0-60: Lessons Learned from Creating a Scratch...0-60: Lessons Learned from Creating a Successful...

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1 More data on this topic available from:: 0-60: Lessons Learned from Creating a Successful Ecommerce Email Program From Scratch Susan Baier Jason Baer Multichannel Marketing Manager Senior Director, Interactive Services Esscentual Brands Off Madison Ave (Mighty Interactive) Sunday, March 4, 2007 More data on this topic available from:: 2 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Game Plan - Thinking Outside the Box Esscentual Brands Overview The Big Picture State of the State – Challenges Commitment to Change Email Strategy & List Management Measuring Email Success Test, Test, Test Other ROI Tactics On the Horizon Top 10 Lessons Learned Questions

Transcript of 0-60: Lessons Learned from Creating a Scratch...0-60: Lessons Learned from Creating a Successful...

Page 1: 0-60: Lessons Learned from Creating a Scratch...0-60: Lessons Learned from Creating a Successful Ecommerce Email Program From Scratch Susan Baier Jason Baer Multichannel Marketing

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0-60: Lessons Learned from Creating aSuccessful Ecommerce Email Program FromScratch

Susan Baier Jason BaerMultichannel Marketing Manager Senior Director,Interactive Services

Esscentual Brands Off Madison Ave (MightyInteractive)

Sunday, March 4, 2007

More data on this topicavailable from::

2© 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Game Plan - Thinking Outside theBox

Esscentual Brands Overview

The Big Picture

State of the State – Challenges

Commitment to Change

Email Strategy & List Management

Measuring Email Success

Test, Test, Test

Other ROI Tactics

On the Horizon

Top 10 Lessons Learned

Questions

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Esscentual Brands Overview

Two Key Brands

Vitabath – department & gift stores (nowonline)• Premium bath & body brand• Unique formula created in 1957 by

Europeanskin care specialists

• Bath and body gelee, sugar scrubs, lotion,soaps, travel and gift sets

Claire Burke – department & gift stores (nowonline)• High-quality home fragrance brand• Products that allow customers to decorate

with fragrance• Unique and decorative candles, fragrance

diffusers, room sprays, simmering oils,potpourri and home fragrance gifts

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State of the State – ChallengesFaced

Old E-Commerce Website

Both brands on one site – not easy to shop bybrand

Navigation not intuitive

Limited organic search capabilities

Temperamental shopping cart process

Not fostering positive consumer relationships

Consumer Considerations

Would they buy fragrances online?

Do we separate websites by brand?

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New direct-to-consumer focus

Separate e-commerce sites by brand

Plans for web/catalog interaction

Consumer Research/Segmentation

Online surveys – invitations in products/email

Segmented based on “why they buy” &preferences

5 Claire Burke audience segments

4 Vitabath audience segments

Website Redesign

Drive online sales (versus call center)

Intuitive navigation & check-out process

Optimized for search

Prominent email & catalog opt-ins

Commitment to Change

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Big Picture – How Does the ViewLook Now?

Multi-channel strategy fueling highly functionale-commerce sites

OLD website: ~150K e-commerce for 2005 year

NEW websites: 250K in December 2006 alone(950K e-commerce for 2006 year) + 500%

Site-wide conversion rate as high as 7.27%(benchmark 2.5-3.5%)

Online revenue increased+ 500% in 2006!

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Philosophy = Test, Test, Test & DoMore of What Works

Time of Day

Day of Week

Subject Line

From Line

Catalog only v. email only recipients

Offer Testing - % v. dollar off v. shipping

Format/Layout

Message Testing (Urgency)

Last Chance Reminders

Catalog Requests

Send Frequency (2x month)

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Measuring Email Success -Creating a Road Map

