Marketing digital for fashion part 1

Laura Gelis - 2016

Digital Marketingin the Fashion Industry

Part 1

Laura Gelis - 2016

Objectives of the module• Get some insights on what is a

digital marketing strategy

• Review all the main existing digital tools and how they are used in the fashion industry

• Understand how to build a consistent digital marketing strategy

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Fashion & Digital : it’s complicated !

• Until recently, luxury fashion brands have been notoriously reticent to dabble in digital commerce and online advertising

• Things are evolving : fashion brands spend more, in global, by ramping up digital expenses

• 53% more brands ran online ads in September 2015 than in the same time period last year.

(Source Mediaradar)

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Digital : a marketing revolution

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Digital : a marketing revolutionSo Many Data

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Digital : a marketing revolutionSo Many Channels

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Digital : a marketing revolutionA new consumer

CONNECTED INFORMED& Blog Mania

Fashion Blogs : 958 000 000 resultsTwitter fashion : 2 660 000 000 results

In China there are more than 618 million Internet users and half of them are purchasing online.

Laura Gelis - 2016

Digital : a marketing revolutionNew challenges for Marketing Directors

• Understanding the « new » consumer(s)• Following the consumer journey accross all digital

channels• Making use of all digital channels in a consistent

manner• Determining which technologies/channels are relevant

– Adopting Test and Learn mindset• Managing the budget and take the right decisions• Adapting the marketing team and marketing skills

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?

Laura Gelis - 2016

Marketing Budgets are evolving to integrate Marketing Digital specific budgets :

Top areas of investment for Digital Marketing : Email MarketingWebsite performanceMobile App developmentLead managementSearch Marketing

Digital Marketing : Some Figures

The BIG headache for Marketing Directors !

Japan : 24%Germany : 24UK : 549 %France : approx 30%

% of Marketing Budget dedicated to Digital Marketing : US : 31 %China : 42%

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THE DIGITAL MARKETING STRATEGY

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DIGITAL MARKETING STATEGY

To provide a consistent direction for all digital activities in order to sustain business objectives

while being smoothly integrated with other general marketing activities.

Laura Gelis - 2016

Building a Digital Marketing Strategy

• Consistent with business strategy and marketing strategy (segmentation, targeting, positioning…)

• Set clear objectives : linked to business and specific to digital activities

• Define a value proposition specific to digital activities for consumers, prospects and partners

• Set and follow the consumer journey

• Define a communication mix to attain the objectives

• Define a budget and a roadmap

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Buildind a Digital StrategyLOUIS VUITTON

Luxury Brand

- Brand DNA- Creativity

- Know How

NET A PORTERLuxury

E-commerce

- Maximize sales / visitor

- Newness / trends- Merchandising and

promotions

UNIQLOMass Market

Retailer

- Maximize profit of each store

- Innovation- Capsule Collections

Three different business models - three different business strategy - three different digital marketing strategy

Laura Gelis - 2016

Some digital marketing specific concepts

• Engagement vs Awareness : make the consumer react to the brand (like, comment, share)

• Permission : implicit or explicit agreement of the consumer to receive messages (emailing, personal account via login…)

• Content : Digital Marketing is relying heavily on content particularly in the fashion industry

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Specific challenges

• Complexity : to build a consistent stategy accross all chanels, analyzing all datas…

• Competitive analysis : difficult to follow everything• Technological agility / savvy• Cost – digital is not free• Saturation • Being open to every new technology and have the

ability to decide if it is consistent with brand and business

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Generic digital strategies

• Create a digital value proposition to acquire and retain customers while providing engagement through products or services

• Target coverage : attract the target audience to owned media in order to increase awareness, preference and buy intentions

• Online / offline sales efficiency and impact

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Buildind a Digital StrategyLOUIS VUITTON

- Live Fashion Show- All Collections

- About the LV house- LV fondation

E-commerce is limited to small « pieces », adress of

shops

Social Networks links

NET A PORTER

- Shoppable magazine- Editorial - Products

- Full e-commerce with full suggestions to

increase sales

- No social media link except The Net Set

UNIQLO

- Products, products, products

- Full e-commerce, no suggestion, adress of

shops

- Facebook, instagram

Support & build Brand DNA& brand engagement

Create additional retail value through online presence

Maximize check-out amount

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Digital Marketing Strategy canvass

• Situation analysis : where are we ?• Objectives : where do we want to go ?• Strategy : how to go there ?• Tactics : how to go precisely (incl budget)?• Actions : who does what and when ?• Control : how do we verify performance ?

