Triggered & Transactional Emails That Really Work

1. FEBRUARY 25, 2015 TRIGGERED & TRANSACTIONAL EMAILS THAT REALLY WORK AN ALLEN EDMONDS’ SUCCESS STORY

2. YOUR PRESENTER Jessica Grewal Account Director BlueHornet

3. 15% 16% 16% 16% 21% 25% 29% 28% 32% 31% 49% 23% 23% 30% 31% 30% 32% 32% 37% 33% 46% 56% 0% 10% 20% 30% 40% 50% 60% Subscriber is dormant, shows no… Shopping cart abandon or other type… Post purchase offer Post purchase survey Customer contact at offline locations,… Customer offers based on coupon… Messages based on rules related to… Messages triggered based off criteria… Customer changes or updates… Welcome campaign (a series of… Welcome message (triggered after… Enterprise Mid Market AUTOMATED/TRIGGERED MESSAGE UTILIZATION Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents Please select the types of automated trigger campaigns you currently use.

5. WHO IS THE ALLEN EDMONDS’ CUSTOMER? Businessman, professional, politician or leader in other fields where business attire is expected Typically dislikes shopping; appreciates the professionalism and convenience of Allen Edmonds stores and website Not uncommon for him to ask for help selecting footwear / fashion Conscious of personal presentation – both formally and casually – wants to be seen as a smart dresser Regardless of age, wants to be seen as relevant, driven, mature yet youthful; loves Timeless Classics, latest styles, custom offerings and WebGems Loves being “in the know” and appreciates unique offerings with stories VS. same old, same old Core customer Our fast- growing 2ndary target is more psychographic

6. THE ROAD TO AUTOMATION Batch & Blast • Limited Automation •Welcome •Transactional Fully Automated • Welcome Program • Cart Abandonment • Transactional • Post Purchase Series Preparing & Testing

8. WELCOME CAMPAIGN Revenue per email doubled. Opt-out rate dropped from 0.73% to 0.07%.

9. ORIGINAL WELCOME SERIES 1 2 3

10. 1 2 NEW WELCOME SERIES Day 1 Day 38

11. RESULTS Welcome Messages Aug 2013 – Current Welcome #1 Welcome #2 Welcome #3 Subject Line Welcome to Allen Edmonds Welcome to Allen Edmonds Our Commitment to Our Customers Enjoy Free Shipping & Returns - Every Day - No Minimums Open Rate 43.60% 60.80% 55.38% 42.96% Click Thru Rate 14.56% 16.07% 11.79% 10.86% Click to Open Rate 33.39% 26.44% 21.28% 25.28% Revenue-per-Email $1.07 $0.654 $0.425 $0.428 Opt Out Rate 0.07% 0.73% 0.59% 0.61% Current Previous

13. CART ABANDONMENT 1 in 3 visitors who receive the cart abandonment series convert without a promotional discount. Average order value is 4% greater than organic order recovery.

14. CADENCE TEST Timing of sends: 1st realtime, 2nd in 24 hrs 1st at 24hrs, 2nd in 7 days TEST 1 A1 B1 Open Rate 53% 58% CTR 4.6% 5.04% Conversion Rate 4.6% 10.4% Revenue-per-email $0.62 $1.10 Our customers need time to consider their purchases. 1 2

15. NO PROMO VS 10% OFF TEST TEST 2 No promo Promo Open Rate 53% 57% CTR 3% 6.5% Conversion Rate 3.4% 7.5% Revenue/email $0.91 $7.32 5x more orders, 2.5x higher AOV with Promo

17. TRANSACTIONAL 81% of transactional email revenue comes from product recommendations

19. POST PURCHASE SERIES Doubled conversion rate. More than doubled revenue/email with just one test.

20. POST PURCHASE SERIES 1. Upsell & Cross Sell  Belt with shoe  Shoe care products/shoe trees 2. Educate  How to care for you shoes  Rotate and grow your shoe collection

21. POST-PURCHASE SERIES 3. Loyalty – Recraft Program

22. UPSELL TEST: RELEVANT CREATIVE Generic Manistee Cottonwood Wide Basic Open Rate 52.56% 53.75% 57.81% 52.19% CTR 14.30% 14.91% 15.32% 11.48% Conversion Rate 4.39% 2.68% 1.95% 2.05% Revenue-Per-Email $0.90 $0.46 $0.33 $0.30 4-6.5% conversion rate consistently over last 6 mo.

23. $40 increase in AOV with Promo Test No Promo Promo Open Rate 58% 46% CTR 13.9% 12.8% Conversion Rate 0.89% 4.13% UPSELL: PROMO REQUIRED?

24. POST PURCHASE EXPERIENCE: NEW CUSTOMER day 0 day 0/1 ship date 20 days post ship Only to customers who purchased shoes but no belt.

25. Only to customers who purchased a recraftable shoes. Only to customers who purchased shoes. Time for a Recraft 30 days post ship 38 days post ship 45 days post ship 350 days post ship POST PURCHASE EXPERIENCE: NEW CUSTOMER

26. 15% 16% 16% 16% 21% 25% 29% 28% 32% 31% 49% 23% 23% 30% 31% 30% 32% 32% 37% 33% 46% 56% 0% 10% 20% 30% 40% 50% 60% Subscriber is dormant, shows no… Shopping cart abandon or other type… Post purchase offer Post purchase survey Customer contact at offline locations,… Customer offers based on coupon… Messages based on rules related to… Messages triggered based off criteria… Customer changes or updates… Welcome campaign (a series of… Welcome message (triggered after… Enterprise Mid Market WE’RE AUTOMATED! Source: The Relevancy Group, LLC/Executive Marketer Survey n=374 11/13, US Only, Mid-Market & Enterprise Respondents Please select the types of automated trigger campaigns you currently use.

27. WHAT WE LEARNED  Start small.  Test. Test. Test.  No need to reinvent the wheel.  Be aware of the total customer experience.

28. Q&A Have additional questions? Need help with your triggered email programs? Contact BlueHornet: BlueHornetCommunications@BlueHornet.com 619-295-1856

Triggered & Transactional Emails That Really Work

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Triggered & Transactional Emails That Really Work