Hewlett Packard purges the hopelessly profitless
EXPERT KNOWLEDGE - Hewlett Packard proved that a brand should never give up on inactive customers. A carefully staged win-back email campaign triggered a response from dormant subscribers, and highlighted those persistent non-responders who were clogging up HP's database. By Margaret Farmakis
In the world of email marketing, less almost never means more. Marketers aren’t looking to be subtle. They want to send more email, more often, to more subscribers.
However, more can sometimes mean less. As Hewlett-Packard (HP) understands, good email marketing isn’t always about aggressively growing the size of your subscriber database.
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Often, it’s more important – and cheaper – to win back your existing customers who no longer engage with your marketing messages.
Last spring HP conducted a campaign to win back its inactive subscribers featuring two personalised emails to subscribers who hadn’t opened or clicked through on recent marketing emails.
– The subject line for each message was catchy, chatty and personalised with the subscriber’s name (Margaret, are you still around?), as was the body of the first message.
– The emails’ design, art and typeface were distinctly different from other HP emails, in a bid to stand out and get a reaction from subscribers with a different approach.
– The first email included a special five per cent discount to shop; this incentive came with a clear deadline, which helped to drive traffic to the website. The second email offered a bigger discount – 10 per cent – as well as access to online classes.
– This email also provided a link to the tutorial section of the HP website, where subscribers could get ideas for printing projects and learn how to get the most out of their HP printer.
– Both emails included a text-only headline at the top in a distinctive typeface to account for images not rendering, as well as a link to access a mobile-friendly version of the email and a link to view the email with images in a web browser.
– Subscribers also received easy-to-access site navigation links, as well as links to update preferences, update an email address, view the privacy policy and unsubscribe in the footer.
The good news is that it’s easy for any marketer to follow HP’s lead. There are five simple steps:
Step 1: Dive into your data and find out what portion of your database is inactive and how many non-responders you have.
Step 2: Break the inactive segment into smaller sub-segments. You’ll need to create a win-back strategy for each.
Step 3: Test a variety of content and offer strategies. Some subscribers will respond better to discounts, others to information on new products.
Step 4: Make sure you recognize their inactive status with a special headline in the creative and a customised subject line that lets them know you want them back.
Step 5: Track your performance metrics to learn what’s worked and what hasn’t.
Step 6: Next, remove persistent non-responders from your database. If you’re not quite ready to make the cut, consider sending out a final re-permission message. This email should clearly state that the subscriber hasn’t been opening or clicking on your messages. Include a link to reconfirm that they would like to remain on your file. Be clear about how long they have to reconfirm and what will happen if they don’t; you’ll then be able to take the final step and remove them from your database.
Step 7: Take proactive steps to identify and reach out to your non-responders in the future. Create triggered messages that will engage with your inactive segments on a methodical basis, ideally after a defined period of time. If the subscriber hasn’t opened or clicked in 30 days, send them your win-back offer. If a customer hasn’t made a purchase in three months, send them a special incentive to get them shopping again.
Your inactive subscribers don’t necessarily represent dead wood, uselessly clogging up your database. They are past and future customers who were once engaged with your programme. Chances are, it will cost you less to reach out and re-engage with these subscribers than it will to acquire new ones, so don’t leave good money on the table.
Margaret Farmakis is senior director, strategic services at Return Path
HP: didn't give up on non-responders but knew which ones to purge
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Comments
marc munier - 18/08/2009
I agree with most of this, far too much time is spent looking at active subscribers, sure you have a 40% \(above average) open rate, but what about the 60% who haven't even opened your email? Focusing on re-engaging these people will pay more dividends than trying to increase engagement with already active subscribers. What I would say is that there is value in emailing people who haven't responded, as long as they aren't marking you as spam. The motivation for removing non-responders is normally to "improve response rates", what they mean is improve the % open rate, sure if you removed all non -openers you would give higher % open rates but the absolute number of people opening your email wouldn't actually change. For example I've been getting dabs.com emails for years, I rarely open them but when I want to make an electrical purchase they are my first port of call - because regular as clockwork I get an email from them once a week which reminds me what they do and who they are, and I can get that from the subject line. Great to see people talking about the "nots".
Tom Baker - 19/08/2009
Is there a copy of this miracle email anywhere?
Bart Hulst - 20/08/2009
This sounds like a great campaign indeed. Unfortunately the article does not include any results of the campaign? This might be a smart campaign but it may not have worked after all. Are there any results known?