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Growth Hacking with Email Receipts Is a Huge Missed Opportunity

07 Apr 2014
post
Email marketing with receipts

Email receipts are the easiest way into an inbox, yet they’re the most underutilized form of email marketing.

If you own a brick-and-mortar store, why would you pay for paper that you know customers will throw away or lose? A digital copy, delivered straight to the inbox, is environmentally friendly, easy to find and perfect for a subtle call to action. Email receipts are more convenient and less expensive and are likely the future of email marketing.

For online services and businesses, email receipts are a necessity, but they should also be used for marketing. Just a few years ago, businesses thought of customer service as a cost center; today, customer service is at the heart of the marketing plans developed by most successful businesses. In the same way, email receipts are an opportunity for growth hacking.

Earlier this year, Jack Dorsey, Twitter co-founder and Square CEO, called receipts the next publishing medium. I’m not sure receipts are the cure for the demise of print media, but I agree wholeheartedly with the sentiment. BuzzFeed reported on Dorsey’s comments:

“What if we see the receipt more as a publishing medium – a product unto itself that people actually want to take home, that they want to engage with, be fully interactive with?” Dorsey asked a room of people at the Javits Center today during the National Retail Federation’s annual expo.

“What can we do with this everyday tool?” he said. “What can we build into this canvas that’s actually valuable, that’s independent of the product you just sold? What can you give in this communication channel, this publishing medium, that people want to engage with?”

Dorsey is right: Receipts are a missed opportunity. People want them. People need them. Email receipts are a win-win for consumers and businesses. Let’s take a look at some missed opportunities and then check out a few savvy marketers who are already onto this trend.

Email Receipts: A Sad Tale of Missed Opportunities

A few months ago, I bought a restaurant gift card for a family member’s birthday. I made the transaction online and received this email receipt. It’s functional – if I need a record of the transaction, this works – but it’s also a huge missed opportunity.

uncle-julios-receipt

Here are a few ways this email could have resulted in a little extra revenue for the restaurant.

  • Included calls to action. This email is about as bare as they come. Why not include links to the restaurant’s Facebook and Twitter pages? Why not offer me $5 off my next meal if I sign up to receive regular emails? I mean, at least let me know what this week’s happy-hour deals are!
  • Partnered up with another store. If you sell gift cards on your website, you know people give them as gifts (duh). The people who buy gift cards might need another gift, too. Why not partner up with other businesses in your area to help each other grow? For example, there is a great coffee shop near this restaurant. The restaurant could share a coupon to the coffee shop, and the coffee shop could let people know about the great Mexican restaurant down the road. It’s unconventional, but it could be a very effective way to earn new business.
  • Shown me food porn. I found the photo below on the restaurant’s Facebook page. Why was this not in the email? It makes me hungry, which makes me want to eat there!

food porn email marketing

This restaurant had my permission to email me but missed out on free revenue-generating advertising. Because of constrained resources, small businesses sometimes struggle with marketing. The next example, however, is inexcusable.

That’s right: Apple.

apple-receipt

I dug through my iTunes receipts and learned two things:

  1. I buy too many apps.
  2. Apple sometimes includes marketing on receipts, but not always.

Apple has the luxury of data: The company knows everything about me. Some of its emails use the common (and very effective) “If you bought this, you might like this …” call to action. Apple doesn’t do coupons, so this approach would have made perfect sense. The company gets 30 percent of every app sale, so it would makes sense to promote other apps in the same category. Here are a few other things that could have been done:

  • Pointed me to a retail location. Since Apple has my address, why not take the opportunity to let me know where the nearest Apple store is? Most locations offer free classes, sell loads of Apple accessories, offer device-recycling programs and let customers play with the newest gadgets.
  • Inspired me. Apple’s advertisements have taken a nostalgic turn recently. Videos like this one attract a lot of attention from the technology crowd, but email receipts would be the perfect way to engage the rest of Apple’s customer base.
  • Offered partner ads. What if Apple’s email receipts actually offered ad space to developers? Many apps offer in-app upgrades; this would be the perfect place to introduce new users to those premium features.

These ideas are low-hanging fruit for any business, even for brick-and-mortar stores that don’t currently offer email receipts.

Now let’s take a look at a few companies that use email receipts to their advantage.

Growth Hacking with Email Receipts

Here’s an email receipt I got from Uber recently.

uber-receipt

Uber killed it. And it’s not surprising, coming from an innovative company that has growth-hacked its way to enormous success. Here is an incredible stat from the Uber blog:

Uber spends virtually zero dollars on marketing, spreading almost exclusively via word of mouth. I’m talking old school word of mouth, you know at the water cooler in the office, at a restaurant when you’re paying the bill, at a party with friends – “Who’s Ubering home?” 95% of all our riders have heard about Uber from other Uber riders. Our virality is almost unprecedented. For every 7 rides we do, our users’ big mouths generate a new rider.

