1. Delivering Increased
Relevance and Revenue with
Automated Emails
@CareyMKegel
@LorenMcDonald

2. “Trigger” horse sense
Carey Marston Kegel, SmartPak
@CareyMKegel
Loren McDonald, Silverpop
@LorenMcDonald

3. Happy Birthday Carey!

4. Why Automation?

5. 1. Relevance
…Hope is not a marketing strategy.

6. 2. Revenue - Low Volume, High ROI!
Volume of Emails sent Sales Generated
4.1%
Triggered
Campaigns
40.2%
Triggered
Campaigns 59.8 %
95.9 % Batch
Batch Campaigns
Campaigns

7. 3. Relaxation
…and no need to push the “send” button!

8. Agenda
SmartPak
Email Program
Overview
Sample
Q&A Automated
Emails
Process /
Takeaways

9. SmartPak Background

10. About SmartPak
• Founded by riders and horse owners for
riders and horse owners
• Finding a better way to administer
supplements led to a quest for
discovering innovative, smarter
products
• Convenience, peace of mind, time
savings Benefits:
• How SmartPaks work: • Fed right every time
• Custom orders
• Delivered free, monthly

11. Email Channel
Promotional Transactional Lifecycle
Newsletters Order Confirmation SmartPaks
Welcome
Order Shipment
Offers Confirmation Order Reminder
Order Delivered
Confirmation Abandoned Cart
Delivery
Confirmation SmartPaks Up-sell
Password Recovery Post Purchase
24 triggered and Review
Credit Card Failure
transactional Notification
Consumable
Replenishment
programs in SmartPaks Cancel
place, ~50 unique Confirmation Browse Behavior
automated Returns Notification
ColiCare
mailings/day
+ 8 More

12. SmartPak Email Program
Email Volume Transact. &
Triggered
Promotional 12%
88%
• ~2MM+ emails sent, per
month
• Email generates 30% of
all online marketing Email Revenue
revenue Transact. &
Promotional Triggered
• Healthy transactional 70% 30%
and triggered email
program drives high
return
4 years ago = 2% volume / 1% revenue

13. SmartPak Email Team
Business Owners with many requests for email campaigns
Email Marketing Manager Email Designer

14. Where we came from
Separate
systems
Email starting
New ESP
to get respect
Hired
Consultant

15. Sample Lifecycle Emails

16. Browse
Reengagement Cart
Replenishment
Sample Automated Order Status
Emails
Upsell Onboarding
Shipment
Review Request
Reminders

17. Pre- to Post-Purchase Emails
Pre-Transaction Purchase Process Post-Purchase Relationship
• Browse • Order • Satisfaction • Bounceback
abandonment Confirmation Survey • Account reminder
• Cart • Order status • Review request • Loyalty programs
abandonment • Shipping notice • Review • Account status
• Shipment notification • Purchase
confirmation • Recommendation anniversary
• Trip preparation • Replenishment
• Repurchase
• Upgrades

18. Browse Behavior

19. Browse Behavior
• 37.6% Open Rate
• 7.35% CTR
• $0.44 Rev/Email

20. Browse Behavior

21. Browse Behavior

22. Browse Behavior

23. Cart / Wishlist Abandonment

24. Updated Abandon Cart
The results:
• 38.5% open rate
• 10.15% CTR
Dynamic product
recommendations
• 50% conversion rate
• $4.80 revenue/email

25. Abandon Cart Enhancement
Enhancement
+ Add “reminder” to existing
stream to increase conversion
» Test timing (5 days with no
conversion)
» Test subject line and
headline
» Streamline copy

26. DEMCO Results
Conversion rate is just as high on the first email as it is on the last email
– without an offer
Cart Email A Cart Email B Cart Email C
Day 1 Day 3 Day 5 AVERAGE
Open Rate 40% 39% 32% 37%
Click-to-Open 44% 47% 28% 41%
Click-thru-Rate 18% 18% 9% 15%
Conversion Rate 22% 15% 24% 20%
Sales/email $8.60 $8.40 $5.04 $7.46

27. Abandon Wishlist
+ Encourage subscribers to update their SmartPak
wish list and/or share with friends
+ Potential to pair with birth date targeting (and
timely email encouraging subscriber to share list
with friends and family)
+ Send reminders around holidays
+ 36% Open rate
+ 2% CTR
+ $0.73 Rev/Email
+ Offer a forward to a friend feature, but have so
far seen little usage

28. Supplement Wizard

29. Supplement Wizard – Abandoned, Finished Process
• Sent when a
customer receives
their results but
does not add
items to cart or
checkout
• 40.17% Open Rate
• 4.18% CTR
• $0.38 Rev/Email

30. Supplement Wizard – Abandoned, Did not get results
• Sent when a
customer starts
the Wizard, but
does not get to
the results page
• 44% Open Rate
• 7.61% CTR
• $0.25 Rev/Email

