As e-mail grows as a business tool, event-based marketing also grows as a powerful strategy. A new report from technology firm Kefta Inc. demonstrates that communications triggered by certain events can be a powerful way to drive results.

The December 2003 research, based on interviews with Kefta clients, highlights results from triggered e-mail communications. For example, if customers abandon their online shopping carts before making a purchase, triggered e-mails asking them to return and take action achieved a 70-85 percent open rate and click-through rates of 15-45 percent. Conversion rates came in 2 to 10 times higher than non-triggered e-mails. "On average, triggered communications get anywhere from two to 15 times better results," says Kefta CEO Philippe Suchet.

Customer referrals also can be significantly improved by an event-triggered e-mail, the Kefta study shows. When a request for referral is sent to someone who has just taken some action -- received a product or completed a survey, for example -- the response rate soars. "We are seeing open rates of two to two-and-one-half times higher than in a referral e-mail campaign," says Suchet. In addition, he adds, "the referral rate itself is four times higher, so the total result rises as high as 14 times greater than a standard e-mail."

Behind the numbers
Liz Roche, VP at Meta Group, is not surprised by the results. "Essentially, triggered campaigning is another form of lead qualification," she says. "You are modeling customer behavior and generating a communication based on the most likely behavioral profile. Open rates and click-through rates are generally atrocious when not driven by some customer need."

Roche cautions, however, that the numbers must be analyzed carefully. "I am often skeptical of conversion rates, because the denominator can be selected incorrectly," she notes. "Faulty numbers can set unreasonable expectations -- and then the marketer unnecessarily considers the campaign a failure if it doesn't perform as billed."

Communication in action
The financial services space so far has taken the lead on event-based contact efforts. For instance, Westpac, one of Australia's largest retail banks, uses the strategy to pinpoint and predict consumer bankruptcy. It uses a series of variables to identify changes in investor behavior, then communicates suggestions or relevant product offerings when accounts reach certain trigger points.

In addition, U.S.-based Sovereign Bank implemented a system that tracks specific customer behavior by flagging substantial uncharacteristic deposits or withdrawals, and alerting branch managers to intercept the customer before he makes a definitive move. "It gives us an opportunity to sit across from the customer and change that relationship," says Aaron Garner, senior VP, strategic marketing at Sovereign Bank. The bank saw an 8-percent growth in deposits, surpassing its 4-percent growth goal.

Getting started
As a result of Kefta's experience with event-based campaigns, Suchet offers some guidelines for setting up a successful triggered program:

• Get the right people involved from the beginning. "The strategy needs to be driven from senior levels, because only they can effect cultural change," Suchet explains. In the initial planning meetings, be sure that representatives from both the communications and product marketing teams are present. They are the ones who can best identify the right triggers and the methods to drive customer action.

• Group customers and prospects according to the deepest insight possible. Are they impulse buyers? Price-sensitive shoppers? These answers will drive the kinds of stimuli required. Then, group them based on value, so you can adjust the stimulus at the appropriate level to ensure profitability.

• Begin communication with proven triggers. First, an expression of interest, such as a visit to a store or Web site. Second, a purchase. Third, an inbound communication, such as a customer service call.

• Develop new triggers by analyzing current sales and marketing practices. Visit with sales people to find out the triggers they use in the natural course of selling. Then automate these.

• Test, and test again. "Assume you don't know the answers," says Suchet. "Let the customers tell you."