Category Archives: Retention

Speaking Your Customers’ Language

I ran an all-day customer workshop recently with one of our customers, a rapidly growing online retailer.  There were seven of us in the workshop altogether; myself, three colleagues and three key people from the customer (one technical, one commercial – the founder, in fact – and one marketing).  The meeting went well and we covered a lot of ground, however one of the things that slowed us down a little early on (and I have come across this in the past) was the fact that we weren’t always talking about the same thing, even though we thought we were.  Specifically, we were using certain terms (‘personalisation’, ‘data quality’, ‘inactive’ and even ‘spam’) however some assumptions had been made about what each of these terms meant.

The first reason I bring this up is that it reminded me of the importance of having a common understanding of the terms and language that we are using every day, especially in an industry such as ours where new terms are being created (and forgotten) on a rapid and ongoing basis.  Using the above example to illustrate the point, we very nearly spent a substantial amount of time discussing the relative merits of the different data integrity tools on the market – those which help ensure your email data is accurate, correctly constructed, current and so on – when in fact the customer wanted to discuss how best to qualify the value of different contacts dependent on the recency and nature of their last contact.  For him, ‘data quality’ was a value term, not a measure of the likely accuracy of an email address.  I don’t think there’s a right or wrong answer here, but I do think it was critical that we were able to find a common understanding earlier in the conversation as it saved us all a lot of time.  Another example might be personalisation, a popular term at the moment throughout our industry.  I’ll bet if you ask three of your colleagues what they think personalisation means, you’ll get three different answers, even if you limit the context to email marketing.  The reason why this is important is that it’s all too easy to make the assumption that everyone agrees on the definition of a term (especially one like personalisation) and a lot of time and money can subsequently be spent (wasted?) pursuing separate goals.  Getting this kind of thing right up front is critical.

The second reason I think this is important is with regard to speaking your customers’ language.  This mattered in the customer meeting I talked about earlier (aside from the ‘data quality’ discussion, their technical attendee talked about all email marketing campaigns as ‘spam’ as a matter of course, which took a while to get my head round!) and it is even more important when as marketers you’re communicating with your customers.

Understanding and using the kind of language that is familiar and accessible to your customers is critical to successfully growing and retaining a loyal customer base.  This is even more important if your customers are based all over the world and not just for the obvious reason.

Here are just two examples of companies that I think do it well.

1.    Selfridges
Selfridges is a global brand with global customers.  Everything about its brand image resonates premier quality and class.  They’ve been named the world’s best department store twice and they work hard to manage their online relationships in a way that complements this established reputation.

They do it well.  Their emails are consistently elegant, understated and easy to navigate, just like their store.  They also offer additional personalisation options to further reinforce their credentials and whilst the language is subtle, by offering next day delivery, international click and collect, complimentary returns and a gift wrap service, the overall experience is precisely the kind of thing that I would expect to appeal to a Selfridges subscriber.

Selfridges example (shortened)

2.    Innocent Drinks
From the moment I signed up to the Innocent Drinks newsletter, I had a feeling I’d be in for something a little bit different.  Having carefully cultivated their quirky image (all the way back to their Headquarters, Fruit Towers), they have since sought to speak to their subscribers on the same terms.

Whilst email marketers often limit themselves by focusing exclusively on incentives and ROI, Innocent has always aimed to take a different approach reading more like a collection of cool stuff a friend might send you on a Friday afternoon.  Although product launches or company announcements do get mentions, you’ll also find links to models of ants’ nests, the world’s poshest treehouse, odd-shaped clouds and Labradors in tutus.

This ‘tone of voice’ helps Innocent to maintain a personality that resonates well with their customers.  They take it further still by soliciting customer feedback – an oft overlooked opportunity – and better still, acting on that feedback, all of which helps them maintain a positive relationship with their subscribers (even despite some of the challenges they’ve faced in this area since Coca-Cola became a key shareholder in 2009).

