Halfords: Intelligent Lifecycle Marketing

19th October 2010

eCircle 2

Agenda

1. Introduction – Halfords

2. Email past

3. A busy 6 months

4. Email present

5. What is the future?

6. Summary

Halfords – Life on the Move

eCircle 3

Unique service offer and the natural destination

• UK’s leading retailer of automotive and leisure products

• 1 in 3 bikes sold in the UK is sold by Halfords!

• Strong brand qualities that help customers enjoy Life on The Move

• 469 Stores + [223] Auto centres nationally

• Differentiating business through service

eCircle 4

Agenda

1. Introduction – Halfords

2. Email past

3. A busy 6 months

4. Email present

5. What is the future?

6. Summary

Halfords customer lifecycle: April 2010

eCircle 5

Acquire Convert Grow Retain Reactivate Intensive Care

WelcomePurchase

Stimulation

Repurchase

StimulationLoyalty

Reactivate

Purchase CycleSpecial Treatment

BAU/Offers

Product

Review

Opportunities for email interaction: April 2010

eCircle 6

Browse triggers / stimulate purchase Social alerts Abandon cart

Product Review Re-purchase trigger VIP programmeFlyers

(birthday/sale)Lapsed

open/click/purchase

Welcome Engagement sequence

CO

NV

ER

SIO

NG

RO

WT

H

RE

TE

NT

ION

Cross-sell

0

50

100

Email Marketing Maturity: April 2010

eCircle 7

EMMA Rating = 0.56

StrategyAppreciation of importance of strategy, but not employed. Conscious of growth opportunity. Where to start?

Segmentation & PersonalisationBasic. Use of opens and clicks

Layout and ContentConsistent, clear creative, strong brand focus,

List GrowthHarvesting email addresses in store. Online data capture – competitions, promotions.

Automation & EfficiencyNo event/time based triggers

AnalysisHigh level KPI analysis. No optimisation programme. No conversion tracking

eCircle 8

Agenda

1. Introduction – Halfords

2. Email past

3. A busy 6 months

4. Email present

5. What is the future?

6. Summary

eCircle 9

Strategy – Where do we go?

Focus on immediate opportunities.

Who are the

eCircle 10

Prospect Lifecycle - Prioritisation

VISITORS

BROWSERS

BASKET ABANDONERS

SINGLE PURCHASE CUSTOMERS

REPEAT PURCHASE CUSTOMERS

• First opportunity identified

• High volumes

• Coremetrics partnership – intelligent offer

• Scalable to other triggered programmes

• Potential for further refinement – segmentation by product

eCircle 11

Converting Browsers to Purchasers

We generated some interesting results...

eCircle 12

Product Browse - Monthly Example

20.7%

25.7%

7.1%8.8%

21.0%

10.5%6.2%

BrowsedProduct

Different ProductProduct

Review

3rd

Alternative 2nd Alternative

1st

Alternative

Navigation

• Prospects have shown propensity

• Didn’t buy, but came close

• Importance of product category

• Scale - applies to every Halfords product

• Track and measure

eCircle 13

Prospect Conversion - Abandoned Basket

How does this compare to Browsers?

eCircle 14

Abandoned Basket - Monthly Example

25.1%

40.6%

16.7%

8.4%

AbandonedProduct

Different Product

Product Reviews

Navigation 2.5%

3rd

Alternative

4.0%1st Alternative

2.7%2nd Alternative

eCircle 15

Converting single purchase to multiple purchase

• Targeting specific customer types based on purchase history - Bikes

• Encourage next purchase – incentive

• Intelligent Offer - relevance

• Touch Points - conversion and service message

• Cross sell, brand reinforcement, lifestyle reminder

• Relevant presence beyond the first sale

...how does it work?

eCircle 16

Post Purchase Programme

Week 1

• Offer – Free first service

• “How to guides”

• Driving customer back to Halfords.com

• Extra value, supporting customer

eCircle 17

Post Purchase Programme

Week 2

• Product Review

• Pulled in from existing programme

• Supporting user generated content

eCircle 18

Post Purchase Programme

Week 3

• Second reminder - free service

• Cross sell of “Bike Care” plans

eCircle 19

Post Purchase Programme

Week 4

• More focused cross sell

• Gadgets and Upgrades

• Intelligent offer options

• Clothing and Accessories

eCircle 20

Social Alerts

• User generated content

• Interaction – real terms

• Product confidence

• Push back to site

• Support conversion

eCircle 21

Welcome Programme – Sign Up

• Important first touch point

• Register at every department

• Email confirmation, then newsletters

Keen Cyclist

eCircle 22

Welcome Programme – Preference Centre

• Profile Building

• Stored in eC-messenger- access

• Drives relevant marketing

• Engine room for all campaigns

MOT due in May

We’ve got 3 kids!

