beyond the click: understanding the full value of email to your business
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Beyond The Click:!Understanding and
keeping up with changing email!
!
Its nice to meet you
Jessica Jaye Harley VP Customer Marke5ng Gilt Groupe For context, prior experience includes: • VP Online Marke;ng FTD.com • VP Marke;ng Borders • Director Marke;ng Barnes & Noble • 10 years direct marke;ng
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Who we are
• Launched November 2007 • Curate broad range of daily sales to serve membership
• Over 6,000 premium brands featured
• 1/3 of total company sales occur noon hour on weekdays
• Compe;;ve shopping • Sales last 36 hours • Average 160 sales/week
Who we are
Who we are
• 4.3 million ac;ve members • Over 1/3 login in any month • Extremely loyal customers • 65% Noir members purchase each month
• Interna;onal shipping launched November 2011
Who we are
• Named by Fast Company as one of the Top 25 Innova;ve Companies, #1 in Fashion
• Internet Retailer Top 500 Rank of 49
• DMA 2011 Marketer of the Year
Who we are
• Growth largely fueled by fantas;c customer experience
• Acquired less than 1/3 of our members via paid marke;ng efforts to date
• S;ll growing – 20% of purchasers each month are new customers
Who we are
• Women’s Fashion • Men’s Fashion • Children’s Clothing & Toys • Home • Gourmet Food & Wine • Travel Experiences • City Experiences
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Who we are
• Shoot almost all our own photography • Undergoing major rebranding • Lighter, friendlier and more accessible • Allows product and color to shine
Women’s – Nov, 2007 Launch
Home – launched 2008
Men’s – Oct, 2009 Launch
Baby & Kid’s – Jul 2008 Launch
Jetseger – Sep 2009 Launch
Gilt City-‐ Sep 2010 Launch
Taste – May 2011 Launch
Park & Bond – Aug 2011 Launch
Gilt Japan – Mar 2009 Launch
A lot has changed in these 4 years…
Email has changed too The big ques;on…
Is Email Dead?
Social leaders declared it
Mainstream media
Industry blogs
The evidence is moun;ng
Gilt’s tremendous growth has occurred within an email based model…
During the ;me these claims have been so popular
How is this?
87% of email users check personal email daily
51% of daily mobile email users check personal email 4+ ;mes daily
People are S;ll Paying Agen;on to email
Merkle; View from the Digital Inbox, February 2011
60% of those who report they have a special account for retail emails say they check it daily
Even those who say they are not
Merkle; View from the Digital Inbox, February 2011
But they are changing HOW they interact with email
Mobile is Changing Email Usage
Up 34%
Return Path: Mobile, Webmail, Desktops: Where Are We Viewing Email Now?, Nov 2011. Mobile % increased 34% from April-‐Sept 2011 vs. prior 6 months
While s;ll the minority…
20%
80%
% Total Email Opens
Mobile PC
Up 51%
Kno;ce, Mobile Email Opens Report ;First Half 2011, up vs. Q4 2010
Mobile % is Growing Rapidly
Mobile PC
% Gilt Email Opens
Gilt’s mobile email opens are approaching half
69%
17%
14% Link to Plain Web Site
Link to Mobile Op;mized Site
Link to Mobile Apps
Yet top brands engaging in email marke;ng are s;ll linking to full site
L2 Pres;ge 100©; Mobile IQ, January 11, 2012
Return Path: Mobile, Webmail, Desktops: Where Are We Viewing Email Now?, Nov 2011.
Mobile has come to dominate on weekends
Weekday
Weekend
Gilt Mobile Sales % 73% Higher
Mobile sales are following
Device usage also changes by ;me of day
Mobile % of sales also changes by ;me of day
Midnight to Noon
Noon to 9PM
9 to Midnight
Full 24 hrs
Mobile % of Gilt's Total Sales
+48% to 24hr
How best to keep up with Mobile Email?
