Data Collection Strategies for Lifecycle Messaging
Account Development Manager
The effectiveness of your targeting and personalization efforts are only as good as the data used
to power them. So in this article, we will focus on helping you collect the data you need to deploy
lifecycle campaigns that evolve as customers' or subscribers' preferences and behaviors change
over time. We'll begin with "stated preference" data.
Stated Preference Data
You're probably already asking subscribers to tell you about themselves and their interests. That's
the information we call stated preference data. Here at BlueHornet, we've noticed that email
marketers tend to fall into one of two categories: There are those who don't collect adequate
preference data to help them create relevant campaigns and those who don't effectively use the
preference data they've got. So let's look at both of these issues, in addition to some other related
points, as part of an overall stated preference data collection strategy that can facilitate better
lifecycle messaging.
When it comes to collecting the right data, we can only provide the most basic guidelines, like first
name, last name, email address, and postal code. That's because for effective lifecycle messaging,
you'll need to ask yourself and your team questions to inspire a preference data collection strategy
that is unique to your business and/or subscribers' needs. Here are some conversation starters:
- What are your overall email marketing objectives? If you want to generate more online sales
but aren't using site or purchase behavior data in your email initiatives yet, you could simply
ask new subscribers how many times they purchase from your website each year, then use this
data to drive and measure increases in purchase frequency. If you want to increase newsletter
open rates, consider asking new subscribers about other email newsletters they enjoy.
- How do subscribers engage with your products or services? Depending on your answer, you
can provide interest options for them to choose from, then you can send content targeted to
those interests.
- Action Item: In addition to specialized preference data targeted to your business needs, you may also consider subscription management. If you send multiple emails, for instance a quarterly newsletter,
monthly special offer emails, and weekly tips, give subscribers the option to manage each of
these subscriptions individually, adding and removing at will, rather than opting out of your
entire program.
Allowing subscribers to select their preferences is a straightforward and effective way of figuring out the kind of information that each unique subscriber wants to receive from you. Segmenting by interest allows you to send manual or triggered campaigns based on the feedback you've received directly from your subscribers. But be careful! Although the sign up page may be your best opportunity to get subscribers to tell you why they are interested in your company, it might not be the first place to start.
Long and complicated signup pages usually mean fewer people will complete them. We've found that email marketers can achieve better list growth by collecting only the basics up front—first name, last name, email address and opt-in permission. Often, the time to collect additional preference data comes after the opt-in process is complete.
- Action Item: Start by collecting very simple information on multiple pages of your website — perhaps just first name and email address. Then, take subscribers to your preference page afterward.
Remember, if you are going to ask your subscribers for information, make sure to use it. Making preference selection optional and setting expectations by letting subscribers know what they can expect are best practices BlueHornet supports. A subscriber may be leery to fill in their mailing address and birthday if they don't know you are going to mail them something special on their birthday! Additionally, a good preferences page will allow subscribers to uncheck interests and change their preferences easily, without opting out of the program entirely.
Action Item: Monitor and test the effectiveness of your data collection strategy. Don't be afraid to
make changes.
Managing subscribers' stated preferences can be a little like keeping your wardrobe up to date. Sure, that ivory colored tuxedo you bought for your sister's wedding five years ago probably seemed like a better investment than renting a tux at the time, but aside from the fact that styles have changed, it may no longer fit quite the way it once did. Chuck it. On the other hand, those leather shoes you had custom made in Italy simply need to be re-soled and polished—with a little freshening up, they'll give you many more happy miles. Likewise, review your data once each season. Some data may need to be updated, some might need to be stored away for later use, and some may need to be tossed altogether.
- Action Item: Include an "Update Your Preferences" link in the footer of your emails. Or, develop
an automated promotional email that sends a discount or special offer to subscribers who update
their preferences. Set the promotional email as a recurring message that triggers automatically once
a subscriber has been part of your email program for one year. The discount or offer code can be
delivered via the "thank you" page subscribers get once they submit the updated form data.
