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What’s Inside?
This paper addresses why activation programs are important
and how a marketer should approach developing them.
Specific topics include:
	 •	 Industry trends that uncover an increasing need for
		 activation programs
	 •	 Goals and components of a successful email
		 activation program
	 •	 Types of activation campaigns top brands are creating
		 to wake up their sleeping subscribers
	 •	 Performance metrics for activation campaigns and
		 how they stack up against base communications

1

Activate &
Engage

2

Types of
Campaigns

Activation Programs: Using Email
Behavioral Data to Engage and
Reactivate your Customers
Most marketers are well aware that using consumer
behavioral data to create personalized marketing
programs will net a significant increase in marketing
ROI. But you may be surprised by just how much
more effective these programs are - according to
MarketingSherpa, targeted content is outperforming
status quo messaging by 200% to 300% on both
engagement and conversion metrics.1 In the field of
email marketing, activation programs, in particular,
have become a critical vehicle to drive engagement and
revenue for top-performing marketing teams.
The beauty of activation campaigns is that they empower
marketers to be proactive, instead of sitting idly by
as their customers drift away. Savvy marketers who
implement activation programs can welcome recurring
revenue and engagement from customers that might
have otherwise become inactive (or from customers who
are about to become inactive). Activation campaigns
can also help identify the truly lapsed customers, so
you can weed-out the ‘zombies’ that hurt your email
deliverability. The less engaged subscribers are with
your emails, the lower your sending reputation and the
higher the likelihood of deliverability issues. This is why
more and more brands are implementing activation
campaigns as part of a profitable email marketing
strategy.

3

Using the
Data

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 2
Industry Trends

90%
of media interactions
are screen-based

It is a fascinating time to be an interactive marketer.
Change continues to accelerate and consumers are
adopting new technologies at a mind-blowing rate. A
recent study from Google indicates that 90% of all media
interactions today are screen-based.2 And because of the
rapid adoption of smartphones and tablets, consumer
attention is often split between multiple screens.
Yesmail’s Email Marketing Compass report affirmed
this finding by establishing that, on average, 30% of
consumers view emails in a combination of mobile
and desktop devices instead of exhibiting a consistent
preference of one over the other.3 This trend has
changed the way consumers interact with brands. It has
changed their expectations about how they want to be
reached, as well as how they research and buy products.
For the interactive marketer, new channels and the
variety of screens provide access to more information
about customers than ever before. Consumer behavioral
data is more readily available - marketers can access
transactional and point-of-sale (POS) data, engagement
behavior data like site visits and social activity, email
behavior data like opens and clicks, as well as multiscreen behavioral data on the web, mobile, social, and
email.
Knowing your customers and how active they are, is
a critical component of creating informed activation
programs that cater to the composition of your unique
database.

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 3
Industry Trends
20%

Engaged by marketers

40%

60%

A recent report from Chief Marketer estimates that
marketers engage with less than 20% of their overall
database.4 Consequently, it comes as no surprise, that the
average active subscriber rate across all industries is 7.4%,
as per Yesmail’s Q2 Email Marketing Compass report.3
Marketers know they get the most value by identifying
and targeting their highly engaged segments, but that
doesn’t mean they can’t influence and “bring back”
those customers who have become inactive (or the new
subscribers who haven’t yet purchased). This is where
activation campaigns can really impact a brand’s email
programs and bottom line.
Advances in technology are making it far easier for
marketers to understand email behavioral data and build
activation campaigns. Several of the top ESPs (email
service providers) now have tools that help marketers
continually analyze and segment subscribers, automate
lifecycle marketing, and enable targeting based on
activity level and customer tenure. As technology
improvements continue to lessen the manpower needed
to analyze email behavioral data and segment users, we’ll
begin to see more brands harness the power of activation
programs.

80%

100%

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 4
ers
rib

40

Inactive

Up

There is no benefit to wearing rose-colored glasses when
it comes to understanding your database. You might
find the number of inactive subscribers on your list to be
frightening, but you are not alone. Depending on your
industry, even an 80% inactive population is not unheard
of. Before developing your activation strategy, you need to
accept some of the bad news before developing a solution
to the problem.

%

Active
Su
bs
c

The Inconvenient Truth about Your
Audience

to 7

	 •	
		
		
		
		
		

The average retailer has 40-70% inactive subscribers
(not opened/clicked in over 6/8/12 months).
Confirming this stat, Yesmail’s Q2 benchmark report
determined that almost 90% of the retail industry’s
mailable subscribers have not been active within 3
months.3

	 •	
		
		
		

The first 90 days after you get a new subscriber are
absolutely critical. If they are new to your list and
they aren’t responding you need to immediately react
because response and activity will drop over time.