31. Order Status

32. Order Status: Another $ Opp
Order Confirmation
24.16% Open Rate Shipment Confirmation Delivery Confirmation
$0.13 Rev/Email 36% Open Rate 34.44% Open Rate
$0.16 Rev/Email $0.05 Rev/Email
Next Steps:
• Insert dynamic product recommendations to increase rev/email
• Potentially insert offer for repeat purchase

33. Product Review Request

34. Post-Purchase Review
“Customer input gives shoppers the
confidence to buy, increasing
sales, conversion, average order
value, and more.” Source:
Bazaarvoice
• Launched home-grown product review tool in
early 2006
– Gathered 5,000 customer reviews
• Use Bazaarvoice (launched January 2009) to
handle customer reviews
• Sent generic broadcast email to customers to
review products they have purchased
• Launched a daily triggered email to review first
time ordered products post-purchase
– Currently have over 80,000 product reviews

35. Onboarding Emails

36. SmartPaks System Welcome Email – New Creative
41% Open Rate
5.46% CTR
Answers questions customers
may have when their package
arrives

37. SmartPaks System Welcome Email #2
• Sent 7 days after the 2nd shipment
• 34.5% Open Rate
• 8.9% CTR
• Goal – increase retention of new customers

38. Order/Shipment Reminders

39. Autoship Reminder Email
• Reminds customer of upcoming SmartPaks
order
• Allows customer time to make changes
before order is processed
• Top revenue generating triggered email
The results:
• 36% open rate
• 13% click-through rate
• $1.39 revenue-per-email
• 18%+ conversion rate
Real time products based
on purchase behavior

40. Follow Up Reminder Email
• 22.9% Open Rate
• 6.7% CTR
• $0.98 RPE
• 22.8% Conv. Rate
- Sent 3 days before
autoship order ships
- Since launching the 2nd
reminder email, we are
seeing ADDITIONAL
revenue (almost
double) being
generated from this
campaign.

41. Upsell Emails

42. SmartPaks Upsell Emails
Customer orders supplements in buckets for their horse
GOAL: Convert customer to order supplements in AutoShipSmartPaks

43. SmartPaks Upsell Emails
• Focus on the most
important product
purchase

44. SmartPaks Upsell Emails

45. SmartPaks Upsell Emails
• Launched early September
• Slow to start
• 15% Open Rate
• 1% CTR
• 3 SmartPaks started (1% conversion)
• Potentially re-assess timing and/or welcome
onboarding as the majority are brand new
customers

46. Replenishment

47. Replenishment
Goal: Increase sales of repeat
purchases
Timing: Based on a calculation of
when product will run out
Results:
- 29.4% Open Rate
- 3.56% CTR
- $0.41 Rev/Email
- 9.56% Conversion Rate

48. Inactive Re-Engagement

49. Inactive Email recipient
does not
open, click or
purchase in 45
Re-Engagement days
• Goal: Reactivate customers before Inactive Re-Engagement Email:
Update Profile - 1.1
they become inactive
• Results:
• Open Rate – 5.6% Opens or clicks any
• CTR – 0.5% email or makes a
purchase in 75
• Timing previously was 75 Day, 90 days
Day, 180 Day.
• Observed low engagement
• 3% Open Rate Inactive Re-Engagement Email: Exits Inactive Re-
Enagagement
Pays to be Smart – 1.2
• 0.35% CTR Program
• Decided to make the switch to
catch people earlier in the Opens or clicks any
inactive process email or makes a
purchase in 90
days
Inactive Re-Engagement Email:
10% off Order – 1.3

50. Inactive Re-Engagement
Day 45: “Help Us Day 75: “It Pays to
Serve You Better” be Smart”
Day 90: “We Miss
You! Come Back
and Save 10%”

51. Process / Takeaways

52. How we did it? – Phased Approach
• Identified critical segments and articulated the goals for each (e.g.
1 convert supplement bucket buyers to SmartPaks buyers)
• Mapped out existing email framework to understand the flow from
2 one lifecycle stage to the next (and identify gaps!)
• Prioritized opportunities and executed (while keeping an eye on
3 simplicity and automation to make the most of our limited resources)
• Completed relational tables integration
4
• Our motto: Pilot > Optimize > Automate!
5

53. Where to Focus????
What marketing What marketing What What marketing What marketing
programs will programs marketing programs programs will
help will help programs will will help help
you capture you convert help you grow you ensure you win
new email prospects to customer customer back lost
addresses? customers? value? loyalty? customers?

