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Email Marketing: Pet Wellbeing

The Power of Permission:
How Pet Wellbeing reduced spend and increased sales
through permission based email marketing

summary:
petwellbeing.com

PetWellbeing
View Site

Service: Email Marketing

sales conversion increase:+211% over their previous attempts
Costs: 150 times cheaper.

other results:

Spam complaints dropped

One of the highest conversion rates of any marketing project

93% decrease in sending costs

  • projected multi million dollar increase in revenue
  • staff understanding of GWO and the web optimization process
  • a powerful demonstration of how improving the user experience improves overall profitability

The Client

Pet Wellbeing—a part of Natural Wellbeing inc.—is a holistic pet medicine supplier. In 2008 they realized that they needed to rework their email campaign, and asked VKI Studios to do so.

The Problem

Pet Wellbeing's email list was old—3–6 months old—and consisted of over 13000 addresses gathered from Pet Wellbeing purchases and accounts. Their previous attempts to start an email campaign had resulted in complaints of spam so serious that their server was at risk of being placed on anti-spam lists.

The Solution

A complete reengagement campaign organized by VKI Studios, and a reworked newsletter based on ExactTarget.

Working with Pet Wellbeing, VKI Studios created and sent a reengagement email to all users, offering signees:

  • news and information regarding pet health issues
  • special deals on products
  • 15% off their next purchase.

By enacting an opt-in campaign Pet Wellbeing was not only preventing spam complaints and obeying US law, but focusing its effort on its core audience, providing incentives to its most loyal—and most profitable—audience base. VKI Studios knew that these customers—often a mere 10% of your customer base—would provide the highest returns.

Concern

"Fewer sends means fewer sales?"

Requiring an opt-in reduced the email list from 13,000 to merely 900 email subscribers, understandably worrying Pet Wellbeing.

VKI Studios assured them that while their over all subscriber numbers would be reduced, the power of marketing only to interested customers would increase their sales while reducing their costs.

The Result

The results were instantaneous. Even the opt-in email generated a conversion rate nearly three times the site average. The following emails resulted in a 211% increase in conversions!

Cost

With the decrease in addresses to send to, spend per send decreased 93%!

Profits

Despite a drop in emails being sent out, the profit compared to previous campaigns actually increased.

Conversions

VKI Studios was vindicated as Pet Wellbeing's conversion rate shot through the roof, raising their email conversion rate 211% over their previous attempts, to nearly 20%.

"...we integrated [the opt-in list] in and now the conversion rate for email is drastically higher than [our] other promotional methods... it is hands down the biggest converter every month."
Brenda
Pet Wellbeing employee


 

Meanwhile Pet Wellbeing's spam complaints dropped, and the risk of being labeled as spam was resolved.

"We at VKI Studios have always been evangelists for permission based marketing, and we think that this test vindicates our claims. People get caught up in marketing to the widest groups, forgetting that 10% of your customers make up 50% of your sales. By marketing directly to this targeted group—and trying to grow them, instead of just over all customers—you can increase your conversion rate, reduce your costs, and make your profits soar." David
VKI Studios