Posts tagged Email Marketing

Personalized Marketing: What You Need to Know!

Personalized Marketing

162819605 250x166 Personalized Marketing: What You Need to Know!Nowadays, life is flying by us all so fast. So many companies, advertisements, and messages – it’s difficult to keep up. However, if companies and organizations knew how to reach the consumer on a personal level, people actually pay attention. You might have the exact product or service a customer desires, but if you do not appeal to their senses and emotions, they may never know it. If you learn to direct your marketing efforts in such a way that creates a spark, even if only briefly, you can create something that grabs a person’s attention enough to focus on your brand. Then, you will have a window of opportunity to take them further into your own brand and connect their emotions and senses to what you have to offer.

Personalized E-Mails

Did you know that “61% of consumers feel more positive about a brand if personalized marketing is used”? When a consumer receives an e-mail related to something they were recently researching they are more likely to engage in that email. For example, if a consumer visited a college website and signed up for courses, they may get an e-mail about purchasing textbook for a discount. They need textbooks and you’ve made it easier for the student to reach the ultimate goal of gaining an education.

SOURCE:Steve Olenski, What Jaws, Brand Managers and Consumers Have in Common.

Mass Marketing

Nearly half (44%) of all consumers are less responsive to non-personalized messages. Think for just a moment: if you receive a marketing piece from a brand you have had a personal experience with, and the piece references your experience, you are more likely to engage that brand than if you receive a mass marketing piece from a brand you have never engaged with.

SOURCE:Steve Olenski, What Jaws, Brand Managers and Consumers Have in Common.

Personalized Discounts

More than half (53%) of all consumers are very likely to purchase something from a company when a brand personalizes marketing through digital communications. If you’ve been shopping at a particular store and you give them your contact information, they will send you coupons to entice your return. You’ve already been there, so chances are, you’ll be back again.

SOURCE:Steve Olenski, What Jaws, Brand Managers and Consumers Have in Common.

Maybe a consumer will get a personalized marketing message that directs them to a website that includes their name in the web address. (Personalized URLs also known as PURLS.) People absolutely love to see their name in lights and companies are well aware of the power of this personalized marketing technique that’s becoming increasingly more popular. Is your company privy to the newest personalized marketing platforms?

From Mail Print’s perspective when we send highly personalized marketing pieces from our company our phones ring the week following the delivery of that mail piece at a rate 25% more than normal.

Brand Trust

If a consumer trusts you, they probably love your company, brand, and products or services and may not even know it. Gain their trust and you will likely gain their business. Are you aware that more than half (52%) of all consumers trust brands that enable them to share their marketing preferences more than brands that do not?

If you can put yourself and your company in your target market’s shoes, then you will know exactly what to create and what to avoid. You will save precious time and lots of money also. It’s a marketers dream. Consumers need to trust your brand, know your logo, and feel good about what you offer to them. If you can accomplish all of that, everything else is cake.

SOURCE:Steve Olenski, What Jaws, Brand Managers and Consumers Have in Common.

Quit Making Up Response Rates – Measure the Right Way or Not at All

160910502 250x166 Quit Making Up Response Rates   Measure the Right Way or Not at All Figuring out how well people are responding to your marketing campaigns is vital if you expect to see a positive return on investment from what you spend on advertising. Too many people create large advertising initiatives, involving different types of media, without having the infrastructure to accurately measure the response rates of cross-media marketing campaigns. When you are able to track what is working and what is not working, you can route your marketing dollars towards what you have had verifiable success with in the past.

Each marketing channel has its own unique challenges which you need to be aware of and have a plan detailing how you are going to get a potential customer to visit your website, make a purchase, request more information, attend a webinar, or setup an appointment.

Direct Mail Marketing

Setting up a direct mailing campaign will get your message in front of your target audience. Generally, you will need to have a special website specifically for direct mailing recipients, or sub-page of your current website which is featured prominently on the card/letter. When someone visits that specific link, you will have your first bit of information to work with.

