An Assessment Framework for Strategic Digital Marketing Effectiveness

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MBA Project Report - An Assessment Framework for Strategic Digital Marketing Effectiveness

MBA Project Report - An Assessment Framework for Strategic Digital Marketing Effectiveness

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  • 1. Project ReportonAn Assessment Framwork for Strategic DigitalMarketing EffectivenessPrepared byName: Saurabh KaushikAn Assessment Framework for Strategic Digital Marketing Effectiveness1
  • 2. Table of ContentsProblem Definition: ...............................................................................................................................4Coverage of industry & company .........................................................................................................4Research Design.....................................................................................................................................5Research Methodology ..........................................................................................................................7An Assessment Framework for Strategic Digital Marketing Effectiveness2
  • 3. Executive SummaryThe purpose of this project is to propose and test an assessment framework to analyze an organizationsDigital Marketing Strategies and its effectiveness using a Digital Marketing Consulting model. Thisconsulting model is based on a comprehensive Digital Marketing Strategy Framework and Planning processto map an organization’s Digital journey.To test this framework, an online survey and consulting exercise with an organization have been conductedto gather market data and analyze it on Strategic Digital Marketing parameters of KPI and ROI. It wasobserved; most companies are effective at reaching and engaging their digital customer base but fail toconvert and nurture them for long-term profitable relationship. The analysis and outcome from thisassessment framework allow upper management to have Dashboard view of their Digital Marketingperformance as well as enable them to take any required course correction on their current Digital Strategies.An Assessment Framework for Strategic Digital Marketing Effectiveness3
  • 4. Chapter 1: Introduction:Problem Definition:Today, most organization has explicit or implicit Digital Marketing strategies and they have been using allthe possible and available channels. Belief is that, if an organization is communicating on all channels andgetting traffic to their websites, it is good enough. But this may not be all.Also, these organization are very good with optimizing their operations and financial, but when it comesdoes to their Digital Campaign, they might not have proper measurable criteria as they might haveunderstood Digital customer and its life-cycle.And most important, organizations are always looking for most effective way in utilizing every dollar spent.In Marketing, ROI is most challenged topic as marketing objective are long terms. It became imperative fororganization to track their Digital Marketing spend more precisely. Digital Marketing is not a Silver Bulletfor all kind of organization’s marketing strategy. Few channels works best for one organization and othermay not be. It is important for an organization to know, what right combination is and what best Return ontheir Investment are.Coverage of industry & companyDigital has touched every aspect of our life across the world. Today, every business all over world has theirwebsites and their Facebook pages, where they are communicating and promoting their brands. So, thisStrategic Digital Marketing Framework and its assessment tools are applicable for any organization that hasany Digital presence. E.g. Website, Facebook & Google Plus pages, twitter feeds, etc.About Organization Chosen for Consulting Assessment:Following organization was chosen for Digital Marketing’s Consulting Assessment. Name of Organization – <Confidential Data has been removed> Brief Description – <Confidential Data has been removed> Digital Marketing Needs – <Confidential Data has been removed>An Assessment Framework for Strategic Digital Marketing Effectiveness4
  • 5. Chapter 2: Methodology:To conduct Analysis of Strategic Digital Marketing, following two methodologies have been adopted in thisproject. Assessment Survey – To understand and analyze a group of organizations on their Strategic and KPIaspects. Consulting Assessment – To understand and analyze an organization on individual basis on theirStrategic, KPI and ROI aspects.Research DesignType of Market Research: Type of Market Research carried out was Descriptive in nature. Descritive research is a structured datacollection technique that provides detailed, factual information thats useful in decision-making.Objectives of this research is understand current landscape of an orgniazations Digital MarketingStrategies and provide them useful suggestions to improve it.Type of Data Collection: For this research, only Primary Data has been collected.Type of Questionnaire:Following were Evaluation Criteria for Questionnaire for this research. Accuracy – High Cost – Low Time – Less Respondent Convince – HighFollowing are Determinants of this Marketing Research. Degree of Finality of Research Respondent Ability to Answer Direct QuestionsBased on above Criteria and Determinants, following type of questionnaire is best suited for this research. Structured TypeAn Assessment Framework for Strategic Digital Marketing Effectiveness5
