Investigating the Effectiveness of Triggered Email Marketing
49 Pages Posted: 19 Aug 2018
Date Written: November 1, 2016
Triggered emails correspond to personalized messages sent automatically as a response to specific actions or states of customers. Typical examples of this kind of campaign include confirmation and order status emails, personal greetings, cross-selling recommendations, cart abandonment reminders, and re-engagement emails. Despite the widespread growth of these triggered emails, there has been no formal evaluation of their effectiveness. This paper investigates the impact of triggered email marketing campaigns using an experimental approach. We identified more than 20,000 retail customers who had recently browsed the website of a multichannel retailer, but abandoned the process before purchasing, and randomly selected around half to send them automated emails with different configurations. The results show that browse abandonment triggered emails are more effective than traditional emails, but this is largely explained by a selection effect. In terms of the campaign design, we find that some level of personalization and recommending products that are close to those that the customer has been visiting positively influence the profitability of these campaigns.
Keywords: Direct Marketing, Event-Based Email, Triggered Emails, Multichannel Retailing, Personalization
JEL Classification: M10
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