Every visit you get is from someone looking at what was mailed to them, then actually going to your site. While this is a good start, you still need to convert that visitor. This is where knowing the response rates of cross-media marketing campaigns is crucial since putting something in their mailbox has a cost. Your visitor needs to have their own unique way of making a purchase or generating a lead, distinguishable from any of the other methods you are promoting. If this is for a website, a separate order form should be available for these visitors to use from the link advertised on the mailing material.

Email Marketing

A successful email marketing campaign may look similar to a good direct mail marketing campaign. Getting a good “open” rate is a great metric to keep track of since an unopened email will never result in a sale. Once the customer opens it though they need to be convinced to click a link taking them to your site which identifies them as having come through an email. After they have gotten to your site and they decide they want to buy, they should still be tracked as an email user. They should also be tracked as to how they were first introduced to your organization.

Digital Campaign Marketing

Tracking visitors in a digital campaign is relatively easy since you can specify what link you want a visitor to go to once they click your ad. The important metric here is your (clicks:impressions) rate. If you are paying by the impression, you want as many clicks as you can get. If you are paying by the click, you want to make sure that your ad copy spells out extremely clearly what a visitor should expect on your site. The companies you purchase these ads from will generally keep track of these rates for you, all you need to do is get the visitor to a checkout page or lead generation form that is only easily accessible by clicking one of these ads online, as opposed to your generic checkout page.

Taking all of these metrics together will give you an accurate picture of the response rates of cross-media marketing campaigns, and show you where you should be targeting more heavily in the future.

Stick to Direct Marketing Principles and Increase your R.O.I.

146899919 250x314 Stick to Direct Marketing Principles and Increase your R.O.I.Profitability Isn’t a Guessing Game

Its vital that you have a certainty in numbers through response rates and return on investment estimations when investing in a marketing strategy. You cannot calculate response rates by using the internet to send out SPAM, create advertisements, or create hash tags on Twitter. Sure, these methods of indirect marketing work, but there’s really no way to tell how well they actually drive revenue.

When you have the correct percentages on how well a particular form of direct marketing actually works through response rates of cross-media marketing campaigns, then you will know who to target, and who not to target. Why waste money and time sending out fliers and catalogs to those who will never purchase anything from you.

Time is Money

Time is money, and there may be some really cheap or even free forms of advertising available, but even that is wasting you money if it’s not reaching the right people. When you have lists of who to target, you’ll be more confident in sending out and receiving various forms of direct marketing.

You must communicate directly to the consumer and engage them emotionally. If you aren’t giving them a good reason to donate to your non-profit organization, or if they don’t ‘feel’ like they are getting something out of switching from another company to yours, then you have wasted your time as well as theirs.

Types of Direct Marketing

Let’s review those direct marketing principles that can be measured in order to receive an abundance of response rates of cross-media marketing campaigns:

  • Cell Phone Text Messaging – This type isn’t as ‘direct’, but you will be able to calculate your return on investment because of who uses the promotion or coupon when they tell you they are using the coupon from their cell phone.
  • E-Mail - Generating e-mail lists is simple with a great web site. When you know how many e-mail addresses you are targeting, then you will know who is buying and who isn’t.
  • Fliers – small fliers that have specific information listed on them that is personalized to each individual and sent to their homes is more powerful than general fliers that are sent out to everyone in a particular community or city.
  • Catalog Distribution – Once again, with catalogs, you are sending them out to those target customers, and if they order, you can calculate the percentage of people that are purchasing versus those who aren’t.
  • Personalized URL’s - Normally we wouldn’t admonish our clients to use personalized URL’s, but they are obtaining momentum and can be used as a direct marketing tool. Using a potential clients name as a response channel on a direct mail piece that takes them to a specific landing page will create curiosity and cause them to click on it because they see their names.

Everyone has a preference when it comes to purchasing materials and services. Colleges send out a variety of advertisements, but they can easily cut costs by using our tried and true methods of calculating response rates of cross-media marketing campaigns. Some students will never pay attention to mail they receive, but they just might be wiling to open it if it’s a simple flier or a promotional letter.