  • 6.  Non-Disguised typeTypes of AssessmentsFollowing three types of Digital Marketing Assessments are conducted with participants.Digital Marketing – Strategic AssessmentConsulting Assessment is a set of questionnaire based on Strategic Digital Marketing Framework. This helpsan organization to know their stage and status in Strategic Digital Marketing Journey. This will also enablethem to take further corrective action on their future Digital Marketing Strategies.This will be carried out as Online Survey based on Structured & Non-disguised Survey Questionnaire.Type ofDataSource of Data Adopted Method Sample Techniques SampleSizeStrategicAssessmentPrimary LinkedinContactsOnline QuestionairSurveyNon-probabilisticSampling7Digital Marketing – Key Performance Indicators (KPI) AssessmentKPI Assessment is a set of questionnaire based on KPI defined for each strategy from Digital MarketingFramework. This helps an organization to know their current performance level of their present DigitalMarketing strategy. This will also enable them to take further corrective action on their future DigitalMarketing Strategies.This will be carried out as Online Survey based on Structured & Non-disguised Survey Questionnaire.Type ofDataSource of Data Adopted Method Sample Techniques SampleSizeKPIAssessmentPrimary LinkedinContactsOnline QuestionairSurveyNon-probabilisticSampling7Digital Marketing – Return on Investment (ROI) AssessmentROI Assessment is Form Based financial data gathering tool based on Digital Marketing Channels. Thishelps an organization to know their current Return on Investment on different digital marketing channels.This will also enable them to take further corrective action on their future Digital Marketing Strategies.An Assessment Framework for Strategic Digital Marketing Effectiveness6
  • 7. This will be carried out on individual basis with a selected organization’s representative. This will have bothSurvey Questionnaire and Quantitative Questions.Type ofDataSource of Data Adopted Method Sample Techniques SampleSizeROIAssessmentPrimary Direct PersonalContactsTelephonicQuestionair SurveyNon-probabilisticSampling1Limitations: Due to short project duration, could not reach out large organizations for better and relevant datacollection. Online data is collected with assumption about their real identity on Linkedin (Professional NetworkSite) and provided inputs in survey.Research MethodologyStrategic Digital Marketing – IntroductionAn Assessment Framework for Strategic Digital Marketing Effectiveness7
  • 8. Introduction to Digital MarketingBy Definition "Digital marketing is the use of internet connected devices to engage a customer with onlineadvertising in order to promote products and services. Internet connected devices are those such as webbrowsers, smart phones and game consoles. As technology develops more devices become able of internetbrowsing and the digital marketing potential that comes with it."A digital marketing strategy is a channel strategy which means that it should… Be informed by research into customer channel behaviour and marketplace activity = intermediaries,publishers and competitors Based on objectives for future online and offline channel contribution % Define and communicate the differentials of the channel to encourage customers to use it, BUT, need to manage channel integrationSo put another way, digital marketing strategy defines how organizations should: Hit our channel leads & sales targets Budgets for Acquisition, Conversion, Retention & Growth, Service Communicate benefits of using this channel to enhance brand Prioritise audiences targeted through channel Prioritise products available through channelTypes of Digital Marketing:Two different forms of digital marketing exists: Pull digital marketing in which the consumer must actively seek the marketing content often via websearches or the recipient has given permission to receive content that is sent to the consumer byemail, text message and web feed. Push digital marketing technologies in which the marketer sends a message without the consent ofthe recipients, such as display advertising on websites and news blogs.Success Factor for Digital Marketing:An effective digital strategy will help in taking the right decisions to make an organization successful online.A strategy process model provides a framework that gives a logical sequence to follow to ensure inclusion ofall key activities of strategy development and implementation.An Assessment Framework for Strategic Digital Marketing Effectiveness8
  • 9. In this project, a 5 phase planning approach has been adopted.Digital Strategy:In the fields of strategic management, marketing strategy and business strategy, digital strategy is the processof specifying an organizations vision, goals, opportunities and initiatives in order to maximize the businessbenefits of digital initiatives to the organization. These can range from an enterprise focus, which considersthe broader opportunities and risks that digital potentially creates (e.g., changes in the publishing industry)and often includes customer intelligence, collaboration, new product/market exploration, sales and serviceoptimization, enterprise technology architectures and processes, innovation and governance; to moremarketing and customer-focused efforts such as web sites, mobile, eCommerce, social, site and search engineoptimization, and advertising.There are numerous approaches to conducting digital strategy, but at their core, all go through four steps:1. Identifying the opportunities and/or challenges in a business where online assets can provide asolution2. Identifying the unmet needs and goals of the customers that most closely align with those keybusiness opportunities and/or challenges3. Developing a vision around how the online assets will fulfill those business and customer needs,goals, opportunities and challenges.4. Prioritizing a set of online initiatives which can deliver on this vision.Within each of those stages, a number of techniques and analyses may be employed.Digital Marketing Channels:Digital marketing is done via multiple marketing channels with multiple methods within each. Following is asimplified channel map.An Assessment Framework for Strategic Digital Marketing Effectiveness9
