List Retention Analysis
links for 2007-06-18

Three Ways To Increase Email Sales

According to Kevin Hillstrom there are at least three key factors that can be managed, to grow email sales:

  • Factor #1 = Incremental List Size, Managed By Contact Frequency
  • Factor #2 = Incremental Demand Per Contact, Managed By Contact Frequency
  • Factor #3 = Demand Per Email, Managed By Number Of Targeted Versions

Incremental list size is ultimately determined by the number of email campaigns sent per week. When a customer is contacted too often, too many customers unsubscribe, driving down the total size of the email list. Strategically, management may choose to execute "x" campaigns per week. Mathematically, the number of email contacts per week can be determined by the number that still cause a healthy increase in the number of valid names available to be emailed. In the table in the original post, you'll see that two emails per week are optimal, as the email list continues to grow.

Incremental demand per contact is also important. As you increase email frequency, you will decrease the performance of any one email contact. Increased frequency will probably cause cannibalization between email campaigns. The table shows that the combination of unsubs and performance dictate two email campaigns per week.

Targeted versions of an email are important as well. Few retailers have the ability to dynamically create unique email campaigns for each customer. As a result, management creates "x" versions of an email campaign, offering different merchandise in each version. The analytics team decide which version of an email campaign the customer receives, on the basis of past purchase behavior, stated customer preferences, clickstream history, and other factors. From a staffing standpoint, it could be a challenge to produce numerous versions.
 
Read the full post here.

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