Customer Driven Digital Marketing

Completely Revised:
A Customer Driven Digital Marketing
Dr. Ute Hillmer
Better Reality Marketing
Stuttgart, 23.11.2015

ACustomer Driven Marketing
Strategy: Creating and capturing
CUSTOMER VALUE in an
Online/Offline World
“Ourageofanxietyistheresultof
doingtodaysjobswithyesterdays
technology“
M.McLuhan

WHO is Dr. Ute
Hillmer?anexpertinpositioningandpromotingtechnology
products,withacarvingforinnovativeproductsthat
arenotself-explaining.
Withsuchproducts,humanbehaviorisoftenoutsidethe
boundariesofrationality-despiteitseconomiccontext.
Buyingbehaviorisheretypicallyaresultofsocial,cognitive
andemotionalfactors,alongwiththeeconomicones.

What did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation
Agency State of BW, Better Reality Marketing)
• Dissertation in business administration, behavioral economics in
technology marketing: Technology Acceptance in Mechatronics
• Worldwide company and product communication;
mainly 3 continents (America, Europe, Asia)
• Product-, program-, channel-, partner marketing, marketing
communication, branding, positioning
• Responsible for operative, strategic + corporate marketing, branding,
sales training
• Experienced in large corporations, SMEs and freelance work as well as
political institutions.
• Responsible for the first international website of Hewlett Packard in 1993

What’s Ute’s
STORY?Iaminbusinesstochange
thelivesofmytechnology
clientsbyfindingthem
hungrycustomers that get
them intosustainable growth!

and turn their customers into raving fans!

To take the most
out of this lecture
… be in
STATE!

Agenda
1. Marketing Today: the new Buying Decision Process
2. Customer Driven Digital Marketing
3. The Customer Dialog
4. Benefits of Digital Marketing
5. Porters 5 Forces
6. Hands on
7. Lead Generation Online
8. Bonus Material: Getting Started
Who is Digi Marketing for
The Trends
The Digital Toolbox
Creating and capturing CUSTOMER VALUE!

Marketing + Sales
Today:
a New Buying
Decision Process

Role-play to discover:
“Has Marketing changed?”
“Must Marketing change?”

Funnel-Metaphor for a Buying
Decision
active evaluation
many brands
Grafik close to Edelman 2010
buying decision
Initial
considerationTrigger
lesser and lesser brands
What brand creates
the most value to
me/us right now
and in the future?

Digitally supported Buying Decision
active
Evaluation
Post-Sales
Experience
Enlarged
Evaluation
Ambassador
Loyalty Loop
Active
Evaluation
Model close to Edelman 2010, p.65
Moment of Purchase
Initial
Consideration
Trigger
What brand creates
the most value to
me/us right now
and in the future?

Information Sources Today
The 2014 B2B Buyer Behaviour Survey

2014 B2B Buyer Behavior Survey
• Web search is the top source of information
• B2B buyers strategically browse social media
• The number of sources used to research and evaluate
purchase has increased
• There is an increased awareness of purchase options
• The evaluation process is longer and more satisfying
DemandGen Report Survey 2014

What Role does Social Media Play?

The Core Consequences
1. Consumers and buyers connect with brands in
fundamentally new ways – often beyond
manufacturers’ or dealers' control.
2. They evaluate a shifting array of options during the
evaluation process and remain engaged with the
brand after purchase.
3. Customers can have as much information and
knowledge, as vendors do.
Its no longer about “information” it’s about creating and
capturing CUSTOMER VALUE!
You need a customer driven marketing strategy!

Customer Driven Marketing
http://launch.getaltitude.com/#
Eben Pagan

From Product- Focus to Customer
Focus
Product
Price
Place
Promotion
Customer Needs
Customer Cost
Convenience / Access
Communication
McCarthy: Basic Marketing: A managerial approach, 1960
Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993

From Product- Focus to Customer
Focus
• Making a sale
• Abundance of products
in the nearby shopping
centers
• Television, magazine,
and direct-mail ads
• Satisfying customer
needs
• Imaginative Web sites
and mobile phone apps,
blogs, online videos, and
social media
• Reach customers
directly, personally, and
interactively
Traditional View Contemporary View
Kotler, Armstrong 2014

Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
Marketing: Creating Customer Value and
Engagement
Amazon.com’s deep-down passion
for creating customer engagement,
value, and relationships has made it
the world’s leading online retailer.
Amazon has become the model for
companies that are obsessively and
successfully focused on delivering
customer value.

Customer Driven
Digital Marketing

November 2015 Dr. Ute Hillmer
17-2
Direct,Online,SocialMedia,and Mobile
Marketing
‘The key question
is not whether to
deploy Internet
technology –
companies have
no choice if they
want to stay
competitive – but
how to deploy it.‘
Porter, M. (2001) Strategy and the Internet,
Harvard Business Review, March 2001, 62–78.

