Canada Post/ UniteU/ FreshAddress Webinar

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CASL, Omnichannel Marketing, and the Pre-Holiday POS Mishaps to Avoid Mike Montrose VP Marketing and Sales Miranda Paquette Manager, Compliance & Privacy Michael Dreyfus Business Development Manager

Transcript of Canada Post/ UniteU/ FreshAddress Webinar

CASL, Omnichannel

Marketing, and the

Pre-Holiday POS

Mishaps to Avoid

Mike Montrose

VP Marketing and SalesMiranda Paquette

Manager, Compliance & PrivacyMichael Dreyfus

Business Development Manager

Growing your business with Canada Post

Fall 2014

Ecommerce is exploding – 30% of Canadians buy online at least 1x per month

By 2018, the average Canadian online spend is expected to increase by 37%

In 2013 – Canada Post delivered over 150 million parcels – with unmatched reach to

35 million Canadians

Holiday 2013 we delivered 1 million parcels in a single day… 9x’s.

A milestone achieved just once in the previous year.

Canada Post Ecommerce Growth

Key Industries 2014 Parcel Volume Increases

FashionHouse wares

Health & Beauty Electronics

25% 28% 12%10%

Source: YOY parcel volume growth – 2013 to 2014. Data derived from 2,014 ecommerce customers within 9 key industries

…versus all of Canada 20%

Toys & Hobbies

23%

Canada Post Ecommerce Growth

Top Growth Cities 2014 Parcel Volume Increases

This active audience represents the greatest opportunity for you to drive

ecommerce revenue

The Power of Data

Ecommerce buyers are:•high income•Married with children•University Degree•Own home, single or semi, and newly built

•Target the top 10 active percentile.

8

Male

37%

Female

63%

All Online Buyers Recent Online Fashion Buyers

What are Their Demographics?

Canadian online buyers demographics:

All stats are from Canadian e-Shopper Experience, Canada Post Study 12-209, September 2012.

1%

7%

15%

18%

19%

23%

17%

6%

10%

17%

20%

27%

19%

Prefer not to say

65+

55–64

45–54

35–44

25–34

18–24

EducationAge

2%

12%

38%

26%

21%

2%

14%

42%

23%

18%

Prefer not to say

Professional/Post

graduate degree

College /

University

Some College /

University

High school or

less

9

P3M Online Buyers

P3M Frequent Online Buyers

What are Their Demographics? Frequent online buyers tend to be younger and more educated than the average

online buyer.

What They Think About Shopping

81%

80%

75%

69%

65%

62%

58%

57%

42%

Researching/browsing to compare prices is easier online

than in physical stores

More likely to make additional purchases from online

retailers that offer special products or shipping discounts

or rewards

Browsing online provides a greater selection than physical

stores

Shopping and buying online is more convenient than

physical stores

A negative experience with an online retail site will cause

unwillingness to visit their physical store

I appreciate getting purchases immediately from physical

stores compared to buying online and waiting for shipment

More likely to make additional online purchases from

retailers who remember my purchases /make suggestions

based on previous purchases

Buying online is less expensive than buying in physical

stores

I appreciate the personal in-store service compared to

having to research products/ services online 10

51%

55%

60%

67%

76%

79%

81%

82%

82%

82%

51%Flexibility to re-route package

Flexibility to choose delivery date

Availability of live customer service

Number of delivery options offered

Ability to create an account to track past purchases

Ease of making returns/exchanges

Online tracking ability

Clear returns policy

Variety of brands/products

Ease of check-out

Free/discounted shipping

What Online Buyers View as Important

11

Variety of brands and products is viewed just as importantly as free or discounted

shipping. Canadians don’t have access to many U.S. brands, and a number of

shoppers seek to access them internationally.

34%

39%

43%

44%

55%

63%

The package will not be safe before I arrive home

Having to go to another location to pick it up

The package may be damaged en route to me

Having to be home when the package is delivered

My ability to assess the quality of the item

The shipping costs will be too high

What Concerns Canadian Online Shoppers?

12

How They Want to Receive Communications

13

Interest in Receiving Promotional Items

% rating 5, 6, or 7

47%

57%

72%67%

72%

39%

60%63%

57%

66%

Newsletter

communications

Product catalogue Notices of

upcoming sales

Points or reward

program

Sales offers and

coupons

Digital Physical

There’s high interest in receiving more information from online fashion retailers where they

have made a purchase. Digital holds the edge, but physical holds its own. Not surprisingly,

there is a slight preference for receiving catalogues physically.

Canada’s Anti-Spam Legislation

Overview Presentation

CPC Compliance TeamFebruary 2014

•What are the Rules?

