Roxio Grows Yearly Email Revenue by 7%

Reduces Sending Volume and Increases Segmentation

Roxio, a division of Sonic Solutions, is the world’s leading provider of consumer digital media creation applications and produces innovative, easy-to-use products and media services that empower people to create, manage and share their digital media.

Problem:

Batch and Blast + Limited Segmentation = Email Revenue Plateau

Results from Roxio’s email program had flattened over time. In the past, Roxio had achieved success by leveraging the same creative to similar subscriber lists; however this method was no longer producing an optimal lift in revenue.

Need:

An Email Program Re-Charge

Roxio needed to re-examine their email program from start to finish—data collection and preference options, segmentation strategy, email creative, and frequency. The approach focused on spending more time messaging to subscribers based on their stated preferences and observed behaviors, and less time sending “one-message-fits-all” emails to their entire list.

Solution:

Vertex’s Lifecycle Messaging Strategies & Segmentation Tools

Roxio tapped the Vertex account team to help them better understand their customers’ needs and to solidify a messaging strategy that addressed those needs at each stage of the customer lifecycle. Roxio modified their signup process to gather more specific stated subscriber preferences, including frequency and content options. They also enhanced the process of placing new and existing subscribers into segments based on product version, which allowed Roxio to further populate emails with dynamic content and bundled offers based on the specific software owned by each customer.

Next, Roxio examined engagement and behavioral data by digging into past purchases, date of last login/purchase, and open and click statistics. This analysis identified opportunities to further segment subscribers and send the most relevant messages based on their observed behavior. In some cases, these messages include win-back and reminder campaigns to retain and re-engage subscribers who may be drifting.

Lastly, Roxio refreshed their email templates, imagery and overall creative strategy. They now update the look and feel weekly—incorporating stronger calls to action, more lifestyle, product, and user interface images as opposed to using creative multiple times and highlighting box shots of the product, which had previously been part of their creative strategy.

Results:

Savings on Email Sending, Plus Greater Email Revenue

Based on subscribers’ frequency preferences and observed engagement with the brand, Roxio ultimately sent half as many emails in 2008 as they did in 2007. This allowed them to save money on sending costs, preserve existing subscribers by targeting them with more relevant messages, and increase year over year email revenue by a total of 7%.