IDM Internet Marketing Strategy

Diploma in Digital Marketing Introduction to digital marketing strategy: Module 2: Understanding the online marketplace Chapters 2, 3 in Internet Marketing, 4e Module 3: Digital marketing strategy development Chapter 4-9 in Internet Marketing, 4e Dr Dave Chaffey www.smartinsights.com/presentations Burberry case study

Purpose of today’s strategy sessions• Give you: – A process for creating a plan – 2 key frameworks for planning – Tools / URLs for analysis / best practice• Help you: – Assignments – Exams – Work – practical tips to apply back in office• Please… – Ask questions – Challenge me! – Share your experiences• Introductions…

About Dave Chaffey• Marketing Qualifications advice site & consulting www.smartinsights.com Best Practice• Search & conversion Books

About you - Introductory activity► 1. How your organisation applies digital marketing: ► Transactional e-commerce ► Relationship-building (e.g. B2B, high-value B2C) ► Brand-building ► Publisher ► Agency ► Not for profit► 2. Choose a “leading” organisation from the above as example.► 3. Give ONE strategic success factor showing how leading brands manage and execute their digital marketing activities► Timing: 5 minutes to discuss, 5 minutes to feedback 4

Discussion: Strategic success factors• •• •• •• •

Strategy framework 1: SOSTACTM What are the strengths and weaknesses in your process? 6Tip. Use SOSTAC to structure plans

AM Framework 2: Smart Insights PRACE Download: http://bit.ly/smartstrategyPM

Inbound/content marketing -The heart of your digital marketing strategy

Applying content marketing for the RACE touchpoints

Example of an integratedsocial media campaign

Today’s Agenda – 8 steps to review and define organisational digital marketing strategy Step 1. Understand your digital audience Step 5. Visibility and traffic Prioritise markets and segments Customer acquisition strategy through you want to reach and engage prioritised digital media channels Step 2. Set SMART objectives and tracking Step 6. Digital channel integrationUse the RACE framework to set targets for all aspects Facilitating multichannel customer journeys. of customer development Step 3. Audit marketplace performance Step 7. Improve site conversionBenchmark. Create an Internet-specific SWOT using Conversion and sales optimisation strategy. market insights sources. Using persuasion, AB and MVT. Step 4. Create Engaging OVP Step 8. Customer E-communications Create a compelling OVP Customer retention strategy using integrated Email and for different visitor types social marketing campaigns.

Summary: Digital marketing success factors• Digital marketing strategy is a channel strategy – Informed by insight on customer channel behaviour and marketplace activity = intermediaries, competitors – Objectives for future online and offline contribution % should drive our strategy – Channel strategy thrives on differentials – BUT, need to manage channel integration• Digital marketing strategy defines how we : • Hit our channel leads & sales targets – Improve efficiency of Acquisition, Conversion, Retention • Prioritise audiences targeted through channel • Communicate valueiof using digital channels • Deliver relevant experiences through a content or engagement strategy

STEP 1: Understand the audiences you’re targetinghttp://www.ruderfinn.com/rfrelate/intent/intent-index.html

Always start with the customer!• What types of key information do we need to research about our online customer? Please share sources, research you have completed? – – – – – – –

Our case study : www.i-to-i.com Multichannel business with significant proportion of leads and sales generated online Audience in 4 key markets:  UK & Ireland  US  Europe  Australia & NZ  RoW Course popular with gap year and career break students 15,000 trained annually online or on weekend TEFL Use full range of digital channels integrated with call-centre sales 16

Understanding customer search intent and preferencesTip. Use the Google Keyword Tool for gap analysis – search on “Google Agency Toolkit”http://www.smartinsights.com/digital-marketing-software/keyphrase-market-potential-software/

How good is your key phrase-level reporting?•Should show: • Potential demand from key phrase estimators • Your actual performance (position, clicks, conversion, sales, value): – Paid – absolute and relative – Natural – absolute and relativeUse “Google Keyword tool” to identify categories/volume of searches:Smart Insights Gap analysis spreadsheet

How social are your audience?

