Shifting to the Connected Customer: Trends and Strategies

Shifts toward the connected customer, from

Exclusive to inclusive à (innovation and diversity, mass markets, social media as a redefinition of how people interact)

Vertical to horizontal

à open innovation, ecosystem business, branding (value…)

Individual to social

à most personal purchase decisions will be social decisions, lack of control over marketing communication, high impact of community generated content

ATTRIBUTION MODELLING

1. Method to determine the value of different channels on marketing efforts.
2. Allows to map which channels provide the most benefit to a marketing campaign.
3. Way in which marketers assess the value or ROI of the channels that connect them to potential customers.

Goal:

• Map effects and value of a campaign’s components

Measure:

• Within a channel, e.g. delivery rate to lead generation.
• Cross-channel, e.g. looks at the interaction between people and their exposure and/or interactions with each element of the digital mix.

Use:

• Channel impact measure
• Budget planning

Attribution modelling: FIRST TOUCH Single source attribution models assign all the credit to one touchpoint, usually first touch or last touch LAST TOUCH ▪ 100% of the credit goes to the marketing interaction that drove the conversion. ▪ Provides insight on campaigns that have the highest conversion rate, but lose sight of any influences leading up to the conversion. LINEAR ATTRIBUTION - first step towards multi-touch attribution. - assigns credit evenly to every marketing touch throughout the customer journey. - if there are 10 touches, each will receive 10% of the credit. When there are 5 campaigns, each will receive 20%. TIME DECAY - Assigns the most credit to the interaction that resulted in a conversion. - Touches leading up to the conversion event receive less value the further back they are from the conversion. POSITION-BASED - Combines the best features of the linear and time decay models. - Position–based will assign 40% of the credit to the first and last touch with the remaining 20% being split out evenly to every touch in between. DATA-DRIVEN MODEL - Allows to plug in end goals and then weight each channel based on its effectiveness in accomplishing those goals.

CRM

Goal: bonding with your customers to stay Proactive strategy: controlling a positive situation CRM strategy: core principles

1. FREQUENCY: How often do you contact your customers?
2. TIMELINESS: are you talking to the customer at the right time? How do you know when this right time is?
3. ACCURACY: is your data accurate?
4. RELEVANCY: does your message truly resonate with the customer?
5. PERSONALIZATION: if your customer has shown an interest in certain areas or displays certain behaviours then are you responding to that?
6. VALUE: are you offering true value? What is the customer getting from your communications that they cannot get elsewhere?

Definition strategy:Is the proc by which a firm employ, either partially or exclusively, dig tools, techniques and tactics to create value for customers?