Do personalized emails/newsletters help clothing brands retain existing customers?

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In the competitive online ecommerce world it’s more cost effective to retain customers than it is to acquire new ones.

Tidey (2015) expresses once fashion brands can retain customers it works out in their favour in the long run because as a brand you will be able to pin point what needs your consumers have. Once a brand has an idea of what these needs are particular methods such as email marketing and email newsletters are indirect sales opportunities.

Ahmad and Buttle (2002) state it’s important to find methods that engage existing customers, encouraging them to purchase more often as the act of doing this costs less than encouraging new customers to make purchases for the first time.

figure 1

Figure 1 shows an email newsletter showing key spring pieces to help entice consumers to return back to the site and possibly explore more from the range ‘bouquet’ already !. Ratcliff (2014), argues email newsletters are a subtle way of advertising and subtle advertising is the best way to retain customers because after a while consumers soon become desensitized to the traditional advertising marketing methods.

Rastogi (2014) puts forward the idea that clothing brands would have better luck retaining customers by using personalized emails as they build a connection with the customers. Ratcliff (2014), shares a similar view and develops it further by stating when clothing brands get to know their audience by finding out there:

  • Age
  • Gender
  • Location
  • Date of Birth
  • Special Anniversary

It allows them to create “loveable content” tailored specifically to them allowing them to be engaged, thus increasing customer retention as simple reminders will urge them to frequently come back. Figure 2 is a great example of a personalized email. Collecting personal information and sending a reminder with a discount code helps with customer retention as consumers become somewhat appreciative of the gesture and are more likely to return.  Measurement of such strategy would be whether the user had reached the landing page and if the unique code had been entered at the checkout.

figure 2

Hauser (2008) argues direct marketing is the best method to use when wanting to retain existing customers. Personalized email marketing/newsletters are a great method of direct marketing. Personalized emails are less likely to be marked as spam and require the recipient to read the email and make an informed decision. Figure 2 shows an example of a personalized email, in this case birthdays are a great opportunity to retain customers by offering freebies and unique discount codes. The emails would come with a call to action in the email prompting traffic to the site in question.

Ratcliff (2014), argues email newsletters are a subtle way of advertising and subtle advertising is the best way to retain customers because after a while consumers soon become desensitized to the traditional advertising marketing methods.

Fariborzi & Zahedifard (2012) explain despite the benefits of email marketing, the direct form of customer retention also comes with disadvantages. Disadvantage of email marketing/newsletter is the undelivered email which can be for multiple reasons such as junk mail filters so the email doesn’t even reach the recipient. Sometimes the readability can be an issue, sometimes different email reading systems may not translate the colour or graphics or link may not be supported on all browsers. The frequency of emails sent can also be an issue. It is important to find a balance so consumers are not bombarded and soon see the emails as a nuisance.

 

 

 

 

References

Ahmad, R. and Buttle, F. (2002). Customer retention management: a reflection of theory and practice. Customer retention management: a reflection of theory and practice”, Marketing Intelligence & Planning, [online] 20(3), pp.149 – 161. Available at: http://dx.doi.org/10.1108/02634500210428003 [Accessed 9 April. 2017].

Fariborzi, E. and Zahedifard, M. (2012). E-mail Marketing: Advantages, Disadvantages and Improving Techniques. International Journal of e-Education, e-Business, e-Management and e-Learning, [online] 2(3), pp.233-236. Available at: http://www.ijeeee.org/show-31-358-1.html [Accessed 2 May 2017].

Hauser, W. (2008). Successful Direct Marketing Methods20081Bob Stone and Ron Jacobs. Successful Direct Marketing Methods. McGraw‐Hill, 2007.. [online] EmeraldInsights.com. Available at: http://www.emeraldinsight.com/doi/full/10.1108/17505930810863644 [Accessed 3 May 2017].

Lazazzera, R. (2014). 7 Customer Retention Tactics to Get Current Ecommerce Customers to Purchase More – Shopify. [online] Shopify’s Ecommerce Blog – Ecommerce News, Online Store Tips & More. Available at: https://www.shopify.co.uk/blog/15593136-7-customer-retention-tactics-to-get-current-ecommerce-customers-to-purchase-more [Accessed 9 April. 2017].