Interested in Everything!

eCircle 23

Agenda

1. Introduction – Halfords

2. Email past

3. A busy 6 months

4. Email present

5. What is the future?

6. Summary

Opportunities for email interaction: Today

eCircle 24

Browse triggers / stimulate purchase Social alerts Abandon cart

Product Review Re-purchase trigger VIP programmeFlyers

(birthday/sale)Lapsed

open/click/purchase

Welcome Engagement sequence

Cross-sellCO

NV

ER

SIO

NG

RO

WT

H

RE

TE

NT

ION

Acquire Convert Grow Retain Reactivate Intensive Care

WelcomePurchase

Stimulation

Repurchase

StimulationLoyalty

Reactivate

Purchase CycleSpecial Treatment

Halfords customer lifecycle: Present

eCircle 25

Welcome

BAU/Offers

Websitebrowsetrigger

AbandonBasket

Social Alerts

Sale Flyer

Product Review

Post-Purchase

0

50

100

Halfords October 2010

Industry Average

Best Practice

Email Marketing Maturity: Today

eCircle 26

EMMA Rating

1.14

StrategyTactical, medium and long term strategy in place. Regularly reviewed.

Segmentation & PersonalisationWelcome Programme, Preference Centre, Recency

Layout and ContentFocus for Q4 2010, post analysis

List GrowthMobility and tactical data capture. Further Coremetrics tagging

Automation & EfficiencyAbandoned , Browsed and Post Purchase Triggers

AnalysisMonthly, quarterly reviews and process of optimisation

Email Marketing Maturity: Before and After

eCircle 27

EMMA Rating

0.56

Strategy

Analysis

Segmentation &

Personalisation

List Growth

Automation

& EfficiencyLayout &

Content

0

50

100

Halfords October 2010

Industry Average

Best Practice

EMMA Rating

1.14

0

50

100

eCircle 28

Agenda

1. Introduction – Halfords

2. Email past

3. A busy 6 months

4. Email present

5. What is the future?

6. Summary

Fully Engaged

No incentives needed.

(Regular shoppers might benefit from

customised timing of campaigns or introduction

to new products).

Lost

Once regular customer, no longer shops.

Not online, or lost to a competitor.

Not a Customer

Does not shop at Halfords or respond to

offers.

Might be engaged by competitions / surveys

not directly linked to products.

Returning Customer

Customer rarely shops at Halfords but made a

recent purchase.

Customer Behaviour: Further Segmentation

eCircle 29

4 or More0-1

Orders / 6 Months

0-1

2-4

5 or More

High value customers

2-3

Last Order

(Months ago)

Testing and Optimisation Programme

eCircle 30

Analysis – which segments

KPI benchmarking

Goal definition and priority

Scheduling

Implementation and measurement

Continuous Improvement

Subject Line

MultivariateEye Tracking

Complex testing programmes require control

Automation – Dynamic Content

eCircle 31

Header

Main Message

Call To Action

Footer

Footer

Footer

Footer

• Modular

• CMS

• Logic

• Scalable

• Automation

• Efficiency

Hierarchical Control

eCircle 32

eCircle 33

Agenda

1. Introduction – Halfords

2. Email past

3. A busy 6 months

4. Email present

5. What is the future?

6. Summary

SUMMARY

eCircle 34

• Customer conversion within lifecycle

• The six core disciplines

• Relevant and timely campaigns

• Evolution

eCircle 35eCircle 35

UK

eCircle Ltd14 St John‘s SquareLondon EC1M 4NL

T: +44 (0)20 7618 4200

DE / AT / CHNymphenburger Str. 8680636 MünchenT: +49 (0)89 / 120 09-600

FR2, Cité Paradis75010 Paris T: +33 (0)1 53 80 48 00

ITVia San Gregorio, 4020124 Milano T: +39 02 30 87 620

THANK YOU