Monday, 31 May 2010

Use of segmentation increases email marketing revenue by 322%

Posted by Unknown at 11:25 am Labels: , ,
I recently posted a blog article about subscriber segmentation and how, using it thoughtfully can greatly benefit your email campaigns.  I have since come across this excellent case study on Marketing Sherpa. It highlights how TicketsNow.com, a US company specialising in online ticket sales, has increased their email marketing revenues by 322% -directly through segmentation!



The case study describes how the company changed their email marketing strategy to draw their customers more closely to the brand with the aim of optimising those of its subscriber/ customers with a history of being bigger spenders.

They segmented their customers by spending habits and their interests, making them able to aim the newsletter in a much more focused way. 

They also introduced three customer loyalty programs:  Named ‘Preferred Customer Clubs’; customers gained automatic membership dependant on their annual spending $1,000+, $3,000+ or $8,000+.  Upon gaining membership they were sent consumer incentive offers such as free shipping or use of an exclusive customer support line. Members of these clubs received emails which were directly targeted to their membership level and even past click-throughs. In addition, they received more personalised emails reminding them of upcoming events that they had purchased tickets for, plus extra, related information, such as discounts available from restaurants close to the event. Following each event they sent out an email with reviews from other customers and offering the chance to submit their own revue, giving their customers the ability to not only engage with the brand on a more social level, but also to become part of a ‘community’ of loyal customers who interacted with each other with individual recommendations and reviews.

So, what began as a segmentation exercise resulted with enviable customer-relationships and loyal & interacting customers – plus that 322% increase in sales conversions! All achieved through their email marketing campaign and, as if that weren’t enough, their subscriber list grew by 87% and their complaint and unsubscribe rates fell too.

Mark Hodes, Senior Vice President of Customer Marketing for TicketsNow.com, said of the campaign: "I think it proves that more (targeted) email can only help keep people engaged and keep them more active as repeat customers.”

When it comes to the subjects of segmentation and targeted email marketing, campaign stands out as a perfect example of how to put it into practice.  Although it may sound intricate, all the tools to achieve this are sitting in your Graphicmail account just waiting to be used. Just refer to my previous article for the 1st step – subscriber segmentation which shows you how to customise your subscription form and set the automated subscriber segmentation tool. Then, using TriggerMail you can setup event reminders such as those sent out from TicketsNow.com.

With a little thought you can combine both TriggerMail & segmentation to engage your customers within a campaign which they feel a part of and is relevant to them, making them more likely to respond to it

Facebook Feed

Popular Posts

Twitter Feed