Learning Objectives
• Define direct and digital marketing and discuss their
rapid growth and benefits to customers and
companies
• Identify major forms of digital marketing strategies
and understand the underlying objective. Away from
individual tactics to the overall plan
• Understand the sales funnel in digital marketing –
Growth Hacking

The NewDirectMarketingModel
=ANewBusinessModel
For many companies
today, direct and
digital marketing
constitute a complete
model for doing
business.
Copyright © 2016 Pearson Education, Inc.
17-7

WhatDigitalBusinessesDoYouUseToday?
• What complete digital B-models do you use
today?
• Which additional ones do you know?

ANewArea in Products and Channels
Illustration copyright of Steve Blank, „The Startup Owners Manual“

RapidGrowthof DirectandDigital Marketing
Direct and digital marketing have become the fastest-growing
form of marketing.
• U.S. companies spent almost $133 billion on direct and digital
marketing in 2014
• direct-marketing-driven sales amount to over $2 trillion
= for 35% of the U.S. economy
Direct marketing continues to become more Internet-based,
and digital direct marketing is claiming a surging share of
marketing spending and sales.
• Over the next four years, digital marketing expenditures and
digitally driven sales are expected to grow 9%/year.
• 50% of total sales are influenced by online research
Source: DMA

Task:
What Components and
Forms of Digital Marketing
do you know?
Circle, where you have personal
experience
Pin them on the wall!

FormsandComponentsof „DigitalMarketing“
Company Website
Google Adwords
PPC Advertising
Press Releases
Search Engine Marketing
Search Engine Optimization
Keyword Research
Landing Pages
Blogging
Content Marketing
Lead Capture Forms
Social Media Marketing
Facebook
Twitter
Google+
LinkedIn
Instagram
Pinterest
WhatsApp
Copywriting
eCommerce
WebDesign
Mobile Responsive
Affiliate Marketing
Autoresponders
EMail-Marketing
Video-Marketing
CRM Systems
Display Ads
Banner Ads
Podcasting
Graphics design
Text Message Marketing
Retargeting
Site Programming
…

The
to get started

The Customer
Dialog is
changing

Dialog Marketing
Is nothing new:
customer visits
telephone calls
discussions
email
business lunches
mail
trade shows
…

But Dialog Marketing had to change …
Customer Dialog is emancipated
Sender Receiver

Changing Communication to a Dialog
Sender
Receiver

CommunicationModelsfor
TraditionalandNewMedia
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice, 5th edition © Pearson Education Limited 2013

TheDegreeof Individualization
forTraditionaland NewMedia
(a) traditional
media: same
message
(b) new media =
often unique
messages and
more
information
exchange
between
customers

Chances + Risks of a Customer Dialog
competitiveadvantage
When companies look at their
products and services from a
customer point of view, they can gain
huge competitive advantages.

enhancecustomerloyalty
Engagement of the
customer
+
Interest and appreciation
by the selling company
enhances customer
loyalty

Chances + Risks of a Customer Dialog truly
understandcustomerneedsandenhanceproducts
It’s more than online information
gathering.
Customers exchange their needs, their
preferences and their interests online.

wincustomers
Happy customers develop the need to
let other customers know that they
found a product or service that works
for them:
Word of mouth + growth hacking

3 Key Points of any (Online) Dialog
1. Build trust by helping your customer to
make the right decision. Show them a win-
win
2. Learn about the needs and problems of
your customers
3. Build an infrastructure so customers can
refer to you

Consequences: The Brand changes
The customer
fundamentally
influences the brand
– beyond any
marketing control

Consequences: Support changes
Customers exchange
experiences and
insights. They can
often help each other
timely and with a lot of
detailes knowledg

Consequences: The Dialog changes
Customers can do
more than buy –
satisfied customers
are the best sales
team

Task:
What are Benefits of Digital
Marketing to Buyers and to
Sellers?
Pin / write them on the wall!

Benefitsof DirectandDigitalMarketingto
Buyers
• Convenience
• Ready access to many products
• Access to comparative information about
companies, products, and competitors
• Interactive and immediate
17-9

ThePowerof Recommendations:
„I‘llHaveWhatShe isHaving“

Benefits, Online Buyers see
• Low Prices (38%)
• Shopping Convenience
(35.1%)
• Easy To Compare
(33.1%)
• Free Shipping (31.5%)
• Time Saving (30.8%)
• Easy To Buy (29.2%)
• Range of Products
(17.4%)
Infographic by Invesp (sources data from eMarketer and Internetretailer.com)
Don’t take these things at face value, because not everything
is as it seems. Ask your customers or test it

Benefit: Low Prices + Price Comparison
• Price
transparency
• Easy price
comparison
• Comparison
Shopping
Engines
Source Will Web Browse for Food: Wall Street Journal

