Jan 13, 2015
Bring Your Customers Back From the Dead …Unless they are actually dead.
Dungarees.net
We sell more than pants.
Retailer of work apparel & footwear
2000 – Opened two retail locations
(Columbia & St. Louis, Missouri)
2004 – Launched Dungarees.net
Double digit growth every year since going online
Internet Top 500 Company
What you should take away
§ How long you should wait before you Re-Engage a customer
§ Optimizing for Opens, Clicks or Conversions & what’s the difference
§ How to analyze the data to determine the true Re-Engagement ROI
§ Common Pitfalls to avoid
§ When you should not try to Re-Engage
Bring Your Customers Back And Keep them Back
What is Email Re-Engagement?
Bringing back subscribers that are no longer active on your site or on your email list.
§ Some of these contacts may have NEVER even been to your site or purchased.
§ Generally involves better incentives than you would offer active subscribers
Why Do Customers Become Disengaged?
§ Emailing too often
§ Not emailing enough
§ Not emailing them with relevant or personalized messages
§ Not offering them a good incentive to make a purchase
§ Going to their SPAM folder
§ They only subscribed to get initial offer
§ They truly are dead!
Why You Should Clean Your List
§ Lower your cost of Email Marketing
If You’re Paying… 1 Send Per Week 2 Sends Per Week
$2 Per Thousand Sends $5,200 $10,400
$3 Per Thousand Sends $7,800 $15,600
$4 Per Thousand Sends $10,400 $20,800
§ Increase Sender Rating
For a list with 50K unengaged email addresses
Calculation: ( (unengaged) * (sends per week) * (cost per thousand) * 52 ) / 1,000
How Often Should You Clean Your List?
§ What type of products do you sell?
§ What is your email frequency?
§ There are customers that do continue to purchase but do not open emails
Why Should You Try Re-Engaging?
§ You’ve made improvements that you feel can turn the inactive subscriber into an engaged customer.
§ You have something else to offer them that you couldn’t when they became inactive
Re-Engagement Strategies
1. Optimizing for Opens
Goal:
§ Focus on getting the customer to open the email
§ Best to use if you are planning on moving any opens back to your email list
§ Clever, attention-grabbing subject line
§ Offer in subject line
Re-Engagement Strategies
1. Optimizing for Opens
2. Optimizing for Clicks
Goal:
§ Focus on getting the customer to your site
§ Best to use if you are planning on moving clicks back to your active list
§ Engaging content. Test both putting the offer on the email or trying a “Click here to receive offer” in your email content
Re-Engagement Strategies
1. Optimizing for Opens
2. Optimizing for Clicks
3. Optimizing for Conversions
Goal:
§ Focus on getting the customer to convert
§ Good if only moving conversion back to active list
§ Make as good of an incentive that you feel you can afford
§ Put incentive directly on the email
Pitfalls to Avoid
§ Cleaning your list prematurely
§ Sending to customers that convert but don’t open
§ Not offering enough incentive
§ Allowing too long of an expiration on the code and not making immediate call to action
Dungarees’
Re-Engagement Strategy
Why We Wanted to Re-Engage?
§ We felt there were revenue opportunities on the inactive list
Goals:
§ To get the subscriber to Convert
§ Test variations so we had good data on future re-engagement campaigns
§ Won’t know full ROI until we analyze in a few months
Our Re-Engagement Strategy
3-Part Series
§ 25 Percent Off
§ Free Gift
§ “Dungarees is Awesome”
§ Also, we will send one more email during our peak time and then a final, you will be removed from our list email.
Data & Results
Our Re-Engagement List
§ Orders per subscriber…
1 Year 2 Years 3+ Years Never
32% 26% 30% 12%
§ We have cleaned our list 3 times
§ January 2010, March 2012, November 2012
§ Each time removing by “Hasn’t opened last 50 emails”
§ Hadn’t converted in…
1 2 - 5 6 - 10 10+ None
68% 19% <1% <1% 12%
25 Percent Off Series
§ Wanted to get the best offer possible that we felt we could give.
§ Break-even scenario on initial orders
25 Percent Off Series
§ “Save 25% On Your Next Carhartt Order”
§ “Best Carhartt Discount We’ve Ever Given”
§ “Save 25% On Your Next Carhartt Order – No Minimum”
25 Percent Off Series
§ “Save 25% On Your Next Carhartt Order” – 4.25%
§ “Best Carhartt Discount We’ve Ever Given” – 5.68%
§ “Save 25% On Your Next Carhartt Order – No Minimum” – 3.66%
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
94% 6% 34% 14% 2.7
§ 25% Off $100 or 15% Off Any Purchase
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
94% 6% 28% 8% 1.5
Gift With Purchase Series
§ For customers that might be more enticed with a giveaway.
§ Not quite as good of a deal as the % Off
Gift With Purchase Series
§ “We’ve Missed You, Come Get Your Free Gift”
§ “Come Back and Get Your Free Gift”
§ “Haven’t Seen You Around For a While, Come Get Your Free Gift”
Gift With Purchase Series
§ “We’ve Missed You, Come Get Your Free Gift” – 5.21%
§ “Come Back and Get Your Free Gift” – 4.75%
§ “Haven’t Seen You Around For a While, Come Get Your Free Gift” – 3.75%
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 6% 18% 9% 0.7
“Dungarees is Awesome” Series
§ Show the subscriber all the benefits of being a Dungarees customer
§ No immediate offer that is exclusive to the email
“Dungarees is Awesome” Series
§ “We’ve Missed You” – No Offer
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 5% 15% 13% 1.0
§ “Free Shipping On Any Purchase”
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 4% 14% 7% 0.4
§ “We’ve Missed You” – Free Shipping
Delivery Rate Open Rate Click Rate Conv. Rate Orders Per Thousand
99% 7% 17% 5% 0.6
Comparison
Typical Marketing 99% 21% 26% 5% 2.7
Series Delivery Rate
Open Rate
Click Rate
Conv. Rate
Orders Per Thousand
Percent Off 94% 6% 32% 12% 2.4
Gift w/ Purchase 99% 6% 18% 9% 0.7
Dungarees is Awesome 99% 5% 16% 10% 0.8
Breakdown
§ Sample from a recent marketing email
1 Year 2 Years 3+ Years Never
Sent 32% 26% 30% 12%
Conv. 46% 26% 27% 0%
§ Hadn’t converted in…
0-6mo 7-12mo 1 Year 2 Years 3+ Years None
Sent 42% 14% 21% 9% 5% 9%
Conv. 58% 15% 12% 3% 2% 10%
Breakdown
§ Orders per subscriber…
1 2 - 5 6 - 10 10+ None
Sent 68% 19% <1% <1% 12%
Conv. 47% 52% <1% <1% 0%
§ Sample from a recent marketing email
1 2 - 5 6 - 10 10+ None
Sent 59% 31% 3% 1% 7%
Conv. 40% 45% 9% 3% 3%
Conclusion
§ Make sure the subscriber is truly inactive
§ Decide your strategy
§ Give the best deal you can, even if you break even
§ Consider different incentives for different customers
§ Keep your campaigns controlled with short time frames
§ Focus on the Lifetime Value of the customer