Digital Strategy: Comprehensive Summary for Study PDF

**Digital Strategy: Comprehensive Summary for Study** **1. Define the Challenge and Audience** **1.Business Aspirations** To define a strategy, it is crucial to identify the overarching goals and aspirations of the business. Examples of aspirations include: - Regaining brand greatness. - Be...

**Digital Strategy: Comprehensive Summary for Study** **1. Define the Challenge and Audience** **1.Business Aspirations** To define a strategy, it is crucial to identify the overarching goals and aspirations of the business. Examples of aspirations include: - Regaining brand greatness. - Becoming the leading company in the industry. - Achieving significant increases in market share (e.g., 5% or 10% in a fiscal year). **2.Setting Clear Objectives** Establish measurable marketing objectives to align with business aspirations, such as (SMART): - Revenue growth. - Enhanced profitability. - Market share improvements. **Role of Digital Marketing in Market Penetration** Digital marketing helps increase market penetration by: - Finding new consumers to broaden the customer base. - Increase frequency. Encouraging existing customers to purchase more frequently. - Increase basket value. Upselling higher-priced versions of products and cross-selling complementary items. **Key Areas to Improve:** - **Physical Availability:** Ensuring customers can easily access the product or service when needed. - **Mental Availability:** Building top-of-mind awareness so customers recall the brand in purchasing situations. **3.Setting Actionable Communication Challenges** Develop communication strategies that resonate with the target audience. For example: - Encourage families with children to purchase more fruits and vegetables. - Increase the average basket value by a defined amount (e.g., €3 per visit). - Use verbs like empower, inspire, and motivate to create compelling campaign messages. Full example: \ 1) Set business aspirations: Marketshare (revenu, profitability) 2\) Set clear marketing objectives: Increase average basket by 3 euros/visit 3\) Set an actionable communication challenge: Encouraging families with children to buy more fruit and vegetables. **2. Value Proposition Framework** **Research and Diagnosis** A well-defined value proposition begins with research: 1. Analyze the customer base through interviews and feedback. 2. Conduct market research to identify trends and competitor insights. 3. Exclude segments that don't align with the business goals. **Techniques to Build a Strong Value Proposition:** 1. **The Five Whys:** - Repeatedly ask "Why?" to identify the root cause of customer problems and refine the strategy accordingly. 2. **Features, Benefits, and Experience:** - **Features:** The tangible aspects of a product (e.g., "This coffee maker has an auto-brew timer"). - **Benefits:** The advantages gained by the customer (e.g., "Wake up to fresh coffee every morning"). - **Experience:** The emotional response customers have when using the product or service (e.g., "Feeling confident after consulting a financial advisor"). **Addressing Substitutes, Fears, Needs, and Wants** - **Substitutes:** Highlight unique selling points to differentiate from alternatives. - **Fears:** Address concerns such as fear of loss, making mistakes, or the unknown.What fears can hold potential clients back from buying your product/service. **Needs:** Rational needs include saving time, gaining control, or accessing information, entertainment. - **Wants:** Emotional drivers like belonging, curiosity, or scarcity influence decision-making. **3. Setting Up the Funnel (belongs with actionable communication challenge)** **The Digital Funnel** A structured funnel helps track and optimize the customer journey through the following stages: 1. **Awareness (Top of Funnel - TOFU, the see):** - **Goal:** Create visibility and attention. - **Audience:** Anyone interested in the product or service. - **KPIs:** Impressions, reach, and ad recall, views, reach, brand measures 2. **Consideration (Middle of Funnel - MOFU, the think):** - **Goal:** Encourage engagement and evaluation. Show USP's, reasons to believe and more rational arguments. **Audience:** Potential buyers looking for solutions. - **KPIs:** Clicks, CTR (click-through rate), CPC (cost per click), and website engagement metrics. 3. **Conversion (in e-commerce)(Bottom of Funnel - BOFU, the do and care):** - **Goal:** Turn interest into action, such as purchases or lead generation. - **Examples:** Online purchases, test-drive requests, or trial sign-ups. - **KPIs:** Sales, subscriptions, and lead conversions. 