Mature Email Strategy Engages Customers Throughout the Lifecycle
Smoothly integrate with Magento.
Increase online revenue and in-store traffic.
Use geolocation segmenting and text-to-join programs
Text-to-join campaign netted 2,500 highly engaged customers in one week.
Location-based segmenting increased store traffic.
Coupon Manager allows for code control and tracking
Metrics have convinced Poundland that sophisticated email is the right approach to improving omnichannel engagement.
Value retailers like Poundland have rapid product turnover, so keeping customers informed about new items and promotions is very important. But with its old email provider, Poundland couldn’t react quickly enough. Email marketing was labour-intensive and distracting.
“Before Bronto, we were doing too much manual work,” says Paul McDermott, Head of Ecommerce. “We used a proprietary CMS for the website with no automation, so we spent too much time moving data between our ESP and the website. Almost everything we wanted to do with our email programme involved lots of manual effort.”
When it chose Magento for an ecommerce platform and launched its new website, Poundland decided to revisit its email strategy. Automation was critical, as was an email platform that would integrate seamlessly with Magento. “Our development is external, so the integration had to be fast and simple with a good level of support,” McDermott says.
Email driven marketing
revenue up 3x
compared to results
with previous provider.
With limited resources, having a partner that provides hands-on advice was also vital. McDermott says that with Bronto’s proactive approach, Poundland has been able to rapidly evolve its email strategy and bring in new features that are delivering results. “We are more grown up now,” McDermott says. “Bronto’s functionalities and capabilities have enabled us to attract customers both online and in-store and engage with them throughout their entire lifecycle.”
Poundland discovered that customers shop differently online than they do in the stores: The website has an average transaction value six times higher than in-store.
McDermott said he thought email could help drive more online revenue – and it has. “We’ve run several tests and know that the conversion rate from email is much higher than other channels,” he says. “Comparing non-bounce traffic across channels, email conversion is 60% higher than the site average, 80% higher than search, and double the conversion from direct traffic. Customers who visit the website via email are much more engaged and more likely to buy than from any other traffic source.”
The overhauled strategy included the launch of a number of new campaigns, such as text- to-join. Poundland ran a campaign on its till receipts, inviting store customers to subscribe to the newsletter by texting their email address and incentivising them with the chance to win an iPad.
In just one week, the campaign added 2,500 new contacts to the database. “We got their mobile number, and we got their email address. But we also got really engaged customers,” says McDermott. “Compared to our entire database, we see double the engagement levels when we email those contacts that joined by text. The average open rate for this segment is 54% and the click-through rate is 18%.”
Poundland has also introduced targeted emails based on postcode and geolocation, driving sales online and in-store and promoting new shop openings. “We know what customers have bought and what they are looking at, and we can now create location-based segments for that. We’ve run several tests and know that email has a significant influence on encouraging our customers to visit a store,” says McDermott.
The retailer also converts customers more effectively by providing unique coupon codes. “We’ve done emails in the past where we sent a voucher or a link to the website and then measured the impact on sales,” says McDermott. “What we found was that customers would post the codes on voucher sites. It increased sales, but we lost all trackability, and the coupons would go out of control,” he says.
The conversion rate from email is much higher than other channels. [It’s] 80% higher than search, and double the conversion from direct traffic..”
Head of Ecommerce, Poundland
By using the Coupon Manager app, the company is able to create promotional codes that are unique to each user and campaign, minimising abuse. In addition to more control, Poundland can now track and report on valuable metrics, such as redemption rate, average redemption time and revenue per coupon.
For Poundland, the research phase of choosing a new ESP was intensive. “There are lots of ESPs out there, and our research process did take us longer than we thought. But as we got further into the details, it became apparent this was time well spent,” says McDermott.
“Bronto was the right choice in key areas. The Magento integration has proved invaluable, the workflows and suite of tools have quickly raised our levels of proficiency, and the strategic support helps us keep improving. From the initial conversations and demos, through the on-boarding and training, to our regular strategy reviews, we’ve been delighted with our decision to choose Bronto,” he says.