Figure 9.2 A summary of an effective process of online relationship building

Online Buying Process What is the typical online and offline purchase process? How can online marketing communications support the purchase process? Searching behaviors Directed info seeker Undirected info seeker Directed buyer Bargain hunters Entertainment seeker

Online Buying Process Differences btw B2C and B2B Buyer Behavior – Market structure – Nature of the buyer unit – Type of purchase – Importance of Trust

Figure 9.8 An example of effectiveness measures for an online ad campaign

Which are the ranking factors affecting position In Google SERPs? On-page optimization – Document meta data – Document content – Creation of new pages Off-page optimization – Link-building External links – ‘Links In’ – ‘Backlinks’ – ‘Inbound links’ AND Internal links Behavioural – Popularity of sites from toolbar Google’s search spam filters

Online Marketing Com-Paid Search Factors affect returns Distribution of daily budget Amount bid (Max CPC) * Clickthrough rate * Creative quality including creative testing * Match types especially negative matches Use of content network Time-of-day (day parting) Landing page quality Click fraud! * In Google AdWords, Live Search and Yahoo! Quality Score especially important

Online Marketing Communication Online PR Maximizing favorable mentions of an organization, its brands, products, to web sites on 3rd-party web sites Communication with media online Link building Blogs, podcasting and RSS Online community and social networks Marketing how your brand is presented on 3rd party sites Creating a buzz-online viral marketing

Figure 9.11 Online PR categories and activities

Affiliate marketing Figure 9.12 The affiliate marketing model (note that the tracking software and fee payment may be managed through an independent affiliate network manager) Online Marketing Communication

Interactive Advertising What is media multiplier/halo effect? Purpose of Interactive Advertising – Delivering content – Enabling transactions – Shaping attitudes – Soliciting response – Encouraging retention Online Marketing Communication

Media planning – What’s the optimum mix of online/offline advertising? Ref. p.520, table 9.2 marketing – Read the Mini Case Study 9.5 – What are the major challenges of marketing? – What’s opt-in options for marketing? Viral marketing – achieve marketing objectives through self- replicating viral processes, analogous to the spread of pathological and computer viruses. – Three important factors Creative Material Seeding—Find the starting point Tracking Online Marketing Communication

Figure 9.14 TopTable (

Customer Retention Management Goals of Customer Retention – Retain customers – Keep customers using online channel – Satisfaction  loyalty  profitability – How to keep customers satisfied? – Experience from Dell—ref. table 9.4 on p. 528 Personalization and mass customization – Mass customization—deliver customized content to groups of users through web or – Collaborative filtering—deliver specific info and offers based on the interests of similar customers

Online Community Online Community becomes important to the success of the business Various 3rd party online communities and cooperation sponsored communities have been established in the recent years. B2B, in many cases B2C, communities are commonly built based on – purpose-people who do the similar jobs or achieve a similar objectives – Position – Interest – Profession Customer Retention Management

Figure 9.16 UTalkMarketing example of a professional online community Source: the UK’s leading community website for client side marketers

Customer Retention Management Online Community Do we need an online community? How to build one? Questions to be asked before start a community Typical problems – Empty community – Silent community – Critical community

Customer Retention Management Managing Customer activity and value – Increase # of new users – Increase % of active users – Decrease % of dormant users – Decrease % of non-activated users Retention metrics are often used – Repeat-customer conversion rate – Repeat customer base – # of transaction per repeat customer – Revenue per transaction of repeat customer

Figure 9.17 Activity segmentation of a site requiring registration

Customer Retention Management Lifetime Value Modeling Total net benefit that a customer or a group of customers will provide over their total relationship with the company What can LTV be used for? – Ref. p. 535

Excelling in E-Commerce Service Quality Improving online service quality – Tangible—easy of use and visual appeal of the site – Reliability—availability of the site – Responsiveness—speed of page load, speed of responses to questions, if any – Assurance—quality of response, privacy and security, etc. – Empathy—personalized interaction, context, task relevant help and assistance, e.g., during the purchase process

Customer Extension The goal is to increase the lifetime value of the customer What does “Focus on share of customer, not market share” mean ? (ref. p. 540, 2nd paragraph) Advanced online segmentation and target techniques – Identify lifetime group – Identify profile characteristics – Identify behavior in response and purchase – Identify multi-channel behavior – Tone and style preference

Figure 9.20 Customer lifecycle segmentation

Technology Solution for CRM Technologies in use – Database is the core of the CRM – Web interface becomes the main stream – s and workflow systems are commonplace – Customer self-service is the trend Types of CRM Applications – Find more info about products/service – Place an order – Receive post-sales service Integration with back-office systems – How to link with the backend legacy system is a big challenge

Figure 9.22 An overview of the components of CRM technologies

Learning outcomes Outline different methods of acquiring customers via electronic media Evaluate different buyer behaviour amongst online customers Describe techniques for retaining customers and cross- and up-selling using new media.

Management issues What are the practical success factors digital media need to make customer acquisition more effective? What technologies can be used to build and maintain the online relationship? How do we deliver superior service quality to build and maintain relationships?

Activity Read the Econsultancy interview on pp and visit Answer these questions – What did Warner Breaks (WB) found about the online marketing? – What did they do to attract and retain customers? – What special about the older generation regarding online transactions? – Do you feel that their website is well-designed for the targeted audience?

E-CRM – Activity What benefits can e-CRM produce? Ref. p. 487 What’s Wikinomics and how can a company take advantage of it to enhance CRM? Ref. p. 488 Box 9.1 What is permission marketing? Ref. p.488 What is customer profiling? Ref. p.490 What is IDIC? – Identification, differentiation, interactions, and customization