September 16, 2008, 12:00 AM

Diapers changes shoppers into customers with targeted e-mails

By segmenting shoppers who abandoned shopping carts then sending them follow-up e-mails, recorded a conversion rate of 6.5%—129% higher than for any previous e-mail campaign.

Behavioral targeting is on the rise in online marketing and advertising, and is proving the tactic works well.

The baby supplies e-retailer has combined the research and marketing optimization technology of Coremetrics with the e-mail marketing services of Silverpop to create an e-mail campaign targeting one specific group of shoppers. in May segmented its e-mail recipient list to create a sub-list of shoppers who had abandoned online shopping carts. The targeting campaign delivered a 48% higher open rate and 78% higher click-through rate than any previous e-mail campaign, the e-retailer reports.

Further, the conversion rate was 6.5%-129% higher than for any previous campaign, says. And while the behavioral targeting campaign represented less than 3% of e-mail volume for the first month in which it ran, it contributed more than 10% of revenue from e-mail marketing that month.

“Our customers, the parents of active infants and toddlers, can experience constant interruptions and distractions when shopping online,” says Matthew Lindenberg, assistant director of marketing. “We were convinced that by making it convenient for them to pick up where they left off and complete the checkout process, we could capture a big portion of potentially lost sales. Coremetrics is providing the data that fuels this campaign, and lets us bring these customers back to our site.”

Coremetrics and Silverpop combine to identify the behaviors of recipients of e-mails, create segments of e-mail lists and deliver behavior-specific marketing messages.

“Coremetrics data on browsing, abandonment and purchase behavior is delivered directly to Silverpop, making relevant customer segments appear within the e-mail interface,” says Jeff Schmidt, senior vice president of worldwide sales and services at Coremetrics. “With this tight integration, customers like can create highly personalized e-mail campaigns that deliver a much higher return per e-mail than is possible with traditional e-mail practices.”

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