S E S S I O N T H R E E

C O U R S E I N T R O D U C T I O N

A P R I L 3 R D , 2 0 1 4

6 P M - 8 P M

CAM DIPLOMA IN DIGITAL MARKETING

Digital Marketing Essentials

CAM Diploma Digital Marketing

Digital Marketing Planning

Developing a Promotional Plan

Learning Outcomes

Develop an action plan and, if appropriate, set this in the context of an integrated multi-channel plan.

Establish a campaign budget and ensure the recommended activities remain within budget.

Identify suitable online promotional tools to produce a measurable digital communications plan with digital suppliers.

Conduct online campaign testing.

Generic Customer Strategies

Acquisition

Retention

Development

Buying process leading

to first purchase

Re-purchase

Satisfaction

Loyalty Cross-selling – new and

different products

Up-selling – same products

but of higher value

Most companies focus on

acquisition at the expense of

retention and development, but

existing customers are easier

and cheaper to sell to

Number of Products

Revenue/

sales

one multiple

minimal

high

value

1

First time

customers

2

Repeat

customers

3

Clients

4

Partners

Recency Frequency Value (RFM)

Segmentation

Profitability

in last year

Clients

First-

timers

Repeat

customers Partners

RFM Segmentation

Current profit

Potential

For

Future

Profit

Low High

High

Reduce servicing

costs

1. Cross-sell

2. up-sell

3. retention

1. Retention

2. Cross-sell

3. Up-sell

Implement retention

plans

Existing Customer Development Strategies

Promotion Scheme Loyalty Programme Time Periodic, short-lived Continuous & evolving Rewards Extrinsic, hard Intrinsic, firm, soft Branding Loose Woven through Communication Infrequent, transactional Appropriate, relational Aim Short-term sales Profitable relationships Posture Defensive, militaristic Optimistic, sharing Customer What’s in it for me? It’s for me attitude Employee role Give the rewards, know the rules Total involvement,

enjoyment System status Point-of-sale driven Holistic, organisation driven

Loyalty Versus Promotion Schemes

Non Buyer

Prospect Trialist

New Contact Top Customer

Heavy User

Dormant

Lapsing User

Nursery

Programme

First Touch

Marketing

Attitude

Change

Top Customer

Programme

High Touch

Marketing

Invest in

Future Positive Marketing

ROI

Negative ROI Source; adapted from Adrian Rowe, RedC Marketing, Manchester

Marketing Activity & Relationships

• Moved away/died 4%

• Relationship with another company 5%

• Competitor activity, i.e. price 10%

• Product dissatisfaction 14%

• Unsatisfactory handling of complaints 14%

• Lack of interest from the supplier 65%

Source; Cram (1994) from research by Rapp & Collins

Why do Companies lose Customers?

Opportunities;

Seasonal Campaigns

Life cycle – Touch points

Regular communications

Event-driven

Renewals

Media;

Direct selling

Telephone marketing

Direct mailing

E-marketing (email,

e-CRM, viral)

Mobile marketing

(text, 3G, video,)

Sequencing;

Timing

Follow-ups

Offers & Incentives

Fulfilment

Objectives

Communication

Plan

Developing a Contact Strategy

Customer

Tax Year End

Summer

Spring Easter

Christmas Valentine’s Day

Mother’s Day

Father’s Day

January sales

Seasonal Campaign Opportunities

Promotional Mix

Offer Mix

Company Products

Services

Prices

Sales

Promotion

Advertising

Salesforce

Direct

Marketing

Media

Channels

Target

Customers

Public

Relations

Communications Mix Strategy

CONTEXT ANALYSIS

COMMUNICATION OBJECTIVES

COMMUNICATION STRATEGY

INTEGRATED COMMUNICATION PLAN

• Budgets

• Scheduling

• Implementation

Market

Research

• Key Issues

• Target Audience

• Creative and Media Strategy

• Push, Pull and Profile Strategy

Chris Fill, 2002

The Communications Plan

Context Analysis Promotional

Objectives

Marketing Goals

Marketing Communications

Goals

Strategy

Pull

Profile Push

Control & Evaluation

Promotional methods

and mix Scheduling

Resources

Market

Research

Agencies

Marketing Communications Planning Framework

Jan Feb Mar Apr May Jun Jul Aug £

Banner Advertising

Affiliate Marketing

Email Campaigns

Website refresh

Sponsorship

Market research

Agency Strategic Review

Exhibitions

Launch of .mobi site

.mobi communications

Gantt Chart Example

How can we:

Get more customers like those we already have?

Encourage more prospects & customers to respond at all or more frequently

or at particular time?

Reduce the costs of customer acquisition and retention?

Communicate more efficiently?

Sell more of what we are producing?

Questions Answered By Testing

• Targeting, both in terms of identifying your customers and prospects

• Product or service promoted

• Media used to carry the offer

• Price, including terms

• Incentive

• Timing of the campaign

• Content or design of the advert

• Creative theme

But only one at a time !!

Big Things Worth Testing

High price vs average price

Animated banner vs static

Promotional offer vs no promotional offer

Creative A vs creative B

Copy splits copy A vs copy B

Vertical vs horizontal

html vs plain text

Address on letter vs address on response device

When email lands, e.g. morning vs afternoon

Registration vs non-registration

Examples of Tests

• Do something that you believe will work ‘big’ and call it Test A

• Undertake Test A

• Measure the results and call them the ‘benchmark’. This

campaign then becomes the Banker, Control or Champion.

• Change something else that you believe will work ‘big’ and call it

test B – this is the Test or Challenger.

• Test the Challenger against the Champion

• Compare the results

Champions vs Challengers

Select variables which may generate different response rates, for example:

All

Male-oriented

keywords

Female-oriented

keywords

This represents 8

different cells, each

with potentially

different results.

Adwords

creative 1

Adwords

creative 1

Adwords

creative 2

Adwords

creative 2

Landing Page A

Landing Page B

Landing Page A

Landing Page B

Landing Page A

Landing Page B

Landing Page A

Landing Page B

1

2

3

4

5

6

7

8

Constructing a Test – Step 1

• Testing is a continuing strategy not a one-off tactical project

• Test the big things

• Repeat each test and prove the results before roll-out

• Always use a control

• Test only one thing at a time

• Examine the effects of increasing costs (more appealing creative) as

well driving them down

• Samples should be big enough to give statistically reliable results

• Tests must be properly coded, recorded and measured. And the

same details must be added to the customer record, and ideally to

the prospect record too

Ensuring Successful Testing

Test Your Understanding

If you work in an organisation with a predominantly B2C focus, you should tackle this question.

Label Planet produce A4 sheets of adhesive labels in varying sizes in quantities from 25 sheets upwards, so are not targeting a consumer-based audience. Devise a draft communications plan for them, considering both acquisition, retention and development activities.

If you work in an organisation with a predominantly B2B focus, you should tackle this question.

Canine Concepts produce toys and accessories for pets. Devise a draft communications plan for them, considering both acquisition, retention and development activities.

Post your answer to the Discussion Board.

CLASS DISCUSSION

Summary

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