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WhatCounts White Paper- Lifecyle Email Marketing
1.
LIFECYCLE EMAIL MARKETING Your
Top Lifecycle Email Marketing Questions Answered
2.
LIFECYCLE EMAIL MARKETING INTRODUCTION
TO LIFECYCLE EMAIL MARKETING Lifecycle marketing is changing the way companies DID YOU KNOW? interact with prospects and customers through the “Online travel agency Hotwire email channel. This white paper explores five reports that their remarketing common questions and some ideas on how to emails are up to 16 tim es as jumpstart your lifecycle marketing efforts. effective in generating conversions as their mass distribution mailings.” Source: Jupiter Research SHIFTING MARKETING APPROACH Best-of-breed marketers are shifting from product focused to customer focused email programs. Traditionally, email marketers spent the majority of their time producing and sending one-off campaigns. By adopting a lifecycle approach, marketers are not only generating more timely relevant messaging, but they’re also using automation to free themselves up to focus on planning and optimization. This approach has a strong emphasis on program orientation and customer- driven timing. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 2 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
3.
LIFECYCLE EMAIL MARKETING
What this means is instead of sending generic mass DID YOU KNOW? email campaigns, you’re focused on implementing “Worldwide email traffic “set it and forget it” programs that are always expected to double between working in the background to help you reduce cost 2009 and 2013 (reaching 507 and improve ROI. billion messages per day).” Source: Radicati Group, Email To do this, you must shift your focus to identifying, Statistics Report, 2009-2013, understanding, and nurturing your best customers so April 2010 you can send them highly personalized and relevant communications that speak to where they are in your overall customer lifecycle. Quite simply, lifecycle marketing is the best and fastest way to make a big impact on the revenue contribution of the email channel. The only way to stay on top is to evolve through the implementation of lifecycle marketing programs to your overall direct communication mix. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 3 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
4.
LIFECYCLE EMAIL MARKETING WHAT
MAKES A GREAT LIFECYCLE MARKETING PROGRAM? In order to create a highly effective lifecycle marketing program, there are five core requirements to fulfill: 1. CLEAR PROGRAM GOALS You should clearly determine why you are contacting the customer and what call-to- action you want them to take. Each campaign should have a clear business purpose and also a strong value proposition for the recipient. 2. TIGHTLY DEFINED BUSINESS RULES Consider program timing and cadence in light of DID YOU KNOW? other automated and scheduled campaigns. To do “Shopping cart abandonment this you’ll need to map out your communications to programs that merge email, various segments at different points in the lifecycle. web analytics, and e-commerce Identify the behavioral triggers that will cause a data can result in conversion customer to enter and exit each messaging stream, increases of m ore than 100% .” along with necessary suppressions. Source: Forrester Research 3. THOUGHTFUL SEGMENTATION Effective list segmentation is essential to improve the relevancy of content delivered. Consider classic segmentation models such as RFM (recency, frequency, monetary value) or start with something simple like prospects versus inactive customers versus active customers. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 4 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
5.
LIFECYCLE EMAIL MARKETING 4.
COMPELLING RELEVANT CONTENT The right message at the right time is what differentiates lifecycle marketing from promotional marketing. Email personalization is essential to building a trusted relationship. 5. CREATIVE DESIGNED FOR EMAIL Best practice-compliant email creative is an integral part of your messaging. Most readers spend three to five seconds scanning an email before deciding whether to read or ignore it. It is critical to do everything possible to make sure they open and engage with your message. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 5 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
6.
LIFECYCLE EMAIL MARKETING HOW
DO I MEASURE SUCCESS? To effectively measure success, you need clearly defined goals and access to the right metrics. Before you launch a new lifecycle program, decide which metrics you’ll use to gauge performance. CALCULATE BENCHMARKS FOR ALL PROGRAMS & SEGMENTS An important way to measure success is to compare COMMON LIFECYCLE results against benchmarks. MARKETING GOALS Your best benchmark will be your own past 1. Increase conversions 2. Increase revenue performance. Email channel averages and industry- 3. Increase share-of-wallet specific statistics can be directionally helpful. They 4. Increase customer can tell you if you’re performing in the general engagement ballpark of your peers. However, you’ll learn more by 5. Increase brand buzz mining your own trend data and looking at results by 6. Increase referral rate 7. Decrease attrition campaign type. 8. Decrease customer servicing For example, you may benchmark your results for costs promotional campaigns, newsletters, lifecycle programs, and transactional email. Just be sure to include enough data to account for seasonality, by using at least a 12-month time frame. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 6 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
7.
LIFECYCLE EMAIL MARKETING DEFINE
YOUR SUCCESS MEASURES BEFORE LAUNCHING Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 7 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
8.
LIFECYCLE EMAIL MARKETING HOW
DO I GET STARTED? AUDIT EMAIL CHANNEL The best way to get started is to conduct a review of DID YOU KNOW? your programs. Create a holistic overview of what “Email marketing tends to have you’re sending including messages that may be small teams and modest pushed from different systems such as transactional budgets… especially given the email. Map out all current “touches” across the channel’s high ROI .” customer lifecycle to determine if you have any gaps. Source: EmailStatCenter, Compensation & Resources Honestly evaluate whether you’re communicating Study, July 2009 with a consistent voice and brand through every campaign you send. PRIORITIZE KEY INITIATIVES You can create a very clear roadmap by taking key stakeholders through a prioritization exercise. Simply rate each new program or enhancement on two criteria: 1. Revenue impact 2. Level of effort The result is a matrix like the chart below showing which programs you should tackle first. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 8 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
9.