Commercial Electronic Messages = CEMs

• Rules apply to:

Commercial electronic messages (CEMs)

Sent to

electronic addresses

What are the Anti-Spam Rules?

•Prohibited to send CEM unless:

The person consents (can be implied or express)

The message includes:

• identification information

• contact information

• unsubscribe mechanism

What are the consent rules?

Can be implied based on existing business relationship

Express (opt-in)

Can be orally or in writing but business has burden of proof

No consent via email after the legislation is in force

Must get separate consent for each activity

Exceptions that may apply• Seven exceptions to CASL likeliest to apply to

marketing activities:1) Current business relationship (b2b)2) Business inquiries or applications3) Response to request or complaint4) Conspicuous publication*5) Existing business relationship* (b2c)6) Disclosed email addresses*7) Referrals*

• *time limited and/or must still comply with content requirements

Four steps to be compliant

1) Format and content changes to outbound messages:identify all senders

include contact information

include opt out

2) Consumer re-permission or purge

3) Use of third-party data

4) Backend data management

Data Management

Backend data management requirements:

Record consents

Capture time limits for all implied consents

Create a 1-click unsubscribe function

Capture unsubscribe requests and action w/i 10 days

Contact info link active for 60 days

• Examples

What’s Wrong With This Email?

What’s Right with this Email?

Express Consent

Dear Sam Smith, Canada is set to enact new anti-spam legislation which, when it comes into force, will regulate the distribution of electronic messages. To comply with this new law, Santa Claus Inc. is required to obtain your consent in order to continue to send you e-communications from our firm. This may include newsletters, publications, announcements, invitations and other news or information.

Please use the button below to confirm your consent to receive emails and other electronic exchanges, as outlined above, from Santa Claus Inc.

If at any time you would like to withdraw your consent or update your profile and preferences, you can do so by clicking here or by contacting us directly.More information on Canada’s new anti spam law can be obtained by visiting: http://www.crtc.gc.ca/eng/archive/2012/2012-183.htm.Please do not hesitate to contact us for more information.

Thank you for your attention to this matter.

Santa Claus Inc. Phone: 416 555-1212• Fax: 416 555 1212 •santa

[email protected] Santa Plaza, 1 Candy Cane Lane, Canada HOHOHOwww.santaclause.ca

View our privacy policy.

Next Steps

Inventory your campaigns & determine:o Is it a CEM?

o Do we need consent?

o Do we need special content?

o Do we need an unsubscribe?

o Is there an exemption we can use?

If you have consent determine:o Do we know when and how we got consent?

o What is our relationship with this group of individuals

o Purge or refresh consent where you can before the legislation comes into force

Make sure you have back-end data management that can support compliance.

FreshAddress brings the power of real time email validation to retail POS

Guarantees that all collected email addresses are 100% valid and deliverable

360 solution for your omnichannel digital marketing linking POS, mobile POS and e-Commerce

What does the term “Omnichannel Strategy” really mean for retailers?

SOLVING THE MYSTERY

Consistent customer experience

Inventory Management

Loyalty Programs

Digital Receipts

Suggestive Upsell

Flexible Product Return

Targeted email marketing

Social media

Maximum monetization of the customer relationship

If your omnichannel strategy does not make you money its just a bunch of fluff

What is the most important component of an Omnichannel strategy to a retailer?

Customers Email Address

Three biggest advantages of email

1. Email is the most efficient marketing method with the largest trackable ROI

2. It costs $0.0017 to send an email vs $0.35 to send a marketing piece via postal mail

3. Email allows the retailer to monetize their relationship with the customer after they have left their store or their website

Consistent customer experience Digital Receipts Inventory Management Loyalty Programs Flexible Product Return Suggestive Upsell

The email address is the keystone of any Omnichannel strategy

What can go wrong when collecting the customers email?• Typos• Syntax errors• Transposition• Toxic emails (spam traps, DMA – Do Not Email List, etc.)

Most common email address collection points utilized by retailers

In store POS

In store mobile POS

Smart phone

Retail web site

What can happen when sending an invalidated email campaign?• Degraded reputation with your ESP (email service provider)• Most of your emails going to spam folder not inbox• Marketing campaign shutdown by ESP• Black listed by ESP

Most importantly: What happens when the customer email address is entered incorrectly?

