Last updated May 2012. The latest practical tools can be downloaded from http://www.smartInsights.com/digital-marketing-strategy. This is a one day masterclass I used to give on The IDM Diploma in Digital Marketing Strategy Session. It gives a structure and tools for developing a plan for online customer acquisition, conversion and development.
I developed the original Internet Marketing programme for the IDM in 2005 and gave this talk until 2012. All the latest tools are available on Smart Insights available in a Digital Strategy Toolkit and there is a popular free Internet marketing plan download for members too.
1. IDM Diploma in
Digital Marketing
Dr Dave Chaffey
www.smartinsights.com/presentations
Burberry case study
2. Purpose of today’s strategy
sessions
• Give you:
– A process for creating a plan
– 2 key frameworks for planning
– Questions to ask to define plan
– Tools / URLs for analysis / best practice
• Help you:
– Assignments
– Exams
– Work – practical tips to apply back in office
• Please…
– Ask questions
– Share your experiences
• Introductions…
3. Introductions – About Dave Chaffey
• Books Online advice and consulting
www.smartinsights.com
Qualifications and training
www.theidm.com
Smart Insights and IDM partners:
50% Discount to support students
Insights Director
www.clickthrough-marketing.com
4. About you: Introductions
Please share…
► 1. Your role – digital specialist and/or marketing
strategist?
For each table:
► 2. What happens if we don’t have a strategy
5. Structure: 5 practical learning goals
for today’s workshop
1. Plan: Create or refine a strategy to improve results from digital
marketing.
2. Reach: Review company use of digital media to reach target
audiences.
3. Act: Assess content marketing techniques to encourage
interactions on soci media and other platforms.
4. Convert: Define approaches to increase conversion to offline
leads and sales.
5. Engage: Develop an integrated communications strategy for you
website, social and email communications.
9. Q. Have we reviewed current online marketing
effectiveness in digital-specific SWOT?
10. Example digital
strategies
When reviewing SWOT,
group by
Plan – governance and brand
management issues
Reach communications
(e.g. role of Google and
other intermediaries, mix)
Act i.e. content marketing and
lead generation
Conversion (experience)
Proposition
Engage - customer
development including
contact strategies, targeting
http://bit.ly/smartswot
11. Q. Have we benchmarked our
digital marketing capabilities?
http://bit.ly/smarthealthcheck
12. Q. How will digital support growth
using digital to align or impact?
13. Situation analysis:
Q. Is our plan in line with marketplace dynamics?
Organisation
E-marketing
Efficiency
Organisation E-marketing
Marketplace Effectiveness
14. DEEPLIST for macro-environment
Which are most important for digital?
• Demographic: percentage of each population online can be analysed in
terms of age, household size and type, income, gender, ethnicity,
employment status, work patterns mobility etc.
• Economics: taxation controls, monetary and competition policies, fiscal
policies.
• Environment: country specific attitudes towards physical environmental
issues, for example energy consumption, spatial distribution of populations.
• Political: power and influence of Government agencies and regulatory
bodies, public opinion, pressure groups, Internet governance.
• Legal: trading laws and restrictions, advertising standards and controls,
taxation laws.
• Information: Availability of consumer / company data and information,
access to this type of data and how it is used, information control.
• Social: needs and wants of target communities, extent of social exclusion,
individual levels of trust and perceptions of security, social discrimination.
• Technology: Access to technology, innovation, adoption rates, applications
of technology.
Tip: 1-2 sides max in assignment,
can include DST under customer
15. Tip. Create an online marketplace map to
understand your customer influencers
Key
Point
Key
Point
16. Q. Have we defined main targeting approaches? http://bit.ly/smarttargeting
Targeting approaches Method
1. Classic profile-based Target media or messaging based on
demographic segmentation characteristics
2. Search behaviour Grouped by volume and value
3. Content consumption Using ad networks including GDN
4. SN interest-based targeting For example, Facebook, LinkedIn interests
5. Web personas Combine other characteristics and behaviours
6. Customer lifecycle Target messages according to length of time
using online services
7. Customer value Review current and future potential
8. Campaign message response Use “sense and respond” behavioural targeting
behaviour based on RFM
9. Buying motivations and Evaluation method and sensitivity to pricing
behaviours against features, benefits, brand value
10. Channel preference Communicate with customer in their preferred
media (and according to value)
17. Tip – create a layered segmentation
- an example from eBay
19. Forrester Research on “site design personas”
• Ethnographic researchers averaged
– 21 i/views per project for 4 personas,
$47K
– $10K to 100 i/views for 8 personas,
$500K
• Examples:
– Ford uses 3 buyer personas at Ford.com
• Primary persona ‘Marie’ – just beginning car
shopping process, hasn’t settled on brand,
doesn’t know about cars, needs Help!