Rastogi, P. (2014). How Online Fashion Retailers can use Email Marketing for Brand Building, Profit & Customer Retention – 67 Points Checklist – ILoveFashionRetail.com. [online] ILoveFashionRetail.com. Available at: http://ilovefashionretail.com/fundamentals/how-online-fashion-retailers-can-use-email-marketing-for-brand-building-profit-customer-retention-67-points-checklist [Accessed 29 April. 2017].

Ratcliff, C. (2014). How fashion ecommerce brands use email marketing. [online] Econsultancy. Available at: https://econsultancy.com/blog/65115-how-fashion-ecommerce-brands-use-email-marketing/ [Accessed 29 April. 2017].

Tidey, W. (2015). Acquisition vs Retention: The Importance of Customer Lifetime Value. [online] Huify.com. Available at: https://www.huify.com/blog/acquisition-vs-retention-customer-lifetime-value [Accessed 16 April. 2017].

 

Why do celebrity endorsed campaigns help brands with customer acquisition?

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Tidey (2015) suggests increasing your customer base arguably is the fastest way to grow clothing brand. But make no mistake is it the only way, although when customer retention is proving to be somewhat difficult, why not just acquire some new ones.

When it comes to customer acquisition a little subtle advertising in celebrity endorsed form can help reach out to new customers on various channels whether it be a service of experience. Hard-core clothing advertising can in theory scare new customers whereas the featuring of a current celebrity can do just that without you even noticing Ilicic and Webster, 2015.

Endorsement has been around since advertising began but it has become the norm so the placement of a high-profile figure can make a real difference to a brand’s reputation and sales. Celebrity endorsed clothing lines help brands attain new customers for various reasons. Stringfellow (2017) argued a brand could attain new customers simply because they are a fan of celebrity used.. This enables brands to acquire loyal customers of celebrity X simply because they support all ventures by celebrity X and want to be a part of it in some way.

Byrne, Whitehead and Breen (2003) suggest celebrity endorsements can help with acquiring new customers the brand does not originally market to. In some cases this decision can catch the eyes of example a younger audience. Example of this can be seen with Kendal Jenner for Estee Launder (figure 1).

Figure 1

Estee Lauder is famously known as the cosmetic brand for the mature women in the city. When the brand chose young supermodel Kendal Jenner to be the face of the brand, many were unsure as she was only 19 at the time. Previous faces were the likes of Joan Smalls (28 years old) and Kate Moss (32 years old). Global brand president Jane Hertzmark Hudis explained that Kendal Jenner was the perfect link to help bridge the worlds of high fashion, entertainment and social media, as Kendall is a modern beauty who represents a whole new generation of women who love makeup and fashion (figure2). She went on further to say it “would be nice to share some of products with those who may not have tried us before”. Evans (2015) noted brands love endorsements, and consumers buy into “celebrity.”

figure 2

In 2014 Estee Lauder released its video campaign promoting its Double Wear Foundation. In 2015 Estee Lauder saw a 2.6% increase in subscribers between the ages of 18-24 year olds. Estee Lauder was no more your Mums’ brand of makeup but yours. For the release of their New Pure colour Lipstick collection, Estee Lauder teamed up with Kendal Jenner (considered one of the it girls of fashion) and Ellie King (America’s Got Talent 2016 winner). The video consists of the girls waking up from a crazy house party the night before with Kendal being the only one attempting to clean up. Elle leaves Kendall to clean up as she makes her way to the studio dropping her lipstick. Kendall picks up the Estee Lauder pure colour lipstick and switches voices with Elle as she puts it on. Elle soon realizes her singing is off before she’s without the lipstick and rushes home to find Kendall serenading a fork with her new found voice. Video can be found here (Wild Love: Watch Kendall Jenner & Elle King Mix It Up with New Pure Color Love Lipstick https://youtu.be/hy-nfZ6cLjM )

Ultimately, celebrity endorsements are always worth investing in if you have the right person. Escalas and Bettman (2015) argued cosmetic brands know how to pick the right celebrity for the right purpose. Morgan 2015 argued Estee Lauder wanted to attract a much younger audience and successfully did just that with Kendal Jenner figure 3.

figure 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References:

Byrne, A, Whitehead, M and Breen, S. (2003) “The naked truth of celebrity endorsement”,

British Food Journal, Vol. 105 Issue: 4/5,pp. 288-296, [Online] Available at http://dx.doi.org/10.1108/00070700310477086 [Accessed 29th March 2017]

Crutchfield, D. (2010). Celebrity Endorsements Still Push Product. [online] Adage.com. Available at: http://adage.com/article/cmo-strategy/marketing-celebrity-endorsements-push-product/146023/ [Accessed 21 Feb. 2017].