A direct advertising campaign that is executed correctly with a concise call to action can guarantee a positive return on investment. Why invest in indirect marketing whether it’s the time you spend on Facebook or Twitter, or the money you spend on hiring someone to do it for you? Only invest in those techniques that provide a serious return on your investment.

Integrate Direct Mail into your Marketing and Increase Response

1007487371 250x187 Integrate Direct Mail into your Marketing and Increase ResponseThe growth of modern online marketing and its integration with traditional advertising has created a communications overload, in which the average consumer may hear or see as many as several thousand marketing messages every day. Marketers and business owners looking to overcome this ground noise must develop effective cross-media strategies. Cross-media marketing campaigns use different products and properties to promote each other by way of multiple media. This might include direct mail, email marketing, radio, television, podcasts, social media posts, print ad campaigns, landing pages, and more.

The use of direct mail has shown significant positive feedback when it comes to measuring the response rates of cross-media marketing campaigns. According to a recent statistic in Deliver magazine, customers who were sent a printed catalog to the magazine’s website not only logged more time on the website, but also purchased 28% more of the product on average than customers who were not mailed a printed catalog.

This is not to say that direct mail should replace online marketing, but rather that the two should be integrated into a combined marketing campaign. Direct mail is most effective when it drives the customer to a website or landing page. Online marketing is most effective when the customer interacts with an online entity like filling out a form, giving the marketer or business owner product or service leads, or by sharing the site through social media. The key to the successful cross-media marketing campaign is that integration.

Increasing response rates of cross-media marketing campaigns does not have to be expensive or time-consuming. Something as simple as direct mail postcards can help build a business when integrated with online marketing tools.

Two great ways to integrate:

1. Use a postcard campaign to collect email addresses and basic information
Email addresses are a cost-effective way to keep tabs on your current and potential customers and clients. Several popular email services, such as Mailchimp, even allow the user to track email openings and clicks, so the sender can better understand a campaign’s effectiveness. However, you can’t track email responses without obtaining emails and a postcard campaign is a great way to reach out to potential customers who would otherwise never know how or where to register.

2. Have postcards point potential consumers to a landing page
Landing pages are critically different than a website’s homepage in that a landing page lists only the information necessary for your selling point, whether it’s an offer, special, or product promotion, whereas a homepage often lists more products and information that might be otherwise distracting. Websites allow browsing, landing pages are a direct sales pitch; they guide the customer through a sale or intended interaction

The two major benefits of direct mail:

1. Ability to target the ideal consumer
Few products and services are attractive to everyone. By outlining the characteristics of a company’s best customers, a model of who best to target in a direct mail campaign can be achieved. This could mean targeting by gender, age, income level, and more, allowing a mailing campaign to reach the people who might be most receptive.

2. Increase your responses
While yes online marketing strategies are awesome, great response rates of cross-media marketing campaign consistently point to the necessity of direct mail. This is because direct mail continues to be opened at greater rates than email advertisements.

Whether you are in the marketing business or are a business owner looking to increase company marketing effectiveness, integrating direct mail and online advertising is the best way to influence response rates of cross-media marketing campaigns.

The Hidden Value of Marketing Automation Software

resize 250x237 The Hidden Value of Marketing Automation SoftwareMarketing automation integrates and automates the scheduling and tracking of marketing campaigns. Marketing campaign automation helps businesses integrate processes that have previously been performed manually, allowing them to become much more efficient. In addition, marketing campaign automation also creates opportunities for numerous new marketing processes that boost the cost-effectiveness, efficiency and reach of overall marketing efforts. 

VISIBLE BENEFITS OF MARKETING AUTOMATION

One of the biggest benefits of marketing campaign automation is that it reduces and eliminates a multitude of repetitive tasks associated with the marketing process. Marketing automation software can easily divide and classify customers, providing customer segmentation and subsequent campaign management. This type of automation simplifies identifying target audiences and measuring the efficiency of allocated resources.

