4
  5. 5. Evolution Happens: Music 5
  6. 6. Evolution Happens: Telephone 6
  7. 7. Evolution Happens: Email 7
  8. 8. Evolution Happens: Email… Is more like this! 8
  9. 9. Why Email?
  10. 10. Think email is dead? Businesses will use email marketing more often and more effectively in the next 10 years than they have since the beginning of the internet. Isn’t Email Dead?
  11. 11. That Would Be NO!
  12. 12. Cost Effective Reach Your Customers Nurture Repeat Business Email Marketing has an avg. ROI of $38 for each dollar spend. One in 5 companies report an ROI of over 70:1. (DMA National Email Report 2015) In 2014, email marketing was cited as the most effective digital marketing channel for customer retention in the United States. (eMarketer) 70% of people say they always open emails from their favorite companies. (Exact Target) WhyEmail?
  13. 13. The Continued Evolution of Email
  14. 14. Evolving Strategies 14
  15. 15. Where Are You on the Maturity Curve? 15
  16. 16. 5 Email Marketing Strategies You NEED to Master. And How They’ve Progressed • Email Acquisition • Personalization • Journey Mapping • Email Value Through Scoring • Pulse and Respond
  17. 17. The Measurement Gap If a tree falls in the forest and no one is around to hear it, does it make a sound? Rhetorical, I know – the point is why send an email if you can’t measure its performance or attribute success. 17
  18. 18. Measurement is a Large Gap But, many don’t know how to align against revenue. Opens and Clicks are important, but that’s not what executives care about. Later in this presentation we’ll show you a measurement model that allows you to talk about value! 18
  19. 19. The Measurement See-Saw Opportunity Optimization Budget Optimization 19
  20. 20. Email Acquisition 20
  21. 21. You Don’t Have a Database of Names if You Don’t Acquire Them Evolve To Looking At Entire Journey To Capture Names 21
  22. 22. Sources of Acquisition Across the Landscape Online • Sign in/ Register • Newsletter sign up • Surveys • Competitions • Online Purchase • Write a review/ Rate Product • Contact Us • Quote Engines • Form Applications Offline • Instore Purchase • Store Collections • Instore Orders • Voucher Redemption • Store Exchange/Returns • Consultations/Appointments • Postal Subscriptions • Call Centre Interactions • Post Purchase Services 22
  23. 23. Social Media Data Cards 23
  24. 24. Single Sign-On 24
  25. 25. Only Capture What You Need 25
  26. 26. But As You Provide Value Ask For More (Progressive Profiling) 26
  27. 27. Experiment Your Way To Success 27 Wanted to Increase
  28. 28. Experiment Your Way To Success 28 Changed CTA Brought White Paper Up • Changed ads and landing page CTA to “Talk to an Expert” increased conversions • Moving the white paper to the top of page increased conversions • Adding on page form vs pop up form increased conversions • Improvements increased conversion rate by 36%
  29. 29. Personalization 29
  30. 30. Treat People in Your Database Like People Evolve past batch and blast 30
  31. 31. What is: Batch and Blast? Sending a single email to as many contacts as possible without attention to individual behavior.
  32. 32. Is it SPAM? Not technically. But some argue that SPAM isn’t theoretically meat. Let’s just say you wouldn’t want to serve either to your guests.
  33. 33. Disrespectful! 33 If we’ve taken the time and effort to understand our customer why would we disrespect them with a one size fits all email strategy?
  34. 34. Why do: companies blast then? Because it is often the easiest thing to do. Creative variation can get expensive. Uncertain about the economic benefits of personalization. All valid, so can we make it more effective?
  35. 35. Yes! Consumer Journey Mapping
  36. 36. Image Source: http://brightspotstrategy.com/wp-content/uploads/2013/06/experience-map-activity1.jpg How do: I execute more effectively? And turn this….
  37. 37. How do: I execute more effectively …into this!
  38. 38. Define Objectives | Set Goals Company Goals and Objectives
  39. 39. These Are NOT Just Pretty Pictures What is your Consumer... THINKING FEELING DOING
  40. 40. These Are NOT Just Pretty Pictures Where can you IMPACT them on their journey?
  41. 41. These Are NOT Just Pretty Pictures Drive these into Campaign Strategies
  42. 42. PreNatal PostNatal Results: Campaigns that are personalized to the consumer lifecycle!
  43. 43. StaticContent DynamicContent
  44. 44. The Content Game 44
  45. 45. Your Approach to Content is UPSIDE down! 45 We should be spending MORE time focused on the TARGET (i.e. the List) and MORE time focused on the SUBJECT LINE (i.e. the Offer).
  46. 46. Persuasion Equation 46 Understand the decision making science of the brain. Interrupt Engage Educate Offer
  47. 47. A New Scoring Model From the Past 47
  48. 48. Everybody wants Engagement A simple scoring model from decades ago delivers it best. 48
  49. 49. Stop Fighting Over Clicks and Opens Think about engagement and value! 49
  50. 50. Did you know Marketing Automation & CRM actually existed in 1985? It was called Database Marketing 50
  51. 51. How do I value my email database?
