Diploma in Digital Marketing Module 2: Understanding the online marketplace Module 3: Digital marketing strategy development Dr Dave Chaffey www.davechaffey.com/presentations

Purpose of today Give you: A process to follow for developing a long-term digital marketing strategy Principles can also be applied to e-campaigns Tools / URLs for analysis / best practice Help you: Assignments Exams Work - practical

Give you:

A process to follow for developing a long-term digital marketing strategy

Principles can also be applied to e-campaigns

Tools / URLs for analysis / best practice

Help you:

Assignments

Exams

Work - practical

About You Agency-side Client - Main focus of site 1. Transactional E-commerce Retail, Travel, Financial Service, ISP, Telecoms, Energy 2. Relationship-building (lead-building) Business-to-business services, automotive brands 3. Brand-site FMCG – Beverage, Food, Commodities 4. Media site / publisher / social network Sun, Guardian, E-consultancy, Facebook

Agency-side

Client - Main focus of site

1. Transactional E-commerce

Retail, Travel, Financial Service, ISP, Telecoms, Energy

2. Relationship-building (lead-building)

Business-to-business services, automotive brands

3. Brand-site

FMCG – Beverage, Food, Commodities

4. Media site / publisher / social network

Sun, Guardian, E-consultancy, Facebook

About Me Clients include 3M, BP, Euroffice, HSBC, IDM, Intel, Mercedes-Benz, Tektronix and CIM. Researcher / analyst at www.econsultancy.com . E-marketing consultant at www.cScape.com . E-marketing trainer and consultant Cranfield School of Management E-commerce Warwick (E-business) 2 Leeds University Business School Previously Birmingham, Derby Visiting lecturer at leading UK business schools Internet Marketing / E-marketing Excellence E-business and e-commerce Mgt SEO, PPC, Web Design, Email Best Practice Guides Author of 6 best-selling business books and Best Practice Guides Recognised by the CIM as one of 50 people who have ‘shaped the future of marketing’ and by DTI as a key contributor to the development of UK E-commerce in the last 10 years An e-marketing “guru”! www.davechaffey.com/blog

Cranfield School of Management E-commerce

Warwick (E-business) 2

Leeds University Business School

Previously Birmingham, Derby

Internet Marketing / E-marketing Excellence

E-business and e-commerce Mgt

SEO, PPC, Web Design, Email Best Practice Guides

What is marketing strategy? “ Defines how we will meet our objectives” “ Sets allocation of resources to meet goals” “ Selects preferred strategic options to compete within a market” “ Provides a long-term plan or direction for the development of the organisation”

“ Defines how we will meet our objectives”

“ Sets allocation of resources to meet goals”

“ Selects preferred strategic options to compete within a market”

“ Provides a long-term plan or direction for the development of the organisation”

What is Digital marketing strategy? Elements of digital strategy: www.wordle.net Digital marketing strategy is a channel strategy Objectives for online contribution % should drive our strategy Digital marketing strategy defines how we should: Hit our channel leads & sales targets Budgets for Acquisition, Conversion, Retention, Service Communicate benefits of using this channel – enhance brand Prioritise products available through channel Prioritise audiences targeted through channel Channel strategy thrives on differentials BUT, need to manage channel integration

Elements of digital strategy: www.wordle.net

Digital marketing strategy is a channel strategy

Objectives for online contribution % should drive our strategy

Digital marketing strategy defines how we should:

Hit our channel leads & sales targets

Budgets for Acquisition, Conversion, Retention, Service

Communicate benefits of using this channel – enhance brand

Prioritise products available through channel

Prioritise audiences targeted through channel

Channel strategy thrives on differentials

BUT, need to manage channel integration

The scope of digital channel strategy! Source: Chaffey (2009) Internet Marketing: Strategy Implementation and Practice (4 th edition)

Digital strategy = “Cause and Effect” Levers Success factor mapping Or undesired effect!

Is there a detailed e-marketing plan for the business? Source: E-consultancy (2005, 2008) UK Research (n=85)

What goes wrong when there isn’t a coherent E-marketing strategy?

Diploma in Digital Marketing Module 2: Understanding the online marketplace (Micro and macro environment analysis)

Today’s case study

http://trends.google.com/trends?q=asos.com%2Cnext.co.uk&geo=all&date=all&sort=0

Activity - How to benchmark competitors Select an organisation from: Transactional E-commerce Relationship-building Brand-building Portal or social network 1. Create a cause and effect diagram to assess factors impacting their website communications effectiveness against a competitor. Present on flipchart. 2. Present organisation and competitors main strengths and weaknesses on-screen using this framework . Identify presenter(s) and driver. Pick 2-3 aspects only.

