0-60: Lessons Learned from Creating a Successful Ecommerce Program From Scratch

Transcription

1 0-60: Lessons Learned from Creating a Successful Ecommerce Program From Scratch Susan Baier Multichannel Marketing Manager Interactive Services Esscentual Brands Interactive) Sunday, March 4, 2007 Jason Baer Senior Director, Off Madison Ave (Mighty Game Plan - Thinking Outside the Box Esscentual Brands Overview The Big Picture State of the State Challenges Commitment to Change Strategy & List Management Measuring Success Test, Test, Test Other ROI Tactics On the Horizon Top 10 Lessons Learned Questions 2 1

2 Esscentual Brands Overview Two Key Brands Vitabath department & gift stores (now online) Premium bath & body brand Unique formula created in 1957 by European skin care specialists Bath and body gelee, sugar scrubs, lotion, soaps, travel and gift sets Claire Burke department & gift stores (now online) 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 3 State of the State Challenges Faced Old E-Commerce Website Both brands on one site not easy to shop by brand 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? 4 2

3 Commitment to Change New direct-to-consumer focus Separate e-commerce sites by brand Plans for web/catalog interaction Consumer Research/Segmentation Online surveys invitations in products/ 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 & catalog opt-ins 5 6 3

4 Big Picture How Does the View Look Now? Multi-channel strategy fueling highly functional e-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 %) Online revenue increased + 500% in 2006! 7 Philosophy = Test, Test, Test & Do More of What Works Time of Day Day of Week Subject Line From Line Catalog only v. only recipients Offer Testing - % v. dollar off v. shipping Format/Layout Message Testing (Urgency) Last Chance Reminders Catalog Requests Send Frequency (2x month) 8 4

5 Measuring Success - Creating a Road Map Sales per Day- December 1 - December Fri 1 Sat 2 Sun 3 Mon 4 Tues 5 Weds 6 41 Thurs 7 36 Fri 8 27 Sat 9 32 Sun Mon Tues Weds Thurs Fri 15 Sales Sat 16 Sun 17 Mon 18 Tues 19 Weds 20 Thurs 21 Fri 22 Sat 23 Sun 24 Mon 25 Tues 26 Weds 27 Thurs 28 Fri 29 Sat 30 Sun 31 Date 9 Audience Buyer/Prospect Segmentation Large endeavor existing database and opt-ins from different sources Segment by response/brand Interested in why you buy 5 Claire Burke segments, 4 Vitabath ExactTarget web-collect on websites Opt-In Sources Feed Database Segment 1 Website Call Center Catalog Segment 2 Segment 1 Segment 3 Segment 2 Segment 4 Segment 5 Segment 3 Segment 4 Buyer/Prospect Database 10 5

6 Audience Buyer Input Buyer Input Example: Name the new scent Claire Burke fragrance consumer survey asking opinion +700 responses in less than 48 hours Ensured right answer 11 Audience Buyer Input 12 6

7 Strategy Exclusive offer focus on urgency Product introduction s Catalog drop reminders Offer reminders Constant testing Drive to online shopping cart 13 Claire Burke Progress Claire Burke Performance Over Time s Sent Revenue per Rec'd s Sent 45,000 37,500 30,000 22,500 15,000 7,500 0 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 Revenue per Recieved 1-Oct-05 2-Nov-05 3-Dec-05 1-Jan-06 2-Mar-06 5-Apr-06 1-May-06 2-Jun-06 1-Jul-06 2-Aug-06 3-Sep-06 2-Oct-06 3-Nov-06 3-Dec-06 3-Jan-07 Claire Burke Blasts - Month - Year Revenue Per Received $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $ / /07 Oct Nov Dec Jan Month 14 7

8 List Management Increasing Opt-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 partnership with Lucky Magazine Free Vitabath samples Free Scented Claire Burke bookmarks ( new addresses/week) 15 List Management List Hygiene Aggressive list cleansing remove inactive subscribers each month ( inactive = not opened/clicked in 3 months) Testing re-opt-in campaigns Inactives unlikely to purchase why ? Subscribers coded entry point/purchase data Pull Specific List House File Remove Inactives (monthly) 16 8

9 Testing by Brand Time of Day Claire Burke 6am 10am 2pm 6pm Open Rate 45.1% 46.0% 43.8% 41.7% Click Through Rate 16.7% 14.6% 15.0% 15.0% Click/Open conversion rate 37.1% 31.7% 34.1% 36.0% Sales $.38 per recipient $.42 per recipient $.36 per recipient $.18 per recipient Day of Week Claire Burke Monday Wednesday Thursday Friday Open Rate 37.4% 38.9% 37.5% 37.1% Click Through Rate 11.1% 11.5% 10.7% 12.2% Click/Open conversion rate 29.6% 29.6% 28.5% 33.0% Sales $.22 per recipient $.28 per recipient $.25 per recipient $.21 per recipient 17 Testing by Brand Time of Day Vitabath 6am 10am 2pm 6pm Open Rate 43.6% 42.9% 42.3% 39.9% Click Through Rate 8.7% 8.1% 8.0% 7.9% Click/Open conversion rate 20.0% 18.9% 19.0% 19.9% Sales $.48 per recipient $.63 per recipient $.28 per recipient $.71 per recipient Day of Week Vitabath Monday Wednesday Thursday Friday Open Rate 41.8% 45.0% 41.2% 40.2% Click Through Rate 6.6% 5.6% 5.2% 5.9% Click/Open conversion rate 15.9% 12.4% 12.7% 14.7% Sales $.07 per recipient $.02 per recipient $.08 per recipient $.05 per recipient 18 9