Escalas, J. and Bettman, J. (2015). Managing Brand Meaning through Celebrity Endorsement. Brand Meaning Management, [online] pp.29-52. Available at: http://www.emeraldinsight.com/doi/full/10.1108/S1548-643520150000012002 [Accessed 27 Feb. 2017].

Evans, M. (2015). Direct Line marketing director: Successful celebrity brand endorsements have a purpose at their heart – Marketing Week. [online] Marketing Week. Available at: https://www.marketingweek.com/2015/09/09/direct-line-marketing-director-successful-celebrity-brand-endorsements-have-a-purpose-at-their-heart/ [Accessed 16 Feb. 2017].

Ilicic. J and Webster, C.M, (2015) “Consumer values of corporate and celebrity brand associations”, Qualitative Market Research: An International Journal, Vol. 18 Issue: 2, pp.164-187, [online] available at http://dx.doi.org/10.1108/QMR-06-2013-0037. [accessed 8th April 2017]

Lewis, C. (2014). Kendall Jenner Is the New Face of Estée Lauder: Here’s Why It’s a Career Game-Changer. [online] TeenVogue.com. Available at: http://www.teenvogue.com/story/kendall-jenner-estee-lauder-campaign [Accessed 14 Apr. 2017].

Morgan, P. (2015). Estée Lauder’s Marketing Strategies to Reach New Consumers – Market Realist. [online] Marketrealist.com. Available at: http://marketrealist.com/2015/08/estee-lauders-marketing-strategies-reach-new-consumers/ [Accessed 14 Apr. 2017].

Stringfellow, A. (2017). Customer Acquisition Strategy: Tips from 21 Experts. [online] NGDATA. Available at: https://www.ngdata.com/successful-customer-acquisition-strategy/ [Accessed 20 Feb. 2017].

Tidey, W. (2015). Acquisition vs Retention: The Importance of Customer Lifetime Value. [online] Huify.com. Available at: https://www.huify.com/blog/acquisition-vs-retention-customer-lifetime-value [Accessed 9 Mar. 2017].

How celebrity endorsed clothing lines help brands with customer retention?

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Celebrity endorsements in the clothing industry have the power to inspire, enlighten and educate. Arguably clothing brands aim to do the same for their consumers but with clothes!

Consumers rather not be faced with hard core clothing advertising however the feature of a celebrity you’re familiar with in the exact same clothes can do just that without you realising.

Subtle advertising can help retain loyal customers across multiple channel experiences and potentially services (figure 1). This leverage helps to cut through the confusion that can come with advertising by creating brand narratives, while allowing channel-specific optimization to take place. Ultimately, celebrity endorsed clothing lines are always worth investing in if you have the right person.

Spry, Pappu, and Bettina Cornwell (2011) argued endorser credibility has an indirect impact on brand equity when this relationship is mediated by brand credibility. This mediating relationship was moderated by type of branding. It’s no secret brands love endorsements and because of this consumers buy into celebrity.

Stringfellow, (2017) in an era of consumer capitalism, where consumers voice their marketing experiences, in both positive and negative ways, across social channels online. More than ever it is important to keep existing customers happy at all costs.

Escalas and Bettman (2015) argued celebrity endorsed clothing lines enhance customer retention as consumers aspire to be like the celebrity in question. However the collaboration doesn’t really do much when the customers do not. For this reason the collaboration is only are successful when the brand image is compatible with that of the celebrity’s. Example of this would be (TOMMYXGiGi) (GiGi Hadid for Tommy Hilfiger) that aimed to retain its 18-25 demographic after a 2.6% decline from that age group in 2015 (figure 2). For season 2 of the collaboration the promotional video that can be found on YouTube features Gigi and friends near a beach, skateboarding/dancing having fun to a catchy beat. Gigi being a young 21 year old she fits right in the middle of the target demographic, displaying how hip and trendy the clothing brand is. Link to video can be found here ( TOMMYXGIGI Spring 2017 | Season 2 of Gigi Hadid & Tommy Hilfiger’s Co-designed Collection https://youtu.be/rE3_luJsx_Y).

