SlideShare a Scribd company logo
www.sailthru.com cyoung@sailthru.com
Cassie Lancellotti-Young
VP Analytics and Optimization, Sailthru
@dukecass @sailthru
cyoung@sailthru.com
Playing the Marketing Long Game:
Near-Term Wins vs. Long-Term Value
• Framing the Metrics that Matter: Retention’s Revenge
!
• Understanding the Quality/Quantity Conundrum
!
• Discerning Campaign Testing vs. Cohort Testing
!
• Case Study: Marketing at Sailthru
!
• Q&A
Today’s Agenda
Retention.
It is 5x more cost-effective to
retain an existing customer than to
acquire a new one
…yet only 16% of companies
put primary focus on retention
S o u r c e : E c o n s u l t a n c y 2 0 1 3 C r o s s - C h a n n e l M a r k e t i n g R e p o r t

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Scott Heimes - CMO / SendGrid at SaaStr Annual 2018 5 Keys for Driving Growth & Engagement via Email

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Brian Kroll - The Strategic Omni-Channel Digital Marketing Playbook
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The document outlines strategies for designing and optimizing omni-channel digital marketing campaigns. It discusses setting up campaigns by determining geo-targets and structuring data to meet business objectives. It also covers optimization strategies like aligning platforms and channels to different stages of the customer journey or having all channels compete on the same metric. The goal is to improve conversion rates, revenue and ROI by taking a strategic, omni-channel approach that accounts for how today's consumers cross-shop, research on multiple devices and are influenced by video.

www.sailthru.com sales@sailthru.com
Why is this dangerous? Today is different from tomorrow…
TODAY:!
Signup Capture
$10,000 ad spend!
100 leads
$100 CPA
TOMORROW:!
Customer Acquisition
$10,000 ad spend!
100 leads
10 buyers!
$1,000 CPA(C)
www.sailthru.com sales@sailthru.com
Marketing 101 – customer unit economics
Lifetime Value - Acquisition Cost >> 0
CLV or LTV CAC
TODAY:!
Signup Capture
$10,000 ad spend!
100 leads!
$100 CPA!
$750 CLV!
PROFITABLE?!?!
TOMORROW:!
Customer Acquisition
$10,000 ad spend!
100 leads!
10 buyers!
$1,000 CPA(C)!
$750 CLV!
NOT SUSTAINABLE!
www.sailthru.com sales@sailthru.com
To put it another way…
2.4% lift in two-year lifetime value!
ENGAGEMENT matters most
• Many ways to qualify “engagement,” but it’s
about quality (vs. quantity) and building
sustainable customer relationships
!
• Conversions (e.g. demo requests) today do
not necessarily breed engagement
tomorrow, but engagement (e.g. newsletter
subscription) might breed conversions –
always measure the downstream impact

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This document is from the website www.productschool.com and discusses their course offerings. Productschool offers part-time courses in Product Management, Coding for Managers, Data Analytics for Managers, Digital Marketing for Managers, UX Design for Managers, Product Leadership, and Corporate Training. The courses aim to teach practical skills for product roles.

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technologystartupsenterprise
Find the metrics that matter.
Understand trade-offs between top-of-funnel
and further down, quality vs. quantity
Source: Forrester 2012
66% of marketers use open 

rates as the primary metric for
email performance analysis
• Twitter – 30 follows as quickly as possible
!
• Facebook – 7 friends in 10 days
!
• Zynga – “D1” metrics; what happens post day0?
!
• Sailthru – what pages on our website are they visiting?
“Magic numbers” – the tipping point for customer engagement
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marketingseoclient retention
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cognizant of trade-offs…
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!
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!
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!
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!
!
!
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• Discounts and trials are not free
candy – often result in lower
renewal rates as well as reduced
willingness to pay
Example: free trials!
Play the long game.
Think beyond optimizing for the
here and now; it’s about
cultivating long-term value.
A/B tests will drive incremental returns, but
most material lift comes from cohort tests
CELL A: PRODUCTS
Pop Quiz/Case Study: Country Outfitter
CELL B: CONTENT
• Cell A wins for gross
conversions today
!
• Cell B wins for average
order value (AOV) and
lifetime revenue per user!
!
• Same frameworks apply
for B2B

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cmomarketing strategymartecheu15
…but challenges come with balancing
lightweight testing with longitudinal
studies, so test often and revisit regularly
Marketing @ Sailthru
Sneak Peek: Sailthru Marketing Stack
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PrintShop.ng is an online print shop in Nigeria that offers design templates, print services, and delivery. It aims to make printing more accessible and affordable for businesses and individuals. The founders saw a need due to the high costs and difficulties of accessing printing services in Nigeria currently. PrintShop.ng offers over 100 free templates, customization tools, online ordering and proofing, affordable prices, and delivery across Nigeria. It generates revenue through print product and service sales as well as premium template sales. After launching its website and growing its team and marketing, the founders aim to reach 150 customers per month and $150,000 in revenue within a year to achieve profitability and further growth.

