Omnichannel Marketing Exam 1 (Chap 1-6)

Retain/Convert (the buyers journey)

read your personalized emails, on your website looking at other products, read reviews, comparison shopping`

WHAT IS "BIG DATA"

- Creation of large - up to date - computerized file - Can include current, past, or potential customers - Might be focused on demographic / purchase behaviors - Development of customer profile results - It should enable one to generate direct marketing mailers /e-mails targeted at specific customers based on their buying behavior. - Can be used to collect customer information from your Web site - It should be organized to enable you to search the database using queries. - It should be compatible with database software that will enhance analysis.

Characteristics of direct marketing

- Customer/prospect databases that make one-to-one targeting possible - A view of customers as assets with lifetime value - Ongoing relationships and affinity with customers - Data-based market segmentation - Research and precise experimentation (testing) - Benefit-focused direct response advertising - Measurement of results and accountability for costs - Interactivity with a customer on a personalized, individualized basis - Multichannel fulfillment and distribution

Customer Relationships (Components of direct marketing)

- Direct marketing relies on strong relationships with customers - The goal is creating mutually beneficial long-term bonds between the customer and the company - Use CRM strategies

Marketing success depends on...

- Having more knowledge about your customers and prospects than your competition - Having a well thought out, actionable plan

Constitutive Definition (Measurement - Key Terms)

- Statement of the meaning of the central idea or concept being measured - How do I know when someone is happy, angry, loyal?

Multichannel Fulfillment (Components of direct marketing)

- The customer selects the channel to communicate AND shop - Consumers want choices!

Ordinal Scales

- The order of the values is what is important - do not know the exact difference between the values - Usually used to measure abstract concepts/constructs - Can use mode or median but NOT mean

Database (Components of direct marketing)

- This is the foundation of direct marketing - One of the most important tasks is capturing customer responses and storing them in a database - This information is used for finding and connecting with customers - Direct marketers don't just sell - they create customers!

Nominal Scales

- Used for labeling variables that don't have a quantitative value - Mutually exclusive - No overlap - Mode is valuable but not media or mean

Interval Scales

- We know the order AND the exact difference between values - Time, temperature - The do not have a "true zero" - Example: There is no such thing as no temperature - we can have zero degrees but we would still have a temperature

Ratio Scales

- We know the order, the exact value between units and there is an absolute zero - Can apply all forms of descriptive statistics - Example - height and weight

Operational Definition (Measurement - Key Terms)

- Which observations will be used to measure - Is the bridge between theory and "real world"

Personalizing the Buyer's Journey with Tech

-Leveraging consumer technology is one of the most important Omnichannel retail trends in 2019. -Mobile technology, in particular, has enabled retailers to communicate with customers in ways that were once unheard of. Retailers can now push offers, using beacon technology, to consumer smartphones when they are near your store's physical location or even when they're shopping in a particular aisle.

Pro's of Direct Marketing

-helps to develop a good database -people see themselves as unique -tests campaign effectiveness -cost effective -targeted

Con's of Direct Marketing

-negative, sales orientated reputation of direct marketing -enjoyment of visiting retail stores -hesitation of buying goods not seen, touched or tried -privacy concerns -clutter of direct marketing messages -lack of prestige of direct marketing media

Develop a Omnichannel Contact Strategy

1. Build a customer journey map for your key segments. 2. Establish a clear creative development process. 3. Develop a response management implementation plan. 4. Personalization management is critical. 5. Automation—look at nurturing and triggered messaging plans. 6. Consider your execution and production management. 7. Test and learn.

The Questionnaire Design Process

1. Determine survey objectives, resources, and constraints 2. Determine the data-collection method 3. Determine the question response format 4. Decide on the question wording 5. Establish questionnaire flow and layout 6. Evaluate the questionnaire 7. Obtain approval of all relevant parties 8. Pretest and revise 9. Prepare final copy 10. Implement the survey

Direct marketing vs Traditional marketing

1. Direct selling to individuals with customers identifiable by name, address and purchase behavior. 2. Products have the added value of distribution direct to the customer 3. The medium is the marketplace 4. Marketing controls the product through delivery 5. Advertising used to generate an immediate transaction 6. Repetition of offers, promotional messages, toll free numbers, and web addresses are used 7. Customers feel a high perceived risk

Criteria for a good questionnaire: What to consider?

