Evolution of Email Marketing: 2016 Edition

Evolution of Email Marketing2016 Edition

Dave WoodbeckPresident & CEO

Three Deep Marketing

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Dave WoodbeckCEO, Three Deep Marketing Email: [email protected]

• Self-described recovering CPA, in a good way• Manages over 1,200 email campaigns per year• Sends over 245,000,000 permission-based emails per year• Works with B2C and B2B Fortune 100 to Small Businesses• Maps marketing to consumers’ behavior and buying psychology

Visit www.threedeepmarketing.com to learn more about the measureable digital marketing campaigns Dave and his team provide.

http://www.threedeepmarketing.com/

Evolution Happens: Transportation

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Evolution Happens: Photography

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Evolution Happens: Music

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Evolution Happens: Telephone

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Evolution Happens: Email

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Evolution Happens: Email… Is more like this!

Why Email?

Think email is dead? Businesses will use email marketing more often and more effectively in the

next 10 years than they have since the beginning of the internet.

Isn’t Email Dead?

That Would Be NO!

Cost Effective

Reach Your Customers

Nurture Repeat Business

Email Marketing has an avg. ROI of $38 for each dollar spend. One in 5 companies report an ROI of over 70:1. (DMA National Email Report 2015)

In 2014, email marketing was cited as the most effective digital marketing channel for customer retention in the United States. (eMarketer)

70% of people say they always open emails from their favorite companies. (Exact Target)

Why

Em

ail?

The Continued Evolution of Email

Evolving Strategies

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Where Are You on the Maturity Curve?

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5 Email Marketing Strategies You NEED to Master. And How They’ve Progressed

• Email Acquisition • Personalization• Journey Mapping• Email Value Through Scoring• Pulse and Respond

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The Measurement GapIf a tree falls in the forest and no one is around to hear it, does it make a sound? Rhetorical, I know – the point is why send an email if you can’t measure its performance or attribute success.

Measurement is a Large Gap

But, many don’t know how to align against revenue.

Opens and Clicks are important, but that’s not what executives care about.

Later in this presentation we’ll show you a measurement model that allows you to talk about value!

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The Measurement See-Saw

Opportunity Optimization

Budget Optimization

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Email Acquisition

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You Don’t Have a Database of Names if You Don’t Acquire Them

Evolve To Looking At Entire Journey To Capture Names

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Sources of Acquisition Across the Landscape

Online• Sign in/ Register• Newsletter sign up• Surveys• Competitions• Online Purchase• Write a review/ Rate Product• Contact Us• Quote Engines• Form Applications

Offline• Instore Purchase• Store Collections• Instore Orders• Voucher Redemption• Store Exchange/Returns• Consultations/Appointments• Postal Subscriptions• Call Centre Interactions• Post Purchase Services

Social Media Data Cards

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Single Sign-On

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Only Capture What You Need

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But As You Provide Value Ask For More(Progressive Profiling)

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Experiment Your Way To Success

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Wanted to

Increase

Experiment Your Way To Success

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Changed CTA

Brought White

Paper Up

• Changed ads and landing page CTA to “Talk to an Expert” increased conversions

• Moving the white paper to the top of page increased conversions

• Adding on page form vs pop up form increased conversions

• Improvements increased conversion rate by 36%

Personalization

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Treat People in Your Database Like People

Evolve past batch and blast

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What is: Batch and Blast?

Sending a single email to as many contacts as possible without attention to individual behavior.

Is it SPAM?

Not technically. But some argue that SPAM isn’t theoretically meat. Let’s just say you wouldn’t want to serve either to your guests.

Disrespectful!

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If we’ve taken the time and effort to understand our customer why would we disrespect them with a one size fits all email strategy?

Why do: companies blast then?

Because it is often the easiest thing to do.

Creative variation can get expensive.

Uncertain about the economic benefits of personalization.

All valid, so can we make it more effective?

Yes!

Consumer Journey Mapping

Image Source: http://brightspotstrategy.com/wp-content/uploads/2013/06/experience-map-activity1.jpg

How do: I execute more effectively?

And turn this….

How do: I execute more effectively

…into this!

Define Objectives | Set Goals

Company Goals and Objectives

These Are NOT Just Pretty Pictures

What is your Consumer...

THINKING

FEELING

DOING


Where can you IMPACT them on their journey?


Drive these into Campaign Strategies

PreN

atal

Post

Nat

al

Results: Campaigns that are personalized to the consumer lifecycle!

Stati

c Co

nten

t

Dyna

mic

Con

tent

The Content Game

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Your Approach to Content is UPSIDE down!

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We should be spending MORE time focused on the TARGET (i.e. the List) and MORE time focused on the SUBJECT LINE (i.e. the Offer).

Persuasion Equation

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Understand the decision making science of the brain.

Interrupt

Engage

Educate

Offer

A New Scoring Model

From the Past

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Everybody wants Engagement

A simple scoring model from decades ago delivers it best.

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Stop Fighting Over Clicks and Opens

Think about engagement and value!

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Did you know Marketing Automation & CRM actually existed in 1985?

It was called Database Marketing

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How do I value my email database?

