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Advanced Email Marketing - covers Email Segmentation, Personalisation, Testing and Optimisation. Presented to marketers from the Retail, Financial Services, Travel, Charity and B2B Sectors and including examples from all of these.
Citation preview
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© RedEye International Ltd 2009
E-mail Marketing Masterclass
28th April 2009
Dr Dave Chaffeywww.davechaffey.com/blog
www.davechaffey.com/presentations
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© RedEye International Ltd 2009
The biggest challengein Email marketing?
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Today’s topic:improving engagement
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Today’s topics
1. Benchmarking engagement– What should I be measuring?
2. How to best target & personalise– Behavioural targeting
3. Creating a structured testing programme– What to test?– How to test?
4. What other companies are doing?– Case studies to inspire
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© RedEye International Ltd 2009
About Dave
An e-marketing “guru”!
www.davechaffey.com/blog
Recognised by the CIM in 2004 as one of 50 people who have ‘shaped the future of marketing’ and by DTI in 2005 as a key contributor to the development of UK E-commerce in the last 10 years
Author of 6 best-selling business books
• Internet Marketing• E-business and e-commerce Mgt• Total E-mail Marketing
E-marketing trainer and consultant
Clients include 3M, BP, CIPD, Euroffice, HSBC, IDM, Intel, Sony, Tui and Tektronix. Analyst at www.econsultancy.com.
E-marketing consultant at www.cScape.com.
Visiting lecturer at leading UK business schools
• Cranfield School of Management • Leeds University Business School• Warwick (E-business)2
• Previously Birmingham, Derby
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– CREATIVE – RELEVANCE, Readability, Reach – Individualised, ISP delivery, INCENTIVISATION – TARGETING/Segmentation – INTEGRATION – CONTENT/COPYWRITING – ATTRIBUTES – LANDING PAGE
Activity. What affects E-mail campaign success rate?
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About YouHow advanced is your email marketing?
• Level 5: OptimisedMultiple segments, subject lines optimised in real-time, single customer view, optimized event-triggered mailings, Full RFV
• Level 4: Contextual relevanceEvent-triggered lifecycle, mailings: Welcome strategies, post-purchase and reactivation – but not optimized, Basic RFV
• Level 3: Basic test and learnSubject line testing, AB Testing, Follow-up on open/click behaviour
• Level 2: Increasing relevanceBroadcast to multiple segments (and track response)
• Level 1: “Pray and Spray”Emails untargeted and untracked
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Benchmark your Email capabilities!
Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission
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1 Measuring engagement
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3 advanced ways of measuringemail engagement
• How do you measure engagement with email?
• Open/clicks/CTOR is NOT good enough, instead…
• Opens/clicks/CTOR/sales:
– 1. At position in lifecycle
– 2. By segment
– 3. By offer / email type
– 4. Aggregated over a longer time period
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© RedEye International Ltd 2009
Measuring list activity – email engagement
Tip. Measure the overall health of your list
through activity / inactivity levels over time
• These “hurdle rates” are for whole list. Repeat:– By segment– By product categories purchased
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Avoiding disengagement
Yes
Yes Yes Yes
Yes Yes
Yes
Not open email
Open email
Click through
Purchase
Weeks or campaigns 1 2 3 4 5 6 7 8
Yes Yes Yes
Yes
Yes
PotentialDisengagement
(Don't let this happen)
Successfully engaged(Do more of this)
Semi-Engaged(change something now)
Increasin
g en
gag
emen
t
Source:
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2 Which are the best targetingvariables?
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easyJet.com example
Source: Brand Republic Email marketing conference
Personalising by departure airport increased response by 5 percent
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Example of dynamic content insertion
Presented by Grant Baillie of Argos at 2008 Email marketing conference,, with permisssion
Tip. Change order of offers
or features
according to segment
to increase relevance
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© RedEye International Ltd 2009
Q. Which targeting factors give best response?
Unknown
Demographic profile data
Lifestyle &psychographics
Attitude &preferences
Behaviour & lifecycle
Pro
pen
sity
: ta
rget
ing
varia
ble
mos
t pre
dict
ive
of r
espo
nse
Customer profiling insights
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Farming segments
• Purchase behaviour:– Buyer vs non-buyer– One-time vs multiple
• Email activity– Active vs inactive clicker– Number of clicks on email
• Web activity– Visited, never visited– Browsed, not bought
• Channel activity– Web vs Store vs Catalogue
• RFM– Proportional– Hard-coded
• Category purchased • Appending lifestyle data• Value
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Using predictive modelingto nurture best customers
• Some variables used to identify “best” included:– Total # of purchases
• The more the better
– Time on file• The younger the better
– Months since first purchase• The more the better
– Months since last purchase• The less (or more recent) the better
– Total e-mails clicked on over the past year• The more the better
– Total e-mails opened over the past year• The more the better… though not always predictive
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The eBay approach:segmentation layers
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Targeting customers according to value
Customerpotential
Customerquality
high
low
low high
One time shoppers with low potential
Average customers
Good customers Very good customers
15 % 15 %
60 % 10 %
Indicators for customer quality Indicators for customer potential
Order value per received catalogue Order value per season Gross margin in % of net sales Returns in % of order value
Last date of purchase Number of active seasons Channel usage score Number of different product categories
Source: Chris Poad, Otto, E-consultancy masterclass 2006
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© RedEye International Ltd 2009
Behavioural targeting
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Exactly what is behavioural targeting?
