Exam Flashcards
Moments of truth (journey analysis)
Points in the journey that are so important for the rest of the experience as it might hinge on them
Low points (journey analysis)
Expectations are not met
High points (customer journey analysis)
Expectations are exceeded
Pinpoint high friction channel transitions (customer journey analysis)
Identify instances of high friction when users transition between different channels or devices within their journey
Time spent in major stages (customer journey analysis)
Evaluate how long users spend on the underlying substeps within each stage and determine if these durations are appropriate. Time spent often reflects the level of user effort required. Identify areas of the journey where time and effort are problematic and require attention.
Attribution problem - measure effectiveness of given touchpoint
- single touch = last interaction
- multi touch = linear/time decay
What are omnichannel shoppers
Customers that search in one channel and purchase in another
- focus on integrating activities across channels to correspond to how consumers shop
Why does omnichannel shopping happen
- customer needs and characteristics of the channels
- easy for consumers to switch between channels from one journey stage to next
Multichannel strategy
- focus on managing and optimising the performance of each channel
- use multiple communication channels to reach out to customers and prospects.
- choice of channel depends on customer preference
Omnichannel strategy - omnichannel retailer
- omnichannel retailer caters to consumer differences in preferences for whether the information and fulfilment functions should be carried out online, offline or in mixed online-offline configurations
Online distribution metrics: breadth
Performance metrics that assist analysis of the relationship between distributions and marketing objective of the brand
- how many different products a store is offering for sale. The more products are offered the broader is the product assortment of this business
Online distribution metrics: depth
- the ability of the market to sustain a substantially larger order without making an impact on the security’s market price.
- Product depth is how many different variations of each product the store is carrying. These variations can be different colors, sizes or any attribute related to the same product. The more variations the store is offering, the deeper is its product assortment.
Why are search results important
- 70% of B2C customers already use search engines both for discovery and consideration purposes
- 80% of B2B customers use search engines to support their businesses purchase
- consumers have different reasons for pre-purchase search vs post-purchase search
consumers have different reasons for pre-purchase search vs post-purchase search
- pre-purchase = gain information and knowledge
- post-purchase - look at instructions + reviews/feedback
Search visibility + ranking
- organic search results are important for website traffic
Search engine optimisation
- efforts to influence organic search results (search engine optimisation SEO)
- raise position of sires links in organic listing from search
- fine tune a website to reflect specific keywords and phrases relevant for business of site
- Process should be guided by marketing strategy and insights from consumer behaviour
Search ads/search engine advertising (SEA)
- improve visibility of website in search engine results through paid advertisements
Search visibility / ranking
Organic traffic can also vary die to oscillations in the number of searches
Key words
Keywords are words or phrases that are used to match the ads with the terms consumers are searching for
- generic key words (eg. Running shoes)
- branded key words (eg. Nike running shoes)
Sales/purchases/conversions – branded keywords – customer already knows what they want and the brand
Brands will be in organic search results too as they will be featured within
Effectiveness of paid search - direct vs indirect view
Search —> click (company pay for click)
- direct - sale
+ sale has occurred
+ revenue we can match with cost incurred
+ interested in response rates
- indirect - no sale
+ no sale occurred
+ no revenue but cost incurred
Direct profits
- profit = revenue generated by ads - cost of ads
Indirect effects
- clicks do not result in purchase but should not be categorised as losses
Display (banner) ads
General problems of display ads :consumer avoidance, low CTR
Behavioural targeting : marketing communication
based on a persons actual browsing behaviour
- identified users: customers registered/logged onto website
- unidentified users: tracking anonymous users online behaviour using cookies
Banner ads: retargeting
When evaluating the effectiveness of retargeting ads: beware of selection effects
- The consumers being targeted are already somewhat engaged or interested in the advertised product or service
- A/B testing: having a control condition and random assignment of consumers to the conditions are important for correct evaluation of ad
effectiveness
Banner ad effectiveness
Although personalisation can substantially enhance banner effectiveness, its impact hinges on its interplay with timing and placement factors
- degree of content personalisation (what)
- stage in customer journey (when)
- ad placement/context (where)
Personalisation increases CTR
Personalised banners are very effective when consumers have just left the online
store, but quickly lose effectiveness over time
Banner ad effectiveness (view-through, incongruent, congruent)
View-through: whether a consumer independently returns to the retailers online
store after viewing a banner but not clicking on it
• Incongruent – unrelated to the shopping experience
• Congruent – shopping related websites
Social media for marketing
- Progressively increasing as brands want to use it as this is where their customers
are
Marketing objectives of Spotify wrapped and dove rare beauty
Engagement – improve brand image and increase brand name and purchases
- Spotify make those who don’t share feel as though they should participate the trend to share their wrapped (fear of missing out)
- Dove -not so much about getting likes, but being seen, getting shared, people making their own and sharing to those around them – promoting a message – dove talk to individuals make surveys ask how people see the brand etc.
