Note 2.pdf

Suneth Senadheera Module I Introduction to Digital Marketing Local and Global landscape of Social, Online and Digital Marketing Understanding the scope of online marketing Today’s Topic Understanding the Online Marketing Ecosystem Digital Media Objectives VS Marketing Objectives C...

Suneth Senadheera Module I Introduction to Digital Marketing Local and Global landscape of Social, Online and Digital Marketing Understanding the scope of online marketing Today’s Topic Understanding the Online Marketing Ecosystem Digital Media Objectives VS Marketing Objectives Customer Relationship Management Revenue Models Understanding Consumer Behaviour in Online Marketing Digital Media Objectives VS Marketing Objectives Digital Media Objectives focus specifically on what can be achieved through digital channels. These include increasing website traffic, improving social media engagement, enhancing email open rates, and boosting online sales conversions. Marketing Objectives, on the other hand, are broader and encompass all channels (both online and offline). These might include increasing brand awareness, improving customer satisfaction, gaining market share, and driving overall revenue growth. Example: Marketing Objective: Increase overall brand awareness by 30% in the next year across all platforms, both digital and traditional.  if you are going to define objectives and goals closely, how should you do this? The relationship between vision, goals, objectives and KPIs The relationship between vision, goals, objectives and KPIs Vision Goals Objectives KPIs A high-level statement of are broad aims to show Specific SMART Key performance how digital marketing will how the business can objectives to give clear indicators (KPIs) are used contribute to the benefit from digital direction and commercial to check you are on track. organisation. channels. They describe targets. Objectives are KPIs are specific metrics how your digital the SMART targets for which are used to track marketing will contribute digital marketing which performance to make to the business in key can be used to track sure you are on track to areas of growing sales, performance against meet specific objectives. communicating with your target. They are sometimes audience and saving known as performance money. drivers or critical success factors for this reason. Setting Goals and objectives grow sales through wider distribution to customers you can’t service offline, Sell or perhaps through a wider product range than in-store, or better prices. add value by giving customers extra benefits online, deliver customer service by ‘web self-service’ or social media and inform them of product Serve development through online dialogue and feedback, for example in blogs or customer communities. An alternative way of get closer to customers, learn about their interests by monitoring them thinking through the through web analytics and social media monitoring, asking them questions broad goals of digital Speak in surveys and, creating a dialogue in online customer communities or marketing is to review panels. the 5Ss save costs of customer service, sales transactions and administration, print and post. Can you reduce transaction costs and therefore either make online Save sales more profitable or use cost savings to enable you to cut prices, which in turn could allow you to generate greater market share? extend the brand online. Reinforce brand values using interactive digital media and content. Develop an online value proposition which can help Sizzle inform or entertain customers in ways which aren’t possible in traditional media. Key Objective For Digital Marketing Online revenue Allowable cost per Online promotion contribution acquisition contribution An assessment of the A target maximum This is an assessment direct contribution of cost for generating of the proportion of the Internet or other leads or new customers (new or digital media to customers profitably. retained) who are sales, usually influenced and expressed as a reached by online percentage of communications. overall sales revenue. Setting SMART objectives Specific Is the objective sufficiently detailed to measure real-world problems and opportunities? Measurable Can a quantitative or qualitative attribute be applied to create a metric? Actionable Can the information be used to improve performance? If the objective doesn’t change behaviour in staff to help them improve performance, there is little point in it! Relevant Can the information be applied to the specific problem faced by the manager? Time-related Can the information be constrained through time? Here are some typical examples of SMART objectives, including those to support goal setting in customer acquisition, conversion and retention categories for digital marketing strategy: Examples of SMART Objectives Digital channel contribution objective Achieve 10 per cent online revenue (or profit) contribution within two years. Acquisition objective Acquire 50,000 new online customers this financial year at an average cost per acquisition (CPA) of £30 with an average profitability of £5. Acquisition or conversion objective Migrate 40 per cent of existing customers to using online ‘paperless’ bill payment services within three years (e.g. for a bank or utilities company). Acquisition objective Increase by 20 per cent within one year the number of sales arising from a certain target market, e.g. 18–25-year-olds. Examples of SMART Objectives Conversion objective Increase the average order value of online sales to $42 per customer. Conversion objective Increase site conversion rate to 3.2% (would be based on model of new and existing customers in different categories). Conversion objective Increase percentage of online service enquiries fulfilled online by ‘web self-service’ from 85 to 90 per cent. Retention objective Increase annual repeat new customer conversion rate by 20 per cent. Retention objective (existing customers) Increase percentage of active users of the service (purchasing or using of other electronic services) within a 180-day period from 20 to 25 per cent. Examples of SMART Objectives Retention objective Increase customer satisfaction rating for channel from 70 to 80 per cent. Growth objective Increase propensity to recommend online service from 60 to 70 per cent. Penetration objective Achieve first or second position in category penetration in the countries within which the company operates Cost objective Achieve a cost reduction of 10 per cent in marketing communications within two years. Improve customer service by providing a response to a query within two hours, 24 hours per day, seven days a week.  