	 •	 The number of inactive subscribers in your list will
		 grow. As subscribers get used to hearing from you,
		 their engagement will typically decrease over time.
	 •	
		
		
		
		

0%

1.877.937.6245 |

When you consistently mail to an inactive population
it brings down your overall performance, conversion,
AND deliverability rates (for more information
on deliverability, download Yesmail’s deliverability
whitepaper, 10 Email Deliverability Myths Debunked).5

The good news is that activation campaigns can and do
drive customers to the next level of engagement.

marketing@yesmail.com | www.yesmail.com

pg. 5
Reasons Subscribers Become Inactive

Irrelevant
content

There are many reasons customers become inactive. As a
marketer, you have control over some while others…not
so much. Why do customers become inactive?
	 1.	They don’t need or want the product/service at
		 this time – Are they not buying because they are not
		 interested in the product or because they are not
		 ready to buy at this time (seasonal purchase
		 behavior)? You can get a sense of their need by
		 looking through behavioral and past purchase data.
	 2.	Your content is irrelevant – Research shared by
		 Social Barrel and Skadeedle indicates that 25% of
		 recipients find content irrelevant.6

Too many
messages

Too busy

	 3.	You send too many messages – At a certain point,
		 the customer gets so used to getting stuff from you
		 that they begin ignoring your messages. Anyone with
		 an email account has opened it in the morning to
		 find it overflowing with messages. Inboxes are
		 flooded and sometimes subscribers just get
		 overwhelmed and tune out. According to research
		 shared by Social Barrel and Skadeedle, 47% of
		 consumers say they receive too many emails.6
	 4.	They are too busy – Whether it is because Bobby is
		 home from school with the flu, they have a deadline
		 at work, or they don’t want to miss the finale of Game
		 of Thrones, sometimes consumers are too busy to
		 bother with your emails. Once they get used to
		 ignoring your emails, engagement can drop off.
	 5.	They don’t see it – Your messages may be getting
		 caught in the junk folder due to deliverability
		 issues. Also, email providers like Gmail have
		 instituted separate folders for promotions that might
		 not be viewed as often as the main inbox.

Multiple
mailboxes

1.877.937.6245 |

	 6.	They have multiple email accounts – Whether it
		 is because the customer got a new account and didn’t
		 close the old one, or because they have separate
		 emails for work and personal, or they have a separate
		 account for only marketing messages, most
		 consumers have multiple accounts. In fact, 43% of
		 voters in a Lifehacker poll said that they deal with 4-6
		 inboxes.7

marketing@yesmail.com | www.yesmail.com

pg. 6
An Introduction to Activation Programs

Goals and Strategies of Activation
Programs

Most marketers track opens and clicks, but too few of us
are digging deep enough and using behavioral data to
segment our customer base and create behavior-based
email campaigns. According to the 2013 Marketing
Sherpa email benchmark survey, only 37% of all surveyed
marketers are segmenting email campaigns based on
behavior to improve email relevance and engagement.8
And when you look at those marketers who ARE
personalizing content, 55% are segmenting based on
email engagement behavior and 53% do so based on
purchase history.

1.	 Drive customers to the next level of engagement (for
		 example, drive to first or repeat purchase)
2.	 Bring back customers who are inactive (it is much
		 more expensive to gain new customers than it is to
		 re-engage existing, right?)
3.	
		
		
		

Help with list management (track segments and
develop optimal content and contact strategies; like
knowing when to remove inactive subscribers to
protect deliverability)

Inactive
Subscribers

Active

Openers &
Clickers

Activation campaigns are unique in that they are
specifically tailored to where your subscribers are
interacting with your email and whether they are
converting (typically to purchase) or not. If you can track
email behavioral data to understand subscribers – Are
they opening? Clicking? Buying? What products are
they buying? Which devices are they using? When did
they become inactive and why? – you can create trigger
messages to engage them and bring them closer to your
‘best customer’ segment.

First

Time Buyers

Repeat
Customers

Best

Customers

Bring inactive customers back

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 7
Inactive Portion of Database

Elements of an Email Activation Strategy
Before developing your activation campaigns, you
want to make sure you have defined objectives so you
can create targeted campaigns by segment. Start with
an analysis to understand how much of your database
is active and how much is inactive. Your Email Service
Provider should have technology solutions to help with
this process, so don’t forget to reach out to them.

43%

Reasons for Inactivity

6%

23%

14%

Didn’t see it

Too busy

Not interested

	 1.	 Analyze your behavioral data to understand the
		 different levels of inactivity and create segments
		 based on these levels. How you define these segments
		 will depend on your database and specific business
		 model.
	 2.	Once you have done some initial analysis to define
		 segments and identify counts per segment, you will
		 want to track the counts and movement by activation
		 segment. This will help you assess how your database
		 is changing and what the churn is.
		 •	 Analyze who is active, who is inactive, and how
			 inactive they are (duration).
		 •	 How frequently do they interact with your email
			 campaigns?

