Group assignment report subject management information systems topic maketing automation system and the shutterfly case study

Data flow of Email Marketing pratice — The second stàe...- nhe 10 Figure 7, Designing Analytics Tools Interface ím the webDsIf€.... In this paper, our purpose is to suggest some ideas fr

VIETNAM NATIONAL UNIVERSITY, HO CHI MINH CITY

UNIVERSITY OF TECHNOLOGY

OU

GROUP ASSIGNMENT REPORT

Subject: Management Information Systems

Topic: Maketing Automation System and the Shutterfly Case Study

Lecturer: Dr Pham Quốc Trung

Class: CC02

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LIST OF FIGURES

Figure 1 The controversial email of Shutterfly ánh HH HH HH HH ng Hà 4 Figure 2 Shutterfly's 00 a1 8n nh 6 (43 4 Figure 3 Top email marketing challenges - 11 HH 1 H2 1H HH HH ng tu 7 Figure 4 Entity relatonshIp điagraim c1 HH HH HH ng HH tà Hhệt 8 Figure 5 Data fow of collecting targeted customers — The Íirst stage nhe 9 Figure 6 Data flow of Email Marketing pratice — The second stàe - nhe 10 Figure 7, Designing Analytics Tools Interface ím the webDsIf€ nh Hướ 12 Figure 8 Users” Interface In [esktOp Án HH HH HH HH nh HH nh ng HH 12 Figure 9 Users” Interface mm LapPVOP cà SH H12 1111111 1 HH HH HH 13 Figure 10 Users” Interface In TabÏet - nh HH HH HH gà HH HH HH 13 Figure I1, Users` Interface in Mobile Phone c2 St nh HH H10 11111112 13 Figure 12 Users’ Interface In OVeralL ch HH HH ng HH HH HH HH ch tt 14 Figure 13 Customer Data rom users” r€g1S(rALIOH nh H HH HH HH rệt 14 Figure 14, The speadsheet included customers” emails and reSuÏL - si St v v2 tre 17 Figure 15 Integrated marketing database nọ HH HH HH HH HH HH Ho HH ng 17

INTRODUCTION

Nowadays, email has evolved from simple messages between academics to a widely used technology worldwide Global email users are expected to reach 4.3 billion in 2022 (Statista, 2021) In 2025, this number is projected to increase to 4.6 billion, accounting for more than half

of the projected global population Moreover, in 2022 alone, 333.2 billion emails are expected to

be sent and received each day That is a startling number of emails sent each day By 2025, this amount is anticipated to reach above 375 billion This email marketing data will probably show that the practice is expanding

The Widespread Usage of Email

$42 for every $1 spent (DMA, 2019) According to some reports, the average email open rate is 20.81% However, if companies personalize their emails, they will begin to see the tremendous impact that personalization can have Emails with personalized subject lines get 50% more opens (Yes Lifecycle Marketing, 2019) According to Martech Advisor’s 2017 data, including videos

in welcome email can increase click rates by 300% When asked how frequently they would like

from their favorite brands on a weekly basis (Statista, 2017)

From our understanding, we choose the topic of marketing automation system because of its potential growth In this paper, our purpose is to suggest some ideas from system analysis to solve the issues of Shutterfly that faced severe situation related to email marketing techniques, display system design that is associated with system requirements and database and find the way that help business seize opportunities to grow in modern and highly dynamic environment Due to lack of resources and inadequate knowledge, our report has many shortcomings which we did not realize We look forward to hearing from you any feedback that can help us impove the quality of the next paper

1 OPENING CASE

1.1 Introduction

Shutterfly, LLC is an American photography, photography products, and image sharing company, headquartered in Redwood City, California The company is mainly known for custom photo printing services Customers also know Shutterfly through its icon products and services such as home decor (mugs, dinner plates, wine glasses), photo books (family, wedding), gifts (Christmas ornaments, Graduation gifts), etc

Founded in 1999, the company went public in 2006, and returned to private ownership in

2019 after being acquired Until now, the Shutterfly family of brands together make up the leading e-commerce and manufacturing platform for personalized products and custom design By helping people express themselves through personalized goods and custom designed products, Shutterfly wants to make life’s experiences unforgettable, enable them to capture the moments that reflect who they are’

1.2 Problem

One of Shutterfly's target customers is mother and baby In May 14, 2014, Shutterfly accidentally sent out a mass email, not only on its target customers but the other also received the similar email, congratulating them on their new baby The email seems to have

been sent in error, resulting in some confusion and in some cases, hilarity And this mistaken

have produce a controversial argue on the social media Some laughed loudly because they thought it was a joke But for some, who have struggled with infertility or miscarriages were outraged and didn't appreciate being reminded by Shutterfly of the photos Immediately, the company apologized in a statement and individually to hundreds of people on Twitter, but things seem to be getting out of control

This episode significantly harmed the company's long-established reputation Since then, Shutterfly orders have significantly decreased as a result of customers' negative perceptions

of the brand And as a result, the corporation had a poor year in 2014 in terms of revenue

