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How Email Personalization Increases Revenue-Per-Send by 52X

Marketing personalization isn’t as simple as it used to be.

Today, personalizing an email is a lot more than just saying “Hi, [YOUR NAME]” at the start of the message. Your buyers likely expect that, and you have to step up your game to the next level.

Deep personalization in ecommerce relies on a combination of dynamic segmentation, smart product recommendations, triggers based on customer behavior, and much more. If you’re not personalizing your marketing to this level, you’re missing out on a huge opportunity to increase revenue.

With customer data powering your B2C marketing, you can drive far higher conversion rates for your email marketing and much higher revenue. In fact, we’ve found that if you combine personalization with behaviorally triggered emails, you can get up to 52X ROI on your email sends.

Don’t believe us? We’ve got the data to prove it.

The data on email personalization

After analyzing tens of thousands of email campaigns sent by Zaius customers over the course of the past year, we found some really fascinating data on the effectiveness of personalization.

If you send your buyers personalized emails, they are far more likely to convert. In fact:

  • For non-personalized emails, the click-to-convert rate is 4%
  • For personalized emails, the click-to-convert rate rises to 7%

But what about ROI? The data shows that personalized emails also generate far more revenue:

  • Non-personalized emails generate $0.26 per send
  • Personalized emails generate $1.77 per send

Want even more revenue per send? The real key is combining personalization with behaviorally triggered email campaigns. We found:

  • Non-personalized, non-behavioral campaigns, generate just $0.26 in revenue-per-send
  • Personalized, behavioral campaigns, generate a massive $13.62 revenue-per-send

These numbers are compelling, so why are more marketers not already doing this? The reality is that it’s difficult to access the customer data you need for these campaigns. But it’s not impossible.

How to combine personalization and behavioral triggers

The key to personalization is to understand your buyers from the very first interaction they have with your brand and beyond. In order to understand your buyers, you need to know:

  • The platforms, channels, and devices your buyers use to interact with your brand
  • What content they consume across all channels
  • The product pages they view and visit
  • Any patterns in their behaviors, such as a specific brand affinity

As a marketer, you then have to connect all the dots and unify the data within a single customer ID. Then, you can accurately track each individual buyer’s journey and have enough data to truly personalize your email marketing.

With this customer data, for example, you can dynamically segment your customers based on their behavior and trigger campaigns when they move into a new segment. You can serve content that is personalized and relevant, based on:

  • Your buyer’s purchasing and browsing habits
  • The phase in the customer journey
  • Their personal preferences
  • Their average spend and customer lifetime value

For example, if you see that a consumer has browsed skis on your site several times, you can send emails and targeted ads not just with information or discounts on skis, but also with offers to cross-sell ski gloves or goggles. If the buyer doesn’t convert on one product, you can try selling a related one that is fully personalized to their preferences. Even better, you can trigger the browse abandonment campaign to send within a specific period of time after they visited that product page.

This type of deep personalization combined with behaviorally triggered campaigns is exactly what drives serious results in ecommerce.

Ecommerce companies killing it with personalization

If you want some inspiration for how you can personalize your marketing communications to improve ROI, here are some companies that have their message on point.

When you have been searching for certain products, but haven’t made the final purchase yet, Calvin Klein sends out a specially curated email with suggested items based on your browsing behavior. Take this site search abandonment it sent out after a customer was searching for handbags. It not only suggests items for you personally, but also links directly to best-selling products in the same category.

Calvin Klein Personalized Email

Stainless steel water bottle company Hydro Flask takes a cross-selling approach to its personalized emails to customers who were browsing its site. The personalized browse abandonment email reminds the customer which product they viewed and pushes them to buy the item. It also suggests items that are frequently purchased with the ones the customer was looking at, and links directly back to the product pages to increase cross-sell opportunities.

Hydro Flask Personalized Email

This email from the popular spin bike and streaming workout service, Peloton, is another great example. It’s personalized not only based on time of the year, but also by the past classes the customer attended. These are some of their favorite instructors, and this email reminds them to tune in and ride along with the class. For a subscription service like Peloton, it’s key to keep the buyer engaged and active to ensure ROI.

PelotonPersonalizedEmail

 

Everyone wants to be treated like a person, not a bit of data fed into an algorithm. We all prefer messaging that is relevant, interesting, and compelling. That’s why truly personalizing customer communications is one of the most important strategies you can use to boost conversion rates and drive higher ROI. The better your customer data, the more personalized and customized you can make your communications, and the more success you’ll have.

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