1. Event based. A set of individuals who do the same thing on a web site and therefore become a segment of individuals
2. Browsing behaviour. A set of individuals who have shown the same behaviour, for instance browsing the same website sections or pages or using similar paths to the website.
3. Email response behaviour. For instance, active vs inactive, openers, clicker non converters etc
4. Online purchase history. Buyers/non buyers, onetime buyer/multibuyers, loyal or transient, brand engaged or disengaged.
5. RFM / RFV
Matthew Kelleher – Redeye blog - http://www.redeye.com/blog
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BT - It’s all about past actions…
Purchase Dispatched +7d
+14d +21d
Recognition ofprevious purchase
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© RedEye International Ltd 2009
Using subscription behaviourto set broadcast time
Source: Econsultancy Innovation Report
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© RedEye International Ltd 2009
• Behavioural Email Dramatically Increases Online Conversion for Sainsbury's Bank– RedEye followed up with
behaviourally triggered email campaigns across Sainsbury’s Bank pet and car insurance products.
– Utilising activity driven triggered emails in response to saved quotes and basket abandonment, RedEye analytics enabled Sainsbury’s Bank to recognise specific online behaviours, targeting emails in response to customer engagement in definitive areas of the site.
• Sainsbury’s Bank was delighted to record an unprecedented ROI of 750% across their pet insurance promotions.
Source:
case study
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Need to segment and test follow-ups:William Hill example
Source:
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Basic registrationtriggered e-mails
B2C brand education B2B registration follow-up
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“Learn more through time…”
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Incentivisingmultichannel purchase
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The Argos approach:Identifying “unfulfilled intent”
Tip. Identify
Next best “hero”
product for
each category
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5
Parlez-vous RFM/V?
1
2
3
4
5
Recency Frequency Monetary
1
2
3
4
5
1
2
3
4
5Each R decile contains20% of all customers
Recency:Time since customer completed an action e.g. click, visit, log-in, new purchase
Frequency:Number of times action completed in period
Monetary value:Amount transacted, average balance in period
HIGHEST
Lowest
Note alternative term:FrequencyRecencyAmount
Category=
FRAC analysis
Phone
E-mail/webonly
Direct mail
1
3
4
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© RedEye International Ltd 2009
RF scoring example
Source: Article by Mark Patron + Matthew Kelleher – Interactive Marketing journal – January to March 04 – SilverMinds music catalogue
Scoring:
RecencyLow 1 = > 24months2 = 19-24 months3 = 13-18 months4 = 7-12 months5 = 0-6 monthsHigh
FrequencyLow1 = One purchases2 = Two purchases3 = Three 4 = Four5 = FiveHigh
Note here boundaries are definedto illustrate behaviour. There
are a different number in each group
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© RedEye International Ltd 2009
A RF(M) segmentation example for a theatre
Oncers (F) Definition
Recent oncers attended <12 months (R)
Rusty oncers attended >12<36 months (R)
Very rusty oncers attended 36+ months (R)
Twicers (F)
Recent twicer attended < 12 months
Rusty twicer attended >12, < 36 months
Very rusty twicer attended in 36+ months
6+ (F)
Current subscribers Booked 6+ events in current season
Recent Booked 6+ last season
Very rusty Booked 6+ more than a season ago
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Q. How well are you using ‘Sense & Respond’ marketing
Source, adapted from:
Time
Lo
yalty
2. First sale
1. Register
3. Second sale
TriggeredE-mail / Message
Hardersale
Latency
TriggeredE-mail / Message
Customer A
Customer B
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Customers
Welcomeemail
BehaviouralCross sell
Regularmarketing
emails
Site segmented
Activityflagging
RFM
PredictiveLapsed /
Churn
By product
Site downapology
Birthday / XmasEmails
Repeatabandoner
FutureRelease
alert
Back instock alert
Lapsed
ActivityNon cross sell
Not returnedin 14 days
Not re-purchasedin 14 days
Processabandonment
X-sellprogramme
By product
NewsletterNot
transacted
By contentgroup visited
Contenttriggers
Entry level
5 - 8 triggers
Medium level
17 – 30 triggers
Upper level
20 – 50 triggers
Nirvana
50 – 500 triggers
How Behavioural Email develops over time
Nursery program
Site Activity programFull marketing email program
Customer service emails Source:
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© RedEye International Ltd 2009
More inspiring examples of touch strategies
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© RedEye International Ltd 2009
Response increases by 25%
for campaign
First Campaign,
Open rate, 8 to 10%
CCR = 0.2%
Second Campaign,
Open rate, 50 to 75%
CCR = 0.2%
Re-mailing to opening non-converters
Source: E-consultancy Masterclass - BCA
Tip. Remind with multimessage campaigns
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© RedEye International Ltd 2009
Response increases by 40%
for campaign
First Campaign,
CCR = 0.2%
Second Campaign,
CCR = 0.2%
Reminder emails:Re-mailing with urgency
Source: E-consultancy Masterclass – BCACCR = Campaign conversion rate
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© RedEye International Ltd 2009
Combined response from e-mail and
direct mail is 125% better than no e-
mail.