Sales per Day-

December 1 - December 31

41

27

59

41

36

27 32

33

31

32

30 34

25 31

19

20

13

11

7 5 9

31

27

17 2

6

18

18

62

30

19

10

6

0102030405060708090

100110

Fri 1

Sat 2

Sun 3

Mo

n 4

Tu

es 5

We

ds 6

Th

urs 7

Fri 8

Sat 9

Su

n 1

0

Mo

n 1

1

Tu

es 1

2

We

ds 1

3

Th

urs 1

4

Fri

15

Sat 16

Su

n 1

7

Mo

n 1

8

Tu

es 1

9

We

ds 2

0

Th

urs 2

1

Fri

22

Sat 23

Su

n 2

4

Mo

n 2

5

Tu

es 2

6

We

ds 2

7

Th

urs 2

8

Fri

29

Sat 30

Su

n 3

1

Date

Sale

s

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Audience – Buyer/ProspectSegmentation

Large endeavor – existing database and opt-insfromdifferent sources

Segment by response/brand

Interested in “why you buy”

5 Claire Burke segments, 4 Vitabath

ExactTarget web-collect on websitesOpt-In Sources Feed Database

CallCenterWebsite Catalog

Buyer/ProspectDatabase

Segment 1

Segment 2

Segment 3

Segment 4

Segment 4

Segment 1

Segment 2

Segment 3

Segment 5

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Audience – Buyer Input

Buyer Input Example: Name the new scent

Claire Burke fragrance

Email consumer survey asking opinion

+700 responses in less than 48 hours

Ensured “right” answer

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Audience – Buyer Input

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Email Strategy

Exclusive offer – focus on urgency

Product introduction emails

Catalog drop reminders

Offer reminders

Constant testing

Drive to onlineshopping cart

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Claire Burke Email Progress

Claire Burke Email Performance Over Time

07,500

15,00022,50030,00037,50045,000

1-O

ct-

05

2-N

ov-

05

3-D

ec-0

5

1-J

an-0

6

2-M

ar-

06

5-A

pr-

06

1-M

ay-0

6

2-J

un-0

6

1-J

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2-A

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6

3-S

ep-0

6

2-O

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06

3-N

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06

3-D

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6

3-J

an-0

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Blasts - Month - Year

Em

ail

s S

en

t

$0.00$0.10$0.20$0.30$0.40$0.50

Re

ve

nu

e p

er

Em

ail

Re

cie

ve

d

Emails SentRevenue per Email Rec'd

Claire Burke

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Oct Nov Dec Jan

Month

Re

ve

nu

e P

er E

ma

il

Re

ce

ive

d

2005/06

2006/07

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List Management – IncreasingOpt-ins

Originally 1-2K subscribers between brands Increased to + 10K per brand in 2006

Website opt-in prominent

Paired with catalog request

Opt-in incentives

Call center (discount for sign-up)

Sweepstakes/Freebies

• Online/offline partnershipwith Lucky Magazine

• Free Vitabath samples

• Free Scented Claire Burkebookmarks (500-1000 newaddresses/week)

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List Management – List Hygiene

Aggressive list cleansing – remove “inactive”subscribers each month (“inactive” = notopened/clicked in 3 months)

Testing re-opt-in campaigns

“Inactives” unlikely to purchase – why email?

Subscribers coded – entry point/purchase data

House File

Remove Inactives(monthly)

