Transformative effect of digital & social media on the customer acquisition process

Keith Feighery

Overview

• Changing landscape for marketers• Conversation-based marketing programmes• Developing an aligned digital strategy• Case Studies• Questions

Most dramatic sign of this in the shift in marketing budgets from traditional offline

budgets to digital

Marketing Trends for 2010

• 28% of marketers are shifting marketing budgets from traditional to digital channel

• Two-thirds of marketers are planning to increase investments in social media even though less than one-fifth can effectively measure ROI.

• 56% plan to increase budgets for mobile marketing• 54% plan to increase budgets for email marketing.• 51% plan to increase budgets for paid search.• 42% of marketers plan to keep budgets the same as 2009 and 13% plan

to decrease their overall marketing budget.• 41% of marketers plan to decrease spending on print and radio

marketing in 2010.

Marketing Budgets 2010

Aligned with this shift in budget, both the means and roles of marketers have changed

Where is everyone?

Traditional Vs Social

Owned Vs Paid Vs Earned Media

Change is predicated on the changing consumption and behaviours of the customer

Changing Customer Landscape

• The relationship between organisations and customers has traditionally been optimised around the organisation, not the customer

• Companies and organisations have fallen behind in connecting with customers – they now realise that they must find a way to participate in these Conversations

• Customers choose to connect and collaborate with each other without the organisations, disrupting the flow of influence.

New digital platforms are mass enablers of peer to peer conversations, sharing and

interactions

Social Media Landscape

Marketers must understand the dynamic of communities

Shift away from interrupt based marketing to a more conversational process

Risks Posed

• Loss of control of the conversation– Two way communication– Openly negative transmissions

• Using social channel as a marketing or PR conduit• Broadcast as opposed to engagement

• Can be a difficult persona for brands to adopt– Reveal a human voice of a corporate identity

• What it is that voice?

• Starting – and then not following through – Inevitable criticism

Benefits of social engagement• Listening

– Crucial to hear what the public is saying about you• Both positive and negative

– Crowdsourcing – understand behaviours, experiences, language patterns etc..

• Conversations– Once you know what is being said about you, where it is being said – you

can then interact directly with customers (without filters)• Community Advantage

– Build long lasting relationships and trust with customers– Build real and valuable communities online and offline (Two way process)– Reduce customer acquisition costs (Media spend)– Increase customer retentions (Loyalty/Advocacy)– Instant polling and research opportunity with customers

Brands & organisations must embrace a more social engagement because it is happening

with or without them

Challenge now is to build engaging digital and social strategies aligned with clear business

objectives

Digital Strategy Process

Digital Strategy & Planning

Source RedAnt.co.uk

Planning• Define business objectives

– Increase awareness, increase reputation, create demand, educate audience, increase sales, augment lead generation programme etc..

– Identify and communicate to key stakeholders (buy-in)• Listening to what is being said about brand currently• Define audience and break down into key segments

– Influencers, Advocates, Specific Personas – Demographics, Psychographics, SocialGraphics etc.

• Audience locations and value of each audience segment– Where do they reside digitally, what are their preferences, how do they

consume media, what are preferred formats• Aligning brand with digital strategy

– What is the tone, voice, perception currently presented

Goals and Audience Location Analysis

Source RedAnt.co.uk

Creation• Once strategy, audience, locations are known

– Start conceiving, designing and creating tactical solutions

• Identify themes, channels, tone, aims for each tactical channel and initiative– PPC, Social Platforms, SEO, Email, Lead Gen etc…

• For B2B business map out buyer and sales cycles– Align marketing and sales organisations

• Create internal procedures and best practices for social channels• Initiate a content marketing production programme

– Map this out along with personas and buyer cycles

• Define KPIs for each programme – know upfront what success will look like (by corollary failure too)

Mapping audience, solutions and projected ROI

Source RedAnt.co.uk

Case Studies

Heineken Activation

Kogi BBQ

Best Buy

Hairybaby

Pat The Baker

Zappos

Charmin “Go” Campaign

Digital crisis and reputation management

United Airlines

Domino’s

Successful Viral & UGC Campaigns

Upside Down Tango

Walkers “Do us a Flavour”

Unsuccessful Viral & UGC Campaigns

Danish Single Mother Hoax

Contact Details

www.linkedin.com/in/keithfeighery

www.twitter.com/kfeighery

www.faceboook.com/keith.feighery

keith.feighery@digitalinsights.ie

086 6070274

Thank You