Time of Inactivity

		 •	 How recently have they done so?
		 •	 Track how the counts of each segment change
			 over time and understand where they are headed.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sept.

Oct.

For insight on potential database segments, see the Key
Segments section on the next page.

Activation Campaigns
Early

1.877.937.6245 |

Mid

Late

marketing@yesmail.com | www.yesmail.com

pg. 8
Segment
Purchaser

One-time
Purchaser

Inactive

How you define your key activation segments will depend
on your business and industry. For example, you may
segment by buyers, repeat buyers, one-time purchasers
(those who bought only once), and inactive segments by
length of time since their last interaction.
Find out as much as you can about these audiences
and WHEN they become inactive so you can time your
activation programs appropriately. The more you know
about your customer, the more relevant your activation
campaigns will be. You can further divide early, mid, and
late segments based on product interest. For instance, if
you know a customer hasn’t interacted in a long while but
in the past they had purchased science fiction books, you
could send them the top science fiction books of 2013 in
your “We want you back” message. You have more to offer
than just a discount. Talk about what they have missed that
they might care about.

Purchases

Repeat
Purchaser

Key Segments

Types of Activation Campaigns
There are three different categories of activation
campaigns:
	 1.	 Early activation programs – designed to engage
		 subscribers who are NEW to your database (joined
		 within 0-90 days).
	 2.	Mid activation programs – designed to engage
		 subscribers who have been inactive between
		 3 - 12 months.
	 3.	Late activation programs – designed to engage
		 subscribers who have been inactive for over 12
		 months.
	

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 9
Early

Mid

Late

Early Activation Programs
(aimed at subscribers with database tenure
of 0-90 days)
This is typically your highest performing category as
it consists of your newest subscribers. This is also the
category that you want to keep the closest eye on. When
you start to see an early drop-off in activity, you need
to immediately react, which is why it is important to
continually track email behavior and create appropriate
triggers.
Examples of early activation campaigns can include:
	 •	 First purchase offers – Special offers to get
		 subscribers to make that critical first buy.
	 •	
		
		
		

Next purchase offers – These triggered campaigns
allow you to thank customers for their order and
provide a follow-up discount for their next purchase
to encourage repeat buys.

	 •	
		
		
		
		

“Get more from your emails” (Update preferences) –
These campaigns ask the customer to tell you what
they want and provides the added benefit of
improving your knowledge of the customer so you
can provide more relevant content.

	 •	
		
		
		
		
		
		
		

Multi-message ‘best offer’ campaign – As the
customer begins to approach 90 days of inactivity
you can consider sending a multi-message best offer
campaign with increasingly improved offers. If they
don’t respond to ‘10% off’, send ‘15% off’ a couple of
days later, etc. This gives you the opportunity to find
the sweet spot or special incentive that gets them to
act in the next message.

	 •	 VIP/Loyalty recognition – Don’t forget to continue to
		 reward your best customers and nudge them towards
		 the next purchase.

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 10
Early

Mid

Late
Mid Activation Programs
(aimed at subscribers who have been inactive
for 3-12 months)
These programs are designed to bring back subscribers
who have been inactive for more than 3 months days,
but less than a year. Some of the campaigns from above,
like ‘update preferences’ and multi-message best offer
emails, also work well for this category.
Some additional campaign examples for this category:
	 a.	Survey – Surveys can provide a compelling reason
		 for customers to engage and also provide you with
		 valuable insight when you analyze their answers.	
	
	 b.	‘We miss you’ (come back offer) – This type of
		 campaign is similar to a first purchase offer, but
		 designed to bring customers back into the fold.

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 11
Early

Mid

Late

Late Activation Programs
(Aimed at subscribers who have been inactive
for over 12 months)
This category serves two purposes:
	 1.	 You still want to get everything you can out of your
		 subscribers even if they haven’t interacted in a long
		 time.
	 2.	Before retiring subscribers due to inactivity, you
		 want to reel as many as possible back in. You might
		 not get a big response out of this segment, but the
		 value here is finding out which of these customers
		 are actually inactive and determining whether to
		 implement an activation program for them or remove
		 them from your list since their disengagement with
		 your emails negatively affects deliverability.
You do not want to drop these subscribers into your
base communication flow because that will cause
deliverability issues due to lack of response and
engagement with your messages. Keep this segment
separate and consider it in Purgatory until you decide to
‘retire’ them from your database or attempt to re-engage
them. You may ask, “How long should I wait until I finally
let them go?” Like most things in email marketing, this
will depend on your company, but if someone hasn’t
opened in the past two to three years, it is safe to assume
that bringing them back is not likely.
Tips for developing activation campaigns for this
segment:
	 a.	Proceed with caution. Start your campaigns using
		 small segments of subscribers to gauge interest and
		 avoid deliverability issues.
	 b.	Don’t be afraid to be personal and direct. Use first
		 names: “Hey, Joe, we haven’t heard from you in a
		 long time.”
	 c.	You have nothing to lose by sending the multi		 message best offer campaign to this segment. So
		 don’t be afraid to send your very best offer to bring
		 these ‘zombies’ back.

