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Posts Tagged ‘segmentation’

Email Marketing: Groupon’s segmentation strategies across 115 million subscribers

September 20th, 2011

Groupon is one of the biggest email marketing success stories you’ll ever hear. The daily deal company launched in November 2008 and was dubbed the fastest growing company ever last year by Forbes. Much of that growth is powered by targeted email messaging.

Today, Groupon sends about 5 billion emails each month, according to John Becvar, Sr. Director of Relationship Marketing at Groupon. I was lucky enough to hear Becvar comment on the company’s growth and email strategy during a panel session at ExactTarget’s Connections 2011 last week.

“We really began with no personalization and no segmentation,” Becvar said.

Becvar joined Groupon almost two years ago, back when its site featured a single deal each day in markets such as greater Chicago, with no deals on the weekends. Today, Groupon offers about 1,000 deals in the Chicago area in a given week, Becvar said.

“When I joined we had about 2 million subscribers. Based on our most-recent finding, we have over 115 million subscribers … We were in 20-some-odd markets when I joined. Now we’re in 45 countries and 500 markets … So we’ve obviously had to do a little bit of segmentation and personalization to stay relevant,” Becvar said.

Becvar described four types of segmentation Groupon uses for its email marketing: Read more…

Email Marketing: A toxic misunderstanding that could kill your response rates

August 30th, 2011

Internal challenges are among the hardest to overcome when trying to improve your email marketing. You can know everything about improving results, but if your leaders are unwilling to commit the resources, or have a fundamental misunderstanding about email, then you have some convincing to do.

One of the most common misunderstandings I have heard at our Email Marketing Workshops is that some companies “do not believe in” suppressing parts of their list. The leaders essentially force the marketers to batch and blast, thinking it is always better to have more eyeballs on a message than fewer.

This, however, is a huge misconception. Email marketing is not advertising. If you send a message that is irrelevant to a large portion of your list, then you are encouraging recipients to click “spam” and ignore you in the future. Practiced consistently, this can be toxic to your database. Read more…

Take the Hint from Unresponsive Subscribers

August 20th, 2010

For several years now we’ve seen marketers report that a bigger email list isn’t necessarily a better email list. There’s often more value in a smaller list of engaged, responsive subscribers than in a huge list with a significant portion of addresses that never open, click, or convert from your messages.

But a new study from Return Path shows that many email marketers are still hammering unresponsive subscribers with undifferentiated, sales-focused emails — rather than providing more relevant messages intended to re-engage those subscribers, or removing them from their lists.

To observe marketers’ email practices, the researchers at Return Path purchased one item from 40 online retailers and opted-in to their email marketing programs. They kept that email account active for 19 months after the purchase, but did not open or click a single message they received and never purchased another item.

In short, they were totally unresponsive subscribers. But during those 19 months, the researchers observed:
• Retailers sent on average between nine and 11 emails per month during the course of the study
• Only 27% of retailers stopped sending messages during the study period
• Only 12.5% of retailers sent a “win-back” message that attempted to reengage the subscriber

We agree with Return Path’s conclusion: Marketers that don’t pay attention to unresponsive subscribers are missing opportunities and potentially harming their sender reputations.

Instead, identify those non-responders and approach them differently than you do your engaged customers. Here are three steps to take to begin the process:

1. Segment database by recent activity

Monitor subscriber actions to identify those who are engaged, and those who are not. Then, create a special segment for subscribers who have not responded to an email (clicked or purchased) in a specific period of time — say, the past six months, nine months, one year, etc.

2. Send unresponsive segment special offers or win-back campaigns

Once you’ve found your “unresponsive” segment, work to re-engage them with more relevant messages, such as:
o Special offers for win-back campaigns
o Requests for them to specify their email frequency and other preferences
o Requests for them to confirm whether they still want to receive email from you

3. Clean your list

Unresponsive subscribers that don’t reengage after win-back campaigns or re-permissioning emails should be purged from your list. Otherwise, your deliverability can suffer.

As Return Path and other deliverability experts have noted, some ISPs are increasingly using subscriber response rate as a factor in a sender’s reputation. If they see low or no-response from a big portion of your database over time, they may reduce your sender score to the point that your messages are sent to spam folders — or blocked entirely.