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Addressing Inactive Email Subscribers – Reactivation

ApproachesUK Client Conference

A show of hands please…

1. Do you have a concrete definition of what an inactive

is: including timeframe, purchase/offline activity, etc.?

2. Do you know what percentage

of your audience is inactive?

3. Have you implemented proactive programmes to

minimise or re-engage inactives?

Goal for this Session:

Get you to think about, or a little

differently, about inactives…

Agenda

Inactives Challenge

Case StudyMinimisation

Why Should You Care About Inactives?

Inactives Are a HUGE Issue

Typical Actives vs. Inactives Ratio

Impact of Inactives

Lost potential revenue

Inefficiencies/Reduced ROI

Fuzzy metrics

Potential reduced deliverability

Sample Retailer Inactives Challenge450,000 Subscribers

40%-50% Inactive (no opens + clicks for 12 months)

200K-250K non-responders

Hypothetical Revenue LossActives Inactives

# Subscribers 250,000 200,000

Average Revenue Per Email Delivered .08 GBP

4 X week X 53 weeks ~ 212 emails 4.24M GBP

Potential Lost Revenue 3.4M GBP

Root Causes: Subscriber

Never fully engaged - just wanted the incentive

Interests / needs have changed

Long sales / purchase cycle

Root Causes: Your Emails

Content did not meet expectations

Emails are being routed to junk folder

You send too often for their taste

You send unpersonalised, irrelevant emails

So what can you do about your inactives?

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Freemans Grattan Holdings

Phil Jones

BioPhil Jones

• 10 years @ Freemans Grattan Holdings– 5 Years as Database Operations Manager

• Absorbed ownership of Silverpop Relationship September 2011

• 3 Kids don’t support an active social life

Freemans Grattan Holdings

FGH Email Program• ~7.6m emails sent per month

• Generates 11.6% of online marketing channel revenue

• Managed and Self Serve across the business units

• Growing mix of automation and functional emails

• Email team’s comprise of:» Email Campaign Manager» Email Designer» Central Support

FGH Email Program

Email Revenue

Promo87%

Auto3%

Func10%

Mix of EmailsAverage Monthly Send

Volumes

Freemans Grattan BU Kaleidoscope BU Witt BUCurvissa BU FGH Money Swimwear365

FGH’s Email Program FrameworkEmail Channel

Promotions Functional Automated

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Newsletters

Offers

Despatch Confirmation

On Hold Confirmation

Returns Credited

Delivery Completed

Statement Available

Payment Confirmation

Welcome

Birthdays

Abandoned CartPost Purchase

Review

Held Updates

Today, ~112 functional emails per day, and 10+ promotional emails per

week

Order Cancellations

FGH History

Move to Silverpop and usual warm-up process

No Change to historic Spray and Pray mentality

Deliverability starts to suffer

Define inactives and launch re-engagement campaign

Review current F&G campaign. Launch across the other brands

2010

2011

Today

Understanding the FileLast open date

File type Last demand date 0-3 months

3-6 months

6-9 months 9-12 months 12-18 months 18+

months Total

Customers0-12 months

0-3 months 77,533 14,615 10,392 8,711 6,529 7,801 125, 581

3-6 months 15,755 20,453 2,126 2,434 1,945 2,134 44,847

6-9 months 13,094 2,203 20,600 2,295 1,994 2,229 42,365

9-12 months 6,524 1,108 1,600 13,471 1,228 1,336 25,267

12 months+ 17,562 6,459 4,186 8,644 27,138 28,215 92,834

Prospects NA N/A 47,964 21,244 36,330 84,946 64,316 241,798 496,598

178,072 76,167 719,912 122,010 102 281,186 831,501

70% have not opened in over 6 months

Understanding the File

Last open date

File type 6-9 months

9-12 months

12-18 months

18+ months Total

Prospects 36,330 84,946 64,316 241,798 496,598

Over 50% have never become customers

3 Strikes and you are out

6 Months Non Opener

9 Months Non Opener

Includes call to action

12 Months Non Opener

Includes call to action

For non openers of these emails we then also change their send frequency

non openers are unsubscribed

Two Fold Results

Stage 1 Stage 2 Stage 3 - 1 Stage 3 - 2 Stage 3 -3

F&G 8.24% 6.81% 7.54% 3.77% 3.90%

Recovery % of InactivesSince Aug-11 Re-actived the

sleepers

Promotional email benefits• Deliverability improved• Average Open Rate

increased by 4.6pp• Average DPE risen from

0.11p to 0.12p

Automate to reap the benefits

Promotional emails then follow

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Lessons Learned / What’s Next

