Evolution of Email Marketing: Strategies for Personalization, Measurement and Lifetime Value
•Download as PPTX, PDF•
3 likes•773 views
This document provides an overview of the evolution of email marketing from 2016. It discusses how email marketing has progressed from basic batch and blast strategies to more personalized approaches using techniques like consumer journey mapping, segmentation based on recency and frequency scores, and developing long-term engagement strategies. It highlights how the most effective marketers treat their email lists as valuable customer relationships to nurture over time, rather than one-time sales channels. Measurement is also emphasized, with more advanced companies tying their metrics to objectives like lifetime customer value rather than just opens and clicks. The document aims to demonstrate how marketers can maximize the potential of email as a marketing strategy through personalization, long-term engagement, and strategic measurement.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (16)
Similar to Evolution of Email Marketing: Strategies for Personalization, Measurement and Lifetime Value
Similar to Evolution of Email Marketing: Strategies for Personalization, Measurement and Lifetime Value (20)
More from Three Deep Marketing
More from Three Deep Marketing (13)
Recently uploaded
Recently uploaded (20)
Evolution of Email Marketing: Strategies for Personalization, Measurement and Lifetime Value
- 1. Evolution of Email Marketing 2016 Edition Dave Woodbeck President & CEO Three Deep Marketing 1
- 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.
- 8. Evolution Happens: Email… Is more like this! 8
- 9. Why Email?
- 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?
- 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. The Continued Evolution of Email
- 15. Where Are You on the Maturity Curve? 15
- 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. 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. 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
- 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. 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
- 25. Only Capture What You Need 25
- 26. But As You Provide Value Ask For More (Progressive Profiling) 26
- 27. Experiment Your Way To Success 27 Wanted to Increase
- 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%
- 30. Treat People in Your Database Like People Evolve past batch and blast 30
- 31. What is: Batch and Blast? Sending a single email to as many contacts as possible without attention to individual behavior.
- 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. 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. 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?
- 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. How do: I execute more effectively …into this!
- 38. Define Objectives | Set Goals Company Goals and Objectives
- 39. These Are NOT Just Pretty Pictures What is your Consumer... THINKING FEELING DOING
- 40. These Are NOT Just Pretty Pictures Where can you IMPACT them on their journey?
- 41. These Are NOT Just Pretty Pictures Drive these into Campaign Strategies
- 42. PreNatal PostNatal Results: Campaigns that are personalized to the consumer lifecycle!
- 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. Persuasion Equation 46 Understand the decision making science of the brain. Interrupt Engage Educate Offer
- 47. A New Scoring Model From the Past 47
- 48. Everybody wants Engagement A simple scoring model from decades ago delivers it best. 48
- 49. Stop Fighting Over Clicks and Opens Think about engagement and value! 49
- 50. Did you know Marketing Automation & CRM actually existed in 1985? It was called Database Marketing 50
- 51. How do I value my email database?
- 52. The Recency Curve Going Going Gone
- 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
- 55. 25 Cells of Segmented Goodies
- 56. Let’s Simplify This A Bit Because why overthink, if You don’t have too 56
- 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. 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. 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)
- 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. Business Objective: Lifetime Value Marketing Objective: Engagement There they are! The real world use of the terms we’ve been discussing!
- 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. 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. The #1 Predictor of Future Value! Why Recency & Frequency? BEHAVIOR!
