2 lecture Flashcards
customer journey analysis: what to do? 5X
- Look for low points in the journey where expectations are not met
- Identify high points in the journey where expectations are exceeded.
- Look for moments of truth: points in the journey that are so important that the rest of the experience might hinge on them
- Evaluate time spent in major stages. Identify any unnecessary touchpoints or interactions.
- Pinpoint high-friction channel transitions; channel pain points. (friction can appear when users change channel)
Attribution problem
An attribution problem occurs in online marketing when you can not determine the primary source of conversion or you do not know the conversion paths followed by your website users
How do we measure the effectiveness of a given touchpoint? 2X
- Single touch: last interaction
- Multi-touch: linear and time decay
Omnichannel: begrip
Bij omnichannel kan de consument kanalen door elkaar gebruiken terwijl de beleving, prijzen, en informatie overal hetzelfde zijn. Alle kanalen lopen volledig in elkaar over waardoor een volledig transparant proces ontstaat.
Multichannel: begrip
Zoals het begrip al doet vermoeden is multichannel het bedienen van consumenten via meerdere verkoopkanalen. De consument kan kiezen of hij een product online of in de winkel koopt. Online en de winkel zijn hierbij niet op elkaar afgestemd
Research shoppers are defined as
as customers that search in one channel and purchase in another: 43% of all shoppers
2 examples research shoppers
Showrooming: looking in store, buying online
Webrooming: looking online, buying in store - Important to look at those two types of customers because of the increased touch points
The research-shopping phenomenon can be illustrated by means of three mechanisms
- Channel- stage association: Association between channel attributes and customer needs in a certain stage of the customer journey
- Channel lock-in: Switching behavior of customers between information search and purchase, low lock-in channels foster research-shopping
o ‘Lock in’ aims to create a barrier for customers to switch from your brand or offering and instead move to a competitor offering. It can do this through a combination of increasing switching costs or the effort to transfer (soft lock-in) and positive reasons to stay such as superior brand experience or incentives. - Cross-channel synergy: Searching in one channel may improve the purchase experience in another channel
Can customer experience be poor, if the individual touchpoint perform well?
Yes, customers experience companies through end to end experiences, not touchpoint, t
Multichannel lecture
The design, deployment, coordination, evaluation of each channel (focusing on managing and optimizing)
Omnichannel lecture
Focus on integrating activities across channels to correspond to how customers shop.
Omnichannel strategy
An omnichannel retailer (unlike a single-channel counterpart), caters to consumer differences in preferences for whether the information and fulfillment (purchase & delivery) functions should be carried out online, offline, or in mixed online–offline configurations
Online Distribution metrics
Performance metrics that assist analysis of the relationship between distribution and marketing objective of the brand
Distribution breadth
of outlets or pages selling the product, if they are important and have good number of visitors (coverage)
ºDistribution depth
How many products of the brand/line I can find in each store, do I have to go to different ones in order to find what I am looking for? (in-store attractveness)
Paper focus: Reinartz et al (2019), the digital transformation of retail. New sources of value creation enabled by digital technologies 5X
- Automation: automatic activities and processes
- Individualization: personalized marketing efforts to individuals
- Ambient embeddedness (omgevingsverbondenheid): integration with customer routines and everyday life
- Interaction: how customers and or firms communicate and interact
- Transparency and control: Activities and processes that provide customers superior information, education, and product use
Paper focus: Reinartz et al (2019), the digital transformation of retail.
Source of value creation –> consumer perceived benefits
Automation
Individualization
Ambient embeddedness
Interaction
Transparency and control
Consumer perceives benefits Convenience Relevance Experience Empowerment Savings
Paper focus: Reinartz et al (2019), the digital transformation of retail. along the customer journey: pre-purchase Source of value creation --> representative processes / activities --> examples Automation Individualization Ambient embeddedness Interaction Transparency & control
Representative processes / activities Examples
Automated communication Reminders, in-stock notifications, and price alerts
Individualized communication & recommendations Recommender systems (Netflix, Spotify)
Embedded communication (right time, right device, right channel) Geo-targeting; Location-based push messages
Technology-enriched pre-purchase interactions Virtual fitting rooms
Easy access to comprehensive product information Combination of information sources (product description, reviews, comparisons, etc.)