Services- Transactional e- orientated commerce site relationship- Different forms building website of digital presence Brand-building Portal or media site site identifies different types of online presence which each have different objectives and are appropriate for different markets. Social network or Mobile Apps community site Customer Relationship Management (CRM) CRM involves managing a company's interactions with current and potential customers, using data analysis to improve business relationships. The goal is to enhance customer retention and drive sales growth by understanding customer needs and behavior. Example: A retail company uses a CRM system to track customer purchases and preferences. By analyzing this data, they can personalize marketing emails with product recommendations, offer exclusive discounts on items the customer has shown interest in, and provide tailored customer service. Building long-term relationships with customers is essential for any sustainable business, and this applies equally to online elements of a business. Failure to build relationships to gain repeat visitors and sales largely caused the failure of many dot-coms following huge expenditure on customer acquisition. Customer Relationship Management A marketing-led Direct Marketing approach to building and sustaining long- Relationship Database Marketing Marketing term business with customers. CRM Electronic customer relationship management (E-CRM) involves creating strategies and plans for how digital technology and digital data can support CRM.  Using digital communications technologies to Electronic customer maximise sales to existing customers and relationship encourage continued usage of online services management through techniques including database, (E-CRM) personalised web messages, customer services, email and social media marketing. Social CRM The process of managing customer-to- customer conversations to engage existing customers, prospects and other stakeholders with a brand and so enhance customer- relationship management.  The stages each customer will pass through in Customer a long-term relationship through acquisition, lifecycle retention and extension. Stage of The Customer Lifecycle Stage of The Customer Lifecycle Select Acquire Retain Extend Customer Customer Customer Customer selection acquisition retention extension Identifying key Strategies and Techniques to Techniques to customer techniques used maintain encourage segments and to gain new relationships with customers to targeting them customers. existing increase their for relationship customers. involvement with building. an organisation. There is a range of customer extension techniques that are particularly important to online retailers: Re-sell. Cross-sell. Up-sell. Reactivation. Referrals. Selling similar Generating sales Selling additional Customers who products to from products which A subset of cross- have not existing customers recommendations may be closely selling, but in this purchased for – particularly case selling more from existing related to the some time, or important in some customers – for original purchase, expensive have lapsed, can B2B contexts as example, member- but not necessarily products. be encouraged to rebuys or get-member so. purchase again. modified rebuys. deals. Revenue Models Revenue models define how a business generates income. Common online revenue models include: 1.Subscription Model - Users pay a recurring fee to access a product or service (e.g., Netflix). 2.Advertising Model - Businesses generate revenue by displaying ads to users (e.g., Facebook). 3.E-commerce Model - Selling products or services directly to consumers (e.g., Amazon). 4.Freemium Model - Offering basic services for free while charging for premium features (e.g., Spotify). Example: Spotify uses a freemium model where users can listen to music for free with ads or pay for a premium subscription to get ad-free listening and additional features. Emerging disruptive business models new opportunities for companies Consider changing the business model with changing economies around you Traditional Performance Vs New Performance CROWDSOURCING PLATFORM What is Digital platforms? What is a digital product? https://morethandigital.info/en/9-disruptive-business-models-new-opportunities-for-companies/ Online Consumer Behavior & Power Online consumer behavior refers to the ways in which people use the internet to research, purchase, and review products and services. Consumers have significant power online due to the vast amount of information and choices available to them. Insights through the consumer journey. Map your journey of buying an mobile phone. Bought it from Dialog Store. Map your journey of the last movie you watched. Watched on Netflix. Consumer Buying Journey in Digital Era The consumer buying journey has evolved with digital advancements. It typically involves the following stages: Awareness, Consideration, Decision, and Post-Purchase. Example: A consumer looking to buy a new laptop: 1. Awareness: They see an ad on social media or read a blog post about the latest laptops. 2. Consideration: They visit several websites to compare features, read reviews, and watch video demonstrations. 3. Decision: They make a purchase through an online store after finding the best deal. 4. Post-Purchase: They leave a review and share their experience on social media. Identifying Digital Touch Points Problem Information Alternative Purchase Post Purchase recognition Search Evaluation Decision Evaluation Blogs Website - Facebook www.patpat.lk Inquiring Facebook ads recommendations www.patpat.lk The Digital SMS notifications & reviews Media Social Media reviews, google ads fb comments Android & IOS – Touchpoints Facebook, recommendations, Influencer patpat App each stage Instagram, comments YouTube ads marketing Twitter, LinkedIn Live chat WhatsApp group Profiles Competitor Sites Hoardings Peer reviews newspaper ads Visiting an The non Visiting Dealer TV outlet Digital touch Previous own Points or Sellers Visiting the outlet points at each experience Radio Calling the call stage Contact call center centers Leaflets Newspaper promotions RACE Framework funnel Online Consumer Lifestyle Segmentation Online consumer lifestyle