1. Does it provide decision-making information? 2. Does it consider the respondent? 3. Does it meet editing and coding requirements?

Direct marketing objectives

1. Generate traffic 2. Build awareness/image 3. Generate/qualify leads 4. Penetrate new markets 5. Reactivate old accounts 6. Upgrade current accounts 7. Cross-sell products/services 8. Build long-term (lifetime) value of customer

Advantages of secondary data

1. It can help to clarify or refine the issue or problem. 2. Might provide a solution to a research problem. 3. Might provide primary data research alternatives. 4. It can alert the researcher to other problems. 5. It provides background information enhancing research credibility. 6. Usually less expensive and faster to gather.

Disadvantages of secondary data

1. Lack of Availability - Might not be any available data on your topic. 2. Lack of Relevance - Data might be outdated. 3. Inaccuracy - Might be biased - intentionally or unintentionally. - Questionable source Insufficiency. 4. Not enough information exists.

Traditional marketing vs Direct marketing

1. Mass selling with buyers identified as broad groups sharing common demographic and psychographic characteristics 2. Product benefits do not include distribution to the customer's door 3. The retail outlet is the marketplace 4. The marketer typically loses control as the product enters the distribution channel 5. Advertising has a cumulative effect - brand image, awareness, loyalty and recall 6. Repetition of offers and promotional messages are used over time 7. Customers feel less risk

Top Omni-channel trends for 2019

1. Omni-Device 2. Personalizing the Buyer's Journey with Tech 3. Customer Service 24/7 4. Painless Checkouts 5. Fulfillment Flexibility

Strategies begin with market focus

1. Positioning is an important part of market focus 2. Positioning targets a product for specific market segments 3. The same product can be positioned in many different ways

The Direct and interactive marketing model

1. The marketer sends out a communication 2. The customer receives the communication and responds directly to the organization via multiple channel options 3. The customer response is processed, fulfilled and delivered directly to the customer 4. Data is collected 5. The process starts all over again

Disadvantages of primary data

1. Time-consuming to carry out own research 2. More expensive than collecting secondary data - need your own equipment, staff etc. 3. A researcher may be subjective in their selection of data = may choose data that fits their hypothesis

Advantages of primary data

1. Unbiased - You are not using someone else's viewpoint 2. Have control over study - Can be sure the study is reliable because you did it yourself 3. Up to date as data is collected at the time of your study = you know data is not outdated 4. Tailored exactly for the study = you asked questions/observed based on what you needed to know

Strategy: Begin With Three Key Questions

1. Where to focus greatest effort and why? 2. What are the company's greatest capabilities or strengths? 3. Do the company's core capabilities suit their position?

Geographic Information Systems - GIS:

A computer-based system that uses secondary and/or primary data to generate maps that visually display various types of data geographically. How is it used in marketing? - Competition Analysis - Price SettingoMarket Segmentation - Distribution of Product - Improve Outreach - Mailers to Customers and Event Marketing - Profile and Segment Customers - Identify Ideal Locations for a Business

direct marketing

A database-driven interactive process of directly communicating with targeted customers or prospects using any medium to obtain a measurable response or transaction via one or multiple channels

Scaled response

A type of closed-ended question in which the response choices are designed to capture the intensity of the respondent's feelings.

Multiple-choice

A type of closed-ended question that asks the respondent to choose among several options.

Dichotomous

A type of closed-ended question that asks the respondent to choose between 2 options

Decision Support Systems - DSS:

An interactive, personalized information management system designed to be initiated and controlled by individual decision makers.