10 Testing by Brand Subject Line Claire Burke Open Rate Click Through Rate Click/Open conversion rate Sales Exclusive Claire Burke Offer 28.8% 9.5% 33.1% $.46 per recipient Free Shipping Plus 10% Off at Claire Burke 22.6% 7.0% 31.1% $.38 per recipient Free Shipping for the Holidays 24.2% 7.7% 31.8% $.45 per recipient From Line Claire Burke Open Rate Click Through Rate Click/Open conversion rate Sales Claire Burke Special Offers 18.4% 4.2% 23.1% $.02 per recipient MyClaireBurke.com 18.9% 4.2% 22.0% $.05 per recipient Esscentual Brands 16.0% 3.4% 21.1% $.00 per recipient Claire Burke 20.3% 4.4% 21.7% $.10 per recipient 19 Testing by Brand Subject Line Vitabath Open Rate Click Through Rate Click/Open Conversion rate Sales Exclusive Vitabath Offer 26.3% 4.2% 16.1% $.09 per recipient Free Shipping Plus 10% Off at Vitabath 19.1% 3.2% 16.7% $.15 per recipient Free Shipping for the Holidays 20.0% 3.5% 17.6% $.24 per recipient From Line Vitabath Vitabath Special Offers Open Rate 14.2% Click Through Rate 1.9% Click/Open Conversion rate 13.6% Sales $.05 per recipient MyVitabath.com 14.8% 1.9% 12.9% $.03 per recipient Esscentual Brands 12.5% 1.6% 12.9% $.01 per recipient Vitabath 13.3% 1.7% 13.1% $.05 per recipient 20 10

11 Claire Burke Offer Testing % off vs. dollars off Open and Click through rates were similar. Yet sales on the $ off test were 64% higher than the % off offer 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 21 Vitabath Offer Testing % off v. dollars off Open and Click through rates were similar. Sales doubled for the % test 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 22 11

12 Format/Layout Testing Promotional v. Letter Letter format had higher click conversion, but lower sales. Use letter format for informational notices when sales are not the priority 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 23 Message Testing Urgency Urgency in the message has always resulted in higher sales. 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 24 12

13 Last Chance Reminder Testing Claire Burke Offer expiration reminders sent two days before a promotion ends - sales significantly higher after reminders were sent, though unsubscribes slightly increased. Plan to continue refining the process of promotional reminders. PSVAPFREE % of Code Orders 35% 7% 4% 3% 2% 3% 4% 1% 3% 22% 1% 3% Day of Promotion 25 Other ROI Tactics Catalog Program Search Engine Optimization Paid Search (PPC) Landing Pages ebay Store Affiliate Program Retailers/Distributors ROI 26 13

14 Supplemental ROI Tactics Catalog Program Catalogs introduce the brand to prospects, drive website traffic and grow the housefile list Customized catalogs tailored to buyer segments Constant testing High-cost medium, so must drive sales 27 Claire Burke Holiday 06 Catalog * Notice the relevant catalog tip and push to shop online. This spread targets consumers who use home fragrance to set a mood in their home and give home fragrance gifts to set a mood for their recipients homes

15 Claire Burke Holiday 06 Catalog * Notice the relevant catalog tip for decorating with candles This spread targets consumers who describe themselves as candle fanatics. 29 Claire Burke Communication Combinations Two separate, randomized tests with control and test groups receiving either messages only, catalog only or both confirm that alone does not maximize response Indexed Response Rates Only Catalog Only Catalog + Test 1 Test

16 Catalog Requests Response from Invites Catalog Request Link Added a link to request catalog to the s starting in July, Given that many recipients are already on the catalog list, this has been a remarkably effective tactic. Vitabath: Since July 2006 Catalog Requests from s: 602 Total Catalog Requests from PPC/ /SEO: 6488 % from 9.2% Claire Burke: since July 2006 Catalog Requests from s: 779 Total Catalog Requests from PPC/ /SEO: 5471 % from % 31 Paid Search (PPC) Can track revenue by search term dollars & metrics data Test landing pages drive sales or catalog/ 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 Claire Burke PPC produced 510 actions (322 sales and 188 catalog requests/ sign-ups) from 9162 total clicks. Similar landing page test for Vitabath. Overall PPC campaign generated 500% ROI. Continually working to best match landing page creative with product-specific keyword, ad text, and offers

17 Paid Search (PPC) Example Claire Burke Potpourri Google Adwords Listing Clicks Searches CTR Spend 33 Landing Pages 34 17

18 Organic Search Clicks and Sales comparison December 05 to December 06 Vitabath Clicks from Natural Inbound SearchLinks Sales Revenue December $3, December $10, Claire Burke December 05 December 06 Clicks from Natural Inbound SearchLinks Sales Revenue $ $10, ebay Store ebay Store not just closeouts Tested with top 20 products for each brand Testing buying models, pricing to discover best ROI yielding curve 36 18

19 Affiliate Program & Retailers 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 37 On the Horizon Canadian market expansion now servicing Canada via existing e-commerce websites Rolling out Canadian program Catalog program expansion Build affiliate program Expand ebay store Develop API-enabled shopping cart abandonment initiative Roll out triggered post sale campaign Increase search (paid/organic) efforts Continue landing page testing Optimize PR efforts for search 38 19

20 Top 10 Lessons Learned Know What You Don t Know Determine Success Metrics and Keep Score Once You Find ROI, Spend Money to Make Money 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, and Paid Search Deliver Best ROI 39 Questions? 40 20

21 Credits/Thank You Susan Baier Esscentual Brands (480) Jason Baer Off Madison Ave (Mighty Interactive) (480)