Customer engagement
Psychological state that occurs by virtue of interactive, correlative customer experiences with a brand
- Cognitive engagement (think)
- Emotional engagement (Feel)
- Behavioural engagement (effort/time)
Customer engagement emetics on social media
- likes
- shares
- comments
- views/impressions
- follows
- clicks
Message modality
How is the message conveyed through imagery and text
- Compared to text, visual content has unique properties and stylistic features like the angle of the camera and the size or position of a product or brand that may impact customer engagement behaviour after exposure
- Information processing for consumers differs among modalities: humans process visual information more rapidly than textual information, and images tend to be more emotionally evocative than words
Responses to emotional appeals
- Arousal: the degree to which a person feels excited, alert, stimulated, awake, or active in a situation (calm - low / excited - high)
- Valence: the degree to which a person feels good, happy, contended or joyful in a situation (or the opposite emotions) (level of pleasantness that event generates - from positive to negative)
Informative appeals: visual and textual information
- Visual brand centrality: degree to which the brand element constitutes the focal
point of the message - Visual product centrality: degree to which the product or product features central
to the message - Text: brand mentions, product mentions, price, price comparison, deals,
segment, product availability, product location
Why do we need experiments
- seek to describe, predict, explain behaviour
Starting point when working with data
Test specific hypotheses about relationship between cause (IV) and effect (DV) via controlled conditions
Main elements in experiment design
- Manipulate the independent variable:
+ Manipulation: purposefully change the independent variable in only one aspect, keeping everything else the same - Randomly assign into groups/;
+ Evens out other factors that may influence the effect (eg. Demographics
characteristics, past behaviour) - Measure effects on dependent variable
+ Common metrics in digital marketing: sales, CTR, conversion rate, page views, comments, shares, etc.
A/B test
- compare performance of 2 versions of content to see which appeals more to viewers
Online and offline media - important to consider
- Strengthsandweaknessesofeachmedia
- Possible synergy/complementiary: combined effect of multiple media activities > the sum of their individual effects
- Possible cannibalisation/substitution: combined effect of multiple media activities < the sum of their individual effects
Why do we care about interactions?
- From managerial perspective, knowing the full return from all advertising expenditures is necessary for developing an efficient marketing plan
- “Increased competition, ad clutter, the advent of the internet as an alternate information source”
- Understanding the size and direction of interaction effects has strong strategic implications
Relevant metrics by customer journey stage
- Increase brand awareness
- Increase social media conversations about the brand
- Increase website traffic
- Generate leads
- Increase online sales
- Enhance customer loyalty
- improve customer reviews
Chain of marketing productivity
- Stimulate positive attitudes
- Boost customer demand
- Generate sales and profit
Impact of digitalisation
- significant advances in data quality and quantity
- advances have occurred at tactical level rather than strategic level
Marketing impact assessed empirically in 2 main ways:
- primary data (surveys/experiments)
- secondary data (journals/articles/textbooks)
Digitalisation - unstructured and structured marketing data
-highly unstructured data (flexible - images/text/voice)
- highly structured data (quantitative - numerical/categorical/survey/Geographic)
Uses for unstructured data in digital marketing
- Brand buzz monitoring
• Sentiment analysis
• Summarising online discussion about the brand (topics)
• Identifying market trends
• Identifying consumer needs
• Identifying problems mentioned with specific product features
• Identifying which product attributes are mentioned positively/negatively
• Identifying events and consequences (Eg. Crisis) from consumer or firm
generated text
Digitalisation - soft metrics and hard metrics
Soft metrics (attitudinal)
- Brand awareness
- Brand consideration
- Liking of brand/ad
- Consumer reviews
- Social media mentions and sentiment
Hard metrics (behavioural)
- Online search for the brand
- Clicks on digital ads
- Website visits
- Conversions / sales by source
- ROAS(ROI)
• Online behaviour reflects underlying attitudes
• Online behaviour shapes consumer attitudes
• (SLOW. LANE) Attitudes measured through surveys typically change gradually over time and have lower volatility compared to weekly sales data
• (FAST LANE) online metrics like searches, clicks etc. tend to fluctuate more rapidly than weekly sales, as they capture real-time consumer behaviour and interest.
