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Beyond the Click: Understanding the Full Value of Email to Your Business

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Beyond the Click: Understanding the Full Value of Email to Your Business

  1. 1. Beyond The Click:! Understanding and keeping up with changing email! !
  2. 2. Its  nice  to  meet  you  Jessica  Jaye  Harley  VP  Customer  Marke5ng  Gilt  Groupe   For  context,  prior  experience  includes:     •  VP  Online  Marke;ng  FTD.com   •  VP  Marke;ng  Borders   •  Director  Marke;ng  Barnes  &  Noble   •  10  years  direct  marke;ng  
  3. 3. Who  we  are  •  Launched  November  2007  •  Curate  broad  range  of  daily   sales  to  serve  membership  •  Over  6,000  premium  brands   featured   3  
  4. 4. Who  we  are  •  1/3  of  total  company  sales   occur  noon  hour  on   weekdays  •  Compe;;ve  shopping  •  Sales  last  36  hours  •  Average  160  sales/week  
  5. 5. Who  we  are  •  4.3  million  ac;ve  members  •  Over  1/3  login  in  any  month  •  Extremely  loyal  customers  •  65%  Noir  members  purchase   each  month  •  Interna;onal  shipping  launched   November  2011  
  6. 6. Who  we  are  •  Named  by  Fast  Company  as   one  of  the  Top  25  Innova;ve   Companies,  #1  in  Fashion  •  Internet  Retailer  Top  500   Rank  of  49  •  DMA  2011  Marketer  of  the   Year  
  7. 7. Who  we  are  •  Growth  largely  fueled  by   fantas;c  customer  experience  •  Acquired  less  than  1/3  of  our   members  via  paid  marke;ng   efforts  to  date  •  S;ll  growing  –  20%  of  purchasers   each  month  are  new  customers  
  8. 8. Who  we  are  •  Women’s  Fashion  •  Men’s  Fashion  •  Children’s  Clothing  &  Toys  •  Home  •  Gourmet  Food  &  Wine  •  Travel  Experiences  •  City  Experiences  
  9. 9. Who  we  are  •  Shoot  almost  all  our  own  photography  •  Undergoing  major  rebranding  •  Lighter,  friendlier  and  more  accessible  •  Allows  product  and  color  to  shine   9  
  10. 10. Women’s  –  Nov,  2007  Launch  
  11. 11. Home  –  launched  2008  
  12. 12. Men’s  –  Oct,  2009  Launch  
  13. 13. Baby  &  Kid’s  –  Jul  2008  Launch  
  14. 14. Jetseger  –  Sep  2009  Launch  
  15. 15. Gilt  City-­‐  Sep  2010  Launch  
  16. 16. Taste  –  May  2011  Launch  
  17. 17. Park  &  Bond  –  Aug  2011  Launch    
  18. 18. Gilt  Japan  –  Mar  2009  Launch  
  19. 19. A  lot  has  changed  in  these  4  years…  
  20. 20. Email  has  changed  too    The  big  ques;on…  
  21. 21. Is  Email  Dead?  
  22. 22. Social  leaders  declared  it  
  23. 23. Mainstream  media  
  24. 24. Industry  blogs  
  25. 25. The  evidence  is  moun;ng  
  26. 26. Gilt’s  tremendous  growth  has  occurred  within  an  email  based  model…  During  the  ;me  these  claims  have  been  so  popular  
  27. 27. How  is  this?    