54. Identify current and wishlist campaigns

55. Reasons to Targeted Email
SmartPak SmartPak
Promotional Lifecycle &
Email Transactional Email
Open Rate 17% 28%  64% higher
Click-Through Rate 2% 5%  150% higher
Conversion Rate 6% 11%  83% higher
Revenue-Per-Email $0.16 $0.44  175% higher
Unsubscribe Rate 0.043% 0.05%  16% higher
Spam Complaint Rate 0.047% 0.043% 10% lower

56. Too much email with triggered messages?
Average No. Emails Received Per Month by Customer Segment
14
12.1
12
10
8.5
8
6
4 3.1
2.8
2
0
Email Subscriber… Email Subscriber… Non-Email Subscriber… Non-Email Subscriber…
* Includes promotional emails and reminders (when applicable), order shipped emails with tracking number, rate and review
emails, and abandoned cart emails. Does not include transactional emails such as delivery confirmation, order
confirmation, password recovery, etc.

57. Test First - Purchase Cross-Sell
Goal: Increase supplies sales of Subject Line: “You Might Like the Back
supplement buyers by marketing on Track Saddle Pad”
a relevant product to them
Results:
- 26.59% Open Rate
- 6.73% CTR
- $0.23 Rev/Email
- 2.6% Conversion Rate
- Of the orders, half sold
the saddle pad
- Test group performed
2.4x better than
control

58. Test First - Purchase Cross-Sell
Goal: Increase sales by Subject Line: “Stop Sore Feet in their
marketing a relevant product to Tracks”
customers
- Targeted customers with a
particular need
- Reused previous creative
Results:
- 19.41% Open Rate
- 4.31% CTR
- $0.58 Rev/Email
- 12.5% Conversion Rate
- Test group performed 2x
better than control group
- (small test
groups, difficult to draw
solid conclusions off of)

59. Upcoming Goals
Anniversary
Customer-centric conversion
Creative/brand refresh on all current
triggered emails
Real-time product recommendations
Integrated marketing database
Post-purchase upsells and cross-sells

60. Takeaways
Have an action plan
Map out your existing framework and where you want to go
Don’t get overwhelmed
Prioritize based on business goals
Test
Speak to your customers in a timely manner
Analyze your business and what value you want to give to your
customers via email
Demonstrate results of email along the way. Share success

61. Q&A / Contact Info
• Carey Marston Kegel
– SmartPak
– Email Marketing Manager
– Twitter: @CareyMKegel
– Cmarston@smartpak.com
• Loren McDonald
– Silverpop
– VP, Industry Relations
– Twitter: @LorenMcDonald
– Google+: +LorenMcDonald
– Pinterest: intevation
– lmcdonald@silverpop.com

62. Opt-In Welcome

63. Opt-In Welcome
• High Engagement
– 38% Open Rate
– 8.9% CTR
– $0.35 Rev/Email Sent
• Use this high engagement as an opportunity
to sell our brand and increase loyalty and sales

64. Welcome Email Series Enhancement
User Signs up for SmartPak
+ Expand current welcome into 4-part Equine Email
series
Immediately triggered
+ Leverage tracking to include content New Subscriber upon signup; suppress
based on products or pages new Welcome Email 1 from promotional stream
subscribers have browsed
+ Series could look like this: New Subscriber Triggered 1 week
Welcome Email 2 after signup
» Email 1: Confirm
subscription, frequency and benefits New Subscriber Triggered 2 weeks
» Email 2: Happiness guarantee with Welcome Email 3 after signup
recent products browsed
» Email 3: Community New Subscriber Triggered 3 weeks
Welcome Email 4 after signup
resources (blog,
webinars, product
Enters
reviews) SmartPaks
Becomes
SmartPaks
» Email 4: Profile New Member
Member
Welcome
and preferences
updates (add birth Enters First
Places an
date collection, Purchase
order?
once available) Stream
Enters Supplement Up-Sell
or SmartPaks Membership
Up-Sell

65. Technical Side
Relational Tables driving triggered programs
Triggered Programs
Mailings within 1 Program

66. What do we want our emails to accomplish?
Customer’s
lives easier
Superior More time
returns with horse
Create Healthy
value horses
Personal &
timely

67. Shifting Email Revenue Distribution
Better Balance & Value with Lifecycle, Visibility into Transactional
Four Years Ago Last 12 Months
Emails Delivered Promotions Emails Delivered
Lifecycle, 51, 16.4MM, 76
950, 2% % Transactional
, 1.7MM, 8%
Promotional
, 2,572,356, Lifecycle, 1.9
0.98 MM, 9%
Newsletter, 1
.6 MM, 7%
Promotions, Email Revenue
Email Revenue Transactional
Promotions $2.3MM, 66 , $221K, 6%
Lifecycle
$872,531 %
$8,846
82%
1%
Lifecycle,
$777K, 22%
Newsletter
$180,542
17% Newsletter, $
190K, 6%
* Email revenue for August 2008 to July 2009 and last 12 months (August 2011 to July 2012).