About The Company, Zagg
Zagg Inc. is a publicly traded company based in Utah, UNITED STATES. It is best known for its line of protective coverings for consumer electronic components and hand-held devices under the brand name Invisible Shield.
The company’s flagship product, the invisible Shield, was created by Phillip Chipping, who then formed Protective Solutions, Inc. in March 2005 and started selling the Invisible Shield product online, and in locally owned gadget retailers. The company began in a back yard shed, by selling $200 worth of goods per day. A few months later, in September 2005 (two weeks after Apple had released the first iPod Nano) the company sent out a press release announcing their concept of offering full-body gadget protection and clear protective film as a new alternative to bulky cases. Due to the high level of response, zagg began to design chassis Invisible Shields for many different types of electronic gadgets.
The company changed names to become Shield Zone Corporation in March 2006 and then again to Zagg Inc. In November 10, 2009; it was listed on the NASDAQ Market. In 2011, the company acquired IFrogz.
Zagg is an innovation leader in mobile technology accessories for smartphones and tablets. For over 10 years, company has developed creative product solutions that enhances and protects mobile devices of consumers across the globe. The Company has an award-winning product portfolio, which includes screen protection, mobile keyboards, power management, cases, social tech, and personal audio sold under the Zagg, Invisible Shield, mophie, and iFrogz brands.
Established to act as a foundation for the company, there are three corporate objectives and seven significant core values that guide Zagg daily:
- The Preferred Brand
- Creative Product Solutions
- Targeted Global Distribution
- Care for People
- Continuous Improvement
- Sense of Urgency
The corporate objectives calibrate the functional team’s goal and execution. Every Zagg employee is trained to understand their roles and duties in executing these objectives. Each core value acts as a key fundamental in working towards Zagg’s main objective of rendering creative product solutions by executing targeted global distribution, and being the preferred brand for its customers. While Zagg is renowned as a global leader in mobile accessories and an entrepreneurial company with a humble attitude hankering to earn its customers’ trust every day. The primary objective of Zagg was to boosts customer’s appreciation through their Email marketing campaign.
The company Zagg has helped myriads device-lovers cosset their gadgets and gizmos. The mobile accessories company boasts a slew of products spanning from tablet keyboards to screen protectors or guards’
The brand’s profusion of such products in the form of high inventory levels, which led to a promotion opportunity.
While in past Zagg tackled high inventory via discounts, buy one and get one free and bundle promotions, but the team had something else in mind this go ’round.
“We wanted not only do something different, but we wanted to show our customers that we appreciate them,” elucidated by Jessica Andreasen, Email Marketing Manager, Zagg.
However, Andreasen added the team, but unfortunately the company couldn’t remain profitable just by simply passing out the extra products to customers for free of cost. Zagg’s challenge was creating an Email Marketing Campaign that helped solve the issue of high inventory, continue to earn revenue and most importantly show appreciation to its loyal customers.
Strategies Adopted By Zagg
To shake things up while showing thanks, the team ran an Email Marketing Campaign exclusively to existing Zagg customers,by promoting a free gift with the purchase of $9.99 or more.
Customers were divided into three segments:
- Customers over one year
- Customers over two years
- Customers over three years
Each segment was offered three unique gift products, the items increasing in value with the number of years the customer had been with ZAGG.
“It’s a win for our customer, it’s a win for our inventory levels and for our revenue, so it just made us sense.
Step #1. Select products for each customers segment.
By categorizing past purchasers into three tiers, the team was tasked with selecting the gifts to offer each of the sections.
They decided upon three gifts per segment (increase in the value of higher the tier), allowing longer customers the option of choosing from the lower tier products, as well:
- 1 year
- iPhone4 & 4S Universal Soft Gloss Cover — Clear
- Ear Pollution Luke Mico Bud with Mic — Smart Blue
- Ear Pollution Ozone — Silver/Black
- 2 years
- Ear Pollution Plug z Ear buds with Mic — Orange
- iPhone 4 & 4S Bullfrog Cover — Black/Green
- iPod Touch 4 Soft Gloss Cover
- 3 years
- Ear Pollution Comfort Series 40 — Green Chroma tone with Mic
- iPad 2 Backbone — Clear — Case
- Ear Pollution Ozone Ear buds with Microphone — Red/Chrome
During the selection process, Andreasen said the team wanted to make sure the gifts appealed to a wide array of customers. While there were few device specific options like iPhone covers, there were other device neutral products such as the earphones as well.
“I always made sure that there was some set of universal product within each of the tiers,” she explained.
Step #2. Design the body of an email.
The team aspired for the Email Marketing Campaign to exude gratitude, so the blue print and copy of the email portrayed an appreciative tone.
“The way that you communicate with your customer can make such a great difference,” Andreasen said. “So we took the approach of, ‘Thank you so much. We appreciate you — enjoy this compliment gift’ rather than, ‘Spend this and get this.'”
Below a large header reading, “Thank you for being a loyal customer. (First Name), thank you for being a ZAGG customer for over (1,2 0r 3) years! We’re so happy that you’re a part of the ZAGG family and want to celebrate or jubilate by giving you a gift. For the next few days, with a purchase anything on our site over $9.99 and choose any one of the below following items for free!
A button at the bottom of the email labeled “Choose Your Gift” directed customers to their corresponding gift landing page.
Step #3. Include a sense of urgency with each email send as an incentive.
Beginning in March of 2013, zagg sent its customer appreciation emails a total of four times. The Sends [emails] were spaced out every six weeks, and the gift offers were made available for only a week at a time to crave a sense of urgency, Andreasen explained.
Minor adjustments were made to the existing campaign along the way due to some of the products running out of stock. The team recognized the popularity of headphones and due to the deal at hand, the gift choices that had the higher price points.
This even gave the team an impression into which items Zagg customers liked the most, arming the team with helpful data to use in future campaigns as far as which products to market, Andreasen explained.
“Being able to do [the sends] a few times helped us see what products people are most interested in,” she said. “It was helpful for future marketing purposes.”
Zagg’s customer appreciation campaign produced these metrics:
- 152% increase in revenue-per-email sent
- 252% increase in average conversion rate.
“To see the revenue-per-email and the conversion rate increase rapidly was awesome,” Andreasen said. “My goal has been to try and find messaging and email promotions that are more suited to our customers.”
She added the team found it fun to watch the campaign take flight, witness gifts sell out and glimpse the buzz created on social media.
They saw customers tweeting screenshots of the ZAGG emails, compelling their excitement about the campaign — and gifts, of course.
The team attributes the campaign’s overall prosperity to the Email Marketing Campaign .
Andreasen said it was the approach of “thank you” that made all the difference for the company (zagg).
“It’s more of a relationship thing than a selling tool, “And I think that really helped in accomplishment” of this campaign.”
A simple “thank you” can make all the difference. By showing your customers you appreciate and acknowledge them is essential in enhancing your relationship.
Discovery of how this top mobile accessories company utilized gracious emailing in a promotion that lifted revenue-per-email to 152% and increased the average conversion rate by 252%.
Email Marketing is all about building and maintaining relationships with customers. The way you do that is by giving them what they are looking out for.