Beyond segmentation, marketing automation software can be used to communicate with prospects in a variety of ways. An email management campaign can be developed to send pre-formatted messages and content about products and services. Marketing automation software can be used to generate responses that further segment the targeted audiences, and send additional nurturing communications geared to meet the needs of specific individuals within each group.

Even when prospects do not respond, marketing automation software can identify where prospects drop off, and help retain them with ongoing targeted messages. Marketing automation software is the best solution for developing and implementing email marketing, direct mail and other channels to manage sales campaigns that drive revenue. Sales benefits of marketing campaign automation include increased lead conversion rates, increased average sale, increased overall sales and better forecast accuracy.

HIDDEN BENEFITS OF MARKETING AUTOMATION

One of the biggest hidden benefits of marketing campaign automation is that it allows marketers to do less and be more. In recent years marketers and organizations have grappled with the challenge of needing to reach thousands, if not millions, of prospects utilizing integrated communications that reach across multiple channels at numerous times. Beyond the dizzying magnitude of this task alone, these prospects must be communicated with in a manner that is personalized and unique to their needs and preferences. Without marketing campaign automation, meeting these objectives would require an immense allocation of time and man hours. However, by automating these processes, marketers are able to focus more time and resources on fine-tuning existing campaigns for maximum efficiency and implementing additional marketing efforts.

Management Guru Peter Drucker once wrote “Marketing is the distinguishing unique function of the business.” OK, no pressure there. Yet, if you were to ask any marketer or their boss what marketing entails they will tell you that marketing encompasses much, much more. Marketing is responsible for defining the business identity and creating a need for the businesses products and services in the minds of the targeted audiences. While consistently remaining under budget and within deadlines. In addition to streamlining processes and maximizing budgets, marketing campaign automation takes the guess work out of many marketing functions and as a result can provide the reliable benefit of lasting stress relief.

Marketing campaign automation provides an additional hidden benefit, which is perhaps one of the most important objectives of any business, and that is to have happier, more satisfied customers. Marketing automation can eliminate frustrating communications that fail to meet customer needs, and it can also help marketers anticipate customer needs and respond accordingly. In addition, marketing automation programs can reward customers and keep them coming back for more. Marketing automation can help marketers respond to customer needs in real-time, unlike with manual systems where a time delay can often lead to an unhappy customer.

Marketing automation holds many more visible and hidden benefits. For more information, visit our Marketing Automation Buyer’s Guide page.an

How to Use Direct Mail to Kick Emails Butt

1223972861 250x235 How to Use Direct Mail to Kick Emails ButtFor years, companies have been capitalizing on the power of print advertising to attract customers in cross-media marketing campaigns. Cross-media marketing helps companies take advantage of the variety of different media formats that are available for modern advertising: of these media components, print media is supreme in many regards. Although email marketing is popular today, there are key areas where print mail is still much more effective at helping a company increase response rates of cross-media marketing campaigns.

Improved Response Rate And More Competitive Costs

Because print media provides a physical piece of advertising that buyers can hold in their hands, it enjoys a better rate of response than email. According to a study conducted by the Direct Marketing Association, direct mail campaigns to existing customers have a response rate of 3.4%. Similar email campaigns had a response rate of only 0.12%.

In the same study, the DMA showed that printed media also had a better cost per lead or order. Print mail campaigns had a cost of $51.40, while e-mail campaigns had a cost of $55.24 for each lead. This is especially important for businesses that have a set budget for their cross-media campaign and want to ensure that they stay inside of this budget, an issue that is paramount in the minds of today’s business professionals that want to raise response rates of cross-media marketing campaigns while keeping costs down in a struggling economy.

Advantages In B2C Marketing

For B2C marketing, an arena in which many organizations both small and large operate in, print media has many advantages over email marketing. According to a survey performed by Target Marketing, 34% of direct response marketers reported that printed mail campaigns delivered the best ROI in terms of customer acquisition, compared to email, which was selected by just 25% of those marketers as being best for B2C. This is in part because of the ability to personalize printed media through handwritten notes or signatures, something that email cannot do.