Select an organisation from:

Transactional E-commerce

Relationship-building

Brand-building

Portal or social network

1. Create a cause and effect diagram to assess factors impacting their website communications effectiveness against a competitor. Present on flipchart.

2. Present organisation and competitors main strengths and weaknesses on-screen using this framework . Identify presenter(s) and driver. Pick 2-3 aspects only.

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

DEEPLIST for macro-environment Which 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.

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.

Microenvironment – situation analysis My 8 suggested steps: 1. E-marketplace mapping 2. Internet-specific SWOT 3. Audience segments 4. Audience behaviours 5. Internal audience insight – communications effectiveness 6. Intermediaries and partnering opportunities 7. Benchmark your proposition (OVP) against competitor capabilities 8. Assess internal capabilities to compete

My 8 suggested steps:

1. E-marketplace mapping

2. Internet-specific SWOT

3. Audience segments

4. Audience behaviours

5. Internal audience insight – communications effectiveness

6. Intermediaries and partnering opportunities

7. Benchmark your proposition (OVP) against competitor capabilities

8. Assess internal capabilities to compete

Step 1. Produce an e-marketplace map

Use digital marketing intelligence sources + Government sources: www.statistics.gov.uk and www.ofcom.org.uk http://www.google.co.uk/search?&q=+site:weblogs.hitwise.com+hitwise+blog+%2Basos 8. IMRG ( www.imrg.org ) 7. IAB (US: www.iab.net , UK: www.iab.uk.net , Europe: www.iabeurope.eu ), 6. Forrester ( www.forrester.com ad http:// blogs.forrester.com )) 5. ABCE Database ( www.abce.org.uk ) Free tool. (Choose ABCE Database). 4. Comscore ( www.comscore.com ) . Paid tool. Background quotes in Press releases. 3. Netratings ( www.netratings.com ). Paid tool. 2. Hitwise ( www.hitwise.com ). Paid tool, but free research available at http:// weblogs.hitwise.com . 1. Google Tools – www.davechaffey.com/seo-keyword-tools Service

Step 2 Create an Internet-specific SWOT

Example digital strategies When reviewing SWOT, pay particular attention to: Acquisition communications (e.g. role of Google and other intermediaries, mix) Conversion (experience) Proposition Retention and customer development (contact strategies, targeting) Partner potential

When reviewing SWOT, pay particular attention to: Acquisition communications (e.g. role of Google and other intermediaries, mix)

Conversion (experience) Proposition

Retention and customer development (contact strategies, targeting)

Partner potential

Step 3. Understand & segment audience for targeting Communicate with customers according to their tastes inferred from demographics or behaviour. 7. Tone and style preference Assess customers by current and future value potential 2. Customer value Target customer groupings according to their characteristics & motivations 1. Classic profile-based demographic segmentation Communicate with customer in their preferred media (and according to value) 6. Channel preference Method Targeting approaches Use “sense and respond” behavioual targeting based on RFM 5. Purchase and response behaviour Target messages according to length of time using online services 4. Customer lifecycle Target 2-10 typical customer journeys 3. Web design personas

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

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

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 brands

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 brands

Step 4. Assess consumer behaviour Problems with model? Main challenges?

What influences brand perception? Source: www.eiaa.net

What influences trust?

Should you risk reviews and ratings?

Step 5. Assess communications effectiveness against goals

Reverse-engineering search strategy Brand search Generic terms Niche terms Use “Google Keyword tool” to identify categories/volume of searches

Step 6. Understand intermediaries Based on an approach used by Digital Marketing Strategy Consultants Blue Latitude Network ( www.bluelatitude.net )

Step 7. Benchmark competitors against your web/email propostion Awareness Evaluation Search Decision Purchase Support Rewards EVALUATION  Online product guides  Product selectors, configurators  Detailed Infosheets  Product picture  Price, availability, delivery info AWARENESS  Search engines  Portals  Featured products  On site banner ads  Opt-in e-mail SEARCH modes  Keyword  Product code  Browse DECISION  Security guarantee  Service promise  Discounts  Store locator  Call to action PURCHASE  Personalised  Re-buys  1-click  Gifting SUPPORT  E-mail notification  FAQs  Order history  Knowledge base  Diagnostics tools REWARDS  e-Newsletters  Competitions  Reminder service  Loyalty schemes  Extranet

