4.10 customer management(2)
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MARK3014W172024SOSTACPlanningfinal1.pptxMARK3014 Customer Management, 2023/2024
Week 17
SOSTAC PLANNING MODEL
Objectives for today
SOSTAC planning model …
Understand the SOSTAC planning model
How to set up SMART objectives
Linking objectives to strategies
Monitoring performance
… applying to CW2
Planning for Coursework Two
Deadline: Wednesday 1st May 2024, at 12pm (NOON) UK time, via Turnitin
Word Count: 1,500 words (+/- 10%) (1,350-1,650 words)
Weighting: 50%
Information in TABLES needs to be in bullet points, two-three words AND NOT in SENTENCES or PARAGRAPHS.
Pause: recap your CW1 analysis
In CW1:
Focused on current situation
Chosen organization and one key competitor
Acquisition, retention, development
Compare and contrast
Considered with a theoretical model
For CW2:
Building on your analysis in CW1, same organisation
Make recommendations to your company on how it can improve its customer management performance and profitability
Take 5 mins to gather your thoughts on CW1
key findings and opportunities
Consider your ‘draft’ recommendations
PR Smith’s SOSTAC Model
Source: PR Smith (2021)
SOSTAC® Planning Official Source - PR Smith
A simple but highly effective model for planning DEVELOPED BY PR Smith
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PR Smith’s SOSTAC Model
Source: PR Smith (2021)
Where are we now ?
Where do we want to be ?
How do we get there ?
How exactly do we get there ?
Who will do what and when ?
How will we monitor ?
SOSTAC® Planning Official Source - PR Smith
A simple but highly effective model for planning DEVELOPED BY PR Smith
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SOSTAC Planning in 3 minutes by PR Smith
https://youtu.be/ZdTw3BjJMIc
How do I integrate the SOSTAC® and RACE frameworks? - Dave Chaffey Digital Marketing
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Source: PR Smith (2021)
Situation analysis means ‘where are we now’
- The focus of your CW1
- Includes a review of customers, competitors and channel intermediaries
- And external forces that may be influencing (i.e. economic or technological)
- Understanding what is driving current performance
- Looking for ‘clues’
Objectives ‘where do we want to be’
- A vision for customer lifecycle and associated customer touchpoints
- Clear numerical objectives
- Could include the drivers of lifecycle improvements (i.e. satisfaction)
Strategy ‘how might we get there’
- Which customer segments, what is our proposition/s
- Which element/s of the customer lifecycle
- How might we engage to target, using elements of the marketing mix that
could influence the customer lifecycle
Source: Chaffey (2022)
https://www.davechaffey.com/digital-marketing-glossary/sostac-marketing-plan-model/
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Source: Chaffey, 2022
Tactics means ‘how exactly will be get there’
- The individual focus areas that build up to the strategy
- Reaching new, engaging existing, creating points of difference
- Channels, engagements, responses
- Overarching experience and thus brand perception
- The detailed marketing mix
Actions means ‘who does what and when’
- To deliver the tactics which build up to the strategy
- Responsibilities, structures, internal and external resources
- Skills to deliver
Control means ‘how do we measure performance’
- Measurement
- Review, responsibilities, processes
Source: PR Smith (2021)
Source: Chaffey (2022)
https://www.davechaffey.com/digital-marketing-glossary/sostac-marketing-plan-model/
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Develop SMART objectives
What to achieve?
By how much?
Until when?
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Realistic – which one of the below draft objectives does NOT feel realistic ?
Acquire 1000 new customers by end 2025 through new social media paid advertising, within a total customer acquisition volume of 10,000
Improve customer retention rate from 85% (current) to 100% by end 2026
Engage with (reach) 5% of existing customers through app push notifications to build awareness of app services
Realistic, if a brand has a relatively high % of it’s customer base who are active on social media, then 10% of it’s overall customer acquisition number (1000/10,000) feels realistic/believable
Unrealistic as this would mean 100% of existing customers were retained
Realistic, assuming that a high % of existing customers are app active
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Section 1 (750 words; 50 marks)
THREE Smart Objectives
THREE Digital Strategies
Section 2 (550 words; 35 marks)
THREE Marketing Metrics
Section 3 (200 words; 10 marks)
Conclusion
Report Presentation (5 marks)
Recap: CW2 marking scheme
` `1 111
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CW2 section 1 (750 words; 50 marks) Based on your research and analysis in Coursework 1, you will identify THREE SMART objectives and recommend THREE digital strategies that will help your company build and develop profitable long-term relationships with their target customers.
