Database Spotlight: 6 Tests to Improve Email Program Results

Email marketers can realize double- to triple-digit lifts by implementing six strategies: multivariate testing, dynamic personalization, analytically driven personalization, social media integration, "email outcome integration" and email segmentation.The recommendations shown below are based on a variety of tests conducted by Data Square's clients to boost their email marketing efforts: 1. A/B and Multivariate Testing Testing is one of the most powerful weapons in an email marketer's toolkit. Savvy marketers are differentiated from their less experienced counterparts based on the degree and type of testing they are conducting. However, the array of possible testing options can be overwhelming. If you are unsure about whether or not to embark on testing or don't know what to test first, try the hierarchical approach below that lists ways to score some quick wins. Be sure to demonstrate the lift obtained by each tactic so you can continue to fund your testing initiatives. Open Rate Optimization: Subject lines and "From" names, in combination; Readability Optimization: Preview Pane visibility, text versions, visible text when images are blocked, visibility in different email clients; List and Offer Optimization: Test different offers for different audience segments based on profitability. Segments may be based on lifecycle (e.g. new customers, active customers, inactive customers), purchase history, demographics, interests and preferences; Creative Optimization: Call to action, placement, layout, copy, image-to-text ratio, size, image type, appeal, content, emotion, etc.; Relevance Optimization: Testing a relevance ratio along different segmentation and personalization dimensions, such as: name, content, lifecycle, behavior, interactions, etc.; and Multivariate Testing of various elements in combination. For example, subject line name personalization should be tested along with dynamically personalized content based on user preferences, interests, or purchases vs. a generic communication. 2. Dynamic Personalization Creating relevance via personalization is another powerful tactic to enhance email ROI. Personalization may be created at various levels. Name personalization in the email or the subject line is the most basic method. Progressively higher levels of personalization include those based on geography, stores visited, brands purchased, purchase amount, last purchase date, customer lifecycle, interests, preferences and demographics. Intelligent personalization designed to deliver relevant messaging to the customer can result in lifts upwards of 3x. Basic personalization (e.g. name) has also been found to show lifts.3. Analytically Driven Personalization When you combine personalization with predictive analytics, you begin to see exponential gains in profitability. One successful strategy is to develop predictive models that identify the next logical product for cross-sell and upsell for each customer. Model-based recommendations are then integrated into a dynamically personalized email where each customer receives differentiated upsell/cross-sell product messaging. This may be further enhanced by offer optimization based on product-level or customer-level lifetime value. If you don't have the resources to build a predictive model, you could consider coming up with the next logical product based on business rules and basic reporting. To learn more about how predictive analytics and an enterprise testing strategy can enhance the efficiency of campaigns, please refer to my article on "Four Ways to Increase the ROI of your Marketing Campaigns." 4. Social Media Integration Emails with social media links that can be shared and tracked are a great way for marketers to leverage the social Web. The first step is to create an advocacy index for each customer, based on the number and type of emails that they have shared on social sites. Advocates may then be identified and treated differently for various marketing programs. Data Square's definition of lifetime value incorporates not just the customer's direct revenue/profit, but the value that they bring based on their social influencer status derived from their tendency to share company promotions with others within their networks. 5. 'Email Outcomes Integration'Many marketers have databases that don't include email outcomes, such as: opens, clicks, bounces, etc. Integrating email outcomes within the marketing database at the customer level can be very helpful. For example, integration would allow us to treat customers who have clicked, but not purchased, with reminders and/or progressively higher incentives designed to increase spend.6. Actionable Email SegmentationOnce you have integrated email outcomes and social media advocacy within your marketing database, one of the first things to consider would be an email segmentation scheme. The segmentation should classify customers into actionable categories based on email behavior within a designated time interval. A simplification of a highly successful retail client implementation is outlined below. Customers were hierarchically classified into the following behavioral segments: Social Media Advocates—derived based on the number of times customers shared an email on social sites; Email-inspired Purchasers—attributed based on link-clicking, followed by purchases made within specified timeframes; Coupon Redeemers—based on redemption of coupons provided exclusively via email; Clickers—based on email clicking in the last six months (but no purchases); Openers—based on opened emails in the last six months (but no clicks or purchases); Receivers—based on delivered emails that were not opened/clicked; Undeliverables—those with bad or bounced emails; No Email on File—those who did not provide an email; and Unsubscribed—customers who opted out of email communications. The objectives were to: a) track migration patterns; b) create differential strategies for different segments; and, c) move people up the email ladder. A sample of segment-specific strategies are shown below: Social media advocates were sent custom-designed emails with special incentives to leverage their influencer status; Purchasers were sent emails designed to reinforce and enhance their current patterns, as well as to move them up to advocacy status; and Redeemers were assessed in terms of profitability and sent emails specially designed for the price-sensitive customers. The strategies resulted in significant segment migration up the ladder and gains realized from the overall initiative were in the double digits.Devyani Sadh, Ph.D., is CEO of Data Square, a Wilton, Conn.-based provider of solutions based on a fusion of hosted database platforms, marketing automation, campaign management, analytics and CRM thought leadership. She can be reached at dr.sadh@datasquare.com.

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Database Spotlight: 6 Tests to Improve Email Program Results

Devyani Sadh

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Devyani Sadh