  • 10. Channels Selection is not “One Size Fit All” process. Organization should carefully select channel to theirneeds. After selecting a set of channel, it should also monitor its performance. Most marketer associate RPImeasurement criteria for each channel usage and review their strategies based on performance.Following is short description of these channels and its methods.Channels ChannelMethodsDescriptionAdvertisingChannelOnline Ad buys Ad buys are display ad formats such as banners and skyscraperswith placements bought on specific sites.Google AdWord, Facebook AdsAd network These are blind networks where ads are not placed on specific sitesbut to target an audience. Lower CPM than Ad buys, may haveCPC options.SearchAn Assessment Framework for Strategic Digital Marketing Effectiveness10
  • 11. ChannelPaid searchPay Per Click e.g. Google Adwords. Calculated based on CPC incombination with budget total to give the number of visits.Natural search This delivered through SEO. It is here calculated on a similar basisto Paid search.PartnersChannelAffiliatesThese are cost per action. They are calculated by working backfrom the the number of sales based on the cost per sale andinvestment in this channel.AggregatorsAggregators are comparison sites. They are calculated in a similarway to affiliates. Some aggregators will also offer CPM or CPCdeals which will need to be treated separately.SponsorshipsSponsorship is a fixed amount based on the percentage of budgetand estimate of the reach of a period.E-mail listsEmail lists are typically purchased on a cost per thousand basisoften as part of an ad buy. Ads in 3rd party enewsletters or co-branded emails are other options in addition to rented lists.Online PROnline PR is typically done via Blog Expert and News Sites.Internalonline mediaChannelIn-house e-maillist/Ddirect MailMThis is ogranizations own email database which they may havebuilt over a period of time being in business.Own-site ads(other footfall)This is their own website ads.An Assessment Framework for Strategic Digital Marketing Effectiveness11
  • 12. Digital Marketing – Consulting ModelDigital Consulting - OverviewConsidering complex nature of Digital Marketing and its custom nature for each business, it opens a largefield for expertise and consultation. Digital Marketing Consulting is turning out to be a niche area for manymarketing professionals.There is huge need to create a credible plan to take advantage of digital channels to markets. MarketingConsultant works with organization to develop and refine their digital marketing plans starting with a reviewof their current digital marketing capabilities within their marketplace and then creation of a prioritisedroadmap of strategic initiatives. Organizations often ask consultants to focus advice on their main strategicchallenge such as growing sales through improving traffic quality, increasing conversion or engagingexisting customers more effectively.Digital Consulting - ObjectivesThis consulting process brings following benefits to an Organization’s Digital Marketing Planning and itseffectiveness. Results-oriented Helps to prioritise recommendations according to their potential value and ease ofimplementation allowing quick wins initially and leading a roadmap of future strategic priorities. Insight-based Based on data analysis, it should identify quick wins based on insights from a range of specialistdigital marketing sources including market analysis, customer data, campaign data and webanalytics. Process-based To facilitate easy implementation, it should offer detailed checklists for benchmarking differentE-marketing tactics like search marketing and email. Integrated To offer expertize in integrated communications approach of digital marketing from strategydevelopment through to detailed knowledge of best practice in the most important tacticsincluding search engine marketing, social media email marketing, web site design and webanalytics.Digital Consulting – ModelThis consulting model has three components.An Assessment Framework for Strategic Digital Marketing Effectiveness12
  • 13.  Digital Marketing - Strategy Framework Digital Marketing - Planning Process Digital Marketing – Assessment MethodologyBoth of these are detailed in following sections.Digital Marketing - Strategy FrameworkQuestion - “How to grow Digital business?”Just like any other Marketing Framework, Digital Marketing framework takes holistic approach to addressMarketing for a business. This framework is designed to answer following question by every business.Strategy Framework – ObjectivesThe objective of this framework is to: This framework should be a simpler framework to help small and large businesses alike takes advantageof the opportunities available from digital marketing. This framework should provide a structure to helpunderstand, review and prioritise options for better results. This framework should be a practical framework to help manage and improve results from digitalmarketing. Ultimately it’s about using best practice web analytic techniques to get more commercialvalue from investments in digital marketing. This is to simplify general approach to reviewing theperformance of online marketing and taking actions to improve its effectiveness. This framework should be based on KPI for each of the Critical phase to help review performance andidentify problem areas. This framework should have Social built into it at each step of process. The popularity of participationin social media with web users means that how to reach, interact, convert and maintain ongoingengagement of customers through social networks is vital to the success of a brand. This framework should have integration of all the Marketing Channel online as well as offline. Digitalchannels always work best when they’re integrated with other channels, so digital channels should becombined with the traditional offline media and channels.An Assessment Framework for Strategic Digital Marketing Effectiveness13
