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The State of Email Marketing
    Going Beyond Cross-Channel

                            March 29, 2012




                                             Presented by:
                                             Julie Anne Reda
What You Will Learn
•   The state of email marketing
•   Defining cross-channel analytics for your business
•   Ensuring the right data foundation
•   Using the right analytics for the right stage
•   Three critical factors to take you program beyond cross-channel
     – Segmentation
     – Cadence
     – Content Optimization
•   Beyond opens and clicks
     – Creating a lasting relationship over the customer lifecycle.
•   Q&A
THE STATE OF CROSS-CHANNEL
Spending in Cross-Channel Continues to Grow




      Source: Forrester Research Inc; US Interactive Marketing Forecast, 2011 To 2016; August 2011
But So is Spending in Analytics…

81% of CMOs plan to increase the use of customer analytics
over the next 3 to 5 years
                                               IBM Survey of 1,700 CMOs
Most Email Marketers Find it Difficult to Get to
Data




                              Source: Marketing Sherpa 2012 Email Benchmark Report
Let Alone Take It to the Next Level.




                                   Source: BRITE and NYAMA,
                                   Marketing ROI in the Era of Big
                                   Data, Mar 2012
68% of marketers do not have a method for quantifying the
ROI from email marketing programs
                  MarketingSherpa, 2012 Email Marketing Benchmark Report,
Consumers are Demanding Better Interactions from Marketers

46% of consumers said they would value a brand or retailer more if it
remembered their buying and browsing behavior across all channels
                                  E-tailing Group and Mybuys, Closing the Cross-Channel Gap, June 2011
Beyond Cross-Channel Means Better Data ->
Better Action -> Better Interactions
DEFINING CROSS-CHANNEL ANALYTICS
GOALS FOR YOUR BUSINESS
Decide What is Your Core C-Level Goal – and
Work Down.

                                                 Example: Increase Margin
                       Business
                         KPI



                                                   ·   Increase effectiveness of marketing programs
                       Marketing                   ·   Increase Lifetime Customer Value
                         KPI




                                                              ·   Increase re-activation of subscriber
                     Cross-Channel
                                                                  database
                          KPI                                 ·   Increase re-purchase conversion



                                                                     ·   What content/offers are best at
                                                                         re-activation?
            Define Insights and Questions that                       ·   Does timing impact re-activation?
                  would Delver Results                               ·   Can I predict re-purchase behavior if
                                                                         I have the right data?
Then Establish a Framework for Cross-Channel
Data-Driven Success

           Strategy                   Metrics                      People                  Technology



      ·   What insights do we   ·   What KPIs will lead to   ·   What divisions,           ·   Do I have the right
          need to accomplish        insights?                    agencies and partners         data to get meaningful
          goals?                ·   What are the levers?         are critical connection       insights across
                                ·   What are the existing        points?                       channels?
                                    interactions now?        ·   Do I have the right       ·   What don’t I know
                                ·   Do they work?                people to get insights        about my subscribers
                                                                 from data?                    that I need to
                                                             ·   Are the right people          accomplish my
                                                                 connected to the              business goals?
                                                                 technologies so they      ·   What’s needed to get
                                                                 can take action?              insights to make
                                                                                               interactions more
                                                                                               meaningful?
                                                                                           ·   Is the technology
                                                                                               measuring different
                                                                                               levels of success
                                                                                               across channels and
                                                                                               mapping up to larger
                                                                                               organizational goals?
Ensure the Right Foundation for Data that
Leads to Insight
                     Multi-Channel
                     Data Streams



                  Customer data > goals


                     Multi-Channel
                   Testing & Analysis

                       Customer
                      Intelligence

                      Competitive
                      Intelligence



                      INSIGHT
And Avoid
Common
Pitfalls
• Establish a single
  customer identifier
  across channels
• Ensure integration best
  practices
• You’ll need more than
  data to get the insights
• Not all customers have
  the same needs
Use the Right Analytics at the Right Stage
                  Moving to a Customer-based Marketing Model
Data and              Messaging            Cadence             Loyalty           Advocacy
Intelligence