- 66. Email is Marketing Strategy Let’s Put It All Together 66
- 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. 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. Retail Post-Purchase Campaign +18 Months Free Heel-To-Toe Check-Up Email Opt-in Footwear Purchase Image Source: http://www.vrbusinessbrokers.com/
- 71. Retail Post-Purchase Campaign *Source: IBM Silverpop 2014 Email Benchmark Study
- 72. Batch and Blast is NOT a Strategy Personalized Broadcast and Respond IS a Strategy 72
- 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. The Behavior Zone Lifestyle / Solution Information Product / Promotion Information 2 – 4 Apr Trigger 1 Trigger 2 Trigger 3 The Broadcast and Respond Strategy
- 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. 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
- 78. Questions 78
Editor's Notes
- So, Why Email? Why are we all gathered here today? [CLICK]
- After all, Isn’t Email Dead? I mean the first email was sent back in 1971. In digital marketing terms that’s like a million years ago. Over the years Emails Death as been predicted several times. First it was Instant Messaging that was going to kill email. Then it was SMS and Text Messaging. Then it was Social Media… You get my point. Email has been around a long time and it will continue to be. If it wasn’t this would be the shortest webinar of all time. But, the fact is we are expecting Businesses to actually focus more on email marketing in the next 10 years than they have since the beginning of the internet. [CLICK]
- Email is yet again considered to be the most effective digital marketing tactic, and it also benefits from a relative ease in execution, per respondents to an survey from Ascend2 and its Research Partners [download page]. After all, Isn’t Email Dead? I mean the first email was sent back in 1971. In digital marketing terms that’s like a million years ago. Over the years Emails Death as been predicted several times. First it was Instant Messaging that was going to kill email. Then it was SMS and Text Messaging. Then it was Social Media… You get my point. Email has been around a long time and it will continue to be. If it wasn’t this would be the shortest webinar of all time. But, the fact is we are expecting Businesses to actually focus more on email marketing in the next 10 years than they have since the beginning of the internet. [CLICK]
- But why? Well, THREE Reasons. First, Email is Cost Effective. In most cases companies report that Email is either their best or second best marketing channel in terms of ROI. Second, Email can be very effective in building new relationships, but more importantly new revenue. As ExactTarget stated 70% of people say they always open email from their favorite companies. And lastly, and probably the best reason email will continue to be so successful; is its ability to nurture repeat business from your existing customers. eMarketer released a report earlier this year showing that in 2014 email marketing was cited as the most effective digital channel for customer retention. [Click]
- Most are optimizing or living within an allocated budget, some, mostly ecommerce understand how to optimize the opportunity. Later
- Many marketers are overwhelmed by what to test. It takes a solid analysis and understanding of consumer behavior to identify those things we should test.
- Not technically But technically spam is not really meat
- AUDIENCE PARTICIPATION SO HOW SHOULD WE START TO THINK ABOUT OUR MARKETING DATABASE AND PUT VALUE ON IT? REMEMBER BACK IN 1985 WE DIDN’T HAVE ALL THIS FANCY CLICK AND VIEW STUFF, WE SIMPLY HAD A DATABASE OF CUSTOMERS. MARTY: HEY DOC, HOW DO I KNOW IF A CUSTOMER IS STILL A CUSTOMER? DOC: WHY DO YOU ASK? MARTY: WELL I HEARD IT’S GOOD TO RETAIN MY CUSTOMERS. DOC: WELL HOW DO YOU DEFINE CUSTOMER? MARTY: I DON’T KNOW, THAT’S WHY I’M BACK HERE IN 1985 TRYING TO FIGURE IT OUT. DOC: WELL IT’S REASONABLE TO THINK THAT A CUSTOMER IS SOMEBODY THAT HAS PURCHASED FROM YOU IN THE PAST AND YOU EXPECT THEM TO PURCHASE AGAIN IN THE FUTURE, CORRECT? MARTY: BUT HOW WILL I KNOW WHO WILL PURCHASE AGAIN IN THE FUTURE? DOC TO THE AUDIENCE: LET’S SEE IF WE CAN HELP MARTY OUT WITH A SIMPLE CONSTRUCT? TAKE TWO CUSTOMERS, ONE THAT PURCHASED FROM YOU 2 YEARS AGO AND ONE THAT PURCHASED 2 MONTHS AGO; WHO IS MORE LIKELY TO COME BACK AND PURCHASE AGAIN? MARTY: SO WAIT A MINUTE DOC, YOU’RE SAYING THAT CUSTOMERS THAT PURCHASED MOST RECENTLY FROM ME CAN HAVE AN EXPECTATION TO PURCHASE AGAIN IN THE FUTURE? DOC: GREAT SCOTT MARTY, THAT IS THE ANSWER! Audience Participation: “Take two customers – the last contact with one was 10 years ago, the last contact with the other was 2 years ago. Would you be willing to go out on a limb and say the “customer” you last had contact with 2 years ago is more likely to still be a customer than the customer you last had contact with 10 years ago?” How many have been asked the dreaded question of: What is the value of my marketing automation database? Finally the big reveal around the dialogue of how customer value can be derived from the simple premise of recency and frequency. In this section we’re going to give you a method to align value to your marketing automation database. Let’s start with the definition of a MA customer record. Let’s actually go further and define what a customer is. [I need to think of a different word than “customer”]
- You have just proven that recency is important. In fact you’ve just proven that it is measure of customer value.
