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Transactional Email as a Real-Time Marketing Channel - Part II

Posted by Paul Becker

Jul 9, 2015 10:38:49 PM

Part I of a recently presented case study with our client Shutterfly, from the IBM Amplify 2015 conference in San Diego, was presented in a previous post.

Part II demonstrates the business case for transactional email as the first real-time  marketing channel.

Why Transactional Email as the First Real-Time Marketing Channel?

  • Many retailers provide personalized offers/coupons at the physical point of sale
    • As an ecommerce business, Shutterfly sees transactional email  as essentially its point of sale receipt
  • Best practice at Shutterfly is to not offer someone a discount on something they just bought – real time decision is critical
    • e.g., If they just got a photobook, offer them 25% off a calendar
  • Transactional email is relatively small volume – good test for real-time marketing
    • Shutterfly sends nearly as many marketing emails in one month as they do transactional emails in an entire year
  • Requires minimal external solutions/system integration/simple data flow
  • CRM group historically is the “owner” of offers in this channel – no politics

In a Pinpoint Systems customer study from 2014, we measured the effectiveness of various marketing approaches using Attributed Revenue per Marketing Touch

Foundation of the Business Case – Demonstrate Incremental Revenue from Transactional Email

  • Simple Targeting on transactional email has had significant yield
  • Expected yield from real-time decisions is over 200%

Relative amount of CRM-generated revenue from Transactional Email approaches

Business_Case_from_Transactional_Email

Conclusion:  Real-time marketing decisions were found to be 2.23 times as effective as marketing decisions made in advance of the customer interaction

Measured Lift in Incremental Revenue (from Shutterfly Marketing)

Measured_Lift_in_Incremental_Revenue

Download the entire presentation.

Topics: Real-Time Marketing

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