Innocent Drinks example

To finish, the message here is simple.  Whatever you do, make sure you think about the language you use more in the future than you are already doing today.  You’ll save yourself a whole lot of time in the long run and if you get it right then your customers will be amongst the most loyal of all.  Good luck!

Here are some other interesting articles and posts about the same subject;

http://biznology.com/2013/05/do-you-speak-your-customers-language/
http://www.silverpop.com/blogs/email-marketing/communicate-in-your-customers-language.html
https://coalescemarketing.com/2013/10/are-you-speaking-your-customers-language/

 

Goodbye “channels” – Welcome the marketing “channel of one”

The practice of creating a seamless customer experience across digital channels has been a common marketing challenge for a long while now, and integration of some offline and online channels through campaign segmentation is the norm. However, for most of us it is difficult to get a grip on every part of the customer experience.

To put this into perspective, there are typically more channels or touch points throughout a customer experience that are entirely generic and not personalised at all, versus those that are. They are not personalised by name, proposition or offer, call to action, location. None of that. This is diluting the effectiveness of a CRM strategy because we don’t have a clear understanding of what every individual experiences through every single channel. But this is changing.

Take a look at this:

Technology is beginning to bridge some of the knowledge gaps to identify non-converting prospects who visit their retail stores. Some brands have tried to patch over this marketing need with solutions such as in-store wifi, but this newer technology is incredibly powerful to marketers. The customer experience in the video above could have resulted in a simple browse and no sale. The marketing opportunities created from understanding that experience through the data collected, will help us to follow-up appropriately with the right content, at the right frequency at the right time – all with an enriched profile of that customer.

The marketing challenge is beginning to shift towards a desire to converse “sequentially” with prospects and customers through any channel at any time. Sequential messaging across multiple devices, locations and mediums. All of these could be personalised, tailored and in a defined, tested and optimised sequence:

  • In-store offers and personalised greetings
  • In-product messaging (some cars are already enabled in this way)
  • In-app messaging
  • Email
  • SMS
  • Website
  • Outdoor advertising
  • Direct mail
  • Delivery messaging

What would this list look like for your brand?

Algorithms could be developed, to enable CRM platforms to intelligently learn and adapt to the best performing sequence of proposition, content and timing. Automatically.

What does all of this mean for Marketers?

Marketers will soon be spending much less time thinking about which message to send through which channel, but more time deciding on the right sequence of messages with the channel serving as a distribution channel. I like to think of this as ‘the channel of one’.

 

‘Strictly’ tips to use dynamic content to improve conversion

Dynamic messaging has been with us for some time (as has Strictly Come Dancing), but very few people realise the benefits preferring to simply batch it and blast it!

Dynamic messaging isn’t just another marketing buzzword. It’s a critical stage in the evolution from mass marketing to personalised, one-to-one marketing. But it goes beyond making sure that each customer and prospect receives a targeted message via his or her preferred channels.
While proper targeting techniques are critical to the process, utilising response data is equally important.  This will help you to determine how, when and with what content you will next contact them.

For example, let’s say your data suggests that Patrick, Sophie and Susanna (if it was a ‘Strictly Come Dancing’ list that is) are most likely to respond to similar personalised email offers they receive at the beginning of the month. While the end result was a familiar outcome i.e. none of them took advantage of your offer – the way they got there was vastly different.  Here’s how each scenario (or dance if you prefer) played out:

  • Patrick opens the email, clicks through to your website and spends 10 minutes browsing before leaving the site
  • Sophie, on the other hand, opens the email, and then discards it
  • Meanwhile, Susanna deletes the email without even opening it (that’s newsreaders for you!)

Now, in the past, your contact strategy might have entailed sending all three consumers variations of the same follow-up email.  However, a dynamic strategy has rules in place that suggest different follow-up tactics based on differing responses.   Here’s an example of how this could play out for you:

  • Given that Susanna didn’t even open the email, and history indicates she hasn’t opened any emails in the last six months, your follow-up with her might be via a different medium
  • Since Sophie showed she was receptive to email, a change in the offer or creative in the follow-up email might improve her response
  • Finally, given the time Patrick spent on your website, you will probably want to get in touch with him sooner than you do the others to keep his attention (given he had a short attention span during the foxtrot!)

