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Digital Marketing Final
Terms in this set (49)
Zero Moment of Truth (ZMOT)
- The moment when the prospect has seen the advertisement of a product (first stimulus), but before the moment where he or she sees it for real (first/virtual contact).
- Is the informational retrieval
What characterizes the consumer research process?
- Constant and their sources where they gather info changes (where they compare between a multitude of sources)
- B/c shoppers want to be more informed
What does the ZMOT measure?
- i.e. go for the actual sneaker brand or general "sneaker"
What is an example of the ZMOT?
- Parisian love super bowl ad - collection of moments of truth (can map through the search keywords of the person to summarize)
- Snickers campaign: plays on misspelling search words
Why was the snickers campaign so successful?
Cheap to buy misspelled key words (SEO)
Awareness about the product, even if the person doesn't like Snickers
What are PLAs?
Product list advertisements (includes standard prices and packages)
Why do PLA work?
takes advantage of the moment when someone searches for something on google
Are PLAs more effective than banner ads?
What are paid search ads?
What is CLV?
Customer lifetime value
What are the characteristics of CLV?
Holistic, integrated experience/ Omni channel
What is important to consider for attribution sales to offline and online marketing?
- understanding that important offline metrics & concepts are valuable for any online business
- research shopping behavior must be acknowledged
How do you measure the customer lifetime value?
Margin*Retention rate/ (1+discount rate - retention rate)
What does Lemon & Vorhoef say about the customer journey?
- Companies should optimize customer journeys, not just touch points.
- The customer experience is holistic: including the total experience: the search, purchase, consumption & after-sale phases (may involve multiple retail channels)
What are the three types of touch points?
1. Brand owned
2. Partner owned
What are the brand-owned touchpoints?
Managed by the brand (i.e. the facebook of a brand)
What are the Partner-owned touchpoints?
Jointly created by the brand and his partners/partner (i.e. with marketing agency)
What is a consumer owned touchpoint?
Not managed or influenced by the brand or a partner but solely by the customer
(i.e. when a customer thinks about his or her needs in the pre-purchase phase)
- This is the most important touchpoint at the post purchase phase.
What is showrooming?
Looking in store, buying online.
What is webrooming?
Looking online, buying online.
What are channels?
Communication and distribution
Focus on managing and optimizing the performance of each channel
- the design, deployment, coordination, and evaluation of the different channels through which the marketer acquires, retains and develops customers
What defines the ZMOT?
Search, price and distribution (the cores of marketing)
Integrating activities across channels to correspond (And analyze) to how consumers shop.
- The design, deployment, coordination and evaluation of the different channels through which the marketer acquires, retians and devlops customers.
A customer that searches in one channel and purchases in another
paid search ads & banner ads
What is the distribution breadth?
How easy it is to find an outlet that stocks the brand for the customer
1. How many outlets do you have?
2. How important are these outlets?
Product listing vs. adwords ads:
- Both have fees in the form of cost per click (CPC)
- PLA's allocates budget across products and AdWords across keywords
- PLA's target is focused for an individual product and AdWord's is focused on product keywords.
What is distribution depth?
Number of intermediaries between manufacturer and customer
1. How much of the product line is in distribution?
2. How prominently is it merchandised relative to competitors?
3. How well is it supported along the path-to-purchase? (i.e. availability of the live chat staff)
What are the considerations for a strong customer journey?
2) Path to purchase
3) Sales, velocity and profit
4) Brand & customer equity
What is the consideration for compliance?
Are both partners executing the desired strategy (logistics, assortment, product availability, pricing, promotion policies)
What are the metrics for compliance?
1. Return rate by retailer's customers
2. Bounce rate
3. Cart abandonment rate
What is the bounce rate?
Visitors leaving a single page without triggering other requests
What is the path to purchase?
Are both partners achieving satisfactory reviews and recommendations?
What are the metrics for path to purchase?
2. Cross-channel conversions
3. Cross-channel delivery or returns
What is the consideration for sales, velocity & profit?
Are both partners achieving satisfactory traffic, sales, market share and growth rates?
What is brand and customer equity?
Are the marketing strategies helping to retain valuable customers and build loyalty for the supplier and retailer brands?
What is the customer equity metric?
The total combined CLV's of all customers
What is the purpose for the paper, "Lemon & Verhoed (2016): Customer journey"?
- To bring together the research that doesn't exist on customer experience, to understand its origins and roots, to place it in context, and to identify critical gaps in our understanding.
- Through this process, aims to develop a stronger understanding of the customer experience in an era of increasingly complex consumer behavior.
What is the relevance of the paper, "Lemon & Verhoed (2016): Customer journey"?
- Customer experience has become of of the major buzzwords in marketing
- Focus on metrics such as customer lifetime value (CLV)
- Consumers communicate with companies through a myriad of touch points in multiple channels and media (Resulting in more complex customer journeys)
What are the challenges in optimising customer experience?
1. Firms are confronted with accelerating media and channel fragmentation and omni channel management expectations.
2. Customer experiences are now more social in nature, where peer customers are influencing experiences as well.
3. Firms now have less control over the customer experience and the customer journey, resulting in behaviours such as show-rooming.
4. Firms are required to integrate multiple business functions
Definition of the customer experience:
1. Subjective, internal consumer responses and behavioral responses evoked by brand-related stimuli that are a part of a brand's design.
2. Categorized along the lines of the retail mix: price, promotion, etc.
3. Total customer experience is multidimensional construct that involves cognitive, emotional, behavioral, sensorial, and social components.
4. An experience may also relate to specific aspects of the offering such as the brand or technology
5. Consists of the individual contracts between the firm and the customer at distinct points in the experience, called touch points. A collection of these touch points in multiple phases of a customer's decision process or purchase journey build up the experience.
What is the conclusion of Lemon & Verhoef?
None, it is a collection of research
What are the 3 purchase phases?
What are the three kinds of touch points?
What is the importance in recognizing the customer owned perspective of touch points?
- Recognizing the customer's role in the co-construction of the experience
- Culmination of a customer's interaction with other actors in a broader ecosystem.
What are the three external influences that can impact someone's customer's experience?
1. External dynamic environment of the consumer
2. Extreme crisis
3. Economic situation
What are the five types of customer experiences?
Social-identity (Relate) experiences
Important developments in and contributions to customer experience research:
1. Customer buying behavior process models
2. Customer satisfaction and loyalty
3. Service quality
4. relationship marketing
5. Customer relationship management
6. Customer centricity and customer focus
7. customer engagement