Managed email campaign achieves a trade value of 426% for Envirofone
The challenge
With over 1.5 million customers in the UK and Ireland, the leading mobile phone recycler Envirofone, had a substantial database of email addresses, however the company were struggling with poor deliverability and disappointing email engagement. Envirofone appointed RedEye to develop an effective and scalable contact strategy to improve deliverability, engage more recipients and enhance customer lifetime value.
Solution
Being on online business, email is an important way for us to communicate with customers and we knew we needed an effective strategy. By implementing a strategy of engagement segmentation we were able to clean up our database and contact customers more efficiently. By integrating behavioural segmentation based on website activity and trading frequency segments, we were able to produce much more targeted campaigns through email. We are very impressed with the impact this new email strategy has had on our business. RedEye’s fully managed approach provided the support and insight we needed.
The first step in optimising Envirofone’s email marketing was to centralise and cleanse the company’s email database. This was followed by the development of a deliverability plan to significantly improve sender reputation.
A systematic approach was taken to contact each email address to assess validity, and any invalid email addresses were removed from the list. The remaining valid email addresses were then segmented based on engagement level. Fifteen email engagement segments were developed, with the top segment being most engaged users (who frequently open emails) and the bottom segment being least engaged users. Once all the data was verified and organised, a strategic email programme was implemented.
Within each email engagement segment, users were further segmented based on website engagement and on online behavioural activity (e.g. website content viewed by the user).
The segmentation techniques implemented ensured all emails were delivered to a valid email address, and each email contained relevant and timely information targeted at each individual user.
To continually improve email marketing performance an optimisation process was put in place to regularly review and refine email messaging, creative, segmentation and timing based on insights gained from KPI reporting and heatmap analysis. The recommendations put forward by RedEye were incorporated into a testing plan, backed up by ongoing monitoring and analysis.
Results
Increased Trade Value
Envirofone email communication’s trade value saw a growth of 31.7% from Q1 to 2, 65.1% Q2 to Q3 and 142% from Q3 to Q4. In Q4 2010 trade value was 426% higher than Q1.
Improved Email Deliverability
The volume of contacts who could be safely targeted without the risk of damaging sender reputation increased by 150% with deliverability remaining consistent at 99%.
Higher Click Rates
The percent of clicks from unique opens increased from 11.30% in January 2010 to 22.81% in January 2011.
Increased Customer Value
53% of Envirofone’s trade value is generated by customers that engage with email. In addition email active customers account for 3.5 times more trade value than inactive.