Research indicates that leveraging segmentation and personalisation to create a dynamic contact strategy can improve email click-through rates and conversions – just read any of the DMA benchmark reports or national email surveys.

While personalising the content, creative and channel certainly plays a large role in boosting response, the dynamic aspect provides significant lift as well.

Since monitoring response and reacting to it are distinguishing elements of dynamic marketing, it’s easy to reevaluate and tweak individual messages or entire messaging funnels as the campaign continues.

This makes dynamic marketing critical when reaching customers and prospects that are especially difficult to contact and historically challenging to make convert – just like Tony Jacklin’s dancing in fact!

Are high open rates holding you back?

Our findings last month on the Obama campaign caused a lot of debate but the bare facts of our analysis still stand – had Obama’s team optimized for improved open rates, their send volumes would have dropped and their all-important donations would have followed.

Open rates remain a widely used and hugely misleading measure of performance and engagement in the email industry. At best they give you an idea of a campaign’s performance in isolation but at worst they lead email marketers to focus on optimizing the wrong strategies for their email program.

Here we discuss how to identify if maximizing open rates is holding you back and how to go about identifying the strategies that will have the biggest impact on your results.

The open rate paradox

Using EDS Analyst we examined the relationship between open rates and total unique opens for the top 200 email senders by list size in the US for 2012.

We were confident that, like the Obama campaign, there would be an inverse relationship between rates and totals – so as rates increase, totals decrease and vice versa. We call this the open rate paradox or to paraphrase a popular sports trusim: rates are for show, totals are for dough.

Each dot on the graph below represents a single sender and we picked out some well-known brands as reference points.

Sure enough, the graph shows that for most large senders, there is an inverse relationship between open rates and the total number of opens – the higher the open rate, the lower the number of total opens. Rates are for show.

It’s also no coincidence that nearly all of the brands with the biggest lists (orange dots) also have highest number of total opens because they are sending more opportunities to open.

Although opens don’t directly correlate to revenue, even the most avid fans of open rate maximization would agree that the more people that actually open your emails, the more engaged your database and the more revenue or conversions you are likely to generate. Totals are for dough.

Keep it simple – focus on just three strategies

If your goal is only to improve open rates, then your strategy is simple: halve your list by suppressing your less active subscribers and watch those rates soar… and those total opens plummet! But if your goal is to increase total opens, then the bell curve in the graph above helps define three clear strategies:

  1. List size:
    Has the biggest impact on totals and can be improved independently of the other two.
  2. Increase send volume:
    Significantly increases total opens for relatively little effort (low effort to gain ratio).
  3. Optimize for rates
    Increases total opens but requires the biggest effort (high effort to gain ratio).

Most brands are clustered towards the lower middle of the curve because it’s the easy place to be. By and large, they all put a similar amount of effort into their program and use the same undefined strategies.

The outliers, however, go above and beyond in one of three ways – those to the right have very high open rates, those to the left have high send volumes and those at the top are combining high send frequency with very big lists to produce massive send volumes.

In effect, this is the three different strategies implemented to their extremes.

Of course, there are limits to the effectiveness of each strategy and these are defined in the graph above by the orange line to the left (frequency cap) and green line to the right (optimization cap).

These boundaries exist because for any given list size there is point at which diminishing returns kick in for both frequency and open rate. And, as the big empty space to the right of the green optimization cap shows, it’s very hard to send a large volume of email while still achieving a high open rate.

So the basis of a successful email program is to continually grow your list while finding a balance between increasing send volume and maximizing open rates with better offers, targeting, subject lines, etc.

And you find that balance by ignoring your open rates…

Define your strategy by ignoring open rates

To illustrate the effect these strategies have on an email program, we have created a simple optimization chart, below. The green curves represent the impact of send volume on total opens and the brown lines represent the impact of open rate on total opens.