segmentation involves dividing consumers into groups based on their online behaviors, interests, and activities. This helps marketers tailor their strategies to specific segments. Example: An online fitness apparel brand segments its audience into groups such as "gym enthusiasts," "yoga practitioners," and "runners." Each group receives personalized content and product recommendations that match their specific interests and lifestyles. Customer Behaviour Analysis Customer behavior analysis involves studying how consumers interact with a brand online to identify patterns and trends. This can inform marketing strategies and improve customer experience. Example: An e-commerce site analyzes user behavior data to find that most customers abandon their carts during the payment process. To address this, they simplify the checkout process and offer multiple payment options, leading to a reduction in cart abandonment rates. Multi screening Path to purchase The different sites, apps, channels and devices and information sources that consumers use to inform their purchase decision for a product or service. Also known as conversion pathways on a site. What is a Target Audience A target audience is a specific group of people with shared characteristics who are most likely to be interested in your products or services. Reasons To Define Your Target Audience Craft Specific Messages Reach the Right Audience Cost-effective Strategies Compete Successfully Define Your Audience Persona Content of an Audience Persona 1.Demographic information: This includes age, gender, location, education level, income, and other relevant demographic information that can help you understand your audience's background. 2.Psychographic information: This includes personality traits, values, interests, hobbies, and lifestyle choices that can help you understand your audience's motivations and behaviors. 3.Pain points: These are the challenges or problems that your audience faces that your product or service can help solve. Understanding your audience's pain points can help you create messaging and content that speaks to their needs. 4.Goals: These are the objectives that your audience is trying to achieve, which can help you understand their motivations and aspirations. 5.Behaviors: This includes the actions that your audience takes when searching for information or making purchasing decisions. Understanding your audience's behaviors can help you create messaging and content that meets their needs. 6.Communication preferences: This includes the channels that your audience uses to communicate and consume information. Understanding your audience's communication preferences can help you create messaging and content that reaches them where they are. 7.Influencers: These are the people or sources that your audience looks to for advice or inspiration. Understanding your audience's influencers can help you create messaging and content that resonates with them. How to Create an Audience Persona 1 2 3 4 Examine your Research the Visualize the Identify current competition audience Common customers persona Characteristics Obtaining Data for Your Audience Persona Facebook Google Hubspot or a Audience Analytics Similar CRM tool Insights Focus group LinkedIn interviews of Campaign Surveys existing Manager customers  Where to Use Your Audience Persona? Once you've created an audience persona, there are many ways you can use it to improve your marketing and communications. Here are some examples of where you can use your audience persona: 1 2 3 4 5 Content creation: Use Marketing messaging: Product development: Customer service: Use Advertising: Use your your audience persona to Use your audience Use your audience your audience persona to audience persona to guide your content persona to guide your persona to guide your guide your customer guide your advertising creation efforts. Knowing marketing messaging, product development service efforts. efforts, from targeting the your audience's pain from your website copy to efforts. Understanding Understanding your right demographics to points, goals, and your social media posts. your audience's needs audience's pain points crafting messaging that communication Tailor your messaging to and preferences can help and communication speaks to your audience's preferences can help you address your audience's you create products and preferences can help you needs and interests. create content that needs and motivations. services that better meet provide better customer resonates with them. their needs. support. Overall, your audience persona should be a tool that you use across your marketing and communication efforts to better understand and connect with your target audience. Goals Personality Audience Caring 95% Better education for Children Healthy family / Nutrition Active 80% Persona Reducing weight Loyal 85% Motivations Preferred Channels Money Mobile Social Parent groups Growth Social media Frustrations Working at week ends “ Lovely, Organized, Nany on holiday Friendly Forgiving Bad neighbourhood Character ” Travelling by public transport Sonali Perera Age 32 Brands University Education Resides at Nugegoda Working as Marketing Executive Love cooking & baking, Shopping , Gardening , Yoga, Hanging around with family friends Goals Personality Audience Caring 95% To rise up in careers Better Life stands for family Active 90% Persona Enjoy the life Loyal 90% Motivations Money Preferred Channels Social Mobile Growth Social media Referrals Frustrations Bad Customer Service “Organized, Slow Internet Passive Thinking Friendly, Ambitious, Travelling by public transport Responsible Character ” Brands Age 30, Married Sanath Perera University & Professional Education Resides at Nugegoda Working as a Manager Ambitious, Adventurous , Love Sports, frequent shopper, active on social media, Hanging around with family friends Post-Purchase Behavior Post-purchase behavior focuses on what customers do after they have bought a product or service. This includes their satisfaction, likelihood of leaving reviews, and potential for repeat purchases. Example: A customer buys a new camera online. After receiving it, they post a positive review on the retailer's website and share pictures taken with the camera on social media. The retailer follows up with an email asking for feedback and offering a discount on their next purchase, encouraging brand loyalty. Become a Marketer with Digital Knowlegde! Thank you! [email protected]