NakedWines.com used email to maximize lifetime value and increase - - PowerPoint PPT Presentation

Session Title

JULIA FOX

Marketing Manager NakedWines.com

User Onboarding: How NakedWines.com used email to maximize lifetime value and increase app downloads by 125%

Julia Fox

Marketing Manager NakedWines.com

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A brief intro to NakedWines.com

• Connects wine drinkers directly to talented indie winemakers,

so both get a better deal

• Winemakers are funded by wine drinkers (Angels)
• Launched in U.S. in 2012 – grew quickly out of the gate
• Looked in 2014 to grow smarter – focus on quality

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What is correlated with high customer LTV?

• Acquisition channel?
• First order spend?
• Demographics?
• Product selection?
• Engagement level?
• App download status?

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What is correlated with high customer LTV?

• Acquisition channel?
• PPC
• Partner package inserts (in ecommerce purchases)
• Direct mail
• SEO
• Word of mouth/referrals
• Social

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What is correlated with high customer LTV?

• Acquisition channel?
• First order spend?
• Demographics?
• Product selection?
• Engagement level?
• App download status?

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What is correlated with high customer LTV?

• Acquisition channel?
• First order spend?
• Demographics?
• Product selection?
• Engagement level?
• App download status?

Those who organically engaged by rating or posting, and those who downloaded the app — worth 5-6x those who did not

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First Order Angel Waiting List Immature Angel Mature Angel

NakedWines.com funnel

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First Order Angel Waiting List Immature Angel Mature Angel

NakedWines.com funnel

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First Order Angel Waiting List Immature Angel Mature Angel

NakedWines.com funnel

Perfect training ground for driving desired behavior

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Before

• One welcome email
• New Angels received same campaign-based messages as

mature customers

• Engagement behavior and app download largely organically-

driven

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The 7 7 Mos

• st Chall

allengin ing Iss ssues for Mar arketin ing Departments

Most challenging Source: MarketingSherpa Marketer Practices Survey N = 434 Less challenging

1 Size of marketing budget 2 Inadequate staffing resources and expertise 3 Acting on data to improve marketing performance 4 Limited ability to develop content 5 Ability to target recipients 6 Technology 7 Design and management of experiments and A/B tests

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After

• Welcome email followed by

series of five steps:

1. Rate our service 2. Download the app 3. Rate your wines 4. Set your preferences 5. Follow a winemaker

• Incentive for completion
• Cross-promoted via email

and webstore

Start easy Set expectations Incentivize action

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Landing page

Summarize steps Replicate progress bar Incentive reminder

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Email 3 – Download app

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Last step

Conclude program Progress bar Step 5

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Onboarding email effectiveness

Ince Incentiv iviz ized em emails ls effective at t dr driv iving be behavio ior: Emails drive increased customer value by incentivizing types of engagement associated with high LTV.

Onb Onboarding St Step % Inc ncrease in in Behavior Download App 125% Rate Wine 77% Follow Winemaker 76%

!

>75% In Increase in in Engagement

Openers significantly more likely to exhibit desired behavior

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Onboarding for lifetime value (after August 2014)

Su Successful Ou Outcome: Lifetime value increased 28% after roll-out of onboarding process, via both increased profit and retention.

KP KPI Impacted % Cha hange Annualized Net Contribution +10.2% Annualized Attrition

• 13.9%

Lif Lifetime Val alue +28% +28%

!

28% In Increase in in LTV

LTV increased after implementing an onboarding email process

Top takeaway

Identify top drivers of customer quality and create process to foster desired behavior during onboarding.

By increasing behavior associated with high customer quality via an incentivized

• nboarding process, you can drive the average customer quality up.

Thank You

Julia Fox

@juliabfox