Paper focus: Reinartz et al (2019), the digital transformation of retail.
along the customer journey purchase
Source of value creation –> Representative processes / activities– > Examples
Automation
Individualization
Ambient embeddedness
Interaction
Representative processes / activities Examples
Predictive maintenance Smart home appliances that automatically adjust functionalities
Individual use optimization Smart products that provide feedback (L’Oreal’s smart brush, Colgate’s E1 smart toothbrush)
Seamless service access (anywhere, anytime, any channel) Integrated eco-system (Amazon Fresh, Video, Kindle, Echo, Dash, etc.)
Share product use and experiences Peer-to-peer review sites
Check and handle
remotely Smart home appliances that offer users control via smartphone
Paper focus: Reinartz et al (2019), the digital transformation of retail.
along the customer journey: post-purchase
Source of value creation –> representative processes / activities –> examples
Automation
Individualization
Ambient embeddedness
Interaction
Transparency & control
Representative processes / activities Examples
Predictive maintenance Smart home appliances that automatically adjust functionalities
Individual use optimization Smart products that provide feedback (L’Oreal’s smart brush, Colgate’s E1 smart toothbrush)
Seamless service access (anywhere, anytime, any channel) Integrated eco-system (Amazon Fresh, Video, Kindle, Echo, Dash, etc.)
Share product use and experiences Peer-to-peer review sites
Check and handle
remotely Smart home appliances that offer users control via smartphone
The rise of digital platforms
What is a platform:
Digital intermediary that links external producers/sellers to consumers, thereby enabling “value-creating interactions
Platform characteristics 4X
º Mediation
º Autonomy
º Network effects
º Digital infrastructure
pipeline busines model en platform business model tekenen
tekenen
Not every business can or should transform into a platform business
What are the options (basic strategies)?
3X
- Innovation: company creates its own digital platform – Douglas
- Cooperation: company uses third-party digital platforms as distribution channels
- Confrontation: company competes with digital platforms using different strategy – IKEA
Option 1: Innovation example of pros and cons
4X con
4X pro
pro
Platforms expand the range of services and products
Platforms enable additional traffic and a higher reach
Platforms enable the collection and use of additional customer data
Potential expansion to core business
con
Platforms require more investments than commonly assumed
It is difficult to monitor suppliers and enforce common standards
Platforms are subject to strong competition from other platforms (network effects)
Potential intrabrand competition
Option 2: Cooperation example pro aand con
pro
Platforms can help grow your business and generate additional revenue
Platforms enable additional traffic and a higher reach
More interaction opportunities to establish customer relationship become possible
Considerably less upfront investments compared to building your own platform
con
Platforms increase the transparency of offers and the competition for customers
Platforms increase pressure to lower price to compete
The platform channel competes with the existing core business
You provide data for the platforms to develop their own business
Option 3: Confrontation exampe pros and cons
pro
Develop digital capabilities for effective online communication
Strengthen brand by focusing on quality / product offering
Strengthen customer experience
Improve relationships with retailers / manufacturers etc.
con
Enter new business areas or adapt business model
Extend service offering
Use digital channels to create connections with customers
Provide solutions instead of products
organic results
Free listings that appear when are relevant to what son is searching for.
Basic metrics:
º Cost
How much you are paying for the campaign, keyword.
Basic metrics:Impressions
Number of times people have seen your ad
Basic metrics:CTR
CTR (click through rate): Clicks/impressions (if its high it means is relevant and attractive)
Basic metricsAverage CPC
cost per click): Cost/clicks (if its high for a specific keyword means it is competitive and has a high number of advertisers bidding on it)
Basic metrics: Conversions
specific customer activity, valuable to the business, online purchase or phone call) CR (conversion rate): Conversions/clicks
Basic metrics:CPC
CPC Cost per conversion): Cost/conversions (return on investment from the ads)
Basic metricsDrive engagement:
Based on Clicks, CTR and average CPC
Basic metrics:Drive conversions
(This are harder to obtain): Based on Conversion, CPC and Conversion Rate
How does the search ad auction works 3 main factors
- Bid (willingness to pay for the click on the ad)
- Quality of the ad (quality score: Expected clickthrough rate (prediction based on historical performance data), Ad relevance to match the keyword, landing page experience (relevant content, transparent, easy to use))
- Expected impact of ad extensions (Pages, phone number, mails)
intrabrand competition
Intra-brand competition : Competition among distributors or retailers of the same branded product, be it on price or non-price terms.
The network effect
a phenomenon whereby increased numbers of people or participants improve the value of a good or service. The Internet is an example of the network effect. Initially, there were few users on the Internet since it was of little value to anyone outside of the military and some research scientists.
