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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


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)


Download the entire presentation.

Topics: Real-Time Marketing

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