Mass marketing is dead
Pragmatic Data Science
to the Rescue
May 16, 2013
AgilOne Manifesto
Mass marketing doesn't work anymore: average
person spends 18% of the day answering email and
frankly is fed-up, longing for relevancy and personal
relationships. As a brand, you may have more lapsed
customers than active customers and experience
high unsubscribe rates and low click rates. Data
science can help restore the old-fashioned customer
relationship of the corner store.
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State of the union
6%
40%
Batch and Blast
Segment lists and vary content
19%
Rules to automate emails
Use web behavior to personalize emails
35%
Source: Silverpop DMU 2013 San Francisco Poll
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17 May 2013
More data….
80% 34% 44%
Don’t use
behavioral data
Willingness to
try new things
Source: Silverpop DMU 2013 San Francisco Poll
4
17 May 2013
Not enough
people
You are one-click away from
Deleted
5
Unsubscribed
Bulk listed
I want to be…
For this, I need to…
Relevant
match content to customer
interests and context
Respectful
get the right frequency for
each contact
Profitable
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offer the right offer to
each person
Amazing results happen when you can
predict customer behavior
interests, motivators, future
behavior, personalities
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Predictive Data Science applied to marketing
Personality
Customers
Clusters
1.
2.
3.
4.
5.
1.
2.
3.
4.
Value/SOW
Purchase Behavior
Trend
Product usage
Channel usage
Need
Purchase behavior
Channel
Brand
Future
Motivators
Interests
Predicting action
Recommendations
Factors
1.
2.
3.
Response
Trend
Product
1.
2.
3.
Keywords
Products
Categories
1.
2.
3.
4.
Purchase
Open/click email
Response to offer
Churn
Don’t take our word for it…
An Online Pet Store …
70% of first time customers don’t ever come
back. This is actually the biggest cost of
acquisition.
Through surgical discounts for newbies
Gained 18% more repeat buyers
5/17/2013
AGILONE CONFIDENTIAL
Don’t take our word for it…
A Jeans Manufacturer
Older generation, young school kids,
urban professionals…. all buy jeans, but
not the same kind.
Customer clusters are meaningful
personas you can talk to
7% more revenues using product clusters
20% reactivation of inactive customers
5/17/2013
AGILONE CONFIDENTIAL
Don’t take our word for it…
Online and Brick & Mortar Retailer …
Hardcore climbers and Snowboarders don’t
browse or buy similar products, how can we
not batch-n-blast?
Personalized product content in emails
Increased email revenues 122% annually
Utilized both purchases and web browsing
behavior
5/17/2013
AGILONE CONFIDENTIAL
Start small and succeed big
AgilOne Enterprise
Multi-channel campaign ROI
Multi-channel engagement and revenues
AgilOne Digital
Email and web campaign ROI
Digital engagement and revenues
AgilOne Email
Email campaign ROI
Email engagement and revenues
5/17/2013
AGILONE CONFIDENTIAL
The real cost of email marketing
Stay
Subscribed
$100
100
customers
with same
Lifetime
Value
value lost
Unsubscribed
$40
13
40%
and you don’t want this…..
Simple calculation
• 1 Million Subscribers at the beginning
of the year
• 1 email a week for everyone
23%
of the contact file opted-out
• Unsubscribe rate of 0.5% per email
sent
• Opt-out contacts lose $40 of value
over next 12 months
$920K
of margin lost over next 12 months
I want to be…
For this, I need to…
Relevant
match content to customer
interests and context
Respectful
get the right frequency for
each contact
Profitable
15
offer the right offer to
each person
Don’t take our word for it…
An Online Discount Store …
By optimizing email frequency
Reduced unsubscribe rates 30%
Increased revenues 20% in 3 months
Here is how we do it…
5/17/2013
AGILONE CONFIDENTIAL
Enthusiast
Contact Info
Segment description
First Name: Donna
The “enthusiasts” are your jewels, your
fans, your ambassadors.
Last Name: Jones
Predicted Propensity to Open or Click: 95%
Pet Type Dog, Cat, Equine
Opt-In Details
Date: 12/4/2011
Source: Listrak
Email Activity Over Lifetime
Number of Emails Received: 58
Number of Opens: 57
Number of Clicks: 21
Segment Definition
Opt-in contacts with tenure greater than 60
days, with at least on email received in last
60 days, and predictive engagement decile
is 1
Enthusiast: best practices
Why they matter
Recommended Actions
The outstanding engagement of the
“enthusiast” customers is an opportunity to
grow a deep relationship with those
advocates.
• reasonably high contact frequency
While they make a small portion of your email
file (less than 3%), they represent a large
share of your email opens, clicks (more than
20% of clicks came from this segment).
• incite them to share on social channels (Facebook fan page,
• understand who they are, where they come from, and what
they like
social contests, etc..)
• ask them to rate products or leave reviews after they bought
• have them to participate in surveys
Sleepy
Segment description
The “sleepy” are somehow active contacts with slow engagement.
Segment Definition
Opt-in contacts with tenure greater than 60 days, and at least one email received in the last
60 days, and predicted engagement decile between 9 and 10
Why they matter
While the sleepy contacts are technically active, they are very little engaged and at risk of
falling into the “phantom” segment. It is important to identify valuable customers within this
segment and have some targeted programs to move them up the engagement ladder.
Recommended Actions
• lower contact frequency
• targeted re-engagement programs
Email Segments – you can use data
science in 5 minutes
1. Signup on
Agilone.com
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2. Automatically
syncs data w/
Silverpop
3. Segments are 4. Use AgilOne 5. Use SilverPOP to
created
portal to track leverage segments
progress
for emails
Recent coverage of AgilOne on CNBC on this topic, check
out the comments…..
Marketers Seek Fix as Email
Overwhelms Consumers
By Christina Medici Scolaro | Big Data Download – Fri, May 10, 2013 1:04 PM EDT
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