PR Smith’s SOSTAC Model
Source: PR Smith (2021)
Where are we now ?
Where do we want to be ?
How do we get there ?
SOSTAC® Planning Official Source - PR Smith
A simple but highly effective model for planning DEVELOPED BY PR Smith
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In order to be able to propose meaningful and outstanding strategies, you should research your company, its competitors and industry.
OBJECTIVE & STRATEGY LINK
Where do we want to be?
How do we get there?
GOOD Objectives for CW2
Customer acquisition target
Customer retention target
Customer development target
Customer satisfaction target
Customer experience target
Customer segmentation target
Site visit, duration targets
Number of engaged customers
POOR Objectives for CW2
Broad sales related recommendations
Revenue, profitability related recommendations
Business expansion related recommendations
Product expansion, development related recommendations
Examples of SMART Objectives and Digital Strategies
What to achieve and until when?
How to achieve it?
What to achieve and until when?
How to achieve it?
Objective 1. Engagement: Achieve 3% of existing customers to interact socially with the brand in the next two years.
Understand how existing customers interact with the brand in general and on its social media platforms.
Objective 2. Acquisition: Increase brand visibility by 5% from January 2024 through to December 2024.
Increase the brand presence within identified online channels that target a specific consumer segment. What is the most cost-effective route to market? Are you reaching your key customer segments? Where can the brand name get increased exposure? Research your competitors and understand what online marketing tools they are using.
Objective 3. Development: Increase email frequency from one email per quarter to one email per month from January 2023 through to September 2023.
How is the company currently communicating with its existing customers? Which of your competitors have implemented email marketing with its customers?
Build on your CW1 company and market analysis
This is an example.
Highlighted text is about what to consider when formulating a strategy for each objective set.
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Digital Marketing Channels That Can Be Used According To Business Requirements
Search Engine Optimization (SEO)
Content Marketing
Social Media Marketing
Paid Advertising
Email Marketing
Video Marketing
….
Customer satisfaction
Customer commitment and loyalty
Customer value
Customer segmentation
Word-of-mouth & e-WOM behaviour
Customer experience
Customer engagement
Social media customer services
Digital CRM; Social CRM
Marketing automation
Some of the key marketing constructs
Lectures week 18 & 19
Lectures week 23 & 24
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CW2 section 2 (550 words; 35 marks) Then you will propose ONE marketing metric for each objective to monitor and measure the success of your objectives (a total of THREE marketing metrics)
What is a ‘metric’ ?
‘Measuring system that quantifies a trend,
dynamic or characteristic’ *
‘A number that measures something ; or multiple numbers that come together in one metrics ‘equation’ **
* Farris, Bendle, Pfeifer, Reibstein (2010)
* * Hatcher (2015)
Oh no I here you say, not numbers !!
Why are you here today at 9am
Your car dashboard … how fast going, how much petrol left …
My Garmin watch miles, speed per mile …. Etc
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MONITORING PERFORMANCE
Source: PR Smith (2021)
How will we monitor ?
Organisations use a number of metrics to evaluate the success of their customer experience/service.
Most commonly used metrics are:
Net Promoter Score (NPS)
Customer Acquisition Cost (CAC)
Customer Lifetime Value (CLV)
CAC-to-CLV
Customer Satisfaction Score (CSAT)
Customer Effort Score (CES)
Customer Retention Rate
Revenue Churn
First Contact Resolution
Average Ticket Time
Lecture week 20
https://offers.hubspot.com/customer-service-metrics
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CW2 section 2 (550 words; 35 marks) Then you will propose ONE marketing metric for each objective to monitor and measure the success of your objectives (a total of THREE marketing metrics)
You should explain why that particular metric you have selected is relevant. You should also consider any drawbacks that your organisation may face in using those metrics in measuring their performance.
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