Ask “Why” as well as “what” - use feedback tools Key Point iPerceptions http://www.4qsurvey.com “Bad web site. Difficult to find item as no search box provided for short cut” “I cant find any prices on your website” “Would like to see where I can buy products from” .Satisfaction : Intent toolshttp://bit.ly/smartfeedback

Gaining site and business innovation ideas through Uservoice

Don’t forget to think “out of the box”

Online customer targeting optionsTargeting approaches Method1. Classic profile-based Target customer groupings according todemographic segmentation their characteristics & motivations2. Customer value Assess customers by current and future value potential3. Web design personas (PM) Target 2-10 typical customer journeys4. Customer lifecycle Target messages according to length of time using online services5. Purchase and response Use “sense and respond” behavioualbehaviour targeting based on RFM6. Channel preference Communicate with customer in their preferred media (and according to value)7. Tone and style preference Communicate with customers according to their tastes inferred from demographics or behaviour.

Tip – create a layered segmentation - an example from eBay

Targeting customers based on value Customer Good customers Very good customers quality 15 % 15 % high One time shoppers Average customers with low potential low 60 % 10 % Customer low high potentialIndicators for customer quality Indicators for customer potentialOrder value per received catalogue Last date of purchaseOrder value per season Number of active seasonsGross margin in % of net sales Channel usage scoreReturns in % of order value Number of different product categories Source: Chris Poad, Otto, E-consultancy masterclass 2006

Targeting by Lifecycle personalisation – typically using event-triggered email Purchased Active Purchased Inactive Tesco.com Purchased once •“Logged-on” •“Cautionary” Registered visitor •“Developing” Newly •“Established” registered visitor •“Dedicated” Return visitor •“Logged-off”First-time visitor

RF engagement scoring example Scoring: Recency Low 1 = > 24months 2 = 19-24 months 3 = 13-18 months 4 = 7-12 months 5 = 0-6 months High Frequency Low 1 = One purchases 2 = Two purchases 3 = Three 4 = Four 5 = Five High Note here boundaries are defined to illustrate behaviour. There are a different number in each groupSource: Interactive Marketing journal – January to March 04 – SilverMinds music catalogue

A RF(M) segmentation example for a theatreOncers DefinitionRecent oncers attended <12 monthsRusty oncers attended >12<36 monthsVery rusty oncers attended 36+ monthsTwicersRecent twicer attended < 12 months For each, record:Rusty twicer attended >12, < 36 months • Average valueVery rusty twicer attended in 36+ months • % E-mail coverage • % E-mail response6+ subscribers Booked 6+ events in currentCurrent subscribers seasonRecent Booked 6+ last season See Drilling DownVery rusty Booked 6+ more than a season ago www.jimnovo.com

E.G. Receive MMS E.G.ReceiveBill insertExample: Source:Combing tech + social segmentation

Source:Example – combined segments

Source:Dynamic messaging by segment (MMS)

Dynamic email : Socialites

Dynamic email: iPhone segment

A: <name>, your latest Orange update is hereB: Loads of lovely stuff from us to you

Source:Testing impact through holdout groups

Step 1: Summary Understanding the digital customer• Complete research to understand online customer… – Profiles – differences to other platforms – Needs and preferences – digital platforms and what engages them – Satisfaction and gap with experience• Define a layered segmentation: – Demographic – Value – Lifecycle

STEP 2: Define objectives and create optimisation systemhttp://www.smartinsights.com/analytics-conversion-optimisation-alerts/dell-international-web-analytics-case-study/

Tip: Integrate Analysis: Goals: Strategies: Tacticshttp://www.smartinsights.com/blog/digital-marketing-strategy/integrated-online-marketing-strategy-a-tool-for-integrating

