August 29, 2007, 12:00 AM

Philosophy.com e-mail campaign wakes up a snoozing customer segment

An automated campaign by the online cosmetics retailer achieves payback on implementation cost in two months and generates an average $3.34 in sales for each e-mail delivered.

Paul Demery

Managing Editor, B2B E-commerce

A recent e-mail campaign designed to reactivate former customers into purchasing did just that for cosmetics retailer Philosophy.com Inc. Though the company did not disclose what it spent on the initiative, it says it achieved payback on its implementation costs within two months and generated an average $3.34 in sales for each e-mail delivered.

The campaign, designed and conducted with the support of e-mail services vendor Responsys, was a multi-stage program targeting special offers to Philosophy customers who hadn`t made a purchase in three months. The first phase of the campaign was an e-mail message to those customers reminding them that they had been inactive for some time and including an offer to motivate them to make a purchase. Customers who didn’t respond to that invitation received a second e-mail containing a stronger offer within a few weeks.

Both campaigns were completely automated according to business rules set by the company at the outset of the program. Philosophy.com reports program metrics that exceeded initial goals, with the e-mails getting an average unique open rate of 67% and an average unique click-through rate of 54%.

“Responsys has a powerful yet straightforward approach to e-mail marketing that has proven very effective in helping us to increase both our customer response rate and revenue,” says Karolyn Stayer, director of brand marketing at Philosophy.com.

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