Pre-mail, with online response
Response increases, 100% for
direct mail piece.
Teaser e-mail. No online response Direct Mail
Direct Mail
Combining Email with offline communications
Source: E-consultancy Masterclass 2005 - BCA
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Email Campaigns that Build…
Welcome Email
Time-limited offer
Offer Extension
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Example New account welcome: Email No. 1
Welcomes customers to their new account
Product information welcomes customers to their new account
Source: Forrester
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Encourages customers to activate their Portfolio Management credit card
Encourages customers to activate their Portfolio Management check card
Example Account usage: Email No. 2
Source: Forrester
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© RedEye International Ltd 2009
Cross-sell message: online banking
Cross-sell message: Bill pay and online statements
Example Cross-sell: Email No. 3
Source: Forrester
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© RedEye International Ltd 2009
Up-sell message: Personal loan and lines of credit
Up-sell message: Home equity loan or line of credit with your mortgage
Example Up-sell: Email No. 4
Source: Forrester
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© RedEye International Ltd 2009
3 Creating a testing andoptimisation plan for
Email marketing
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Q. How can I build in testing – Sixteen testing ideas
1. Testing copy in e-mail headers – different subject lines and from addresses.2. Making “Pre-headers” more persuasive3. Different offers – does 10% discount or £50 off work best – it is usually the
latter. Are secondary offers useful in elevating the overall response?4. Different template layout designs5. Timing of broadcast on different days of the week, times of day6. Text vs HTML, Embedded versus linked images7. Tone of voice in copy / personality of e-mail.8. Long vs short copy9. Calls-to-action (number and location of links)10. Personalisation for targeting and dynamic messaging11. Use of video and animation12. Incorporating social media and customer involvement13. Integration with other media (e.g. e-mail teaser before DM or response
mechanism after DM).14. Which newsletter or solus e-mail template is most effective?15. Which frequency interval for a newsletter maximises revenue (while avoiding
perceptions of SPAM)16. Touch strategy for event triggered e-mail – which sequence of offers and
intervals between them work best?
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Using Eyetracking research to improve Email marketing
1. Heading and subhead copy critical• First 2-3 words most important• Make hyperlinked
2. Large fonts work well
3. Images often missed• Use text link calls-to-action
4. Readers scan down the left of an E-mail
5. First part of para important• F shape eyetrack
6. Email intros skipped • Use to personalise and engage
e.g. with hyperlinks
Need to deliver`Scannability and Skimmability
See www.etre.com
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© RedEye International Ltd 2009
Which hypotheses could you test to optimize?
i.e. which design elementswill make a difference?
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Response testing option A : Live split testing
50% of list: Subject Line 1or Offer 1
Two or more alternatives
are evaluated during broadcast
50% of list: Subject Line 2or Offer 2
100% List
http://www.company.com/promotion.htm?SL1O2
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© RedEye International Ltd 2009
Q. Short or long subject lines - which are best?
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Recommendation - Test alternate subject lines
Split or live testing
Subject line 1: “Autumn offers start today - £20 cash-back” Open rate 23.4%
Subject line 2: “£20 cash-back this week only” Open rate 36.8%
Subject line 1: “Travel is fun, not a high street trek” Open rate 39%
Subject line 2: “A click away from all your foreign currency”Open rate 34%
Source: HSBCPresented to MAD conference
With permission
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© RedEye International Ltd 2009
eBay treats Subject line optimisation seriously
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Testing option B. AB pre-test for major campaign
Test version A
Send Volume: 10,000
Sample criteria: Random
Click through rate: 6.1%
Test version B
Send Volume: 10,000
Sample criteria: Random
Click through rate: 4.5%
Main Broadcast
Send Volume: 180,000
Click through rate: 5.8%
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Test length – Which is best: short or long?
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On the other hand…
Tip. Tease (sometimes) Don’t give too much away in subject line or Email body
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Test position and form of hyperlinks
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Q. Are you using effective calls-to-action?