Activity - Selecting the right digital channels goals and tracking metrics – “the critical few”Please suggest goals and measures of digital marketing performance for i-to-iwhich answer question: “How can we measure how well digital marketing activity contributes value to our business?”Include Efficiency AND Effectiveness measuresEfficiency = “Are we doing things right?”Effectiveness = “Are we doing the right things?”a. Reach: Attract visits to your sites and presence,reach audience on other sitesb. Act: Engage with site or presence, convert to leadsc. Convert: Convert to saled. Engage: Developing long-term customer relationships

Measure Reach Encourage Convert Engage customers Audience Action incl lead To sale to retain and grow generationTracking  Unique visitors  Online opportunity  Online sales  Email list qualitymetrics  New visitors (lead) volume volume  Email  Visits  Offline opportunity  Offline sales engagement  Conversation (lead) volume volume quality volume generated from generated from  Transactions online onlinePerformance  Share of audience  Page engagement  Conversion rate  Active customersdrivers  Share of search rate (Bounce rate, to sale % (site and email(diagnostics)  Brand/direct visits duration)  Channel active)  Lead conversion rate conversion rates  Active social by engagement tool  Category followers conversion rates  Repeat conversion rateCustomer-  Cost per click and  Cost per lead  Average order  Lifetime valuecentric KPIs cost per sale  Customer satisfaction value  Customer loyalty  Brand awareness  Cost per sale index  Conversation  Customer  Customer polarity satisfaction advocacy (sentiment)  Products per customerBusiness  Audience share  Goal value per visit  Revenue per visit  Retained salesvalue KPIs (owned media) or  Online lead  Online-originated growth and  Share of voice contribution contribution to volume (earned media) (n,£, % of total) sales, revenue  Revenue per and product channel and category

Do you have BHAG for online channels? • BHAG explain your  Sanjiv Ahuja, Chairman of Orange: □ “Unless a business like ours has long-term vision and a very simple, comprehensible should be and executable strategy, it is very hard not only to get the – Aspirational buy-in from the team, but it’s even harder to get it executed” – Transformational □ “Make sure you don’t use any – Based on market buzzwords in that strategy, especially in our industry and insight, i.e. Realistic don’t use techno-geeky stuff – Link through to that we’re all enamoured of.” SMART goalshttp://www.smartinsights.com/blog/digital-marketing-strategy/goal-setting-for-digital-marketing-2195/

Step 2 Summary: Objectives and measurement1. Link objectives with strategies, tactics and measurement2. Track goals in analytics3. Create a performance dashboard4. Facilitate an optimisation culture: “Test, Learn, Refine”5. Use soft measures to show how effective the customer experience is?6. Define a long-term vision

STEP 3: Audit marketplace performance

Example digital strategies  When reviewing SWOT, group by  Acquisition communications (e.g. role of Google and other intermediaries, mix)  Conversion (experience) Proposition  Retention and customer development (contact strategies, targeting)  Brand management  Governance issuesSee p223

Situation analysis:How effectively are we competing? Organisation E-marketing Efficiency Organisation E-marketing Marketplace Effectiveness 46

DEEPLIST for macro-environmentWhich are most important for digital? • Demographic: percentage of each population online can be analysed in terms of age, household size and type, income, gender, ethnicity, employment status, work patterns mobility etc. • Economics: taxation controls, monetary and competition policies, fiscal policies. • Environment: country specific attitudes towards physical environmental issues, for example energy consumption, spatial distribution of populations. • Political: power and influence of Government agencies and regulatory bodies, public opinion, pressure groups, Internet governance. • Legal: trading laws and restrictions, advertising standards and controls, taxation laws. • Information: Availability of consumer / company data and information, access to this type of data and how it is used, information control. • Social: needs and wants of target communities, extent of social exclusion, individual levels of trust and perceptions of security, social discrimination. • Technology: Access to technology, innovation, adoption rates, applications of technology.Tip: 1-2 sides max in assignment, 47 include DST under customer

Tip. Create an online marketplace map to understand your customer influencers Key Point Key Point

Love your influencers! Source: Influencers post

 REACHOutreach! Collaborate with partners and influencers to maximise impact of social media