  • 14. RECN - Strategic Digital Marketing FrameworkRECN is acronym for Reach, Engage, Convert and Nurture. These are four strategic phases an organizationgoes through in their Digital journey. This is designed to keep digital customer lifecycle in mind.To bring digital customer lifecycle in context, organization first starts using traditional media to raise aware-ness of the value of the online presences and drive visitors to the website(s) at the Reach and engage stages.Second, at the Convert and Nurture steps stage customers may prefer to interact with customer representat-ives as part of the buying or customer service process.Following table gives specific objectives to each one of these strategic phases.Strategic Phases ObjectiveReach Build awareness on offline media and other sites to drive Web presenceEngage Engage and encourage audience to interact with brand on its websites or other onlinepresenceConvert Achieve conversion to marketing goals such as leads/sales, fans in online as well asofflineNurture Nurture and build customer and fan relationships through time to achieve retentiongoalsFollowing diagram shows RECN’s four strategic phases of Digital Marketing campaign, designed to helporganization engage their customers throughout the customer life-cycle.An Assessment Framework for Strategic Digital Marketing Effectiveness14
  • 15. Strategy 1 – ReachReach means building awareness of a brand, its products and services on other websites and in offline mediain order to build traffic by driving visits to different web presences like organization’s main website,microsites or social media sites.Strategy 2 – EngageEngage is about persuading site visitors or prospects take the next step on their journey when they initiallyreach organization’s website or social network presence. It may mean finding out more about an organizationor it’s products, searching to find a product or reading a blog post. It’s about engaging the audience throughrelevant, compelling content and clear navigation pathways so that they don’t hit the back button. Thebounce rates on many sites is greater than 50%, so getting the audience to act or participate is a majorchallenge.Strategy 3 - ConvertConversion is where the visitor commits to form a relationship which will generate commercial value for thebusiness. It’s where marketing goals such as leads or sales on web presences and offline.Strategy 4 – NurtureThis is long-term nurturing relationship, building customer relationships over time through multipleAn Assessment Framework for Strategic Digital Marketing Effectiveness15
  • 16. interactions using different paid, owned and earned media touch points like organization’s website, socialpresence, email and direct interactions to boost customer lifetime valueDigital Marketing – Planning ProcessDigital Marketing Planning Process (DMPP) is a planning model to act a guiding principal for StrategicDigital Marketing Planning. It has Six Process Steps to ask Questions to complete cycle from Analysis toControl.This model can be used to review planning process and manage Digital Marketing. But at time, this modelcan be too much burden to go through. There is flexibility to use its Micro version. It Micro version willconsist of first four steps including Situation Analysis, Objective Setting, Strategies and Tactics.Situation AnalysisQuestion - Where are we now? How well are we using digital media now?This stage covers the relevant background information necessary for plans to be formulated and decisions tobe made. It includes detailed analyses of the current market situation, the organizations existingproducts/services situation, the competitive situation and the SWOT analysis. The outcome of the currentAn Assessment Framework for Strategic Digital Marketing Effectiveness16
  • 17. situation analysis and the SWOT analysis in particular provides a foundation for the next stage in theprocess.Following activities can be carried out in this phase. Marketing Audit Goal Performance (5S Objectives) The environmental analysis Brand Perception Internal Capability and Resources Customer research & analysis Planning Research Approach for Digital channels Customer Insight Competitor analysis & benchmarking Partner analysis SWOT analysisDigital SWOT - Analysis and Strategy:SWOT analysis helps to get a better understanding of the strategic choices an organization faces. It helps toask, and answer, the following questions: How does a organization: Make the most of its strengths? Circumvent its weaknesses? Capitalize on its opportunities? Manage its threats?A SWOT analysis is an essential part of any business or marketing plan. It allows an organization to create aplan of action based not on what they are interested in doing or on their gut-feel, but what they need to dogiven the situation in the marketplace. It considers their capabilities for marketing against competitors pluslooks at opportunities created as new technologies are introduced.When creating a digital marketing plan, SWOT analysis is also an essential step. But, it’s sometimes seen asan academic exercise and there’s the feeling that the time should be spent on improving the execution of thetactics like email or search marketing or improving the site, but the SWOT analysis will give organizationthe strategic view of the main opportunities and challenges available from online marketing. The high-levelAn Assessment Framework for Strategic Digital Marketing Effectiveness17
  • 18. view will help this organization see the most important issues which need to be managed for their onlinesuccess.The Internet and other digital technology offer new opportunities and threats, so creating a SWOT specific tothe Internet is important to help meet this challenge.The Orgnization Strength – S1. Existing Brand2. Existing Customer Base3. Existing DistributionWeakness – W1. Brand Perception2. Intermediatory Use3. Technology / Skills4. Cross -Channel Support5. Churn RateOpportunity – O1. Cross Selling2. New Market3. New Service4. Alliance / Co-brandingSO StrategyLeverage Strength to MaximizeOpportunity = Attacking StrategyWO StrategyCounter Weakness by ExploitingOpportunity = Building Strength byAttacking StrategyThread – T1. Customer Choice2. New Entrant3. Competitive Product4. Channals Conflicts5. Social NetworksST StrategyLeverage Strenght to MinimizeThreat = Defensive StrategyWT StrategyCounter Weakness and Threat =Building Strength by DefensiveStrategyDigital SWOT Strategies:Once an organization identifies its place in SWOT quadrant, it can choose its strategy accordingly. FollowingAn Assessment Framework for Strategic Digital Marketing Effectiveness18