– Staples.com has 7 for shoppers
– Microsoft had 7 for Windows XP
• Segment on key
characteristics/behaviours
– “Seeks high quality”, “Seeks low cost”
– “Starting evaluation”, “Final decision”
– Occasional visitor, frequent visitor
http://bit.ly/smartpersonas
23. Activity - always start with the customer!
• What types of key information do we need to
research about our online customer? Please share
sources, research you have completed?
–
–
–
–
–
–
–
See http://bit.ly/smartkeywords
24. Q. Do we have the right
improvement process?
http://www.smartinsights.com/analytics-conversion-optimisation-alerts/dell-international-web-analytics-case-study/
26. Activity - Selecting the right digital channels goals
and tracking metrics – “the critical few”
Please suggest relevant objectives and measures of digital marketing
performance for i-to-i in these areas:
a. Reach: Attract visits to your sites and presence,
reach audience on other sites
a. Act: Engage with site or presence, convert to leads
c. Convert: Convert to sale
d. Engage: Developing long-term customer relationships
27. Measure Reach Encourage Convert Engage customers
Audience Action incl lead To sale to retain and grow
generation
Tracking Unique visitors Online opportunity Online sales Email list quality
metrics New visitors (lead) volume volume Email
Visits Offline opportunity Offline sales engagement
Conversation (lead) volume volume quality
volume generated from generated from Transactions
online online
Performance Share of audience Page engagement Conversion rate Active customers
drivers Share of search rate (Bounce rate, to sale % (site and email
(diagnostics) Brand/direct visits duration) Channel active)
Lead conversion rate conversion rates Active social
by engagement tool Category followers
conversion rates Repeat
conversion rate
Customer- Cost per click and Cost per lead Average order Lifetime value
centric KPIs cost per sale Customer satisfaction value Customer loyalty
Brand awareness Cost per sale index
Conversation Customer Customer
polarity satisfaction advocacy
(sentiment) Products per
customer
Business Audience share Goal value per visit Revenue per visit Retained sales
value KPIs (owned media) or Online lead Online-originated growth and
Share of voice contribution contribution to volume
(earned media) (n,£, % of total) sales, revenue Revenue per
and product channel and
category
28. Key
Q. Do we have clear online positioning? Point
• Core brand proposition = Marketing Mix:
– Who you are?
– What you do?
– Where you do it?
– What makes you different?
• OVP - Online Value Proposition
– What can your provide to help/inform/entertain me online?
– Reinforces core brand proposition and credibility, but
messaging shows…
– Different OVPs for different markets and audiences
– Value that a site visitor get from your online brand or
campaign that…
• They can’t get from you offline?
• They can’t get from competitors?
– Develop content strategy to develop OVPs
– Communicate message forcefully: online and offline
29. What is your brand personality?
• Personality is the unique, authentic, and talkable soul of your
brand that people can get passionate about.
• Personality is not just about what you stand for, but how you
choose to communicate it. It is also the way to reconnect your
customers, partners, employees, and influencers to the soul of
your brand in the new social media era.
Source:
36. Key
Integration = Point
Supporting channel-switching behaviour
How well do you support channel switching? Tracked call? Live Chat? Callback?
