Predictive Engagement Increases Email Revenue by 25%

    The Challenge

    Sending emails at the incorrect frequency is one of the biggest causes of recipient disengagement.Traditionally the whole email list is sent the same number of emails, which is enough for some, not enough for others, and for some customers, far too much! This not only causes disengagement for some customer segments leading to attrition but also reduces the intrinsic earning potential of an email marketing database. Like many retailers, this was a recurring situation facing Hotel Chocolat  in peak sales periods.
     

    Although they had been using sophisticated segmentation, including  email engagement and RFM, issues in peak periods, like the run up to Christmas, still occurred. It was vital to maintain a high frequency of communication during these periods, without the associated risks. These include escalating unsubscribe rates, spam complaints and potential  suspension of their coveted email whitelist status. Hotel Chocolat was  convinced that there was greater revenue potential in their customer list, but were unsure of what they could do to harness the lists’ full value.

    The Solution

    As part of RedEye’s ongoing behavioural data engagement projects,  Tempo: Predictive Engagement was developed. Tempo is an advanced  automated frequency optimisation tool. As one of the pioneers of  behavioural marketing, RedEye has a wealth of experience in  developing solutions using behavioural data and customer knowledge.
     

    RedEye developed the module to allow the marketer to apply this data  and knowledge to campaign based emails, allowing the marketer to select the right timing for each email segment. This allowed Hotel Chocolat to send more emails to those customers that wanted to receive them, and fewer emails to those that didn’t. Many people use  behavioural data to power triggered emails, however this was the first time the power of this data had been unleashed across bulk campaigns.

    The Results

    Hotel Chocolat’s pre-Christmas campaign using Tempo: Predictive Engagement achieved remarkable results. Although the number of emails sent year on year was reduced by 40%, revenue from this channel increased by 24.66%. The campaign saw open rates increased by 15% to their highest ever open rate of 57% combined with their lowest ever unsubscribe rate of 0.03%.
     

    In the final quarter of 2014 Hotel Chocolat saw a fantastic ROI of 5,727%. An added benefit was the fact that during an important peak period with high mailing volumes there was no impact on deliverability and the Hotel Chocolat IP addresses survived the festive period intact, delivery speeds and inbox placement were massively improved, which for time-sensitive sends was especially important.

    We were delighted with the results from using Tempo: Predictive Engagement. The year on year increases in open rates, click through rates and most importantly, conversion far exceeded our expectations. We were particularly impressed that the use of this product not only achieved our lowest ever unsubscribe rate, but that our IP certification and white-list status remained wholly untarnished throughout!

    Hotel Chocolat

    25%

    increase in revenue from email channel

    57%

    open rates increased by 15% to this all-time high

    5727%

    ROI for this Q4 campaign

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