Each intersection represents a hypothetical 10-hour unit of resource, as a means of comparing the effort required to implement each strategy. As you get closer to each cap, the effort required to improve your totals with your chosen strategy increases exponentially.

Imagine your brand is the star in the middle of the curve and you want to take on your leading competitor, the lightning bolt.

If you use open rates to define your strategy, then you focus your resource on maximizing those, route A. Your open rate may now be much better than your competitor’s but they are out-mailing you, so they are still creating twice as many opportunities to buy or convert.

If you choose to increase your send volume, ‘route B’, then your open rate drops but your total opens more than double. However, as you approach the frequency cap, the impact of your strategy diminishes and you still trail your competitor.

If you use totals to define your strategy, then you take ‘route C’, which balances resource between increasing send volume and maximizing open rates. Your open rate drops but you are finally creating more opportunities to buy than your competitor.

Smart email marketing is not just a case of increasing send volume indiscriminately or of only focusing on ever tighter targeting. There is a balance that exists for each brand, you just have to find your own sweet spot.

Total opens the key to optimizing your program?

In this instance, we have highlighted the open rate paradox using total opens because that was the data available. However, we’re confident you will find the same inverse relationship in your own campaigns with total clicks and, more importantly, revenue. And in the end that’s the only metric that matters!

 

Opt-In & Opt-Out – Definitions of Consent according to the draft EU Data Protection Regulations

As a consumer, I am always in favour of legislation which seeks to protect individual freedoms, and reduce ambiguity in what organisations can and cannot do with my personal information. As a marketer too, it is important that the availability and use of a consumer’s personal information be governed by clear guidelines, and ends in a mutually beneficial result – at the bare bones of it; providing a customer with timely, relevant communications based on the data they have provided, at the same time as (hopefully) making a profit for the organisation I am working for.

The real worry is that the current draft of the European Union Data Protection Regulation, does the opposite by introducing more complexity and ambiguity than already exists, and potentially creates further issues which would not have surfaced if the status quo were maintained.

The verbatim definition of consent within the Regulation is as follows:

“…’the data subject’s consent’ means any freely given specific, informed and explicit indication of his or her wishes by which the data subject, either by a statement or by a clear affirmative action, signifies agreement to personal data relating to them being processed…”
[http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0011:FIN:EN:PDF Article 4 (8)]

Furthermore, the “Conditions for Consent” are laid out as follows:
1. “The controller shall bear the burden of proof for the data subject’s consent to the processing of their personal data for specified purposes.

2. If the data subject’s consent is to be given in the context of a written declaration which also concerns another matter, the requirement to give consent must be presented distinguishable in its appearance from this other matter.

3. The data subject shall have the right to withdraw his or her consent at any time. The withdrawal of consent shall not affect the lawfulness of processing based on consent before its withdrawal.

4. Consent shall not provide a legal basis for the processing, where there is a significant imbalance between the position of the data subject and the controller.”

[http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2012:0011:FIN:EN:PDF Article 7]

In the above, I have highlighted the key elements here – the Regulation is essentially saying that organisations need to obtain a clear and explicit statement/action by which a data subject provides consent. From an email permission-marketing best practice perspective, this is fine – however the Regulation does not address whether or not this would need to be retrospective for existing databases, and whether or not organisations would be able to contact customers with whom they have had previous interactions (as is currently permissible under the existing Privacy and Electronic Communications Directive – and, the majority of the time, expected by consumers).

This is completely disregarding whether or not those consumers actually want to be contacted, and if the “burden of proof” detailed above is an enforceable requirement (in a worse-case scenario) – then the Regulation is effectively saying organisations must delete said data if they cannot prove consent has been given explicitly! Then there’s the possibility of dispute over the meaning of “informed & explicit”… well, you can see where this is heading to – more ambiguity and less clarity.