  28. 28. People  are  S;ll  Paying   Agen;on  to  email    87% of  email  users  check  personal  email  daily  51% of  daily  mobile  email  users  check  personal  email  4+  ;mes  daily   Merkle;  View  from  the  Digital  Inbox,  February  2011    
  29. 29. Even  those  who  say   they  are  not    60% of  those  who  report  they  have  a  special  account  for  retail  emails  say  they  check  it  daily   Merkle;  View  from  the  Digital  Inbox,  February  2011    
  30. 30. But  they  are  changing  HOW  they  interact  with  email  
  31. 31. Mobile  is  Changing  Email  Usage  
  32. 32. While  s;ll  the  minority…   Up 34%Return  Path:  Mobile,  Webmail,  Desktops:  Where  Are  We  Viewing  Email  Now?,  Nov  2011.  Mobile  %  increased  34%  from  April-­‐Sept  2011  vs.  prior  6  months      
  33. 33. Mobile  %  is  Growing  Rapidly   %    Total  Email  Opens   Up 51% 20%   Mobile   PC   80%   Kno;ce,  Mobile  Email  Opens  Report  ;First  Half  2011,  up  vs.  Q4  2010  
  34. 34. Gilt’s  mobile  email  opens  are  approaching  half   %  Gilt  Email  Opens   Mobile   PC  
  35. 35. Yet  top  brands  engaging  in  email   marke;ng  are  s;ll  linking  to  full  site   14%   Link  to  Plain  Web  Site   17%   Link  to  Mobile   69%   Op;mized  Site   Link  to  Mobile  Apps  L2  Pres;ge  100©;  Mobile  IQ,  January  11,  2012  
  36. 36. Mobile  has  come  to   dominate  on  weekends  Return  Path:  Mobile,  Webmail,  Desktops:  Where  Are  We  Viewing  Email  Now?,  Nov  2011.    
  37. 37. Mobile  sales  are  following   Gilt  Mobile  Sales  %   73% HigherWeekend  Weekday  
  38. 38. Device  usage  also  changes  by  ;me  of  day  
  39. 39. Mobile  %  of  sales  also   changes  by  ;me  of  day   Mobile  %  of  Gilts  Total  Sales   +48% Full  24  hrs   to 24hr9  to  Midnight  Noon  to  9PM   Midnight  to   Noon  
  40. 40. How  best  to  keep  up  with  Mobile  Email?  
  41. 41. Ensure  a  single  voice  across  channels  
  42. 42. Be  where  customers  are  
  43. 43. YOY  revenue  growth  fueled  by  mobile  
  44. 44. Understand  what  works  when  
  45. 45. Link  to  App  or  M-­‐Site  
  46. 46. It  is  becoming  clear  that  Email  and  Mobile  will  dominate  over  Social  when  it  comes  to  revenue  
  47. 47. Stores  shupng  down  on  Facebook  Facebook  stores  that  opened  and  closed  in  the  past  year:  •  Gamestop  •  Gap  •  JC  Penny  •  Nordstrom  
  48. 48. “It  was  like  trying  to  sell  stuff  to  people  while  they’re  hanging  out  with  their  friends  at  a  bar”  
  49. 49. Consumers  prefer  to  receive   promo;ons  via  email  over  social   Where  Consumers  Prefer  to  Receive  Retailer  Promo5ons   +   +   Social   4X   2X   Email   Adults*   Youth  15-­‐24**  *Internet  Retailer:  Young  consumers  use  e-­‐mail  to  find  deals,  July  2010  **Internet  Retailer:  For  store  promo;ons,  e-­‐mail  tops  social  media,  June  2010  
  50. 50. Top  Brands  are  promo;ng  Social   more  than  Mobile  L2  Pres;ge  100©;  Mobile  IQ,  January  11,  2012  
  51. 51. Social  is  crucial  to  brands,  email  and  mobile  beger  cater  to  direct  response  sales  driving  
  52. 52. Social  is  a  great  tool  for  brands  to  build  a  rela;onship  
  53. 53. Provide  fantas;c  customer   service….    Hi  Gilt,  me  again.  Well,  late   tonight  you   totally  solved   the  order   problem  in  a   kind  of   unexpected,   "wow"  way.   Thanks!  
  54. 54. Important  part  of  the  promo;onal  mix…  
  55. 55. Build  excitement  for  sales  and  promo;ons….  
  56. 56. Drive  Awareness  and  engagement  
  57. 57. Drive  loyalty  among  exis;ng  customers….   Gilt  Social  Promo5on  Sales   New  Customers   Exis;ng   Customers  
  58. 58. Understand  full  impact  of  email  
  59. 59. Gilt  open  rates  remain  steady  in  the  face  of  rapid  growth,  but  click  rates  are  declining   Open%   Click%   2009   2010   2011  
  60. 60. Problem?    Let’s  understand  the  cause  
  61. 61. Mobile  email  openers   are  not  clicking  %  Gilt  Email  Opens   %  Gilt  Email  Clicks   Mobile   PC   PC  
  62. 62. Tabbed  browsing   prolifera;on  also  likely   causing  click  declines  57% of  users  switch  tabs  in  a  session   Jeff  Huang,  Ryen  W.  White  (June,  2009).  "Parallel  Browsing  Behavior  on  the  Web"  
  63. 63. How  should  email  revenue  be  measured?  
