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0-60: Lessons Learned from Creating aSuccessful Ecommerce Email Program FromScratch
Susan Baier Jason BaerMultichannel Marketing Manager Senior Director,Interactive Services
Esscentual Brands Off Madison Ave (MightyInteractive)
Sunday, March 4, 2007
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Game Plan - Thinking Outside theBox
Esscentual Brands Overview
The Big Picture
State of the State – Challenges
Commitment to Change
Email Strategy & List Management
Measuring Email Success
Test, Test, Test
Other ROI Tactics
On the Horizon
Top 10 Lessons Learned
Questions
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Esscentual Brands Overview
Two Key Brands
Vitabath – department & gift stores (nowonline)• Premium bath & body brand• Unique formula created in 1957 by
Europeanskin care specialists
• Bath and body gelee, sugar scrubs, lotion,soaps, travel and gift sets
Claire Burke – department & gift stores (nowonline)• High-quality home fragrance brand• Products that allow customers to decorate
with fragrance• Unique and decorative candles, fragrance
diffusers, room sprays, simmering oils,potpourri and home fragrance gifts
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State of the State – ChallengesFaced
Old E-Commerce Website
Both brands on one site – not easy to shop bybrand
Navigation not intuitive
Limited organic search capabilities
Temperamental shopping cart process
Not fostering positive consumer relationships
Consumer Considerations
Would they buy fragrances online?
Do we separate websites by brand?
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New direct-to-consumer focus
Separate e-commerce sites by brand
Plans for web/catalog interaction
Consumer Research/Segmentation
Online surveys – invitations in products/email
Segmented based on “why they buy” &preferences
5 Claire Burke audience segments
4 Vitabath audience segments
Website Redesign
Drive online sales (versus call center)
Intuitive navigation & check-out process
Optimized for search
Prominent email & catalog opt-ins
Commitment to Change
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Big Picture – How Does the ViewLook Now?
Multi-channel strategy fueling highly functionale-commerce sites
OLD website: ~150K e-commerce for 2005 year
NEW websites: 250K in December 2006 alone(950K e-commerce for 2006 year) + 500%
Site-wide conversion rate as high as 7.27%(benchmark 2.5-3.5%)
Online revenue increased+ 500% in 2006!
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Philosophy = Test, Test, Test & DoMore of What Works
Time of Day
Day of Week
Subject Line
From Line
Catalog only v. email only recipients
Offer Testing - % v. dollar off v. shipping
Format/Layout
Message Testing (Urgency)
Last Chance Reminders
Catalog Requests
Send Frequency (2x month)
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Measuring Email Success -Creating a Road Map
Sales per Day-
December 1 - December 31
41
27
59
41
36
27 32
33
31
32
30 34
25 31
19
20
13
11
7 5 9
31
27
17 2
6
18
18
62
30
19
10
6
0102030405060708090
100110
Fri 1
Sat 2
Sun 3
Mo
n 4
Tu
es 5
We
ds 6
Th
urs 7
Fri 8
Sat 9
Su
n 1
0
Mo
n 1
1
Tu
es 1
2
We
ds 1
3
Th
urs 1
4
Fri
15
Sat 16
Su
n 1
7
Mo
n 1
8
Tu
es 1
9
We
ds 2
0
Th
urs 2
1
Fri
22
Sat 23
Su
n 2
4
Mo
n 2
5
Tu
es 2
6
We
ds 2
7
Th
urs 2
8
Fri
29
Sat 30
Su
n 3
1
Date
Sale
s
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Audience – Buyer/ProspectSegmentation
Large endeavor – existing database and opt-insfromdifferent sources
Segment by response/brand
Interested in “why you buy”
5 Claire Burke segments, 4 Vitabath
ExactTarget web-collect on websitesOpt-In Sources Feed Database
CallCenterWebsite Catalog
Buyer/ProspectDatabase
Segment 1
Segment 2
Segment 3
Segment 4
Segment 4
Segment 1
Segment 2
Segment 3
Segment 5
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Audience – Buyer Input
Buyer Input Example: Name the new scent
Claire Burke fragrance
Email consumer survey asking opinion
+700 responses in less than 48 hours
Ensured “right” answer
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Audience – Buyer Input
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Email Strategy
Exclusive offer – focus on urgency
Product introduction emails
Catalog drop reminders
Offer reminders
Constant testing
Drive to onlineshopping cart
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Claire Burke Email Progress
Claire Burke Email Performance Over Time
07,500
15,00022,50030,00037,50045,000
1-O
ct-
05
2-N
ov-
05
3-D
ec-0
5
1-J
an-0
6
2-M
ar-
06
5-A
pr-
06
1-M
ay-0
6
2-J
un-0
6
1-J
ul-06
2-A
ug-0
6
3-S
ep-0
6
2-O
ct-
06
3-N
ov-
06
3-D
ec-0
6
3-J
an-0
7
Blasts - Month - Year
Em
ail
s S
en
t
$0.00$0.10$0.20$0.30$0.40$0.50
Re
ve
nu
e p
er
Em
ail
Re
cie
ve
d
Emails SentRevenue per Email Rec'd
Claire Burke
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Oct Nov Dec Jan
Month
Re
ve
nu
e P
er E
ma
il
Re
ce
ive
d
2005/06
2006/07
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List Management – IncreasingOpt-ins
Originally 1-2K subscribers between brands Increased to + 10K per brand in 2006
Website opt-in prominent
Paired with catalog request
Opt-in incentives
Call center (discount for sign-up)
Sweepstakes/Freebies
• Online/offline partnershipwith Lucky Magazine
• Free Vitabath samples
• Free Scented Claire Burkebookmarks (500-1000 newaddresses/week)
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List Management – List Hygiene
Aggressive list cleansing – remove “inactive”subscribers each month (“inactive” = notopened/clicked in 3 months)
Testing re-opt-in campaigns
“Inactives” unlikely to purchase – why email?