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Sailthru’s marketing funnel
suspects /
leads
marketing
qualified leads
(MQLs)
sales qualified
leads (SQLs)
wins
annual contract
value
• How do we attract leads?
!
• How do we score those leads?
!
• Think about both VELOCITY and QUALITY,
especially for Lead > MQL conversion
!
• Measure across channels (inbound, outbound, events, referrals) – e.g.
Sailthru aims for 3x ROI for each event investment
The quality/quantity trade-off remains critical…
Forrester white paper download
Q&A
www.sailthru.com !
sales@sailthru.com!
817.812.8689!
@sailthru!
NYC HQ

160 Varick St., 12th Floor!
New York, NY 10013
San Francisco

25 Taylor St., Room 724!
San Francisco, CA 94102
London!
18 Soho Square!
London, UK, W1D 3QL
Los Angeles!
7083 Hollywood Blvd!
Los Angeles, CA 90028

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Playing the Marketing Long Game

  • 1. www.sailthru.com cyoung@sailthru.com Cassie Lancellotti-Young VP Analytics and Optimization, Sailthru @dukecass @sailthru cyoung@sailthru.com Playing the Marketing Long Game: Near-Term Wins vs. Long-Term Value
  • 2. • Framing the Metrics that Matter: Retention’s Revenge ! • Understanding the Quality/Quantity Conundrum ! • Discerning Campaign Testing vs. Cohort Testing ! • Case Study: Marketing at Sailthru ! • Q&A Today’s Agenda
  • 3. Retention. It is 5x more cost-effective to retain an existing customer than to acquire a new one
  • 4. …yet only 16% of companies put primary focus on retention S o u r c e : E c o n s u l t a n c y 2 0 1 3 C r o s s - C h a n n e l M a r k e t i n g R e p o r t
  • 5. www.sailthru.com sales@sailthru.com Why is this dangerous? Today is different from tomorrow… TODAY:! Signup Capture $10,000 ad spend! 100 leads $100 CPA TOMORROW:! Customer Acquisition $10,000 ad spend! 100 leads 10 buyers! $1,000 CPA(C)
  • 6. www.sailthru.com sales@sailthru.com Marketing 101 – customer unit economics Lifetime Value - Acquisition Cost >> 0 CLV or LTV CAC TODAY:! Signup Capture $10,000 ad spend! 100 leads! $100 CPA! $750 CLV! PROFITABLE?!?! TOMORROW:! Customer Acquisition $10,000 ad spend! 100 leads! 10 buyers! $1,000 CPA(C)! $750 CLV! NOT SUSTAINABLE!
  • 7. www.sailthru.com sales@sailthru.com To put it another way… 2.4% lift in two-year lifetime value!
  • 8. ENGAGEMENT matters most • Many ways to qualify “engagement,” but it’s about quality (vs. quantity) and building sustainable customer relationships ! • Conversions (e.g. demo requests) today do not necessarily breed engagement tomorrow, but engagement (e.g. newsletter subscription) might breed conversions – always measure the downstream impact
  • 9. Find the metrics that matter. Understand trade-offs between top-of-funnel and further down, quality vs. quantity
  • 10. Source: Forrester 2012 66% of marketers use open 
 rates as the primary metric for email performance analysis
  • 11. • Twitter – 30 follows as quickly as possible ! • Facebook – 7 friends in 10 days ! • Zynga – “D1” metrics; what happens post day0? ! • Sailthru – what pages on our website are they visiting? “Magic numbers” – the tipping point for customer engagement
  • 12. Measurement must be apples-to-apples: no cohort left behind!
  • 13. (even if you do choose to look at a metric like open rate!)
  • 14. Engagement is about quality, but we must be cognizant of trade-offs…
  • 15. • 70 million emails sent, compared Gmail rates vs. weighted average of Yahoo-Hotmail-AOL ! • Open rates down (magnitude as much as 94%) ! • Value per open up (degree as much as 705%) ! • Optimization metric = total value per email sent; is improved quality enough to offset dip in quantity? Example: Gmail promotional tabs
  • 16. • Business Insider – varied CTR impact, 51% lift in PVs per open ! ! ! • Cult Cosmetics – varied CTR effect, 11.2% lift in cart conversion Example: responsive design in email
  • 17. • Discounts and trials are not free candy – often result in lower renewal rates as well as reduced willingness to pay Example: free trials!
  • 18. Play the long game. Think beyond optimizing for the here and now; it’s about cultivating long-term value.
  • 19. A/B tests will drive incremental returns, but most material lift comes from cohort tests
  • 20. CELL A: PRODUCTS Pop Quiz/Case Study: Country Outfitter CELL B: CONTENT • Cell A wins for gross conversions today ! • Cell B wins for average order value (AOV) and lifetime revenue per user! ! • Same frameworks apply for B2B
  • 21. …but challenges come with balancing lightweight testing with longitudinal studies, so test often and revisit regularly
  • 23. Sneak Peek: Sailthru Marketing Stack
  • 24. …but arguably our most powerful marketing tool?
  • 25. Sailthru’s marketing funnel suspects / leads marketing qualified leads (MQLs) sales qualified leads (SQLs) wins annual contract value • How do we attract leads? ! • How do we score those leads? ! • Think about both VELOCITY and QUALITY, especially for Lead > MQL conversion ! • Measure across channels (inbound, outbound, events, referrals) – e.g. Sailthru aims for 3x ROI for each event investment
  • 26. The quality/quantity trade-off remains critical… Forrester white paper download
  • 27. Q&A www.sailthru.com ! sales@sailthru.com! 817.812.8689! @sailthru! NYC HQ
 160 Varick St., 12th Floor! New York, NY 10013 San Francisco
 25 Taylor St., Room 724! San Francisco, CA 94102 London! 18 Soho Square! London, UK, W1D 3QL Los Angeles! 7083 Hollywood Blvd! Los Angeles, CA 90028