Printed media is also effective to improve response rates of cross-media marketing campaigns because of how many people still rely on printed materials mailed to them to either decide where they will go for a purchase or actually make the purchase. Integris marketing cites a study by the U.S. Post Office, which reports that 80% of consumers view and/or read their direct mail, and 50% of households have ordered products from catalogs. Conversely, many people have spam filters that keep out marketing emails, or simply do not even bother opening these types of digital messages and just move them right to the trash.

More Resonance Among The Highest Earners

Even for companies that do not market B2C, they are often targeting a specific business owner or high level executive for B2B media marketing campaigns. For these top-earning Americans, print media is extremely important. Adage.com reports that 93% of this population read hard copy magazines, while less than 30% read them online. Similar statistics were shown for the reading of newspapers. This means that if you are targeting wealthy business owners or financial officers, you are more likely to increase response rates of cross-media marketing campaigns using print media than digital media.

Sales professionals and business owners have numerous options when it comes to pursuing new business through media. Despite its age, print media remains a hugely vital aspect of any advertising effort. Use print media wisely in tandem with other media elements today so that you can grow your sales by improving the response rates of cross-media marketing campaigns.

 

Customer Experience Soars from 20,000 Feet

plane Customer Experience Soars from 20,000 FeetAir New Zealand started in the ‘70s but is not stuck in the ‘70s. It knows batch and blast emails are a thing of the past. Instead of sending generic emails about promotions, it sends automated, personalized emails prior to, and upon return, of each of their customer’s flights.

Air New Zealand transformed its entire business in 2004 when if firmly placed the customer at the front of all its processes. The airline started from the outside and worked its way in by first purchasing new carriers, then lower fares, simplifying booking processes, and then shifting to internet sales and loyalty programs.

Sending Customer Emails of Value

Keeping with the theme of putting its customers in front of all processes, Air New Zealand built a powerful pre-flight reminder campaign. The email contained dynamic content that generated three popular messages that made it both pertinent and engaging. First the email included a personal greeting from and photograph of the actual Air New Zealand flight attendant who would be on the traveler’s specific flight. Many travelers would print out the email and show it to their attendant when boarding the plane.

Secondly, the email recapped the customer’s itinerary and lastly it offered a five-day weather forecast, which helped their customers plan and pack accordingly.

The pre-flight emails had an average open rate of 69 percent and an average click rate of 38 percent. The post-arrival emails had an average unique open rate of 62 percent and an average click rate of 40 percent, according to this Silverpop case study.

Engaging Customers with Humorous Video

Air New Zealand also gained customers, laughs, and massive viral exposure on the web with their series of in-flight instructional videos such as this one featuring Richard Simmons or this one using animation.

The animated video brings the safety pamphlet to life using animated versions of Modern Family’s Ed O’Neill and Melanie Lynskey from Two and Half Men. Making the commitment to regularly change their videos and include new stars and cameos keeps travelers tuned in to the safety message rather than sleeping through it.

The airline won awards for its innovative, quirky, and sometimes risqué videos.

Dynamic ROI through Dynamic Content

I can’t rave about Air New Zealand’s dynamic publishing push in its marketing because I don’t believe it or any domestic airline currently employs variable data printing. However, the possibilities for VDP in airline marketing is ripe.

Airlines could print custom booklets or magazines for all its platinum level members and populate them with articles on their favorite vacation destinations, favorite sports, favorite wines and the like. Imagine the loyalty that could be built by stroking the egos of men and women who fly 200,000 miles a year by handing them a magazine filled with the their name and family member’s names in print as well as content on everything of interest just to them.

How is your company dynamically generating your email and print content? Are you making your content personality rich or is it the equivalent to a fast-food restaurant’s hand washing training video?

 

8 Ways You Can Start Mining For Data

buried1 250x296 8 Ways You Can Start Mining For DataHave you ever felt discouraged by data? Well never again! Today’s marketing is all about reaching your target market in an effective way. Whether that is by email, direct mail or social media, you need to target your communication and personalize it to the individual through data. However, collecting and analyzing data can be so overwhelming that soon you could be buried by it. So the big question is how do you begin collecting adequate data to reach your target market?

