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Looking for the digital consumer
David Reed, editor, Journal of Direct, Data and Digital Marketing Practice

20th September 2012
About DDDMP


✤   “Indispensable resource for senior marketing
    managers seeking awareness of new marketing
    concepts, strategies and applications from around
    the world.”

✤   Published quarterly, each issue usually comprises
    an editorial, 4-5 peer-reviewed papers, a best
    practice case study, a new technology briefing, a
    legal & regulatory update, 15 abstracts, and 3-4 book
    reviews.

✤   Personal subscription print and online for £124

✤   Member benefit if you join the IDM.
Issue 14.1


✤   “An empirical investigation of social network
    influence on consumer purchasing decision: The
    case of Facebook.”

✤   “From web analytics to digital marketing
    optimization: Increasing the commercial value of
    digital analytics.”

✤   “The digitally excluded consumer - Options for
    marketers.”
DDDMP 14.1 - The Case of Facebook

                                       ✤   “Facebook promotes a consumer-to-consumer approach,
                                           exploited by consumers to share experiences and create a
                                           common knowledge of products and services...provides
✤   An investigation into the extent       managers a direct channel for communicating with clients
                                           through a business-to-consumer approach.”
    to which social networks           Hypotheses:

    influence purchasing decisions     ✤   Ease of use of FB influences role as support tool in decision-
                                           making.
    through a quantitative analysis.   ✤   Ease of use has a direct influence on gathering information
                                           through this source.
                                       ✤   Usefulness of messages influences attitude towards using FB for
✤   Researches beyond usage into           information about purchases.

    Facebook-mediated marketing        ✤   Attitudes towards FB influence intention to use it as a support
                                           tool for purchasing decisions.
    communication.                     ✤   Enjoyment of FB influences perceived usefulness.
                                       ✤   Enjoyment influences attitude towards role as support tool for
                                           purchasing decisions.
                                       ✤   Enjoyment of FB influences behaviour in using it for this
                                           purpose.
                                       ✤   Ease of use has a direct influence on enjoyment.
DDDMP 14.1 - The Case of Facebook


✤   Anonymous survey among           ✤   “Managers could improve the
    students in Southern Italy,          fun provided by pages by
    generating 187 responses.            adding games, contest and
                                         applications.”
✤   Proved all hypotheses (except
    number 1)                        ✤   “Marketers would consider the
                                         link between a high level of
✤   “Users appreciate the presence       enjoyment...for positively
    of firms/products...and take         affecting consumer purchasing
    into account recommendations         decisions.”
    and suggestions.”
DDDMP 14.1 - From Web Analytics to
Digital Marketing Optimization

✤   Reviews opportunities to better
    apply web analytics to improve
                                       ✤   “Adoption levels of [web
    digital marketing performance.         analytics] are high, but usage of
                                           them remains surprisingly low.”
✤   Defines an approach to
    improve the value contributed
                                       ✤   “Majority not using
    by web analytics.                      fundamental web analytics
                                           approaches such as customer
                                           journey analysis and
✤   Describes techniques to set up a       segmentation...despite the
    digital marketing optimization         majority rating these as
    programme.                             highly/quite valuable.”
DDDMP 14.1 - From Web Analytics to
Digital Marketing Optimization
✤   Lack of resources and budget       ✤   “Scope of web analytics should
    are significant barriers - for         be broadened beyond its
    every $80 spent driving traffic,       traditional focus on website
    $1 spent converting it.                optimization to other forms of
    (Source: Omniture)                     digital media.”

✤   Companies with a structured        ✤   Need for a continuous
    approach to conversion 2x more         improvement process and
    likely to have seen large sales        analysis methodology for
    increases.                             making improvements - Six
                                           Sigma, DMAIC.
✤   “Success depends on reducing
    inefficiencies in digital          ✤   Select the right KPIs.
    marketing.”
DDDMP 14.1 - From Web Analytics to
Digital Marketing Optimization


✤   Reach, Act, Convert, Engage
    framework.
                                      ✤   “To increase adoption, web
✤   Covers all main measures
                                          analytics needs to be
    across the customer lifecyle at
                                          repositioned as an improvement
    different levels of reporting.
                                          process.”
✤   Ten tests of measurement
    design.
DDDMP 14.1 - The Digitally Excluded
Consumer - Options for Marketers

