Sublime Segmentation Strategies

James Luterek eCommerce Strategy Manager Global Value Commerce

JamesLuterek@gvcommerce.com

My New Bag

Segmentation

If you’re not thinking segments, you’re not thinking. To think segments means you have to think about what drives customers, customer groups, and the choices that are or might be available to them.

- Levitt, Marketing Imagination

You are already ahead!

Despite the fact that targeted sends have a 40% higher open rate, 80% of marketers are still emailing the same content to all subscribers.

Starting Out My first experience with segments.

Our first Ladies Email

Results:

§  50% higher Open Rate §  Click-Through-Rate: 100% §  Orders: 13 §  Revenue: $1,000

Know how to judge!

RPM RPE

Know how to judge!

RPM

Revenue

Per

Thousand

RPE

Revenue

Per

Email

Open Rate

Open Rates increase an

average of 20%

GlobalGolf’s Segments have an Open Rate 59% higher than normal newsletters.

Click-Through Rate

Click-Through Rates increase an

average of 50%

GlobalGolf’s Segments have an Open Rate 56% higher than normal newsletters.

Conversion Rate

Conversion Rates increase an

average of 40%

GlobalGolf’s Segments have an Open Rate 77% higher than normal newsletters.

Have you noticed a trend?

Always use

RATES

when comparing segments.

Building Segments

Types of Segments

Demographics

Preference

Behavior

What makes a good segment.

Click-Through Data

Click-Through Data

Order History

Exclusions:

•  Customers who have purchased recently

•  or already purchased the product being promoted.

Order History

Upgrade Cycle

•  Calculate how long customers wait to replace an item in order to retarget.

•  Send reminders on consumables.

Order History

Companion Products

•  Customers who bought X also enjoy Y

•  Driver -> Fairway

•  Pants -> Matching Shirts

•  Electronics -> Batteries

•  Camera -> Accessories, Cases, Lenses

Customer Profile

•  Brand Loyalty

•  Favorite Color

•  Price Point

•  Clearance Shopper

•  Size

•  Dexterity

•  Location

•  Time of Day

Customer Profile

… and of course Gender.

§  1-3 Ladies emails / month §  Ladies landing page §  Larger selection ladies products

Engagement

•  Increase send frequency to highly engaged subscribers.

•  Segment unengaged subscribers to lower frequency to ensure they don’t become overwhelmed.

Just Ask!

Manage Preferences Webform

Webforms are easy to create in the Bronto system and can be a highly effective way of collecting Information.

Manage Preferences Webform

Ask to manage preferences at:

•  Sign-Up

•  Welcome Email (or part of series)

•  Footer of every email

•  Re-engagement Emails

•  After Conversion (what do they need next?)

•  Before unsubscribe (Lower frequency)

But…

Re-Use Designs

§  Resend to new subscribers §  Change colors

Generate HTML Emails

§  Use top sellers, recently viewed, new products

Dynamic Product Lists

Use different product lists with a generic design.

Simply change the subject line.

Location Based:

•  Spring is almost here.

•  The warm weather has arrived.

Behavior Based:

•  On Sale Now + Free Shipping

•  View our newest products.

Call-Out frequently ignored segments:

•  New summer apparel from Nike

•  Huge selection of Big&Tall summer apparel from Nike

Closing Thought

2013 GlobalGolf to date:

Newsletters

Segments

Newsletters

Segments

Emails Sent Revenue

Questions? James Luterek

JamesLuterek@gvcommerce.com