4.10 customer management(2)
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Week25_DigitalMarketingCW2Workshop1.pptxMARK3014 Customer Management
Week 25
Digital Marketing & CW2 Workshop 2
Presented by Dr Shelton Giwa
Agenda
Revisit Digital Marketing and link to CW2
CW2 Workshop
Which digital channels does your chosen company use?
Mentimeter Activity 3 minutes
Can you take
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Projected online spend for goods and services globally in real terms, doubling the market from five years ago
USD10.2 tn
Number of internet users
62%
Population using the internet in 2023, doubling the rate from a decade ago
4.9 bn
A snapshot of the global digital consumer in 2023
The Digital Consumer in 2023
Sources: Passport: Business Dynamics (top and middle); Passport: Digital Consumer (bottom)
© Euromonitor International
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The 5th P of Marketing?
Participation?
Social media is dependent on engagement from its users
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Product
Place
Promotion
Price
Source: Euromonitor International Voice of the Consumer: Lifestyles Survey, fielded January to February 2022
Co-creation can take place throughout the entire customer journey, including post-sales. Brands can gain customer loyalty and drive foot traffic by providing spaces that enable customers’ needs, creativity and personalised experiences.
The end goal of co-creating can be the product itself as well as the experience. In this case the retailer becomes a trusted partner in the experience offering the space and knowledge to elaborate customer-driven ideas for the consumer's personal use.
IKEA Shanghai launched a store that enhances the on-site customer experience by forming “community hubs”. This new layout includes a “maker hub” where customers, employees and experts can share skills, work on customised projects and repair of furniture.
Ingka.com
Case study: IKEA builds on the retail experience with interactive social co-creations
Trend No. 2: crowdsourced creation
Consequence
Context
Characteristic
Image source:
© Euromonitor International
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Source: Starbucks
Growth in Starbucks’ app-enabled US sales over last five years (as of 2022 Q2)
400%
Share of Starbucks’ US customers who customised their drink orders in 2022
60+%
Customisation options available in the Starbucks mobile app
170,000+
Starbucks states that its customisation initiative has been “the single biggest driver” of increased spend per customer in its history. Quick-service operators across North America and Europe are taking note, with many enhancing the level of customisation offered through their own apps.
In addition to allowing for an unprecedented level of customisation, the Starbucks app utilises AI to provide drink recommendations tailored to individuals’ specific tastes based on their ordering history - nudging loyal customers to try new offerings and add-ons.
With the re-launch of its mobile app in 2016, US-based coffee chain Starbucks began offering customers tens of thousands of different customisation options on mobile orders. In April 2022, Starbucks announced that it plans to add even more customisation options to it app.
Case study: Starbucks achieves wild success by embracing customisation with its mobile app
Trend No. 3: E-customisation
Consequence
Context
Characteristic
© Euromonitor International
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Online companies are borrowing tactics from the gaming industry’s playbook to drive growth. Gamifying the commerce experience, or mimicking techniques from the gaming world to encourage a desirable behaviour, taps into the power of rewards and competition to inspire app activity. From a commerce perspective, this could range from offering a discount code for participating in a game to completing a challenge for access to an exclusive sale or product collection.
While this trend first unfolded in China over five years ago, companies elsewhere are now gamifying the online experience to boost engagement, improve the user experience, enhance brand loyalty and ultimately drive sales. They are exploring these strategies because low conversion rates plague e-commerce with shoppers abandoning purchases due to shipping, payment or tech hurdles. There is also value in the first-party data stream as privacy regulations hinder efforts.
Embracing new strategies such as gamification will become more important as e-commerce evolves from a transactional channel to one where consumers increasingly want to engage in the activity of shopping. Evolving the perception of this digital channel will hinge on making the online experience more engaging and ultimately somewhat reminiscent of the in-person shopping experience. This feat will become easier to execute as technologies continue to advance.
E-commerce companies add gaming features to boost conversion rates, collect data
Trend No. 4: game changers
© Euromonitor International
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Digital marketing
According to the Digital Marketing Institute, (cited in core text) digital marketing is:
“The use of digital channels to promote or market products and services to consumers and businesses”
Dibb et al (2016) define digital marketing as:
The use of technology-led channels of communication and selling to manage customer interaction and provide customer experience in a digitally-connected environment.
“Management and execution of marketing using digital electronic technologies and channels (e.g. web, email, digital television, wireless media) and digital data about user/customer characteristics and behaviour”
(Baines et al., 2017:313)
How do Marketers use The 4 Zones?
Let’s flip the zones model for a minute then and think about different kinds of activities brand and organisations take part in each of the zones and the kinds of objectives that underpin these activities.
Throughout this module we are going to be focussed on the use of social media to earn engagement with consumers (as opposed to social media advertising – PAID social) however it should be noted that PAID social media is becoming an important component of most if not all effective campaigns. It is particularly important in the commerce zone but that organisations also pay to promote posts designed to support community, entertainment and publishing objectives too
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Social Community
Building brand / consumer relationships
Promoting a presence
Marketing research
Social Commerce
Buying and selling
Servicing
Managing
Converting sales
Social Entertainment
Enabling play – gamification
Branded entertainment
Social Publishing
Blogging
Sharing branded content
Advertising / PR
Re-sharing (curating content)
Advantages of digital marketing
Provides additional options for marketing communications
Web searches and internet viewing have become routine behaviour.
Gives marketers more direct and diverse channel possibilities
Established companies are developing multi-channel strategies
Many new entrants choose on-line trading only
Enables marketers to capture greater insights into consumers
Immediacy
Two-way interaction
Extensive profiling of customer histories and behaviours
Explodes the ways in which marketers build relationships
Far more direct and frequent interactions
Bespoke tailoring of information, deals and propositions
Provides access to customers 24/7 as never before - wherever they are, and whenever they want to connect.
How do brands use digital media (and social media in particular?
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Brand Awareness: To attract new customers
Social media is used at the top of the sales funnel as a cost-effective way of introducing people to a new brand through interesting/ engaging content
Drives new customers to Owned platforms like websites or social media to get more information
It can also be used to keep brands front of mind during key purchasing periods such as Christmas, Back To School, Valentine’s Day etc
It can help maintain long term customer brand loyalty; turn people into advocates, get reviews etc
The impact of digital
