Chapter 6

Question 1

Data driven marketing

Answer 1

Using insight about customer profiles, preferences and interactions with a brand to increase the relevance and effectiveness of marketing communications through research, data analysis and personalisation of messages to customers and prospects

Question 2

Marketing automation

Answer 2

Enables businesses to automate tasks in the marketing and sales process to profile prospects and customers and deliver more relevant communications, typically delivered as personalised emails and website messages.

Question 3

Customer Relationship Management (CRM)

Answer 3

A marketing-led approach to building and sustaining long-term business with customers.

Question 4

Churn rates

Answer 4

The percentage of customers who end their relationship with a company, typically calculated as the number of customers who left a company during a period divided by total customers at the beginning of the period. It is straightforward to calculate for subscription businesses, but requires a definition of ‘active customers’ for other types of business, such as retailing.

Question 5

Social selling

Answer 5

A proactive approach to using social media to generate leads and sales, particularly applied to B2B marketing in LinkedIn where it’s possible to identify prospects and connect with them.

Question 6

Account Based Marketing (ABM)

Answer 6

The process B2B marketers use to communicate with buyers and users or services within target businesses in a market to generate new accounts and grow penetration into existing accounts

Question 7

Sales cadences

Answer 7

Communications between a business development person and prospect aimed at achieving lead nurture and conversion to sale. These can be automated for different channels including email, phone or social media messaging

Question 8

Web self-service

Answer 8

Web self-service

Question 9

Marketing orchestration

Answer 9

Designing customer contact strategies to deliver the most relevant, most responsive messages integrated across different communications channels based on customer context. Communications strategies are managed by marketing automation systems using rules or artificial intelligence based on Big Data analysis rather than manually created campaigns.

Question 10

Contact or touch strategy

Answer 10

Definition of the sequence and type of outbound communications required at different points in the customer lifecycle. Includes event-triggered automated interactions such as an email welcome sequence for a new subscriber

Question 11

Contextual marketing

Answer 11

Relevant communications are delivered consistent with the context of the recipient, which can depend on their location, time or place

Question 12

One to one marketing

Answer 12

A unique dialogue occurs between a company and individual customers (or groups of customers with similar needs) using automation and personalisation to increase relevance

Question 13

Contact polity should include:

Answer 13

1. The frequency
2. The interval
3. Content and offers
4. Links between online and offline communications
5. A control strategy

Question 14

Customer engagement

Answer 14

Repeated interactions through the customer lifecycle prompted by online and offline communications aimed at strengthening the long-term emotional, psychological and physical investment a customer has with a brand

Question 15

Media fragmentation

Answer 15

Describes a trend towards increasing choice and consumption of a range of media in terms of different channels such as web and mobile and also within channels – for example, more TV channels, radio stations, magazines, more websites. Media fragmentation implies increased difficulty in reaching target audiences.

Question 16

Sense-and-respond communications

Answer 16

Delivering timely, relevant communications to customers as part of an automated contact strategy, based on assessment of their position in the customer lifecycle and monitoring specific interactions with a company’s website, emails and staff.

Question 17

Gamification

Answer 17

The process of applying game thinking and mechanics to engage an audience by rewarding them for achievements and sharing

Question 18

Customer lifecycle

Answer 18

The stages each customer will pass through in a long-term relationship with an organisation, including acquisition, retention and extension prompted by digital and non-digital communications touchpoints

Question 19

Customer selection

Answer 19

Identifying key customer segments and targeting them for relationship building

Question 20

Customer acquisition

Answer 20

Strategies and techniques used to gain new customers

Question 21

Activation

Answer 21

A prospect or customer takes the first step in actively using an online service after initial registration or purchase.

Question 22

Customer retention

Answer 22

Techniques to maintain relationships with existing customers

Question 23

Customer extension

Answer 23

Techniques to encourage customers to increase their involvement with an organisation

Question 24

Permission marketing

Answer 24

Customers agree (opt-in) to be involved in an organisation’s marketing activities, usually as a result of an incentive

Question 25

Interruption marketing

Answer 25

Marketing communications that disrupt customers’ activities

Question 26

Landing page

Answer 26

A destination page when a user clicks on an ad or other form of link from a referring site. It can be a home page, but more typically and desirably, a landing page is a page with the messaging focused on the offer in the ad. This will maximise conversion rates and brand favourability.

Question 27

Lead generation offer

Answer 27

Offered in return for customers providing their contact details and characteristics. Commonly used in B2B marketing where free information such as a report or a seminar will be offered.

Question 28

Sales generation offer

Answer 28

Encourages product trial. A coupon redeemed against a purchase is a classic example

Question 29

Customer profiling

Answer 29

Using the website to find out a customer’s specific interests and characteristics

Question 30

Single customer view

Answer 30

Customer profile information is kept consistent across systems to maintain customer data quality

Question 31

Lead scoring

Answer 31

A technique to measure interest in a business’s services based on a lead’s behaviour. Typically based on scoring interaction with different types of content, with points potentially taken away for inactivity. The higher the score, the more interested a lead is and therefore better suited for a sales conversation. Typically, leads are graded from 1 (highest interest) to 5 (lowest interest).

Question 32

Lead grading

Answer 32

A technique to measure fit with an organisation’s services based on profile information such as job title, company size or sector. Typically, leads are graded from A (best fit) to E (poorest fit).

Question 33

Marketing qualified lead (MQL)

Answer 33

A prospect who has indicated interest in what a brand has to offer based on assessment of their interaction with a brand or stated preference.

