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- 1. Digital Marketing Excellence Planning, Optimizing and Integrating Online Marketing Fifth Edition Dave Chaffey & PR Smith 1
- 2. 2 Contents Chapter 1 – Introduction to digital marketing Chapter 2 – Remix Chapter 3 – Digital models Chapter 4 – Digital customers Chapter 5 – Social media marketing Chapter 6 – Designing digital experiences Chapter 7 – Traffic building Chapter 8 – Customer lifecycle communications and CRM Chapter 9 – Managing digital marketing Chapter 10 – Digital marketing plan
- 3. 3 1 Chapter Introduction to digital marketing This chapter introduces what we see as the fantastic potential of integrated digital marketing for engaging audiences and its risks. It introduces the difference between e-commerce, digital business and digital marketing; the alternative digital communications channels; the dangers of sloppy digital marketing; how to present a business case for increasing your online activities, and the benefits of doing so – Sell, Serve, Speak, Save and Sizzle.
- 5. 5 1.2 Situation – the connected world Electronic marketspace MARKETPLACE Digital marketing platforms • Desktops, laptops and notebooks • Mobile phones and tablets • Other hardware
- 6. 6 1.2 Situation – the connected world Digital activity from consumers Need for analysing and meeting demand for online services Tools for assessing your online marketplace: 1. Google insights tools 2. SimilarWeb 3. Nielsen 4. ComScore 5. Internet or Interactive Advertising Bureau (IAB) 6. Government sources 7. Non-government organizations 8. IMRG
- 7. 7 1.3 Situation – B2C, B2B, C2B and C2C Figure 1.3 Options for online communications between an organization and its customers Types of online presence 1. Transactional e-commerce site 2. Services-oriented relationship building or lead-generation web site 3. Brand-building site 4. Portal of media site 5. Social network or community site Chaffey & Ellis (2015)
- 8. 8 1.4 Situation – digital marketing definitions E-commerce Selling online and the ability to transact online + Digital business Involves the automation of all the business processes in the value chain Dynamic dialogue = Digital marketing Customer driven discipline Customers & Suppliers
- 9. 9 1.4 Situation – digital marketing definitions Figure 1.5 Eight key digital marketing activities to manage in all organizations Integrated digital marketing activities Activities that require planning, management and optimization for online marketing to be competitive and maximize ROI.
- 10. 10 1.4 Situation – digital marketing definitions Right touching = every customer interaction to a communication should be followed up by a series of relevant communications delivered via the right combination of channels to elicit a response or further dialogue Checklist for right touching Search marketing Behavioural targeting or online advertising Multi-touches across different digital media channels for acquisition Customer lifecycle model and welcome strategy Increasing online attrition Delivering relevant recommendations for retention and growth Following up on customer product or promotion interest Getting the frequency right Getting the channel right Getting the offer right
- 11. 11 1.4 Situation – digital marketing definitions Marketing Principles • Serve them • Involve them • Find the best ones • Add value • Get close to customers, listen to them • Nurture them into lifelong customers and advocates • Test, test, measure and improve Digital marketing? Identify, Anticipate, Satisfy customers needs efficiently
- 12. 12 1.5 Situation – sloppy digital marketing Figure 1.7 Digital marketing sloppiness causes high attrition rates Minimizing the impact of customer complaints • The customer service operation is equipped to monitor and engage with a targeted spectrum of media. • Companies fully understand where, why and how their customers are using social media before making any social media marketing changes. • A balance is struck across different types of media – telephone, email, web, social, network and mobile. • The power of online communities is recognized, and customers are encouraged to help each other. • Relationships are nurtured with advocates who wield particular influence on the internet. • Specialist tools are used to measure the impact of customers’ online activity.
