LV= has implemented a groundbreaking strategy of lifecycle engagement marketing enabling the company to run targeted and personalised email campaigns dependant on how each user is engaging with the brand and where they are in the buying cycle. Email marketing now contributes to 10 per cent of all online revenues.
As an online insurer LV= found it difficult to target the right users at the right time. Unlike retail, LV=’s users would not visit the website for leisure and therefore would only click on any email campaign when needing insurance. Identifying who to target was a challenge.
Previously using cold data lists was ineffective as it usually resulted in the company emailing thousands of users uninterested in car insurance or not needing car insurance at that particular time. Not only did this produce a low conversion rate and low ROI, but was also damaging to email reputation and deliverability. LV= needed to find a way to target users specifically looking for car insurance in order to improve their email reputation and increase online sales.
RedEye helped LV= implement a customer lifecycle engagement strategy, enabling LV= to run targeted and personalised email campaigns dependant on how users are currently engaging with the brand. The strategy was implemented to convert and retain customers.
Using a single integrated database enabling a high level of segmentation, LV= created a series of automated email campaigns to target users at different stages of the customer lifecycle. Triggers included quote abandoned, saved quote, purchase abandoned, welcome and confirmation.
Using web analytics, RedEye helped LV= identify a large number of users visiting the LV= website; starting a quote, but not converting. Using this information LV= was able to produce a valuable list of hot prospects (people LV= new were currently looking for insurance and were already interested in the company; the perfect target market).
By feeding the data captured from web analytics into RedEye’s single integrated database LV= was able to segment prospects into multiple groups enabling highly targeted and personalised emails to be created for every individual prospect.
Initial segments were created based on how users interacted with the brand and how far they had got in the buying cycle. Had they abandoned a quote completely before finishing the application? Had they saved an application but not yet gone on to purchase? Had they continued to purchase insurance and then abandoned? A separate email was created to target users at each stage of abandonment. The email triggers included quote abandoned, save quote and purchase abandoned.
In addition to this emails were personalised to each individual. Each featured the individual’s name and any details they had already submitted about themselves (eg: type of car, insurance needed). Emails were also designed to provide users with an easy way to return to their quote and complete their purchase. Mandatory information included:
- Telephone numbers should the user prefer to talk to someone in person about their quote/purchase
- Links back to quote should they wish to continue to purchase online
- Offers regarding discounts for signing up online to reward the customer
- Information on the benefits of using LV= motor insurance and of being an LV= customer
- Frequently asked questions, to help solve any common queries the customer may have.
As well as creating abandoned basket programmes based on behaviour, LV= extended the email campaign to continue to engage with customers after a purchase was made. Following a conversion LV= sent each new customer a confirmation email and customer welcome email. These emails helped build brand reputation and improve customer relations.
Using RedEye’s integrated online database LV= was able to continually monitor the interaction each customer had with the brand, enabling the company to continually provide engaging emails. This enabled opportunities to cross sell products and build good customer relations helping improve customer retention.
Compared with traditional database solutions designed for direct mail outputs RedEye’s single integrated database is designed for the instant and automated deployment of individual email messages. This enabled LV= to send a large number of highly targeted campaigns at a low cost.
Between January and June 2010 the ROI for the abandoned basket campaign reached 19,000 per cent.
During the campaign open rates reached 87 per cent and click rates reached 30 per cent. The average click to sale conversion for the campaign was 10 per cent. Deliverability also improved.
Email marketing now contributes to 10 per cent of all online sales.
“Finding the right people to target is always a challenge. RedEye’s behavioual email service has helped us target the right people, at the right time, with the right information. RedEye’s single integrated database has not only allowed us to build a highly valuable mailing list of users we know are interested in the brand, but allows us to continually monitor customers and segment them in the right way. We are now able to send relevant and engaging information to every user, whatever stage they are at in the buying cycle. The strategy has turned around the way we do email marketing. Since the success of the car insurance campaign we have extended behavioural email marketing to other online services resulting in email contributing to 10% of all online revenue.” Roisin Waite, e-Commerce Executive, LV=