How to get started with Predictive Marketing?

July 01, 2013

Getting started with predictive marketing

Ever since releasing our Predictive Marketing platform (which we now call AgilOne Enterprise Edition), we are often asked how a marketer can best get started with Predictive Marketing? Two weeks ago, we released AgilOne Email Edition, which allows you to get started with Predictive Email Marketing in just five minutes. AgilOne Email Edition connects to your existing email service provider, creates behavioral segments automatically and allows you to start to differentiate and personalize email frequency and email content for each of these segments.

 Differentiate email frequency

In fact, if you do just one thing, focus on optimizing the number of emails for different customer segments.  Don't send the same number of emails to all your customers. Your Enthusiasts want to hear from you more, whereas others probably are on the verge of unsubscribing and are better left alone. By differentiating email frequency you can cut your unsubscribe rate in half, while doubling engagement and conversions at the same time. What you gain are future revenues.

 The hidden goldmine of opt outs

 When somebody opts out of your email list you lose on average 60% of their potential lifetime value. Even an unsubscribe rate of 0.5% could add up to losing half your database in a full year (assuming two campaigns a week). By personalizing the number of emails you send, you can cut your unsubscribe rate in half. Over half of opt outs happen within the first six days of subscribing to a new list. So go slow with these Newbies and warm them up slowly with your content and offers. Enthusiasts can receive more emails than you are currently sending. Let's see what is the business impact of cutting unsubscribe rates in half. Let’s assume you started with 100,000 subscribers: using predictive email marketing will now retain an additional 26,000 subscribers.  If your customer lifetime value is $100 this means an additional $0.8 million in revenues – not taking into account the revenue boost from increasing the frequency of emails to your Enthusiasts.

If you want to try out AgilOne Email Predictive Marketing for your business sign up for your free trial here.