  • 19. are four Digital SWOT strategies. Strengths and Opportunities (SO) – How to use strengths to take advantage of these opportunities?Example: Migrate Customers to Web Strategy Refine Customer contact Strategy across lifecycle or commitment segmentation (Email/Web) Partnership Strategy (Cobranding and Linking) Launch new Web-based product and Value Adding Services. E.g. Video Streaming, Comparisions,etc. Strengths and Threats (ST) – How to take advantage of strengths to avoid real and potential threats?Example: Introduce New Internet Only Product/Services Add Value to Web Services (Refine OVP) Partner With Complementory Brand Create Own Social Network / Customer Reviews Weaknesses and Opportunities (WO) – How to use opportunities to overcome the current weaknesses?Example: Countermediation Strategy (Create/Aquire) Search Market Mediation Strategy Affiliate Based Aquisition Strategy Refine Customer Contact Strategy (Email/Web) Weaknesses and Threats (WT) – How to minimize weaknesses and avoid threats? Example Differential Online Pricing Strategy Aquire/Create Pure-Play Organization with Low-Cost base Customer Engagement to Increcrese Conversion, Average Order Value and Lifetime value Online Reputation Management Strategy /E-PRObjective Setting:Question - Where do we want to be? Which goals and KPIs should we use?At this stage, marketing managers are fully aware of the factors in the organizations current situation whichwill influence its marketing activity so will look at corporate objectives in the light of this information todevelop marketing objectives and evaluate strategic alternatives.Following activities can be carried out in this phase. Objective Setting ProcessAn Assessment Framework for Strategic Digital Marketing Effectiveness19
  • 20.  Defining 5Se Objectives for Digital Marketing Defining Key Performance Indicators (KPI) for marketing campaign Calculating Return on Investment (ROI) on Marketing budgetObjective Setting - Process:In order to define Digital Marketing Goals for organization, following process needs to be followed. Vision and Mission settingo Moving to the new digital world doesn’t happen over night; the change is too big. Soorganization needs a long-term vision to help explain this required transformation. Goal setting and evaluationo Setting the right goals for digital marketing isn’t so easy, but this RECN framework shouldhelp organization select the right goals. Google Analyticso Google Analytics is a fantastic tool, but to get the most from it and so get more commercialvalue from Digital marketing needs careful setup.An Assessment Framework for Strategic Digital Marketing Effectiveness20
  • 21.  Managing digital marketingo Managing digital marketing will often need new skills, new staff, new technologies and newprocesses for marketing. It’s a big change! Marketer need to look at digital marketinggovernance the – best way to structure teams and update processes in larger organization.Bigger the organization, bigger the change.Key Performance Indicators for Digital MarketingFollowing is detailed description for each of the KPI attributes.StrategyStageKPI DefinitionReach Unique Fans andVisitors First, it is important to know total count of unique visitors on alldigital hubs. Second to it, to have good understanding of all the fan, which canbe considered as registered users/customers.Audience Share  Identify segment and find out total number of audience in thatmarket. Having understood total size of audience, now find outpercentage of audience share for organization’s digital presence.Revenue/sales perVisit Need to find current rate of total revenue/sales divided by totalnumber of visits.An Assessment Framework for Strategic Digital Marketing Effectiveness21
  • 22. Engage Bounce Rate  The percentage of visitors who leave immediately after viewingonly one page. This need to be reduced as much possible by improvingpresentation and attractiveness of landing pages.Pages per Visit(PPV) Pages viewed divided by the number of visits. The total number ofpage views divided by the total number of visits during the sametimeframe. Page Views / Visits = Average Page Views per VisitProduct PageConversion There are many ways to define product conversion rate. When customer reviews page views on a site, product and servicepages are often those with the highest total page views. Thesevisitors are also showing great levels of intent, so improving theexperience here can reap benefits.Convert Conversion Rates  It is the percentage of visits to site that result in a “conversion”.Mostly, a conversion is either a sale, or a lead of some kind,typically related to the number of visits or sessions: Conversion Rate = Number of Sales / Number of Visits In other words, if a store is visited 100 times & 5 of those visitsends in a sale, there is a 5% conversion rate.Lead and Sales  Total number of leads and sales generated within a period.Profits and Margin  A ratio of profitability calculated as net income divided byrevenues, or net profits divided by sales. It measures how muchout of every dollar of sales an organization actually keeps inearnings.Nurture % Active HurdleRate The hurdle rate for engagement is simply the percentage ofcustomers who perform an activity, they have jumped over thehurdle set target. The proportion of customers that fall within a particular level ofactivity or engagement with a brand typically within a time period.This is usually expressed as a target percentage and the numberwho have achieved it. For example, the percentage of members of an email list that clickAn Assessment Framework for Strategic Digital Marketing Effectiveness22