                                    ✤   “Clients and their agencies have
                                        differing views about the speed
                                        of migration online.”
✤   One-fifth of consumer are not   ✤   Clients - 26% expect to increase
    online - 8.7 million people
                                        offline marketing budgets v
                                        Agencies - 9% expect increase
✤   Need to supplement digital
    marketing with analogue         ✤   Clients - 26% expect to decrease
                                        offline marketing budgets v
                                        Agencies - 58% expect decrease
DDDMP 14.1 - The Digitally Excluded
Consumer - Options for Marketers

                                    ✤   “Majority are not digitally
                                        excluded, but digitally
✤   Age factor - 7.3 million            indifferent or even digitally
    digitally-excluded over 55.         disinterested.”

✤   Absence of PC in workplace      ✤   “Most marketers are dependent
    during their working life.          on digital communications...it
                                        must be extremely difficult to
✤   Age-related digital exclusion       understand large numbers of
    will diminish.                      consumers who, for rational
                                        reasons, have decided to remain
                                        offline.”
DDDMP 14.1 - The Digitally Excluded
Consumer - Options for Marketers

✤   “The future profile of those not
    connected to the Internet is       Four approaches for marketers:
                                       ✤
    likely to be based solely on the
    person’s socio-economic
                                       1.Ignore and do nothing
    status.”
                                       2.Become part of the solution
✤   “The new generation of
    digitally excluded will be those
    without mobile internet            3.Target a specific segment
    access.”
                                       4.Make all digital touchpoints
✤   Digital exclusion will become
    another deprivation factor.
fast.MAP Marketing GAP
fast.MAP Marketing GAP

     What do you think is the main purpose of the
                Data Protection Act?
fast.MAP Marketing GAP

     When a company asks for your contact details,
               describe your attitude
fast.MAP Marketing GAP

  When an organisations asks for permission to use your data,
   are you given enough choice about how it will be used?
fast.MAP Marketing GAP

If you are on Facebook, which of these statements do you agree with?
Truste cookie audit

    Website compliance with ePrivacy Directive (231 sites)
Conclusions



✤   Marketing risks being out of synch with the consumer

✤   The consumer does not look (or behave) like you!

✤   If your agency tells you something is right, ask for the evidence

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IDM Student evening 20 September 2012 by David Reed