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Situation : analysis of digital situationMany different KPI can be analyzed depending on the company and its strategy

• Sales efficiency : – Number of leads created (new accounts), Online sales per month, Retention and loyalty

• Marketing efficiency– Awareness, Preference,Recommendation

• Digital marketing efficiency– Number of visits, number of sessions, page views, unique visitors, time spent, % of

registration, % conversation rate, churn, click through rate….

• Resources and digital skills– Financial resources : budget– Technological Resources– Human resources (IT, Mkg)– Skills (community management, web development, content creation…)– Organisation / process

• Analysis of digital maturity of the organization

• Analysis of competition

• SWOT analysis

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Define strategic objectives

• Aligned with the company business objectives

• SMART objectives : Specific, measurable, attainable, realistic, Time

• 5S : Sell, Speak, Serve, Save, Sizzle

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SELL

• Products• Promotions• Services (free delivery)• Payment

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SPEAK• Increase engagement by

starting and encouraging conversation


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SERVE• Develop all services provided to

customers• Customer satisfaction goals to

assess how you good you are at customer service and then improve it further

• ASOS have invested in a choice of customer service channel


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SAVE

• Budget objectives• Show the value that is gained vs

use of traditional marketing


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SIZZLE• The amplifying effect of

digital• Use of all relevant digital to

make the story sizzzle• Building the brand online


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The digital Marketing Strategy

• Adapted to the value creation model

• Will translate in every step of the value creation chain :

- attract- engage- convert- retain

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Interested in this content ? Want to know more ?Please contact me !

[email protected]

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ATTRACTHow are you going to attract qualified buyers to your business?

• Specific to digital marketing : Marketing PULL

• The most important step : key to develop the whole strategy

• Several acquisition strategies should be put in place : – Analyze– Compare– Develop

• KPI to take into account to compare the different strategies– Volume of traffic generated– The cost for each new visitor– Qality of the traffic / transformation rate– ROI : value created vs cost

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HOW?

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• Buying Qualified Data Base• Competition on social networks• Content published on social networks• Search marketing• Online advertising (display)• Social network advertising• Partnerships with media or partners /

influencers (bloggers)

ATTRACT

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ATTRACT

Display

Social network content

Social network advertising

Partner emailing

Content to share

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ATTRACT : analyse & compare

Volume Cost Conversion Value ROI

Running a Competition

100.OOO adresses

100k€ x 0,30 = 30.000 €

1,5% buy 70€ on average

100k x 1,5% x 70€ = 105.000 €

(105-30)/30 = 250%

Buying a qualified database

5.000 adresses

5.000 x 2 € = 10.000 €

10% buy70€ on average

5000 x 10% x 70 € = 35.000 €

(35-10)/10 = 250%

Same ROIBUT different costs and different valueIf we buy a qualified database every month we get the same result as a competition every quarter

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ENGAGE

• Listen. Care. Make them Dream.• Build trust, desire, excitment• Gain a better understanding of your customer’s

needs and wants

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Engage : Case study Sezane

Instagram : 123 K + 168 KFacebook : 280 K

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Engage : Case study Balmain

Instagram : 3,9 MTwitter : 252 K

Facebook : 553 K

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DESIGN A COACH TOTE | DIGITAL CAMPAIGNObjective : engage with a young audience

3,200 CUSTOM TOTE DESIGNS • 6.5 MILLION ENGAGEMENTS

Engage : Case study Coach

Coach invited fans to design their own unique Coach tote and vote for their favorite design. The winning design was created into a special edition Coach Tote sold online and in select stores.

There are three reasons why people participate : I can do it – I can drag and click and create something quickly and easilyI’m a creator – it’s my goal in life to create a bag for Coach.I want to be a celebrity. 25% of young people believe they can be a celebrity.

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CONVERT

• The most important step but not always well mastered• Different KPIs to monitor depending on the business :

find the right KPI ! • For a media website : number of visits with more than

one page viewed• For an information site : visit length > 2 mn• For e-commerce : number of sales / number of visit• Service : number of subscriptions

« You’ve invested a great deal of time, effort and energy to attract and engage qualified buyers – remember to make it easy for them to buy your products when the time is right » !

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CONVERT

• Analyse the tunnel of conversion : the different steps for the visitor to perform the final action – Number of steps– Complexity

• The Optimization of the tunnel is key– Consistent speach along the way / consistent experience– Good UX and Design– In e-commerce average conversion rate is 2%

Laura Gelis - 2016

Laura Gelis - 2016

Retain : build loyalty

• Keep existing customers and create value on the long term

• Today building loyalty is key as the cost to keep a client is 5 to 6 x less expensive than recruiting a new one.

• Loyal customers are also often good ambassadors and source for new value creation (share content, advocates of the brand)

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Retain

Marketing digital for fashion part 1

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