In March 2014 fast fashion retailer Missguided teamed up with Nicole Scherzinger to create Nicole x Missguided (figure 3). Sales soared 35 per cent month-on-month following the first launch of the collection. Owner of Missguided Nitin Passi noticed Nicole had worn three different items at different times which were medium or slow sellers and every time she wore them they sold out. Many customers that repeatedly checkout on Missguided without signing up, created accounts to keep updated with the collaboration line. Missguided saw an 12.4% increase in customer retention, this was measured by the number of orders made using a customer login 6 months after the release of Nicole x Missguided.

If you put a face to a name, the more likely you’ll remember it, and marketers know the same goes with partnering celebrities to their brands. For this reason Ahmad and Buttle, (2002) argued that the selection of the right celebrity can not only help a brand become memorable but can also help with the retention of customers as this provides them with exclusive access to such lines before they’re released to the public. Consumers love to feel important.

Rihanna for River Island- product (left) & Usain Bolt for Virgin Media- service (right)

Figure 1: Rihanna for River Island- product (left) Usain Bolt for Virgin Media- service (right)

TOMMYXGiGi

Figure 2: TOMMYXGiGi

Nicole x MISSGUIDED

Figure 3: Nicole x MISSGUIDED

Happy (almost) Birthday! –Yes we got you a gift…

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Happy (almost) Birthday! –Yes we got you a gift…

Checking my inbox I see an email from online retailer Misguided! Being familiar with the brand, I opened the email  especially because it said happy (almost) birthday. Personalisation such as my first name Rachel was used in this email. The email was also sent a exactly a week til my birthday (figure 1).

The design of the email follows the Missguided house style of the logo situated in the middle of the page followed by the menu bar straight beneath it. The shades of pink resonate with me as a female since pink is commonly associated with girls. The texts in bold highlight important information i.e amount of discount: 10%, discount code: BDAY_UK298S (figure 1).

The use of the of the GIF makes the email more interesting as you find yourself watching the GIF play out a couple of times. The email arguably lacks images however like previously mentioned the email contains one GIF of a pink cake shaped in a heart with Say What scribbled on it (figure 2). The GIF can also be saved for your viewing pleasure (direct link to GIF: http://static.cdn.responsys.net/i5/responsysimages/missguided/contentlibrary/0-automatedcampaigns/2015/birthday/birthday1/uk/Category_1_UK/images/say-what.gif# ).

The email looks somewhat the same on both desktop and phone. Although on a desktop the email has a lot of blank space on the left and right as the email itself is in the centre third. The GIF works perfectly fine on both mediums (figure 3 and 4). Overall the email is good because it’s a great use of direct email marketing. The timing of the email works well as it was sent exactly a week before my birthday. The text within the email is the call to action in the email is to use the birthday discount code and spend on the site.

What was not so good about the email was the lack of text. The email was incredibly brief in comparison to other birthday emails from other brands i.e ASOS. The email includes more text about the offer and includes more personalisation about my current A List standing. It further explains the point system and how many points I currently have (figure 5).

(Hernandez + Resnick, 2013) argued how the call to action button can persuade the consumers to perform the desired action (figure 6). The emails call to action tempts me to shop despite the fact I had no intention to do so. Get preppin’ nicely ties into the idea of prepping for a big occasion i.e “Nails done? Hair did?” a popular phrase in the youth culture meaning the art of getting ready.

Upon entering the landing page you’re directed to the Missguided home page. Immediately you’re greeted with a slide show of offers from 20% knitwear, 10% off all boots to next day delivery for only £1.99. Multiple calls to action can be found on the landing page as each slide show warrants me the user to take up an offer and shop either one presented. The landing page lacks personalisation.

Arguably the call to action doesn’t look very glamorous as it’s pretty plain. It could be less subtle and more noticeable however it does follow the Missguided house style using the Consolas typography in reverse text.

Overall in my opinion, the email does its job! I followed the call to action and purchased from the site using the discount code provided. Arguably the email could be improved by adding more images, to brighten the email itself. The adding of more images would fill up the empty white spaces in the email.