  • 1. Looking for the digital consumer David Reed, editor, Journal of Direct, Data and Digital Marketing Practice 20th September 2012
  • 2. About DDDMP ✤ “Indispensable resource for senior marketing managers seeking awareness of new marketing concepts, strategies and applications from around the world.” ✤ Published quarterly, each issue usually comprises an editorial, 4-5 peer-reviewed papers, a best practice case study, a new technology briefing, a legal & regulatory update, 15 abstracts, and 3-4 book reviews. ✤ Personal subscription print and online for £124 ✤ Member benefit if you join the IDM.
  • 3. Issue 14.1 ✤ “An empirical investigation of social network influence on consumer purchasing decision: The case of Facebook.” ✤ “From web analytics to digital marketing optimization: Increasing the commercial value of digital analytics.” ✤ “The digitally excluded consumer - Options for marketers.”
  • 4. DDDMP 14.1 - The Case of Facebook ✤ “Facebook promotes a consumer-to-consumer approach, exploited by consumers to share experiences and create a common knowledge of products and services...provides ✤ An investigation into the extent managers a direct channel for communicating with clients through a business-to-consumer approach.” to which social networks Hypotheses: influence purchasing decisions ✤ Ease of use of FB influences role as support tool in decision- making. through a quantitative analysis. ✤ Ease of use has a direct influence on gathering information through this source. ✤ Usefulness of messages influences attitude towards using FB for ✤ Researches beyond usage into information about purchases. Facebook-mediated marketing ✤ Attitudes towards FB influence intention to use it as a support tool for purchasing decisions. communication. ✤ Enjoyment of FB influences perceived usefulness. ✤ Enjoyment influences attitude towards role as support tool for purchasing decisions. ✤ Enjoyment of FB influences behaviour in using it for this purpose. ✤ Ease of use has a direct influence on enjoyment.
  • 5. DDDMP 14.1 - The Case of Facebook ✤ Anonymous survey among ✤ “Managers could improve the students in Southern Italy, fun provided by pages by generating 187 responses. adding games, contest and applications.” ✤ Proved all hypotheses (except number 1) ✤ “Marketers would consider the link between a high level of ✤ “Users appreciate the presence enjoyment...for positively of firms/products...and take affecting consumer purchasing into account recommendations decisions.” and suggestions.”
  • 6. DDDMP 14.1 - From Web Analytics to Digital Marketing Optimization ✤ Reviews opportunities to better apply web analytics to improve ✤ “Adoption levels of [web digital marketing performance. analytics] are high, but usage of them remains surprisingly low.” ✤ Defines an approach to improve the value contributed ✤ “Majority not using by web analytics. fundamental web analytics approaches such as customer journey analysis and ✤ Describes techniques to set up a segmentation...despite the digital marketing optimization majority rating these as programme. highly/quite valuable.”
  • 7. DDDMP 14.1 - From Web Analytics to Digital Marketing Optimization ✤ Lack of resources and budget ✤ “Scope of web analytics should are significant barriers - for be broadened beyond its every $80 spent driving traffic, traditional focus on website $1 spent converting it. optimization to other forms of (Source: Omniture) digital media.” ✤ Companies with a structured ✤ Need for a continuous approach to conversion 2x more improvement process and likely to have seen large sales analysis methodology for increases. making improvements - Six Sigma, DMAIC. ✤ “Success depends on reducing inefficiencies in digital ✤ Select the right KPIs. marketing.”
  • 8. DDDMP 14.1 - From Web Analytics to Digital Marketing Optimization ✤ Reach, Act, Convert, Engage framework. ✤ “To increase adoption, web ✤ Covers all main measures analytics needs to be across the customer lifecyle at repositioned as an improvement different levels of reporting. process.” ✤ Ten tests of measurement design.
  • 9. DDDMP 14.1 - The Digitally Excluded Consumer - Options for Marketers ✤ “Clients and their agencies have differing views about the speed of migration online.” ✤ One-fifth of consumer are not ✤ Clients - 26% expect to increase online - 8.7 million people offline marketing budgets v Agencies - 9% expect increase ✤ Need to supplement digital marketing with analogue ✤ Clients - 26% expect to decrease offline marketing budgets v Agencies - 58% expect decrease
  • 10. DDDMP 14.1 - The Digitally Excluded Consumer - Options for Marketers ✤ “Majority are not digitally excluded, but digitally ✤ Age factor - 7.3 million indifferent or even digitally digitally-excluded over 55. disinterested.” ✤ Absence of PC in workplace ✤ “Most marketers are dependent during their working life. on digital communications...it must be extremely difficult to ✤ Age-related digital exclusion understand large numbers of will diminish. consumers who, for rational reasons, have decided to remain offline.”
  • 11. DDDMP 14.1 - The Digitally Excluded Consumer - Options for Marketers ✤ “The future profile of those not connected to the Internet is Four approaches for marketers: ✤ likely to be based solely on the person’s socio-economic 1.Ignore and do nothing status.” 2.Become part of the solution ✤ “The new generation of digitally excluded will be those without mobile internet 3.Target a specific segment access.” 4.Make all digital touchpoints ✤ Digital exclusion will become another deprivation factor.
  • 13. fast.MAP Marketing GAP What do you think is the main purpose of the Data Protection Act?
  • 14. fast.MAP Marketing GAP When a company asks for your contact details, describe your attitude
  • 15. fast.MAP Marketing GAP When an organisations asks for permission to use your data, are you given enough choice about how it will be used?
  • 16. fast.MAP Marketing GAP If you are on Facebook, which of these statements do you agree with?
  • 17. Truste cookie audit Website compliance with ePrivacy Directive (231 sites)
  • 18. Conclusions ✤ Marketing risks being out of synch with the consumer ✤ The consumer does not look (or behave) like you! ✤ If your agency tells you something is right, ask for the evidence