Pull Specific List

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Testing by Brand

Time of Day

Day of Week

$.21 perrecipient33.0%12.2%37.1%Friday

$.25 perrecipient28.5%10.7%37.5%Thursday

$.28 perrecipient29.6%11.5%38.9%Wednesday

$.22 perrecipient

29.6%11.1%37.4%Monday

SalesClick/Openconversionrate

Click ThroughRate

Open RateClaire Burke

$.18 perrecipient36.0%15.0%41.7%6pm

$.36 perrecipient34.1%15.0%43.8%2pm

$.42 perrecipient31.7%14.6%46.0%10am

$.38 perrecipient37.1%16.7%45.1%6am

SalesClick/Openconversionrate

Click ThroughRate

Open RateClaire Burke

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Testing by Brand

$.05 per recipient14.7%5.9%40.2%Friday

$.08 per recipient12.7%5.2%41.2%Thursday

$.02 per recipient12.4%5.6%45.0%Wednesday

$.07 per recipient15.9%6.6%41.8%Monday

SalesClick/Openconversion rate

Click ThroughRateOpen RateVitabath

$.71 per recipient19.9%7.9%39.9%6pm

$.28 per recipient19.0%8.0%42.3%2pm

$.63 per recipient18.9%8.1%42.9%10am

$.48 per recipient20.0%8.7%43.6%6am

SalesClick/Openconversion rate

Click ThroughRateOpen RateVitabath

Time of Day

Day of Week

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Testing by Brand

$.10 per recipient21.7%4.4%20.3%Claire Burke

$.00 per recipient21.1%3.4%16.0%Esscentual Brands

$.05 per recipient22.0%4.2%18.9%MyClaireBurke.com

$.02 per recipient23.1%4.2%18.4%Claire Burke SpecialOffers

SalesClick/Openconversion rate

ClickThrough RateOpen RateClaire Burke

$.45 per recipient31.8%7.7%24.2%Free Shipping for theHolidays

$.38 per recipient31.1%7.0%22.6%Free Shipping Plus 10%Off at Claire Burke

$.46 per recipient33.1%9.5%28.8%Exclusive Claire BurkeEmail Offer

SalesClick/Openconversion rate

ClickThrough RateOpen RateClaire Burke

Subject Line

From Line

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$.05 per recipient13.1%1.7%13.3%Vitabath

$.01 per recipient12.9%1.6%12.5%Esscentual Brands

$.03 per recipient12.9%1.9%14.8%MyVitabath.com

$.05 per recipient13.6%1.9%14.2%Vitabath Special Offers

Sales

Click/OpenConversionrate

Click ThroughRateOpen RateVitabath

$.24 per recipient17.6%3.5%20.0%Free Shipping for theHolidays

$.15 per recipient16.7%3.2%19.1%Free Shipping Plus 10%Off at Vitabath

$.09 per recipient16.1%4.2%26.3%Exclusive Vitabath EmailOffer

Sales

Click/OpenConversionrate

Click ThroughRateOpen RateVitabath

Subject Line

From Line

Testing by Brand

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Claire Burke Offer Testing –% off vs. dollars off

Open rate: 30.0%

Click through rate: 7.5%

Click/open conversion rate:24.9%

Sales: $0.36 per recipient

Open rate: 30.1%

Click through rate: 7.8%

Click/open conversion rate:25.9%

Sales: $0.22 per recipient

Open and Click through rates were similar. Yet sales on the $ off test were 64% higher than the% off offer

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Vitabath Offer Testing – % off v.dollars off

Open rate: 26.9%

Click through rate: 3.4%

Click/open conversion rate:25.9%

Sales: $0.19 per recipient

Open rate: 25.5%

Click through rate: 3.5%

Click/open conversion rate:13.9%

Sales: $0.38 per recipient

Open and Click through rates were similar. Sales doubled for the % test

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Format/Layout Testing –Promotional v. Letter

Open rate: 12.9%

Click through rate: 2.9%

Click/open conversion rate:22.2%

Sales: $0.00 per recipient

Open rate: 12.9%

Click through rate: 2.6%

Click/open conversion rate:20.4%

Sales: $0.03 per recipient

Letter format had higher click conversion, but lower sales. Use letter format forinformational notices when sales are not the priority

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Message Testing – Urgency

Open rate: 26.7%

Click through rate: 4.1%

Click/open conversion rate:15.2%

Sales: $0.34 per recipient

Open rate: 30.3%

Click through rate: 10.7%

Click/open conversion rate:35.3%

Sales $0.74 per recipient

Urgency in the message has always resulted in higher sales.

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Last Chance Reminder Testing –Claire Burke

Offer expiration email reminders sent two days before apromotion ends - sales significantly higher after reminderswere sent, though unsubscribes slightly increased. Plan tocontinue refining the process of promotional reminders.

PSVAPFREE Email% of Code Orders

1 2 3 4 5 6 7 8 9 10 11 12 13 1435% 7% 4% 3% 2% 3% 4% 1% 3% 22% 1% 3%

Day of Promotion

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Other ROI Tactics

ROI

Catalog Program

Search Engine Optimization

Paid Search (PPC)

Landing Pages

eBay Store

Affiliate Program

Retailers/Distributors

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Supplemental ROI Tactics –Catalog Program

Catalogs introduce the brand to prospects, drivewebsite traffic and grow the housefile list

Customized catalogs tailored to buyer segments

Constant testing

High-cost medium, so must drive sales

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Claire Burke® Holiday 06 Catalog

* Notice therelevantcatalog “tip”and push toshop online.

