Digital Marketing Excellence Planning Optimizing and Integrating Online

Digital Marketing Excellence Planning, Optimizing and Integrating Online Marketing Fifth Edition Dave Chaffey & PR Smith 1

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 2

Chapter 1 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. 3

1. 1 Introduction 4

1. 2 Situation – the connected world Digital marketing platforms MARKETPLACE • Desktops, laptops and notebooks • Mobile phones and tablets Electronic marketspace • Other hardware 5

1. 2 Situation – the connected world Need for analysing and meeting demand for online services Digital activity from consumers Tools for assessing your online marketplace: 1. 2. 3. 4. Google insights tools Similar. Web Nielsen Com. Score 5. 6. 7. 8. Internet or Interactive Advertising Bureau (IAB) Government sources Non-government organizations IMRG 6

1. 3 Situation – B 2 C, B 2 B, C 2 B and C 2 C Types of online presence Chaffey & Ellis (2015) 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 Figure 1. 3 Options for online communications between an organization and its customers 7

Selling online and the ability to transact online + Digital business Involves the automation of all the business processes in the value chain Dynamic dialogue E-commerce Customers & Suppliers 1. 4 Situation – digital marketing definitions = Digital marketing Customer driven discipline 8

1. 4 Situation – digital marketing definitions Integrated digital marketing activities Activities that require planning, management and optimization for online marketing to be competitive and maximize ROI. Figure 1. 5 Eight key digital marketing activities to manage in all organizations 9

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 Delivering relevant recommendations for retention and growth Following up on customer product or promotion interest Getting the frequency right Customer lifecycle model and welcome strategy Getting the channel right Increasing online attrition Getting the offer right 10

1. 4 Situation – digital marketing definitions Marketing Principles • Get close to customers, listen to them • Involve them • Serve them • Add value • Find the best ones • Nurture them into lifelong customers and advocates • Test, test, measure and improve Digital marketing? Identify, Anticipate, Satisfy customers needs efficiently 11

1. 5 Situation – sloppy digital marketing Minimizing the impact of customer complaints Figure 1. 7 Digital marketing sloppiness causes high attrition rates • 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. 12

1. 6 Objectives The 5 S – digital marketing objectives Benefit of digital marketing How it is delivered Sell – Grow sales Through wider distribution, promotion, sales Achieve 10% of sales online Through giving customers extra benefits online or inform product development through online dialogue and feedback. Increase conversion rate by 5% Serve – Add value Examples Speak – Get closer to customers By tracking them, asking them questions, creating a dialogue, learning about them. Grow email coverage to 50% of current customer database Save – Save costs Through online email communications, sales and service transactions to reduce staff, print and postage costs. Generate 10% more sales for same communications budget Through providing a new proposition and new experience online while at the same time appearing familiar. Add two new significant enhancements to the customer online experience Sizzle – Extend the brand online 13

1. 6 Objectives Figure 1. 8 Ultralace, source: www. ultralase. com 14

1. 7 Objective – sell – using the internet as a sales tool Direct online revenue contribution To increase this %, using mixed-mode or multichannel selling is a must % of sales transactions completed online 15

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) 16

1. 7 Objective – sell – using the internet as a sales tool Indirect online revenue contribution % of sales influenced by digital communications 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 17

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 18

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 Use run-of-site OVP messages 2. Bounce rate Use a run-of-site sign up 3. Duration Use heatmaps or overlays to assess management 4. Marketing outcomes Get your scent right 5. Micro or step conversation rates Interactive sales advisers 6. Brand search-term strength Generate awareness 7. Email activity level Refined touch strategy 8. Define activity levels or hurdle rates (for different activities Personalize by activity or lifecycle of content in web or email pods 9. Emotional response Mutivariate testing 10. Outcomes Use secondary navigation to highlight next steps 19

1. 8 Objective – serve – using the internet as a customerservice tool Adding value to B 2 B 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 20

1. 9 Objective – speak – using the internet as a communications tool Inbound marketing Pull mechanism: in Digital marketing, the contact with the brand is initiated by the customer Good visibility from companies in search engines is essential Content marketing Figure 1. 11 Categories of media: paid, owned, earned 1. 2. 3. 4. 5. Content engagement value Content media Content syndication Content participation Content access platform 21

1. 9 Objective – speak – using the internet as a communications tool 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 Figure 1. 12 Inbound marketing infographic Source: First 10 (2012) 22

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

1. 11 Objective – sizzle – using the internet as a brandbuilding 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 24

1. 12 Introduction to digital marketing strategy Digital marketing strategy - Clear prioritization to how the channel should be used channel strategy where electronic channels and digital media support other communications and distribution channels. - 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 25

1. 12 Introduction to digital marketing strategy • Crystal clear objectives What you want to achieve online • Target markets, positioning and propositions E-strategy • 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 26

1. 12 Tactics, Action and Control 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. Figure 1. 13 Using the Smart Insights RACE Planning framework to link business objectives to digital marketing tactics 27

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 B 2 C, B 2 B, C 2 C, C 2 B 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 5 S objectives are Sell, Serve, Speak, Save and Sizzle. • E-strategy entails defining approaches to achieve digital marketing objectives using a range of tactical e-tools and a revised marketing mix. • Smart Insights RACE = Reach Act Convert Engage 28