Cart Abandonment Email Marketing Silverpop Adobe

© 2010 Adobe Systems Incorporated. All Rights Reserved. Adobe Confidential.

Tamara Gaffney | Sr. Product Marketing Manager , AdobeLisa Moling | E-marketing Manager, DEMCO

Case Study: How DEMCO Recaptures Revenue through Email


Agenda

2 Introduction to DEMCO

4 Implementation Process

5 Results

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3 Developing a Plan / Considerations

1 Introduction to the Adobe Online Marketing Suite

6 Lessons Learned & Takeaways


Adobe® Online Marketing Suite

Bring together data from multiple systems into one integrated platform.Leverage flexible and open architecture to extend core capabilities.Provide insight into consumer behavior across channels.Optimize ad spend across and within channels.Deliver engaging, relevant experiences that drive conversion.Include industry best practices and implementation support.

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An integrated collection of products that allows marketers to optimize their online marketing.


Adobe Online Marketing Suite

4

PROD

UCT

S Platform

AnalyticsMulti-Source

Enterprise

Online

Internet

SOLU

TION

SRetail Media &

Entertainment

Financial Services B2B High

TechTravel &

Hospitality

ConversionOptimization

AudienceOptimization

AdvertisingOptimization

SiteCatalyst

Discover

InsightSurvey

SocialAnalytics

Genesis DataWarehouseDigitalPulse

Optimization

Search & PromoteScene7

Recommendations

Test&TargetSearchCenter + Publish

Demdex


Case Study: DEMCO

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ChallengeQuick development and deployment of remarketing email campaign with limited staff and resources in less than a year.

SolutionCombine Adobe SiteCatalyst, Adobe Genesis and Silverpop® Engage to automate email remarketing program.

Results• Implemented Adobe integration within 4 weeks

• 24% conversion rate• Avg. $7.46 in lost revenue recaptured per conversion

• Unsubscribe rates less than 0.2%


Do you deploy cart recovery emails?

Still quite a few who have not deployed this email remarketing technique.

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Agenda

1 Introduction to the Adobe® Online Marketing Suite

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5 Results




Presenter

Lisa Moling, E-Marketing Manager Develop & implement e-marketing programs including email

marketing, online promotions, web analysis, paid search, social and CRM

Over 15 years online and direct marketing experience in diverse industries including tourism, insurance and industrial safety.

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About DEMCO Based in Madison, WI Sell library supplies

Originally a catalog company Now web is a primary order source

B2B, but respond like consumers


Agenda


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5 Results





Challenges and Opportunities

What is your cart abandoned rate? DEMCO below average at 30%

Will it be worthwhile to automate abandoned cart triggered email program opportunity to recover lost revenue? DEMCO did the math and

decided YES!

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Actually Challenge = Opportunity!


Step 1: Develop a Strategic Email Plan

More sophisticated and targeted email program – increased relevancy!

Promotional Emails“Push” info to

customers• New products• Sales prices• New catalogs• Purchase incentives• Contests/

giveaways• Info tips• Trade show pre-

promotion

Triggered EmailsResponse to customer

action, prompt an action, close the loop

• Requested a catalog• Signed up for emails• Abandoned a

shopping cart• Made a first

purchase• Requested a sample• Attended a

workshop• Requested a quote

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Step 2: Assess capabilities & articulate goals

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•“Batch & Blast” emails via a small business email service provider.•Using Adobe SiteCatalyst•Read research studies which demonstrated conversion rates on abandoned cart emails could be 4-6x conversion rate of a “regular” email

Current Capabilities

•Increase sales by optimizing conversions – Identify and market to cart abandons•Free up manpower by automating routine tasks - API integration allow us to automate opt-outs/opt-ins from our email system to our business system•Track Revenue per Send - New email service provider could integrate with web analytics so we could track email sales

Program Goals

Gap analysis demonstrated that we needed to search for a new ESP


Open Shopping Carts ProgramStrategy Send an email that will prompt them to check out their order

within a limited timeframe. Place order within the next week and will receive tiered promo or a free gift--test which gets better conversion.

Qty 25,000Open rate 60%Opens 15,000CTR 40%

Clicks 6,000Potential RR 15%Orders 900AOV $215Potential

Sales$193,500

Sales/Email $7.72

Step 3: Develop the Offer

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Develop Offer and Estimate Incremental Revenue Analysis demonstrates potential huge revenue win.

