Why One Test Triggered a 180 Turn in How All Whirlpool Brands Direct Market to Consumers

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1 Why One Test Triggered a 180 Turn in How All Whirlpool Brands Direct Market to Consumers Thomas Mender Sr. Manager, Database Marketing Whirlpool Benjamin Huppertz Sr. Research Manager MECLABS

2 Session Speaker Black & White Thomas Mender Senior Manager, Database Marketing Whirlpool Thomas has more than 20 years of experience in development and implementation of data warehouses, turn-key applications and business intelligence solutions for a variety of industries. Currently, he heads the database marketing team at Whirlpool and manages multichannel direct marketing across multiple brands and business units. Mender is a graduate of Purdue University and is also an Oracle Data Warehouse Certified Professional. 2

3 About Whirlpool World s leading global Home Appliance Manufacturer $19 billion annual sales in ,000 employees Total of 90 million s sent Rank #154 Fortune 500 company

4 Customer Retention 14 internal clients 5 Brands Retain those consumers post-purchase Keep them engaged Keep their consideration Attract Prospects Engage Prospects Convert New Customers Grow High-Value Customers Retain At-Risk Customers Win Back Former Customers

5 Before Testing: Clickthrough vs. opt-out rates 3.00% 2.50% 2.00% 1.50% Clickthrough Rate 1.00% 0.50% Opt-Outs 0.00%

6 Before Testing: Clickthrough vs. opt-out rates 3.00% 2.50% 2.00% 1.50% Clickthrough Rate 1.00% 0.50% Opt-Outs 0.00%

7 Before Testing: Clickthrough vs. opt-out rates 3.00% 2.50% 2.00% We faced Clickthrough a Rate challenge, so 1.50% 1.00% 0.50% Opt-Outs 0.00%

8 Summit 2013

9 Whirlpool s transformation Challenge the current model Change the current model Reaching new heights

10 Previous process Agency builds creative 10

11 Previous process Agency builds creative Marketing team approves 11

12 Previous process Agency builds creative Marketing team approves Creatives are published 12

Testing: Calls-to-action Research Notes: Experiment ID: Summit Experiment Calls-to-Action Location: Whirlpool Testing Library Campaign Focus: Ice email campaign Background: Applying what was learned

13 Testing: Calls-to-action Research Notes: Experiment ID: Summit Experiment Calls-to-Action Location: Whirlpool Testing Library Campaign Focus: Ice campaign Background: Applying what was learned about minimizing CTAs in sends at Summit Objective: To achieve a higher clickthrough rate. Primary Research Question: Will having a single CTA be more effective than multiple CTAs? Test Design: Single variable A/B split test 13

14 Testing: Calls-to-action Control Primary goal of the campaign is to promote one-time promotional ($400 off) Recipients: Total of 700k of current customers Hand-raisers Recent purchasers ( 5 years) Old purchasers (>5 years) Current Ice product owners

15 Control Top Bottom

16 Testing: Calls-to-action Control Treatment CTA CTA

17 Results: Testing calls-to-action 42% Increase in clickthrough rate Treatment increased CTR for each of the segments below. Calls-to-action tested Handraisers Purchasers ( 5 years) Purchasers (> 5 years) Current Ice owners Avg. Control 1.23% 0.35% 0.40% 2.77% 1.19% Treatment 1.55% 0.54% 0.57% 4.34% 1.75% Relative Difference +26% +53% +43% +57% +42%

18 ! What the data tells us Even subtle changes can have a huge impact on customer behavior Presenting customers with a single objective increased engagement The results proved increased effectiveness across all segments

19 Whirlpool s transformation Challenge the current model Change the current model Reaching new heights

20 Previous process Agency creates Marketing team approves is sent to customers 20

21 Current process Creating test ideas - collaborate 21

22 Current process Creating test ideas - collaborate Agency builds creatives 22

23 Current process Creating test ideas - collaborate Agency builds creatives Marketing team approves creatives 23

24 Current process Test is launched Creating test ideas - collaborate Agency builds creatives Marketing team approves creatives 24

25 Current process Data collection Test is launched Creating test ideas - collaborate Agency builds creatives Marketing team approves creatives 25

26 Current process Building customer profile Data collection Test is launched Creating test ideas - collaborate Agency builds creatives Marketing team approves creatives 26