Reach prospects and customers through your web or network

Benchmarking competitors • Reach effectiveness: – Review site popularity, composition using Ad Planner – Search marketing effectiveness (search agency): • Audit SERPs position and messages for target keyphrases (comparing to intermediaries) • Audit backlinks – SEOMoz and Majestic SEO – Social media effectiveness • Followers and fans • Offers and engagement • Conversations – Display advertising and affiliates • Presence on relevant intermediaries from SERPs • Use of retargeting, Google Display Networkhttp://www.smartinsights.com/blog/digital-marketing-strategy/tools-for-benchmarking-competitor-visitor-numbers/http://www.smartinsights.com/blog/seo/keyword-research-process/http://www.smartinsights.com/search-marketing-alerts/best-link-analysis-tools-for-seo-and-online-pr/http://www.smartinsights.com/blog/online-pr-social-media/online-reputation-management-software/

Step 3 Summary: Audit and plan• Create channel-specific SWOT• Base on marketplace mapping• Link SWOT to key digital strategies• Align digital activities to business strategies

STEP 4: Create engaging OVPs (Online value propositions) for your brand

Key Developing your OVP Point• Core brand proposition = Marketing Mix: – Who you are? – What you do? – Where you do it? – What makes you different?• OVP - Online Value Proposition – What can your provide to help/inform/entertain me online? – Reinforces core brand proposition and credibility, but messaging shows… – Different OVPs for different markets and audiences – Value that a site visitor get from your online brand or campaign that… • They can’t get from you offline? • They can’t get from competitors? – Develop content strategy to develop OVPs – Communicate message forcefully: online and offline

Key brand messages definedthroughout the customer journey

E-newsletter OVP: success is all about relevant content• B2B • B2C – Make my work easier – Make my life easier – Help me develop – Help me learn / have fun – Make me look good – Make me look good – Give me a great deal – Give me a great deal

Engaging through OVPs in triggered emails “Learn more through time” “Watch, don’t ask”

Quality content develops OVP

Content strategy example 68% CTR >1,000 downloadsSee http://www.smartinsights.com/blog/conversion-optimisation/online-content-marketing-strategy-2108/

Social channel OVP • Recruiting to TwitterTip: Recruit to Twitter • via a prize draw • promoted in Twitter or FB via Email

McKay case study

What works for Eloqua (B2B) Eloqua Facebook approach

Mobile and App OVP MOBILE EMAIL USAGE APPShttp://www.smartinsights.com/digital-marketing-strategy-alerts/mobile-marketing-statistics/

Key mobile marketing questionsBusiness Implementation• Q. Can we use mobile to • Email expand reach? – Should we support mobile?• Q. Will mobile • Website: increase sales? – Do we need a mobile• Q. How much will mobile version of our website? increase customer – Will mobile SEO help us? engagement? – Should we use Adwords mobile • Apps: – Should we create (apps?)

Step 4 Summary: Digital value• Communicate your core proposition effectively• Create OVP for online channels: Web, Facebook, Twitter, LinkedIn, Mobile• Develop a content marketing strategy• Create a content marketing hub with appropriate level of resource• Review mobile marketing options

STEP 5: Improve your site’s visibility / brand reach

Key strategic questions about digital media channels• How do we establish ROI?• How much should we invest in digital media channels?• Which channels should we prioritise on?• How can we increase the efficiency of each channel?• How do we integrate channels?See Workbook

Activity – evaluating the value of digital media channelsYour ideas on good practices to assess, to proveeffectiveness of digital marketing channels?•••••

Latest UK ad spend figures (IAB/PwC) Online 25% of totalhttp://www.smartinsights.com/digital-marketing-strategy-alerts/uk-online-ad-spend-latest-statistics-released/

Creating funnel budget models for online marketingSee http://www.smartinsights.com/digital-marketing-downloads

