Halfords: Intelligent Lifecycle Marketing
19th October 2010
Agenda
1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary
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Halfords – Life on the Move
Unique service offer and the natural destination
• UK’s leading retailer of automotive and leisure products
• 1 in 3 bikes sold in the UK is sold by Halfords!
• Strong brand qualities that help customers enjoy Life on The Move
• 469 Stores + [223] Auto centres nationally
• Differentiating business through service
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Agenda
1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary
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Halfords customer lifecycle: April 2010
Acquire Convert Grow Retain Reactivate Intensive Care
BAU/Offers
Product
Review
Purchase Repurchase Reactivate
Welcome Loyalty Special Treatment
Stimulation Stimulation Purchase Cycle
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Opportunities for email interaction: April 2010
RETENTION
Welcome Engagement sequence Browse triggers / stimulate purchase Social alerts Abandon cart
GROWTH
CONVERSION
Flyers Lapsed
Cross-sell Product Review Re-purchase trigger VIP programme (birthday/sale) open/click/purchase
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Email Marketing Maturity: April 2010
Strategy
100
Appreciation of importance of strategy, but not
employed. Conscious of growth opportunity.
Where to start?
50
Segmentation & Personalisation
Basic. Use of opens and clicks
Layout and Content
0 Consistent, clear creative, strong brand focus,
List Growth
Harvesting email addresses in store. Online data
capture – competitions, promotions.
Automation & Efficiency
No event/time based triggers
Analysis
High level KPI analysis. No optimisation
EMMA Rating = 0.56
programme. No conversion tracking
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Agenda
1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary
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Strategy – Where do we go?
Focus on immediate opportunities.
Who are the
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Prospect Lifecycle - Prioritisation
VISITORS
BROWSERS
BASKET ABANDONERS
SINGLE PURCHASE CUSTOMERS
REPEAT PURCHASE CUSTOMERS
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Converting Browsers to Purchasers
• First opportunity identified
• High volumes
• Coremetrics partnership – intelligent offer
• Scalable to other triggered programmes
• Potential for further refinement – segmentation by product
We generated some interesting results...
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Product Browse - Monthly Example
3rd
Alternative Browsed
2nd
Product
Alternative
6.2%
10.5% 25.7%
1st
Alternative
21.0%
Different
Navigation Product Product
Review
8.8% 20.7%
7.1%
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Prospect Conversion - Abandoned Basket
• Prospects have shown propensity
• Didn’t buy, but came close
• Importance of product category
• Scale - applies to every Halfords product
• Track and measure
How does this compare to Browsers?
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Abandoned Basket - Monthly Example
2nd Alternative
3rd
st
2.7% Alternative Abandoned
1 Alternative Product
Navigation 4.0% 2.5%
8.4% 40.6%
Product
Reviews
16.7%
Different
Product
25.1%
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Converting single purchase to multiple purchase
• Targeting specific customer types based on purchase history - Bikes
• Encourage next purchase – incentive
• Intelligent Offer - relevance
• Touch Points - conversion and service message
• Cross sell, brand reinforcement, lifestyle reminder
• Relevant presence beyond the first sale
...how does it work?
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Post Purchase Programme
Week 1
• Offer – Free first service
• “How to guides”
• Driving customer back to Halfords.com
• Extra value, supporting customer
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Post Purchase Programme
Week 2
• Product Review
• Pulled in from existing programme
• Supporting user generated content
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Post Purchase Programme
Week 3
• Second reminder - free service
• Cross sell of “Bike Care” plans
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Post Purchase Programme
Week 4
• More focused cross sell
• Gadgets and Upgrades
• Intelligent offer options
• Clothing and Accessories
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Social Alerts
• User generated content
• Interaction – real terms
• Push back to site
• Product confidence
• Support conversion
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Welcome Programme – Sign Up
• Important first touch point
• Register at every department
• Email confirmation, then newsletters
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Welcome Programme – Preference Centre
• Profile Building
• Stored in eC-messenger- access
• Drives relevant marketing
• Engine room for all campaigns
MOT due in Keen
May Cyclist
We’ve got
3 kids!
Interested in
Everything!
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Agenda
1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary
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Opportunities for email interaction: Today
Welcome Engagement sequence Browse triggers / stimulate purchase Social alerts Abandon cart
RETENTION
GROWTH
CONVERSION
Flyers Lapsed
Cross-sell Product Review Re-purchase trigger VIP programme
(birthday/sale) open/click/purchase
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Halfords customer lifecycle: Present
Acquire Convert Grow Retain Reactivate Intensive Care
BAU/Offers Post-Purchase
Website Sale Flyer
browse
trigger
Product Review
Abandon
Basket
Social Alerts
Welcome
Purchase Repurchase Reactivate
Welcome Loyalty Special Treatment
Stimulation Stimulation Purchase Cycle
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Email Marketing Maturity: Today
Strategy
Tactical, medium and long term strategy in
100
place. Regularly reviewed.
Segmentation & Personalisation
Welcome Programme, Preference Centre, 50
Recency
Layout and Content
0
Focus for Q4 2010, post analysis
List Growth
Mobility and tactical data capture. Further
Coremetrics tagging
Automation & Efficiency
Abandoned , Browsed and Post Purchase
Triggers
Halfords October 2010
Analysis EMMA Rating Industry Average
Monthly, quarterly reviews and process of 1.14
Best Practice
optimisation
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Email Marketing Maturity: Before and After
Strategy
100 100
Segmentation &
Personalisation
Analysis
50 50
0 0
Automation Layout &
& Efficiency Content
List Growth
Halfords October 2010
EMMA Rating EMMA Rating Industry Average
0.56 1.14
Best Practice
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Agenda
1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary
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Customer Behaviour: Further Segmentation
Returning Customer Fully Engaged High value
customers
Customer rarely shops at Halfords but made a No incentives needed.
0-1 (Regular shoppers might benefit from
recent purchase.
customised timing of campaigns or introduction
to new products).
Last
Order
(Months 2-4 Not a Customer Lost
ago)
Does not shop at Halfords or respond to Once regular customer, no longer shops.
offers. Not online, or lost to a competitor.
Might be engaged by competitions / surveys
not directly linked to products.
5 or
More
0-1 2-3 4 or More
Orders / 6 Months
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Testing and Optimisation Programme
Analysis – which segments
KPI benchmarking Subject Line
Goal definition and priority
Scheduling
Implementation and measurement Eye Tracking Multivariate
Continuous Improvement
Complex testing programmes require control
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Automation – Dynamic Content
Header
• Modular
Main Message
• CMS
• Logic
• Scalable
Call To Action
• Automation
Footer Footer
Footer
• Efficiency
Footer
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Hierarchical Control
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Agenda
1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary
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SUMMARY
• Customer conversion within lifecycle
• The six core disciplines
• Relevant and timely campaigns
• Evolution
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THANK YOU
UK
eCircle Ltd
14 St John‘s Square
London
DE / AT / CH FR IT
EC1M 4NL Nymphenburger Str. 86 2, Cité Paradis Via San Gregorio, 40
80636 München 75010 Paris 20124 Milano
T: +44 (0)20 7618 4200 T: +49 (0)89 / 120 09-600 T: +33 (0)1 53 80 48 00 T: +39 02 30 87 620
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