5 examples of data-driven optimalization choices

5 examples of data-driven optimalization choices

StrategicOctober 30, 2024

When you think of e-commerce marketing, you think of huge amounts of data. Data from customers, such as order history, first name, last name, place of residence. But also data from campaigns, such as conversion rate, click rate and delivery rate.

The dashboard just got an upgrade. What exactly are you doing with this data? And more importantly, how do you use this data intelligently? In this blog you will read five examples about campaign optimization through data. Think about conversion, order turnover, open ratio, click through rate and delivery rate.

Optimization based on conversion rate

Conversion rate is one of the most important metrics within any marketing campaign. It measures how many email recipients end up taking the desired action, such as buying a product, downloading a white paper, or registering for an event. Chart the conversion rate and get direct insight into which campaigns are effective and which are not.

A well-performing campaign aims to send the right message to the right audience at the right time. And thereby achieve conversion. This is where data analytics comes in. Analyzing customer behavior and engagement within email campaigns offers opportunities to optimize and target campaigns further. Are you seeing a lot of conversions in a particular email flow or marketing automation? Compare this campaign with a campaign that generates few conversions. Why is there a difference? What draws your customers over the line? Consider:

  • Are you offering a high discount
  • Are you working with a discount code
  • Are certain images different or more visual
  • Is the mailing itself attractive enough Look at conversions this way and see that there are numerous areas to optimize. Do this regularly and you will see that the conversion per campaign will go up.

Optimization based on average order turnover

The average order turnover of a webshop is a KPI that is often top of mind for e-commerce entrepreneurs. Increasing this average order turnover has a direct effect on the webshop's profitability. Reloadify helps gain insight into the performance of campaigns, including the average order turnover per campaign. If this turnover differs from what you expect, it's time to dig deeper. Here are some questions to help you understand why the average order turnover is lower than hoped for.

- Which products were ordered? The type of products ordered during a campaign can have a big impact on the average order turnover. Are the products ordered low-priced by nature, or are they heavily discounted? You may have offered lower-margin products or promoted heavily discounted items during the campaign. This may depress the average order turnover.

- Which products were promoted? If your campaigns focus on lower-value products, this will result in lower average order sales. It may pay to shift the focus to products with a higher order value. Try to vary the campaigns you run: think bundle deals or special promotions for premium products.

- Which customers have ordered? Analyse carefully which customers have ordered something. Are the orders coming from repeat customers who are more likely to place smaller orders, or have you attracted new customers who spend less? New customers often tend to place a smaller order first. Therefore, consider targeting campaigns to existing customers or create a strategy that encourages new customers to increase their cart, such as giving a discount for higher spending.

Increasing average order turnover requires insight and analysis. Pay attention to which products are bought. And optimize campaigns accordingly.

Optimization based on open ratio

The open ratio tells about whether your communication is actually read by recipients. If your e-mails are not opened, all the effort put into them is actually wasted. That is why it is useful to pay attention to the open ratio.

What is a good open ratio?

A healthy open ratio for a well-maintained database is between 25 and 30%. This means that the relationship you have built with customers is strong enough to encourage them to open your emails. But what if your open ratio starts dropping? Or if it never reaches 25% at all? Then it's time for action.

Tips to improve the open ratio:

Optimize subject line and pre-header

The subject line is the first thing a recipient sees. Experiment with different variants to discover which is most appealing. Make it create curiosity, but keep it short and to the point. The pre-header, the piece of text you see next to the subject line, can be extra convincing for the recipient to open the e-mail. Play with this to get the maximum effect.

Segment the mailing list Not every customer is interested in the same content. By segmenting the database based on behaviour, interests or purchase history, much more targeted e-mails can be sent. The more relevant the content, the more likely the e-mail will be opened.

Personalize the e-mails Use personalized elements, such as the recipient's name, in both the subject line and the content of the e-mail. This creates a sense of engagement and can significantly increase the open rate.

Optimize sending time Test different days and times to see when your target audience is most active. For some audiences, an email in the morning may work better, while others prefer to open messages in the evening. A/B testing helps give insight into this.

