TowerRecords.com increases sales conversions by segmenting e-mails
By segmenting e-mailed promotional offers based on customers’ past shopping, TowerRecords.com has hiked sales conversion rates tied to e-mail marketing campaigns, says a new analysis of e-mail campaigns conducted by Jupiter Research. Targeting customized offers to customers with a history of viewing and purchasing jazz CDs, for instance, led to a 33% lift in e-mail-to-order conversions, Jupiter analyst Patti Freeman Evans says.
“Tower increases its conversion rate when target-marketing by music genre,” says Evans, who has studied the marketing methods of Tower Records and other online retailers in recent months. Tower Records, a unit of UK-based MTS Inc., uses an e-mail management application hosted by Digital Impact.
Tower also produced strong results by marketing to other segments of its customer base that opt-in for e-mail marketing messages, Evans says. For example, it also customized e-mailed offers for customers who had made a purchase within the prior 12 months and for those whose last purchase was 13-24 months ago.
Tower offered free shipping in offers to buyers within the prior 12 months and realized an e-mail-to-order conversion rate of 11%, more than a third higher than a control group of customers who didn’t receive the e-mailed free-shipping offer. Tower found that customers whose last purchase occurred 13 to 24 months before the test responded best to e-mails offering price discounts of 10%, resulting in a 76% lift in e-mail-to-order conversions.
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