• The retailer has no way to reach the customer after they have left the store or web site• There is no way for the retailer to monetize their customer relationship post visit• Low ROI on money spent to attract a customer to the retailers store or web site

Brick & Mortar

POS

Brick & Mortar

Mobile POS

Web

E-Commerce site

Mobile

E-Commerce site

CONSUMER

Email Collection Sources

70% VALID

Email Addresses

35% TOXIC

Email Addresses

Marketing Database

ESP

Email ServiceProvider

INBOX

SPAM

Folder

EmailRecipient

Without email validation 35% of all collected email addresses will be undeliverable

Every campaign run by the retailer will have bounces and decrease ESP reputation

As ESP reputation worsens more emails are sent directly to recipients SPAM folder

GoodReputation

BadReputation

Messaging costs will remain the same while revenue declines with each campaign

ESP

$$$$$$Revenue

NoRevenue

CampaignROI

Industry statistics on error rates for email addresses collected by retailers• 35% of POS collected emails are unrecoverable/invalid• 12% of web site collected emails are unrecoverable/invalid

Brick & Mortar

POS

Brick & Mortar

Mobile POS

Web

E-Commerce site

Mobile

E-Commerce site

CONSUMER Marketing Database

Loyalty Program

Omni-Channel

Email Marketing

Digital Receipts

Email Address

Acquisition Points

CONSUMER

Email Address

Utilization Points

Email Address

Consolidation Point

POS

% of invalid emails

35 %

Mobile POS

% of invalid emails

35 %

E-Commerce

% of invalid emails

8 %

Mobile E-Commerce

% of invalid emails

10 %

Toxic emails

Undeliverable email

Inaccurate

campaign ROI

Undeliverable digital

receipts

Inaccurate loyalty

point tracking

Poor customer

service

Duplicate customer

records

Database

contamination

Negative impact on

ESP reputation

Emails routed to

SPAM folders

Blacklisting

ESP send charges

even for bad emails

Digital Email Marketing Campaign NO ValidationWith Validation

POS

% of invalid emails

0 %

Mobile POS

% of invalid emails

0 %

E-Commerce

% of invalid emails

0 %

Mobile E-Commerce

% of invalid emails

0 %

No Duplicate

customer records

No Database

contamination

Positive impact on

ESP reputation

Emails routed to

Inbox folders

No Blacklisting risk

ESP send charges

even for bad emails

All emails 100%

SafeToSend

All emails 100%

deliverable

Accurate

campaign ROI

All digital receipts

100% deliverable

Accurate loyalty

point tracking

Great customer

service

900,000600,000

Retailer spends money to collect 900,000 customer email addresses

Email marketing without validation is a waste of money, time and resources

300,000 Due to the 35% POS error rate one third of the email is unrecoverable

One third of the money used to acquire customers email has been wasted

ESP charges to send 900,000 emails regardless of how many are actually delivered

One third of the money used to send emails to customers has been wasted

Emails Emails Open Conversion Average Total

Sent Delivered Rate (4%) Rate (2%) Transaction Revenue

No Email Validation 900,000 600,000 24,000 480 $45 $21,600

With Email Validation 900,000 900,000 36,000 720 $45 $32,400

Email marketing campaigns with email validation yield 30% more revenue

In the example above the campaign with email validation generated $10,800 more than the campaign without email validation

Examples of real time email validation within a POS environment

The examples on the following slides show email validation on an in store POS terminal.Same functionality is available on mobile POS and e-Commerce solution

Collins

Phil

[email protected]

Master Customer Record

Invalid email address entered

Customer is not found in database and sales clerk fills in customer contact information in the master customer record

Collins

Phil

[email protected] Invalid email address detected

Correct email is suggested

Sales clerk mistakenly enters the wrong email address where ‘Gmail’ is misspelled. The system automatically detects the error in real time, alerts the clerk and offers a correction.

Collins

Phil

[email protected] Automatic correction

The email address field is automatically updated with the correct email address ensuring that 100% of all collected emails are valid and deliverable

Springsteen

Bruce

[email protected] Email address does not exist

Real time validation can also determine if an email address actually exists, registered with the email service provider and accepting incoming messages.

Tyler

Steven

[email protected] Email address does not exist

Other common mistakes made in a hectic retail environment are syntax errors, typos and transpositions. Real time validation flags these errors so they can be corrected.

This is an example of our integration with a mPOS and e-commerce platform.Email validation can be done is real time as well as batch.

Batch Email Submission

Setting Up FTP

Scheduling a Job

Daily Weekly

Monthly

Scheduling a Job

Batch Email Validation

Exception Manager

Email Address for Check out

Real-time validation on your website that provides error messaging

Email Address for Check out

Provides suggested fixes for incorrect addresses and typos

Questions?

Contact us!

Cari Wegner

Dedicated SendReady Rep

[email protected]

Andreas Schwartz

Senior Manager, Direct Marketing

[email protected]

Michael Dreyfus

Business Development Manager

[email protected]