is an interactive media. It is involves media and attention and a call to action. Email is a great media.
- There are three things you want to do with customers 1st you have to generate awareness, branding, word of mouth & testimonials then
- To have customers stay on your site longer to:
- view more information
- view more ads
- buy more things
- get more brand exposure
You do this to gain Market Share. “You want the customer to stay that way they are not on another site.” If this is achieved it says you’re better because the competitor is just one click away. Best of all you can market to viewers based on their interests.
“Critical Strategy elements from direct-response perspective”
These all have to work together. You can’t send Aston Martin ads to a Camery driver.
Customer Lifetime Value
customer lifetime valueThe net present value of a future stream of net revenue from an identified customer.
What they are worth now and what they will be worth in the future.
Brand Loyalty: cheaper to keep. **Takes 2-3 times more money to get new customers.
With good customer relationship managment the life time valueof a customer will increase.
Targeted offers and product to customer interests!
One method of Retention is to hold with contracts and penalties for switching. You don’t want customers that hop on and off based on offers by competitors. Loyalty is important.
You can increase value to long-term customers thus increasing their attention and through making them happy you can get them to buy more products and greater value products.
Time: transferring emails or phone numbers and having to letting everyone know
Computers: transferring files, homepages, and favorites bookmarks
EBay or Amazon: losing your positive seller’s ratings
Microsoft new version: increased cost $$ for same program that does the same thing
Testing vs marketing research
Variations on price, color, banner ads.
To do a test you simply get the item get the targeting then get distribution Email List and run the test
– have your call to action (ad) then see which one works based on response (i.e. sales to measure)
*Marketing research is to find out what people are thinking
*Testing gets behind what people do, what they buy, at what price and from which exposure
-the internet is the only place to get quick response at maximum exposure.
- Standard practice
- Strategic question
- Tactical questions
Reasons for conducting a test are to find out:
- Design a test
- What market variables (price,etc)
- Type of test (a/b, control/A)
- Sample (pop, size)
- Establish test metrics
- Cutoff date
Execute and monitor results
Analyze and report test results
Make marketing decision *
-get demographic information and establish a database on them
Issues, are biases introduced with regular panel surveys, have their choices changed from the general population
* What decision are we trying to get, what data are you collection, from where?
**Data- purchase, census, associations, research firms, purchase data (customer transactions), surveys , focus groups, website click stream data , account data, cell center, customer inquiry
* Look at testing Processes
What is Data Mining? The analytic process and specialized analytic tools used to extract meaning from very large data sets.
The information won’t come together because of the human aspect of industry standards and the bureaucracy of the departments not wanting to come together
There is a hierarchy to customer-focused marketing strategies.
Information, Interaction, Transaction, Personalization, and Customization.
Each one requires more information about the customer, more data and the more specific data in the process. One must go through all company data to get one targeted message.
How is this profitable… atomization. This relates back to the customers mind as getting an offer based on what they want.
The way to get to know the customer in an internet marketing world is through data.