Your No. 1 Upgrade For 2010: Lifecycle Marketing

by Loren McDonald , Thursday, November 5, 2009

If you're already thinking about how to take your email-marketing program to the next level in the coming year, you should start by switching out your batch-and-blast program for one that uses lifecycle marketing to send highly targeted and relevant messages.

Although it might be a challenge to persuade your upper management to invest time and money to upgrade your email program, this story of a company that boosted its conversion rate 40% using segmentation and targeted messaging might help loosen up the budget.

First Challenge: Move Beyond 'One Size' Email

Fabric.com (a client), a provider of customer-measured fabrics, operates a custom-tailored business but at one time offered customers only a basic "one size fits all" email service.

The company, founded in 1999 and acquired by Amazon in 2008, had no way to customize its messages or segment its database; thus, its messages didn't reflect what it had learned about how its customers bought its products.

Its homegrown email service also didn't provide detailed reporting or analysis on email delivery to subscribers' inboxes. Without the infrastructure to capture this kind of information, you have no way of knowing how well your program is performing and can't justify seeking more budget or company support.

Strategic Mix: Segmentation, Triggers, Preferences, Analytics -- Even Broadcast

Fabric.com began by segmenting its database according to customer behavior, from most active to least active. It began sending out offers customized to each segment, intending to keep loyal customers engaged and entice back inactives.

The company also created a preference center that asked subscribers for birthdates, email and frequency preferences, and details about their sewing habits (experience level, preferred kind of sewing, whether for business or personal use).

One important aspect of this email program makeover is that Fabric.com uses the data it collected, both in its preference center and through integration of a Coremetrics LIVEmail analytics program.

Too many marketers still fail to leverage the data they collect, such as gender and birthdate.

The birthdate it collects at opt-in generates the Happy Birthday email. The analytics program generates a "Happy Anniversary" email on the anniversary of the customer's first purchase from the company.

It also sends shopping-cart reminders for those who leave the site with items still in their carts or who buy fabrics swatches but don't return within two weeks to buy the full fabric.

These are three key approaches that help get Fabric.com email messages noticed in the inbox, where yet another 20%-discount or free-shipping offer might fade into the background.


Even with the highly targeted and personalized messages that Fabric.com's email marketing team produces, broadcast messages still have a place, promoting sales, new products and "Deals of the Day" for subscribers who opt in to those lists.

Results: Higher Conversions, and Benefits Beyond Email

First, the automated lifecycle emails helped Fabric.com double its open and click-through rates and led to a 40% increase in conversions.

Next, the cart-abandonment program helped generate a 20% increase in order size on conversions from cart-abandonment reminders.

Finally, the improvements in the email program had a ripple effect in other departments at the company.

In an earlier ( http://www.mediapost.com/publications/index.cfm?fa=Articles.showArticle&art_aid=109114) Email Insider column, I suggested that one way to get greater buy-in for your email program is to go outside your department and help other departments of your company find ways to meet their goals.

Besides bringing in additional revenue, Fabric.com's triggered email campaigns also generated orders during normally slower periods. This helped the company to plan better, thanks to a steady stream of revenue, and also helped with workflow at the company's warehouse.

Until next time, take it up a notch!