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

eCircle 2
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

eCircle 3
Agenda

1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary

eCircle 4
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

eCircle 5
 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

eCircle 6
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

eCircle 7
Agenda

1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary

eCircle 8
Strategy – Where do we go?

Focus on immediate opportunities.

Who are the

eCircle 9
Prospect Lifecycle - Prioritisation

VISITORS

BROWSERS

BASKET ABANDONERS

SINGLE PURCHASE CUSTOMERS

REPEAT PURCHASE CUSTOMERS

eCircle 10
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...

eCircle 11
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%
eCircle 12
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?

eCircle 13
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%
eCircle 14
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?

eCircle 15
Post Purchase Programme

Week 1

• Offer – Free first service

• “How to guides”

• Driving customer back to Halfords.com

• Extra value, supporting customer

eCircle 16
Post Purchase Programme

Week 2

• Product Review

• Pulled in from existing programme

• Supporting user generated content

eCircle 17
Post Purchase Programme

Week 3

• Second reminder - free service

• Cross sell of “Bike Care” plans

eCircle 18
Post Purchase Programme

Week 4

• More focused cross sell

• Gadgets and Upgrades

• Intelligent offer options

• Clothing and Accessories

eCircle 19
Social Alerts

• User generated content

• Interaction – real terms

• Push back to site

• Product confidence

• Support conversion

eCircle 20
Welcome Programme – Sign Up

• Important first touch point

• Register at every department

• Email confirmation, then newsletters

eCircle 21
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!

eCircle 22
Agenda

1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary

eCircle 23
 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

eCircle 24
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

eCircle 25
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
eCircle 26
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

eCircle 27
Agenda

1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary

eCircle 28
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
eCircle 29
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

eCircle 30
Automation – Dynamic Content

Header
• Modular
Main Message
• CMS

• Logic

• Scalable
Call To Action
• Automation
Footer Footer
Footer
• Efficiency
Footer

eCircle 31
Hierarchical Control

eCircle 32
Agenda

1. Introduction – Halfords
2. Email past
3. A busy 6 months
4. Email present
5. What is the future?
6. Summary

eCircle 33
SUMMARY

• Customer conversion within lifecycle

• The six core disciplines

• Relevant and timely campaigns

• Evolution

eCircle 34
 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

eCircle 35