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Delivering Increased
Relevance and Revenue with
     Automated Emails


         @CareyMKegel
        @LorenMcDonald
“Trigger” horse sense


Carey Marston Kegel, SmartPak
       @CareyMKegel
  Loren McDonald, Silverpop
      @LorenMcDonald
Happy Birthday Carey!
Why Automation?
1. Relevance




   …Hope is not a marketing strategy.
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
3. Relaxation

 …and no need to push the “send” button!
Agenda
        SmartPak
      Email Program
        Overview




                       Sample
Q&A                   Automated
                        Emails




        Process /
       Takeaways
SmartPak Background
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
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
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
SmartPak Email Team




       Business Owners with many requests for email campaigns




Email Marketing Manager                 Email Designer
Where we came from
          Separate
          systems




                       Email starting
New ESP
                       to get respect




            Hired
          Consultant
Sample Lifecycle Emails
Browse



                Reengagement                                         Cart




Replenishment
                     Sample Automated                                           Order Status

                          Emails

        Upsell                                                              Onboarding




                               Shipment
                                                    Review Request
                               Reminders
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
Browse Behavior
Browse Behavior




 • 37.6% Open Rate
 • 7.35% CTR
 • $0.44 Rev/Email
Browse Behavior
Browse Behavior
Browse Behavior
Cart / Wishlist Abandonment
Updated Abandon Cart

The results:

• 38.5% open rate

• 10.15% CTR
                                  Dynamic product
                                 recommendations
• 50% conversion rate

• $4.80 revenue/email
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
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
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
Supplement Wizard
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
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
Order Status
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
Product Review Request
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
Onboarding Emails
SmartPaks System Welcome Email – New Creative




              41% Open Rate
                5.46% CTR
      Answers questions customers
      may have when their package
      arrives
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
Order/Shipment Reminders
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
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.
Upsell Emails
SmartPaks Upsell Emails
     Customer orders supplements in buckets for their horse




GOAL: Convert customer to order supplements in AutoShip SmartPaks
SmartPaks Upsell Emails


 • Focus on the most
   important product
   purchase
SmartPaks Upsell Emails
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
Replenishment
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
Inactive Re-Engagement
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
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%”
Process / Takeaways
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
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?
Identify current and wishlist campaigns
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
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.
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
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)
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
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
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

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Automated Email Marketing Triggers Silverpop

  • 1. Delivering Increased Relevance and Revenue with Automated Emails @CareyMKegel @LorenMcDonald
  • 2. “Trigger” horse sense Carey Marston Kegel, SmartPak @CareyMKegel Loren McDonald, Silverpop @LorenMcDonald
  • 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
  • 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
  • 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
  • 19. Browse Behavior • 37.6% Open Rate • 7.35% CTR • $0.44 Rev/Email
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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.
  • 42. SmartPaks Upsell Emails Customer orders supplements in buckets for their horse GOAL: Convert customer to order supplements in AutoShip SmartPaks
  • 43. SmartPaks Upsell Emails • Focus on the most important product purchase
  • 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
  • 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
  • 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%”
  • 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

Editor's Notes

  1. Over 3,000 shopping cart abandoned emails sent, per monthSegment versions between supplies versus SmartPaks cart abandonmentSent in AM to customers who abandon cart day prior
  2. Sent 3 days before order is scheduled to be shippedServes as a reminder to customer that they can still add one-offitems to their order and not pay additional shipping22.9% Open Rate6.7% CTR$0.98 RPE22.8% Conversion RateTO NOTE: *Since launching the 2nd reminder email, we are seeing ADDITIONAL revenue (almost double) being generated from this campaign. It does not appear that revenue from the first is beingtransferred to the 2nd.
  3. I removed the high unsubscribes from things like the reactivation campaigns, optin programs when we were given a list when a company went out of business, and campaigns we have killed. Still slightly higher, but not as high by far. Can either remove unsubs or leave.
  4. Added this slide in to show that I think we are still OK to add more lifecycle emails without the fear that they might trigger multiple emails to someone on the same day. If we have emails that are similar in what someone’s actions could have been, then we can suppress one query from another