Free-shipping offer boosts e-mail response rate at Frederick’s of Hollywood

Offers for free shipping have produced some of the best e-mail response rates for apparel retailer Frederick’s of Hollywood, driving up open and click-through rates above average, the retailer said at this week’s eTail 2005 conference in Palm Desert, CA.

Free-shipping offers have produced open rates of 29-37%, up from average rates of 25-30%, and click-through rates of 9.8-12.4%, up from average rates of 5-8%, said Danielle Savin, a former vice president of Frederick’s direct-to-consumer business and now an independent consultant. Free-shipping also resulted in strong conversion rates of 7.6-8.3%, she said.

Frederick’s has also realized better-than-average results with tiered offers in e-mail, such as offers that grant discounts that rise with the value of purchase. These produced open rates of 28-33%, click-through rates of 8.1-11.2%, and conversion rates of 4.6-6.2%, Savin said.

Other offers that have produced unusually good results, she added, include free items with a purchase and “private-secret sales” to regular customers.

Savin said maintaining good results with e-mail campaigns also requires strong relationships with ISPs to stay on their “white lists” of acceptable e-mail and avoid getting blocked by their filters. Frederick’s marketing staff will keep in regular monthly contact with major ISPs to let them know about planned e-mail promotions.