37. PRACE Summary - Plan
• Digital marketing strategy is a channel strategy
– Informed by insight on customer channel behaviour and
marketplace activity = intermediaries, competitors
– Objectives for future online and offline contribution %
should drive our strategy
– Channel strategy thrives on differentials
– BUT, need to manage channel integration
• Alignment - digital marketing strategy defines how we :
• Hit our channel leads & sales targets
– Improve efficiency of Acquisition, Conversion, Retention
• Prioritise audiences targeted through channel
• Communicate benefits of using digital channels
• Deliver relevant experiences through a
content or engagement strategy
41. Activity – evaluating the value of
digital media channels
Your ideas on good practices to assess, to prove
the effectiveness of digital marketing channels?
•
•
•
•
•
42. How should we determine investment
in digital channels?
• 1. Setup marketing source codes for Google Analytics (to minimise direct traffic)
• 2. Assess response rates = CTR Conversion to lead Conversion to sale
• 3. Assess cost effectiveness = CPC CPA ROI LTV
• 4. Go beyond last-click to weighted attribution and multichannel assists in Google
Analytics
• 5. Branding effects = Awareness, Interest, Desire, Action (on or offline)
• 6. Media multiplier / halo effect
• 7. Incremental reach = Availability of impressions in different channels
e.g. Maxing out on searches, targeted inventory, Increasing frequency
• 8. Risk diversification – avoid all eggs in one basket?
• 9. Opportunities to test and learn
• 10. Hold out testing (part audience isn’t exposed to campaigns)
43. Latest UK ad spend figures (IAB/PwC)
Online 25% of total
http://www.smartinsights.com/digital-marketing-strategy-
alerts/uk-online-ad-spend-latest-statistics-released/
44. How good is your online campaign reporting
in attributes leads and sales?
• Q1. Are you using last click tracking only?
• Q2. Do you understand multi-touch customer behaviour
on path to purchase?
Google Analytics “Multichannel Funnels” can help here
http://www.smartinsights.com/blog/web-analytics/media-conversion-attribution
45. Use Google Analytics MCF
to understand true value
Measuring assists in Google Analytics
Google’s new social reports
4
5
46. Use Google Analytics
to understand true value
Measuring assists in Google Analytics 4
Google’s new social analytics 6
47. Creating funnel budget models for
online marketing
See http://www.smartinsights.com/digital-marketing-downloads
48. “Average” response/ CTR rates,
depends on CRITICAL factors
• Display ads:
– 0.05 to 0.1%
• Facebook/LI ads:
– 0.01 to 0.05%
• Paid search:
– 0.5% to 2%
• Email (ad in Enews)
– 0.1 to 1%
• Email (House list)
– 1 to 10%
http://www.nellymoser.com/action-codes/scan-response-rates
49. SEM Strategy: The two types of Search
Paid listings - Adwords
Pay Per Click (PPC)
<title> </title> tags
Blended or
universal listings -
<meta name=“description = > tags
Or Snippets from page
Natural or organic listings -
Search engine optimisation (SEO)
50. Is ethical SEO “best practice”?
• Dark Inky Black Hat SEO: So evil he’s a typosquatter installing spyware. Plain illegal, too.
• Charcoal Hat SEO: Optimizes really unrelated pages for all kinds of queries, but within the bounds of
legality.
• Dark Gray Hat SEO: This SEO is e.g. a splogger stealing content from other sites. (What, that’s better
than charcoal?)
• Slate Gray Hat SEO: An SEO creating link farms and such.
• Gray Hat SEO: An SEO who actually reads the search engine’s webmaster guidelines, but then tries as
much “evil” as she can get away with.
• Light Gray Hat SEO: This SEO creates original content (lots of it), but the content is still only aimed at
search engines.
• Off-White Hat SEO: This guy not only ensures the site is indexable – he’ll also make sure to get lots of
backlinks from friends.
• White Hat SEO: This person puts up the content that people are actually searching for, and prepares the
site to make it very accessible. White Hat SEOs only optimize those of their pages they deem worthy to
be ranking top in search engines.
• Luminescent Pearly White Hat SEO: Not only does this SEO do everything the White Hat SEO does, the
LPW Hat SEO also makes sure pages will not show up for irrelevant queries.
52. How good is your
key phrase-level reporting?
