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Member-to-Subscriber Conversion Stream Analysis and Conversion Performance Recommendations July 2013 July 2013 Provided by Leslie A. Howard [email protected] 1 This is an analysis and resulting recommendations made for a B2C company’s subscriber conversion communications stream. The company’s service is clothing rental by mail. This client does not have sophisticated CRM capabilities nor manpower capacity, therefore recommendations focus on changes that could make the greatest positive impact. Definitions : Member is a guest who has registered but who has not converted to a paying user of the service Subscriber is a paying user of the service

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Member-to-Subscriber Conversion Stream Analysis

and Conversion Performance Recommendations

July 2013July 2013

Provided by Leslie A. Howard

[email protected]

This is an analysis and resulting recommendations made for a B2C company’s subscriber conversion

communications stream. The company’s service is clothing rental by mail.

This client does not have sophisticated CRM capabilities nor manpower capacity, therefore

recommendations focus on changes that could make the greatest positive impact.

Definitions:• Member is a guest who has registered but who has not converted to a paying user of the service

• Subscriber is a paying user of the service

Situation� Study after study proves that word-of-mouth (WOM) is most influential information source for

consumers, i.e., no other “tactic” out-performs WOM’s conversion rate

� In its current development stage, [client name] is using WOM as its primary means to acquire

subscribers

� Prior to layering in additional paid or owned media tactics, [client name] should optimize its

WOM conversion performance

Objective� Assess Member-to-Subscriber conversion communications stream to improve conversion

Background

� Assess Member-to-Subscriber conversion communications stream to improve conversion

performance

Methodology� Registered for [client name] membership 25-Apr-13; deliberately did not convert to subscriber

(provide credit card account)

� Collected two months’ of communications (note: all communications were received via email,

as opposed to other/additional comms channels)

� Analyzed communications to provide [client name] with insight regarding the experience

provided from the Target’s perspective– Note, actual email performance metrics were not available to analyst to augment observational analysis

2Provided by Leslie A. Howard

[email protected]

The 40/40/20 rule was established by industry

benchmarks showing that target data and offering

content are each twice as important as the

creative elements in their effect on program

performance.Data

40%Content

Keep in mind the 40/40/20 direct marketing “golden rule”.

Offer (incentive and content

Segmented Target

Lists & Frequency

Due to the methodology employed for this

analysis—observations based on a single

registration profile—it’s not possible to comment

on how effective segmentation and list selection

was.

Therefore, this presentation primarily focuses on

Content and Creative.

40%Content

40%

Creative

20%

Offer (incentive and content

access) & Offering

(subscription cost and rental

volume)

Visual Graphics,

Layout, Copy

3Provided by Leslie A. Howard

[email protected]

Summary of Recommendations to Improve Conversion

Performance

Focus Areas Recommendations

Da

ta

Registration

Data Capture

� Consider adding registration fields upon which you can segment non-converted

subscribers in the future

Frequency

� Decrease touch frequency

� Consider implementing greater user control over frequency: opt-down, user

preference center

Timing

� Ensure that all communications targeting non-converted subscribers focus singularly

on conversion for at least the first two weeks post-registration (strike while the iron is

hot)

Provided by Leslie A. Howard

[email protected]

Co

nte

nt

hot)

Offer� Continue to ensure offer type aligns with target’s position in life cycle

� Vary the subscription offer’s positioning without greater financial exposure

Content � Ensure that the content promoted in conversion touches align with target’s interests

Landing Page

� Implement a conversion landing page that reinforces subscription benefits and the

offer, and teases (again) the conversion-focused content, e.g., celeb styles or new

collections

Cre

ati

ve

Layout

� Ensure conversion CTA and offer are positioned prominently above the scroll

� Consider locking-up social icons with header

� Consider continuing layout testing

� Currently, [client name] could (in theory)

segment, then treat differentially non-

converted registered members based on a few

rudimentary measures:– Date of registration

– Referring source, which (in absence of paid media)

should mostly be direct and organic search

� Consider testing into (completion vs.

You can’t segment unless you capture actionable

information.