The Recency Curve GoingGoing

Gone

Now with Real Data

Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan -

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

Recency Curve as of 12/31/2015

Month Since Last OpenU

niqu

e Co

nsum

ers

The Classic Quintile Model

Rece

ncy • 5

• 4• 3• 2• 1

Freq

uenc

y • 5• 4• 3• 2• 1

25 Cells of Segmented Goodies

Let’s Simplify This A Bit

Because why overthink, if You don’t have too

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The Simple Grid

Engagement Value = Lifecycle Value

Mor

e Fr

eque

nt L

ess

Freq

uent

Less Recent More Recent

Cu

rren

t Val

ue (F

REQ

UEN

CY)

Potential Value (RECENCY)

Adapted from: http://blog.jimnovo.com/2007/04/03/recency-defines-engagement/

The Simple Grid


Adapted from: http://blog.jimnovo.com/2007/04/03/recency-defines-engagement/

Mor

e Fr

eque

nt

High Current ValueLow Potential ValueSAVE these consumers

High Current ValueHigh Potential ValueLOYAL: Keep these Consumers

Les

s Fr

eque

nt

Low Current ValueLow Potential ValueREACTIVATE: Should we spend time/effort here?

Low Current ValueHigh Potential ValueGROW: Focus on growing

Less Recent More Recent

Curr

ent V

alue

(FR

EQUE

NCY)


The Simple Grid


5 o

r mor

e


120K


178K

1 -

4


64K


314K (217K NEW)3 or more months ago New to -2 Months Ago

C

urre

nt V

alue

(FRE

QUE

NCY)


Lifetime Value

Case Study

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‘MEASURE SOMETHING’

• Metrics in channel silos • Standardized metrics• Historical averages for goals• Reporting is observational

- i.e. x increased, y decreased

‘STRATEGIC MEASUREMENT’

• Metrics tied to objectives • Engagement weighted by value• Industry benchmarks for goals• Reporting drives action

‘ADVANCED ANALYTICS; …BEYOND MEASUREMENT’

• True Life time value • Hyper personalization & engagement

modelling- Churn prevention• Multivariate testing - Audience segments, offers & content

Level 1

Level 2

Level 3

It’s Important to Understand Your Maturity

Business Objective:Lifetime Value

Marketing Objective:Engagement

There they are! The real world use of the terms we’ve been discussing!

…And The Sales Impact

Purchase Amount

Frequency Penetration Sales % Increase

15.5%

-3.3%

12.0%

20.2%

Purchase Amount

Frequency Penetration Sales % Increase

4.9%

7.5%

2.5%

10.7%

Introductory Product Upsell Product

$153 of Incremental LTV Lift

The Simple Grid

Engagement Value = Lifecycle Value 5 o

r mor

e


120K = $9MM


178K = $27MM

1 -

4


64K = $0.1MM


314K = $24MM3 or more months ago New to -2 Months Ago

C

urre

nt V

alue

(FR

EQUE

NCY

)


The #1 Predictor of Future Value!

Why Recency & Frequency?

BEHAVIOR!

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Email is Marketing Strategy

Let’s Put It All Together

Engagement = Lifecycle Marketing

Retail Post-Purchase Campaign

0 daysInitial Thank YouBoot purchases only

+4 daysSurvey Reminder

0 daysInitial Thank YouNon-purchase version

+20 daysHow Are Your New Boots Working Out?

+6 MonthsFree 6 Month Tune-Up

+12 MonthsFree Heel-To-Toe Check-Up


+24 MonthsUpgrade To New Boots

Email Opt-in No Footwear Purchase

Email Opt-in Footwear Purchase


Email Opt-in Footwear Purchase0 daysInitial Thank YouBoot purchases only

A+F

Store Manager

District Manager

Survey Grade

Survey



Email Opt-in Footwear Purchase

Image Source: http://www.vrbusinessbrokers.com/


*Source: IBM Silverpop 2014 Email Benchmark Study

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Batch and Blast is NOT a Strategy

Personalized Broadcast and Respond IS a Strategy

Lifestyle / Solution Information

Product / Promotion Information

2 – 4Jan

2 – 4Feb

2 – 4Mar

2 – 4Apr

2 – 4May

2 – 4Jun

2 – 4Jan

2 – 4Feb

2 – 4Mar

2 – 4Apr

2 – 4May

2 – 4Jun

The Behavior Zone

The Broadcast and Respond Strategy

The Behavior Zone


Product / Promotion Information

2 – 4Apr

Trigger 1

Trigger 2

Trigger 3


The Behavior Zone



Product / Promotion Information2 – 4May

Trigger 1

Trigger 2

Trigger 3

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2016 Benchmarks From Best-in-Class CompaniesOn Marketing Automation

http://offer.threedeepmarketing.com/marketing-automation-trends-for-success

Free 14-page eBook based on research we completed with Ascend2 on Trends for Marketing Automation Success

•Most Significant Barriers to Success •Strategy and Planning Resources•Most Useful System Features•Measuring Marketing Automation Performance




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Questions

Evolution of Email Marketing: 2016 Edition

Marketing

Transcript of Evolution of Email Marketing: 2016 Edition