Uber understands that the experience is what drives word-of-mouth marketing, but a $20 referral turns many Uber customers into salespeople. It’s a beautifully subtle and effective way to use email receipts for growth hacking. And it’s working really, really well. (Some people are actually running Facebook ads on their own dime to generate Uber referrals!)

LivingSocial includes a referral call to action in its emails as well. The company also promotes its mobile app, which is another important marketing tool.

living-social-email-marketing

SkillShare takes a similar approach.

skillshare-receipt

And Active.com goes BIG on email receipts. This is probably overkill, but no stone is being left unturned in the quest to grow.

active-receipt

If your business offers customers receipts, you have a new marketing and growth-hacking opportunity. How will you use it? Let us know in the Comments.

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Jimmy Daly

Head of Content at Vero
Jimmy runs marketing at Vero and curates the Swipe File newsletter. He's a marketer, writer, outdoorsman and photographer based in Tucson, Ariz.
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  • http://www.lavaboom.com/ Bill @ lavaboom.com

    Really really great points Jimmy, I’m a big fan. Found you on GrowthHackers :-)

    • http://www.jimmydaly.com/ Jimmy Daly

      @disqus_lPFLQOq0Ui:disqus Thanks! We love Growth Hackers. I’m sure I’ll see you there again soon :)

  • http://mikeruman.com Mike Ruman

    Solid work. Gave me a lot to think about with my own business. Thanks!
    – Mike Ruman

    • http://www.jimmydaly.com/ Jimmy Daly

      @mikeruman:disqus Thanks Mike. It’s something we need to think about Vero too. There are just so many hidden opportunities like this.

  • http://customertestimonials.wordpress.com Anupam Bonanthaya

    good one Jimmy. it is indeed a lost “golden” opportunity for marketing if you are not utilizing the email receipts. i love the active.com example with the testimonial. including a social proof goes a long way in reassuring your customers that they are in good company.

  • Doug

    Great ideas! “Chris from Vero” emails are must read!

  • http://jindoulee.com/ Jindou Lee

    I love Chris from Vero. He is the best. We’ve implemented 2 of his tips and can’t wait to see some amazing results!

  • http://workado.com/ Justin McGill

    Great stuff Jimmy – love the concept. Just reading this gave me some great ideas. The examples were great! ;)

  • http://www.chrisbrisson.com Chris Brisson

    awesome post!!

  • Michael Gokturk

    Check out Social Receipts from Payfirma – doing eReceipts before it was cool: http://www.payfirma.com/blog/payfirma-social-receipts/

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  • Adnan

    This is awesome ! Loved the tips :) Great work

  • Mike

    Does anyone know of Shopify apps that could me make an Uber-type email receipt such as described in this post?

    • http://blog.getvero.com Jimmy Daly

      I don’t know that answer but I tweeted them. Hopefully they respond!

      https://twitter.com/jimmy_daly/status/468769153214865408

    • http://blog.getvero.com Jimmy Daly

      Mike – Check out Receitpful. It’s free and integrates with Shopify. (Also, sorry I’m 8 months late with an answer!)

      https://receiptful.com/integrations.html

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  • Michael Gokturk

    Love it! This is why @Payfirma developed Social Receipts – today’s businesses want to reach and engage more customers with every contact. e-receipts are a wonderful way to go: http://www.payfirma.com/blog/payfirma-social-receipts/

  • bsjut

    I don’t understand the perception that Uber is spending “almost 0 dollars on marketing”. If I have a 20USD/20USD referral program, I’m spending very little money on traditional media costs, but I’m spending significant money on marketing if the referral program takes off.

    • http://blog.getvero.com Jimmy Daly

      @bsjut:disqus You raise a good point. They are indeed spending money on marketing, it’s just not so focused on ads/content/social.

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  • Bill Kaplan

    Great post. Many leading retailers have discovered that email receipts are a critical customer retention tool, which pays for itself many times over. The only problem, however, which is easily solvable, is that retailers typically experience error and bounce rates ranging from 10% to 50+% of the email addresses collected through their POS systems. That’s a lot of customers to miss!

    The key to optimizing your email receipts program is to utilize a real-time service that will block problematic addresses, correct hygiene errors, and validate the deliverability of each email address registered BEFORE you message these or enter these into your marketing database. Excessive spam complaint or bounce rates can bring your entire email marketing program to a halt so marketers need to ensure they have the proper protocols in place before turning the switch on their email receipts program.

    See http://www.freshaddress.com/services/email-validation/ for further information on how leading email marketers are leveraging their email receipts programs and ensuring that their emails are safe to send.

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  • Justin

    Nice article Jimmy. Have a look at TillSlip.com. Plug and play hardware that is POS system / printer agnostic and enables the receipt as an advertising medium, both in analogue and digital forms.

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