August 27, 2009 - Comments Off on How not to become the Rip Van Winkle of Digital Marketing
How not to become the Rip Van Winkle of Digital Marketing
Your company has a digital marketing strategy which you have equipped with resources and a good budget. So can you afford to sit back and relax and let magic unfold before you with new leads generated everyday and conversions being made as easy as pie? Right?
The digital world is changing faster than most marketers are able to keep pace. New media are coming up every day and marketers relying on outdated media models and metrics are finding it difficult to tap into the full potential of the internet.
In June 2008, McKinsey released a research survey on 340 senior marketing executives that showed the glaring gap between what is needed in terms of measuring marketing efforts on the web and what is available. 91% of the companies surveyed by McKinsey said that their companies were advertising online and were experimenting with wikis, widgets and social networks. Respondents in the survey who mentioned that their companies were tracking measurement using techniques like analytic tools were reported to have a higher level of satisfaction than the ones who did not.
Measurement of marketing efforts is one of the crucial elements of your marketing strategy, and quite simply the foundation to the entire structure of your campaign. Poor measurement could mean that you would have lost out on possible ROI percentage, but could also have made some wrong decisions based on poor measurement. The offline traditional media has a great potential to influence online sales. Failing to acknowledge the cross- channel impact of advertising could be critical for a marketer in estimating the true worth of advertising spend.
Measuring the impact of the social media can help boost income in a big way.An example that comes to mind is of a European cable company which initiated a marketing campaign to sign up new customers for their cable service. The online campaign targeted customers and was aimed to maximize the ROI of a single advertising opportunity by serving the advert that looked most promising in combining likelihood of conversion and profitability of the conversion. At the start, the company divided its target customer base into segments with parameters like social media sites they visited and their past behavior. They were then able to position the most appropriate advert to the targeted segment using email, video or graphics rich video. Voila! Conversion rate increased by 50%.
Another company that made use of the internet to push for higher conversion is a telecom company that made use of a social network mapping technique. It profiled its customer base’s email traffic to people who had subscribed to the same broadband connection. Based on the principle that members of the same network would have similar needs, the company then offered the subscribers in its customer’s email networks the same telephone and broadband plan as the customer profiled earlier. In this way, the company could better its conversion rate by 80% from that of the direct marketing campaign it had worked on earlier.
So, the idea I am driving at is this: having a digital strategy is alright. But implementing accurate measurement techniques for your digital marketing strategy is what will help you not become a Rip Van Winkle of digital marketing.