Retailers shift their ad spending from TV, radio and print ads to digital ads.
Motorcycle apparel and equipment retailer Motorcycle Superstore gets a 21.7% boost in sales from e-mail marketing from a new strategy that uses customer behavioral data in identifying merchandise to include in e-mail messages.
Proving that customers can still be inspired to make purchases even in an uncertain economy, Motorcycle Superstore saw a 21.7% increase in revenue from e-mail marketing in the first week after launching a campaign Sept. 21 that incorporated personalized product recommendations.
With what the company calls its one-to-one merchandising, Motorcycle Superstore uses behavioral data gathered with WebTrends Inc. technology combined with its e-mail marketing application from ExactTarget to send e-mail messages with personalized product picks. These items appear on the lower part of the messages and are based on customer visiting habits over the previous two weeks.
The company has worked with the two providers for the past four years, but this is the first time it has incorporated the analytics into an e-mail marketing campaign in one-to-one merchandising.
Motorcycle Superstore sent the personalized messages to 10% of customers on its active e-mail list, which is the result of its new “One-to-one” merchandising program, while the rest received notes with company-picked products.
“I believe this feature is so effective because rather than guessing at a handful of products to appeal to our entire customer base, we can merchandise products directly related to each customer’s historical interaction with our store,” says Erick Barney, vice president of marketing at Motorcycle Superstore, No. 223 in the Internet Retailer Top 500 Guide.