As you can see, it's easy to improve your stated preference data collection strategy right away, without sophisticated backend integration or sky-high budgets. What's more, asking the right questions at the right time is an excellent way to show your subscribers that you respect their time, value their input, and want to enter into a long, mutually beneficial relationship with them. So put quality data into your LCM efforts—and get quality results back out, as well.
Next, let's take a closer look at two other areas where you can optimize your data collection strategy to further improve your lifecycle messaging capabilities: Observed behavior data (through email and website engagement) and customer purchase data.
Observed Behavior Data
To get a more complete picture of customers' and subscribers' preferences and needs, it's important to gather information about the things they show you that they are interested in. That's what we'll be diving deeper into in this section, as we take a look at "observed behavior" data.
When your subscriber completes a sign up form on your website or a survey you send them, they're telling you things they are interested in at that time. Stated preference data is extremely important, but it can change. We know that the way a customer or subscriber engages with your brand at the beginning of the relationship is different than it is later on (see below). And since a core concept of lifecycle messaging is matching your email campaigns to customers' evolving needs, you can see why both sources of data—stated and observed—must work in conjunction for the greatest relevance and conversion rates.
By definition, observed behavior data is a very broad category that can cross multiple channels. JupiterResearch projects that email marketers will receive four times better results when campaigns reflect
customers' email behavior. So let's look at how to optimize your use of email behavior data to send relevant lifecycle messaging campaigns to your subscribers and customers.
Open Data:
You can search and segment subscribers who have and have not opened emails, then send relevant follow-up
messages to them. For example, if someone opened an email about a trade show you'll be attending, you may want to send them a follow up email inviting them to an after-show gathering you are hosting. Or, you could segment your non-openers and send them a special registration discount code to encourage their engagement or attendance.
Clickthrough Behavior:
Take the concept above to the next level by using clickthrough behavior. You can automatically place subscribers in assigned segments if they click on a particular link in your email. This allows you to get quite strategic and very relevant when it comes to your follow up emails.
Date Joined:
Organize subscribers based on the date they joined your program. Use these key dates to send welcome streams or other messages based on the lifecycle of their membership into your program.
- Action Item: Open, click, and conversion rates for new subscribers are at their peak during the
first 30 days they join your email program. Devise a welcome campaign strategy to drive sales,
build brand equity, gather observed behavior data, and strengthen the relationship during those
first critical 30 days.
Analytics and Purchase Behavior
As you collect data from your subscribers from stated preference and observed behavior data, a picture of your audience will begin to take shape. Remember, the effectiveness of your targeting is only as good as the
data used to power it. That said, let's take a look at perhaps the most valuable data set of all — purchase behavior — and how it can drive your targeting efforts using web analytics.
Your web analytics tool is equipped to help you identify product interest, purchases, abandonment, etc. Incorporating web analytics data into your email marketing strategy will allow you to target people as they interact with your brand via your website. If you collect data like last product purchased, last product viewed, last product abandoned, etc., you can create a targeted list of subscribers to whom you can send a very relevant, timely email. You are uniquely positioned to market to your most profitable customers at the time that is right for them. If a subscriber clicks on a link to your sale items from an email, and purchases from that interaction, you can follow up with an additional email to that person when similar items become available. Or maybe they place items in their cart and then abandon the site. You can follow up with an email to offer a discount, free shipping, or some other incentive to encourage them to purchase the items abandoned.
Note that you should strive to strike a balance when planning your strategy around these types of emails. Subscribers can feel they are being "watched" if emails are immediately sent promoting similar items just after their purchase. They can also begin to expect enticing offers if they simply abandon their items before checkout. Be selective in what you send and when you send it. A good strategy will allow you to capitalize on opportunities pertaining to your most valuable customers, or target customers that frequent your site less often in an attempt to create more steady return visits.
We've moved from simple data collection into more complex methods over the course of this article, but hopefully it has been helpful to see just how many ways you can incorporate lifecycle messaging into your overall online marketing efforts. A key to lifecycle messaging is understanding that your email campaigns need to evolve as your customers' preferences and behaviors evolve. So keep your initiatives fresh, enticing, and timely, and you'll see tremendous success.
