Entertainment Magpie

Email Boosts Trading and Reseller Site

All Stories

The Goal

  • Develop a holistic view of customers
  • Better target customers with relevant offers
  • Guide customers through the funnel

The Approach

  • Integrated data warehouse with Bronto platform
  • Segmented database based on customer value
  • Used recommendations in post purchase emails

The Result

  • Email-generated revenue increased by 201% YOY on musicMagpie
  • Conversions 113% higher YOY for Decluttr
  • 8% of revenue generated by email last click

Entertainment Magpie provides its 4 million customers with a fast and easy way to trade in their media and tech for cash. The refurbished goods are then sold through channels such as eBay, Amazon and the company’s own dedicated apps and websites. The company goes by the name musicMagpie in the UK and Decluttr in the US.

Email is one of the company’s core marketing channels and its primary method of communicating with customers. “We have several large databases of customers across our brands which means we have fantastic reach for our campaigns and are able to drive significant traffic to our sites,” says CRM manager Jason Peters.

Getting to Know Customers

As the company offers different platforms for customers to buy and trade items, the main goal was to integrate data to get a holistic customer view and identify its best customers. “The ability to target the right customer through segmentation was very important for us. One of the big challenges was that there was data all over the place, so we needed a way to join that up and a platform that allowed us to put that data in and make it useful for us,” Peters says. Entertainment Magpie integrated Bronto with the company’s Pentaho data warehouse which holds customer data from multiple sources. “The database allows us to band customers by value and we can pass that information into Bronto to segment and tailor messages based on what they’ve bought and traded. We can now be confident that we are talking to the right customers,” Peters says.

The integration project has been a tremendous success. “We have been able to improve the lifetime value of our customers. We’ve also seen a 44% increase in conversions and a 201% increase in email-generated revenue YOY on musicMagpie. On Decluttr, conversions are up 113% and transactions are up 365%,” he says. “Bronto’s fantastic customisation has given us the freedom to build an approach that suits our business, grows with us and allows for us to test and automate campaigns that improve our business metrics.”

Guiding Customers to Complete Their Transaction

Once a customer completes the trade of an item on the site, the transaction itself isn’t completed until the company received the items at its warehouse. Drop-off at this point can be as high as 40% around major product launches such as a new iPhone.

“The drop-off can be for lots of different reasons. It can be that customers have come on the site to value items; they weren’t at home when the courier came to pick it up, or they selected to send it themselves but just didn’t get around to it,” Peters says.

To improve this section of the funnel, Entertainment Magpie set up a series of communications powered by feeds and tailored to the customer to remind and assist with fully completing their trade order. The email programme, which is similar to traditional retailers’ abandoned basket emails, originally included only two emails and has now been built out and improved.

The volume of triggered emails sent has risen by 400% over the last 12 months but it’s the amount of opens and click throughs that tell the real story. “Generally open rates are higher – these are customers with a lot of intent – so it can be up to 40% which is twice that of standard marketing campaigns which are around 20%,” says Peters.

Boosting Conversion With Recommendations

The company has also begun using recommendations for its store emails, rolling out a series of emails based on prior purchases and segmenting to a much narrower audience. “As an example, just this week we sent a more standard marketing email to around 150,000 subscribers and one to a segmented audience of action and adventure DVD customers of around 17,000 subscribers. The open rate was 5% higher and the conversion rate almost three times higher on the DVD group. So it’s looking like recommendations based on prior purchases are going to work well,” Peters says. As such, they will be one of the company’s major focuses going forward.

Another advantage of using recommendations is that it is quick and easy to prepare recommendations. “Using the recommendation loop feature means we have 12 or 13 templates that just took an afternoon to build,” he says.

A Platform You Can Rely on

But it’s not just the key successes that have impressed Peters about Bronto. “The big thing is the platform has been really stable. I’ve used a lot of email service providers and it’s definitely the most robust one I’ve used. We’ve had no downtime and our emails always get out of the door on schedule.”

“The big thing for me is the data side – no matter what you throw at the platform the sky’s the limit when it comes to data and that’s a big thing for me,” he says. “If you have some custom data that would really help you to improve your segmentation or targeting, Bronto can handle anything you can throw at it.”

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