jeudi 2 octobre 2008

Emailing for luxury

In this article I will introduce you to the concept of emailing for the luxury industry.

1. Content of your emailing campaign
When creating an emailing campaign you need to pay attention to:
The From: for a Luxury Brand it is easy, using its name will be ussually efficient to have a good Open Rate.
The "Subject" of the message: you need to give the message and have people wanted to open it in 3 or 4 words. Why ? because on most of the email browsers, the end of the message is cut. People will not open an email if they don't understand the purpose of it.
The content of your emailing: again, here follows adequate ergonomy rules: people will look after and read the text first to understand the purpose of the message. Second they will look for the Hypertext links to understand where the message is going to and validate the purpose of it. Third, and only third they will pay attention to the image and then will go back to the hypertext links. So even if you want to make a beautiful images, and you have to because it is a Luxury emailing campaign, pay attention that the text is easy to find/to read and the same for the hypertext links.
Here is an example of what you can do. It is an "old" example but you will see the main principles.



2. Newsletter of event/product emailing campaigns ?
The main difference between a newsletter and a product/event emailing campaign is that the newsletter will talk about several and differents events, products, actions. It is written as an article. An event/product emailing campaign will only focus on one event or one product/collection.
In fact you should use a mix of the two: the Subject of your message should focus on one event or one product only in order to attract people and to make them quickly understand what it is about. However in the emailing you can talk about several events/products... if you want to promote or talk about several actions that your Company is doing. Just place the product/event you have promoted in the Subject of your message at the best place so that people see it first.
If you have the capacity to create personalized emailings, you can target your customer and have a better ROI if you adapt the Subject of your emailing and the content to each group of customers. The overall content will be the same for each group but what is going to be highlighted will be personalized.

You can also tell a story with your emailing campaigns. It will invite people to open it to follow the story of your character, it is another way to promote your products. Look for these 3 emails below, it was an emailing campaign we sent few years ago in the USA. People received one email per week, each one announcing the launch of a new LV pochette.



3. Efficiency of the emailing campaigns.
First of all, to analyze the efficiency of your emailing campaign you need to capture all the actions in a Database. So be sure all the links are propely tagged to measure efficiently your actions and being able to segment your database. If you have several links in your emailing, you should tagg them differently so know where the customer have clicked. Afterwards, it will help you to make a segmentation of your database using CHAID, RFM,... (I will make an article dedicated to segmentations rules soon).
Now, to measure the sales generated by the emailing campaign, but it is true for all your Direct Marketing actions, you need to create a Control Group. A Control Group is a group of customers that you will never send any emailing campaigns to. At the end of the year you will measure the total sales of the control group compared to the ones who receive your campaigns. It is, for me, the only way to measure efficiently the impact of your Direct Communication.
But, of course to have a quicker ROI, you will observe the Click Through Rate (CTR) of your campaigns (numbers of orders/numbers of clicks on the emails) and measure the attitude of the Control Group during the emailign campaigns period impact (usually one week). You will also have a look on the Opening Rate to know how many people have look at your message.
At the beginning you will see amazing opening and CTR, a 50% CTR at the beginning is very common. But, with the time, you will see that the CTR will stabilize to around 15% to 20% and you will also have bad results: 4% - 5%.
I cannot give you the number but I can assure you that the people who receive our emailing campaigns spend more than the ones who did not. It is the most powerful communication tool if you use it properly.

4. Frequency of emailing campaigns
When we see the drop of a CTR some people can wonder if the frequency of the emailing campaign is not too high.
Few years ago we made a test at LV: for 3 motnhs we have sent emailing campaigns to a group every month, to another group every 2 weeks and to a third group every week. And for us, the best Frequency Rate was every 2 weeks. Every month, we lose turtnover, every week, the unscription rate is too high. I will add that you should increase to every week during commercial events: Valentine's, Mother's Day, and of course ThanksGiving and Christmas

5. A little bit of technology
Unfortunately some emailing browsers still not read the HTML very well or do not display the images. It is the case for one of the most common Web mail platform used within Business Company: Lotus Notes. It is the reason why for all of you using this platform, you will often see big squares on your screen when opening a message. Now Emailing Companies uses the "sniffingé technology, it is a technology which allows the Emailing Compagnies to know if your Webmail can read the images/HTML or not. They will then send the appropriate format, but unfortunately this technology is not 100% reliable yet, even if it improves every year.
So really pay attention to the text of your message, because if the customer cannot see the images, it will be the only content he will be able to see.

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