DIM Strategy: Focus on social CRM and implementation
Digital (Interactive) Marketing (Lecture 3.2) Dr Elvira Bolat C113, Christchurch House, Talbot campus ebolat@bournemouth.ac.uk @dimbsbu
https://dimbsbu.wordpress.com
Learning Outcomes • Explore how the elements of the marketing mix varied online (back to discussing 4Ps vs 4Es) • Investigate digital and social CRM, i.e. multichannel marketing through CRM strategy
Source: http://www.ogilvy.com/On-Our-Minds/Articles/the_4E_-are_in.aspx
DIM - 8Ps 4Ps = 4Es + 3Ps (People, Physical evidence, Processes) +
1P (Partnership)
Right DIM marketing mix is determined by the Right DIM marketing strategy
3 Ms
Marketing Mix
Product: C5 Price: ÂŁ399 Place: electricity stores Promotion: PR coverage across the UK Targets: kids, commuters, housewives
Product: Repositioning – a fun novelty leisure item Targets: 18-25 year old holiday makers Price: doubled
Right marketing mix is determined by the Right marketing strategy (incl. STP – who is your customer; who are your competitors etc.)
Watch this!
Why STP? Formula for Marketing Success: Identify + Reflect + Satisfy
SEO Formula for Marketing Success: Identify + Reflect + Satisfy
Why would you have a website?
Source: Chaffey and Smith, 2008.
DIM - 8Ps 4Ps = 4Es + 3Ps (People, Physical evidence, Processes) +
1P (Partnership)
Product = Goods + Services = Experience
Product = Goods + Services = Experience • Core product vs Extended product • Pure digital products (i.e. publishers of the content different price points: subscription, pay per view, bundling, ad supported content) • Basic customer satisfaction factors online • UGC (Prosumer)
Product = Goods + Services = Experience • Velocity of NPD (New Product Development) • Velocity of new product diffusion (e-WOM – the Tipping point, see Chaffey and EllisChadwick 2012, p. 269-270) • The long tail concept (see Chaffey and EllisChadwick 2012, p. 269-270)
Promotion – Communication mix (tools) • 2-way and 3-way (trialogue) communication (i.e. Web 2.0, Web 3.0) • STP • Acquisition vs. Retention Marketing strategy • Long-term vs. Short-term objectives • Credibility before visibility • IMC
Web of conversations
Promotion – Communication mix (tools) • Advertising Interactive ads, PPC keyword advertising • Selling Virtual sales, affiliate marketing, web rings, links • Sales Promotions Online loyalty schemes, online incentives, rewards • PR Ezines, sponsorship, virals, SM, virtual exhibitions, WOM
• Direct marketing Email marketing, newsletters, web response • Merchandising E-tailing, website interface • Packaging
Promotion – Communication mix (tools) – key investment decisions • Investments in website promotion as opposed to website development and maintenance • Investments in digital promotion tools in comparison to offline • Investments in different digital promotion tools (SEO, online PR etc.)
Source: Chaffey and Eliis-Chadwick, 2012. Digital marketing, p. 30.
Price • Price transparency Price comparison websites / Aggregators Shopping bots Global sourcing • Downward pressure on price • Price flexibility Customer unions Reverse auctions Pay per use, rental/leasing Name your price
Price • Price flexibility Basic price Add-ons and extras Discounts Secondary sales Guarantees and warranties Refund policy Order cancellation terms Revoke action buttons • Dynamic pricing
Place • New distribution channels – swOt • Focus on multi-channel distribution • Mediation Pathways =
Web rings Infomediaries
Source: Andal-Ancion et al., 2003. The digital transformation. MIT Sloan Management Review, (summer), p. 37.
• Affiliate Partners • Atomisation • Virtual Worlds
Atomisation - example
Virtual world
3 Ps People (brand ambassadors, training and new skills (‌ + data, digital CRM, content) Processes – systems, stock control, CRM (standardization/automation, self-service, UGC, autoresponders, contact strategies, live chat/ask and answer, FQAs, text/email updates, virtual assistance) Physical evidence (website – look and feel and ease of use, develop credibility (trust) and then raise visibility)
Jakob Nielsen’s Customer Satisfaction factors 1. Delivery of relevant information 2. Easy navigation 3. Allowing download 4. Updated content
8Ps - UGC • All 7Ps + Partnership = 8Ps • Product ratings • Reviews • Discussions • Ask and answer • Customer ads • Customer virals • Customer products (examples: YouTube, myideastarbucks.com, Constant Comedy, T-short (Tradless.com) – designed by people and sol to people – cars, football clubs
Multi-channel strategy needs to be integrated with CRM strategy
E-CRM to Social CRM = Digital CRM
Key is to keep getting a customer engagement - a challenge
Forrester 2007
Benefits of Digital CRM • Cost-effective targeting (permission marketing) • Mass customisation of the marketing message • Increased depth and breath of information • A sense and respond approach • Loyalty programmes • Gamification – steps/levels approach, challenge/reward
Data • Personal and profile data • Transaction data • Communications data
Tip for assignment: check Chaffey and Ellis-Chadwick (2012, p. 328), Matrix of customer touch points for collecting and updating customer profile information!
Customer lifecycle management
Source: Chaffey and Ellis-Chadwick 2012, p. 324
Example: A sense and Respond Approach
Tip for assignment: see how and if you can use this
The contact strategy • Frequency (i.e. minimum once per quarter and maximum once per month) • Interval (i.e. a gap of at least one week or one month between communications) • Content and offers (limit on prize draws and offers) • Links (online and offline) • A control strategy
Social CRM – creating community • Linked to Advocacy • Main channels – Facebook page, Twitter account (see Asos), LinkedIn company profile and group, Google+ (see Ford), YouTube (see IBM) • A main (see hoda.co.uk/car) or separate website (see openforum.com)
Tip for developing DIM Strategy: 9 dots exercise • Draw 4 straight lines without lifting the pen