Step 8. Assess capability to deliver against competitor features - The 7 Ss Figure 1.9 The McKinsey 7S framework See Module 10 See: E-consultancy 2008 Managing Digital Channels Report: http://bit.ly/1HA5 See: McKinsey 7S Model – p197 in Internet Marketing text or http://snipurl.com/24v1j Key drivers for strategic agility: Customer Insight Web analytics and MI Improvement culture: e.g. PIR, AB, MVT Channel governance: structure and integration, skills, responsibilities

Key drivers for strategic agility:

Customer Insight

Web analytics and MI

Improvement culture: e.g. PIR, AB, MVT

Channel governance: structure and integration, skills, responsibilities

Diploma in Digital Marketing Module 3: Digital marketing strategy development Part A. Goal Setting S = M = A = R = T =

Activity - How objectives vary by market For your organisation: Transactional E-commerce Relationship-building Brand-building Portal or social network Select SMART examples of specific goals for digital acquisition, conversion, retention to incorporate into a digital marketing strategy

For your organisation:

Transactional E-commerce

Relationship-building

Brand-building

Portal or social network

Select SMART examples of specific goals for digital acquisition, conversion, retention to incorporate into a digital marketing strategy

Is your digital marketing efficient AND effective? Efficiency: “ Doing the thing right ” Minimising cost Maximising conversion Reducing attrition Effectiveness: “ Doing the right thing ” Supporting business objectives Target marketing

Efficiency:

“ Doing the thing right ”

Minimising cost

Maximising conversion

Reducing attrition

Effectiveness:

“ Doing the right thing ”

Supporting business objectives

Target marketing

per Visitor

Using the right measures + Bounce rates Allowable

Using the right measures – ad example

Practical Tip. What is your bounce rate? “ Percentage of visitors who enter the site and who then immediately exit ” Should benchmark for different: 1. Digital channels (Search, ads, direct, email) 2. Different sites, placements or search terms 3. Creative 4. Different landing pages 20% = Great 40% = OK 60% = Spam Practical Tip : Do use web analytics to check bounce rates for your content

“ Percentage of visitors who enter the site and who then immediately exit ”

Should benchmark for different:

1. Digital channels (Search, ads, direct, email)

2. Different sites, placements or search terms

3. Creative

4. Different landing pages

ASOS.com KPIs – what’s missing?

Example SMART objectives 1 Digital channel contribution objective . Achieve 10 % online revenue 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%of existing customers to using online ‘paperless’ bill payment services within 3 years (for example for a bank or utilities company). Acquisition objective . Increase by 20 % within one year the number of sales arising from a certain target market, e.g. 18–25-year-olds. 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%.

Digital channel contribution objective . Achieve 10 % online revenue 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%of existing customers to using online ‘paperless’

bill payment services within 3 years (for example for a bank or utilities company).

Acquisition objective . Increase by 20 % within one year the number of sales arising from a

certain target market, e.g. 18–25-year-olds.

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%.

Example SMART objectives 2 Retention objective . Increase annual repeat new customer conversion rate by 20%. Retention objective . Increase percentage active users of service transacting (purchasing or using other electronic services) within a 180-day period from 20% to 25%. Retention objective . Increase customer satisfaction rating for channel from 70 to 80%. Growth objective . Increase new prospects recommended by friends (viral marketing or ‘ member get member’) by 10,000 per annum. Growth objective . Increase propensity to recommend online service from 60 to 70%. Penetration objective . Achieve first or second position in category penetration in the countries within which the company operates (this is effectively online audience or market share and can be measured through visitor rankings such as Hitwise or Netratings (Chapter 2) or, better, by online revenue share). Cost objective . Achieve a cost reduction of 10% in marketing communications within two years.

Retention objective . Increase annual repeat new customer conversion rate by 20%.

Retention objective . Increase percentage active users of service transacting (purchasing or

using other electronic services) within a 180-day period from 20% to 25%.

Retention objective . Increase customer satisfaction rating for channel from 70 to 80%.

Growth objective . Increase new prospects recommended by friends (viral marketing or

‘ member get member’) by 10,000 per annum.

Growth objective . Increase propensity to recommend online service from 60 to 70%.

Penetration objective . Achieve first or second position in category penetration in the countries

within which the company operates (this is effectively online audience or market

share and can be measured through visitor rankings such as Hitwise or Netratings

(Chapter 2) or, better, by online revenue share).

