2 Months of Work 1 Million in Revenue

Thanks to companies like Hubspot, Marketo and Eloqua, marketing automation, nurturing campaigns and lifecycle emails are officially “in.” Eloqua was recently acquired by Oracal for $871 million, and they have taken a relatively simple idea and made it unimaginably complicated.

Let’s keep it simple: Marketing automation is nothing more than sending a user an email. However, you are sending this email based on an if/then statement. For example, if a user does X, then send Y email. Yes, the process is really that simple. So I did this simple thing and well, created a lot of incremental revenue… Keep reading to find out how I did it. 

Here is a simple outline sample:

1: If a visitor registers for a free trial – – Then send free trial email that provides confirmation of their trial and provides some helpful tips.

2: If a visitor is in trial for 10 days – – Then then send 10 day trial email that prompts them to upgrade to a paid account.

3. If a visitor has signed up for a tier one paid account – – Then send  an email that encourages them to sign up for tier two.

I’m sure you get the idea. As you can see, the process is nothing more than sending a hyper relevant email within the right time and context to prompt the user to take action. And you know what… It works.

Next, you will see this type of marketing automation used in all sorts of situations. I have met with about half of the startups in San Francisco, and they love using the 30-day free trial of SaaS products.

When a visitor is in the trial state, the goal is to get them to upgrade to a paid account. After they sign up for a paid account, you will need to continue to “nurture” them toward using more advanced aspects of the product. Before you know it, the visitor will be a happy, long-term customer, never stops spending money  at your company, shares it with friends and family for the rest of their life.

Here is a quick and dirty example mapped out. 

Marketing-automation

More to automation than just trials and leads

Now you can use marketing automation for any process. Recently, I used it for an eCom flow. Here was our original flow before the implementation of marketing automation:

1: Visitor adds an item to their cart.

2: Visitor provides their credit card details.

3: Visitor confirms their purchase.

Anyone who lives in the eCom world knows that looking at the funnel’s drop off rate is enough to make you feel like you are going to have a heart attack. After all, 80 to 90 percent drop off rates with less than a 1 percent conversion rate is common. However, if you are a conversion guy, you can fix these things.

This is how I added marketing automation into the eCom mix:

1: Visitor adds an item into their cart.

1.5: Visitor is provided a modal box that asks them to fill out their First Name, Last Name and Email address to continue. < What we added

2: Visitor provides their credit card details.

3: Visitor confirms their purchase.

Here it is mapped out for you. 

Ecom

So what exactly is going on here? We are anticipating the fact the drop off will still happen, but we make sure to capture each visitors’ information first. By getting their contact information, we are able to nurture the user to get them to take action (purchase) on a later date.

This is an example of how we structure our emails. If the user fills out the modal box and does NOT make a purchase, the following steps will happen:

1: If the visitor does NOT make the purchase within 24 hours – – Then we send a courtesy email reminder to let them know that they have items left in their cart to purchase (with a direct link to purchase).

2: If the visitor does NOT make the purchase within three days – – Then we send another courtesy email reminder to let them know that they have items left in their cart to purchase (with a direct link to purchase).

3: If the visitor does NOT make the purchase within five days – – Then we send a third email reminder to let them know that they have items left in their cart to purchase (with a direct link to purchase).

Yup, to be honest, that’s all I did, and the actual email content was just text with almost ZERO design elements.

Did we use an automation vendor? Nope, we simply hard-coded the process ourselves to increase the speed on the execution side.

How did we come to our results? We A/B tested it. Half of the visitors saw the default experience, and the other half were provided with the modal box. We then used Test and Target to run the A/B test.

What were the findings? The findings showed a 12% increase in sales and an 11% increase of the average order value. These are epic results for only two months of work, and the best thing about all of this is that you just leave it on, and it prints money month after month, year after year.

Summary

Automation marketing definitely works, and it was cool to A/B test to get some solid findings from the efforts. Unfortunately, the world of Marketos, Eloquos and CMOs has overly complicated this marketing technique and it can end up being more of a pain to manage than a true value to measure.

Brion – More about me here brion.tw

Advertisements
Standard

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s