Getting the Right Promotion to the Right Customer Segment · 28% increase in Email Marketing Profit...
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Getting the Right Promotion to the Right Customer Segment Don McNichol Director, eCommerce and Direct Marketing Intermix Monday, March 16, 2009
Transcript of Getting the Right Promotion to the Right Customer Segment · 28% increase in Email Marketing Profit...
Getting the Right Promotion to the Right Customer Segment
Don McNichol
Director, eCommerce and Direct Marketing
Intermix
Monday, March 16, 2009
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Stella McCartney, Matthew Williamson, Missoni,
Catherine Malandrino, Diane von Furstenberg, JBrand,
Geren Ford, Sass & Bide, Chloe,
KORS Michael Kors
Fendi, Gucci
intermix /in-ter-mix'/ vb.: to be or become
mixed together; to blend, or associate
intimately
Operate 24 stores nationwide
Unique Merchandising – “a boutique
should merchandise its clothing for the way a
woman actually intends to wear it. The “mix”
of established and emerging designers at a
range of prices, displayed in unexpected
combinations”…Khajak
The Intermix Concept
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Succeed where others will fail in this
economy
Reduce Discounts
Increase direct multi-channel revenue
Increase profitability of email marketing
Goals
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The Rejects
Batch and Blast Causes deliverability problems/nightmares
Alienates customers
Not cost efficient
Too many discounts
1:1 marketing for everyone Not scalable
Not efficient
Not the low hanging fruit
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Segment by customer engagement through
automated RFM
What is RFM? Recency, Frequency and Monetary value of
customer interactions
Why engagement through RFM? Proven in offline world to be the most
accurate prediction of future customer
behavior
Scalable and efficient
The Winner
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Step 1: Automation First solution to update and automate RFM
for email channel
Step 2: Data used Purchase
Web navigation
Email behavior including click rate and
open rate
Step 3: Segmentation findings VIPs: 20% of customers
Sale Shoppers: 40% of customers
Brand Shoppers: 40% of customers
Step 4: A/B tests to determine discounts VIPS: usually full price & events
Sale Shoppers: 30% discount
Brand Shoppers: 10 to 15% discount
Methodology
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9% Increase direct multi-channel revenue
28% increase in Email Marketing Profit
40% decrease in the average discount rate
& 3 week shorter discount period Before & After = 30% & 18% average
Results
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Results
90% increase in Opens
Before & After = 20% & 38%
46% increase in Click Thrus Before & After = 35% & 51%
84% decrease in Opt Outs Before & After = 1.2% & .19%
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Intermix’s Segmentation By
Engagement
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Intermix Brand Shopper Segmentation 10/10
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Intermix Brand Shopper Email
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Intermix Sale Shopper Segmentation 10/23
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Intermix Sale Shopper Email
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Intermix Sale Shopper Segmentation 11/24
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Intermix Sale Shopper Email
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Intermix Brand Shopper Segmentation 12/06
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Intermix Brand Shopper Email
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Craig Kerr, VP of Marketing, iPost
Don McNichol Director of E-Commerce & Direct Marketing
212-741-5075 ext. 217
Big Thanks to:
Credits/Thank You