  •Segmentation        •Opt-in              •Offer Mgmt          •Cross-           •Life-time
                        Management                                Sell/Upsell       Value Models
  •Scoring                                  •Multivariate
                       •Propensity           testing             •Churn Models     •Win-back
  •Predictive
                                                                                    strategies
   Profiling           •Messaging           •Contact             •Systemic
                        Model                Optimization         scheduled        •Influencer
  • Response
                                                                  messaging         Scoring
   Probability         •Segmentation        •Next-best
                        and optimization     action model        •Results          •Engagement
                                                                  measurement       Scoring
                                            •In Market
                                             Timing (Time of                       •Sentiment
                                             Day/Day of                             Scoring
                                             Week,
                                             Seasonality)
                                            •Channel
                                             Coordination
Segmentation – Taking it to
 the Next Level
• Create audience personas
• Use these personas and segmentation to
  inform:
   – Creative
   – Message strategy
   – Offer strategy
   – Channel
• Perform campaign performance analysis
  for each segment
Cadence – The Right Message, the Right
Channel, the Right Time

• Analyze what your
  customers want
• Look at cadence of
  time, location, and
  channel
• Make programmatic
  adjustments

                        Source: ShopSavvy
Content Optimization – Why You Need to Go
Beyond A/B
                       1. Test Design




                                              2.
          6. Program
                                        Segmentation
           Execution
                                          Selection




                                          3. Test
          5. Insight
                                         Execution




                            4.
                       Measurement
                        & Analysis
Beyond Opens and Clicks
        Map Your Work to Larger Marketing Objectives



                                            ·    Example: increase margin
                       Business
                         KPI



                                                   ·   Increase effectiveness of marketing programs
                       Marketing                   ·   Increase lifetime customer value
                         KPI                       ·   Decrease attrition




                                                              ·   Increase re-activation of subscriber
                     Cross-Channel
                                                                  database
                          KPI                                 ·   Increase re-purchase conversion



                                                                     ·   Mapped subscriber activity to
                                                                         conversion metrics by segment
            Define Insights and Questions that                       ·   Look beyond open and clicks to
                                                                         purchases, downloads, coupon
                  would Delver Results                                   redemptions, form completions and
                                                                         social share / influence
Key Take-aways:
•   Email is the tether that ties customers experiences across channels
•   Cross-channel analytics needs to be driven by business goals
•   The next stage of segmentation is rich audience profiling combined with rich
    multivariate testing.
Things to Do Today   • Create one primary key
                       to identify users
                     • Develop disciplined data
                       practices.
                     • Use analytics to align
                       your program with
                       business goals.
                     • Employ cadence to
                       interact
                     • Test – Test – Test
                     • Move beyond opens and
                       clicks
Thank you!

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State of Email Marketing Going Beyond Cross Channel