While you may aspire to have the marketing sophistication of P&G or an Amazon.com, there are steps you can take to get started right now. Jeff Hayes, President of Info Trends, shares 8 points.

 

1. Make an inventory of your customer touch points.

Look beyond your customers’ age and gender. Dig deeper to find what really makes your customers tick. Collect data on how often your customers shop, what their average purchase is per visit and how long your customers spend in your establishment.

2. Figure out what data you have, what data you need and how best to collect it.

All fantastic marketing campaigns start with a game plan. Establish what data is already being collected by your P.O.S. or other systems, and then analyze it. Once you know what you are collecting, it is time to establish what you would like to know about your customers and then devise a solution to collect that data.

3. Collect and compile your data for on-going analysis.

The more data a company can gather and know about their customers, the better! In the beginning, make sure you data is compiling accurately to your analysis system. You do not want to waste time or data by not being able to format it correctly.

4. Analyze your data and develop a market segmentation scheme.

“Developing a new market segmentation scheme requires a structured process that yields actionable results. A new market segment must respond differently to variations in the product, marketing, and distribution mix compared with other customers in the market.”

5. Test various messages and promotional offers, and measure the impact.

Survey or interview your customers. A company cannot reach their customers if they do not understand their needs or desires. Send out different types of flyers and discounts to measure the response rate to each promotion.

6. Continue to refine your data collection, analysis and messaging.

“Why do we fall? So we can learn to pick ourselves up.” Hardly any project runs according to plan. Take the time to smooth out the bumps and get rid of the dead weight.

7. Get senior management involved – there will be cost and may be some internal “turf” issues that need to be resolved, plus you want their buy-in when the data challenges traditional assumptions.

The last thing you will want to do when working on a new campaign or project is to step on anyone’s toes. Talk through your plans and processes to make sure everyone is on the same page. This way the chances of a dispute are held to a minimum.

8. Consider working with an agency or consulting firm, especially to help you get started.

You don’t know everything and that’s okay. It is alright to reach out and ask for help. Smart people learn from their mistakes, but wise people learn from other people’s mistakes.

 

SOURCE: Market Segmentation, Info Trends, 2013

SOURCE: Batman Begins, Christopher Nolan, 2005

To Pick the Right Campaign Metrics, Ask the Right Questions Prior to Launch

157000899 250x170 To Pick the Right Campaign Metrics, Ask the Right Questions Prior to LaunchSavvy marketers who wish to remain employed measure the efforts of their email, print and multi-channel campaigns. Amateur marketers wing it or use the wrong metrics in an effort to make the right decisions.

Visit any social media or integrated marketing agency lunchroom and you’ll hear the words click-through, long-term bounce rates, subject line pull, open rate and conversions being passed around like salt.

Walk into a top 50 mailer and you’ll hear teams talking about churn, expense-to-revenue ratio, repurchase rate and lead-to-sale conversion.

The best marketers select clear, concrete goals for their campaign and then choose the metrics that tie directly to these goals and set tracking mechanisms in place.

 

Direct Mail Campaign Metric Rights and Wrongs

The problem with only focusing on response rate as a metric is that it doesn’t tell you much about campaign effectiveness, according to Ruth Stevens of the Lenskold Group.  There are simply too many variables involved:  the list, the offer, and the creative.

Stevens suggests focusing on a more useful metric, like cost per lead.

 

Metrics for B-to-B Direct Marketers

Lead Generation Direct  Sales
, E-commerce, Mail Order Retention Marketing
Response rate Response rate Repurchase rate
Cost per lead Cost per order Lifetime value
Inquiry-to-lead conversion rate Average order size Churn
Lead-to-sales conversion rate ROI
Expense-to-revenue ratio (E:R)

SOURCE: LENSKOLD GROUP, 5 Essential B-to-B Direct Marketing Metrics by Ruth Stevens, June 8, 2011

 

Beware of Vanity Metrics

Vanity metrics sounds good but mean little. They are slung around in client meetings like Stoli in a Mad Men scene but they are more intoxicating than business

sustaining. Vanity metrics, including

  • How many names on the email list?
  • How many likes on Facebook?
  • How many followers on Twitter?

