Customer Win-back

Jill Brittlebank, Director of Strategic Services

Protecting and Reviving Customer Engagement

Agenda

Context

Defining inactives

Prioritising activity

Keeping what you have

Managing inactivity in a multi-channel world

15/12/2011

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The state of the channel

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Source: DMA

Open rates Click rates

Unsubscribe rates

Mobile email marketing

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Connecting with consumers 18-24 are the heaviest users

of mobile email

Special offers are the

preferred type

of mobile email

It’s not just calls & texts

Mobile phone activities

Checking

personal email

is predominant

activity

Common

behaviour among

Social and Mobile

users

Base: Respondents with an Internet-enabled mobile phone

And consumers are engaging

through other channels Meteoric rise of social media

Social networks continue to grow

Over one-third of consumers interact

socially with marketers

42% say that e-mail is a primary driver

in social networking

One-quarter review and rate

purchased products

Almost 20% say they forward

messages to family and friends

What’s deemed “most shareworthy”?

New product information, special

offers and promotions

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Are we really sure they’re inactive

Three quarters of your emails are going unread

Communications through multiple channels are increasing

Is email really that important?

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Ranking of channels for ROI Proportion of companies ranking as ‘excellent’ or ‘good’

Email consistently top/second top channel for ROI since 2008

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SEO 73%

Email marketing 72%

PPC 56%

Social media 43%

Mobile marketing

34%

Affiliate marketing

47%

Offline direct marketing

32%

Online display advertising

24%

Average split of online marketing

budgets

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Website 23%

Email marketing 18%

PPC 15%

SEO 10%

Display advertising 8%

Affiliate marketing 6%

Social media 6%

Mobile 2%

Other 12%

Role of email with social web

Email is the glue between social and commercial web assets

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Social Media activity:Your brand personality

Your website:The commercial

shop-front

Email communications:Reminds consumers to

re-engage

Drivestraffic

Keepsinformed

Drivestraffic

Builds brand engagement

Prompts engagement between sales cycles

Drives reason for regular contact

How to define an inactive

customer in a multi-channel

world?

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The Customer Journey covers multiple active and passive

advertising interactions across paid, earned, and owned media

Da

y 1

Da

y 8

Closer Influencers Introducer

Natural Search

Display Campaig

n Email Marketin

g

Affiliate Branded

Keyword Search

Here’s what you see…

Site Purchase

Site Visit

Social

Here’s what you missed

Purchase Path Analysis provides full

Funnel visibility

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Where do you focus resource

Once you understand the role of email in the purchase funnel for

your different customer segments, then you can improve the

content of the emails you send to be more effective

But that’s not the whole story…

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Engagement Trends

14

Natural attrition affects winback

41.1%

33.5%

5.8%5.1% 3.4%

2.4%

44.7%

35.7%

5.7%6.8%

2.9%1.7%

49.2%

37.3%

5.9%5.2% 3.4% 2.1%

47.2%

40.3%

6.1%6.4%

3.8% 2.2%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

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6-9 mth 9-12 mth 1-2 yrs 2+ yrs

% e

mai

ls o

pe

ne

d

Tenure and Recency

% e-mails opened in FY10 Q4

Who’s Who?

Someone who is actively opening & clicking, even though not

purchasing in the last year, should be seen as an active customer.

Active

0-12 month buyers

0-12 month prospects

60 Day openers &

clickers

Inactive

13-24 month buyers

13-24 month

prospects

61-120 day openers &

clickers

Lapsed

25+ month buyers

25+ month prospects

120+ day openers &

clickers

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Winback Scenarios – how to nurture Four main types of Winback Scenarios

1) Reactivating inactive subscribers (those who’ve chosen to

stop engaging)

2) Reactivating lapsed purchasers (those who’ve stopped

buying)

3) Dealing with unsubscribes

4) Dealing with an invalid email (those who we can no longer

contact via email)

But of course, the best approach is to prevent – or delay –

their initial lapse

Dead or sleeping?

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If they’re not – nurture them, they loved

you once….

It was hard enough to capture in the first

place and it will cost you far more to

acquire a new one. Email still delivers

the highest ROI

Dead or just sleeping?

If they’re dead – get them off your

database and stop diluting the reporting

of your activities and stop paying for the

CPM.

Prevention is better than Cure

Irrelevance is one of the top two reasons people opt-out

of e-mail.

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Relevance Drives Retention

9%

14%

3%

10%

33%

44%

45%

0% 20% 40% 60% 80% 100%

Can't remember

Other

Concerns about privacy

Don't remember opting in

Didn't see value of their email

Not relevant to me

Sending too many emails

Reasons For Opt Out

What do subscribers want?

Behind discounts and sales,

task e-mails like personal alerts,

reminders, and customer

experience follow ups rank

highest with what consumers

would like to see via e-mail

(upwards of 40%).

Forrester Wave Q4/2009 states

“to increase both campaign

effectiveness and efficiency,

marketers need the ability to

easily automate programs by

using triggers.”

Subscribers want relevance

Prevention is better than Cure

Relevance has specific meaning in digital marketing

The first is engaging customers across their lifecycle

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Relevance Drives Retention

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Six Factors of Relevance

Contact Management

Rescuing a Poor Customer Experience

Drive a Replacement Purchase

A returns trigger may yield up to

75x the return of a standard

promotional message

Surprise & Delight factor

Preserve the brand experience

Cross-sell into other products

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Is email the channel of choice?

Don’t flog a dead horse: send reactivation messages through the

most appropriate channel

Retargeting banners

Mobile messaging

Social messaging

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Integrated Dynamic Messaging Remarketing

Remarketing/Retargeting drives

engagement

10 x Return

on your advertising

investment

Rue La La were looking at different ways to engage with their customers and make use of a growing Facebook presence – Facebook-Exclusive achieved highest ever click through and revenue and increased fanbase

Social Media Programmes

Is It An Email, or a Mobile Message?

Designing for mobile

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Clear messaging

Adjust design for 320px wide (desktop emails are 600px wide)

Easy to use with a touch interface

Encouraging cross-channel

interaction

”Our relationship with the e-Dialog team has always allowed us to think

strategically and pioneer marketing

techniques ahead of industry trends,”

says Chris Davies, head of Digital

Innovation for British Airways.

“Mobile is a key new channel for our

marketing mix and e-Dialog proved

they understand the challenge and are

able to help us create integrated

campaigns which address this need.”

© e-Dialog Inc. All Rights Reserved.

Summary

Consider the role of email in conversion funnel

Understand the drivers of disengagement by customer segments

Address the reason for their inactivity

Send them compelling re-engagement prompts

Communicate through the best channel(s)

Remember the ROI …. it may be time for Goodbye

15/12/2011

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Questions

Jill Brittlebank, Director of Strategic Services

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