4. **Loyalty and Advocacy:** - **Goal:** Retain customers and encourage repeat purchases.This stage focuses on turning customers into repeat buyers and brand advocates.Frequency, up sell, cross sell - Audience: Client database - **KPIs:** Retention rates, customer satisfaction, and advocacy metrics. **Customization Examples:** - **Tesla:** - Awareness: Generate excitement and position Tesla as the future of mobility - Consideration:Educate potential buyers on Tesla\'s technology, performance, and benefits over traditional cars - Conversion:Make the purchase process seamless and incentivize immediate action. - Loyalty: Cultivate a passionate community and retain customers through exceptional ownership experience. - Advocacy: Turn drivers into brand advocates who actively promote Tesla. **Unibet:** - Awareness: Maximize brand visibility and associate Unibet with exciting sports moments. - Consideration: Convince potential customers that Unibet offers the best value - Conversion: Make the registration and deposit process quick, secure, and rewarding. - Loyalty: Retain existing customers and encourage repeat betting activity. - Advocacy: Turn satisfied customers into brand advocates who recommend Unibet to others. **4. Metrics and Examples Across the Funnel** **Awareness Metrics** - Brand impressions and reach. - Ad recall rates to measure visibility and interest. **Consideration Metrics** - Website engagement metrics: Clicks, CTR, and CPC. - Content interaction metrics such as downloads or video views. **Conversion Metrics** - Sales: Direct purchases through e-commerce. - Lead generation: Email subscriptions, test-drive requests, or trial sign-ups. - Secondary conversions: App downloads, push notification opt-ins. **Loyalty Metrics** - Repeat purchase rates and upsell opportunities. - Advocacy through customer testimonials, referrals, or community engagement. **5. Actionable Strategies for Implementation** **Creative Messaging Verbs** Use dynamic and action-oriented verbs to guide campaign goals. Examples include: - Empower, ignite, and motivate for inspiration. - Engage, collaborate, and support for connection. **Connecting Rational and Emotional Drivers** - Address rational needs like saving time or accessing information. - Explore emotional drivers like curiosity, belonging, or scarcity to resonate deeply with audiences. **Continuous Optimization** - Use metrics from each funnel stage to refine campaigns. - Test new strategies based on customer feedback and market trends. See metric, KPI\'s  **KPI** **Description** --------------------- ---------------------------------------------------------------------------- Impressions / Views Number of times an ad is seen or viewed. So on the external platform Reach The reach or number of unique people saw the ad (not equal to impressions) Share of Voice Relative share of voice compared to competitors Share of Search Ad recall The ability of people to remember your ad after they saw it CPM Cost per 1000 impressions View rate Number of people who viewed your entire video ad vs total people who were CPCV Cost per completed view (mostly on video) Think metrics, KPI\'S **KPI** **Description** ----------------- ---------------------------------------------------------------------------------------------------- Clicks People who click our ad or click on external links leading to our website. CTR Click-through-rate: number of people who click the ad / impressions on that ad. CPC Cost per click. Website visits Number of visits to our website. Engagement rate The share of website visitors that in some way engage with our website (opposite of "bounce rate") Do metrics, KPI\'s **KPI** **Description** --------------------- ---------------------------------------------------------------------------------- Conversions / Goals Depending on the strategy, the core point of online conversion. Leads Leads (people who left contact details on your website) CPA Cost per acquisition or cost per lead RoAS Return on ad spend: the return we get in terms of sales out of every euro spend. Online sales Number of visits to our website. Connversion rate The share of website visitors who "convert" to the next stage CARE metrics: KPI\'s KPI Description ------------------------------------ ------------------------------------------------------------------------------------------------------------------- Repeat Purchase Rate The percentage of customers who make a second purchase from your business. Customer Lifetime Value (CLTV) The total revenue generated from a single customer over their entire relationship with your brand. Churn Rate The percentage of customers who stop doing business with you over a specific period. (You want to minimize this). Customer Retention Rate The inverse of churn rate - the percentage of customers you retain. Net Promoter Score (NPS Measures customer loyalty and willingness to recommend your brand to others. Customer Satisfaction Score (CSAT) Measures customer satisfaction with a specific interaction or experience. Social Media Engagement Likes, shares, comments, and mentions related to your brand on social media platforms. Reviews and Testimonials The number and quality of online reviews and testimonials from customers. Referral Rate The percentage of new customers acquired through referrals from existing customers. Brand Advocacy Activities Participation in loyalty programs, user-generated content creation, and engagement with brand communities.