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 12
Lifecycle
Campaigns

Connect and
Engage

Purchase Cycle
Campaigns

On-going
Communications

Where Activation Campaigns Fit in your
Portfolio

Welcome
Transactional
(order/ship/
confirmation)

Early Activation
0 to 30 days

Promotions

Welcome
Series

Bond

Get started
with your
product/tips

First Purchase
Offer
Cross-sell
Up- sell

30 to 90 days

Events

Activation campaigns are triggered off of email
inactivity and purchase activity. This means you can
email first purchase offers, as part of your lifecycle
campaigns, to subscribers who have been in your
database for some time, but have not yet purchased.
Similarly, to drive customers to the next level of
engagement, you can trigger a next purchase offer
within your purchase cycle campaigns.
Your base communications (on-going promos,
newsletters) will run in parallel with activation
campaigns and can also be targeted by activity
segments as appropriate. Some marketers will send
base communications less frequently to their less
active segments.

Survey
Review
Products
Loyalty/ VIP
Recognition

Newsletters
Shareable
Offer

On-going
Relationship
90+ days
Birthday
Anniversary

Re-purchase
Offer
Updates
Best Customer
Campaigns/
Loyalty

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 13
ROI and Value of Activation Campaigns

Early

Activation

Middle

Activation

Late

Activation

Average
open rate

Average
open rate

Average
open rate

1.877.937.6245 |

91%
Increase

NO

Increase

21%

We recently ran a small performance analysis of five
leading e-commerce brands with activation campaigns
and compared their performance against Yesmail’s
portfolio of over 200 email marketers (that may or may
not have activation programs). We found that brands
that run activation campaigns had a lower percentage of
inactive customers. There are many types of campaigns
that can be sent to activate customers and prospects
under the early, mid, and late activation categories. For
our analysis, we selected one example campaign per
category to showcase the value of each category.
As expected, early activation campaigns typically
achieve an open rate that’s 91% above the average
open rate of 15.7% for base communications. Mid
activation campaigns performed in-line with base
communications, while late activation campaigns
yielded a 21% open rate decrease in comparison to base
communications. In addition, we discovered that clients
that deploy activation campaigns have a 13% higher
active subscriber rate (opened/clicked in last 90 days)
than typical senders.
These stats should convince you to reactivate early
and catch your customers before they drop off and
become inactive. Keep in mind these numbers may not
reflect some of the other benefits of the later activation
campaigns, like list hygiene.
Take the time to fully develop campaign strategies
and define success metrics. You need to have realistic
expectations about the type of response you will get from
early vs. late activation and understand that sometimes
the value of the campaign lies in gaining knowledge
about your database not achieving high response rates.

Decrease

marketing@yesmail.com | www.yesmail.com

pg. 14
Conclusion
Activation programs have become a not-so-secret
weapon for achieving optimal consumer engagement.
A fully developed activation strategy that uses email
behavioral data can prevent customers from becoming
disengaged, re-engage those who have become inactive,
increase revenue from key segments, and provide
valuable information about the interests and preferences
of your subscribers.

Normal
Database
Wr
on
g

O

Activ
e

r
ffe

Segmented
Database

Too Busy
Don’t See It

ted
Not Interes

19%

14%

22%

13%

1 year

2 years

3 years

4 years

As you develop activation campaigns, remember to
begin by defining and tracking key segments over time.
Find out as much as you can about your audience and
when they become inactive. Create various campaign
strategies and test them to learn which ones produce the
best results.
For many marketers, one of the most difficult parts of
developing activation campaigns is having the time or
analytical prowess to crunch behavioral data and create
segments, but that hurdle is becoming less troublesome
with technological improvements that make analysis
easier. Tools that help you consistently measure and
automatically segment based on email behavior, and
automate early engagement campaigns, cascading
promotions, best subscriber offers and late activation
campaigns can be an important asset, so don’t forget to
reach out to your ESP to understand how they can help.
Successful activation programs should be a key part
of your ongoing email portfolio - and if they aren’t,
what are you waiting for? The quicker you can reach
the customers who have pulled away, the higher your
chances of bringing them back.

