Customer Driven Digital Marketing

Completely Revised:A Customer Driven Digital Marketing

Dr. Ute Hillmer

Better Reality Marketing

Stuttgart, 23.11.2015

A Customer Driven Marketing

Strategy: Creating and capturing

CUSTOMER VALUE in an

Online/Offline World

“Ourage ofanxiety is the result of

doing todays jobs with yesterdays

technology“M. McLuhan

WHO is Dr. Ute Hillmer? an expert in positioning and promoting technology

products, with a carving for innovative products that are not self-explaining.

With such products, human behavior is often outside the boundaries of rationality -despite its economic context.

Buying behavior is here typically a result of social, cognitive and emotional factors, along with the economic ones.

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?

I am in business to change the lives of my technology

clients by finding them hungry customers that get

them into sustainable growth!

and turn their customers into raving fans!

To take the most out of this lecture

… be in

STATE!

Agenda1. 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 Consequences1. 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!

Marketing + Sales Today: a New Buying Decision Process

Customer Driven Marketing

http://launch.getaltitude.com/#

Eben Pagan

http://launch.getaltitude.com/

http://launch.getaltitude.com/

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, Social Media, 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 New Direct Marketing Model

= A New Business Model

For many companies

today, direct and

digital marketing

constitute a complete

model for doing

business.

Copyright © 2016 Pearson Education, Inc.

17-7


What Digital Businesses Do You Use Today?

• What complete digital B-models do you use

today?

• Which additional ones do you know?


A New Area in Products and Channels

Illustration copyright of Steve Blank, „The Startup Owners Manual“


Rapid Growth of Direct and Digital MarketingDirect 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 researchSource: DMA


Task:What Components and

Forms of Digital Marketing

do you know?Circle, where you have personal

experiencePin them on the wall!


Forms and Components of „Digital Marketing“

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


Communication Models for

Traditional and New Media

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


The Degree of Individualization

for Traditional and New Media


(a) traditional media: same message

(b) new media = often unique messages and more information exchange between customers


Chances + Risks of a Customer Dialogcompetitive advantage

When companies look at their

products and services from a

customer point of view, they can gain

huge competitive advantages.


Chances + Risks of a Customer Dialog enhance customer loyalty

Engagement of the

customer

+Interest and appreciation

by the selling company

enhances customer

loyalty


Chances + Risks of a Customer Dialog truly

understand customer needs and enhance products

It’s more than online information

gathering.

Customers exchange their needs, their

preferences and their interests online.


Chances + Risks of a Customer Dialog win customers

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!


Benefits of Direct and Digital Marketing to

Buyers

• Convenience

• Ready access to many products

• Access to comparative information about

companies, products, and competitors

• Interactive and immediate

17-9


The Power of Recommendations:

„I‘ll Have What She is Having“


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/

http://experiencematters.wordpress.com/2009/05/17/customer-service-trumps-price/


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.



Benefits of Direct and Digital Marketing to

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


Benefits of digital marketing – The 5Ss

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


Impact of the Internet on the five competitive forces



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 Digital Architecture

Source: modified after Storymaker

WEB-

SITE

Micro-

Site

Online-

PR

PUSH/PULL

News-

letter

Cu

sto

me

r

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 sitesNote that these types overlap!


Channels require an

Integrated Digital Marketing Strategy

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


Old and New Media Compared



on


Task:Discover Online Marketing

Strategies and their

DifferencesDiscuss how companies use direct, online,

social media and mobile marketing to their

advantage and to reach their outcome.


Investigate Digital Marketing Strategies (Team Size 3)

Investigate two examples of this list (or suggest another one to me)

• 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? …

Investigate two more examples of this list (or suggest another one to me)

• 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 (Team Size 3)

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 Marketing1. Stay Focused on your Objective

• 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. What do you intent to achieve?

• 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!


How to get started with Digital Marketing

3. Where are your customers having their conversations?

“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’t get confused, think of Customer Touch Points

instead…

Source: Wave 7


A Generic 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 ProcessPost-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 2.0 Technologies


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

TrendsImage by Conversion XL


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


Intelligent Personal Agents 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

http://www.steinbeis-sibe.de/

Customer Driven Digital Marketing

Business

Transcript of Customer Driven Digital Marketing