Some Lessons Learned

OK to suppress

Most inactives are inactive

Use behavioral fields in the data

This is only the end of the process don’t forget the beginning - ONBOARDING

What’s Next

Review Onboarding

Add preference centers

Add survey

Reduce the time

What’s Next

3 Months

•Survey

6 Months

•Survey•Reduce send rate

7 Months

•Reduce send rate

9 Months

•Reduce send rate

12 months

•21 days to respond then unsubscribe

Birmingham Airport

Rosi PetrovaSenior Product Advisor

The Challenge

First sign of spam trap deliverability issues 11 months after coming onboard with Silverpop

What is a Spam Trap?

An abandoned customer mailbox that the ISP re-activates after a few months of inactivity. The ISP then waits for mail to be delivered to this dormant account or spam trap. Since the owner is not requesting new mail, any mail going into the inbox must be sent from an old, or even purchased list.

Why is re engagement important?

List cleansing

Removes spam traps

Improved IP reputation & deliverability

Better performance

rates

Re Engagement

Re Engagement Strategy

Why are people not engaged?

Define the inactive segment

Purchase cycle; mailing frequency; opt-in date?

What to do with the inactive segment?

The Solution

Data cleansing by implementing a Re Engagement Program targeting all contacts who have had no mailing activity for 9 months and have not opted in within the last 3 months

Re Engagement Program

Inactive contacts

Re engaged contacts

Contacts who remain inactive

& need to be removed from the database

Re Engagement Email 1

Birmingham Airport: Hello There!

3 weeks later…Re Engagement Email 2

Birmingham Airport: We Miss You!

2 more weeks later…Final Email

Birmingham Airport: Details deleted

Data Cleansing

Upon receiving Email 3 contacts are track routed to ‘To Be Removed from Database’ track and then get purged by the client

Upon receiving Email 3 contacts’ profiles get date stamped under ‘Inactive’ date database field which makes them easy to query off

Campaign End Goal

The Re Engagement program would remove all spam trap email addresses within 5 weeks of activation

As the program runs on a continuous basis it would prevent spam traps from occurring

And the Results…

Half of the database consisted of inactive non profitable contacts who were removed as a result of the re engagement campaign

The sender’s deliverability has been massively improved with spam traps been cleared out and SNDS going from red to green zone.

Current deliverability of 99%

Action Plan - Minimise

The Typical Re-engagement Series …

…Typical Re-engagement Series Results

Minimal Engagement

– 5.8% Open rate

– 1.8% click-through rate

– 1-2 orders per fiscal quarter

The best reactivation

strategy

is to minimise inactives

to begin with.

10 Tactics to Help Minimise Inactives

1. Understand Subscriber Motivations

2. Set Expectations

3. Get Subscriber Preferences – Then Use the Data

4. Move From Welcome to

Onboarding Process

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Mint Activation 1

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Users who have not added their banks after 7

days

Mint Activation 2

57

Users who have not added their banks after 14

days

Mint Mobile Welcome

New Mint users from mobile channel

See Our Models Nearly Naked in Our New X-Ray Catalog

5. Wake Subscribers Up With

Crazy Content

6. Incorporate Voice of Customers/Employees

30+% Increase in Orders and Sales

DC {Dark} DC {White}

7. Personalise – Use Behavior & Dynamic Content

8. Send Follow-Ups Based on Behavior

BirthdayConvert

Share Request

Open/ClickIncentive

No ActionReminder

9. Create Emails They Can’t Live Without

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Your dates trigger an email…

21 days before occasion

Personalised with name

Occasion w/ date

Coupon code

10% Off

31% CTRHighest revenue generating email

10. Make it Easy to Update Preferences

Include links to all 3 main options:- Update preferences

- Change email address- Unsubscribe

Opt-down alternative to opt out

Options to “Snooze”

Key Takeaways

Don’t ignore inactives – be proactive

Focus on minimizing inactivity

Automate reactivation program

Test and optimize

Email Marketing

Mobile

Social

Marketing

Automation

Interested In Learning More?

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