Analytics Data to Boost

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1 Integrating and Web Analytics Data to Boost Conversion Rates Matthew Kritzer Director of Ecommerce, L Occitane en Provence Monday, March 16, 2009

2 L Occitane en Provence Who we are Pronounced LOX-EE-TAHN High-end lifestyle brand selling natural beauty products devoted to wellbeing and the pleasure of taking care of oneself Founded in 1976 in Southern France Worldwide sales in excess of 400 million Privately held Business presence in 70 countries Diverse product line Core US business units: Retail, Wholesale, Direct, B2B, Spa Enthusiastic customer base that loves to talk! 2

3 Existing Strategy Newsletters are deployed 1-3 times / week Campaign-focused ( Say & Spray ) Free Shipping, Gift With Purchase offers Blasts mirror the boutique marketing calendar Boutique event s sent to local audiences Successful Strategies Last minute reminders on offers Building excitement through campaigns Testimonial creative Inactive segmentation Total mailable DB size: ~800,000 Active list size: ~250,000 Inactive list size: ~550,000 Avg. open rate: 10.00% Avg. unique click rate: 1.30% Triggered Messages: Welcome Sequence (2 touches with incentive) Abandoned Cart 3

4 Challenge: How do we increase engagement? Why is relevance important? Increase in frequency reaching point of diminishing returns Inbox clutter is on the rise / consumer attitude is changing Increased consumer engagement, revenue and ROI Ability to fully utilize all marketing offers How did we become more relevant? Smart segmentation Testing Why did we improve our segmentation? Broad lists decrease relevancy Impersonal blasts result in decreased interest, engagement & profitability 4

5 Capturing Web Behavior Data and Integrating It with Capturing Web Behavior WITH Activity for users that have registered is captured via analytics vendor cookie Integrating with the vendor Daily feeds with product-level data: Browsed Abandoned Carted Purchased 5

6 Using Web Behavior Data in s Selected campaigns to run tests: Mother s day Campaign (May 2008) Shea Butter & Valentine s Day (January 2009) Note: The volume mailed using web behavior data was small (less than 10k) due to the level of granularity and timeframe used. These volumes can be increased: By enlarging the line of products selected By extending the timeframe 6

7 Browsed Master list Mother s Day Campaign s sent to browsed segment were 23 more times more profitable than s sent to the overall list. Segment Description Browsed < 90 days Master subscriber list. Browsed seg. was suppressed Volume 5, ,487 Subject Line Mother s Day Gift Sets to Celebrate + Free Shipping Offer Mother s Day Gift Sets to Celebrate + Free Shipping Offer Main CTA Gift Sets for Mother s day Gift Sets for Mother s day 2 nd CTA Create your own custom gift set Items recently browsed were published Ensure On-time Delivery for Mother's Day Various shipping options detailed. Browsed Segment Master List Segment Browsed Master Open Rate* 31.1% 8.8% Unique Click Rate** 11.4% 0.7% Revenue $3,672 $23,531 Conversion Rate*** 0.87% 0.04% $/ Total Mailed **** $0.71 / sent $0.03 / sent * HTML only ** Number of messages recipients who clicked through on at least one URL link within the as a percent of Net Delivered ***Conversion rate: # of unique conversions as a percent of net delivered **** $ / Total Mailed: Total revenue generated divided by total volume mailed 7

8 Mother s Day Campaign Browsed Segment Master List Segment 8

9 Skincare Active Shea Butter Campaign The Skincare segment had 8,433 records 4% of the ACTIVE mailed volume Segment Description Browsed/Purchased/Carted Skincare Products < 90 days Welcome s received < 3 months; clicked on s < 6 months Volume 8, ,453 Subject Line Exclusive Skincare Offer & FREE Shipping on $40+ Great Values for Valentines & FREE Shipping on $40+ Main CTA Shea Butter & Valentines Shea Butter & Valentines The revenue it generated is ¼ of the revenue generated by the ACTIVE segment 2 nd CTA Skincare GWP Bag & hand cream GWP Skincare Active Skincare Segment Active Segment Open Rate* 37.5% 14.7% Unique Click Rate** 14.5% 2.4% Revenue $7,419 $23,465 Conversion Rate*** 1.07% 0.14% $/ Total Mailed **** $0.88 / sent $0.11 / sent * HTML only ** Number of messages recipients who clicked through on at least one URL link within the as a percent of Net Delivered ***Conversion rate: # of unique conversions as a percent of net delivered **** $ / Total Mailed: Total revenue generated divided by total volume mailed 9

10 Shea Butter Campaign Skincare Segment Active Segment 10

11 Using the Abandoned Cart Behavior data to create an Abandoned Cart Trigger! Message business objectives Capture missed sales with a soft touch Encourage writing of testimonials Business Rules: Abandoned item/cart 7 days ago with no subsequent item purchase Have not purchased in the past 14 days Have not received the Abandoned Cart message in the past 50 days Include up to 3 abandoned products Site-level promotions managed in a separate module 11

12 Abandoned Cart Results Subject Line: Still interested? L OCCITANE fans have commented on products that may interest you Implemented in late January 09 Open Rate* 46.5% 30% of the implementation cost was recovered after 20 days Unsub rate remained constant Flexible Ad slots in creative allow for up to date promotions to be included Unique Click Rate** Conversion Rate*** $/ Total Mailed **** 10.4% 0.86% $0.84 / sent * HTML only ** Number of messages recipients who clicked through on at least one URL link within the as a percent of Net Delivered ***Conversion rate: # of unique conversions as a percent of net delivered **** $ / Total Mailed: Total revenue generated divided by total volume mailed 12

13 Learnings & Next Steps Learnings Analytics integration is key for successful segmentation Increased segmentation yields a higher ROI Segmentation enables to be more relevant and engaging Segmentation allows for greater promotional possibilities More Testing! Incentive tests > Are they necessary? Are they more profitable? Creative placement tests > How much additional creative is necessary? Determining best segments (i.e. Abandoned vs. browsed) Abandoned Cart Program: Next steps Messaging test (i.e. You have product A in your cart vs. Products you were interested about ) Timing tests (i.e. 7 days after abandonment vs. 3 days) 13

14 Credits/Thank You Matt Kritzer, L Occitane En Provence mkritzer@loccitane.net e-dialog Coremetrics 14

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