Turn Your Program From Good to Great. Justin Helmig & Andrew Kordek

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1 Turn Your Program From Good to Great Justin Helmig & Andrew Kordek

2 JUSTIN HELMIG VP of Marketing at StrikeIron StrikeIron is the cloud leader with the most mature and reliable Data-as-a-Service (DaaS) platform on the market. StrikeIron offers an Verification Solution that is the most innovative and accurate solution, offering a reduction in bounces and delivery failures by 90% or more. Experiences the same pain points that all marketers face. StrikeIron increases deliverability to help marketers avoid spam filters and blacklisting. Solution integrated into retailers, agencies and ESPs: Swarovski, 24 Hour Fitness, Party City, Toshiba, HubSpot, YesMail, Epsilon and MORE. Predicts that Clemson will win the national championship

3 ANDREW KORDEK Co-Founder & Chief Strategist of Trendline Interactive Trendline Interactive is one of the only agencies in the world dedicated to marketing. We bring insights from our industry leading research to life through a full suite of strategic, creative and vendoragnostic technical services that drive relevant messaging and maximize subscriber value Leads strategy for Trendline clients, touching all aspects of programs. Prior to Trendline, managed all aspects of marketing for Groupon, fostering its success as the fastest growing company in history. Prior to Groupon, was responsible for strategy, execution, and analysis of transactional and trigger-based for Sears Holdings. Prior to Sears, created and managed all of the global and interactive marketing for Quest Software In his spare time, he loves to check-in on Foursquare 30 times a day.

4 Agenda Introductions The Relevancy Challenge More s. Less . More revenue. Testing for greatness Importance of being clean Analytics for champions Wrap Up and Q&A

5 is the most used, most valuable, most profitable and highly prized real estate on the Internet today.

6 58% of online consumers begin the day with .* *ExactTarget/Trendline Research: Subscribers, Fans, & Followers - exacttarget.com/sff

7 IS THRIVING

8 Direct Mail Telephone IM Direct Mail Telephone IM Direct Mail Telephone Mobile SMS IM Direct Mail Telephone Addressable Voice Mobile SMS + MMS IM Direct Mail Telephone < s s 2012 TV Radio Print Display TV Radio Print Display Website Search Online Display TV Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Webinars Affiliate Marketing TV Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Affiliate Marketing Webinars Blogs RSS Podcasts Contextual Wikis Mobile Web MySpace TV Radio Print Display Website Search Online Display Paid Search Landing Pages Microsites Online Video Affiliate Marketing Webinars Blogs RSS Podcasts Contextual Wikis Mobile Web MySpace Behavioral Facebook Twitter YouTube Virtual Worlds Augmented Reality Flickr Foursquare Google+ Pinterest

9

10 TO CUT THROUGH THE NOISE WE NEED TO UNDERSTAND WHAT MOTIVATES CONSUMERS

11 Importance of Being Relevant Open Rate Level of Engagement Over Time Relevant Batch-and-Blast Time > Customer engagement decreases faster and stabilizes later when messaging is: o Not relevant o Low value o Too frequent Keep engagement high by driving all three

12 Why is it so hard? 1. Consumers want to engage through , so long as they feel there is something of value for them. is great for deals and sales. For example, I like getting information on airline deals. The body of the tells me which deals are available and where they go from there I can click through and access more comprehensive information online!

13 2. Your competition in the inbox is every that is more relevant than your let s me immediately scan subject lines and clean out irrelevant or uninteresting s, leaving only what I am interested in.

14 Why is it so hard? 3. People s interests change over time. Sometimes it s really not anything they did, it s just that I lost interest over the years.

15 Where do you start?

16 Program/ROI Welcome Promotional Transactional Triggered Transactional Retention

17 Abandon Cart 2 Retention Tier C-2 Thank You Browse 1 Welcome Anniversary ereceipts Browse 2 Event Triggered Shipping Confirm Social Welcome Promotional Win-Back Tier C-3 Abandon Cart 1 Retention Tier A-1 Win-Back Tier B-3 egift Card Browse 3 Survey Order Confirm Browse 4 Category Post- Purchase On Boarding Series

18 Case Study Abandon Cart 546%

19 Only a third of responding companies (32%) carry out a regular amount of testing for marketing. One quarter of organizations say they infrequently carry out testing, while 13% don t test at all. - Econsultancy Marketing Census 2011 (2011)

20 101 Things you could be testing

21 Primary Testing Options Scientific Testing for Response Optimization A / B SPLIT (Beginner) MULTIVARIATE (Intermediate) D.O.E. (e.g., TAGUCHI) (Advanced) A B A B C D E F 1 Factor x 2 Op2ons 1 Ad Tested = 2 Test Results 3-4 Factors x 2 Op2ons Each >10 Ads Tested = 100+ Test Results 7-10 Factors X 2-6 Op2ons Each ~ 18 Ads Tested = 2,000+ Test Results

22 Strengths & Weaknesses Split Tes2ng Strengths Simple to Execute Easy to Understand Fast Results Mul2variate Tes2ng Strengths Mul2ple variables Full Interac2ons Measured Easy to Understand DOE Tes2ng Strengths Test lots of factors simultaneously Best recipe delivered Fast Results Weaknesses Limited Capabili2es Single Factor Tes2ng an extensive set of factors Weaknesses Limited # of factors Analysis time Weaknesses Complex setup Creative time Multiple executions required (2 minimum) Voodoo factor

23 Case Study: Taguchi Test Test Design 10 key performance factors 18 creative versions 10,368 theoretical permutations Results Click through increased 445%!

24 Importance of a clean list Define a clean list Define inactive Aged addresses can cripple you Inactive subscribers hurt deliverability rates Reduce response rates = loss of revenue ISP s view of inactives is different from that of a marketer Re-engagement takes patience and experience Clean list = no trouble on the deliverability front

25 Analytics that are actionable Making your analytics actionable can make you a smarter marketer Identifying trends and patterns and knowing when to change is crucial Move beyond the basics of engagement numbers Never trust your gut..numbers don t lie Make analytics be proactive rather than reactive

26 Engagement Analytics Open Rate CTR Click Thru Rate CTOR Click to open rate Unsubscribe Rate Spam complaint rate Revenue per Churn rate List hurdle rate Conversion by source Time to inactivity

27 Disengagement Analytics Bounce Rate Soft Hard Complaints: how many people tagged your message as spam delivery is dependent on reputation and inbox placement rate

28 Isn t Black & White marketing is many shades of gray Spam Traps vs. Honey Pots Spam s Cousin: Bacn aka Graymail

29 Start Clean: Properly Acquire Lists Double Opt-in Set clear expectations: content, frequency Clear Exit: always have an opt-out

30 Stay Clean 30% of addresses change each year Opted-in lists are plagued by: Fatfingering typo mistakes Disposable addresses Fraudulent addresses Natural degradation people change jobs, names, etc.

31 How to Clean a List Stay-clean strategy demands an ongoing verification process at least quarterly Batch vs. Real-Time DIY and Fail.focus on your content & look for a vendor with core competency in data quality and list hygiene

32 Summary Remember the axiom garbage in, garbage out Outdated lists waste your bandwidth and raise a red flag to ISPs verification is critical ongoing process

33 Q&A

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