Subscribers coded – entry point/purchase data
House File
Remove Inactives(monthly)
Pull Specific List
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Testing by Brand
Time of Day
Day of Week
$.21 perrecipient33.0%12.2%37.1%Friday
$.25 perrecipient28.5%10.7%37.5%Thursday
$.28 perrecipient29.6%11.5%38.9%Wednesday
$.22 perrecipient
29.6%11.1%37.4%Monday
SalesClick/Openconversionrate
Click ThroughRate
Open RateClaire Burke
$.18 perrecipient36.0%15.0%41.7%6pm
$.36 perrecipient34.1%15.0%43.8%2pm
$.42 perrecipient31.7%14.6%46.0%10am
$.38 perrecipient37.1%16.7%45.1%6am
SalesClick/Openconversionrate
Click ThroughRate
Open RateClaire Burke
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Testing by Brand
$.05 per recipient14.7%5.9%40.2%Friday
$.08 per recipient12.7%5.2%41.2%Thursday
$.02 per recipient12.4%5.6%45.0%Wednesday
$.07 per recipient15.9%6.6%41.8%Monday
SalesClick/Openconversion rate
Click ThroughRateOpen RateVitabath
$.71 per recipient19.9%7.9%39.9%6pm
$.28 per recipient19.0%8.0%42.3%2pm
$.63 per recipient18.9%8.1%42.9%10am
$.48 per recipient20.0%8.7%43.6%6am
SalesClick/Openconversion rate
Click ThroughRateOpen RateVitabath
Time of Day
Day of Week
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Testing by Brand
$.10 per recipient21.7%4.4%20.3%Claire Burke
$.00 per recipient21.1%3.4%16.0%Esscentual Brands
$.05 per recipient22.0%4.2%18.9%MyClaireBurke.com
$.02 per recipient23.1%4.2%18.4%Claire Burke SpecialOffers
SalesClick/Openconversion rate
ClickThrough RateOpen RateClaire Burke
$.45 per recipient31.8%7.7%24.2%Free Shipping for theHolidays
$.38 per recipient31.1%7.0%22.6%Free Shipping Plus 10%Off at Claire Burke
$.46 per recipient33.1%9.5%28.8%Exclusive Claire BurkeEmail Offer
SalesClick/Openconversion rate
ClickThrough RateOpen RateClaire Burke
Subject Line
From Line
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$.05 per recipient13.1%1.7%13.3%Vitabath
$.01 per recipient12.9%1.6%12.5%Esscentual Brands
$.03 per recipient12.9%1.9%14.8%MyVitabath.com
$.05 per recipient13.6%1.9%14.2%Vitabath Special Offers
Sales
Click/OpenConversionrate
Click ThroughRateOpen RateVitabath
$.24 per recipient17.6%3.5%20.0%Free Shipping for theHolidays
$.15 per recipient16.7%3.2%19.1%Free Shipping Plus 10%Off at Vitabath
$.09 per recipient16.1%4.2%26.3%Exclusive Vitabath EmailOffer
Sales
Click/OpenConversionrate
Click ThroughRateOpen RateVitabath
Subject Line
From Line
Testing by Brand
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Claire Burke Offer Testing –% off vs. dollars off
Open rate: 30.0%
Click through rate: 7.5%
Click/open conversion rate:24.9%
Sales: $0.36 per recipient
Open rate: 30.1%
Click through rate: 7.8%
Click/open conversion rate:25.9%
Sales: $0.22 per recipient
Open and Click through rates were similar. Yet sales on the $ off test were 64% higher than the% off offer
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Vitabath Offer Testing – % off v.dollars off
Open rate: 26.9%
Click through rate: 3.4%
Click/open conversion rate:25.9%
Sales: $0.19 per recipient
Open rate: 25.5%
Click through rate: 3.5%
Click/open conversion rate:13.9%
Sales: $0.38 per recipient
Open and Click through rates were similar. Sales doubled for the % test
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Format/Layout Testing –Promotional v. Letter
Open rate: 12.9%
Click through rate: 2.9%
Click/open conversion rate:22.2%
Sales: $0.00 per recipient
Open rate: 12.9%
Click through rate: 2.6%
Click/open conversion rate:20.4%
Sales: $0.03 per recipient
Letter format had higher click conversion, but lower sales. Use letter format forinformational notices when sales are not the priority
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Message Testing – Urgency
Open rate: 26.7%
Click through rate: 4.1%
Click/open conversion rate:15.2%
Sales: $0.34 per recipient
Open rate: 30.3%
Click through rate: 10.7%
Click/open conversion rate:35.3%
Sales $0.74 per recipient
Urgency in the message has always resulted in higher sales.
