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Acquire, Grow & Retain Customers, Fast

Date post:09-Jan-2017
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Acquire, Grow & Retain Customers, Fast


What % of consumers say that retail and media brands dont mean anything to them?0-20%21-40%41-60%61-80%81-100%

We did a study this past quarter of consumers across the US, the UK, and Western Europe to identify the drivers of brand loyalty for retailers and media publishers and opportunities for marketers to inspire loyalty, and were here to share some of the results from that study for the first time.

We asked them how they'd describe their loyalty to brands with response options like:

very loyalgenerally loyalsometimes loyalnot at all brands don't mean anything to me

Because youre all consumers in the room [click]3

Fewer than 6% of consumers say that brands dont mean anything to them.Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

3% for retail8% for media

These two categories are important to this room because they represent real-world sandboxes of human behavior the nature of media consumption and purchasing behavior something humans do every day. By studying these behaviors, we can learn from and influence strategies across the entire B2C (and a healthy part of the B2B) landscape.


Loyalty is a Two-Way Street

of brand loyalists say they want the brand to acknowledge their participation in loyalty programs.40%Source: Sailthru Q3 Consumer Loyalty Study, n=1,005 For publishers, loyalty cant be boughtLess than a quarter of consumers (23%) say their loyalty to media publishers would be improved by changes in prices or discounts, and just as many said they best way to encourage their loyalty was to improve content.

I had this experience last week with a order problem with Amazon. "Thank you for being a Prime customer" in chat, as well as on the phone5

Are there any media outlets, publishers, or brands you consider yourself loyal to? If so, please list up to three.Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

US, Canada, Western Europe

Source: Sailthru Q3 Consumer Loyalty Study, n=1,005



Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

And yet Facebook would say that its Not a media company?

The results here are as much about survey design as they are about the logos on screen. Remember, this was an open-ended question on loyalty.8

Three out of four retail brand loyalists (76%) have interacted with a favorite brand in some way that could have been personalized over the past 12 monthsSource: Sailthru Q3 Consumer Loyalty Study, n=1,005

Loyalists Interact Digitally

Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

This chart also affirms the importance of thinking in a multi-channel way - can't just look for just one engagement signal.

Melody / Symphony metaphor - need to see the notes and the chords

Any smart marketer can figure out retention tactics, but retention does not breed loyalty. Bed Bath and Beyond is great example - I shop there because I never don't havea 20% off coupon, but I am not loyal to them. If I got same coupon for Williams Sonoma, I'd go there.


Almost every interaction with a media publisher can be can be personalized in some way for the reader Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

Loyalists Interact Digitally

Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

We open 49% of all emails on our mobile devicesSource: Sailthru Open Rate Benchmarks, 2015 - 201612% Tablet29% PC10% Other

So Sailthru sends a lot of email (one of our many talents). In fact, were the largest sender of personalized email on the planet.

1.6 Billion profiles under management.

By the time this presentation is done, during a peak holiday period, well have sent 5.7 million emails.

And so we understand a lot about human behavior, because humans are at the receiving end of email, and at least half of them hold onto a single email address for 10 or more years, which is even longer than the life of a cell phone number!

Heres what we know: [click]


My Tesla read my emails for me while running autonomously.

Eve Teslas KITT14

Definitely an improvement for Geoff over this ride.

And while were not suggesting responsive design for camels, or even Teslas, the proof is incontrovertible that were communicating in a mobile first world, and so everyone in this audience need to consider their mobile communications strategies for 2017.15

Loyalty, Retention and Personalization

of retail brand loyalists say they only want to be shown products or services that are relevant to them.31%of those retail brand loyalists want their purchase history to be used to tailor messaging content for them.41%of those retail brand loyalists want to be addressed by name.34%of those retail brand loyalists want those brands to acknowledge something specific about them, such as their hobbies and interests 20%Source: Sailthru Q3 Consumer Loyalty Study, n=1,005

Loyalists - your BEST CUSTOMERS.

Earlier this year we conducted a study with senior executives from retail and media companies worldwide and found that those who invested in retention significantly increased market share 180% more than those who focus on acquiring new customers

Not to mention Bains study from a few years ago which shows that it costs 6x more to acquire a new customer than it does to retain them.

So lets focus on these gems, these loyalists.


RelevancyNamePurchase HistoryHobbiesInterests16

Personalization Methods

% of room ever eaten at Per Se? Or one of Zagats top 10 restaurants in NYC? Or Open Table?

How many of you have ordered the red from the list?

Well youre lying because none of those restaurants have just a red the very best ones want to learn something about you first.

Manfred Krankl and his wife Elaine started Sine Qua Non back in 1994 (cult wine, Rhone varietal)

Red White


How to personalizevImproveMake a decisionLearn CustomerPreferencesvv

Use customer data to learn about customers Implicit & Explicit data - the best customer data doesn't come from the user profile they self-select...- time of day - price point, etc.? Make a decision about what content or product to recommend to a person Personalized Send Time How many people here send emails to their customers at exactly the same time of day?3. Monitor customer response and use that to inform future recommendations

Create a learning flywheel PLEDGE VS. DONATION WHAT THEY DO


Method: Attribute-Based Personalization

Attribute-based systems look at attributes assigned to a given item. When a person shows interest in or purchases that item, these systems find other items with similar attributes to recommend to that customer.

Generally, attribute-based recommendation systems are Product-based.

Method: Collaborative Filtering

Collaborative filtering systems use data from multiple customers to fill in gaps in a persons profile, identifying things they might like based on their similarities to other customers.

Contextual: similarities based on what the person is doing or looking at right now

Historic: similarities based on what the person has done throughout his or her lifetime

Collaborative filtering can be user-based (people like you bought X) or item-based (people who also bought this item bought X).


Method: Memory-Based Collaborative Filtering

Collaborative Filtering approaches can be either Model-based or Memory-based.

The most-common Memory-based approaches create neighborhoods of similar customers, and make recommendations by looking at the weighted sum of ratings by those customers.

Method: Model-Based Collaborative Filtering

Applies machine-learning to the product and person datasets and uses statistical techniques to predict the probability of a customer acting on a given recommendation (or set of recommendations) using the entire dataset.

Model-based approaches are both product- and user-based (A person like X is most likely to respond to products A, B, and C)

Examples of Each


Collaborative FilteringBecause you watched

People who bought this also boughtModel-BasedCollaborative Filtering

Discover Weekly

Top picks for you

LinkedIn employs several different recommendation engine techniques. "Companies you may want to follow" uses a mix of content-matching (attribute-based) and collaborative filtering, ditto for "Jobs you may be interested in," where the engine needs to match information about the job to information about you in your profile, while also looking at how similar people responded or expressed interest to similar postings.24

Why Personalize?

Consider the alternative: Disengagement!

A customer came to us with an engagement problem ... we looked at their engagement history over a year, and here's what we found (re: fish chart)


Personalized communications reduce opt-outs by 45%Source: Sailthru Customer Benchmarks, 2015 - 2016

So imagine if you have 2x the number of customers you could speak with in any given year.27

Personalized messaging performs 27% better than generic messagingSource: Sailthru Customer Benchmarks, 2015 - 2016

Personalization Drives Higher EngagementSource: Sailthru Customer Benchmarks, 2015 - 2016+27%

The Real Cost of Not Personalizing Content

Sent by media publishers between October 2015 and September 201628 Billion Emails5.3 Billion Opens211 Million Lost Interactions

6.5 Billi

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