27 Whirlpool testing roadmap BACKGROUND Whirlpool brand wishes to use one-to-one marketing to drive sales of its Ice product line via a rebate offer located on a landing page. GOALS Maximize open rate get consumers in the door Understand database segment performance (A) intenders, (B) owners of an Ice product, (C) owners of a newer product and (D) owners of an aging product Understand what triggers CTA engagement 1 2 3

28 Whirlpool testing roadmap

29 The inverted funnel Customers are not falling into your funnel, they are climbing up. Every micro-decision is a place to test. Every channel Every touch point in each channel

30 Subject line testing A Doing Laundry Just Got Loads Easier B C D Perfect Laundry is Now Perfectly Simple Download This App: Lighten Your Laundry Load 3 Great Ways to Lighten Your Laundry Load

31 Subject line testing A 13.30% Doing Laundry Just Got Loads Easier B C D 17.07% 17.93% 14.47% Perfect Laundry is Now Perfectly Simple Download This App: Lighten Your Laundry Load 3 Great Ways to Lighten Your Laundry Load

32 Subject line testing Creative A Creative B A B C Want to Make Doing Laundry Loads Easier? Introducing an App That Makes Laundry Fun. Seriously! Conquer Laundry: Enlist the WashSquad A B C D Doing Laundry Just Got Loads Easier Perfect Laundry is Now Perfectly Simple Download This App: Lighten Your Laundry Load 3 Great Ways to Lighten Your Laundry Load

33 Subject line testing Creative A Creative B A B lines got A Doing higher Laundry Just Got Loads open Easier rates Perfect Laundry is Now Perfectly Simple B C D Want to Make Doing Laundry Loads Easier? Introducing an App That Makes Laundry Fun. Seriously! Action-oriented C subject Conquer Laundry: Enlist the WashSquad Download This App: Lighten Your Laundry Load 3 Great Ways to Lighten Your Laundry Load

34 Value proposition testing Version A: Application theme Version B: Lifestyle theme FREE DOWNLOAD CTA drives users directly to Apple Store for download minimize number of clicks

35 Value proposition testing 15.3% Increase in clickthrough rate *Tuesday deployment generated 19.2% more unique opens than Wednesday

36 Value proposition testing Increase in clickthrough rate *Tuesday deployment generated 19.2% more unique opens than Wednesday A lifestyle theme got higher open rates

37 Value proposition testing Version A: Control Version B: Treatment TESTING USER- GENERATED CONTENT FROM RATINGS AND REVIEWS

38 Value proposition testing 151% Increase in relative difference in intenders Significantly higher than other segments Value prop testing CTR Relative difference Intenders 0.64% % Old refers 0.27% 26.05% All general 0.39% %! What You Need to Understand: Customer reviews added a significant increase for intentional buyers but not across all segments

39 Whirlpool s transformation Challenge the current model Change the current model Reaching new heights

40 Whirlpool testing impact 42% CTR

41 Whirlpool testing impact 42% CTR 15.3% CTR

42 Whirlpool testing impact 42% CTR 15.3% CTR 15% Open Rate

43 Whirlpool testing impact 42% CTR 15.3% CTR 15% Open Rate 151% CTR

44 Whirlpool testing impact 42% CTR 15.3% CTR 15% Open Rate 151% CTR 30% CTR

45 Before Testing: Clickthrough vs. opt-out rates 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% Clickthrough Rate Opt-Outs 0.50% 0.00%

46 Before Testing: Clickthrough vs. opt-out rates 5.00% 4.50% 4.00% 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% Clickthrough Rate Opt-Outs 0.50% 0.00%

47 Before Testing: Clickthrough vs. opt-out rates 5.00% 4.50% 4.00% 3.50% Small 3.00% changes, BIG impact 2.50% Clickthrough Rate 2.00% 1.50% 1.00% Opt-Outs 0.50% 0.00%

48 Whirlpool s Testing Dashboard Whirlpool s Dashboard provides at-a-glance results Saves time and effort for more testing Gives credit where it s due

49 This was one small step for a man, one giant leap for Whirlpool.

50 Key takeaways Even small changes can make a big difference It s not all about the numbers it s about the culture Let consumers make the decisions 50

51 Thank You Thomas Mender Senior Manager, Database Marketing Black & White Headshot Benjamin Huppertz Senior Research Manager MECLABS Black & White Headshot

Replay available. Watch it now

Replay available. Watch it now Replay available In this webinar replay, Daniel Burstein, Director of Editorial Content, MECLABS, and Tom Mender, Senior Database Marketing Manager, Whirlpool, discuss how one test triggered a testing