Cost objective . Achieve a cost reduction of 10% in marketing communications within two

years.

Diploma in Digital Marketing Module 3: Digital marketing strategy development Part B. Strategy and Planning

Categories of digital strategies and their performance drivers 1. Customer proposition (Product, Price) 2. Customer acquisition strategic initiatives 3. Customer conversion and customer experience strategic initiatives

1. Customer proposition (Product, Price)

2. Customer acquisition strategic initiatives

3. Customer conversion and customer experience strategic initiatives

4. Customer development and growth strategic initiatives 5. Enhance marketing capabilities through site infrastructure improvements

4. Customer development and growth strategic initiatives

5. Enhance marketing capabilities through site infrastructure improvements

Integrate Goals: Strategies: Tactics

Aligning objectives, strategies and tactics Example 1. Acquisition. Objective 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%, Informed by Based on growth forecast based on current sales of 40,000 sales per year, but with incremental sales arising from new affiliate programme and SEO development Strategies to achieve goal Start affiliate marketing programme and improve SEO. Refine existing media mix based on Pay Per Click and display advertising supported by offline media. Key performance indicators or success factors Overall CPA for online sales. Incremental number and % of sales from affiliate marketing programme Number of strategic keywords ranked for in top positions in natural search results page.

Example 1. Acquisition.

Objective

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%,

Informed by

Based on growth forecast based on current sales of 40,000 sales per year, but with incremental sales arising from new affiliate programme and SEO development

Strategies to achieve goal

Start affiliate marketing programme and improve SEO.

Refine existing media mix based on Pay Per Click and display advertising supported by offline media.

Key performance indicators or success factors

Overall CPA for online sales.

Incremental number and % of sales from affiliate marketing programme

Number of strategic keywords ranked for in top positions in natural search results page.

Aligning objectives, strategies and tactics Example 2. Conversion objective. Objective Increase site conversion rate to 3.2% (alternative is increase AOV to £42) Informed by Model showing separate increase in conversion for new and existing customers based on strategies shown right. Strategies to achieve goal Combination of tactics: Incentivised email follow-up on checkout abandonments for new customers. Introduction of more competitive pricing strategy on best sellers. AB and multivariate messaging improvement of landing pages Refinement to quality of traffic purchased through Pay Per Click programme Key performance indicators or success factors Variations in conversion rates for new and existing customers in different product categories.

Example 2. Conversion objective.

Objective

Increase site conversion rate to 3.2% (alternative is increase AOV to £42)

Informed by

Model showing separate increase in conversion for new and existing customers based on strategies shown right.

Strategies to achieve goal

Combination of tactics:

Incentivised email follow-up on checkout abandonments for new customers.

Introduction of more competitive pricing strategy on best sellers.

AB and multivariate messaging improvement of landing pages

Refinement to quality of traffic purchased through Pay Per Click programme

Key performance indicators or success factors

Variations in conversion rates for new and existing customers in different product categories.

Aligning objectives, strategies and tactics Example 3. Retention objective. Objective Retention objective. Increase annual repeat new customer conversion rate by 20%. Informed by Business case based on limited personalization of offers to encourage repeat purchases via Email. Strategies to achieve goal Delivery of personalized product offers by Email 5% second purchase discount voucher. Direct mail to high repeat sale propensity customers Key performance indicators or success factors Increased conversion rate of retention email contact and direct mail programme Conversion to sale for second purchase discount campaigns

Example 3. Retention objective.

Objective

Retention objective. Increase annual repeat new customer conversion rate by 20%.

Informed by

Business case based on limited personalization of offers to encourage repeat purchases via Email.

Strategies to achieve goal

Delivery of personalized product offers by Email

5% second purchase discount voucher.

Direct mail to high repeat sale propensity customers

Key performance indicators or success factors

Increased conversion rate of retention email contact and direct mail programme

Conversion to sale for second purchase discount campaigns

Decision 1: Market and product development strategies. Chaffey, Internet Marketing , 3 rd Edition © Pearson Education Limited 2007

Decision 2: Business and revenue model strategies. Who most relevant for?

Decision 3: Target market strategy.