How should we determine investment in digital channels?• 1. Setup marketing source codes for Google Analytics (to minimise direct traffic)• 2. Assess response rates = CTR  Conversion to lead  Conversion to sale• 3. Assess cost effectiveness = CPC  CPA  ROI  LTV• 4. Go beyond last-click to weighted attribution and multichannel assists in Google Analytics• 5. Branding effects = Awareness, Interest, Desire, Action (on or offline)• 6. Media multiplier / halo effect• 7. Incremental reach = Availability of impressions in different channels e.g. Maxing out on searches, targeted inventory, Increasing frequency• 8. Risk diversification – avoid all eggs in one basket?• 9. Opportunities to test and learn• 10. Hold out testing (part audience isn’t exposed to campaigns)

How good is your online campaign reporting in attributes leads and sales? • Q1. Unified de-duped cross-media reporting? • Q2. Granularity – referrer, product, customer? • Q3. Multi-touch customer behaviour? – How well do you understand sales cycle – Which referrer do you attribute sale to? • Last click or weighted attribution.http://www.smartinsights.com/blog/web-analytics/media-conversion-attribution

Use Google Analyticsto understand true value Measuring assists in Google Analytics 7 Google’s new social analytics 5

Example:KPIs in place

Your search marketing strategy questions? Paid listings - Adwords Pay Per Click (PPC) <title> </title> tagsBlended oruniversal listings - <meta name=“description = > tags Or Snippets from page Natural or organic listings - Search engine optimisation (SEO)

SEM Don’ts = problems to avoid• SEO • Pay Per Click1. Insufficient key phrase Importance of QS not research and analysis recognised, i.e.2. Index inclusion and coverage 1. Click through rate poor 2. Ad text relevance (copy)3. Content owners / editors 3. Triggering text relevance don’t know rules of SEO 4. Landing page relevance and4. Insufficient unique content speed5. Internal linking strategies not used So, depends on brand,6. External link-building tactics copywriting, account structure, weak match types (broad, phrase, negative) and testing.

Do you use display effectively? • New display options: – Behavioural targeting (or (remarketing) – Display networks – Google promoted video and pre-roll – Real-time biddinghttp://www.comscore.com/Press_Events/Presentations_Whitepapers/2010/When_Money_Moves_to_Digital_Where_Should_It_Go

New display ad opportunities for B2B

Interest-based targeting

Social RadarPrioritising through thesocial media marketing radar 82

Activity – social media strategy► In pairs…► In 5 minutes, define 5 key issues of a company social media strategy► 1.► 2.► 3.► 4.► 5.

Scope: social media or Social CRM?http://www.smartinsights.com/blog/digital-marketing-strategy/social-crm-strategy/

“Every business is a multi-channel publisher now”

Managing social “publishing” with limited resource 1. Be relevant. Understand the content that will appeal to different audiences. 2. Create an editorial calendar. Your social media marketing will be more effective if you produce content on a regular, consistent schedule. 3. Offer distribution choices, but keep a focus. Offer choice to alert subscribers to content using different types of channels since they will have different preferences. 4. Syndicate through partners. Identify partner sites and networks who may publish your content, either in it’s original form or tailored for their audiences. 5. Make communications two-way. Don’t just treat the channels as an alert or update service. Engage!5 rules of SMO – Rohit Bhargavahttp://www.smartinsights.com/social-media-marketing-alerts/what-is-social-media-optimisation-smo/

Define your core activities for social media marketing• 1 Managing reputation• 2 Delivering customer service• 3 Acquiring new customers• 4 Increasing and sales existing customers• 5 Increasing engagement with your brand by adding value to customers• 6 Harnessing insights to develop the brand3-5 should run on a continuous AND campaign basisThey require a content AND communications strategyto define resource and execution

Q. How do we respond?http://www.smartinsights.com/blog/online-pr-social-media/reviewing-and-responding-to-online-comments-about-your-brand/

Get into a rhythm…Download “Building your Business with Facebook Pages”

Use a “conversational calendar” Download “Building your Business with Facebook Pages”

