Tim Watson, Independent Email Marketing Consultant 49% of email marketers in the recent Econsultancy Email Marketing Census 2012 said the lack of email strategy was a major barrier to effective email marketing.

1. Knocking down the Email
Strategy barrier
Tim Watson

2. Why this session?
What do you view as the main barriers to effective email marketing?
Econsultancy Email Census 2012

3. A little bit about me

5. Business objectives
May-2012 Jun-2012 …
May June …
July Jun-2013
August

6. Email marketing objectives
(examples)
• Grow permission database
• Move one time purchases to multiple
• Reduce unsubscribes
• Win-back
• Get product reviews
• Reduce abandoned baskets
• Move DM to online
• Improve customer insight

7. Email marketing hierarchy
Business and Goal setting
marketing Value and
objectives evaluation
Contact &
Relevance
Message, copy &
creative
Deliverability &
Governance and integration
permission management

8. Email marketing hierarchy
Business and
marketing
objectives

9. Email marketing hierarchy
Business and
marketing
objectives
Deliverability &
permission management

10. Email marketing hierarchy
Business and
marketing
objectives
Message, copy &
creative
Deliverability &
permission management

11. Email marketing hierarchy
Business and
marketing
objectives
Contact &
Relevance
Message, copy &
creative
Deliverability &
permission management

12. Email marketing hierarchy
Business and
marketing Value
objectives
Contact &
Relevance
Message, copy &
creative
Deliverability &
permission management

13. Email marketing hierarchy
Business and Goal setting
marketing Value and
objectives evaluation
Contact &
Relevance
Message, copy &
creative
Deliverability &
permission management

14. Email marketing hierarchy
Business and Goal setting
marketing Value and
objectives evaluation
Contact &
Relevance
Message, copy &
creative
Deliverability &
Governance and integration
permission management

15. What’s in
it for me?

16. What’s in it for me = Value

17. Email value proposition
• Be first to know
• Special offers
• Competitions
• Deals and savings
• Birthday gift
• Convenience
• New product information
• Value add content
• Exclusivity & privileges

18. Getting a head start

19. Give a little help

20. Areas of focus

21. Aim
Steve Jobs advice:
Focus on 3

22. How to focus and take aim

23. Map your customer journey
Regular
One purchase
purchase
Lapsing
Prospect
Signup Lapsed
Scenario 1 1,000 7,000 15,000 2,000 5,000
Scenario 2 10,000 1,000 12,000 2,000 25,000

24. Scenario 1 vs 2
Scenario 1 Scenario 2
Win-back lapsed
Lapsed 5000 25000
5% 250 1250
Existing regular 15000 12000
New regular 15250 13250
Convert one time to regular
One purchase 7000 1000
15% 1050 150
Existing regular 15000 12000
New regular 16050 12150

25. Database growth questions
• Value of an email address?
• What is growth per month?
• What is loss per month? What are causes?
• Address count with no email/permission?
• What % web visitors signup?
• How many opt-out during purchase?
• Performance and value by signup source?
• What incentives increase signup?
• Have existing processes been optimised?
• Have all contact points been reviewed?

26. Prospect & one purchase
• When to use an incentive?
• What is the normal time before purchase?
• What is most common product?
• What are most common first purchase?
• What incentive to use?

27. Regular customers
• What is the customer segmentation?
• Who are the best customers?
• What revenue % is from regular?
• What revenue is from best?
• How to cross sell based on history?
• What sort of up sell?

28. Customer segmentation
Photo credit: CraigMarston Flickr

29. Customer insight
1. Categorise products
2. Collate customer transactions by categories
3. Overlay customer profile

30. Transaction data drill-down
Average spend per customer per segment
Customer criteria
Product category Male Female 25-35 … ALL
A £12.00 £11.00 £23.00 £11.50
B £2.00 £5.00 £0.80 £4.30
C …

31. Customer classification
1. Demographic
– Population characteristics, age, gender, social class
2. Preferences
– Own expressed preference.
3. Behavioural
– Purchasing behaviour e.g. value of products, product
category, loyalty, RFM
4. Value
– Lifetime value, last 12 months gross margin

32. Customer classification (2)
1. Geographic
– Area e.g. country, city, urban/rural, north-south
2. Psychographic
– Psychological factors e.g. lifestyle, personality
3. Geodemographic
– Combine the places where people live with their
underlying characteristics and behaviour e.g. Acorn,
Mosaic and Prizm
4. Attitudinal and needs
– Risk in financial services, views on gambling

33. Campaign data drill down
Campaign objective …
Subject line …
Open Click
ALL 15% 5%
Male 10% 4%
Female 20% 7%
Single 8% 2%
…

34. Data collection

35. Analysis of intervals
First Last Purchase
purchase purchase Quantity purchases interval (days)
Sue 04/04/2011 15/01/2012 5 57.2
John 02/11/2011 04/04/2012 2 77
Nigel 03/12/2011 30/01/2012 1 58
Sarah 12/05/2011 25/10/2011 8 20.75
…
Average 53.24
Standard deviation 23.51
84% of people who buy again will do so within
period average+standard deviation. In this case
76 days.

36. Contact policy
• Triggers and transactional
– Confirmation
– Welcome campaign series
– Abandon basket
– Replenishment and reminders
– Post purchase
– Pre/post event
– Web action response
• Bulk email frequency
• Follow up, non-openers & clickers.

37. Optimisation
A or B
>
20%

38. Have a process
Define
Objective Develop Execute and
Create test Review what
and tests and report
hypotheses and why
optimisation define cells results
metric

39. Have a plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Subject Subject Calls to Subject Use of Time of
lines. lines. action lines. images. day/day
From Calls to size, Email Email of week.
name. action placeme length format.
copy nt.
Offers.

40. Metrics & measurement
£

41. How long will all this take?
Very small list size 2 to 3 days
Limited number of products/services
Niche market
Online pure play business
Small to medium list 3 to 6 days
Wider range of products/services with limited distinct categories
Wider demographic
Online pure play
Medium to large list 5 to 10 days
Several complementing categories of products/services
Integrated marketing
Online and offline
Large list 10+ days
Large range products
Wide customer demograhpic
Multi-channel integrated marketing
Online and offline

42. Customer hierarchy
Value Signup
Contact & Message
Relevance
Message, copy & Relevance
creative
Deliverability & Value. What’s in it for
permission management me

44. Thank you for listening
Questions? Let’s connect…
• Twitter
– @tawatson
• LinkedIn
– http://uk.linkedin.com/in/tawatson
• Web
– www.zettasphere.com
• Blogs
– dmaemailblog.com/author/tim-watson/
– www.smartinsights.com/author/tim-watson/