2015 Retail Innovation Conference Innovation Lab presented by Sail Thru

1. #RIC15
PLAYING THE
MARKETING LONG GAME
Cassie Lancellotti-Young
EVP, Customer Success – Sailthru
cyoung@sailthru.com
@dukecass
Leveraging Personalization to Drive Lifetime Value

2. #RIC15
www.sailthru.com
sales@sailthru.com
REVENUE
PERSONALIZATION MATURITY
Personalization: so much more than just a name
LEGACY TECHNOLOGIES
Segmentation/
Rules Based
Behavioral
Recommendations
Omnichannel
Optimized
Predictive
Personalization
Omnichannel
Optimized
revenue potential blocked by
database limitations and
acquisition integrations
unmatched revenue potential
because of native build and
flexible architecture
+5-10%
lift in response
rate
+20-50%
lift in
conversion rates
+20%
lift in
lifetime value

3. www.sailthru.com
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Effective 1:1 requires a multi-channel single customer view

4. www.sailthru.com
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360° customer profiling automated by Sailthru
Email
MobileOffline
Online
Social
Analytics
• Opens at 3:00 PM ET,
purchases after 10PM
• Most likely to click on
sale or promotional
emails
• AOV from email $105
• Surfs the web on Google
Chrome
• Most often browses from
Tribeca (NYC)
• AOV online $127
• Watches product videos
• Tweets about your brand
• Likes Alex & Ani, beaches,
museums on Facebook
• Recieves push
notifications
• Has iOS7
• Has your latest
brand app
• Shops only in your flagship
store
• AOV of in-store purchases is
$271
• Customer since May 2012
• Has spent $989 to date
• Top 0.1% of customers likely
to purchase in next week

5. #RIC15
www.sailthru.com
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Case Study: Acumen Brands
+116%
lift in email
revenue
+109%
lift in email
purchase
conversion
-54%
reduction in
customer
churn
+34%
increase in
visits
1:1
behavioral emails
now contribute
70% of total email
revenue (from 0%
baseline)

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www.sailthru.com
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So, how’d they do it?
AutomationPersonalization Analytics

7. PERSONALIZATION
(climbing the maturity curve)

8. www.sailthru.com
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Personalization – climbing the maturity curve
REVENUE
PERSONALIZATION MATURITY
Segmentation/
Rules Based
Behavioral
Recommendations
Omnichannel
Optimized
Predictive
Personalization
Omnichannel
Optimized
0%
behavioral email
+109%
lift in
conversion rates
54%
reduction in
customer churn

9. www.sailthru.com
sales@sailthru.com
Country Outfitter has evolved from “batch and blast”
to behavioral emails to drive major performance lift
“Batch and Blast” Dynamic Email
+116%
lift in email
revenue

10. www.sailthru.com
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Something for everyone…

11. www.sailthru.com
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1:1 personalization ultimately means a “single template”
(mixes content and products, different revenue streams)

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Email is just one channel;
1:1 recommendations on style blog drove a 25% lift in CTR

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Re-targeting has proven especially strong for
harnessing power of personalization beyond email
clients have seen 5-6X improvement in advertising
ROI with Sailthru-powered custom audiences as
well as over 5X lift in buyer conversion

14. #RIC15
www.sailthru.com
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Automation – critical for both feasibility and scalability
Automatically
build 360-degree
multi-channel
customer profiles
with Sailthru
Leverage data feeds
to further tighten
recommendations
Analytics and
recommendations
react in real-time
Triggers always
work, but lift is
much stronger
when they’re
augmented with
personalization
“Customer acts,
marketing reacts”

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Example: cart abandonment emails
BEFORE AFTER

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Even early messages can be personalized/automated…
(tweaking welcome streams by acquisition PPC keyword)
User A User B
huge spike in first-week activation

17. ANALYTICS
rich historical data augmented with
predictions, all focused on the metric that
matters most: customer lifetime value

18. #RIC15
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Example: Leveraging Retention Data to Optimize Acquisition
BI is a critical layer for optimizing marketing decisions;
cohorts are a key ingredient

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(cohorts can be used for even seemingly basic analysis)

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Predictions (Sailthru Sightlines) vis-à-vis traditional
(“RFM”) segmentation models – 50% lift in revenue

21. #RIC15
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Country Outfitter used Sightlines to evolve targeting from
recency of engagement to purchase propensity
+24%
lift in segment
purchase
conversion
-22%
reduction in
opt-outs
per sale
compelling
use cases to
boost AOV
and protect
margins

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Retention means cultivating long-term value, not just quick wins
CELL A: PRODUCTS CELL B: CONTENT
Cell A may win for gross conversions today,
but what about lifetime revenue per user?

23. #RIC15
www.sailthru.com
sales@sailthru.com
If you remember just
two things from today…
focus on the
“long game” –
lifetime value vs. quick
optimization wins
21
winning retention is
about personalization,
automation & analytics
coming together

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Q & A