beyond the click: understanding the full value of email to your business

Beyond The Click:!Understanding and

keeping up with changing email!

!

Its  nice  to  meet  you  

Jessica  Jaye  Harley  VP  Customer  Marke5ng  Gilt  Groupe  For  context,  prior  experience  includes:    •  VP  Online  Marke;ng  FTD.com  •  VP  Marke;ng  Borders  •  Director  Marke;ng  Barnes  &  Noble  •  10  years  direct  marke;ng  

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Who  we  are  

•  Launched  November  2007  •  Curate  broad  range  of  daily  sales  to  serve  membership  

•  Over  6,000  premium  brands  featured  

• 1/3  of  total  company  sales  occur  noon  hour  on  weekdays  

• Compe;;ve  shopping  •  Sales  last  36  hours  • Average  160  sales/week  

Who  we  are  

Who  we  are  

• 4.3  million  ac;ve  members  • Over  1/3  login  in  any  month  • Extremely  loyal  customers  •  65%  Noir  members  purchase  each  month  

•  Interna;onal  shipping  launched  November  2011  

Who  we  are  

•  Named  by  Fast  Company  as  one  of  the  Top  25  Innova;ve  Companies,  #1  in  Fashion  

•  Internet  Retailer  Top  500  Rank  of  49  

•  DMA  2011  Marketer  of  the  Year  

Who  we  are  

• Growth  largely  fueled  by  fantas;c  customer  experience  

• Acquired  less  than  1/3  of  our  members  via  paid  marke;ng  efforts  to  date  

• S;ll  growing  –  20%  of  purchasers  each  month  are  new  customers  

Who  we  are  

•  Women’s  Fashion  •  Men’s  Fashion  •  Children’s  Clothing  &  Toys  •  Home  •  Gourmet  Food  &  Wine  •  Travel  Experiences  •  City  Experiences  

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Who  we  are  

•  Shoot  almost  all  our  own  photography  •  Undergoing  major  rebranding  •  Lighter,  friendlier  and  more  accessible  •  Allows  product  and  color  to  shine  

Women’s  –  Nov,  2007  Launch  

Home  –  launched  2008  

Men’s  –  Oct,  2009  Launch  

Baby  &  Kid’s  –  Jul  2008  Launch  

Jetseger  –  Sep  2009  Launch  

Gilt  City-­‐  Sep  2010  Launch  

Taste  –  May  2011  Launch  

Park  &  Bond  –  Aug  2011  Launch    

Gilt  Japan  –  Mar  2009  Launch  

A  lot  has  changed  in  these  4  years…  

Email  has  changed  too    The  big  ques;on…  

Is  Email  Dead?  

Social  leaders  declared  it  

Mainstream  media  

Industry  blogs  

The  evidence  is  moun;ng  

Gilt’s  tremendous  growth  has  occurred  within  an  email  based  model…  

During  the  ;me  these  claims  have  been  so  popular  

How  is  this?    

87% of  email  users  check  personal  email  daily  

51% of  daily  mobile  email  users  check  personal  email  4+  ;mes  daily  

People  are  S;ll  Paying  Agen;on  to  email    

Merkle;  View  from  the  Digital  Inbox,  February  2011    

60% of  those  who  report  they  have  a  special  account  for  retail  emails  say  they  check  it  daily  

Even  those  who  say  they  are  not    

Merkle;  View  from  the  Digital  Inbox,  February  2011    

But  they  are  changing  HOW  they  interact  with  email  

Mobile  is  Changing  Email  Usage  

Up 34%

Return  Path:  Mobile,  Webmail,  Desktops:  Where  Are  We  Viewing  Email  Now?,  Nov  2011.  Mobile  %  increased  34%  from  April-­‐Sept  2011  vs.  prior  6  months      

While  s;ll  the  minority…  

20%  

80%  

%    Total  Email  Opens  

Mobile   PC  

Up 51%

Kno;ce,  Mobile  Email  Opens  Report  ;First  Half  2011,  up  vs.  Q4  2010  

Mobile  %  is  Growing  Rapidly  

Mobile  PC  

%  Gilt  Email  Opens  

Gilt’s  mobile  email  opens  are  approaching  half  

69%  

17%  

14%   Link  to  Plain  Web  Site  

Link  to  Mobile  Op;mized  Site  

Link  to  Mobile  Apps  

Yet  top  brands  engaging  in  email  marke;ng  are  s;ll  linking  to  full  site  

L2  Pres;ge  100©;  Mobile  IQ,  January  11,  2012  

Return  Path:  Mobile,  Webmail,  Desktops:  Where  Are  We  Viewing  Email  Now?,  Nov  2011.    

Mobile  has  come  to  dominate  on  weekends  

Weekday  

Weekend  

Gilt  Mobile  Sales  %   73% Higher

Mobile  sales  are  following  

Device  usage  also  changes  by  ;me  of  day  

Mobile  %  of  sales  also  changes  by  ;me  of  day  

Midnight  to  Noon  

Noon  to  9PM  

9  to  Midnight  

Full  24  hrs  

Mobile  %  of  Gilt's  Total  Sales  

+48% to 24hr

How  best  to  keep  up  with  Mobile  Email?  