Common digital channels targeting options By media usage: Difficult to reach using other media Heavy / Savvy users of online media By Loyalty: Brand loyalists – provide a home Not brand loyal – encourage trial By profitability: Most profitable – deepen relationships – add value Least profitable – serve at a lower cost By company type and individual: Larger companies (B2B) Smaller companies(B2B) Key members of the buying unit (B2B)

By media usage:

Difficult to reach using other media

Heavy / Savvy users of online media

By Loyalty:

Brand loyalists – provide a home

Not brand loyal – encourage trial

By profitability:

Most profitable – deepen relationships – add value

Least profitable – serve at a lower cost

By company type and individual:

Larger companies (B2B)

Smaller companies(B2B)

Key members of the buying unit (B2B)

Targeting options Communicate with customers according to their tastes inferred from demographics or behaviour. 7. Tone and style preference Assess customers by current and future value potential 2. Customer value Target customer groupings according to their characteristics & motivations 1. Classic profile-based demographic segmentation Communicate with customer in their preferred media (and according to value) 6. Channel preference Method Targeting approaches Use “sense and respond” behavioual targeting based on RFM 5. Purchase and response behaviour Target messages according to length of time using online services 4. Customer lifecycle Target 2-10 typical customer journeys 3. Web design personas

Q. Which targeting factors give best response?

1. Demographics Clinique use different styles and tones for girls and boys segments

2. Targeting customers according to value Customer potential Customer quality high low low high One time shoppers with low potential Average customers Good customers Very good customers 15 % 15 % 60 % 10 % Indicators for customer quality Indicators for customer potential Order value per received catalogue Order value per season Gross margin in % of net sales Returns in % of order value Last date of purchase Number of active seasons Channel usage score Number of different product categories Source: Chris Poad, Otto, E-consultancy masterclass 2006

Order value per received catalogue

Order value per season

Gross margin in % of net sales

Returns in % of order value

Last date of purchase

Number of active seasons

Channel usage score

Number of different product categories

Source: E-consultancy (2005)

Using customer lifecycle targeting Tesco.com “ Logged-on” “ Cautionary” “ Developing” “ Established” “ Dedicated” “ Logged-off”

Tesco.com

“ Logged-on”

“ Cautionary”

“ Developing”

“ Established”

“ Dedicated”

“ Logged-off”

Automated Email Campaigns that Build… Welcome Email Time-limited offer Offer Extension

Using RF targeting Source: Interactive Marketing journal – January to March 04 – SilverMinds music catalogue 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

Decision 4 Positioning and differentiation OVP - Online Value Proposition Objectives: Provide value to encourage initial and continued usage of online channels Tactics Reinforces core brand proposition (marketing mix) and credibility, but shows: What can a visitor get from your online brand that… They can’t get from you offline? They can’t get from competitors? Communicate message forcefully: online and offline Examples: ‘ Compare. Buy. Save ’. Kelkoo ( www.kelkoo.com ) ‘ Earth’s biggest selection ’. Amazon ( www.amazon.com ) ‘ Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily’ ( www.autotrader.com )

OVP - Online Value Proposition

Objectives:

Provide value to encourage initial and continued usage of online channels

Tactics

Reinforces core brand proposition (marketing mix) and credibility, but shows:

What can a visitor get from your online brand that…

They can’t get from you offline?

They can’t get from competitors?

Communicate message forcefully: online and offline

Examples:

‘ Compare. Buy. Save ’. Kelkoo ( www.kelkoo.com )

‘ Earth’s biggest selection ’. Amazon ( www.amazon.com )

‘ Search the largest inventory of cars and trucks on the Internet. More than 1.5 million listings, updated daily’ ( www.autotrader.com )

How can we deliver value online? Product Price Place Promotion People Process Physical evidence VALUE FROM CUSTOMERS VALUE FROM COMPANY Cost I want the best deal Be cheaper to own Convenience Save me time Be faster & simpler Content Help me decide Make my life easier Customisation Tailor it for me Personalise my recommendations Choice Fit my unique needs Making the right choice Community I want to belong Cost I want the best deal Be cheaper to own Convenience Save me time Be faster & simpler Content Help me decide Make my life easier Customisation Tailor it for me Personalise my recommendations Choice Fit my unique needs Making the right choice Community I want to belong Sell Reach during buy-mode Sense and Respond to increase lifetime value Speak Research needs Inform and build relationships through e-mail Serve Provide online content and services Save Sell and service more efficiently Sizzle Differentiate our brand