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Last Chance Reminder Testing –Claire Burke
Offer expiration email reminders sent two days before apromotion ends - sales significantly higher after reminderswere sent, though unsubscribes slightly increased. Plan tocontinue refining the process of promotional reminders.
PSVAPFREE Email% of Code Orders
1 2 3 4 5 6 7 8 9 10 11 12 13 1435% 7% 4% 3% 2% 3% 4% 1% 3% 22% 1% 3%
Day of Promotion
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Other ROI Tactics
ROI
Catalog Program
Search Engine Optimization
Paid Search (PPC)
Landing Pages
eBay Store
Affiliate Program
Retailers/Distributors
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Supplemental ROI Tactics –Catalog Program
Catalogs introduce the brand to prospects, drivewebsite traffic and grow the housefile list
Customized catalogs tailored to buyer segments
Constant testing
High-cost medium, so must drive sales
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Claire Burke® Holiday 06 Catalog
* Notice therelevantcatalog “tip”and push toshop online.
This spread targets consumers who use home fragrance to set a mood intheir home and give home fragrance gifts to set a mood for theirrecipients’ homes.
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Claire Burke ® Holiday 06 Catalog
This spread targets consumers who describe themselves as “candlefanatics”.
* Notice therelevant catalog“tip” fordecorating withcandles
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Claire Burke CommunicationCombinations
Two separate, randomized tests with control and testgroups receiving either email messages only, catalogonly or both confirm that email alone does notmaximize response
1.0
8.3
1.0
11.2
Email OnlyCatalog OnlyCatalog + Email
Indexed Response Rates
Test 1 Test 2
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Catalog Requests – Response fromEmail Invites
Added a link to “request catalog” to the emails startingin July, 2006. Given that many email recipients arealready on the catalog list, this has been a remarkablyeffective tactic.
Vitabath: Since July 2006
Catalog Requests from Emails: 602
Total Catalog Requests from PPC/Email/SEO: 6488
% from email: 9.2%
Claire Burke: since July 2006
Catalog Requests from Emails: 779
Total Catalog Requests from PPC/Email/SEO: 5471
% from email: 14.2%
CatalogRequest Link
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Paid Search (PPC)
Can track revenue by search term – dollars & metrics data
Test landing pages – drive sales or catalog/email opt-ins
Example: Claire Burke Holiday 2006 Potpourri Campaign
The ads and landing pages developed for “potpourri”terms.
The results listed are for the month of December only.
Only a snapshot of a portion of the campaign – ClaireBurke PPC produced 510 actions (322 sales and 188catalog requests/email sign-ups) from 9162 total clicks.
Similar landing page test for Vitabath. Overall PPCcampaign generated 500% ROI.
Continually working to best match landing page creativewithproduct-specific keyword, ad text, and offers.
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Google Adwords Listing Clicks Searches CTR Spend
Paid Search (PPC) Example – ClaireBurke Potpourri
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Landing Pages
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Organic Search
$10,287.42$3,384.65Sales Revenue
60354Inbound Links
1191482Clicks fromNaturalSearch
December ‘06December ‘05Vitabath
$10,820.63$4774.94Sales Revenue
59566Inbound Links
38081689Clicks fromNaturalSearch
December ‘06December ‘05Claire Burke
Clicks and Sales comparison – December ’05 toDecember ‘06
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eBay Store
eBay Store – not just closeouts
Tested with top 20 products for each brand
Testing buying models, pricing to discoverbest ROI yielding curve
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Affiliate Program – launched February 2007
Commission Junction
Home fragrance/bath exists in affiliate realm,but under-utilized
Retail Channels
New retailer website
Copy specific to retailers(margins, bulk purchases, marketing)
Atlanta showroom – wildly successful
Virtual showrooms
Communicate with retailers via email
Affiliate Program & Retailers
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Canadian market expansion – now servicingCanadavia existing e-commerce websites
Rolling out Canadian email program
Catalog program expansion
Build affiliate program
Expand eBay store
Develop API-enabled shopping cartabandonment email initiative
Roll out triggered post sale campaign
Increase search (paid/organic)efforts
Continue landing page testing
Optimize PR efforts for search
On the Horizon
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Top 10 Lessons Learned
Know What You Don’t Know
Determine Success Metrics and Keep Score
Once You Find ROI, Spend Money to MakeMoney
Know Your Customers
Test Everything, But Test Smart
Don’t Believe Results Will Be Consistent
More Channels = More Revenue
Urgency Works
It’s About List Performance, Not List Size
Frequency Works, To a Degree
Online, Email and Paid Search Deliver Best ROI
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Questions?
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Credits/Thank You
Susan Baier
Esscentual Brands
(480) 275-4206
Jason BaerOff Madison Ave (Mighty Interactive)
(480) 505-4501