  64. 64. Based  on  direct  click   revenue?  Gilt  Email  Revenue  %  Total  Click  Only   Email  Revenue   Non-­‐Email  Revenue  
  65. 65. What  if  we  add  in  revenue   from  same  day  email  clickers?  Gilt  Email  Revenue  %  Total  w/Clickers   Email  Revenue   Non-­‐Email   Revenue  
  66. 66. How  about  email  openers  who  purchase  in  same  day?   Gilt  Email  Revenue  %  Total  w/Openers   Email  Revenue   Non-­‐Email   Revenue  
  67. 67. Or  revenue  from  all  same  day  email  recipients?   Gilt  Email  Revenue  %  w/Recipients   Email  Revenue   Non-­‐Email   Revenue  
  68. 68. Perhaps  oversta;ng  it,  but…  Some  por;on  of   Gilt  Email  Revenue  %  w/Openers   these  sales  are  driven  by  email   received   Email  Openers  &   Clickers   Email  non-­‐Openers   Email  Non-­‐ Recipients  
  69. 69. The  key  is  we  need  to  be  flexible  in  our  understanding  of  email’s  value  or  we  could  be  making  wrong  decisions  
  70. 70. When  tes;ng,  ensure  right  metrics  Email  Tes;ng  –  Ensure  that  you  are  capturing  the  full  impact  of  tests  with  cross  channel  ac;vity  Lifecycle  Marke;ng  –  Ensure  that  purchases  are  incremental  over  ;me  Cross  Channel  Promo;ons  –  Does  total  spending  behavior  change  a{er  cross-­‐channel  promo;on?    
  71. 71. Even  crea;ve  tes;ng  can  have  impact  beyond  click  revenue  
  72. 72. Bricks  &  Clicks  is  more  challenging  Loyalty  Cards  –  If  customers  are  earning  something  they  have  incen;ve  to  give  you  email  and  pull  out  the  card    Store  Credit  Cards  –  Will  always  impact  a  lower  %  of  customers,  but  will  be  most  loyal  ones    Credit  Card  Data  Analysis  –  Painful  route      
  73. 73. What  would  an  email  presenta;on  be  without  discussion  of  Relevancy?  
  74. 74. Relevance  is  now  more  important   than  ever   Single  campaign  w/segments  by   format,  offer,  #  sales,  products,   etc.  across  channels   Stated   Preferences   Loyalty   Machine   Program(s)   Learning   Predic;ve   $" Models   Campaign   Management   Purchase/  Browse   Member   History   Data  Cube   """""" """"""" """"""" User  Input   """"""" """""""Merchandise  Strength   $ Customer   Spend,  RFM,   Outside  Data  (Demo/ Sa;sfac;on     Lifecycle   Shopping)   5 4 3 2 Series1 1 0 1 2 3 4 Series1 Campaign  Results  
  75. 75. Personalized  sale  emails  drive  +10%  revenue  across  all  customers  
  76. 76. User  input  drives  up  to  31X  to  50X  revenue  li{s  
  77. 77. Lifecycle  marke;ng  drives  up  to  2-­‐5X  revenue  increases  
  78. 78. But  lifecycle  messaging  can  easily  be  overused  
  79. 79. Behavioral  targe;ng  drives  up  to  20X  revenue  li{  
  80. 80. User  discre;on  needs  to  be  used  in  conjunc;on  with  sta;s;cs  
  81. 81. Key  Takeaways  Unified  Voice  –  across  all  channels    Understand  what  is  behind  data  –  It  could  change  your  strategies    Be  where  your  customers  are  –  Understand  the  mindset  they  are  in    Be  relevant  and  flexible  –  Adapt,  adapt  adapt    
  82. 82. Ques;ons?    Jessica  Harley  VP  Customer  Marke;ng  Gilt  Groupe  jharley@gilt.com  

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