LIFECYCLE EMAIL MARKETING TECHNOLOGY
AND DATA Many email marketers are chronically under- CUSTOMER DATA AT resourced for the revenue they generate. Common YOUR DISPOSAL technical limitations include strained IT resources, • Tenure of email subscription few integrations, decentralized customer data, and • Date of last email opened/clicked limited or no access to analysts who can build • Past purchase behavior predictive response models. • Top products and services That shouldn’t prevent you from getting started with • Top searches on your web site lifecycle marketing! Look at the data you have available right now and use it to your advantage. In conjunction with this information, any API data such as Omniture and Bazaarvoice, can help determine data transfer frequency for some of your messaging needs. CREATIVE AND PRODUCTION In the beginning stages of building your lifecycle MODULAR TEMPLATES efforts consider investing in a modular template that A modular template is a pre- will enable rapid production without “rebuilding the configured series of flexible wheel” for each lifecycle marketing program. modules that can be added, removed and arranged as This type of template enables maximum flexibility for needed to support a variety of the development of multiple programs and program needs. customized email configurations. It allows you to layer in more complexity and dynamic content over time. As your programs and capabilities evolve, more modules can be added. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 9 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
10.
LIFECYCLE EMAIL MARKETING Although
it may be a larger upfront investment, a modular template will pay off if done correctly. It is an essential tool in enabling you to spend more time on important tasks such as strategy, testing and planning versus the endless cycle of creative production. WHAT SHOULD I BE TESTING? Testing is a critical component in all successful email marketing programs, but it’s even more important in lifecycle-driven strategies. When defining business rules you want to take an objective, data-driven approach rather than a subjective opinion-driven one. SPECIAL CONSIDERATIONS FOR TESTING IN AUTOMATED CAMPAIGNS Audiences are often smaller, so make sure your test results are statistically significant. Use a control group hold-out to measure incremental lift (this is the key to capturing executive support). Test as much as you can up-front through a pilot before automating, because it can be costly and cumbersome to change business rules once a program is built. Remember, pilot programs can help you validate the assumptions in your business case and demonstrate ROI to your executive team. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 10 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
11.
LIFECYCLE EMAIL MARKETING Start
with your “best guess” based on data you do have such as any incentives that are known to be successful. It’s important to make sure your test plan is realistic and achievable given your production realities and resources. A next phase testing plan could include EASY TESTING personalization, basic segmentation, template design OPTIONS and secondary content modules. • Subject lines • Call-to-action, offers More sophisticated testing would incorporate • Graphical buttons advanced segmentation, timing and cadence, and • Navigation/footer link tiered or progressive lifecycle programs. An example • Recovery content of a highly advanced testing scenario would be to measure the impact of single welcome message versus a four-part series over a month with an offer. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 11 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
12.
LIFECYCLE EMAIL MARKETING HOW
DOES SOCIAL MEDIA FIT IN? The online marketing landscape has shifted with the recent explosion in social media usage. A year ago, about 18% of email subscribers regularly visited social networking sites. Today, it is closer to 62% and growing. That’s led many to question the long-term effectiveness of the email channel. (Source: Worldata Email Usage Study Q4 2009, The Nielsen Company) On the contrary, data shows individuals who use Facebook or Twitter at least once a week are 38% more likely to open email promotions. Social media makes people consume more, not less, email. Email and social media naturally complement each other by empowering customers to tailor commercial relationships to their preferences. Social media has nicely allowed more opportunities for companies to “continue the conversation” with their customers and enhance the overall relationship. A key opportunity with social media is the option to include SWYN (Share With Your Network) within email footers and navigation links. When developing SWYN within your lifecycle marketing programs, it is critical to understand what factors influence customers to share including: • Contributing to the conversation • Self-Interest • Altruism • Validation • Affinity Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 12 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
13.
LIFECYCLE EMAIL MARKETING
It is also important to recognize what makes content WHAT MAKES shareable. Of course, this means, you must have an CONTENT SHAREABLE? effective presence and strategy in the appropriate • Trustworthiness social media outlets! • Tribal interests • Reward/Incentives • Content • Simple and obvious • Ease of sharing • Creates value • Social acumen and adoption among subscribers FINAL THOUGHT The most important piece of information to take away from this document is that your organization must start talking about how lifecycle marketing can benefit your bottom- line. No matter your size and limitations, there are always “low hanging fruit” you can start with to demonstrate viability and profitability. Once initial success has been validated, you can explore other opportunities to expand your lifecycle marketing initiatives. Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 13 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
14.
LIFECYCLE EMAIL MARKETING ABOUT
US WhatCounts, a private Atlanta-based company founded in 2000, is a leading email technology innovator offering a fully integrated lifecycle marketing platform supporting dynamic and targeted content delivery, robust segmentation, API and transactional capabilities as well as integrated video and social media tools. WhatCounts offers deliverability management, strategic coaching, best practices benchmarking, CRM integration and advanced analytics facilitating ROI maximization. The robust WhatCounts platform is delivered as a hosted Web-based SaaS application and as part of the unique Broadcaster on-premise appliance line. WHATCOUNTS, Inc. 3630 Peachtree Rd. Telephone: 404.995.8600 Suite 900 Toll Free: 866.804.0076 Atlanta, GA 30326 Fax: 404.995.8611 www.whatcounts.com Email: sales@whatcounts.com ATLANTA • BALTIMORE • CHICAGO • SEATTLE • SYDNEY • WASHINGTON DC Copyright © 2012 WhatCounts, Inc. 3630 Peachtree Rd. Toll Free: 1.866.804.0076 14 All Rights Reserved. Suite 900 Email: sales@whatcounts.com Atlanta, GA 30326 Website: www.whatcounts.com
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