Don’t forget!

measure segments over time
1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 15
RESOURCES
1.	 http://sherpablog.marketingsherpa.com/emailmarketing/email-marketing-your-questions-aboutpersonalization-and-length/
2.	 http://www.google.com/think/research-studies/thenew-multi-screen-world-study.html
3.	 http://www.yesmail.com/resources/whitepaper/
yesmails-email-marketing-compass-mobile-effect
4.	 http://www.chiefmarketer.com/site-files/chiefmarketer.
com/files/uploads/2013/03/email-tech-roundup.pdf

We power intelligent customer interactions. We give you
the insights to recognize and understand your customer to
deliver contextually relevant digital communications – while
respecting their preferences and privacy. We help marketers
evolve their customer relationships through intelligent
interactions via technology, insights, and services in a near
real-time multichannel environment. We help you compete
in the age of the customer.

For more information, visit www.yesmail.com.

5.	 http://www.yesmail.com/resources/whitepaper/endnightmares-10-email-deliverability-myths-debunked
6.	 http://socialbarrel.com/why-do-email-subscribersunsubscribe-infographic/51195/
7.	 http://lifehacker.com/how-many-inboxes-do-you-dealwith-477186651
8.	 http://www.meclabs.com/training/publications/
benchmark-report/2013-email-marketing/overview

1.877.937.6245 |

marketing@yesmail.com | www.yesmail.com

pg. 16

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Activation Campaigns: Using Email Behavioral Data to Engage and Reactivate Your Customers