- 13. 13 1.6 Objectives The 5S – digital marketing objectives Sell – Grow sales Serve – Add value Speak – Get closer to customers Save – Save costs Sizzle – Extend the brand online Benefit of digital marketing How it is delivered Examples Through wider distribution, promotion, sales Through giving customers extra benefits online or inform product development through online dialogue and feedback. By tracking them, asking them questions, creating a dialogue, learning about them. Through online email communications, sales and service transactions to reduce staff, print and postage costs. Through providing a new proposition and new experience online while at the same time appearing familiar. Achieve 10% of sales online Increase conversion rate by 5% Grow email coverage to 50% of current customer database Generate 10% more sales for same communications budget Add two new significant enhancements to the customer online experience
- 14. 14 1.6 Objectives Figure 1.8 Ultralace, source: www.ultralase.com
- 15. 15 1.7 Objective – sell – using the internet as a sales tool Direct online revenue contribution % of sales transactions completed online To increase this %, using mixed-mode or multichannel selling is a must
- 16. 16 1.7 Objective – sell – using the internet as a sales tool Figure 1.9 ROPO matrix showing main cross-channel customer behaviours Source: Google (2010)
- 17. 17 Indirect online revenue contribution % of sales influenced by digital communications 1.7 Objective – sell – using the internet as a sales tool Tagging value events to assess the influence of a web site and digital channels on sales • Sale • Lead • Newsletter • Searches • Product page views • Product document downloads
- 18. 18 1.7 Objective – sell – using the internet as a sales tool The Ansoff matrix Selling what to whom? Figure 1.10 Online opportunities for product and market innovation
- 19. 19 1.8 Objective – serve – using the internet as a customer-service tool Measures of online customer engagement Engagement metric Engagement tactic 1. % of non-home page entry visits 2. Bounce rate 3. Duration 4. Marketing outcomes 5. Micro or step conversation rates 6. Brand search-term strength 7. Email activity level 8. Define activity levels or hurdle rates (for different activities 9. Emotional response 10. Outcomes Use run-of-site OVP messages Use a run-of-site sign up Use heatmaps or overlays to assess management Get your scent right Interactive sales advisers Generate awareness Refined touch strategy Personalize by activity or lifecycle of content in web or email pods Mutivariate testing Use secondary navigation to highlight next steps
- 20. 20 1.8 Objective – serve – using the internet as a customer- service tool Adding value to B2B services – Seybold (1999) “Let customers help themselves” e.g. delivery of product, after-sales support “Help customers do their jobs” e.g. give content about best practice to help professionals complete their day-to-day work and develop their professional careers
- 21. 1.9 Objective – speak – using the internet as a communications tool Figure 1.11 Categories of media: paid, owned, earned Pull mechanism: in Digital marketing, the contact with the brand is initiated by the customer Inbound marketing Good visibility from companies in search engines is essential Content marketing 1. Content engagement value 2. Content media 3. Content syndication 4. Content participation 5. Content access platform 21
- 22. 1.9 Objective – speak – using the internet as a communications tool Figure 1.12Inbound marketing infographic Source: First 10 (2012) Key digital media channels 1. Search engine marketing (SEM) 2. Online PR 3. Online partnerships 4. Interactive advertising 5. Opt-in email 6. Social media marketing 22
- 23. 1.10 Objective – save – using the internet for cost reduction What will catch the financial director’s ear together with “sell”? SAVING Profitability (money, time, effort) Savings emerge: - Digital media channels - Customer service - Transactional costs - Print and distribution Cost Per Acquisition (CPA) – crucial in controlling media, used to control the level of bids CPA = (100/conversion rate) x Cost Per Click CPA = Cost Per Click/Conversion rate 23
- 24. 24 1.11 Objective – sizzle – using the internet as a brand- building tool SIZZLE To add extra value, extend the experience and enhance the image What experience could a web site deliver that would be truly unique and representative of the brand? Reality Perception
- 25. 25 1.12 Introduction to digital marketing strategy Digital marketing strategy channel strategy where electronic channels and digital media support other communications and distribution channels. - Clear prioritization to how the channel should be used - Identify target markets, positioning, OVP, choice of mix of digital media channels to acquire new customers and contact strategies to welcome and develop existing customers Creating differential value
- 26. 26 1.12 Introduction to digital marketing strategy E-strategy • Crystal clear objectives What you want to achieve online • Target markets, positioning and propositions • Optimum mix of tactical e-tools • Evolutionary stage • Online marketing mix • Dynamic dialogue • Integrated database Web site, banners ads, etc What stage you want to be at Particularly service levels Ongoing with the customer Recognize and remember each customer whether via web or telephone
- 27. 27 1.12 Tactics, Action and Control Figure 1.13Using the Smart Insights RACE Planning framework to link business objectives to digital marketing tactics Tactics are the details of strategy. Tactical e-tools include the web site, opt-in email, banner ads, virtual exhibitions and sponsorship. Actions include project planning and implementation, while control involves assessing the results against objectives. Control also includes competitive intelligence.
- 28. 28 Chapter summary • PR Smith’s SOSTAC® –Situation analysis, Objectives, Strategy, Tactics, Actions and Control. • The connected world connects businesses to consumers using an ever-increasing range of platforms. • Digital marketers need to assess the particular relevance of B2C, B2B, C2C, C2B marketing to their organization • Digital marketing can assist in all elements of marketing – providing new techniques to identify, anticipate and satisfy customer needs efficiently. • Risk assessment can minimize the risk of sloppy digital marketing. • Clear objectives using well-directed resources and measurements are required. • The 5S objectives are Sell, Serve, Speak, Save and Sizzle. • Smart Insights RACE = Reach Act Convert Engage • E-strategy entails defining approaches to achieve digital marketing objectives using a range of tactical e-tools and a revised marketing mix.
