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)