Keep the mailing list clean Frequently remove inactive subscribers from your list. A smaller but more engaged database will result in a higher open rate, as active users are more likely to open your emails.

Test with emojis in the subject line Depending on the target audience, emojis in the subject line can attract attention and increase the open rate. Just make sure you don't overdo this and that it suits your brand.

Create a sense of urgency Using terms such as ‘limited offer’, ‘today only’, or ‘don't miss out’ in the subject line can make recipients more likely to open the email immediately.

Ensure recognition Use a recognizable sender name and e-mail address. Recipients are more likely to open an e-mail if they know who the sender is and trust the sender.

By paying attention to these details, you ensure that e-mails are opened more often.

Optimization based on click through ratio

Without website traffic, sales remain stagnant. Do you see that your click ratio is declining? Then it's time to optimize. Improving CTR means getting more site visitors (and more conversions) for the same investment. The click through rate lets you know what the target audience finds interesting. This could be a strong subject line or a particular colour button. With that information, campaigns can be adjusted for better performance. More tips for optimizing click through rate can be found below:

1. Drive click behaviour with subject line

The subject line is often the first thing the target audience sees. A strong, thought-provoking subject line attracts attention and invites click-throughs. Test different variations of subject lines to see which perform best.

2. More clicks with one primary call to action

Too many options can confuse visitors and cause them not to click at all. Provide one clear and eye-catching call to action (CTA) per campaign, so the visitor knows exactly what is expected of them.

3. Load links with more clicks in a newsletter

Use strong, action-oriented language in links. Avoid generic terms such as ‘click here’ and opt for descriptions that emphasise the value of the link, such as ‘Discover our latest offers’ or ‘Download the free guide’.

4. Segmenting for more clicks in an e-newsletter

By segmenting the target audience and tailoring content to specific interests or behaviour, you end up sending more relevant emails. The more relevant the message, the more likely someone will click.

5. Mobile-proof design

More and more people open e-mails and view websites on their smartphones. Make sure the design is mobile-friendly. With clearly readable text, easily visible buttons and fast-loading images.

Delivery rate-based optimization

Optimization goes beyond segmentation and personalization in email campaigns. One of the factors to consider is the delivery rate. This is the percentage of emails that actually arrive in the recipient's inbox. It doesn't matter how good your campaign is. If the email does not reach the customer, the effort has been for nothing. Email delivery, therefore, refers purely to the fact that an email has been sent and received by the mail server.

Common reasons for failed email delivery

There are several reasons why an email does not arrive in the customer's inbox, such as:

Soft bounces. This happens when an e-mail can be sent but cannot be delivered. Causes include a full inbox or an e-mail message that is too large.

Hard bounces. This means that the e-mail could not be sent at all. This happens due to errors in the e-mail address, such as typos or a non-existent domain.

Dropped. An e-mail may be rejected by the recipient, often because of spam-like content or because the recipient has previously unsubscribed. Or, because an e-mail has bounced three times in a row.

https://www.reloadify.com/en/hub/comply-google-strict-anti-spam-policy-with-reloadify

How do you optimize the delivery rate?

A delivery rate above 95% is considered healthy. A lower delivery rate may indicate that your email reputation needs improvement. Some steps to achieve this are:

SPF, DKIM, and DMARC: These protocols help prevent emails from being marked as spam. You add SPF and DKIM with Reloadify by validating your CNAMES. DMARC you add yourself.

Check content: Use tools like mail-tester.com to test emails for factors that could contribute to a low delivery rate, such as poor DMARC configuration or spam-sensitive content.

By regularly focusing on optimizing the delivery rate, you ensure that campaigns are not only relevant but actually reach customers' inboxes.

Start optimizing today

Ongoing testing and optimization is crucial for getting the best results. This means running A/B tests to compare different versions of your emails. Test different subject lines, call-to-actions, and layouts. Segment by target groups and achieve the highest open rate. Adjust the campaign based on data rather than gut feeling. This significantly increases your success in e-commerce marketing. Are you ready to start working with these KPIs? With Reloadify, you optimize everything in one go! Then schedule a no-obligation demo or try Reloadify for free for 14 days.

StrategicOctober 30, 2024
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