* Wikipedia Source: https://en.wikipedia.org/wiki/Shutterfly

WELCOME TO SHUTTERFLY Unda,

Please accept our most sincere apologies We mistakenly sent There's nothing more amazing than bringing an email thet wes intended only for new parents who recently

a new life into the world, As a new parent made baby-related purchases at Shutterfly We're truly sorry if

you received this email in error We realize this is a very

jou're going to find more to love, more

E% you're going to find more to love, more to sensitive issue and we did not mean to upset you in any way

give and more to share—we're here to help

We care about our customers above all else and have taken

<a you every step of the way measures to ensure this will not happen again If you have any

questions or concerns, please reach out to us at

> customerservice@cs,shutterfly.com and we'll get back to you

“đà Now it's time to send thank you

Sincerely,

Chief Marketing Officer

Figure 1 The controversial email of Shuterty ne

Shutterfly Figure 2 Shutterfly's apology email

2 EVALUATE THE SYSTEM

2.1 Marketing Automation

One of the ways to doing repetitive marketing tasks is through Marketing Automation, and that is also the way Shutterfly schedules campaigns, automate common responses and personalize the messages or content prospects to its customer

Marketing automation uses software to automate monotonous marketing work Marketing departments can automate repetitive tasks such as email marketing, social media posting, and even ad campaigns - not just for the sake of efficiency, but also to provide a more personalized experience for their customers

However, a critical weakness of this system lies in its automation, and this will be analyzed

in more detail in the following sections

2.2 Email Marketing

Email Marketing is one of many steps in implementing the Marketing Automation at Shutterfly Through this type of approach, the company can reach targeting customer and promote them suitable products or services

Email Marketing is a form of using email to bring information about sales, marketing, and product introduction to potential customer groups that businesses are targeting Unlike the

marketing method of spamming email, Email Marketing is aimed at customers who have been targeted and researched before

Email Marketing's long-term goals are to foster brand loyalty and consumer growth In addition to re-reaching old customers, email marketing can also help connect with new customers to promote the image of products and services of the business

Types of Email Marketing:

The four main types of audience segmentation include:

Having been implemented, an unanticipated issue in the data management platform (described in more detail in the following sections) caused other customer groups, including those who weren't Shutterfly's target market, to be shortlisted for the email list Because of automation, very little inspection was carried out, which consequently led to the unfortunate

incident

3 SYSTEM ANALYSIS

3.1 Define system users and their goals

Through in-depth analysis, analysts can uncover errors in code, accessibility issues for end- users or design incompatibilities With a systems analysis, considering the goals of the system is important for solving problems and creating efficiencies However, before conducting further analyses, the most essential thing is to define system users The concept of system users is different from customers who buy the product of Shutterfly company System analysts rely on information provided by system users, who are involved in all phases of the system’s development process We define the users of this marketing automation system as the personnel of the marketing department Due to lack of resources, we choose to study documents to collect system requirements and consider system user goals

Email marketing is a potent medium, but it also raises a lot of issues and challenges A recent survey by Clutch indicates that despite emails’ continued popularity among consumers, email

marketers are having trouble expanding their audiences Clutch asked 303 email marketers (69% B2C) from businesses with at least 100 workers to list the top three obstacles they are currently facing Although none stood out significantly above the others, subscriber list growth was the most frequently mentioned major issue Subscriber list growth was in second position overall among all problems, only behind targeting and segmentation, when tracking results of using email marketing was placed in the top 3

Targeting & segmenting ie 07

Integrating email tools with CRM (i 25°,

Finding, creating content Po easaa 21%

Increasing open rates [ADN 20%

Not having enough resources I 3 6 0/

Figure 3 Top email marketing challenges

To offer solutions for these challenges, we suggest some ideas that can address these issues The first one is to think segmentation The second one is to practice good email list hygiene

in order to improve deliverability The final one is to earn email subscribers Companies must not purchase email lists, but they are clear to their target market about what they will get out

of subscribing to companies’ emails

3.2 Data modeling

Before building data flows, the company must define which data is needed to collect and then build the system The figure above shows the relationship between entities and attributes of each entity They can understand the foundations of the data/information that is going to be stored within their database The ERD also helps the database designer identify the data and rules that are represented and used in a database, especially when used for data modeling The most important entities are customer and lead The company can collect the two entities’ attributes via website and social media ERD provides vehicles to collect target or potential customer data in a useful way and to capture requirements of a system or a problem domain

Social media visit weosite times

PK | facebook_|D click link times

Figure 5 Data flow of collecting targeted customers — The first stage

In the second stage, email marketing is activated by checking customer segmentation to see whether it matches with the campaign After personalized invitation emails are sent to invite target customer, there are three situations: (1) Accept, (2) Decline, and (3) No Response If they accept the invitation, the system is going to send them welcome emails and then notify salesperson to place a follow-up call After that, the system sends them an SMS reminder the day before the event If they decline, the system is going to send them retention emails and then move their email address out of the campaign If they do not respond to invitation email, the system is going to run display ads on a social media page for seven days or more If it works, the system moves them into green stream If it does not work, the system moves them into red stream With a single platform, the user can run many campaigns automatically at

the same time for different segments of their customer database, across different stages of the

customer lifecycle and across different parts of the business

without confusion

The differences between a great form and a bad one can be almost too subtle to notice or even be completely counterintuitive (Appendix A)

- Comparision between old and new version

Surveys Don’t ask customer, focus on|Do surveys to make

important information customer segmentation Reliability Form is simple so it makes | Attractive and customer can

customer more boring When | easily change their options they are filling forms

b Report

Benefits to the pursuit of designing report (Appendix B) By gaining access to the insights and data, report can help:

Improve company’s best response time

Prevent callbacks about a repeat issue

Reward top-performing agents and boost internal morale

Track the level and nature of issues overtime to make informed strategic decisions Gain a deeper insight into how the company is perceived by customers Evaluate and improve net promoter score (NPS)

Enhance priceless retention and loyalty rates

Make Customer Service department more effective by reducing costs

Understand customers’ preferred channels of communication

Plan staffing schedules and spot the need for training

Identify areas for product improvement