•Should show:
• Potential demand from key phrase estimators
• Your actual performance
(position, clicks, conversion, sales, value):
– Paid – absolute and relative
– Natural – absolute and relative
Use “Google Keyword tool” to identify categories/volume of searches:
Smart Insights Gap analysis spreadsheet
53. Which SEO ranking factors should we focus on?
• On page optimisation:
• <title> tag = 4.9/5
• Keyword frequency and density = 3.7/5
• Keyword in headings = <h1> = 3.1, <h2> = 2.8
• Keyword in document name = 2.8
• Meta name description = 2/5
• Meta name keywords = 1/5
• Off-page optimisation:
• More backlinks (higher PageRank)= 4/5
• Link anchor text contains keyword = 4.4/5
• Page assessed as a hub = 3.5/5
• Page assessed as an authority = 3.5/5
• Link velocity (rate at which changes) = 3.5/5
http://www.seomoz.org/article/search-ranking-factors
http://www.davechaffey.com/blog/seo/update-to-seomoz-seo-ranking-factors
http://www.seomoz.org/blog/lda-and-googles-rankings-well-correlated
54. SEM Don’ts = problems to avoid
• SEO • Pay Per Click
1. Insufficient key phrase Importance of QS not
research and analysis recognised, i.e.
2. Index inclusion and coverage 1. Click through rate
poor 2. Ad text relevance (copy)
3. Content owners / editors 3. Triggering text relevance
don’t know rules of SEO
4. Landing page relevance and
4. Insufficient unique content speed
5. Internal linking strategies not
used
So, depends on brand,
6. External link-building tactics copywriting, account structure,
weak match types (broad, phrase,
negative) and testing.
55. Q. Do we have adequate
keyphrase targeting for SEM?
57. Q. Are we using display
advertising effectively?
• What CTR/IR are you generating
• Re-marketing?
– Google Display Network
– Other networks: Struq, Criteo
• Google Promoted ad and TrueView video
• New “social ad formats”?
• New buying options on ad exchanges:
– Real-time bidding (RTB)
– Demand-side platforms (DSPs)
58. Do you use display effectively?
http://www.comscore.com/Press_Events/Presentations_Whitepapers/2010/When_Money_Moves_to_Digital_Where_Should_It_Go
61. Social media marketing:
What are your challenges
and opportunities?
• 1 Managing reputation
• 2 Delivering customer service
• 3 Acquiring new customers
• 4 Increasing and sales existing
customers
• 5 Increasing engagement with your
brand by adding value to customers
• 6 Harnessing insights to develop
the brand
3-5 should run on a continuous AND
campaign basis
They require a content AND
communications strategy to define
resource and execution
62. Managing social “publishing”
with limited resource
1. Be relevant. Understand the content that will
appeal to different audiences.
2. Create an editorial calendar. Your social media
marketing will be more effective if you produce
content on a regular, consistent schedule.
3. Offer distribution choices, but keep a focus.
Offer choice to alert subscribers to content using
different types of channels since they will have
different preferences.
4. Syndicate through partners. Identify partner
sites and networks who may publish your
content, either in it’s original form or tailored for
their audiences.
5. Make communications two-way. Don’t just treat
the channels as an alert or update service.
Engage!
5 rules of SMO – Rohit Bhargava
http://www.smartinsights.com/social-media-marketing-alerts/what-is-social-media-optimisation-smo/
63. Get into a rhythm…
Download “Building your Business with Facebook Pages”
64. Use a “conversational calendar”
Download “Building your Business with Facebook Pages”
68. 8 techniques to encourage engagement on
Facebook
http://www.smartinsights.com/social-media-marketing/facebook-marketing/case-study-what-makes-these-some-of-the-most-engaged-facebook-pages-in-the-u
69. PRACE Summary Reach:
• Create a budget model to optimise investment in mix
– Review the relevance of attribution models
• Bought media:
– Increase reach and efficiency
• Earned media:
– Prioritise investments in social media
• Owned media: Optimising content marketing
• Integration:
– Using paid, owned, earned together
– Integrating SEO,PPC,PR,Social, Display
73. Content strategy example
68% CTR
>1,000 downloads
See http://www.smartinsights.com/blog/conversion-optimisation/online-content-marketing-strategy-2108/
74. Social channel OVP
• Recruiting to Twitter
Tip: Recruit to Twitter • via a prize draw
• promoted in Twitter
or FB via Email
79. E-newsletter OVP: success is all about
relevant content
• B2B • B2C
– Make my work easier – Make my life easier
– Help me develop – Help me learn / have fun
– Make me look good – Make me look good
– Give me a great deal – Give me a great deal
80. Do you send out emails based on the
following triggers?