Benefit: Customer Service
A survey by A Forrester
survey asked 4,600 US
consumers across 12
industries which they
thought was more
important, “great
customer service” or
“low prices.” Customer
service won across the
board.
Source: https://experiencematters.wordpress.com/2009/05/17/customer-service-trumps-price/http://conversionxl.com/

Benefit: Shopping Convenience
Shoppers order when
and where it’s most
convenient for them.
Mobile devices are
changing eCommerce
Every year, mobile e-
commerce sees
significant growth and
is redefining how we
shop online.
Source: http://www.ibtimes.com/mobile-devices-are-changing-ecommerce-
heres-how-1297265 http://conversionxl.com/

Benefit: Easy to Compare
• People always
compare
• The average
consumer will
visit 3 websites
before making a
purchase
• He/she will likely
spend more
money with sites
they visit more
frequently.
http://conversionxl.com/

Benefit: Free Shipping
For whatever reason,
a free shipping offer
that saves a
customer €5 is more
appealing to many
than a discount that
cuts the purchase
price by €8.

Benefit: Time Saving/ Easy to Buy
We want ways
to get our
products faster.
#1 having stuff
buy regularly
delivered to
where you need
it on a
subscription
basis.

Benefit: Time Saving/ Easy to Buy
#2 through product
recommendation
engines

Benefit: Range of Products
Selection matters:
You should have enough inventory
to satisfy your customers demands.
Torrid:
“we have good looking stuff,
probably in your size” which for the
plus size market, is important.

Benefitsof DirectandDigitalMarketingto
Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels
• Cost reductions from:
– reduced time in customer service
– online sales
– reduced printing and distribution costs of mktg. material
• Measurability of Marketing Effectiveness 17-10

Benefitsofdigitalmarketing–The5Ss
The 5 Ss of Internet marketing
Sell more
Serve extra benefits
Speak 2 way
Save on Marketing
Sizzle

Porter’s Five Forces
Chart: http://www.ecclesiastical.com

Task:
How do the 5 Forces
change with digital
marketing?
Teams of 3, 10 Minutes to collect + discuss

ImpactoftheInternetonthefivecompetitiveforces

How can we
categorize Digital
Marketing?
Let’s take out selection and find
categories!

Goals to be achieved in Marketing
Information
Goals
Image
Goals
Economic
Goals
Improved customer insight
Presentation as a market
leader
Awareness, visits,
registrations, sales…
Improved product
insight
Presentation as innovation
leader
Customer loyalty and
-penetration
Generation of ideas
Presentation as a Good
Citizen Sales and recommendations
… …
Cost reduction

Key Online Media Types by Controllability

Key Online Media Types
by Communication Concept

by Marketing Categories
Chaffey and Smith, 2008

by DigitalArchitecture
Source: modified after Storymaker
WEB-
SITE
Micro-
Site
Online-
PR
PUSH/PULL
News-
letter
Customer
WEB-
SITE
Communication
Channel
Corporate Hosting

Objective of Web Presence
• Transactional e-
commerce site
• Services-
oriented/relationship
building
• Brand Building site
• Portal or media site
• Social network or
media site
• Freemium service
sites
Note that these types overlap!

Channelsrequirean
IntegratedDigitalMarketingStrategy
Chaffey et al., Digital Marketing: Strategy, Implementation and Practice

Old and New Media Compared

on

Task:
Discover Online Marketing
Strategies and their
Differences
Discuss how companies use direct, online,
social media and mobile marketing to their
advantage and to reach their outcome.

Investigate Digital Marketing Strategies
(TeamSize 3)
Investigatetwo examplesofthislist(orsuggestanotheronetome)
• Transactional e-commerce site
– Amazon, Dell, Mymuesly.com, Apo-rot.de, e-bay, Audible
• Services-oriented/relationship building
– Daimler Trucks, Festools.de, Accenture, British Gas, Salesforce, IBM, Bosch, Zeiss Camera Lenses,
Sage.com, Krones.de, Dell.com, Avira, Datev
• Brand Building site
– Nestle, Guinness, Coca-Cola, Litago.no, Tango, your favourite brand? …
Investigatetwo moreexamplesofthislist(orsuggestanotheronetome)
• Portal or media site
– Yahoo!, Bing, Silicon.com, wall street journal, …
• Social network or media site
– Xing, LinkedIn, Facebook, Twitter, …
• Freemium service sites
– Evernote, Spotify, Feedly,

Hands on Exploitation (TeamSize3)
What comes across as their Value Proposition?
Who seems to be their Ideal Customer?
In what channels are they present?
• Why are they there? (their goal)
• Who is their ideal customer in this activity? (their #1 target)
• How do they do it? What media channels do they use? Explain why you think they use
them.
• Do they do cross media activities? Their 360° approach)
• Do you think they achieve their goal? What do they do well, what should be improved?
(your evaluation)
• Show us some examples of what they do - especially really good or really bad (teach us)
Take notes, prepare a presentation or demonstration
that SHOWS what you saw,
you have 120 min preparation time
15 Minutes presentation time
we’ll discuss Digital Media while you work and present

Lead Generation
Online: The Digital
Launch Process

Key Campaign Planning Issues
• The Goal
– which specific goals should be set for online campaigns
and how do we measure success?
• The Reach
– How to get Traffic
• The Response
– What response mechanisms will be most effective?

