1:1 marketing in action
DESCRIPTION
True 1:1 marketing is not only possible, it is highly effective in converting and retaining shoppers. Learn how Gorsuch successfully utilizes shopper profiles to communicate with consumers on an individual basis through personalized email alerts and messaging.TRANSCRIPT
1:1 Marketing in ActionThe holy grail of marketing realized.
Gorsuch
Great fashion deserves a personalized
shopping experience.
Who is Gorsuch?
Gorsuch is a Family Owned
Business based in Vail, CO
Started in the back of a station wagon by Renie & David Gorsuch, members
of 1960 Olympic Ski Team
Have 6 Brick & Mortar Stores in premier
ski resorts including: Vail, Beaver
Creek, and Aspen
One of the founding families of Vail,
CO with the famous clock tower the
location of our flagship store.
Expanded business to include a
catalog and website
Gorsuch Evolution
Our Catalog propelled our business and
more than doubled our revenues
Vertical focus
• Vacation clothing and housewares
Our market
• Top 1%
• People focused on fashion, handmade, and
limited availability products
• Expanded from CO and our top 3 states became
NY, CA, TX.
Marketing
• The catalog was our only marketing tool before
we launched an ecommerce site.
• As a result of our website, customers are shifting
away from print catalog allowing us to reduce
print mailing.
Background
Launched website in 1999
Catalog 70%, Stores 30%
1 year later, Website was 10%
• Incremental revenue gains
Ecommerce revenue expanded to
approximately 30% (2007) after we
began sending broadcast emails
Today, ecommerce is close to 50%
(48% in 2011)
Website Stats
Web Metrics for 2011
Over 573,000 unique visitors
Site produced over $16,000,000 in sales
Broadcast emails produced over $1,900,000 in sales
Paid Keywords other than the Gorsuch name produced less than .001% in sales
Natural Keyword Searches were higher, but not significantly
Seasonal business, even on our website
A Week in the Life of Gorsuch Email Marketing
Email Marketing is our only source of marketing
Send out daily broadcasts to entire list, over 1.5M in December
Our Strategy
House list size is too small to segment based on products/categories
Needed to treat each shopper as unique Main source of marketing
Stats:
House list: 45,000 Drops per week: 6 % of revenue from all emails: 19% Open rates: 11% Click rate: 5% Conversion rates: 1.7% Deliverability: 99.8% Unsubscribe: < 1% month avg.
How We Do Segmentation & Targeting
We use MyBuys Alerts as our targeting solution, and
they produce higher results:
Delivery: once a week
Number Sent: Avg. 14,500 or 32% of house file
Open rate: 17% avg. vs. 11% from broadcasts
Conversion rate: 8.4% avg. vs. 1.7% from broadcast
Alert campaign generated an avg. of $25,342 vs $16,112 for a
broadcast during the same period
Also send a standard broadcast email same day.
1:1Email and Alerts
Email Marketing’s Best Friend
MyBuys – Market Leader in Personalization
2008
2009
2010
2011 400+ Retailers
2010 & 2011
Personalization
Leader
IR 500
#16 Fastest
Growing
Marketing &
Advertising
Company
Retailer-Driven
• Emails initiated by
the retailer• Recommendations
based on consumer
& product(s)
• “Reactive”
Consumer-Driven
• Emails initiated by
consumer• Abandoned Cart
• Recommendations
delivered in real-time
Profile & Catalog-
Driven
• Emails initiated by
consumer’s past
behavior• Triggered based on
individual profiles,
catalog, relevance
• “Proactive”
1:1 Personalized Email Options
Personalized Email - CMR
Newsletters
Top sellers
or
personalized
recommendations?Profile
Store
Newsletters, Order Confirmation, Shipping Confirmation, …
Average 1%
lift in Total
Online Sales
from CMR
Retailer-Initiated Emails
Profile
Store
Consumer-Behavior Initiated Email
15
• Real-time monitor watching for
events
• Real-time sends for cart
abandonment increase
conversion by 2x
• Larger pool of targets – can you
recognize consumers as soon as
they land on your site?
• Can you personalize every
email?
Real-time (1 hr)
24 hrs after
7 days after
What would you do if you had idle resources?
Profile- & Catalog-Initiated Email
16
“Alerts are what
you’d do with your
team (if you had
enough of them
sitting around…)”
OfferStore
An Electronic Personal Shopper
22%
78%
65%
81%
Inv = 6
Sale
New
X-sell
Recommendation
Engine
✔
House List
Products with high probability purchase
based on AliB223’s behavior, affinities, …
Relevant catalog
changes that match her profile
Profile
Store
✖
An Electronic Personal Shopper
null
House List
Offer
Store
Recommendation
Engine
Profile
Store
An Electronic Personal Shopper
Inv=1New
X-sellCart
✔
House List
22%
78%
65%
81%
73%
69%
52%
Offer
Store
Recommendation
Engine
Profile
Store
Gorsuch Alert Examples
Alert 1
Subject Line: “On Top of Everyone’s List”
Shopper activity:
Return Shopper
Has an affinity towards wool and
cashmere.
High price point
Purchases predominately outerwear
and cold weather styles.
Gorsuch Alert Examples
Alert 2
Subject Line: “Recommendations for you”
Results at 2-3x Average Rates
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
MyBuys Industry
Open Rate
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
MyBuys Industry
Click Through
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
MyBuys Industry
Conversion
+107% +66% +280%
1:1 Personalized Industry 1:1 Personalized Industry 1:1 Personalized Industry
Converting Consumers by Last Purchase Date
23
Returning after 1-14
days, 13%
Returning after 15-30
days, 10%
Returning after 30-60
days, 11%
Returning after 60-90
days, 4%
Returning after 90-120
days, 3%
Returning after 120-
365 days, 8%
Returning after more
than 365 days/New to
file, 52%
Over 50% of
purchasers were new-to-file or
hadn’t purchased
in last 365 days
* average across MyBuys Personalized Alerts clients
1:1 Personalized Email
Full-service 1:1 email
personalization
Monetize newsletters and
order/ship confirmations
Recover lost revenue from
abandoned shopping carts
Engage and retain consumers
with shopping alerts
24
Retailer-Initiated
• Client Message Recommendations
Consumer-Initiated
• Real-Time Alerts
Profile & Catalog-Initiated
• Personal Shopper Alerts
Profile
Store
Benefits of 1:1 Personalization with MyBuys
Key benefits for Bronto Clients:
Convert shoppers with personalized alerts
Engage visitors with highly relevant promotional
messages
Cross-promote products in activity based triggered
messages
Drive revenue through recommendations in
transactional messages
Increase average order size and repeat purchases
No new resources required to drive 1:1 personalized