It doesn’t matter if you purchased an 80-million name email list for $800 if 80% of those names haven’t looked at an email in the past year or only 5% of the contacts match your Ideal Customer Profile. The metrics that might matter more across the sales pipeline, according to Hugh MacFarlane, author of The Leaky Funnel, are:

  • Sales qualified leads
  • First meetings
  • Proposals
  • Closed Deals

 

Proxy Metrics Can Help if Agreed Upon Upfront

What is a proxy metric? It is a metric used to “stand in” for a direct measure, when direct measurement is not possible. For example if a PR  or marketing company places a story in the New York Times and in the Waste Management trade journal, The New York Times carries more influence and clout for the client and his product than does a trade journal because of reach, readership, credibility, etc.  Therefore the agency can plug in an arbitrary number in its client reporting valuing this placement as compared to an easier to obtain trade journal placement with less customer focused impact.

In a B-to-B environment the revenue pay-off can take many months or even years. Proxy metrics come in handy to assess campaign productivity before the sales cycle has ended.

Robert Reneau of National Semiconductor assigns dollar value to each interim campaign outcome, long before the activity has resulted in a sale. When a customer downloads a piece of collateral, for example, they credit the campaign with $1,000. A product sample request? That’s $5,000. A lead entered into the sales force automation system earns $50,000. Though these numbers seem arbitrary, over time they have helped National correlate actual sales results.

Netherland’s Retailer Personalizes 98% of Outbound Email

I recently read a case study on one Holland retail giant with 84 million web visits a year from 1.5 million customers, they did what some might deem impossible. Wehkamp.nl began having one-on-one conversations with all 1.5 million customers. By doing so the mega retailer infused relevancy into its marketing campaigns on a massive scale and were rewarded with a 271 percent boost in sales per email blast.

The case study, by Responsys, discussed how the company with more than 100,000 products and 5 million shipments a year addressed the gap between old and new school marketing. By partnering with data mining firms that could integrate its CRM data with core customer metrics,Wehkamp.nl was able to quickly and precisely send compelling content and product placements to customers based on their behavior and take it to a different level by aggregating the behavior of similar customers.

 

The Nuts and Bolts of Personalizing Emails

The email creative is built on a dynamic template. The VDP template eliminates the need to write and build hundreds of individual email versions. Relevant messaging and products are automatically filled into the header, call-to-action and body copy on a subscriber-by-subscriber basis at the time the email is sent.

The secret of the retailer’s personalization success is its ability to understand each customer’s motivations or needs and then build an automated targeting and personalization program around that insight. The program follows the standard site funnel: category or product list browsing (Browsed Overview Mail, or BOM), product detail browsing (Browsed Article Mail, or BAM) and product abandonment (Abandoned Cart Email or ACE). This approach is eloquently called “ACE, BAM, BOM.”

The data collection allows marketing to understand where a customer drops out of the purchase cycle and what that means. This information is used to reengage them. Layers of business knowledge are built into the system, therefore increasing the chance of conversion.

Wehkamp.nl’s leadership says the 98 percent personalization they’ve achieved with each customer drives immense value back into the business and sets the bar high for distance sellers and online retailers.

online retail, eretail, email, ecommerce, personalization

Personalization Results for Retailer

Wehkamp.nl’s personalized multi-channel program consistently performs at a 23 percent higher open rate than standard promos, a 68 percent higher click-through rate, a 67 percent lower opt-out rate and a 271 percent higher sales-per-send ratio.

To overcome the issue of precise targeting vs. volume marketing, Wehkamp.nl taps its weekly intelligence of its email customers by compiling it into a Sunday circular, which features the best content and products of the week. Nearly two times the sale-per-send than standard promotional mailers demonstrates the effectiveness of this effort.

 

SOURCE:  IBM