Building Customer Lifecycle Marketing

StrategiesUsing Behavioural and Engagement

Data

26 May 2011TFM&A Manchester

Premise

1. “Using the new media of the 1:1 future you will be able to communicate directly with customers, individually, rather than shouting at them in groups… The technologies needed to track and communicate with customers, one at a time, are already here.”

* ‘The One To One Future, Building Relationships One Customer at a Time’, Don Peppers and Martha Rogers, 1993

2. Income for eCommerce organisations employing the latest Behavioural and Engagement strategies should be growing 150-250% per year.

3. Email driven by Engagement and Behavioural data achieves open rates of 40-60%... It is relevant

Over 100% Year on Year Increase in Email Revenues

ROI of 2,399%, 103% growth in email revenues compared to the same period 2009.Evans Cycles achieved these results through, amongst others, segmentation and life cycle marketing strategies. The email campaign plan segmented messaging and creative content based on individual preferences, engagement, online browsing and behavioural behaviour. Email marketing content was relevant to each individual user. The results included open rates as high as 84.9% (generic ‘newsletter’ emails 16% - 25%) and click rates of 40.5% (generic emails 3.8% - 5%).

Diverging Strategies in Email

Maximising Relevance

Email Address

Preference Centre

RFM Data

Behavioural Data

Engagement Data

What is Engagement Data?

• Engagement data identifies engagement with all media and the website.

• When Engagement is tracked and analysed the resulting segmentation will identify those customers likely to buy

• For instance, a customer engaged with email is 6.2 times more likely to purchase than one who is not…

A combination of engagement and RFM can be used to select frequency of mailings.

Sending emails to people who want to receive them, is vital to ensuring email deliverability.

More frequent

Less frequent

Toxic segments

Email engagement data in action

What is Behavioural Data?

Repeat visitors are 8 times more likely to buy than first time visitors and the best way to get someone back to the website is via email

Consumers respond better to more relevant communication

Behavioural email targets consumers based on their online behaviour for best results

Makes email marketing relevant to every recipient

Typical results of 70% open rates, 30% click through rates and conversion rates over 10%

Why it’s important

• Forrester research says 71% of shopping carts are abandoned

• Whilst recent studies have shown 46% of abandoned transactions would convert when remarketed to

• A single basket abandonment emailwill generate about 2% extra revenues

• A few dozen behavioural emailsshould be able to generate an extra10% to 20% revenues

How the combined strategies work

Visitors

Browsers

Info Gathering

Comparing

Basket Abandon

Engagement is the first

stage of any journey

Purchase

Drop off communications

Browser programmeBrand reinforcement and USPsCompetitor Positioning

Basket Abandonment

Engagement

Automated Welcome Programme

Automated Welcome Programme

March 2007, Trends “Realizing The Life-Cycle Marketing Vision”

• Lifecycle Marketing is identified by Forrester as the most advanced form of customer marketing and involves all approaches to customer marketing.

• Lifestage programmes, from Welcome thru Xsell to Win Back, are automated and optimised.

• Lifestage programmes, supported by dynamic content and behavioural information, achieve maximum relevancy.

• The outcome will be increased Lifetime Value.

Extending Customer Lifetime Value with Lifecycle Strategies

The 6 Stages of Customer Lifecyle

• Tactical• Engagement• Purchase• Re-Enforcement• Retention• Reactivation

Behavioural Search Criteria

Holiday specific search criteria will drive the content and trigger

Saved Event Mailings – Travel Industry

Client: Haven Holidays Campaign: – Saved Search Data Logic: - 7 days after the event No purchase

Results: • Revenue increased by +168% • Increased conv. +196%

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2010 Bookings

2011 Bookings

Extended Product Specific Basket Abandon Program

Client: Haven Holidays Campaign: Holiday Type driven Basket Process 24 hr emails

Results: • Revenue increased by +556% YoY

To make these programmes work…

1. An online database operating at a customer level

2. Engagement data3. Browser/web analytics data4. Customer RFM data5. Product and customer lifecycle

models6. Business rules

Thank you.