Question 34

Sales qualified lead (SQL

Answer 34

A prospect who has indicated they are potentially interested in purchase, typically through interaction with a business development person

Question 35

Lead nurture

Answer 35

A communications process aimed at developing purchase intent in a prospect by increasing brand favourability and familiarity.

Question 36

Split testing

Answer 36

Different groups within an audience receive alternative communications with different creative, offer or frequency to determine which is most effective to inform the communications used for future campaigns

Question 37

Hold-out testing

Answer 37

A group within an audience is excluded from communications to compare their behaviour or value compared to other groups that receive alternative forms of communications such as different offers or different frequency

Question 38

Predictive analytics

Answer 38

Using analysis, data mining and statistical modelling of historical data about customer interactions and their profile to predict future outcomes, for example by scoring customer propensity to respond to a specific offer. This can be used to inform future personalised communications by tailoring the timing, message or offer.

Question 39

Customer preferences centre

Answer 39

Profile page(s) that enables customers to tailor the type and frequency of communications they receive

Question 40

Personalisation

Answer 40

Digital experience personalisation is the dynamic serving of customised content, product or promotional offer recommendations to website visitors or app users based on their characteristics and intent behaviour to support conversion and long-term engagement goals

Question 41

Mass customisation

Answer 41

The creation of tailored marketing messages or products for individual customers or groups of customers typically using technology to retain the economies of scale and the capacity of mass marketing or production.

Question 42

Collaborative filtering

Answer 42

Recommended content or promotions are automatically created based on reviewing similarities in how customers behave

Question 43

Customer identity and access management (CIAM

Answer 43

A category of application for managing user access and consent to online information and services typically known as social log-in or sign-on.

Question 44

Big Data for marketing

Answer 44

Big Data’ refers to applications to gain value from the increasing volume, velocity and variety of data integrated from different sources. These enhance insight to deliver more relevant communications through techniques such as marketing automation

Question 45

Artificial intelligence

Answer 45

Software and services that perform tasks previously requiring human analysis and interaction. Marketing applications of AI typically aim to improve business-to-customer communications including targeting media, personalised messaging and customer service interactions.

Question 46

Machine learning

Answer 46

Creating and applying predictive models and algorithms with the ability to learn without being explicitly programmed. The computer models then make predictions of success based on patterns extracted from historical data. These are used to define rules, which are implemented to automate tasks such as targeting media or emails to the most valuable segments with the most relevant creative offer and timing

Question 47

emotional loyalty

Answer 47

Loyalty to a brand is demonstrated by favourable perceptions, opinions and recommendations

Question 48

Behavioural loyalty

Answer 48

Loyalty to a brand is demonstrated by repeat sales and response to marketing campaigns.

Question 49

Customer satisfaction

Answer 49

The extent to which a customer’s expectations of product quality, service quality and price are met.

Question 50

Online voice of customer (VoC)

Answer 50

Qualitative assessments of the effectiveness of digital presence based on direct customer feedback. They answer ‘who and why’ questions about how customers interact with brands online.

Question 51

Net Promoter Score (NPS)

Answer 51

A measure of the number of advocates a company (or website) has who would recommend it, compared to the number of detractors

Question 52

Cohort analysis

Answer 52

A technique used to assess how the loyalty or engagement of a group of customers changes through time.

Question 53

Lifetime value (LTV

Answer 53

Lifetime value is the total net benefit that a customer or group of customers will provide a company over their total relationship with that company.

Question 54

Recency–frequency–monetary value (RFM) analysis

Answer 54

RFM is sometimes known as FRAC, which stands for: frequency, recency, amount (obviously equivalent to monetary value), category (types of products purchased – not included within RFM).

Question 55

Latency

Answer 55

The average length of time that different customer types take between different activities, e.g. log-ins, paying bills, first and second purchases.

Question 56

Hurdle rate

Answer 56

The proportion of customers that fall within a particular level of activity. For example, the percentage of members of an email list that click on the email within a 90-day period, or the number of customers that have made a second purchase.

Question 57

Propensity modeling

Answer 57

The approach of evaluating customer characteristics and behaviour and then making recommendations for future products

Question 58

Ad retargeting

Answer 58

Ads are served to people who have previously interacted with a brand, for example through visiting a website, social media profile or searching. In Google, retargeting is known as remarketing.

Question 59

Social proof

Answer 59

Consumer psychology research shows that potential customers trust recommendations from others, so communicating social proof in different formats can increase conversion. Forms of social proof include customer reviews, ratings, testimonials and case studies, and independent validation by an influencer or recognised trustworthy sources. Numbers showing the size of the company and brand idents can also communicate social proof

Question 60

Organic social media marketing

Answer 60

It’s common practice to distinguish between organic and paid social media marketing activities in a similar way to organic and paid search marketing. Organic social involves using social networks and customer communities to develop relationships, share positive opinions through social media amplification and manage negative social media comments

Question 61

Social media marketing

Answer 61

Organic sharing and paid advertising using social networks and their messaging services to gain awareness and response from target audiences. Also involves facilitating and monitoring customer-to-customer and customer-to-company interactions and participation on social networks and other online communities where user-generated content is created

Question 62

Social CRM

Answer 62

The process of managing customer-to-customer conversations to engage existing customers, prospects and other stakeholders with a brand and so enhance customer relationship management

Question 63

Social media listening and social media monitoring (SMM)

Answer 63

Social media intelligence processes for reviewing brand mentions, market keywords and sentiment for a business and its competitors in social media and online publishers.