  • 1.
  • 2. What’s Inside? This paper addresses why activation programs are important and how a marketer should approach developing them. Specific topics include: • Industry trends that uncover an increasing need for activation programs • Goals and components of a successful email activation program • Types of activation campaigns top brands are creating to wake up their sleeping subscribers • Performance metrics for activation campaigns and how they stack up against base communications 1 Activate & Engage 2 Types of Campaigns Activation Programs: Using Email Behavioral Data to Engage and Reactivate your Customers Most marketers are well aware that using consumer behavioral data to create personalized marketing programs will net a significant increase in marketing ROI. But you may be surprised by just how much more effective these programs are - according to MarketingSherpa, targeted content is outperforming status quo messaging by 200% to 300% on both engagement and conversion metrics.1 In the field of email marketing, activation programs, in particular, have become a critical vehicle to drive engagement and revenue for top-performing marketing teams. The beauty of activation campaigns is that they empower marketers to be proactive, instead of sitting idly by as their customers drift away. Savvy marketers who implement activation programs can welcome recurring revenue and engagement from customers that might have otherwise become inactive (or from customers who are about to become inactive). Activation campaigns can also help identify the truly lapsed customers, so you can weed-out the ‘zombies’ that hurt your email deliverability. The less engaged subscribers are with your emails, the lower your sending reputation and the higher the likelihood of deliverability issues. This is why more and more brands are implementing activation campaigns as part of a profitable email marketing strategy. 3 Using the Data 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 2
  • 3. Industry Trends 90% of media interactions are screen-based It is a fascinating time to be an interactive marketer. Change continues to accelerate and consumers are adopting new technologies at a mind-blowing rate. A recent study from Google indicates that 90% of all media interactions today are screen-based.2 And because of the rapid adoption of smartphones and tablets, consumer attention is often split between multiple screens. Yesmail’s Email Marketing Compass report affirmed this finding by establishing that, on average, 30% of consumers view emails in a combination of mobile and desktop devices instead of exhibiting a consistent preference of one over the other.3 This trend has changed the way consumers interact with brands. It has changed their expectations about how they want to be reached, as well as how they research and buy products. For the interactive marketer, new channels and the variety of screens provide access to more information about customers than ever before. Consumer behavioral data is more readily available - marketers can access transactional and point-of-sale (POS) data, engagement behavior data like site visits and social activity, email behavior data like opens and clicks, as well as multiscreen behavioral data on the web, mobile, social, and email. Knowing your customers and how active they are, is a critical component of creating informed activation programs that cater to the composition of your unique database. 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 3
  • 4. Industry Trends 20% Engaged by marketers 40% 60% A recent report from Chief Marketer estimates that marketers engage with less than 20% of their overall database.4 Consequently, it comes as no surprise, that the average active subscriber rate across all industries is 7.4%, as per Yesmail’s Q2 Email Marketing Compass report.3 Marketers know they get the most value by identifying and targeting their highly engaged segments, but that doesn’t mean they can’t influence and “bring back” those customers who have become inactive (or the new subscribers who haven’t yet purchased). This is where activation campaigns can really impact a brand’s email programs and bottom line. Advances in technology are making it far easier for marketers to understand email behavioral data and build activation campaigns. Several of the top ESPs (email service providers) now have tools that help marketers continually analyze and segment subscribers, automate lifecycle marketing, and enable targeting based on activity level and customer tenure. As technology improvements continue to lessen the manpower needed to analyze email behavioral data and segment users, we’ll begin to see more brands harness the power of activation programs. 80% 100% 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 4
  • 5. ers rib 40 Inactive Up There is no benefit to wearing rose-colored glasses when it comes to understanding your database. You might find the number of inactive subscribers on your list to be frightening, but you are not alone. Depending on your industry, even an 80% inactive population is not unheard of. Before developing your activation strategy, you need to accept some of the bad news before developing a solution to the problem. % Active Su bs c The Inconvenient Truth about Your Audience to 7 • The average retailer has 40-70% inactive subscribers (not opened/clicked in over 6/8/12 months). Confirming this stat, Yesmail’s Q2 benchmark report determined that almost 90% of the retail industry’s mailable subscribers have not been active within 3 months.3 • The first 90 days after you get a new subscriber are absolutely critical. If they are new to your list and they aren’t responding you need to immediately react because response and activity will drop over time. • The number of inactive subscribers in your list will grow. As subscribers get used to hearing from you, their engagement will typically decrease over time. • 0% 1.877.937.6245 | When you consistently mail to an inactive population it brings down your overall performance, conversion, AND deliverability rates (for more information on deliverability, download Yesmail’s deliverability whitepaper, 10 Email Deliverability Myths Debunked).5 The good news is that activation campaigns can and do drive customers to the next level of engagement. marketing@yesmail.com | www.yesmail.com pg. 5
  • 6. Reasons Subscribers Become Inactive Irrelevant content There are many reasons customers become inactive. As a marketer, you have control over some while others…not so much. Why do customers become inactive? 1. They don’t need or want the product/service at this time – Are they not buying because they are not interested in the product or because they are not ready to buy at this time (seasonal purchase behavior)? You can get a sense of their need by looking through behavioral and past purchase data. 2. Your content is irrelevant – Research shared by Social Barrel and Skadeedle indicates that 25% of recipients find content irrelevant.6 Too many messages Too busy 3. You send too many messages – At a certain point, the customer gets so used to getting stuff from you that they begin ignoring your messages. Anyone with an email account has opened it in the morning to find it overflowing with messages. Inboxes are flooded and sometimes subscribers just get overwhelmed and tune out. According to research shared by Social Barrel and Skadeedle, 47% of consumers say they receive too many emails.6 4. They are too busy – Whether it is because Bobby is home from school with the flu, they have a deadline at work, or they don’t want to miss the finale of Game of Thrones, sometimes consumers are too busy to bother with your emails. Once they get used to ignoring your emails, engagement can drop off. 5. They don’t see it – Your messages may be getting caught in the junk folder due to deliverability issues. Also, email providers like Gmail have instituted separate folders for promotions that might not be viewed as often as the main inbox. Multiple mailboxes 1.877.937.6245 | 6. They have multiple email accounts – Whether it is because the customer got a new account and didn’t close the old one, or because they have separate emails for work and personal, or they have a separate account for only marketing messages, most consumers have multiple accounts. In fact, 43% of voters in a Lifehacker poll said that they deal with 4-6 inboxes.7 marketing@yesmail.com | www.yesmail.com pg. 6
