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  1. 1. Max Kissick-Jones Partnerships EMEA Retailer’s Top Commerce Marketing Tactics Unveiled
  2. 2. Bronto Software • The marketing platform for commerce. • #1 email marketing provider to Internet Retailer Top 1000. • Helping leading retailers with customer acquisition, conversion & retention through email, mobile & social. • Offices in London, Durham (NC), New York, LA & Sydney. • Serving 1,500+ brands worldwide, including:
  3. 3. Agenda • 2017 Planning: What email tactics are Retailers thinking about using? • Whitepaper: Top Commerce Marketing Tactics • Summary of whitepaper results.
  4. 4. Wanted: Marketing Tactics that Deliver Results Do you know which email marketing programmes drive the most ROI for your company? Time to think about what you could be doing to make your marketing campaigns more successful.
  5. 5. Wanted: Tactics that deliver results Retailers may ask : • How do you stack up against competitors? • Have you correctly prioritised the right tactics? • Are you taking advantage of the most effective programs? • Is there more you could be doing to reach more customers and build a strong brand? • Is your marketing growing at a sophisiticated pace? • Are you missing opportunities to increase revenue? The challenge is understanding which tactics are going to deliver the highest returns, and then prioritising them!
  6. 6. Whitepaper: Top commerce marketing tactics shared Global study of 300 retailers. What you’ll discover: • Commerce marketing tactics most often employed by retailers. • Tactics retailers rate as most effective. • Tactics retailers plan to implement in the future. Download full report: bronto.com/commerce-marketing-benchmark
  7. 7. Will email volume increase in 2017? Email performs better than SEO, SEM & Social in driving online sales. DMA found ROI from email went from £25 in 2014 to £38 in 2016 Email can enhance entire customer journey, volume stats are not surprising!
  8. 8. Most commonly used tactics: What are the key email tactics important for success? Raised email volume increases competition in the inbox, so having the right tactics in place is more important than ever!
  9. 9. Segmentation Best practice example: Closet London. • Target:  Become personal stylist with email content tailored to each customer.  Achieve higher levels of revenue and conversion using Bronto & Magento. • Campaign:  Leverage customer information (preferences, purchase history etc.).  Create automated workflows for defined segments. +50% Conversion Rate
  10. 10. Welcome series: Used by 74% of retailers Best practice example: Björn Borg. • Target:  Unique brand introduction to new newsletter sign- ups. • Campaign:  Three-part email series.  Introduces new contacts to brand history and bestsellers.  Transports brand values: CRISP, DYNAMIC, CONTEMPORARY & ECCENTRIC. +232% CTR +217% Revenue +21% Conversion
  11. 11. Remailing Best practice example: The Gro Company. • Target:  Drive more revenue through newsletter. • Campaign:  Resend newsletter with new subject line seven days later to those who didn't open the first email. = same campaign metrics as initial send. One retailer commented: “It’s like printing money!”
  12. 12. How effective are these tactics? Are you using the commerce marketing tactics other retailers found to be effective? When measuring the success of your marketing programmes, look at your own trends as benchmarks!
  13. 13. Cart recovery Best practice example: Hudson Shoes. • Target:  Turn abandoned baskets into revenue. • Campaign:  Automatically triggered message.  Sent 1h after basket was abandoned.  Highlights abandoned product(s). = 22% of total annual email revenue.
  14. 14. Least used tactics
  15. 15. Planned tactics for 2017
  16. 16. Post-purchase series Best practice example: Dr Denim. • Target:  Leverage customer data (purchase information, order history, etc.) to sell in a smarter way with Magento Integration. • Campaign:  Workflow automatically triggers email ten days after purchase.  Promotes editorial content for further inspiration and customer service. 45% Open Rate
  17. 17. Average number of email tactics in use 1-3? 4-6? 7-9? 9+? Larger companies are using fewer commerce marketing tactics Larger companies with larger budgets also use offline marketing strategies, online advertising and contests. They may also lack the flexibility to quickly deploy a greater diversity of programmes.
  18. 18. Average number of tactics by industry Higher competition & expectations of multi- channel consumers are driving clothing and automotive brands to use more tactics. Using 8.5 and 8.4 tactics, retailers in these crowded markets are pushed to explore more opportunities to generate revenue.
  19. 19. Summary: Test five basic moneymakers Segmentation Welcome series Remailing Cart recovery Post-purchase > Continually track and benchmark your success
  20. 20. @BrontoEurope Thank you!

Hinweis der Redaktion

  • “The marketing team forced me to include this slide. I don’t want to bore you too much, what’s important to know about Bronto is that we are the only email service provider who specialises in retail, and have offices in London, the US and AUS.”

  • You might already have started thinking about what lies ahead and planning the 2017 budget.. While you may be proud of what you have accomplished this year, You know there are other things you could probably be doing to make your commerce marketing programs more successful.

  • . So you might ask yourself, “Have they correctly prioritised the right commerce marketing tactics?

    Are you taking advantage of the most effective programmes for the business?