- Can anybody give a guess as to what happened in October and September? A big promotion that produced a lot of activity! Talk about campaigns as another way to look at the performance of your database.
- Add page
- Can you imagine now being able to go to your boss and ask for money to keep your two best cells Alive?
- Since the dawn of man a set of human behaviors have developed that can be leveraged by the modern marketer. One of those behaviors is based on a scientific premise of recency and frequency. Why RF(M) versus other techniques such as: Demographics Cluster coding Market Research Focus Groups Customer Surveys Because of something very simple: BEHAVIOR Behavior, specifically recent behavior is much more accurate and POWERFUL method than predicting behavior based on any other known factor. This principle can be applied against almost any kind of activity and it can be stated simply as this: The more recent you have taken a particular activity, the more likely (probable) you will take that activity again
- This is the current POST-PURCHASE customer journey. The top is a simple Welcome message for those who purchased accessories or other Non-Footwear items. Below is the track that our CRAFTSMAN would fall into after just purchasing New Work Boots. It is a drip campaign that communicates about that purchase from day 0 over the next 2 YEARS!
- Here is the first email in the campaign that sends right after the purchase. It is personalized from the Local Retail Store that they made the purchase. It includes a SAVE $10 on next Boot purchase offer And the ask to take a Survey about their shopping experience Any overly positive survey responses or extremely poor responses are automatically triggered to the Store Manager and District Manager. It includes the SKU’s of products purchased as well as the Sales Associate that made the sale. This data is crucial to make sure that Red Wing can work with each store on making sure the Customer Journey of purchasing is as positive as it can be.
- The sixth email is delivered at 18 months post-purchase, it is very similar to the 12 month email but this time touts harder that it may be time to invest in a new pair of boots.
- As we might expect open rates are high right after purchase as the customer is engaged with Red Wing. The interesting point to call out is that even out at 12 months post-purchase the email is performing higher than the Avg. Retail Open rate (Avg. Pulled from Silverpop’s resent 2014 email benchmark study) And even at 2 years after purchase open rates are still not to far below retail industry average. This is the power of understanding the Customer Journey and utilizing Data and Feedback to have a relevant and timely dialogue with your customer.
- ALL THE TALK ABOUT TRIGGERED IS GOOD BUT IT DOESN’T REPLACE THE GOOD OLE BROADCAST STRATEGY The pulse (broadcast | newsletter | etc…) still has a very important role. It is the catalyst that can keep your consumers engaged with the brand and indicate the items for which they are interested. Silverpop benchmark metrics on triggered emails versus broadcast emails.
- The pulse (broadcast | newsletter | etc…) still has a very important role. It is the catalyst that can keep your consumers engaged with the brand and indicate the items for which they are interested. Silverpop benchmark metrics on triggered emails versus broadcast emails.
- The pulse (broadcast | newsletter | etc…) still has a very important role. It is the catalyst that can keep your consumers engaged with the brand and indicate the items for which they are interested. Silverpop benchmark metrics on triggered emails versus broadcast emails.