This spread targets consumers who use home fragrance to set a mood intheir home and give home fragrance gifts to set a mood for theirrecipients’ homes.

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Claire Burke ® Holiday 06 Catalog

This spread targets consumers who describe themselves as “candlefanatics”.

* Notice therelevant catalog“tip” fordecorating withcandles

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Claire Burke CommunicationCombinations

Two separate, randomized tests with control and testgroups receiving either email messages only, catalogonly or both confirm that email alone does notmaximize response

1.0

8.3

1.0

11.2

Email OnlyCatalog OnlyCatalog + Email

Indexed Response Rates

Test 1 Test 2

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Catalog Requests – Response fromEmail Invites

Added a link to “request catalog” to the emails startingin July, 2006. Given that many email recipients arealready on the catalog list, this has been a remarkablyeffective tactic.

Vitabath: Since July 2006

Catalog Requests from Emails: 602

Total Catalog Requests from PPC/Email/SEO: 6488

% from email: 9.2%

Claire Burke: since July 2006

Catalog Requests from Emails: 779

Total Catalog Requests from PPC/Email/SEO: 5471

% from email: 14.2%

CatalogRequest Link

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Paid Search (PPC)

Can track revenue by search term – dollars & metrics data

Test landing pages – drive sales or catalog/email opt-ins

Example: Claire Burke Holiday 2006 Potpourri Campaign

The ads and landing pages developed for “potpourri”terms.

The results listed are for the month of December only.

Only a snapshot of a portion of the campaign – ClaireBurke PPC produced 510 actions (322 sales and 188catalog requests/email sign-ups) from 9162 total clicks.

Similar landing page test for Vitabath. Overall PPCcampaign generated 500% ROI.

Continually working to best match landing page creativewithproduct-specific keyword, ad text, and offers.

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Google Adwords Listing Clicks Searches CTR Spend

Paid Search (PPC) Example – ClaireBurke Potpourri

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Landing Pages

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Organic Search

$10,287.42$3,384.65Sales Revenue

60354Inbound Links

1191482Clicks fromNaturalSearch

December ‘06December ‘05Vitabath

$10,820.63$4774.94Sales Revenue

59566Inbound Links

38081689Clicks fromNaturalSearch

December ‘06December ‘05Claire Burke

Clicks and Sales comparison – December ’05 toDecember ‘06

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eBay Store

eBay Store – not just closeouts

Tested with top 20 products for each brand

Testing buying models, pricing to discoverbest ROI yielding curve

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Affiliate Program – launched February 2007

Commission Junction

Home fragrance/bath exists in affiliate realm,but under-utilized

Retail Channels

New retailer website

Copy specific to retailers(margins, bulk purchases, marketing)

Atlanta showroom – wildly successful

Virtual showrooms

Communicate with retailers via email

Affiliate Program & Retailers

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Canadian market expansion – now servicingCanadavia existing e-commerce websites

Rolling out Canadian email program

Catalog program expansion

Build affiliate program

Expand eBay store

Develop API-enabled shopping cartabandonment email initiative

Roll out triggered post sale campaign

Increase search (paid/organic)efforts

Continue landing page testing

Optimize PR efforts for search

On the Horizon

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Top 10 Lessons Learned

Know What You Don’t Know

Determine Success Metrics and Keep Score

Once You Find ROI, Spend Money to MakeMoney

Know Your Customers

Test Everything, But Test Smart

Don’t Believe Results Will Be Consistent

More Channels = More Revenue

Urgency Works

It’s About List Performance, Not List Size

Frequency Works, To a Degree

Online, Email and Paid Search Deliver Best ROI

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Questions?

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Credits/Thank You

Susan Baier

Esscentual Brands

[email protected]

(480) 275-4206

Jason BaerOff Madison Ave (Mighty Interactive)

[email protected]

(480) 505-4501