Campaigns are Not New

Digital Campaign Communication Flow
• One-to-one
• One-to-many
with and without the
Internet

November 2015 Dr. Ute Hillmer Source: Millward Brown Qualitative
Campaign Characteristics Offline - Online
True?

Product / Project Launch Campaign
Source: Myrco Thum

Product Launch Formula
http://productlaunchformula.com/sideways-video/

Mental Triggers
• Community
• Anticipation
• Authority
• Reciprocity
• Social Proof
• Scarcity
• Conversation
• Trust
• Events/Rituals
• Likability
• Commitment

Campaign Characteristics Offline-Online

Properties of Different Media

Measures used for setting campaign objectives or assessing campaign success
increasing in sophistication from bottom to top
Measures for Campaign Success

Range of Response Mechanisms from Online

Excurse:
Getting Started with
Digital Marketing

How to get started with Digital Marketing
1. StayFocusedonyourObjective
• Which channel, which medium,
which platform will help me reach
my target?
• Define marketing goal
• Define target markets
Be where your
customers are!!

How to get started with Digital Marketing?
2. Whatdoyouintenttoachieve?
• Win additional customers
• Gain a new customer base
• Increase sales
• Increase awareness
• Enter new markets
• Increase communication with
customers
• Increase website traffic
• Increase image
• Change image
• Increase online reputation
As with traditional marketing:
set yourself realistic goals!

Howto getstartedwithDigitalMarketing
3. Whereareyourcustomershavingtheirconversations?
“Let's spend a day in your customers
media mix and learn to understand
what they experience, how they feel,
and most of all, how they
communicate and interact. “
Kevin Colleran, Facebooks #1 Sales Rep
LISTEN!!
talk
energize
support
Integrate
BOND

How to get started with Digital Marketing
4.don’tgetconfused,thinkofCustomerTouchPoints
instead…
Source: Wave 7

AGeneric Digital Marketing Strategy
Development Process

RACE: Reach-Act (Interact)-Convert-
Engage
Smart Insight 2013

Figure 1.11
Social Media Marketing Radar
Chaffey, SmartInsights.com, 2011

Website Development Project Plan
Chaffey, SmartInsights.com, 2011

Excurse B2B:
Who is Digital
Marketing for ?

The Nerd is Online

B2B Decision Makers might not be online
–but their assistants may
• Digital Marketing is impacting
how B2B decisions are being
made.
– Background research
– Learning + Expertise
– Search results impact

The B2B buyers are
no shoppers,
they are researchers!
37% of B2B
Buyers use
Social to help
them make
purchasing
decisions
(IDC)

Social Media and the Buying Process
Post-sales
user-experience reports
support + help
complains, learning, upgrading
Sales
looking for the best deal
Decision Making
learning about the topic,
selecting and weighting evaluation criteria
evaluating options,
Pre-sales
looking for information

Customers + Web 2.0Technologies

Who is Online?

For How Long?

Key Information Sources

What Role does Social Media Play?

If you think…
your Company does not have to be Online,
Think again…

The Dell Hell Case Lesson
People talk about your company - with or without you
… don’t you want to steer the direction best you can?
Dell Hell: starting point in 2005

Dell Hell

Dell Hell 2
“Obviously a lot of people are in the blogosphere
talking about their issues with Dell products, why aren’t
we doing anything about it?”
Michael Dell, 2006

Dell
2006:“Obviously a lot of people are in the blogosphere talking about
their issues with Dell products, why aren’t we doing anything about
it?” Michael Dell, 2006
2011: Dell named “most social brand
of 100 top brands”

The
Trends
Image by Conversion XL

Figure 1.12 Evolution of web technologies
Source: Adapted from Spivack (2007)

Intelligent PersonalAgents Nov. 2015
TNW News Nov 3, 2015

Dankeschön!

252 von EndSeitenzahl
HERZLICHEN DANK FÜR
IHRE AUFMERKSAMKEIT!
GIBT ES FRAGEN?
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

Customer Driven Digital Marketing

More Related Content

What's hot

Similar to Customer Driven Digital Marketing

More from Dr. Ute Hillmer (PhD)

Recently uploaded

Customer Driven Digital Marketing