With millions of customers but e-mail addresses for less then 3% of them, Cutco Cutlery worked with an e-mail address appending service to build its customer e-mail list and identify customers most likely to respond to marketing campaigns, Chuck LaBorde, Cutco’s coordinator of consumer web site activities.
Over the past several years, Cutco has updated more than 700,000 customer e-mail addresses to ensure the addresses were accurate and still in use by customers. Of those, it has identified about 20% who are active customers who now frequently respond to e-mail marketing campaigns after having been out of touch through e-mail, LaBorde says. Among the other 80% are customers who respond less frequently or are no longer active with Cutco, he adds.
In all, Cutco now has e-mail addresses for 15% of its customer base, up from 3% several years ago, LaBorde says.
Cutco is a manufacturer and retailer of kitchen cutlery and accessories, catering to buyers of gifts as well as products for their own homes. In addition to now being able to interact with these customers through e-mail, Cutco now can also benefit from the viral marketing effect of customers forwarding e-mails to friends, he adds. “We’ve been able to communicate with them and also benefit from the viral aspect of e-mail,” LaBorde says.
Cutco works with FreshAddress, a provider of e-mail appending and change of address services.
Cutco sells online through its members-only e-commerce site Cutco.com, a contact center and a network of independent sales reps. To judge the return on investment of its e-mail marketing and appending projects, Cutco matches sales across all these channels to customer e-mail addresses, LaBorde says.
Marketers can plan for the best ROI in e-mail appending projects by first trying to identify active customers without current e-mail addresses on file, then applying average conversion rates and average order values against the expected number of new e-mail addresses from these customers.
“We’ve had good ROI from e-mail appending, but we also have a high average order value,” LaBorde says.