  • 23. on the email within a 90 day period, or the number of customersthat have made a second purchase.Fan Engagement  This is to measure Fan activity on orgnization’s digital presence. Insocial, it could be counted no of likes and comments onorganization social page.Repeat Conversion  Repeated interactions that strengthen the emotional, psychologicalor physical investment a customer has in a brand Customer engagement places the strategic emphasis on the creationof valuable relationships and encourages both parties to see mutualadvantage in that relationship. Frequently this will mean thattactics require a multi-channel approach incorporating the best ofdigital and traditional media. There is a ability to effective blendmedia in its type,quantity and timing (known as Right-touching) asone of the key challenges for those interested in engagement in thecoming years.Return on Investment (ROI) for Digital MarketingMeasuring a return on marketing investment starts with this assumption: The realized profit from the sale ofgoods and services cannot be less than the cost of the marketing phases of reach, engage and convince.The actual calculation of Marketing ROI is a percentage using this formula:(Profit from all sales – Cost of marketing) / Cost of MarketingA marketing ROI calculation can be used to Show how effective investment in digital marketing programs have been (looking backwards) Decide which marketing programs are the most successful (deciding what to keep and what to cut) Justify an expenditure on a new marketing program (deciding what to switch to or start)It sounds so simple but ROI calculations get really complicated with factors like: Lifetime value of a customer: Marketing is about making friends for life, customers who keep buyingover and over again. Any calculation of ROI should take into account profits on all sales to allcustomers.An Assessment Framework for Strategic Digital Marketing Effectiveness23
  • 24.  Customer Acquisition Rates: Predicting number of customers for next year and the year after as a resultof on-line marketing outreach efforts is also tricky. Need to step back to think about number of customerto get permission from to grow relationship with them. Cost of Marketing: Need to add up all the associated marketing costs from all running programsincluding software products and people services.In Digital Marketing, Clicks are considered to be one of the most important measure for tracking a usersinterests in a organizations.Following cost types are widely used terminologies for ROI purpose. CPM – Cost Per Thousand Impressions served CPC – Cost Per Click CPS – Cost Per Sale Fixed – A Fixed Cost for any ChannelDigital Marketer needs to plan their channel strategies based on ROI from each channel. Each DigitalMarketing channels can be assigned with a Cost Type.Channels Methods TypeAdvertising ChannelOnline Ad buys CPMAd network CPCAn Assessment Framework for Strategic Digital Marketing Effectiveness24
  • 25. Search Channel Paid searchCPCNatural search FixedPartners Channel AffiliatesCPSAggregatorsCPSSponsorshipsFixedE-mail listsCPMOnline PRFixedInternal online media Channel In-house e-mail list/Direct Mail listNAOwn-site ads (other footfall)NAStrategies:Question - How can we achieve our goals? How do we get there?Strategy is based on the idea of a game plan, as in chess, or in military strategy. Thus, marketing strategy setsdown the game plan by which the objectives are to be achieved. Each objective should be viewed veryclosely and strategic alternatives drawn up. For example, a desired increase in sales revenue from a particularservice could be achieved in a number of different ways; by greater market penetration, for example, or byenhancing the service offering and charging a higher price.Strategic options should be carefully evaluated for each objective and the best possible course(s) of actionselected in each case. The next step is therefore to establish plans of action for each selected strategy.Following activities can be carried out in this phase. Customer segmentation and targeting Digital marketing strategy can start with the different types of targeted customers and markets. Brand development Online media and digital technologies can be used to bring different perspective about brand. Content marketing strategy With the increasing importance of content to commercial viability, content is not something toAn Assessment Framework for Strategic Digital Marketing Effectiveness25
  • 26. leave to an intern; it needs a strategy to ensure it really supports marketing. Integrated marketing communications Research always shows that 1+1 = 3 when incorporating more marketing channels into acampaign. Defining and Designing Online Value Proposition (OVP) The online value proposition is customer value proposition. It’s important to clearly communicateits online experiences and content brand on each site, app and social presence. Tactics:Question - Which digital marketing activities do we optimize? how exactly do we get there? What HappenWhen?As for the base model, this is simply working out the details of the strategy. Exactly what types of data are tobe collected and analyzed?Following tactics can be adopted based on Strategic phases and ground situation.Reach Tactics: Search engine optimisation (SEO)o Search Engine Optimisation (SEO) is arguably THE most cost-effective digital marketingtechnique, but also the most challenging to get right. Paid search marketing (PPC)o Paid search marketing opportunities includes Pay Per Click Ads via Google and Bing plus ads onthe display network – a third of Google’s revenue. Affiliate marketingo Affiliate marketing is still an essential digital media channel for many transactional Ecommercesites for retailers, travel and financial services. Affiliate marketing is also a revenue model toconsider for site owners, especially online publishers. Internet advertisingAn Assessment Framework for Strategic Digital Marketing Effectiveness26