Mask Client

Mask Client

abandonment) adding to the registration page

additional fields that would enable future

segmentation, e.g.,– Fashion Interests? (e.g., formal workplace,

business casual workplace, sultry evenings, fun

weekends, special occasions)

– Zip code

– How did you learn about [client name]?

5Provided by Leslie A. Howard

[email protected]

Mask Client

Non-converted members received a high volume of varied

content.

S M T W T F S

Apr 25 26 27

28 29 30 May 1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31 Jun 1

26

Conversion/Promotion

Best of the Week

Curated Collection

Conversion from C/S1

9

11

4

Color Key per Content TopicVolume

Subscription focused (count: 10)

Community focused (count: 22)

Period Tracked: April 25 Registration through July 15

Registration date

Provided by Leslie A. Howard

[email protected]

26 27 28 29 30 31 Jun 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 Jul 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15

30

New Arrivals

New Collection

I’m not a model but …

Lookalike Celeb Styles

Styling Tips

Member Mashup

Miscellaneous Miscellaneous includes: Kickoff

Summer, #Throwback Thursday,

Meet Our Model, Join Our

Community

2

5

10

7

7

2

5

Product focused (count: 17)

Fashion focused (count: 9)

Note: Dates with 2 colors

indicates 2 emails received

The touch frequency was excessive.

S M T W T F S

Apr 25 26 27

28 29 30 May 1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31 Jun 1

26

Period Tracked: April 25 Registration through July 15

� Near daily touches:– Received 63 touches during 81 days

– Only 21 touch-free days

� High frequency can cause declining email

performance metrics and drive opt-outs.

Since [client name]’s efforts are primarily

word of mouth, an opt-out represents a large

opportunity cost.– Conduct a cohort analysis of unconverted

members to understand: open, click and opt-out

Provided by Leslie A. Howard

[email protected]

26 27 28 29 30 31 Jun 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 Jul 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15

30

members to understand: open, click and opt-out

and conversion rates over time as well as which

subject lines perform best

– Consider implementing an “opt-down” option

that decreases frequency but doesn’t eliminate

all contact

– Consider implementing a user preference center

through which members and subscribers can

indicate which content types, frequency and to

what email address they want to receive [client

name] communications, then promote the

preference center

However, relatively few touches focused on subscription

conversion.

S M T W T F S

Apr 25 26 27

28 29 30 May 1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31 Jun 1

26

� 17 of 63 (27%) touches could be attributed to

conversion, indicated by a combination of

offer, prominence of offer, CTA and

prominence of CTA.– That’s being somewhat generous…

� Strike while the iron is hot. Interest is highest

upon registration.– Touches immediately following member

registration should focus on conversion, and

should serve-up the benefits of subscription

Period Tracked: April 25 Registration through July 15

Provided by Leslie A. Howard

[email protected]

26 27 28 29 30 31 Jun 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 Jul 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15

30

should serve-up the benefits of subscription

with strong trial offer incentive.

– This premise includes “operational”

confirmation email(s).

– Consider integrating/testing outbound

telemarketing and/or mail into the conversion

comms stream.

Indicates touch that was conversion-focused

Key

The offer didn’t initially align with the Target’s position in

life cycle.

S M T W T F S

Apr 25 26 27

28 29 30 May 1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31 Jun 1

26

� 17 of 63 (27%) touches could be attributed to

conversion indicated by combination of offer,

prominence of offer, CTA and prominence of CTA.– That’s being somewhat generous…

� Initially, the offer was a refer-a-friend (RAF)

incentive which didn’t make sense for

members who are not subscribers, i.e., the

RAF incentive is best for subscribers who

have experienced the service/product and

thus would make a recommendation

Period Tracked: April 25 Registration through July 15

Provided by Leslie A. Howard

[email protected]

26 27 28 29 30 31 Jun 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 Jul 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15

30

thus would make a recommendation

Indicates touch w refer-a-friend incentive

Key

Indicates touch w subscription incentive

Indicates touch w both types of incentives

Once the offer transitioned to a subscription incentive, the

same offer was used without variation.

