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

User Onboarding: How NakedWines.com used email to maximize lifetime value and increase Session Title app downloads by 125% JULIA FOX Marketing Manager NakedWines.com

Julia Fox Marketing Manager NakedWines.com

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 3

What is correlated with high customer LTV? • Acquisition channel? • First order spend? • Demographics? • Product selection? • Engagement level? • App download status? 4

What is correlated with high customer LTV? • Acquisition channel? • PPC • Partner package inserts (in ecommerce purchases) • Direct mail • SEO • Word of mouth/referrals • Social 5

What is correlated with high customer LTV? • Acquisition channel? • First order spend? • Demographics? • Product selection? • Engagement level? • App download status? 6

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 7

NakedWines.com funnel Angel Immature Mature First Order Waiting List Angel Angel 8

NakedWines.com funnel Angel Immature Mature First Order Waiting List Angel Angel 9

NakedWines.com funnel Angel Immature Mature First Order Waiting List Angel Angel Perfect training ground for driving desired behavior 10

Before • One welcome email • New Angels received same campaign-based messages as mature customers • Engagement behavior and app download largely organically- driven 11

The 7 7 Mos ost Chall allengin ing Iss ssues for Mar arketin ing Departments Most 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 Less challenging N = 434 Source: MarketingSherpa Marketer Practices Survey 12

After • Welcome email followed by series of five steps: Set expectations 1. Rate our service Incentivize action 2. Download the app 3. Rate your wines 4. Set your preferences 5. Follow a winemaker Start easy • Incentive for completion • Cross-promoted via email and webstore 13

Landing page Incentive reminder Replicate progress bar Summarize steps 14

Email 3 – Download app 15

Last step Progress bar Step 5 Conclude program 16

Onboarding email effectiveness >75% In Increase in in Engagement Openers significantly more likely to exhibit desired behavior Onb Onboarding St Step % Inc ncrease in in Behavior Download App 125% Rate Wine 77% Follow Winemaker 76% 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. 17

Onboarding for lifetime value (after August 2014) 28% In Increase in in LTV LTV increased after implementing an onboarding email process KP KPI Impacted % Cha hange Annualized Net Contribution +10.2% Annualized Attrition -13.9% Lif Lifetime Val alue +28% +28% Successful Ou Su Outcome: Lifetime value increased 28% after roll-out of onboarding ! process, via both increased profit and retention. 18

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 onboarding process, you can drive the average customer quality up.

Thank You Julia Fox @juliabfox