Challenges: How to Enhance Customer Relationships with Effective Email Marketing Campaigns?
LG Electronics is a South Korean multinational company operating four major business units: Home Appliances and Air Solutions, Home Entertainment, Vehicle Component Solutions, and Business Solutions. The company sought to enhance the promotion of its product lines, including televisions, refrigerators, laundry appliances, and computers, while fostering long-term customer relationships. Hence, managing Customer Relationship Management (CRM) data through targeted email marketing was the project’s focus.
With a total number of customers of around 150,000 contacts and growth potential, LG recognized the opportunity to engage with existing contacts through email campaigns. This approach was intended to utilize email campaigns and refine audience profiling based on campaign insights, ultimately driving traffic to the recently launched LG Online Brand Store. However, without effective email marketing campaigns, identifying and reaching the most relevant audience segments for product promotion posed significant challenges.
Optimizing email marketing performance was the project’s primary objective. Key Performance Indicators (KPIs) set achieved a 98% delivery rate, increased the open rate by 15%, and reached an 8% click-through rate.
Solutions: Improving CRM through Email Segmentation
Email list management and blast campaigns were incorporated into our strategy to enhance deliverability, focusing on contact validation and segmentation. Additionally, we ran blast campaigns through a marketing funnel to achieve targeted open rates and click-through rates. This initiative emphasized schedule management, subject and preview text optimization, and content delivery.
The project commenced with email validation, which included uploading the email list, running an automatic list cleaner, and cleaning up the list. Subsequently, segmentation strategies were developed based on demographics, interests, user stage, email activity, and user behavior. We created content for email activation based on specific campaign objectives such as awareness, consideration, conversion, or loyalty for email activation. Furthermore, we personalized subject lines by including the recipients' first names and interests, as well as creating a sense of urgency to boost the open rate. The final step was scheduling email blasts using the best time feature.
The unique aspects were segmented campaigns based on product interest and dynamic content for A/B testing communication approaches. Additionally, we implemented an email series and interactive email to differentiate our communication strategy from competitors, with interactive email specifically designed to increase click-through rates.
Results: Interactive Email Marketing Campaigns that Deliver Successfully and Drive More Traffic
The project successfully delivered interactive email marketing that effectively conveyed campaign messages. We consistently exceeded delivery rates by 99% each month, ensuring that almost all recipients received the email blasts.
By partnering with Suitmedia for email marketing campaigns, LG significantly increased website traffic to the LG OBS site. The LG team stated, "The quality of email contacts has driven good traffic, as evidenced by the longer average time spent on the website, driven by CTAs to the LG OBS website."
