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	<title>All That I Know (About Technology) &#187; email</title>
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	<link>http://www.allthatiknow.com</link>
	<description>Tomer Tishgarten&#039;s Professional Blog on Technology and Marketing</description>
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		<title>Netflix: a surprising example of lazy marketing</title>
		<link>http://www.allthatiknow.com/2011/12/netflix-a-surprising-example-of-lazy-marketing/</link>
		<comments>http://www.allthatiknow.com/2011/12/netflix-a-surprising-example-of-lazy-marketing/#comments</comments>
		<pubDate>Sat, 31 Dec 2011 16:07:46 +0000</pubDate>
		<dc:creator>Tomer Tishgarten</dc:creator>
				<category><![CDATA[Life and Technology]]></category>
		<category><![CDATA[email]]></category>
		<category><![CDATA[email marketing]]></category>
		<category><![CDATA[lazy marketing]]></category>
		<category><![CDATA[Netflex]]></category>
		<category><![CDATA[personalization]]></category>
		<category><![CDATA[subscribers]]></category>
		<category><![CDATA[win-back campaign]]></category>

		<guid isPermaLink="false">http://www.allthatiknow.com/?p=794</guid>
		<description><![CDATA[There&#8217;s really nothing more irritating than lazy marketing. It&#8217;s when a marketer expects you to just hand over your money to them. The marketer is behaving lazily &#8212; they don&#8217;t invest their time researching and developing a compelling offer that drives consumers to purchase the product/service. So imagine my frustration when a lazy marketing email arrived [...]]]></description>
			<content:encoded><![CDATA[<p><img class="alignright size-thumbnail wp-image-698" title="Netflix Logo" src="http://www.allthatiknow.com/wp-content/uploads/2011/02/netflix-logo-150x150.jpg" alt="Netflix Logo" width="150" height="150" />There&#8217;s really nothing more irritating than lazy marketing. It&#8217;s when a marketer expects you to just hand over your money to them. The marketer is behaving lazily &#8212; they don&#8217;t invest their time researching and developing a compelling offer that drives consumers to purchase the product/service.</p>
<p>So imagine my frustration when a lazy marketing email arrived in my inbox from Netflix, a company that I&#8217;m a big fan of and I&#8217;ve written about in the <a title="Will Amazon video streaming service for Prime members impact Netflix?" href="/2011/02/will-amazon-video-streaming-service-for-prime-members-impact-netflix/" target="_blank">past</a>. It was a win-back offer asking me to renew my recently cancelled subscription. I had closed my account when Netflix announced that their 1-DVD rental/unlimited streaming service was increasing from about $10 to $16 per month earlier this year. Actually, I considered subscribing only to their streaming service but felt that the value wasn&#8217;t there at the $7.99 per month price point. While I am a believer that streaming media is the wave of the future, I felt that the Netflix library (or anyone else&#8217;s these days) is a bit anemic. So shortly after shutting it down, the win-back emails started rolling in and while I ignored the first one or two, I started to notice a surprising pattern.</p>
<p><span id="more-794"></span></p>
<p>The imagery and copy varied slightly between the emails but the offer was always the same &#8212; $7.99 for streaming service (see for your self below).</p>
<p><strong>Email #1 (click to enlarge):</strong></p>
<p><a href="http://www.allthatiknow.com/wp-content/uploads/2011/12/netflix-win-back-email-campaign-1.png"><img class="alignnone size-medium wp-image-825" title="netflix-win-back-email-campaign-1" src="http://www.allthatiknow.com/wp-content/uploads/2011/12/netflix-win-back-email-campaign-1-278x300.png" alt="Netflix win-back email campaign offer #1" width="278" height="300" /></a></p>
<p><strong>Email #2 (click to enlarge):</strong></p>
<p><a href="http://www.allthatiknow.com/wp-content/uploads/2011/12/netflix-win-back-email-campaign-2.png"><img class="alignnone size-medium wp-image-826" title="netflix-win-back-email-campaign-2" src="http://www.allthatiknow.com/wp-content/uploads/2011/12/netflix-win-back-email-campaign-2-289x300.png" alt="Netflix win-back email campaign offer #2" width="289" height="300" /></a></p>
<p>Basically, the Marketing team was using two win-back email templates, and these templates were being &#8220;personalized&#8221; by inserting my name, which is an emailing marketing 101 tactic. Now for a company that&#8217;s recognized for their data mining prowess, I am surprised at how little of my user data was introduced into the email, especially when considering that higher levels of personalization drive engagement and that most ESP&#8217;s (email service providers) have significant built-in email personalization capabilities, like showing your prior viewing behavior. If you&#8217;re looking for solid example of such marketing efforts then check out the <a title="Personalized e-mails perk up conversion rates at Ice.com " href="http://www.internetretailer.com/2011/01/27/personalized-e-mails-perk-conversion-rates-icecom" target="_blank">26% increase in open rate and 2.3% average sales conversion rate</a> that Ice.com experienced when they started personalizing email offers earlier this year.</p>
