Thinking Differently about Digital Marketing


Published on

It's time to start thinking differently about digital marketing.

2009 was the year digital marketing was accepted as a pillar of marketing strategies. But using digital marketing is different from utilising digital marketing. The focus needs to move away from simply getting an audience to retaining that audience by creating an engaging experience.

In this whitepaper, one in a series of papers exploring the business theory of Enterprise Relationship Management, we take a closer look at this shift in digital thinking.

Published in: Business, News & Politics
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Thinking Differently about Digital Marketing

  1. 1. CONNECT DIGITAL COMMUNICATION SERVICES Thinking Differently About Digital Marketing: Thought Leadership Beyond Acquisition Francesca Brosan, Chairman, Omobono Limited. January 2010 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 || F +44 (0)1223 365167 T +44 (0)1223 307000 F +44 (0)1223 365167 ||
  2. 2. CONNECT Time to start thinking differently about digital marketing Retaining the 2009 was the year in which marketers at building the experience around the accepted the fact that digital was a central product. In service markets it is actually relationships you acquire pillar of their marketing activities rather an integral part of the product. As Will than a nice to have, as online advertising Harris, Marketing Director of Nokia put it expenditure grew 4.6% to £1.75 billion, at the Marketing Society 50th Anniversary overtaking TV for the first time. Finally, ‘new’ Conference (a lot of good sense talked media was centre stage. there), “Customers will be interested in corporations who are doing things, not The majority of the spend however, and brands who are saying things.” certainly the reporting of it, focuses on acquisition. Marketers have transitioned Although Marketing control of websites has their activities from offline advertising to been growing and they have moved from online advertising and are now seeking static, IT driven brochureware to adopt ways in which to use social media to, well, the full panoply of web 2.0 features they advertise – despite the fact that that’s not are still primarily promotional tools. They how the medium seems to work. don’t do things, and are therefore, arguably, peripheral to creating preference. The obsessive focus by marketers on acquisition makes less sense in the current Digital’s real power is to reinforce the climate however. For a start, markets relationships which surround and influence are retracting, making the retention of customer preference. customers an essential exercise. Secondly, customers are more likely to be influenced It’s a truth universally acknowledged that by what peers say about product or service relationships drive business. As Hakasson on a social networking site than by an ad, & Ford put it: and never more so than in B2B decision making where advertising has always hovered around a mere 15% of marketing spend. “The overall In addition, for many businesses the 80/20 performance of rule applies. The opportunity not just to a company will retain your business but to grow it is more likely to come from people you know depend on how well. Here the game is not about creating awareness but about creating preference. well they are able This is where digital really comes into its to manage their own. Preference is not about liking an ad, but about having a really good experience. own relationships.” 1 Experience is ultimately what drives your choice of business partner. Digital is adept OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 |
  3. 3. CONNECT Shifting the focus of But it’s surprising how little work has been Service businesses for example, focus done on how business relationships impact on building relationships with their end each relationship customer. But in truth, as knowledge is on each other, and on the bottom line. the fundamental source of competitive A study conducted for Omobono, the advantage for service organisations, the digital communication services company, need to share information across the 2 by Judge Business School in 2009 company is also paramount. Another focused on this specifically and highlighted example is the influence of the regulator on some important issues for marketers who customer relationships. Whilst one part of are looking to use digital as more than an the organisation is focused on improving it, acquisition tool. another is in the process of dismantling it. Omobono’s research showed that All of which means that the new place although relationships gel around four for marketing is as much internal as it key areas – internal, suppliers, customers is external. They need move out of the and external stakeholders – the relational promotional corner in which they have focus shifts, depending on the business. been painted to partner sales and service What also emerged is that relationships delivery teams. Their skills are ideally are interdependent. So secondary suited to improving not just the promotion relationships have significant impacts on of a product or service but the delivery the organisations ability to deliver to its experience. customers. Source: Morgan, R.M. and Hunt, D.H. (1994) 3 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 |
  4. 4. CONNECT Jeremy Bullmore backed up the point in As Accenture4 puts it, “Our research his video input at the Marketing Society shows, providing a consistent, differentiated Conference. As he put it (succinctly, as customer experience has the most always). “Marketers need to get back impact on customer loyalty, which in turn to being obsessive about products and contributes to growth, profitability and services. Forget about the gloss, just do shareholder value.” good stuff.” In digital terms it’s not about doing better, cleverer web 2,0 promotional Which gets us back to the original point. stuff. It’s about using the medium to Digital has come of age. But using it simply enhance business relationships and to drive as another acquisition tool is missing a maximum value from them. trick. It’s an essential part of retention. Not as a clever comms tool but as part of the The good news is that the wiring is already actual service delivery. Marketers who think in place. We have the internet, intranets, like this, spend their time developing added extranets and e-commerce sites. We value services which can be delivered down have CRM systems and email. We fire the line, using the medium to enhance off messages down the wires with alarming line delivery to build relationships. regularity. What is telling is how responses emails vary directly in accordance with Judging from the media coverage, it’s the strength of the relationship. As an approach that not many people have demonstrated by the chart below, the yet tapped into. But, as the Omobono/ stronger the relationship, the higher the Judge Business School research showed, response levels. An argument begins to marketers who do adopt this thinking are in emerge that investing in the tools which a position to create commercial advantage build a relationships, is an exercise which for their organisation. can pay off financially. For further information on how digital can be used to enhance Enterprise Relationships go to knowledgebase Email Response Levels from Financial and Service industries Source: Omobono/Marketwatch 2008/9 OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 |
  5. 5. CONNECT Acknowledgements 1. Journal of Business Research, (55(2), 133, 2002) 2. Research into Enterprise Relationship Management, a concept developed by Omobono Limtied, was conducted by students on the MBA programme between July and November 2009. Findings are Relationships drive your business. based on depth interviews with senior We drive your relationships. management in a range of industries including financial and professional services, ERM® helps world class organisations drive manufacturing, energy, transport and value from their business relationships by logistics, law, IT and public sector. examining the ways they interact with their customers, partners and staff; and how that 3. Morgan, R.M. and Hunt, D.H. (1994) “The is measured to help achieve organisational Commitment-Trust Theory of goals, deliver to customers and create mutual value. We look largely at the contribution online 4. Relationship Marketing”, Journal of technologies can play, and how companies can Marketing, Vol.58 (July 1994), 20-38. maximise value from the infrastructure put in place over the past 5 – 10 years. By exploring 5. Accenture, “Marketing mastery matters”. alternative approaches to improving B2B Outlook 2006, Number 2. marketing effectiveness, ERM enables us to think about marketing differently, to put it back to its original place; where marketing has a meaning and purpose beyond communication and becomes a business essential, not a business expense. Francesca Brosan is Chairman and Founder of Omobono Limited, the digital communications services company. A former Board Director of WCRS, her career has spanned consumer advertising, PR, live events and digital. She now focuses on B2B strategy for the agencies corporate and public sector clients. Francesca is the author of 3 IPA Advertising Effectiveness Awards and is a regular speaker and contributor to marketing forums. OMOBONO LTD, THE WAREHOUSE, 33 BRIDGE STREET, CAMBRIDGE CB2 1UW, UK T +44 (0)1223 307000 | F +44 (0)1223 365167 |