  52. 52. The Recency Curve Going Going Gone
  53. 53. Now with Real Data - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 200,000 DEC NOV OCT SEP AUG JUL JUN MAY APR MAR FEB JANUniqueConsumers Month Since Last Open Recency Curve as of 12/31/2015
  54. 54. The Classic Quintile Model Recency •5 •4 •3 •2 •1 Frequency •5 •4 •3 •2 •1
  55. 55. 25 Cells of Segmented Goodies
  56. 56. Let’s Simplify This A Bit Because why overthink, if You don’t have too 56
  57. 57. The Simple Grid Engagement Value = Lifecycle Value MoreFrequentLessFrequent Less Recent More Recent CurrentValue(FREQUENCY) Potential Value (RECENCY) Adapted from: http://blog.jimnovo.com/2007/04/03/recency-defines-engagement/
  58. 58. The Simple Grid Engagement Value = Lifecycle Value Adapted from: http://blog.jimnovo.com/2007/04/03/recency-defines-engagement/ MoreFrequent High Current Value Low Potential Value SAVE these consumers High Current Value High Potential Value LOYAL: Keep these Consumers LessFrequent Low Current Value Low Potential Value REACTIVATE: Should we spend time/effort here? Low Current Value High Potential Value GROW: Focus on growing Less Recent More Recent CurrentValue(FREQUENCY) Potential Value (RECENCY)
  59. 59. The Simple Grid Engagement Value = Lifecycle Value 5ormore High Current Value Low Potential Value SAVE these consumers 120K High Current Value High Potential Value LOYAL: Keep these Consumers 178K 1-4 Low Current Value Low Potential Value REACTIVATE: Should we spend time/effort here? 64K Low Current Value High Potential Value GROW: Focus on growing 314K (217K NEW) 3 or more months ago New to -2 Months Ago CurrentValue(FREQUENCY) Potential Value (RECENCY)
  60. 60. Lifetime Value Case Study 60
  61. 61. ‘MEASURE SOMETHING’ • Metrics in channel silos • Standardized metrics • Historical averages for goals • Reporting is observational - i.e. x increased, y decreased ‘STRATEGIC MEASUREMENT’ • Metrics tied to objectives • Engagement weighted by value • Industry benchmarks for goals • Reporting drives action ‘ADVANCED ANALYTICS; …BEYOND MEASUREMENT’ • True Life time value • Hyper personalization & engagement modelling - Churn prevention • Multivariate testing - Audience segments, offers & content Level 1 Level 2 Level 3 It’s Important to Understand Your Maturity
  62. 62. Business Objective: Lifetime Value Marketing Objective: Engagement There they are! The real world use of the terms we’ve been discussing!
  63. 63. …And The Sales Impact 15.5% -3.3% 12.0% 20.2% Purchase Amount Frequency Penetration Sales % Increase 4.9% 7.5% 2.5% 10.7% PURCHASE AMOUNT FREQUENCY PENETRATION SALES % INCREASE Introductory Product Upsell Product $153 of Incremental LTV Lift
  64. 64. The Simple Grid Engagement Value = Lifecycle Value 5ormore High Current Value Low Potential Value SAVE these consumers 120K = $9MM High Current Value High Potential Value LOYAL: Keep these Consumers 178K = $27MM 1-4 Low Current Value Low Potential Value REACTIVATE: Should we spend time/effort here? 64K = $0.1MM Low Current Value High Potential Value GROW: Focus on growing 314K = $24MM 3 or more months ago New to -2 Months Ago CurrentValue(FREQUENCY) Potential Value (RECENCY)
  65. 65. The #1 Predictor of Future Value! Why Recency & Frequency? BEHAVIOR!
  66. 66. Email is Marketing Strategy Let’s Put It All Together 66
  67. 67. Engagement = Lifecycle Marketing
  68. 68. Retail Post-Purchase Campaign 0 days Initial Thank You Boot purchases only +4 days Survey Reminder 0 days Initial Thank You Non-purchase version +20 days How Are Your New Boots Working Out? +6 Months Free 6 Month Tune-Up +12 Months Free Heel-To-Toe Check-Up +18 Months Free Heel-To-Toe Check-Up +24 Months Upgrade To New Boots Email Opt-in No Footwear Purchase Email Opt-in Footwear Purchase
  69. 69. Retail Post-Purchase Campaign Email Opt-in Footwear Purchase0 days Initial Thank You Boot purchases only A+ F Store Manager District Manager Survey Grade Survey
  70. 70. Retail Post-Purchase Campaign +18 Months Free Heel-To-Toe Check-Up Email Opt-in Footwear Purchase Image Source: http://www.vrbusinessbrokers.com/
  71. 71. Retail Post-Purchase Campaign *Source: IBM Silverpop 2014 Email Benchmark Study
  72. 72. Batch and Blast is NOT a Strategy Personalized Broadcast and Respond IS a Strategy 72
  73. 73. Lifestyle / Solution Information Product / Promotion Information 2 – 4 Jan 2 – 4 Feb 2 – 4 Mar 2 – 4 Apr 2 – 4 May 2 – 4 Jun 2 – 4 Jan 2 – 4 Feb 2 – 4 Mar 2 – 4 Apr 2 – 4 May 2 – 4 Jun The Behavior Zone The Broadcast and Respond Strategy
  74. 74. The Behavior Zone Lifestyle / Solution Information Product / Promotion Information 2 – 4 Apr Trigger 1 Trigger 2 Trigger 3 The Broadcast and Respond Strategy
  75. 75. The Behavior Zone The Broadcast and Respond Strategy Lifestyle / Solution Information Product / Promotion Information 2 – 4 May Trigger 1 Trigger 2 Trigger 3
  76. 76. 2016 Benchmarks From Best-in-Class Companies On Marketing Automation http://offer.threedeepmarketing.com/marketing-automation-trends-for- success 76 Free 14-page eBook based on research we completed with Ascend2 on Trends for Marketing Automation Success •Most Significant Barriers to Success •Strategy and Planning Resources •Most Useful System Features •Measuring Marketing Automation Performance
  77. 77. 77
  78. 78. Questions 78

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