Editor's Notes
- Learning outcomes: ● Understand the opportunities and risks of integrated digital marketing ● Outline an approach to developing a digital marketing plan ● Explain the key digital marketing activities needed for competitive success.
- SOSTAC® is a planning system used by thousands of professionals to produce all kinds of plans (marketing plans, corporate plans, advertising plans and digital marketing plans).
- Let’s consider the current situation of digital marketing – where the marketplace migrates into the electronic marketspace. How significant is this change? Fixed and mobile access to the Internet is continuing to grow rapidly and seamlessly across borders and into an online world already inhabited by over three billion customers. Given its scale and the benefits it offers to these customers and businesses, it is a big part of the future of all businesses. Mobile devices are now the most common way of accessing the Internet, superseding desktop computers or laptops. What are the up-and-coming ways of accessing the Internet? Desktop, laptop and notebook platforms: desktop browser-based platforms, desktop apps, email platforms, feed-based and API data exchange platforms, video-marketing platforms Mobile phone and tablets platforms: mobile operating system and browser, mobile-based apps Other hardware platforms: gaming platforms, indoor and outdoor kiosk-type apps, interactive signage
- To effectively plan your digital marketing to predict your results, you need to tap into the wealth of research about current Internet usage and future trends. More customers are spending an increasing part of their lives in the digital world. Marketers need to analyze demand by consumers for online services and respond to customers’ needs in this new connected world.
- This dynamic dialogue is at the heart of good marketing. Digital marketing builds on the data-base (of customers and prospects) and creates a constant flow of communications between customers and suppliers and between customers themselves. It’s a two-way flow of communications – an ongoing discussion between customer and supplier.
- This dynamic dialogue is at the heart of good marketing. Digital marketing builds on the data- base (of customers and prospects) and creates a constant flow of communications between customers and suppliers and between customers themselves. It’s a two-way flow of communications – an ongoing discussion between customer and supplier.
- 1 Search marketing. When a prospect uses a search engine to search for a company or brand name or a specific category or product, a paid search ad from the company or content in the natural search results as explained in Chapter 7. 2 Behavioural targeting or online advertising: When a prospect interacts with content on a media site or searches on a specific term, a sequence of follow-up ads known as behavioural retargeting should be displayed as they visit other sites within a network and the destination site of the merchant paying for the advertising. 3 Multi-touches across different digital media channels for acquisition. Use tracking and develop attribution models through web analytics to understand the sequence and combination of different digital media channels (search, afffiates, display ads or aggregators) which generate the most cost-effective response. How do you allocate the channel to the outcome? Do you simply do ‘last click wins’ or do you weight across the different touch points as we discuss in Chapter 3? 4 Customer lifecycle model and welcome strategy. When a prospect subscribes to an email newsletter, enquires about a service or makes a first purchase, a welcome communications strategy should be in place which uses a sequence of email and possibly personalized web recommendations, direct mail and phone communications to educate the customer about the brand or product and generate the initial sale. This should aim at building a relationship and then developing a commitment from rst-time visitor, to repeat visitor to qualified prospect, to rst-time customer and then repeat customer, increasing customer lifetime value. 5 Reducing online attrition. When a shopper abandons their shopping basket, a combination of communications should seek to win them back. Alternatively, after a quotation, for example, for a car policy, follow-up emails should remind customers about the benefits of taking out the policy. 6 Delivering relevant recommendations for retention and growth. When an existing customer returns to a site, a personalized container should be available on every page to deliver relevant personalized promotions. Amazon recommendations are the best-known examples; another is of ce supplier Eurof ce (www.eurof ce.co.uk, Figure 1.6) which delivers relevant recommendations to prospects and customers according to their position in the lifecycle, segment and previous purchases. Similarly, dynamic content panels within emails do the same. 7 Following up on customer product or promotion interest. When a customer clicks on a link in an email or interacts repeatedly with content on a site, is there an automated work ow triggering an email, remarketing ad on social media, direct mail or phone reminder about the offer? 8 Getting the frequency right. Effective right touching requires that messages stay engaging, relevant and do not become too intrusive or too repetitive. So you should put limits on the maximum number of emails that are sent in a period (e.g. one a month or one a week) and the interval between them (e.g. an interval of at least three days). 9 Getting the channel right. Right channelling means using the best channel(s) for the customer, which fit their preferences, and the right channel for the company, which gives them the best combination of cost and response. It means that you may be able to upweight email communications for some customers because they interact and respond to them, so reducing costs of direct mail. But other customers on an email list may not respond to or may dislike email, and so direct mail is upweighted to them. 10 Getting the offer right. Offers will vary in effectiveness according to the audience targeted and this will be shown by their pro les and customer journeys indicated by the media and content they have consumed. Can you identify the Next Best Product for previous purchasers? So right touching requires that testing is built-in to deliver the right messages and right sequences of communications for different audiences.