  • 1. The State of Email Marketing Going Beyond Cross-Channel March 29, 2012 Presented by: Julie Anne Reda
  • 2. What You Will Learn • The state of email marketing • Defining cross-channel analytics for your business • Ensuring the right data foundation • Using the right analytics for the right stage • Three critical factors to take you program beyond cross-channel – Segmentation – Cadence – Content Optimization • Beyond opens and clicks – Creating a lasting relationship over the customer lifecycle. • Q&A
  • 3. THE STATE OF CROSS-CHANNEL
  • 4. Spending in Cross-Channel Continues to Grow Source: Forrester Research Inc; US Interactive Marketing Forecast, 2011 To 2016; August 2011
  • 5. But So is Spending in Analytics… 81% of CMOs plan to increase the use of customer analytics over the next 3 to 5 years IBM Survey of 1,700 CMOs
  • 6. Most Email Marketers Find it Difficult to Get to Data Source: Marketing Sherpa 2012 Email Benchmark Report
  • 7. Let Alone Take It to the Next Level. Source: BRITE and NYAMA, Marketing ROI in the Era of Big Data, Mar 2012
  • 8. 68% of marketers do not have a method for quantifying the ROI from email marketing programs MarketingSherpa, 2012 Email Marketing Benchmark Report,
  • 9. Consumers are Demanding Better Interactions from Marketers 46% of consumers said they would value a brand or retailer more if it remembered their buying and browsing behavior across all channels E-tailing Group and Mybuys, Closing the Cross-Channel Gap, June 2011
  • 10. Beyond Cross-Channel Means Better Data -> Better Action -> Better Interactions
  • 12. Decide What is Your Core C-Level Goal – and Work Down. Example: Increase Margin Business KPI · Increase effectiveness of marketing programs Marketing · Increase Lifetime Customer Value KPI · Increase re-activation of subscriber Cross-Channel database KPI · Increase re-purchase conversion · What content/offers are best at re-activation? Define Insights and Questions that · Does timing impact re-activation? would Delver Results · Can I predict re-purchase behavior if I have the right data?
  • 13. Then Establish a Framework for Cross-Channel Data-Driven Success Strategy Metrics People Technology · What insights do we · What KPIs will lead to · What divisions, · Do I have the right need to accomplish insights? agencies and partners data to get meaningful goals? · What are the levers? are critical connection insights across · What are the existing points? channels? interactions now? · Do I have the right · What don’t I know · Do they work? people to get insights about my subscribers from data? that I need to · Are the right people accomplish my connected to the business goals? technologies so they · What’s needed to get can take action? insights to make interactions more meaningful? · Is the technology measuring different levels of success across channels and mapping up to larger organizational goals?
  • 14. Ensure the Right Foundation for Data that Leads to Insight Multi-Channel Data Streams Customer data > goals Multi-Channel Testing & Analysis Customer Intelligence Competitive Intelligence INSIGHT
  • 15. And Avoid Common Pitfalls • Establish a single customer identifier across channels • Ensure integration best practices • You’ll need more than data to get the insights • Not all customers have the same needs
  • 16. Use the Right Analytics at the Right Stage Moving to a Customer-based Marketing Model Data and Messaging Cadence Loyalty Advocacy Intelligence •Segmentation •Opt-in •Offer Mgmt •Cross- •Life-time Management Sell/Upsell Value Models •Scoring •Multivariate •Propensity testing •Churn Models •Win-back •Predictive strategies Profiling •Messaging •Contact •Systemic Model Optimization scheduled •Influencer • Response messaging Scoring Probability •Segmentation •Next-best and optimization action model •Results •Engagement measurement Scoring •In Market Timing (Time of •Sentiment Day/Day of Scoring Week, Seasonality) •Channel Coordination
  • 17. Segmentation – Taking it to the Next Level • Create audience personas • Use these personas and segmentation to inform: – Creative – Message strategy – Offer strategy – Channel • Perform campaign performance analysis for each segment
  • 18. Cadence – The Right Message, the Right Channel, the Right Time • Analyze what your customers want • Look at cadence of time, location, and channel • Make programmatic adjustments Source: ShopSavvy
  • 19. Content Optimization – Why You Need to Go Beyond A/B 1. Test Design 2. 6. Program Segmentation Execution Selection 3. Test 5. Insight Execution 4. Measurement & Analysis
  • 20. Beyond Opens and Clicks Map Your Work to Larger Marketing Objectives · Example: increase margin Business KPI · Increase effectiveness of marketing programs Marketing · Increase lifetime customer value KPI · Decrease attrition · Increase re-activation of subscriber Cross-Channel database KPI · Increase re-purchase conversion · Mapped subscriber activity to conversion metrics by segment Define Insights and Questions that · Look beyond open and clicks to purchases, downloads, coupon would Delver Results redemptions, form completions and social share / influence
  • 21. Key Take-aways: • Email is the tether that ties customers experiences across channels • Cross-channel analytics needs to be driven by business goals • The next stage of segmentation is rich audience profiling combined with rich multivariate testing.
  • 22. Things to Do Today • Create one primary key to identify users • Develop disciplined data practices. • Use analytics to align your program with business goals. • Employ cadence to interact • Test – Test – Test • Move beyond opens and clicks