S M T W T F S

Apr 25 26 27

28 29 30 May 1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31 Jun 1

26

� 17 of 63 (27%) touches could be attributed to

conversion indicated by combination of offer,

prominence of offer, CTA and prominence of CTA.– That’s being somewhat generous…

� Initially, the offer was a refer-a-friend (RAF)

incentive which didn’t make sense for members

who are not subscribers, i.e., the RAF incentive is

best for subscribers who have experienced the

service/product and thus would make a

recommendation

� Once the offer was better aligned, the same

Period Tracked: April 25 Registration through July 15

Provided by Leslie A. Howard

[email protected]

26 27 28 29 30 31 Jun 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 Jul 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15

30

� Once the offer was better aligned, the same

offer was repeated without variation – If Target doesn’t respond to offer 1, 2, 3 times,

it’s time to start providing variety, e.g., same

financial exposure but positioned in varied ways

as opposed to repeating “Sign up now & Get 30

days free”, for example:• “Yours Free: XX new outfits every week for a month”

• “Perfectly Polished for a Month”

• “This month, look like a celeb for free”

Indicates touch w refer-a-friend incentive

Key

Indicates touch w subscription incentive

Indicates touch w both types of incentives

The content promoted was not always aligned with the

target’s position in life cycle.

S M T W T F S

Apr 25 26 27

28 29 30 May 1 2 3 4

5 6 7 8 9 10 11

12 13 14 15 16 17 18

19 20 21 22 23 24 25

26 27 28 29 30 31 Jun 1

26

Conversion/Promotion

Best of the Week

Curated Collection

Conversion from C/S

Member Mashup

1

9

11

4

2

Color Key per Content TopicVolume

Subscription focused (count: 10)

Community focused (count: 22)

1

4

Period Tracked: April 25 Registration through July 15

Actual Recommended

Content Promotion

3

1

Provided by Leslie A. Howard

[email protected]

26 27 28 29 30 31 Jun 1

2 3 4 5 6 7 8

9 10 11 12 13 14 15

16 17 18 19 20 21 22

23 24 25 26 27 28 29

30 Jul 1 2 3 4 5 6

7 8 9 10 11 12 13

14 15

30

New Arrivals

New Collection

I’m not a model but …

Lookalike Celeb Styles

Styling Tips

Member Mashup

Miscellaneous Miscellaneous includes: Kickoff

Summer, #Throwback Thursday,

Meet Our Model, Join Our

Community

2

5

10

7

7

2

5

Product focused (count: 17)

Fashion focused (count: 9)

Note: Dates with 2 colors

indicates 2 emails received

2

3

4

2

Landing pages that reinforce subscription benefits, the offer

and content teased were not employed.

� All links seem to land in the same place:

login required.– This approach presents a hurdle with no

added value.

� Best practice would test landing pages that

reinforce subscription benefits, the offer

and would tease (again) conversion

focused content, e.g., celeb styles or new

collections.

Mask Client

Mask Client

Provided by Leslie A. Howard

[email protected]

Mask Client

The art direction/layout improved during the observation

period. July 11

Reduced to 40%

June 11

Reduced to 40%

� Improved prominence and

featuring of clothing

� Arguably more attractive and

less distracting/clothes-

competing color palette

Mask Client Mask Client

Provided by Leslie A. Howard

[email protected]

Mask Client

Mask Client

Mask Client

Mask Client

Mask Client

Mask Client

However, the conversion offer is below the scroll, appearing

as almost a footer element.July 11

Reduced to 40%

Viewed in Chrome

July 11

Reduced to 40%

Viewed in IE

Mask Client

Mask Client

Provided by Leslie A. Howard

[email protected]

� Both CTAs—Browse Now & Sign Up Now

& Get 30 Days Free—are below the scroll.

� The conversion offer is locked-up with “footer” information. It should

be at the top.

� Given the real estate dedicated to the Blog, one would think that it’s

an important CTA. Is there evidence that blog engagement drives

conversion?

� Consider locking-up social icons with header.

� Consider continued layout testing.

Mask Client

Mask Client