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INTERNET MARKETING : INTEGRATING ONLINE AND OFFLINE STRATEGIES. Chapter 4 The Direct and Database Foundations of Internet Marketing. Chapter 2 Update!. DELL PREMIER PAGE. INTEGRATED MAIL/WEB?. NON-PROFITS GOOD AT DIRECT RESPONSE. EMAIL WITH DR OBJECTIVE. EMAIL TO TRAFFIC STORES, WEBSITE.
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INTERNET MARKETING:INTEGRATING ONLINE AND OFFLINE STRATEGIES Chapter 4 The Direct and Database Foundations of Internet Marketing
Chapter 2 Update! DELL PREMIER PAGE
In What Ways Is The Internet A Direct-Response Medium/ Channel? And Why Does It Matter?
BASIC DIRECT-RESPONSE STRATEGIES Retention Conversion Acquisition
CRITICAL STRATEGY ELEMENTSFROM DIRECT-RESPONSE PERSPECTIVE The Service & Support The Offer The (Email) List The Creative Execution The Media
DIRECT-RESPONSE OBJECTIVES Direct-Response Objectives are ACTION Objectives: • To Remain on the Site Longer (“Site Stickiness”) • Well Designed Site With Much Relevant Content • To Request Additional Information (Sales Lead) • To Make a Sale (E-Commerce)
WEB 2.0 = ENGAGEMENT http://wiredset.com/root/archives/008589.html
LANDING PAGE CAPTURES DATA Figure 4-4a
PRODUCT PAGE SELLS Figure 4-4b
THE REMAINING STRATEGY ELEMENTS • E-Mail List for Customer Acquisition and Retention • The Media • ANY MEDIUM Can Be Direct Response With Action Objectives • Creative Execution • Historically Less Important in Direct Response • Rich Media Has Increased Role on Internet • Customer Service and Support
THE FRONT vs. THE BACK END • THE FRONT END • All Pre-Sale Activities • Marketing and Sales • THE BACK END • All After-Sale Activities • Includes Order Processing, • Fulfillment, Service, Support
WHAT IS CLV –AND WHY IS IT SO IMPORTANT? Customer Lifetime Value Is The Net Present Value Of The Gross Margin Minus Cost of Servicing An Individual Or A Cohort Of Customers. • Reasons For Importance: • The Best Metric For Judging The Success Of • Customer Acquisition & Retention Programs • The Most Powerful Segmentation Criterion
A SIMPLE ONLINE TOOL http://hbsp.harvard.edu/multimedia/flashtools/cltv/index.html
BASELINE CLV CALCULATION Table 4-1
EFFECT OF TARGETED PROGRAMS ON CLV Table 4-3
Email Newsletter Email Newsletter Content Version B Content Version A THE DIRECT RESPONSE TEST A/B Split is One Of Many Types of Tests
How is Testing Different From Marketing Research?
TESTING vs. MARKETING RESEARCH • Testing Tells the Marketer WHAT WORKS. • Marketing Research Explains WHY IT WORKS.
RECOMMENDATION Behavioral Analysis FIRST Faster, Cheaper, Actionable ONLY THEN Marketing Research IF You Need to Know “Why”
http://www.marketingexperiments.com/images/multifiles/articulate/webclinic-06-25-08/player.html?=meblog2http://www.marketingexperiments.com/images/multifiles/articulate/webclinic-06-25-08/player.html?=meblog2
Marketing Program Data Other Business Data DATABASE/ DATA WAREHOUSE Marketing Support Data External Data THE DATABASE IMPERATIVE
BENEFITS OF CUSTOMER DATABASE Harrah’s Casinos Increased Revenues and Profits By Building and Using (Mining) a Customer Database
WHAT IS “DATA MINING?” A Set of Statistical Routines That Permit Pattern Detection In Large Data Sets
SUMMARY • Interactivity of Internet = Direct-Response Medium • Learning To Use In Branding Also (Chapter 7) • Use For Customer Acquisition,Conversion,Retention • Generate Sales, Leads, Site Stickiness • Judge Success By Customer Lifetime Value • To Increase Customer Lifetime Value Targeted, Information-Driven Marketing Is Essential • Data Capture Through Transactions and Customer Contact • Modeling, Data Mining • Interactive Marketing Strategies Should Increase Customer Focus and Marketing Effectiveness • They May Decrease In Cost As Targeting And Personalization Improve