Ensure a single voice across channels
Be where customers are
YOY revenue growth fueled by mobile
Understand what works when
Link to App or M-‐Site
It is becoming clear that Email and Mobile will dominate over Social when it comes to revenue
Stores shupng down on Facebook
Facebook stores that opened and closed in the past year: • Gamestop • Gap • JC Penny • Nordstrom
“It was like trying to sell stuff to people while they’re hanging out with their friends at a bar”
Consumers prefer to receive promo;ons via email over social
*Internet Retailer: Young consumers use e-‐mail to find deals, July 2010 **Internet Retailer: For store promo;ons, e-‐mail tops social media, June 2010
Adults* Youth 15-‐24**
Social Email
+ 4X
+ 2X
Where Consumers Prefer to Receive Retailer Promo5ons
Top Brands are promo;ng Social more than Mobile
L2 Pres;ge 100©; Mobile IQ, January 11, 2012
Social is crucial to brands, email and mobile beger cater to direct response sales driving
Social is a great tool for brands to build a rela;onship
Provide fantas;c customer service….
Hi Gilt, me again. Well, late tonight you totally solved the order
problem in a kind of
unexpected, "wow" way. Thanks!
Important part of the promo;onal mix…
Build excitement for sales and promo;ons….
Drive Awareness and engagement
Drive loyalty among exis;ng customers….
Gilt Social Promo5on Sales
New Customers
Exis;ng Customers
Understand full impact of email
2009 2010 2011
Open% Click%
Gilt open rates remain steady in the face of rapid growth, but click rates are declining
Problem? Let’s understand the cause
PC
% Gilt Email Clicks
Mobile PC
% Gilt Email Opens
Mobile email openers are not clicking
Tabbed browsing prolifera;on also likely causing click declines
57% of users switch tabs in a session
Jeff Huang, Ryen W. White (June, 2009). "Parallel Browsing Behavior on the Web"
How should email revenue be measured?
Based on direct click revenue?
Gilt Email Revenue % Total Click Only
Email Revenue
Non-‐Email Revenue
What if we add in revenue from same day email clickers?
Gilt Email Revenue % Total w/Clickers
Email Revenue
Non-‐Email Revenue
How about email openers who purchase in same day?
Gilt Email Revenue % Total w/Openers
Email Revenue
Non-‐Email Revenue
Or revenue from all same day email recipients?
Gilt Email Revenue % w/Recipients
Email Revenue
Non-‐Email Revenue
Perhaps oversta;ng it, but…
Gilt Email Revenue % w/Openers
Email Openers & Clickers
Email non-‐Openers
Email Non-‐Recipients
Some por;on of these sales are driven by email
received
The key is we need to be flexible in our understanding of email’s value or we could be making wrong decisions
When tes;ng, ensure right metrics
Email Tes;ng – Ensure that you are capturing the full impact of tests with cross channel ac;vity
Lifecycle Marke;ng – Ensure that purchases are incremental over ;me
Cross Channel Promo;ons – Does total spending behavior change a{er cross-‐channel promo;on?
Even crea;ve tes;ng can have impact beyond click revenue
Bricks & Clicks is more challenging
Loyalty Cards – If customers are earning something they have incen;ve to give you email and pull out the card Store Credit Cards – Will always impact a lower % of customers, but will be most loyal ones Credit Card Data Analysis – Painful route
What would an email presenta;on be without discussion of Relevancy?
Merchandise Strength
Spend, RFM, Lifecycle
Series1'0'1'2'3'
4'
5'
1' 2' 3'4'
Series1'
Outside Data (Demo/Shopping)
Campaign Management
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Single campaign w/segments by format, offer, # sales, products, etc. across channels
Campaign Results
Customer Sa;sfac;on
Relevance is now more important than ever
Stated Preferences Loyalty
Program(s)
Purchase/ Browse History
Machine Learning Predic;ve Models
Member Data Cube
User Input
Personalized sale emails drive +10% revenue across all customers
User input drives up to 31X to 50X revenue li{s
Lifecycle marke;ng drives up to 2-‐5X revenue increases
But lifecycle messaging can easily be overused
Behavioral targe;ng drives up to 20X revenue li{
User discre;on needs to be used in conjunc;on with sta;s;cs
Key Takeaways
Unified Voice – across all channels Understand what is behind data – It could change your strategies Be where your customers are – Understand the mindset they are in Be relevant and flexible – Adapt, adapt adapt
Ques;ons? Jessica Harley VP Customer Marke;ng Gilt Groupe [email protected]