- E-commerce generally refers to paid-for transactions, whether B2C or B2B, but some commentators include all communications between customers and business. Digital business is broader, including e-commerce, and is a means to optimize all business processes that are part of the internal and external value chain. Digital marketing is best considered as how digital marketing tools such as web sites, CRM systems and databases can be used to get closer to customers – to be able to identify, anticipate and satisfy their needs efficiently and effectively.
- There are many examples of poor digital marketing. this may result from unclear objectives, lack of strategy or simply lousy execution. Marketers should assess and minimize the risks before embarking on digital marketing.
- Organizations need to be clear about the objectives of digital marketing, so that the appropriate resources can be directed at achieving these objectives. a useful framework for developing objectives is the 5ss of sell, serve, speak, save and sizzle.
- Organizations need to be clear about the objectives of digital marketing, so that the appropriate resources can be directed at achieving these objectives. a useful framework for developing objectives is the 5ss of sell, serve, speak, save and sizzle.
- Companies must be able to sell or transact online to meet these customers’ new online needs. A key objective to set is the direct online revenue contribution for different products and different markets. This defines the proportion of sales transactions completed online. For example, a bank might try to achieve 15 per cent of its insurance sales online in the UK. But remember that many other products and services are partly bought online. Shoppers browse online, collecting information, prices and special offers before visiting stores and showrooms or picking up the phone to negotiate better deals. So mixed-mode or multichannel selling is a must! Organizations have to support customers who want to be able to buy both online and offline.
- Typical value events include: ● sale (by tagging a sales confirmation page) ● lead (by tagging an enquiry or document download form) ● newsletter registration (tagged confirmation page) ● searches (tagging a search results page) ● Product page views (tagging product pages) ● Product document downloads (tagging document download pages). don’t forget offline value events such as sales generated by phone numbers. You should aim to track these through using unique phone numbers, perhaps for different parts of the site. The clearest benefit of digital marketing is the capability to sell from an online presence. although this may not be practical for all products, an online presence is still important in supporting the buying decision leading to sales through traditional channels. You should use your web analytics system to tag different types of value event web pages which indicate that your goals are being achieved. an online presence also offers opportunities to sell into new markets and reach particular segments.
- How effectively you serve and speak to your online audience is indicated by measures of online customer engagement. You should assess customer engagement both for web site visitors and email subscribers and break it down by different online segments such as different audience types and visitors referred from different sources such as search engines or online ads. A web presence can be used to add value for customers at different stages of the buying process, whether pre-sales, during the sale or post-sales support.
- Today’s main types of media are: 1 Paid media. Paid or bought media are media where there is investment to pay for visitors, reach or conversions through search, display ad networks or affiliate marketing. Offline traditional media like print and TV advertising and direct mail remain important, accounting for the majority of paid media spend. 2 Earned media. Traditionally, earned media has been the name given to publicity generated through PR invested in targeting influencers to increase awareness about a brand. Earned media also includes word of mouth that can be stimulated through viral and social media marketing and includes conversations in social networks, blogs and other communities. It’s useful to think of earned media as developed through different types of partners such as publishers, bloggers and other influencers including customer advocates. Think of earned media as different forms of conversations occurring both online and offline; these still all require investment. 3 Owned media. This is media owned by the brand. Online, this includes a company’s own web sites, blogs, mobile apps or their social presence on Facebook, LinkedIn, Google+, Twitter or YouTube. Offline-owned media may include brochures or retail stores. one of the many benefits of digital marketing is getting close to customers again – speaking to them. You can explore the other benefits (selling, serving, saving and sizzling) now or later.
- For example, CPA is £40, with a CPC of £2 and a conversion rate of 5 per cent. To set target goals for allowable CPA depends on the value delivered by the customer acquisition across their lifetime; i.e. we also need to factor in the revenue generated from an individual product sale, total basket size or predicted lifetime value, typically over a five-year period. A final note on CPA is that you need to take into account telephone sales influenced by the web site and the contribution that the media channel makes to developing brand awareness, familiarity and favourability. For example, display advertising may not be justified in terms of CPA alone, but it may support sales through other digital channels such as paid search. Digital marketing saves money in many different ways. Of all the benefits of digital marketing (selling, serving, speaking, saving and sizzling), saving is the one that will help to present any business case, as the financial fraternity relate to savings very quickly. the other benefits of digital marketing (selling, serving, speaking and sizzling) will strengthen your business case.
- Objectives should also consider how to enhance a brand by adding value online. This can include adding to the experience of the brand through interactive facilities. Protecting the brand through achieving trust about security and confidentiality is also important.
- Digital strategy must define a company’s approach to achieving its digital marketing objectives. It should include the range of tactical digital tools and a revised marketing mix.