Why are dashboards useful
- Dashboard enforces consistency in measures and measurement producers across departments and business units
2.Dashboards help monitor performance: evaluative (who or what performed well?) and developmental (What have we learned?) - Dashboards may be used to plan goals and strategies
- Dashboards may be used to communicate to important stakeholders: the choice of metrics also indicates what the organisation values
5.Dashboards provide a good starting point for the important discussions, such as when management sets stretch targets without providing additional resources
Analytical style
- Present estimates and elasticities straight from the analytics to helps them understand exactly what is going on and how decisions optimality is affected
- Provide sufficient context by comparing different marketing initiatives
- Provide more information on the assumptions and the uncertainty
Intuitive style
- Use visualisations that allow for intuitive adjustments for media allocation, performance, budgets, while still being grounded in analytics
- Focus on key insights
- Avoid excessive technical details
What is EWOM
eWOM is consumer generated, consumption related communication that employs digital tools and is directed primarily to other consumers
o source:consumers
o Message:consumption-relatedcontent
o Channel:digitaltools
o Receiver:otherconsumers
EWOM process
- Consumers shift roles from eWOM senders to eWOM receivers
- The process is non-linear and recursive as part of customer journeys
o Creation of eWOM —> exposure to eWOM —> evaluation of eWOM - Why and how consumers create, are exposed to, and evaluate eWOM?
o Motivation - the desire or readiness to process information
o Ability – the extent to which consumers have the necessary resources to process information
o Opportunity – the extent to which distractions or limited exposure time affect consumers attention to information
Why do we create eWOM
Altruism – helping
Impression management – identity formation
Marketing motivate consumers to create eWOM
- Appeal to altruism, desire to help others
- Engage in timely topics of conversation to encourage consumers opportunities for
impression management and identity formation
Why do we seek eWOM
- New products: pre-purchase risks/uncertainty, post-purchase cognitive dissonance
- Influencer marketing – foMO, leisure
How marketers can create opportunities for eWOM exposure
- Make eWOM more visible on brand channels
- Use brand hashtags
- Exploit network effects
How marketers can increase consumer motivation and ability to evaluate eWOM
- Display multidimensional summaries of eWOM
- Provide structures and multiple eWOM metrics
How do influencer sponsored posts differ from online advertising and from eWOM?
- More inclined to trust influencer over brand with claims. Influencers may be ‘regular consumer’ more quality
- Hybrid between paid and earned media
Influencer marketing
- Influence marketing is a strategy in which a firm selects and incentivises online influencers to engage their followers on social media
- In an attempt to leverage these influencers unique resources to promote the firms offerings
- With the ultimate goal of enhancing firm performance
Firms leverage the selected influencers unique resources
- Follower network => target desired customers; capture changes
- Personal positioning/branding => positioning benefit: market acceptance, distinctiveness
- Communication content => creativity benefits
- Follower trust => perceived authenticity and communal relationships
Celebrity endorsement
A person who evokes public recognition uses this recognition on behalf of a brand by apprearing with it in an as
- Do not usually engage nor interact with consumers for commercial purpose
- Celebrity endorsers do not have primarily control over content creation
Seeding/viral marketing
A firm targets specific customers and equips them with products or firm
- generated content (FGC) to accelerate and expand the contagion process
+ They are not incentivised
Customer review program
A firm encourages regular or satisfied customers to share their experiences with products or services on online channels
- May or may not be incentivised
- Does not typically involve audience maintenance or deep engagement
Product placement
A firm incorporates branded products by means of visual, audio, verbal, and plot elements in mass media programs to influence audiences
Influencer marketing threats
- The brand lacks control over the content, leading to potential content in congruence
- The brand is unable to meet expectations and convert consumers initial trust to loyalty, leading to poor customer retention
- Non-disclosing sponsorship and other influencers misbehaviours that attract public criticism
Vitality
the tendency of an image, video or piece of information to be circulated rapidly and widely from one internet user to another
- How to measure it?
o Shares
o Views
o EWOMvolume,valence
o Likes
o Time to reach critical mass - Virality defined by trellis et al (2019) as achieving a large number of views in a short time period due to sharing
Motivations for sharing
- Self serving motivations: to share content that benefits themselves without directly considering the benefit to others: signal status, knowledge, uniqueness etc.
- Social motivations: to engage with a community, socialise, feel that they belong to or are part of a group
- Altruistic motivations: to show concern/empathy/help others
What goes viral
Surprising, funny, emotional, or entertaining content is more likely to be shared
Clickbait
- A headline that strategically withholds information to entice the reader to click on a link
- The role of emotions and curiosity (“curiosity gap”) in online sharing
Clickbait may be counterproductive
- Consumers are often aware of the manipulative tactics of the publishers
o Negative halo effect around the publisher
o A perception of untrustworthiness, incompetence, and lack of sincerity, which translates into a lower likelihood of sharing - Clickbait may enhance direct readership, but it is both liked less and shared less
than non-clickbait
What drives sharing of online ads
- Informational appeals for high product or purchase risk (the product or service is new or its price is high)
- Ads that evoke positive emotions of inspiration, warmth, amusement, and excitement
- Ads that use elements of a drama, such as surprise. Likeable characters. And a plot
- Late placement of the brand name in the ad, compared to early or intermittent placement of the brand name through the ad
- Moderate ad length: ads between 1.2 to 1.7 minutes