<p>I do realize that win-back emails were probably a low priority for the Marketing team since Netflix saw robust subscriber growth up until October, which is when the price increase drove <a title="Netflix Declines Most Since 2004 After Losing 800,000 U.S. Subscribers" href="http://www.bloomberg.com/news/2011-10-24/netflix-3q-subscriber-losses-worse-than-forecast.html" target="_blank">800,000 subscribers to turn off their Netflix service</a>. But I would have expected that by now someone in the Marketing department would have experimented, maybe just a little more, by adding a template that varies more than the messaging. How about changing the offer? <strong>Considering that Netflix spends approximately $0.05 to deliver a 2-hour movie</strong>, I would need to watch 5+ movies a day on a $7.99 per month account to break the business model and I doubt that most folks have that kind of time. At the very least, applying such a simple solution would buy time for the Netflix Marketing and the Data Science teams (aka, data mining team) to join forces to devise an alternate and probably more elegant, data-driven approach to bring subscribers back.</p>
<p>What&#8217;s the worse thing that could happen? You may even net me back! <img src='http://www.allthatiknow.com/wp-includes/images/smilies/icon_smile.gif' alt=':)' class='wp-smiley' /> </p>
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		<title>Thankgoodness the iPhone is no BlackBerry</title>
		<link>http://www.allthatiknow.com/2009/09/iphone-is-no-blackberry/</link>
		<comments>http://www.allthatiknow.com/2009/09/iphone-is-no-blackberry/#comments</comments>
		<pubDate>Wed, 16 Sep 2009 16:18:51 +0000</pubDate>
		<dc:creator>Tomer Tishgarten</dc:creator>
				<category><![CDATA[Mobile]]></category>
		<category><![CDATA[Apple]]></category>
		<category><![CDATA[BlackBerry]]></category>
		<category><![CDATA[email]]></category>
		<category><![CDATA[iPhone]]></category>

		<guid isPermaLink="false">http://www.allthatiknow.com/?p=53</guid>
		<description><![CDATA[I am quickly learning that I can&#8217;t live without my Apple. I recently broke down and purchased an iPhone 3GS . I resisted to become enslaved to another electronic leash. For those that don&#8217;t know what I mean, it is the nickname for the BlackBerry that I carried for almost two years in my prior [...]]]></description>
			<content:encoded><![CDATA[<p>I am quickly learning that I can&#8217;t live without my Apple.</p>
<p><img class="alignright size-thumbnail wp-image-58" title="apple-iphone-keyboard" src="http://www.allthatiknow.com/wp-content/uploads/2009/09/apple_iphone_keyboard1-150x150.jpg" alt="apple-iphone-keyboard" width="150" height="150" />I recently broke down and purchased an <a title="Apple iPhone" href="http://www.apple.com/iphone/" target="_blank">iPhone 3GS</a> . I resisted to become enslaved to another electronic leash. For those that don&#8217;t know what I mean, it is the nickname for the BlackBerry that I carried for almost two years in my prior job. I saw it as a leash because of the blinking red light. For the uninitiated, it is the indicator light on a BlackBerry for new email messages. Like many others hip carrying users, I initially fell in love with my BlackBerry device because it allowed me to peak at my inbox. The pain of spending 5 minutes waiting on my laptop to reawaken from standby, log into the corporate network and fire up Outlook went away with a BlackBerry. But before I knew it, I was trained like Pavlov&#8217;s dog to look for the blinking red light. It was a vice that I was glad to be rid of for good, or so I thought.</p>
<p>As I debated the purchase, I wondered if my crackberry habit of checking my email would resurface. I knew that I was somewhat safe because Apple didn&#8217;t put an indicator at the top of their iPhone. Also, the iPhone has an option to turn off the sounds when a new message arrives in the inbox. It was amazing how I could be in control &#8212; I could set aside time to look at emails instead of stopping whatever it is that i was doing and rushing to my device to look who wrote me or what blew up (if there&#8217;s an emergency, they can always call!).</p>
<p>So at this point, I&#8217;m only a few days into this &#8220;experiment&#8221; but I&#8217;m already realizing why so many people are fans of the Apple brand. It managed to be totally focused on serving consumers like me.</p>
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