Furthermore, there is an argument out there that this Regulation does not take into consideration the low risk use of Business-To-Business (B2B) data for marketing purposes – where, more often than not, a organisation would hold and process information on another organisation or group of members of staff, with perhaps multiple key decision makers – not an individual.

In summary, the intention is good but the detail is lacking – I strongly urge the legislators in Brussels to revise and alter the Regulation so that it can sit with the existing Privacy and Electronic Communications Directive They also need to focus on what the effect of the changes in the draft Regulation will be for both consumers and organisations.
To find out more about the consequences of this legislation passing unaltered, and the potential impact on your own business, take a look at http://dma.org.uk/eu-data-protection This site also provides information on how to take immediate action, by lobbying your regional MEPs.

LinkedIn: No greater email marketing #fail than over-writing your customers preferences

LinkedInWTF2
I just got this  email from LinkedIn  Subject Line “A change to your DMA: Direct Marketing Association (UK) Limited digests” – the 3rd such email I have had this week about a group I belong to.
In it they tell me that they are going to ignore my mailing preferences and unsubscribe me from the group digests of which I get 1 a week a frequency selected by ME! I have now been forced to go and re-subscribe to the weekly digests of groups that I want to hear from 3 times this week. Do LinkedIn really think that is a good use of my time?

Just in case anyone was wondering, while I am not really a FB kind of person I definitely am an UBER LinkedIn user.

- I am a paid subscriber and highly active – I post, place jobs, recommend stay in touch connect etc.
- I have several thousand connections
- I check my page multiple times a day and use it as my primary vehicle for maintaining my business network. I have my preferences set exactly the way I want them for some groups – no email, others weekly and some daily
- I get 10 or more emails a day from linked in and open about 1 in 3 on my desktop and 80% of them on my mobile
- I click on at least one a day and some days 3 or more
- I save all my emails I currently have 2900 in my Linked in folder of which less than half 1427 are “unread”
- I regularly search for old messages or invites and click on them

So how on earth can a bunch of engineers and/or too clever by half marketers come to the conclusion that they know what I want better than me?
The irony is by stopping the DMA group weekly digest, they are going to reduce the chances of me ever visiting again! I wonder how the DMA and other group managers feel about that.

I can’t understand why having gone to the trouble of asking me to set my preferences LinkedIn should choose to expressly ignore the stated preference from a highly engaged – dare I say knowledgeable – paying subscriber. Surely that is as bad as spamming after all what is so different about these 2 scenarios?

1) I use LI preference centre choose to receive 1 email a week – after 3 months LI decide to unsubscribe me for not visiting the group.
2) I use LI preference centre and choose to receive 1 email a week – after 3 months LI decide to send me daily digests or 3rd party emails from partners they think I should hear from

LinkedIn are insulting their members’ intelligence one would think that someone like me would know how to both unsubscribe or hit the spam button. So if I haven’t done either of those things, it’s probably because…I DON’T WANT TO!

Join us at the International Email Marketing Summit on May 16, 2012

Register now for this virtual summit and learn all about the latest trends and best practices in email marketing without leaving your desk!

And it won’t cost you a penny/eurocent/dollarcent/… 

The DMA is proud to be a sponsor of this, the very first edition of the International Email Marketing Summit.

Not only will you be inspired by the latest tactics that work but you’ll also take away a list of action items you can implement immediately.

Featured speakers

  • Dela Quist, Alchemy Worx
  • Dave Chaffey, Smart Insights
  • Tamara Gielen, Plan to Engage
  • Denise Cox, Newsweaver
  • Riaz Kanani, Alchemy Worx
  • Kath Pay, Plan to Engage
  • Arianna Galante, ContactLab
  • Tom Bailey, eCircle
  • James Bunting, Communicator
#IEMS speakers

What’s on the agenda?

  • Beyond just selling: engaging with your subscribers
  • 7 reasons why your subscribers don’t respond
  • Tips & tricks for designing emails for a mobile audience
  • Inactive Subscribers: Prospects or Problem?
  • Creating a successful content strategy for email marketing: 8 Easy Steps
  • and lots more…