    Is there more you could be doing to reach more customers and build or sustain a strong brand?

    Is there marketing growing in sophistication at the pace it should? Or are they missing an opportunity to increase revenue?”

    The revenue opportunities continue to grow as technology becomes more sophisticated.

    Savvy brands that understand the tactics they need to tap into , stay ahead of the competition will be rewarded with new business and more loyal current customers. The challenge is understanding which tactics are going to deliver the most significant returns, and should be prioritised as a result.

  • Well, if you’re curious about what e commerce retailers are doing

    . Bronto conducted a global survey of 300 retailers to give you insight behind the scenes in their marketing departments: we identified the tactics that Retailers currently use,

    those they find most effective and the ones they plan to use in the future.
  • Email is one of the most effective ways to reach your target audience and consistently dominates other tactics, such as SEO, SEM and social, in driving online conversions, and it doesn’t show any signs of slowing down. The Direct Marketing Association found that ROI from email rose from £24.93 in 2014 to £38 in 2015.

    Used effectively, email marketing can enhance the entire customer lifecycle: From convincing a shopper to buy to maintaining the conversation after the first purchase and identifying opportunities to encourage customers to buy again. With this in mind, it’s not surprising that over half (64%) of the surveyed retailers plan to increase the volume of emails they are sending in 2016. 32% will continue sending the same amount.
  • The raised email volume increases the competition in the inbox, so making a good first impression is more important than ever.

    For years, the industry has been talking about a number of key email tactics that are important to success and our study shows that so many of these are in place, hard at work delivering revenue.

    When we are asked, “What are the most important email marketing programmes retailers should have in place?”,

    my typical answer is actually the three most popular tactics in our survey: segmentation (83% have it in place), a welcome series that starts the relationship with new email subscribers (74%)

    and remailing shoppers that didn’t open the first message (64%).
  • So let’s explore the most used tactics in a bit more detail.

    Segmentation allows you to delivers the most relevant content to each customer and use every touch point as an opportunity to offer additional value.

    A brand that’s using segmentation successfully is Closet London, a womenswear brand that has been designing and manufacturing its fashion in London for over 20 years.

    The brand knows that every woman has her unique style and being able to identify and target these preferences will keep her coming back. The retailer wants to be a personal stylist with email content tailored to each customer and harnesses much higher levels of revenue and conversion by using segmentation.

    Thanks to the integration of their Bronto email platform with the Magento ecommerce platform, Closet is able to leverage customer information such as preferences and purchase history in emails. The ability to segment the database not only helps retain loyal spenders, it enables Closet to learn much more about its customers and how they interact with the brand.

    Closet has divided the database into a number of segments and created automated workflows for all segments. For example, one segment targets shoppers who have bought specific types of clothing, bodycon style dresses, and sends them emails with similar dresses. The success speaks for itself: the tailored emails have a conversion rate that is 50 times higher than Closet’s average marketing message.
  • Looking at Welcome Series which are Used by 74% of retailers, a welcome series is a very focused message series that introduces shoppers to your product offering, tells them why they should care about your business, and hopefully inspires them to make their first purchase.

    The email campaign of Swedish fashion underwear and sports apparel brand Bjorn Borg is a best practice example. The retailer sends a three-part email series to welcome new subscribers, introduce them to the brand history and bestsellers and make them part of the Bjorn Borg tribe by transporting the brand values “active and attractive.”

    The click rate is 232% higher, conversion is up 21% and revenue is 217% higher than their standard marketing email.
  • Remailing is probably the easiest way for retailers to drive more revenue. Put simply, you send the exact same message with a new subject line several days later to those who didn’t open the email the first time around. Our study confirmed this as one of the top tactics used by retailers. One even commented, “It’s like printing money!”

    The Gro Company, an Exeter-based retailer for baby products who introduced baby sleep bags to the UK, uses this “amazing tool” as part of its marketing strategy. Their ecommerce manager told us he “could almost copy and paste the metrics from the first 24 hours of the send to the remail a week later.” Now those are some fantastic results!
  • When it comes to measuring the success of retail marketing programmes, the most valuable benchmarks a retailer can use is to see there own trends over time. No one knows there business better than the retailer themselves . But it’s also nice to see where opportunities lie.

    Are you using the commerce marketing tactics fellow retailers found to be very or somewhat effective?

    Retailers rate email-exclusive offers (99%) and cart recovery emails (98%) as most effective. So if you are not yet using these tactics, you should consider moving them to the top of list of options to test.

  • Abandoned baskets can be a source of frustration for commerce marketers, but they’re also full of potential. Shoppers who’ve gone to the trouble of selecting items and putting them in their basket are just a step away from a conversion. They’ve already partially committed to making a purchase, they just haven’t given you the money yet.

    London-based footwear brand Hudson Shoes realised that revenue was leaking from their site and uses cart recovery messages to plug the holes, generating significant revenue by bringing shoppers back to the items they left in their basket. The messages are triggered through a workflow that automatically sends messages to shoppers one hour after they’ve left the website.