Integratedcampaign example

Step 5 Summary: Acquisition media• Create a budget model to optimise investment in mix – Review the relevance of attribution models• Bought media: – Increase reach and efficiency• Earned media: – Prioritise investments in social media• Owned media: Optimising content marketing• Integration: – Using paid, owned, earned together – Integrating SEO,PPC,PR,Social, Display

STEP 6. Integrate your online and offline communications

Case study – understanding multichannel behaviour – implications?http://www.smartinsights.com/analytics-conversion-optimisation-alerts/multichannel-customer-journeys-ropo/

Key Integration = Point Supporting channel-switching behaviourHow well do you support channel switching? Tracked call? Live Chat? Callback?

http://www.smartinsights.com/analytics-conversion-optimisation-alerts/qr-codes-location-demographic-statistics/

Step 6 Summary: Integration• 1. Map the importance of your online customer journeys• 2. Develop approaches to facilitate, incentivise cross- channel journeys• 3. Avoid siloing based on structure, performance appraisal, etc

STEP 7: Improve your site’sefficiency and effectiveness

Activity: improving site effectiveness• For each site please summarise – 1. Audiences targeted – 2. Key brand messages – Product or service offer – Online value proposition to encourage interaction and return? – 3. Key outcomes or Analytics goals• Group to feedback: – Examples of techniques where 1-3 are effective – Suggestions for improvements of 1-3

Source: 101

Source: Craig Sullivan independent survey 2009

Forrester Research on “site design personas” • Ethnographic researchers averaged – 21 i/views per project for 4 personas, $47K – $10K to 100 i/views for 8 personas, $500K • Examples: – Ford uses 3 buyer personas at Ford.com • Primary persona ‘Marie’ – just beginning car shopping process, hasn’t settled on brand, doesn’t know about cars, needs Help! – Staples.com has 7 for shoppers – Microsoft had 7 for Windows XP • Segment on key characteristics/behaviours – “Seeks high quality”, “Seeks low cost” – “Starting evaluation”, “Final decision” – Occasional visitor, frequent visitor

B2B examples: www.forrester.com, www.alterian.com

For each persona define preferences for: Platforms (web, email, mobile) Platform usage (hours) Content consumption: General site types & category-specific Social media - content creation & participation Search behaviour Trusted brandswww.dulux.co.uk

How effective is your scent? Example SCENT TRAILS NEW CUSTOMER?<CUSTOMER-CENTRIC SERVICE NAMES> WHERE / HOW TO BUY? WHY CHOOSE US?

B2B example: The evolution of Salesforce landing pageshttp://www.smartinsights.com/blog/web-design/perfect-landing-page

Autoglass MVT case study - control

TV ComparisonTV - Off TV - On

Service message testing

Step 7 Summary: Conversion1. Use analytics to understand entry points, sources into site – path analysis.2. Define primary customer journeys and brand messages (don’t forget the OVP!)3. Use AB and MVT to optimise conversion4. Use feedback tools to assess and improve experience and what it adds to the brand5. Don’t forget offline journeys

STEP 8: Refine your customer E- communication strategy

Your email marketing capability?Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission

The main barriers to effective email marketing?

Do you send out emails based on the following triggers?

Summary Step 8: Ecommunications• Review and optimise email marketing: – Effectiveness: Targeting, Touch strategies – Efficiency: Rendering, Deliverabilty• Create a social media programme (see Step 6)• Create an effective digital marketing campaign model: – Engagement devices – Influencer outreach – Online and offline integration – “In-flight campaign optimisation”

Thank you! Let’s Connect! Questions & discussion welcome • Blog www.smartinsights.com/bloguk.linkedin.com/in/davechaffey • Feeds www.feedburner.com/smartinsightsfacebook.com/smartinsights • E-newsletter www.smartinsights.comtwitter.com/smartinsights

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IDM Internet Marketing Strategy

by Dave Chaffey on Nov 18, 2008

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IDM Internet Marketing Strategy — Presentation Transcript