Ensure  a  single  voice  across  channels  

Be  where  customers  are  

YOY  revenue  growth  fueled  by  mobile  

Understand  what  works  when  

Link  to  App  or  M-­‐Site  

It  is  becoming  clear  that  Email  and  Mobile  will  dominate  over  Social  when  it  comes  to  revenue  

Stores  shupng  down  on  Facebook  

Facebook  stores  that  opened  and  closed  in  the  past  year:  • Gamestop  • Gap  •  JC  Penny  • Nordstrom  

“It  was  like  trying  to  sell  stuff  to  people  while  they’re  hanging  out  with  their  friends  at  a  bar”  

Consumers  prefer  to  receive  promo;ons  via  email  over  social  

*Internet  Retailer:  Young  consumers  use  e-­‐mail  to  find  deals,  July  2010  **Internet  Retailer:  For  store  promo;ons,  e-­‐mail  tops  social  media,  June  2010  

Adults*   Youth  15-­‐24**  

Social  Email  

+  4X  

+  2X  

Where  Consumers  Prefer  to  Receive  Retailer  Promo5ons  

Top  Brands  are  promo;ng  Social  more  than  Mobile  

L2  Pres;ge  100©;  Mobile  IQ,  January  11,  2012  

Social  is  crucial  to  brands,  email  and  mobile  beger  cater  to  direct  response  sales  driving  

Social  is  a  great  tool  for  brands  to  build  a  rela;onship  

Provide  fantas;c  customer  service….  

 Hi  Gilt,  me  again.  Well,  late  tonight  you  totally  solved  the  order  

problem  in  a  kind  of  

unexpected,  "wow"  way.  Thanks!  

Important  part  of  the  promo;onal  mix…  

Build  excitement  for  sales  and  promo;ons….  

Drive  Awareness  and  engagement  

Drive  loyalty  among  exis;ng  customers….  

Gilt  Social  Promo5on  Sales  

New  Customers  

Exis;ng  Customers  

Understand  full  impact  of  email  

2009   2010  2011  

Open%  Click%  

Gilt  open  rates  remain  steady  in  the  face  of  rapid  growth,  but  click  rates  are  declining  

Problem?    Let’s  understand  the  cause  

PC  

%  Gilt  Email  Clicks  

Mobile  PC  

%  Gilt  Email  Opens  

Mobile  email  openers  are  not  clicking  

Tabbed  browsing  prolifera;on  also  likely  causing  click  declines  

57% of  users  switch  tabs  in  a  session  

Jeff  Huang,  Ryen  W.  White  (June,  2009).  "Parallel  Browsing  Behavior  on  the  Web"  

How  should  email  revenue  be  measured?  

Based  on  direct  click  revenue?  

Gilt  Email  Revenue  %  Total  Click  Only  

Email  Revenue  

Non-­‐Email  Revenue  

What  if  we  add  in  revenue  from  same  day  email  clickers?  

Gilt  Email  Revenue  %  Total  w/Clickers  

Email  Revenue  

Non-­‐Email  Revenue  

How  about  email  openers  who  purchase  in  same  day?  

Gilt  Email  Revenue  %  Total  w/Openers  

Email  Revenue  

Non-­‐Email  Revenue  

Or  revenue  from  all  same  day  email  recipients?  

Gilt  Email  Revenue  %  w/Recipients  

Email  Revenue  

Non-­‐Email  Revenue  

Perhaps  oversta;ng  it,  but…  

Gilt  Email  Revenue  %  w/Openers  

Email  Openers  &  Clickers  

Email  non-­‐Openers  

Email  Non-­‐Recipients  

Some  por;on  of  these  sales  are  driven  by  email  

received  

The  key  is  we  need  to  be  flexible  in  our  understanding  of  email’s  value  or  we  could  be  making  wrong  decisions  

When  tes;ng,  ensure  right  metrics  

Email  Tes;ng  –  Ensure  that  you  are  capturing  the  full  impact  of  tests  with  cross  channel  ac;vity  

Lifecycle  Marke;ng  –  Ensure  that  purchases  are  incremental  over  ;me  

Cross  Channel  Promo;ons  –  Does  total  spending  behavior  change  a{er  cross-­‐channel  promo;on?  

Even  crea;ve  tes;ng  can  have  impact  beyond  click  revenue  

Bricks  &  Clicks  is  more  challenging  

Loyalty  Cards  –  If  customers  are  earning  something  they  have  incen;ve  to  give  you  email  and  pull  out  the  card    Store  Credit  Cards  –  Will  always  impact  a  lower  %  of  customers,  but  will  be  most  loyal  ones    Credit  Card  Data  Analysis  –  Painful  route      

What  would  an  email  presenta;on  be  without  discussion  of  Relevancy?  

Merchandise  Strength  

Spend,  RFM,  Lifecycle  

Series1'0'1'2'3'

4'

5'

1' 2' 3'4'

Series1'

Outside  Data  (Demo/Shopping)  

Campaign  Management  

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$

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Single  campaign  w/segments  by  format,  offer,  #  sales,  products,  etc.  across  channels  

Campaign  Results  

Customer  Sa;sfac;on    

Relevance  is  now  more  important  than  ever  

Stated  Preferences  Loyalty  

Program(s)  

Purchase/  Browse  History  

Machine  Learning  Predic;ve  Models  

Member  Data  Cube  

User  Input  

Personalized  sale  emails  drive  +10%  revenue  across  all  customers  

User  input  drives  up  to  31X  to  50X  revenue  li{s  

Lifecycle  marke;ng  drives  up  to  2-­‐5X  revenue  increases  

But  lifecycle  messaging  can  easily  be  overused  

Behavioral  targe;ng  drives  up  to  20X  revenue  li{  

User  discre;on  needs  to  be  used  in  conjunc;on  with  sta;s;cs  

Key  Takeaways  

Unified  Voice  –  across  all  channels    Understand  what  is  behind  data  –  It  could  change  your  strategies    Be  where  your  customers  are  –  Understand  the  mindset  they  are  in    Be  relevant  and  flexible  –  Adapt,  adapt  adapt          

Ques;ons?    Jessica  Harley  VP  Customer  Marke;ng  Gilt  Groupe  jharley@gilt.com