    These highly-effective emails generate 22% of total annual revenue from email, with an average conversion rate of 21%. Engagement is 2x higher, conversion rates are 4x higher than average messages.

    In our work with retailers, we typically see a 53x ROI from cart recovery emails.
  • Most commerce marketers would agree that a personalized customer experience leads to higher engagement and conversion rates.

    However, usage rates for some of the personalization tactics were quite low.

    The tactics least frequently used by retailers are reorder reminders (11%), SMS and mobile campaigns (9%) and gift reminders (7%)

    – presumably because these are more complex tactics that require a bigger effort to execute effectively, so many marketers are not able yet to make that move.

    Still, they offer brands a great opportunity to meet the customer expectation of truly personalised interactions – the kind designed to keep them coming back again and again. So, whilst these may be lesser-used strategies within a commerce marketer’s toolbox, they should not be discounted. Keep in mind that least used doesn’t mean least effective.

  • In fact, when we asked retailers what their priorities are for the future, many of these tactics were on their lists.

    The top-three tactics on marketers’ future plans are VIP/loyalty campaigns (59%),
    dynamic content (58%)
    and a personalised post-purchase series (55%).
    If Retailers are looking for an edge over there competitors, these may be a good place to start, delivering that truly personalised experience customers want but can be hard to achieve without smart, sophisticated commerce marketing automation tools.

  • Consider implementing a post-purchase campaign to communicate with recent buyers to try to get them to convert again. These strategies often involve recommending items with up-sell/cross-sell campaigns or offering discounts.

    Swedish jeans brand Dr. Denim focuses on a 20- to 30-year-old customer base and doesn’t want to just email to sell but to add something to people’s lives.
    They use email as a channel to get more traffic to the website and sell in a smarter way, focusing on editorial content.

    Through the integration of their Magento ecommerce platform with their Bronto email platform, Dr. Denim leverages customer data, such as purchase information and order history, in its post-purchase emails. Ten days after the purchase, the customer automatically receives an email asking ‘Looking smashing in your new clothes?’. The message promotes the website’s lifestyle-oriented editorial section for further inspiration and highlights customer service contact information in case the customer wants to get in touch. The campaign has an open rate of over 45%.

  • Question to the audience: Can you guess what the average number of tactics used by retailer are?

    So as you can see, there is a wide variety of tactics and tools to accelerate business growth. So how many should Retailers have implemented. In our survey, we found that retailers employ on average 7.2 tactics.

    The number of tactics in use varies by company size. Interestingly, the largest companies (those over $100 million in annual sales) have fewer programmes in place (6.7 on average) than mid-sized (between $10 million and $100 million in sales) and small companies (under $10 million in annual sales). That seems counterintuitive, doesn’t it? How is it possible that larger companies are using fewer commerce marketing tactics?

    It’s likely that organisations with presumably larger overall marketing budgets augment their conversions with tactics not covered by this survey, such as traditional offline marketing strategies, online advertising and contests. It is also possible that larger organisations lack the flexibility and agility to be able to quickly deploy a greater diversity of programmes.

  • Looking at the findings by sector, the pressure of a crowded market and expectations of multi-channel consumers

    are driving clothing and automotive brands, in particular,

    to deploy a greater number of tactics. Using an average of 8.5 and 8.4 tactics respectively, retailers in these sectors feel the pressure of greater competition,

    which pushes them to explore more opportunities to generate revenue.

  • Email continues to be a key route to revenue – and this will surely increase as brands become more creative in their use of tactics.

    Having an effective commerce marketing strategy in place is vital to maintain and grow retail customer relationships. Above all, staying close to consumer behaviour will enable retailers to evolve with there customers. There are more ways available than ever before to understand customers and meet their changing needs. By continually tracking and benchmarking the success of there programmes and by implementing new tactics that are going to resonate with a retailers audience, Retailers will be in a better position to increase sales and encourage customers to return.

    If Retailers want to make an immediate impact on revenue, they should consider these five basic moneymaking tactics if they haven’t already. They will create an even more positive brand experience and boost the bottom line.

  • You talked a lot about the opportunities to drive more revenue with email. What about cross-channel promotions, do you have any tips when it comes to combining email with social, for example?

    Integrating facebook sign up pages, acknolwedge customer came from there, use them as brand advocates when segmenting
    Create segments from social adds and use them to taregt email camapigns
    Instagram likes – send an email about the product

    To implement the campaigns you discussed in your presentation, marketers probably need the right technology to be able to do that. Could you share some advice on what marketers should look for when selecting an email marketing platform?

    Integration: integrate with your ecommerce platform, make it possible to collect customer data.
    Segmentation: easy-to-use features to create segments and workflows.
    Reporting: straightforward systems for analysing the results of your campaigns.
    Automation: enable you to personalise messaging without consuming your valuable time. Automating repetitive tasks increases efficiency and allows you to do more with less.
    Strategy: proven marketing strategies and commerce expertise to help you plan campaigns, follow best practices and increase revenue.

    Keep up to date with commerce knowledge by following us on Twitter @BrontoEurope