Tamara Gaffney

Perhaps too many numbers on this. Should probably build with relevant information called out.


Q3/Q4

2008 2009 2010Sales Triggered Emails $500,000 $750,000 $1,000,00

0Cost (ESP, Analytics Integration,

etc.)

$50,000 $55,000 $55,000

Revenue/Email Spend $10 $14 $18

Step 4: Demonstrate the ROI

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Expecting ROI Positive in year 1!

Tamara Gaffney



Message #

Days after cart filled

Message Offer

A 1 Courtesy reminder – you still have items in your shopping cart

None

B 3 Important notice – we have reserved these items for you

None

C 5 Special offer Free tote with offer

Step 5: Develop Creative Strategy

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Started with a 3-step messaging approach…

Tamara Gaffney



Message A – 1 day after


Message B – 3 days after


Message C – 5 days after


What about the “big brother” theory?

Timing Send out emails next day

after cart is abandoned IT programming – what was

feasible Market we serve – libraries &

teachers

Unsubscribe rates less than 0.2%

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Tamara Gaffney

Lisa needs to fill in some data here.


Agenda


5 Results






How do the systems work together?

Launch promotional emailSystem: Silverpop

Go to demco.comSystem: Adobe

(Genesis)

Launch abandoned cart emailSystem: Silverpop

Data feeds:• Abandoned cart date• Product purchase date• Product IDs• Shopping cart URL

(business system)

Web visitors(from search, bookmarks, etc.)

Go to demco.comSign in & save cart

Launch abandonedcart email

System: Silverpop

Data feeds:• Abandoned cart date• Shopping cart URL

(business system)


Timeline

11 months start to finish

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Develop email planResearch Email Service Providers (ongoing since fall)

Sign new contract ESP & Adobe Genesis integration

Feb

Mar

Apr

May

Jun Jul Au

gSept

Oct

Nov

Dec

Sell internallyGet approval

Start w/new ESP22

IT programming - Changes to cookie, cart ID in URL, carts from signing inCreative development

Create triggered rules & testing

JanLaunch


Agenda


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5 Results


Cart Email ADay 1

Cart Email BDay 3

Cart Email CDay 5 AVERAG

EOpen Rate 40% 39% 32% 37%

Click-to-Open 44% 47% 28% 41%Click-thru-Rate 18% 18% 9% 15%Conversion Rate

22% 15% 24% 20%

Sales/email $8.60 $8.40 $5.04 $7.46

Step 5: Analyze Results & Determine Follow-up Cadence

Conversion rate is just as high on the first email as it is on the last email – without an offer

Tamara Gaffney



Results: Compared to Promotional Emails

These relevant and timely emails had significant results!

Abandoned Cart Emails

All Promotional

EmailsComparison

Open Rate 37% 8% 4.6x

Click-through rate 41% 14% 2.9x

Conversion rate 20% 5% 4.0x

Sales/email $7.46 $.08 97x


Results: Abandoned Cart vs. Broadcast Emails

High % of sales relative to volume

Relative VolumeAbandon Cart

Emails0.3%

Promotional Emails99.7%

Relative Sales

Abandon Cart Emails18.6%

Promotional Emails81.4%


Agenda



5 Results





Lessons Learned

Add in other abandons, not just those triggered by email

Added an opt-out flag for abandoned carts only

Don’t say “we’re going to empty your cart!”


Testing & potential improvements

List the products in the email, with thumbnails

Testing offers ($ off, % off, different free gift)

Testing timing of offers (# of days, # of emails)


Key Takeaways

1. Create your overall marketing plan

2. Build an ROI case

3. Use an email service provider that integrates with Omniture

Develop a Plan

4. See if you can identify other sources of conversion loss aside from email initiated (signed in, save cart, started order)

5. Go through ESP & integration processes

6. Work with IT group on finishing touches

7. Develop creative8. Test, test, test

Launch

9. Measure results

10. Identify improvement areas

11. Expand to new areas of conversion optimization

Measure, Improve, Expand


Capturing Lost Revenue

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Don’t let sales and customers slip away! Email Remarketing can capture revenue you missed the first time.


Q&A

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Stop by booth #XXXFor…TBD


Business

Cart Abandonment Email Marketing Silverpop Adobe