  • 27. o Internet advertising is about display advertising, still more commonly known as banner ads. Online PRo Online PR is one of the most cost-effective marketing approaches for all types of business. Social media marketingo Social media marketing is to navigate social media with a strategic approach from the leadingcommentators and organizations.Engage Tactics: Home page optimisationo The home page gets too much attention since it’s not always the main entry point for the site.Still, for most sites it is the page which is viewed the most so it warrants improvement to get thethe right messages across and get the visitor on the right journey. Landing page optimisationo First impressions count even more online, so landing page optimisation is often a good startingpoint for conversion rate optimisation. AB and multivariate testingo Best practice in creating structured experiments to improve page designs by varying differentelements and comparing against an original.Convert Tactics: Conversion optimisationo Conversion rate optimisation (CRO) isn’t only important for Ecommerce and transactional sites.Every site should have conversion paths to marketing outcomes which contribute to the business. Ecommerceo Our content on Ecommerce focuses on techniques to increased sales from a range oftransactional Ecommerce sites including retail (of course), travel and financial services.An Assessment Framework for Strategic Digital Marketing Effectiveness27
  • 28.  Lead generationo Online lead generation creates new selling opportunities by converting site visitors to prospects.Prospects are classically qualified through completing a profile form and then tailoredcommunications delivered.Nurture Tactics: Content marketing strategyo With the increasing importance of content to commercial viability, content is not something toleave to an intern; it needs a strategy to ensure it really supports marketing. Enewsletter marketingo Enewsletters are a key customer communications tool for most organizations even with socialmedia marketing. Email communications strategyo Success with email marketing involves integrating all the main activities into emailcommunication. Customer service and supporto Online is often the first place customers look for support now and often it’s not the organizationwebsite, instead it’s Twitter or a specialist support site like Get Satisfaction. Mobile marketingo Mobile marketing is massive already and forecast to exceed desktop Internet access in manydeveloping countries. Social CRMo Given the power of social media marketing, many larger organizations are creating Social CRMprogrammes to achieve the transformation needed to make social media interactions effective.ImplementationQuestion - What is our plan? Who does what and When?An Assessment Framework for Strategic Digital Marketing Effectiveness28
  • 29. This stage is concerned with the operationalization of marketing strategy. The strategy defines the broadareas of marketing activity which must be undertaken to enable the organisation to meet its marketingobjectives. These must be translated into programmes of action to be carried out by the various functionswithin marketing.Following activities can be carried out in this phase. Designing action programmes Acquiring Internal Resouces and Skills Building Structure and assigning Responsibility for their execution Costing the programmes Managing External AgenciesControlQuestion - Did to get there? How to monitor Performance?The last stage in the digital marketing planning process sets in place control techniques for monitoring theplans performance. Usually this entails a systematic review of all aspects of the plan against targets set,usually on a monthly or quarterly basis. The review must be carried out regularly to ensure prompt attentionand action in areas when the results lag behind targets set. Managers and others responsible forimplementation of all elements of the action programme should be involved in the monitoring process.Control mechanisms should be in place based on the components identified below:Following activities can be carried out in this phase. Establishing required performance targets 5Se + Web Analystics - KPI Monitoring performance against targets Usability Testing and Mystery Shoper Site Visitor Profiling Customer Satisfaction Survey Process of Reporting and Action Frequency of Reporting Designing corrective courses of action where required Contingency planningAn Assessment Framework for Strategic Digital Marketing Effectiveness29
  • 30. Digital Marketing – Strategic Consulting MatrixSituationAnalysisObjectiveSettingStrategies Tactics Implement ControlReach Analyzingawareness ofbrand andcustomer baseGoal setting tobuild brandand increasecustomer baseDefiningStrategies tobuild brandand improvecustomerreachSelectingdifferenttactics tobuild betterbrandawarenessand customerreach.ImplementStrategies &Tactics intoactions toreachcustomersand buildbrand.Monitor andControl KPI( Unique Fansand Visitors,AudienceShare,Revenue/salesper Visit)Engage Analyzingpresentactivities withcustomerinteractionsand gapsGoal setting todevelop moreinteractionwithBrand/SitesDefiningStrategies topersuademore visitorsto take nextsteps.Selectingdifferenttactics todrive deeperinteractionwith digitalpresence.ImplementStrategies &Tactics intoactions toincreaseinteractionwith digitalpresence.Monitor andControl KPI(Bounce Rate,Pages per Visit,Product PageConversion)Convert AnalyzingCurrentConversionrate and issuesGoal Settingwith improvedtargets forConversionDefiningStrategies toencouragecustomer togeneratecommercialvalueSelectingdifferenttactics toconvert leadsinto Salesand buildrevenue.ImplementStrategies &Tactics intoactions toconvertleads intosales.Monitor andControl KPIConversionRates, Lead andSales, Profitsand Margin)Nurture Analyzingpresentcustomerengagementstrategies andresultsGoal Settingto improveCustomerEngagementDefiningStrategies todevelop longtermrelationshipwithcustomers.Selectingdifferenttactics tobuild andretainrelationshipswithcustomers.ImplementStrategies &Tactics intoactions toengagecustomer onroutinebasis.Monitor andControl KPI (%Active HurdleRate, FanEngagement,RepeatConversion)An Assessment Framework for Strategic Digital Marketing Effectiveness30