  • 7. An Introduction to Activation Programs Goals and Strategies of Activation Programs Most marketers track opens and clicks, but too few of us are digging deep enough and using behavioral data to segment our customer base and create behavior-based email campaigns. According to the 2013 Marketing Sherpa email benchmark survey, only 37% of all surveyed marketers are segmenting email campaigns based on behavior to improve email relevance and engagement.8 And when you look at those marketers who ARE personalizing content, 55% are segmenting based on email engagement behavior and 53% do so based on purchase history. 1. Drive customers to the next level of engagement (for example, drive to first or repeat purchase) 2. Bring back customers who are inactive (it is much more expensive to gain new customers than it is to re-engage existing, right?) 3. Help with list management (track segments and develop optimal content and contact strategies; like knowing when to remove inactive subscribers to protect deliverability) Inactive Subscribers Active Openers & Clickers Activation campaigns are unique in that they are specifically tailored to where your subscribers are interacting with your email and whether they are converting (typically to purchase) or not. If you can track email behavioral data to understand subscribers – Are they opening? Clicking? Buying? What products are they buying? Which devices are they using? When did they become inactive and why? – you can create trigger messages to engage them and bring them closer to your ‘best customer’ segment. First Time Buyers Repeat Customers Best Customers Bring inactive customers back 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 7
  • 8. Inactive Portion of Database Elements of an Email Activation Strategy Before developing your activation campaigns, you want to make sure you have defined objectives so you can create targeted campaigns by segment. Start with an analysis to understand how much of your database is active and how much is inactive. Your Email Service Provider should have technology solutions to help with this process, so don’t forget to reach out to them. 43% Reasons for Inactivity 6% 23% 14% Didn’t see it Too busy Not interested 1. Analyze your behavioral data to understand the different levels of inactivity and create segments based on these levels. How you define these segments will depend on your database and specific business model. 2. Once you have done some initial analysis to define segments and identify counts per segment, you will want to track the counts and movement by activation segment. This will help you assess how your database is changing and what the churn is. • Analyze who is active, who is inactive, and how inactive they are (duration). • How frequently do they interact with your email campaigns? Time of Inactivity • How recently have they done so? • Track how the counts of each segment change over time and understand where they are headed. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. For insight on potential database segments, see the Key Segments section on the next page. Activation Campaigns Early 1.877.937.6245 | Mid Late marketing@yesmail.com | www.yesmail.com pg. 8
  • 9. Segment Purchaser One-time Purchaser Inactive How you define your key activation segments will depend on your business and industry. For example, you may segment by buyers, repeat buyers, one-time purchasers (those who bought only once), and inactive segments by length of time since their last interaction. Find out as much as you can about these audiences and WHEN they become inactive so you can time your activation programs appropriately. The more you know about your customer, the more relevant your activation campaigns will be. You can further divide early, mid, and late segments based on product interest. For instance, if you know a customer hasn’t interacted in a long while but in the past they had purchased science fiction books, you could send them the top science fiction books of 2013 in your “We want you back” message. You have more to offer than just a discount. Talk about what they have missed that they might care about. Purchases Repeat Purchaser Key Segments Types of Activation Campaigns There are three different categories of activation campaigns: 1. Early activation programs – designed to engage subscribers who are NEW to your database (joined within 0-90 days). 2. Mid activation programs – designed to engage subscribers who have been inactive between 3 - 12 months. 3. Late activation programs – designed to engage subscribers who have been inactive for over 12 months. 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 9
  • 10. Early Mid Late Early Activation Programs (aimed at subscribers with database tenure of 0-90 days) This is typically your highest performing category as it consists of your newest subscribers. This is also the category that you want to keep the closest eye on. When you start to see an early drop-off in activity, you need to immediately react, which is why it is important to continually track email behavior and create appropriate triggers. Examples of early activation campaigns can include: • First purchase offers – Special offers to get subscribers to make that critical first buy. • Next purchase offers – These triggered campaigns allow you to thank customers for their order and provide a follow-up discount for their next purchase to encourage repeat buys. • “Get more from your emails” (Update preferences) – These campaigns ask the customer to tell you what they want and provides the added benefit of improving your knowledge of the customer so you can provide more relevant content. • Multi-message ‘best offer’ campaign – As the customer begins to approach 90 days of inactivity you can consider sending a multi-message best offer campaign with increasingly improved offers. If they don’t respond to ‘10% off’, send ‘15% off’ a couple of days later, etc. This gives you the opportunity to find the sweet spot or special incentive that gets them to act in the next message. • VIP/Loyalty recognition – Don’t forget to continue to reward your best customers and nudge them towards the next purchase. 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 10
  • 11. Early Mid Late Mid Activation Programs (aimed at subscribers who have been inactive for 3-12 months) These programs are designed to bring back subscribers who have been inactive for more than 3 months days, but less than a year. Some of the campaigns from above, like ‘update preferences’ and multi-message best offer emails, also work well for this category. Some additional campaign examples for this category: a. Survey – Surveys can provide a compelling reason for customers to engage and also provide you with valuable insight when you analyze their answers. b. ‘We miss you’ (come back offer) – This type of campaign is similar to a first purchase offer, but designed to bring customers back into the fold. 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 11
