20th September 2012

Looking for the digital consumerDavid Reed, editor, Journal of Direct, Data and Digital Marketing Practice

About DDDMP

✤ “Indispensable resource for senior marketing managers seeking awareness of new marketing concepts, strategies and applications from around the world.”

✤ Published quarterly, each issue usually comprises an editorial, 4-5 peer-reviewed papers, a best practice case study, a new technology briefing, a legal & regulatory update, 15 abstracts, and 3-4 book reviews.

✤ Personal subscription print and online for £124

✤ Member benefit if you join the IDM.

Issue 14.1

✤ “An empirical investigation of social network influence on consumer purchasing decision: The case of Facebook.”

✤ “From web analytics to digital marketing optimization: Increasing the commercial value of digital analytics.”

✤ “The digitally excluded consumer - Options for marketers.”

DDDMP 14.1 - The Case of Facebook

✤ An investigation into the extent to which social networks influence purchasing decisions through a quantitative analysis.

✤ Researches beyond usage into Facebook-mediated marketing communication.

✤ “Facebook promotes a consumer-to-consumer approach, exploited by consumers to share experiences and create a common knowledge of products and services...provides managers a direct channel for communicating with clients through a business-to-consumer approach.”

Hypotheses:

✤ Ease of use of FB influences role as support tool in decision-making.

✤ Ease of use has a direct influence on gathering information through this source.

✤ Usefulness of messages influences attitude towards using FB for information about purchases.

✤ Attitudes towards FB influence intention to use it as a support tool for purchasing decisions.

✤ Enjoyment of FB influences perceived usefulness.

✤ Enjoyment influences attitude towards role as support tool for purchasing decisions.

✤ Enjoyment of FB influences behaviour in using it for this purpose.

✤ Ease of use has a direct influence on enjoyment.

DDDMP 14.1 - The Case of Facebook

✤ Anonymous survey among students in Southern Italy, generating 187 responses.

✤ Proved all hypotheses (except number 1)

✤ “Users appreciate the presence of firms/products...and take into account recommendations and suggestions.”

✤ “Managers could improve the fun provided by pages by adding games, contest and applications.”

✤ “Marketers would consider the link between a high level of enjoyment...for positively affecting consumer purchasing decisions.”

DDDMP 14.1 - From Web Analytics to Digital Marketing Optimization

✤ Reviews opportunities to better apply web analytics to improve digital marketing performance.

✤ Defines an approach to improve the value contributed by web analytics.

✤ Describes techniques to set up a digital marketing optimization programme.

✤ “Adoption levels of [web analytics] are high, but usage of them remains surprisingly low.”

✤ “Majority not using fundamental web analytics approaches such as customer journey analysis and segmentation...despite the majority rating these as highly/quite valuable.”

DDDMP 14.1 - From Web Analytics to Digital Marketing Optimization

✤ Lack of resources and budget are significant barriers - for every $80 spent driving traffic, $1 spent converting it. (Source: Omniture)

✤ Companies with a structured approach to conversion 2x more likely to have seen large sales increases.

✤ “Success depends on reducing inefficiencies in digital marketing.”

✤ “Scope of web analytics should be broadened beyond its traditional focus on website optimization to other forms of digital media.”

✤ Need for a continuous improvement process and analysis methodology for making improvements - Six Sigma, DMAIC.

✤ Select the right KPIs.

DDDMP 14.1 - From Web Analytics to Digital Marketing Optimization

✤ Reach, Act, Convert, Engage framework.

✤ Covers all main measures across the customer lifecyle at different levels of reporting.

✤ Ten tests of measurement design.

✤ “To increase adoption, web analytics needs to be repositioned as an improvement process.”

DDDMP 14.1 - The Digitally Excluded Consumer - Options for Marketers

✤ One-fifth of consumer are not online - 8.7 million people

✤ Need to supplement digital marketing with analogue

✤ “Clients and their agencies have differing views about the speed of migration online.”

✤ Clients - 26% expect to increase offline marketing budgets v Agencies - 9% expect increase

✤ Clients - 26% expect to decrease offline marketing budgets v Agencies - 58% expect decrease

DDDMP 14.1 - The Digitally Excluded Consumer - Options for Marketers

✤ Age factor - 7.3 million digitally-excluded over 55.

✤ Absence of PC in workplace during their working life.

✤ Age-related digital exclusion will diminish.

✤ “Majority are not digitally excluded, but digitally indifferent or even digitally disinterested.”

✤ “Most marketers are dependent on digital communications...it must be extremely difficult to understand large numbers of consumers who, for rational reasons, have decided to remain offline.”

DDDMP 14.1 - The Digitally Excluded Consumer - Options for Marketers✤ “The future profile of those

not connected to the Internet is likely to be based solely on the person’s socio-economic status.”

✤ “The new generation of digitally excluded will be those without mobile internet access.”

✤ Digital exclusion will become another deprivation factor.

✤ Four approaches for marketers:

1.Ignore and do nothing

2.Become part of the solution

3.Target a specific segment

4.Make all digital touchpoints accessible

fast.MAP Marketing GAP

fast.MAP Marketing GAP

What do you think is the main purpose of the Data Protection Act?

fast.MAP Marketing GAP

When a company asks for your contact details, describe your attitude

fast.MAP Marketing GAP

When an organisations asks for permission to use your data,are you given enough choice about how it will be used?

fast.MAP Marketing GAP

If you are on Facebook, which of these statements do you agree with?

Truste cookie audit

Website compliance with ePrivacy Directive (231 sites)

Conclusions

✤ Marketing risks being out of synch with the consumer

✤ The consumer does not look (or behave) like you!

✤ If your agency tells you something is right, ask for the evidence