  • 31. Digital Marketing – Assessment MethodologyAssessment methodology is design to understand organization current Digital Marketing landscape andanalyze to improve it. This methodology will have three phases. Consultation – In this phase, interview sessions are organized with organization’s digital marketingrepresentative to understand organization profile, its objective, current digital strategies and its issues. Assessment – In this phase, questionnaire based survey/interviews are organized to understandorganization’s Strategic nature, KPI and Return on Investment. Analysis – In this phase, analysis are carried out based on earlier phase and reports andrecommendations are presented to organization management.Strategic Assessment – Survey QuestionnaireBased on RECN Strategic framework, Survey Questionnaire has been categorized into five phases – Plan,Reach, Engage and Nurture.Strategic Assessment is point based and grades each assessment for each organization. These assigned gradescan be described in a given Grading and Description table.Key Performance Indicators (KPI) – Survey QuestionnaireBased on KPI attributes defined Planning Process – Objective Setting section, Survey questionnaire has beenAn Assessment Framework for Strategic Digital Marketing Effectiveness31
  • 32. designed.Return on Investment (ROI) AssessmentThis ROI assessment is based on Digital Channel definitions in Digital Marketing channel section. ROIcalculation is done for each of those channel and analyzed in comparison.Following is the process to arrive on ROI value for each of the Digital Channel.S No. ROI Calculation Process Cost Breakup1 Media costs  Setup / Creative / Mgt Costs Cost Per Thousand Impression (CPM) Cost Per Click (CPC) Media costs Total cost : Setup & Media Budget %An Assessment Framework for Strategic Digital Marketing Effectiveness32
  • 33. 2 Media Impressions & Response  Impressions or names Click Through Rate (CTR) Licks or site visits3 Conversion to Opportunity (Lead)  Conversion rate to opportunity Number of opportunities Cost per opportunity4 Conversion to Sales  Conversion rate to sale Number of sales % of Sales Cost per sale (CPA)5 Revenue  Total revenue6 Costs  Cost of goods sold Media costs Total costs (Inc media)7 Profitability  Profit Return on InvestmentAn Assessment Framework for Strategic Digital Marketing Effectiveness33
  • 34. Chapter 3: Data Analysis<Confidential Data has been removed>An Assessment Framework for Strategic Digital Marketing Effectiveness34
  • 35. Chapter 4: Findings<Confidential Data has been removed>An Assessment Framework for Strategic Digital Marketing Effectiveness35
  • 36. Chapter 5: Recommendations<Confidential Data has been removed>An Assessment Framework for Strategic Digital Marketing Effectiveness36
  • 37. Chapter 6: ConclusionsWith lines blurring between traditional and digital marketing vehicles, how consumers shop, socialize, andabsorb content is rapidly changing. Consequently, driving brand engagement and loyalty by weaving aconversation with customers, across multiple touchpoints, throughout the decision-making cycle is critical.Brand building is no longer solely driven by paid advertising, but also by leveraging the digital marketplaceand providing consumers with two-way, real-time feedback.Digital marketing has evolved from primarily using Google for promotion and sales-based activity into ahighly creative platform that drives brand engagement through social media, such as Facebook, blogs andmobile apps. Since most marketers tend to be brand, digital, or loyalty experts, those who can figure out howto build and execute integrated brand strategies in this complex, new world by employing both analytical andinnovative thinking will be in extremely high demand.An Assessment Framework for Strategic Digital Marketing Effectiveness37
  • 38. Chapter 7: Learning OutcomesDesigned Strategic Digital Marketing Model has proven to address most aspects of Digital landscape of anorganization. This model was able to embrace full customer lifecycle journey for a brand of an organization.This model was able to address all the digital channels of communication and bring out an integratedmarketing communication (IMC) for all digital frontiers.Digital Marketing Assessment framework was model could comprehensively analyze Key PerformanceIndicators (KPI) of all digital aspects from Website to Social Network. It was able to give a Dashboardassessment for upper management of its organizations performance on different aspects of digital strategies.Digital Marketing Return on Investment (ROI) methodology was able to capture all the investment ondifferent digital channel and could give ROI figures to allow upper management to take decisions on digitalstrategies.Learning outcome of this project approves the designed assessment framework for Digital MarketingStrategies.This project lay the fondation of ongoing work in this direction. Initial plan was to cover full rang ofconsulting aspect of Digital Marketing. But due to time constraint and part-time nature, this project couldaddress only a limited scope than actual desired depth level of subject. To take this research further, otherenthusiastic marketing students can pick up threads from here on and attempt to enrich this methodology andframework to make it more comprehansive, practical and useful.An Assessment Framework for Strategic Digital Marketing Effectiveness38
  • 39. References RECN Inspiration: http://en.wikipedia.org/wiki/REAN http://www.blackbeak.com/2008/01/29/measuring-online-engagement-re-visited-and-introducing-the-rean-model/ http://www.blackbeak.com/2008/11/30/mobile-analytics-and-multi-channel-measurement/ http://www.knockknockwebanalytics.com/marketing.php Others Calculation http://blog.webanalyticsdemystified.com/weblog/2007/10/how-to-measure-visitor-engagement-redux.html SWOT/TOWS Analysis http://www.mindtools.com/pages/article/newSTR_89.htm Consulting Model http://jclarkconsultinggroup.com/?page_id=138 Digital Marketing Strategies http://www.webanalyticsworld.net/2011/06/digital-marketing-strategy.htmlAn Assessment Framework for Strategic Digital Marketing Effectiveness39
  • 40. Annexure:<Confidential Data has been removed>An Assessment Framework for Strategic Digital Marketing Effectiveness40