81. Targeting by Lifecycle personalisation –
typically using event-triggered email
Purchased
Active
Purchased
Inactive
Tesco.com
Purchased once
•“Logged-on”
•“Cautionary”
Registered visitor
•“Developing”
Newly •“Established”
registered visitor •“Dedicated”
Return visitor
•“Logged-off”
First-time visitor
82. BT - It’s all about past actions… “Recognition of activity”
Recognition of Purchase
previous purchase Dispatched +7d
+14d +21d
83. Example of an optimised
email sequence
• 1. Generic branded follow-up email :
+10% conversion rate.
• 2. Personalised remarketing email
with a promotional code for a 5%
discount time limited to 72 hours:
+100% conversion rate.
• 3. Personalised remarketing email
with a promotional code for a 5%
discount time limited to 48 hours:
+200% conversion rate.
Source: http://www.smartinsights.com/email-marketing-ecrm-alerts/email-remarketing-an-example-of-how-to-test/
84. Engaging through OVPs in triggered emails
“Learn more through time”
“Watch, don’t ask”
87. PRACE summary: Act
• Content marketing is vital for cut-through in
many markets to encourage consumer
engagement and provide a fuel for outreach
• Triggered or behavioural email marketing is
effective to start relationship in many sectors
• Understand customer journeys to make your
messaging more effective
89. Activity: improving site effectiveness
• For each site please summarise
– 1. Audiences targeted
– 2. Key brand messages
– Product or service offer
– Online value proposition to encourage interaction and return?
– 3. Key outcomes or Analytics goals
• Group to feedback:
– Examples of techniques where 1-3 are effective
– Suggestions for improvements of 1-3
95. Persistent UX myth 3:
The home page is most important
to get right / optimise
In 2003, 39 percent of the page views for a large research website
were for the homepage. By 2009, it was down to 19 percent. In
one month in 2008, of the 70,000 page views a technology site
received, 22,000 were for the homepage. For the same month in
2010, of the 120,000 page views the site received, only 2,500
were for the homepage.
Another technology website had roughly 10 percent of page views
for the homepage in 2008, and by 2010 it was down to 5 percent.
One of the largest websites in the world had 25 percent of visitors
come to the homepage in 2005, but in 2010 only has 10 percent.
Gerry McGovern: The Decline of the homepage
96. Q. Do we have a structured approach to
improve site effectiveness
99. Leverage your analytics through granular analysis -
content drilldown shows relative
effectiveness of page types
100. How effective is your scent?
Example SCENT TRAILS
NEW CUSTOMER?
<CUSTOMER-CENTRIC SERVICE NAMES>
WHERE / HOW TO BUY?
WHY CHOOSE US?
101. Are you appealing to different buying
behaviours and motivations?
• The Methodical focuses on HOW-type questions:
– What are the details?
– What's the fine print?
– How does this work?
• The Humanistic focuses on WHO-type questions:
– How will your product or service make me feel?
– Who uses your products/service?
– Who are you? Tell me who is on your staff, and let me
see bios
• The Spontaneous focuses on WHY- and sometimes
WHEN-type questions:
– How can you get me to what I need quickly?
– Do you offer superior service?
– Can I customize your product or service?
• The Competitive focuses on WHAT-type questions:
– What are your competitive advantages?
– What makes you the superior choice?
– What makes you a credible company?
See http://www.grokdotcom.com/topics/copywritinghype2.htm
112. Key mobile marketing questions
Business Implementation
• Q. Can we use mobile to • Email
expand reach? – Should we support mobile?
• Q. Will mobile • Website:
increase sales?
– Do we need a mobile
• Q. How much will mobile version of our website?
increase customer
– Will mobile SEO help us?
engagement?