  • 12. Early Mid Late Late Activation Programs (Aimed at subscribers who have been inactive for over 12 months) This category serves two purposes: 1. You still want to get everything you can out of your subscribers even if they haven’t interacted in a long time. 2. Before retiring subscribers due to inactivity, you want to reel as many as possible back in. You might not get a big response out of this segment, but the value here is finding out which of these customers are actually inactive and determining whether to implement an activation program for them or remove them from your list since their disengagement with your emails negatively affects deliverability. You do not want to drop these subscribers into your base communication flow because that will cause deliverability issues due to lack of response and engagement with your messages. Keep this segment separate and consider it in Purgatory until you decide to ‘retire’ them from your database or attempt to re-engage them. You may ask, “How long should I wait until I finally let them go?” Like most things in email marketing, this will depend on your company, but if someone hasn’t opened in the past two to three years, it is safe to assume that bringing them back is not likely. Tips for developing activation campaigns for this segment: a. Proceed with caution. Start your campaigns using small segments of subscribers to gauge interest and avoid deliverability issues. b. Don’t be afraid to be personal and direct. Use first names: “Hey, Joe, we haven’t heard from you in a long time.” c. You have nothing to lose by sending the multi message best offer campaign to this segment. So don’t be afraid to send your very best offer to bring these ‘zombies’ back. 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 12
  • 13. Lifecycle Campaigns Connect and Engage Purchase Cycle Campaigns On-going Communications Where Activation Campaigns Fit in your Portfolio Welcome Transactional (order/ship/ confirmation) Early Activation 0 to 30 days Promotions Welcome Series Bond Get started with your product/tips First Purchase Offer Cross-sell Up- sell 30 to 90 days Events Activation campaigns are triggered off of email inactivity and purchase activity. This means you can email first purchase offers, as part of your lifecycle campaigns, to subscribers who have been in your database for some time, but have not yet purchased. Similarly, to drive customers to the next level of engagement, you can trigger a next purchase offer within your purchase cycle campaigns. Your base communications (on-going promos, newsletters) will run in parallel with activation campaigns and can also be targeted by activity segments as appropriate. Some marketers will send base communications less frequently to their less active segments. Survey Review Products Loyalty/ VIP Recognition Newsletters Shareable Offer On-going Relationship 90+ days Birthday Anniversary Re-purchase Offer Updates Best Customer Campaigns/ Loyalty 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 13
  • 14. ROI and Value of Activation Campaigns Early Activation Middle Activation Late Activation Average open rate Average open rate Average open rate 1.877.937.6245 | 91% Increase NO Increase 21% We recently ran a small performance analysis of five leading e-commerce brands with activation campaigns and compared their performance against Yesmail’s portfolio of over 200 email marketers (that may or may not have activation programs). We found that brands that run activation campaigns had a lower percentage of inactive customers. There are many types of campaigns that can be sent to activate customers and prospects under the early, mid, and late activation categories. For our analysis, we selected one example campaign per category to showcase the value of each category. As expected, early activation campaigns typically achieve an open rate that’s 91% above the average open rate of 15.7% for base communications. Mid activation campaigns performed in-line with base communications, while late activation campaigns yielded a 21% open rate decrease in comparison to base communications. In addition, we discovered that clients that deploy activation campaigns have a 13% higher active subscriber rate (opened/clicked in last 90 days) than typical senders. These stats should convince you to reactivate early and catch your customers before they drop off and become inactive. Keep in mind these numbers may not reflect some of the other benefits of the later activation campaigns, like list hygiene. Take the time to fully develop campaign strategies and define success metrics. You need to have realistic expectations about the type of response you will get from early vs. late activation and understand that sometimes the value of the campaign lies in gaining knowledge about your database not achieving high response rates. Decrease marketing@yesmail.com | www.yesmail.com pg. 14
  • 15. Conclusion Activation programs have become a not-so-secret weapon for achieving optimal consumer engagement. A fully developed activation strategy that uses email behavioral data can prevent customers from becoming disengaged, re-engage those who have become inactive, increase revenue from key segments, and provide valuable information about the interests and preferences of your subscribers. Normal Database Wr on g O Activ e r ffe Segmented Database Too Busy Don’t See It ted Not Interes 19% 14% 22% 13% 1 year 2 years 3 years 4 years As you develop activation campaigns, remember to begin by defining and tracking key segments over time. Find out as much as you can about your audience and when they become inactive. Create various campaign strategies and test them to learn which ones produce the best results. For many marketers, one of the most difficult parts of developing activation campaigns is having the time or analytical prowess to crunch behavioral data and create segments, but that hurdle is becoming less troublesome with technological improvements that make analysis easier. Tools that help you consistently measure and automatically segment based on email behavior, and automate early engagement campaigns, cascading promotions, best subscriber offers and late activation campaigns can be an important asset, so don’t forget to reach out to your ESP to understand how they can help. Successful activation programs should be a key part of your ongoing email portfolio - and if they aren’t, what are you waiting for? The quicker you can reach the customers who have pulled away, the higher your chances of bringing them back. Don’t forget! measure segments over time 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 15
  • 16. RESOURCES 1. http://sherpablog.marketingsherpa.com/emailmarketing/email-marketing-your-questions-aboutpersonalization-and-length/ 2. http://www.google.com/think/research-studies/thenew-multi-screen-world-study.html 3. http://www.yesmail.com/resources/whitepaper/ yesmails-email-marketing-compass-mobile-effect 4. http://www.chiefmarketer.com/site-files/chiefmarketer. com/files/uploads/2013/03/email-tech-roundup.pdf We power intelligent customer interactions. We give you the insights to recognize and understand your customer to deliver contextually relevant digital communications – while respecting their preferences and privacy. We help marketers evolve their customer relationships through intelligent interactions via technology, insights, and services in a near real-time multichannel environment. We help you compete in the age of the customer. For more information, visit www.yesmail.com. 5. http://www.yesmail.com/resources/whitepaper/endnightmares-10-email-deliverability-myths-debunked 6. http://socialbarrel.com/why-do-email-subscribersunsubscribe-infographic/51195/ 7. http://lifehacker.com/how-many-inboxes-do-you-dealwith-477186651 8. http://www.meclabs.com/training/publications/ benchmark-report/2013-email-marketing/overview 1.877.937.6245 | marketing@yesmail.com | www.yesmail.com pg. 16