Cost

I want the best deal

Be cheaper to own

Convenience

Save me time

Be faster & simpler

Content

Help me decide

Make my life easier

Customisation

Tailor it for me

Personalise my recommendations

Choice

Fit my unique needs

Making the right choice

Community

I want to belong

Cost

I want the best deal

Be cheaper to own

Convenience

Save me time

Be faster & simpler

Content

Help me decide

Make my life easier

Customisation

Tailor it for me

Personalise my recommendations

Choice

Fit my unique needs

Making the right choice

Community

I want to belong

Sell

Reach during buy-mode

Sense and Respond to increase lifetime value

Speak

Research needs

Inform and build relationships through e-mail

Serve

Provide online content and services

Save

Sell and service more efficiently

Sizzle

Differentiate our brand

Dell Premier B2B OVP Content Customisation Community Convenience Choice Cost-reduction

Content

Customisation

Community

Convenience

Choice

Cost-reduction

BA Have You Clicked Yet? Print ad copy: Your computer is now the airport. Check in online, Print your own boarding pass, choose your seat, change your booking card and even find hire cars and hotels. Simple. OVP=Online Value Proposition=Unique benefits of online service

Decision 5: Multi-channel distribution strategy For e-retailers – a review of approach used to distribute products to market through online intermediaries: Disintermediation Re-intermediation Countermediation For others, a review of strategic online partners to extend reach online See earlier section on intermediaries

For e-retailers – a review of approach used to distribute products to market through online intermediaries:

Disintermediation

Re-intermediation

Countermediation

For others, a review of strategic online partners to extend reach online

Decision 6: Multi-channel communications strategy Assesses how online channels integrate with traditional channels to convert customers to sale and service customers In-bound sales-related enquiries (Customer acquisition or conversion strategy) In-bound customer-support enquiries (Customer service strategy) Outbound contact strategy (customer retention and development strategy)

Assesses how online channels integrate with traditional channels to convert customers to sale and service customers

In-bound sales-related enquiries (Customer acquisition or conversion strategy)

In-bound customer-support enquiries (Customer service strategy)

Outbound contact strategy (customer retention and development strategy)

Decision 7: Online communications mix and budget – See Objectives section You need to know: Advantages Disadvantages When to use When not use Justification

You need to know:

Advantages

Disadvantages

When to use

When not use

Justification

Creating budget models for online marketing See http://www.davechaffey.com/Spreadsheets/

What should we determine investment in digital channels? Response rates = CTR  Conversion to lead  Conversion to sale Value = CPC  CPA  LTV Branding effects = Awareness, Interest, Desire, Action (on or offline) Reach = Availability of impressions in different channels e.g. Maxing out on searches, targeted inventory, Increasing frequency Media multiplier / halo effect Risk diversification All eggs in one basket? Opportunities to test and learn See http://snipurl.com/24v5k [www_iab_net]

Response rates = CTR  Conversion to lead  Conversion to sale

Value = CPC  CPA  LTV

Branding effects = Awareness, Interest, Desire, Action (on or offline)

Reach = Availability of impressions in different channels e.g. Maxing out on searches, targeted inventory, Increasing frequency

Media multiplier / halo effect

Risk diversification

All eggs in one basket?

Opportunities to test and learn

Decision 7. Online CRM strategies Objective: Use online channels to support customer lifecycle Tactics: Acquisition – influencing new sales online Permission marketing – incentives and customer knowledge - list building / profiling. Touch strategy. Triggered e-mail. Retention – keeping customers using online channels E-mail touch strategy. Understanding customer loyalty drivers - why customers continue to use online services, or why they stop. Inbound contact strategy. Growth – encouraging use/purchase of additional services E-mail touch strategy. Online prompts. Triggered E-mail. Reactivation / Winback – encouraging lapsed online users Event-triggered e-mails to reactivate.

Objective:

Use online channels to support customer lifecycle

Tactics:

Acquisition – influencing new sales online

Permission marketing – incentives and customer knowledge - list building / profiling. Touch strategy. Triggered e-mail.

Retention – keeping customers using online channels

E-mail touch strategy. Understanding customer loyalty drivers - why customers continue to use online services, or why they stop. Inbound contact strategy.

Growth – encouraging use/purchase of additional services

E-mail touch strategy. Online prompts. Triggered E-mail.

Reactivation / Winback – encouraging lapsed online users

Event-triggered e-mails to reactivate.

Integrate Email + Direct mail (or phone contacts) Combined response from e-mail and direct mail is 125% better than no e-mail. Response increases, 100% for direct mail piece. Source: E-consultancy Masterclass 2005 - BCA Pre-mail, with online response Teaser e-mail. No online response Direct Mail Direct Mail

Decision 8: Organisational capabilities (7S) See Module 10

See Module 10

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