– Should we use Adwords
mobile
• Apps:
– Should we create (apps?)
113. PRACE Summary: Conversion
1. Use analytics to understand entry points,
sources into site – path analysis.
2. Define primary customer journeys and brand
messages (don’t forget the OVP!)
3. Use AB and MVT to optimise conversion
4. Use feedback tools to assess and improve
experience and what it adds to the brand
5. Don’t forget offline journeys
6. Invest in the right type of mobile
experience
114. ENGAGE
Customer
comms
Social
media
Mobile
marketing
118. Ask “Why” as well as “what” - use feedback tools Key
Point
iPerceptions http://www.4qsurvey.com
“Bad web site. Difficult to
find item as no search box
provided for short cut”
“I can't find any prices on
your website”
“Would like to see where I
can buy products from” .
Satisfaction : Intent tools
http://bit.ly/smartfeedback
120. Your email marketing capability?
Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission
121. Example of dynamic content insertion
Tip. Change order of offers
or features
according to segment
to increase relevance
Presented by Grant Baillie of Argos at 2008 Email marketing conference,, with permisssion
122. Disclosed
Demographics
Clinique
use different styles
and tones for girls
and boys segments
123. Combing tech + social segmentation
E.G.
Receive
MMS
E.G.
Receive
Bill insert
Source:
125. Targeting customers based on value
Customer Good customers Very good customers
quality
15 % 15 %
high
One time shoppers Average customers
with low potential
low
60 % 10 %
Customer
low high potential
Indicators for customer quality Indicators for customer potential
Order value per received catalogue Last date of purchase
Order value per season Number of active seasons
Gross margin in % of net sales Channel usage score
Returns in % of order value Number of different product categories
Source: Chris Poad, Otto, E-consultancy masterclass 2006
127. RF engagement scoring example
Scoring:
Recency
Low
1 = > 24months
2 = 19-24 months
3 = 13-18 months
4 = 7-12 months
5 = 0-6 months
High
Frequency
Low
1 = One purchases
2 = Two purchases
3 = Three
4 = Four
5 = Five
High
Note here boundaries are defined
to illustrate behaviour. There
are a different number in each group
Source: Interactive Marketing journal – January to March 04 – SilverMinds music catalogue
128. Build in social sharing
into contact strategies
Source: eCircle case study
129. PRACE Summary: Engage
• Understand the “satisfaction gap” for your
site and related customer service
• Review approaches to email marketing
targeting to deliver more relevant messages
130. All the best for your digital journey!
Questions & discussion welcome
• Blog
www.smartinsights.com/blog
uk.linkedin.com/in/davechaffey
• Feeds
www.feedburner.com/smartinsights
facebook.com/smartinsights
• E-newsletter
www.smartinsights.com
twitter.com/smartinsights
136. How effective is our media planning?
• Balancing Reach and Frequency:
– Reach: percentage of people within a given
universe who are exposed to a particular
advertisement at least once within a given
period of time.
– Frequency: Number of times a unique web
user is exposed to ad.
– Effective Reach: percentage of the universe
reached at a particular frequency.
Tip: Ask agency to plan/report for Reach and Effective reach.
Source: Atlas Institute Insights:
http://www.atlassolutions.com/institute_marketinginsights.aspx
140. Example of an optimised
email sequence
• 1. Generic branded follow-up email :
+10% conversion rate.
• 2. Personalised remarketing email with a
promotional code for a 5% discount time
limited to 72 hours:
+100% conversion rate.
• 3. Personalised remarketing email with a
promotional code for a 5% discount time
limited to 48 hours:
+200% conversion rate.
Source: http://www.smartinsights.com/email-marketing-ecrm-alerts/email-remarketing-an-example-of-how-to-test/
141. Social channel OVP
• Recruiting to Twitter
• via a prize draw
• promoted in Twitter
Tip: Recruit to Twitter
or FB via Email
142. Success factors
According to Jas Dhaliwal
Head of communities
1. Content
Own + Curated
2. Community
Listen to build better
products and offer
better service
3. Customer service
Dedicated support
channel – encourage to
log ticket
4. Collaboration
Encourage community
to help others
View case study
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