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. In eget nulla ac eros eleifend vestibulum. Aenean felis wisi, consequat vitae, dapibus sed, nonummy a, lorem. Sed fringilla. Phasellus pellentesque neque vel leo. Sed pretium risus a lacus. Nulla ipsum. Click here!, Vivamus erat urna, porttitor et, blandit aliquet, lacinia id, orci. Phasellus vitae mauris. Curabitur tristique, turpis at fringilla ultrices, mi dui consectetuer nibh, id condimentum ipsum magna in dolor. Quisque imperdiet. Curabitur dui. Sed augue. Curabitur imperdiet.
Use Action Verbs:Get a QuoteRegister now
Make imagesclickable:
Optimise for organic search in anchor text i.e.Not click here for your car insurance quote
But, Get an instant car insurance quote now!
Make Hyperlinks long and buttons larger:I am an easier to click
than me!
Fitts law states that “Time to reach a target with mouse is proportional to the distance to the target
divided by the size of the target”.
Use Hyperlinks:Within body copy
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© RedEye International Ltd 2009
Integrated hyperlinks:email best practice
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Highlight your offer with a “Johnson box”
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Combining simple web form and ‘Exclusive’ code encourages click through and conversion to site.
Prospects do not enter payment details
Conversion rate is three times higher than sites without passcode.
Using the passcode as a response activator
Source: E-consultancy Masterclass 2005 - BCA
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Copyable offer code
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Test video
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http://www.rei.com/email/gearmail/gm022709_vid.html
http://www.retailemailblog.com/2009/03/am-inbox-reis-embedded-animation-video.html
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© RedEye International Ltd 2009
Make your emails social!
• Web 2.0 = Participation + Interactivity + dialogue:
• Creation of user generated content – users can comment on blogs or upload videos and are updated by feeds.
• Rating of content and online services – social bookmarking services such as deli-cious and Traceback comments on some blogs.
• Mashups – Different types of content are merged, for example YouTube videos or Google Maps can be integrated into a web site. Widgets or gadgets can be integrated into users home pages on social networks or personalised home pages like Netvides or iGoogle (www.google.co.uk/ig).
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Optimise your “pre-headers”!
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Make your Emails mobile
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Q. Are you getting the tone right?
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Bonus! Optimisation case study – Audible.co.uk
Acquisition Retention Conversion
5% 5% in in acquisitionsacquisitions
5% 5% in revenue; in revenue; 40% better with 40% better with
M/F split M/F split Email sales Email sales 25% 25%
Source: Thanks to Louis Wahl, Marketing Director at www.audible.co.uk
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Audible.co.uk Campaign targeting matrix
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Acquisition Email
• Sent to new leads, daily
• Two test offers – ’30-day Free Trial’, ‘£6.99 per month’
• Targeted by gender
• Limited to first send only• High open rates
Acquisition
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Retention – dynamic container
• Sent to members and customers, weekly
• Targeted by customer status
• A la Carte vs AudibleListener
• Repeat sending to opening, non-purchasers
• 25% more conversions than single send
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Conversion – reactivation - dynamic
• Sent to dormants, at ‘end of life cycle’
• A/B tested against other generous offers
• Best performing offer sent to bulk
• Repeat sending to opening, non-purchasers
• Male vs Female
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Discussion and Q & A
• Format – Split into groups to discuss how to make these types Behavioural marketing successful:– 1. Welcome strategies – 2. Re-engagement strategies– 3. Targeting based on past behaviour
• Please discuss key issues / questions which will govern success, e.g. frequency, personalisation, testing
• Report back at …. with:– Best practice recommendations and examples of
approaches– Questions
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Retail
• Gather softer information initially e.g. “how savvy with product” clicks populate database – according to product / vertical
• Accelerated first offer – First welcome email has strong offer to segment - danger of extended offers
• Apology emails• Service emails e.g. password for reactivation• Basket abandonment – ask why – provide phone
messages – give main reasons
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Financial Services
1 Enewsletters in FS have to be info-led – need consistent format to highlight products and call-to-action
2 Cross-sell upsell in service emails? Using store&save of quote information email
3 Basket abandonment – review all steps – include relevant information
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Travel
• Reactivation example:– Inactives tested– Leave fallow– Send single email – do you want to hear from us?– Ultimate goal to avoid fallow
• Welcome example:– Asking product interests and timing of holiday– Then test 6-8 initial emails for right frequency
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• Please complete the feedback forms
• Download presentation:– www.davechaffey.com/presentations
• Any questions, any time, do e-mail me:– [email protected]
• Subscribe to my E-marketing Essentials, monthly briefing in What‘s New in Digital Marketing – www.davechaffey.com/blog
• Stay in contact through:– www.twitter.com/DaveChaffey – www.linkedin.com/in/davechaffey
Thank you!