IDM Student evening 20 September 2012 by David ReedPresentation Transcript
Looking for the digital consumerDavid Reed, editor, Journal of Direct, Data and Digital Marketing Practice20th September 2012
About DDDMP✤ “Indispensable resource for senior marketing managers seeking awareness of new marketing concepts, strategies and applications from around the world.”✤ Published quarterly, each issue usually comprises an editorial, 4-5 peer-reviewed papers, a best practice case study, a new technology briefing, a legal & regulatory update, 15 abstracts, and 3-4 book reviews.✤ Personal subscription print and online for £124✤ Member benefit if you join the IDM.
Issue 14.1✤ “An empirical investigation of social network influence on consumer purchasing decision: The case of Facebook.”✤ “From web analytics to digital marketing optimization: Increasing the commercial value of digital analytics.”✤ “The digitally excluded consumer - Options for marketers.”
DDDMP 14.1 - The Case of Facebook ✤ “Facebook promotes a consumer-to-consumer approach, exploited by consumers to share experiences and create a common knowledge of products and services...provides✤ An investigation into the extent managers a direct channel for communicating with clients through a business-to-consumer approach.” to which social networks Hypotheses: influence purchasing decisions ✤ Ease of use of FB influences role as support tool in decision- making. through a quantitative analysis. ✤ Ease of use has a direct influence on gathering information through this source. ✤ Usefulness of messages influences attitude towards using FB for✤ Researches beyond usage into information about purchases. Facebook-mediated marketing ✤ Attitudes towards FB influence intention to use it as a support tool for purchasing decisions. communication. ✤ Enjoyment of FB influences perceived usefulness. ✤ Enjoyment influences attitude towards role as support tool for purchasing decisions. ✤ Enjoyment of FB influences behaviour in using it for this purpose. ✤ Ease of use has a direct influence on enjoyment.
DDDMP 14.1 - The Case of Facebook✤ Anonymous survey among ✤ “Managers could improve the students in Southern Italy, fun provided by pages by generating 187 responses. adding games, contest and applications.”✤ Proved all hypotheses (except number 1) ✤ “Marketers would consider the link between a high level of✤ “Users appreciate the presence enjoyment...for positively of firms/products...and take affecting consumer purchasing into account recommendations decisions.” and suggestions.”
DDDMP 14.1 - From Web Analytics toDigital Marketing Optimization✤ Reviews opportunities to better apply web analytics to improve ✤ “Adoption levels of [web digital marketing performance. analytics] are high, but usage of them remains surprisingly low.”✤ Defines an approach to improve the value contributed ✤ “Majority not using by web analytics. fundamental web analytics approaches such as customer journey analysis and✤ Describes techniques to set up a segmentation...despite the digital marketing optimization majority rating these as programme. highly/quite valuable.”
DDDMP 14.1 - From Web Analytics toDigital Marketing Optimization✤ Lack of resources and budget ✤ “Scope of web analytics should are significant barriers - for be broadened beyond its every $80 spent driving traffic, traditional focus on website $1 spent converting it. optimization to other forms of (Source: Omniture) digital media.”✤ Companies with a structured ✤ Need for a continuous approach to conversion 2x more improvement process and likely to have seen large sales analysis methodology for increases. making improvements - Six Sigma, DMAIC.✤ “Success depends on reducing inefficiencies in digital ✤ Select the right KPIs. marketing.”
DDDMP 14.1 - From Web Analytics toDigital Marketing Optimization✤ Reach, Act, Convert, Engage framework. ✤ “To increase adoption, web✤ Covers all main measures analytics needs to be across the customer lifecyle at repositioned as an improvement different levels of reporting. process.”✤ Ten tests of measurement design.
DDDMP 14.1 - The Digitally ExcludedConsumer - Options for Marketers ✤ “Clients and their agencies have differing views about the speed of migration online.”✤ One-fifth of consumer are not ✤ Clients - 26% expect to increase online - 8.7 million people offline marketing budgets v Agencies - 9% expect increase✤ Need to supplement digital marketing with analogue ✤ Clients - 26% expect to decrease offline marketing budgets v Agencies - 58% expect decrease
DDDMP 14.1 - The Digitally ExcludedConsumer - Options for Marketers ✤ “Majority are not digitally excluded, but digitally✤ Age factor - 7.3 million indifferent or even digitally digitally-excluded over 55. disinterested.”✤ Absence of PC in workplace ✤ “Most marketers are dependent during their working life. on digital communications...it must be extremely difficult to✤ Age-related digital exclusion understand large numbers of will diminish. consumers who, for rational reasons, have decided to remain offline.”
DDDMP 14.1 - The Digitally ExcludedConsumer - Options for Marketers✤ “The future profile of those not connected to the Internet is Four approaches for marketers: ✤ likely to be based solely on the person’s socio-economic 1.Ignore and do nothing status.” 2.Become part of the solution✤ “The new generation of digitally excluded will be those without mobile internet 3.Target a specific segment access.” 4.Make all digital touchpoints✤ Digital exclusion will become another deprivation factor.
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Conclusions✤ Marketing risks being out of synch with the consumer✤ The consumer does not look (or behave) like you!✤ If your agency tells you something is right, ask for the evidence