The Unit Margin

Average selling price of one pair of jeans: $88 Cost of goods sold & other variable costs: - 22 Unit Margin: = $66

Breaking Even and Making a Profit

BEV in units sold = Fixed Costs in Dollars/Unit Margin (or Profit) per sale

Cross-channel/Multi-channel/Omni-channel what's the difference

Cross-channel marketing follows the users' activity to increase conversion. Multi-channel marketing allows users to get exposed to your products through multiple devices, or channels, no matter where they are. A multi-channel marketing campaign can ensure your products and services are readily available. Omni-channel marketing combines the essence of cross-channel and multi-channel marketing. It provides a seamless integration and marketing experience between all channels that a user or customer has used to interact with your company. Omnichannel marketing can provide an all-inclusive solution for engaging customers while driving revenue and loyalty.

Secondary data

Data that has been previously gathered. Examples of secondary data? - Sales Data (internal) - Annual Reports (internal) - Census Bureau Data (external) - Case Studies (external)

Direct Communication 1:1 (Components of direct marketing)

Direct Marketers want to interact with customers on a one-to-one basis.

Measurable Response (Components of direct marketing)

Direct marketing can always be measured by the response of the target market. Strong calls-to-action are often used.

Customer Service 24/7

Even though keeping the doors of a physical location open 24/7 is not possible for many businesses, it is feasible to offer 24/7 online shopping, ordering, and customer service. When aligning your retail strategy with Omnichannel retail trends in 2019, consider enhancing customer service with 24/7 accessibility. Google reports that searches for "24/7 customer service" have grown over 400% in the past 4

Rule (Measurement - Key Terms)

Guide, method or command: - Make it clear - Make it specific - Scale of 1-10

Questionnaire Design - Best Practices

Include white space to make answers clear and to help increase the response rate. It makes it easier to circle or check the correct answer w/ the mark accidentally including the answer above or below. - Open-ended questions: the space for the response should be big enough to allow respondents with large handwriting to write comfortably in the space. - Closed-ended questions: line up answers vertically and precede them with boxes or brackets to check, or by numbers to circle, rather than open blanks. Use larger font size (e.g., 14) and high contrast (black on white).

Multiple Media (Components of direct marketing)

It does not depend on a single medium. Three categories: High-tech - internet, email, text, SEO, etc. Electronic - telemarketing, infomercials, etc. Print - newspapers, catalogs, magazines, etc

Median

Its the middle number bro: put the numbers in order and its the middle. If there are two of them then add them together and divide by 2

Direct Marketing Basics

List/Media (40%) Offer (20%) Creative (40%) - Layout/Format (15%) - Copy (15%) - Timing (10%)

Primary data

New data gathered to help solve the problem under investigation. Examples: 1. Questionnaires 2. Observations 3. Experiments

Omni-Device

Omnichannel retail trends in 2019 all come back to customer convenience. So if it's more convenient to use multiple channels for a single purchase, that's the path shoppers will take. According to Google, about 85% of online shoppers start a purchase on one device and finish on another.

Acquire (the buyers journey)

On social media (facebook, twitter, LinkedIn, Instagram). targeted web CTA's

Important equations

Profit = Gross Revenue - Cost of Goods Sold Profit = Gross Revenue * Profit Margin

Fulfillment Flexibility

Providing your customers with the connected shopping experiences they expect is key to mastering Omnichannel retail trends in 2019. With expectations rising, retailers need to adjust their order fulfillment strategies to keep up with these demands. Options such as buy online pick up in store, ship-from-store, and two-day shipping are all growing trends taking over the retail industry. It's important to provide easy returns on any channel as well.

Return on Investment (ROI)

ROI = (Profit - Investment) / Investment

Lifetime value (LTV)

Recency - How recently did the customer purchase? Frequency - How often do they purchase? Monetary Value - How much do they spend?

Construct (Measurement - Key Terms)

Specific Types of concepts that exist at higher levels of abstraction: 1. Usually not based on empirical evidence 2. Hard to measure - abstract 3. Researchers create scales to try to measure constructs - Examples: Happiness, Satisfaction, Depression, Achievement

The customer lifecycle

Starts: Advocacy, Awareness, Knowledge, Consideration, Selection, Buying, Satisfaction, Retention/Loyalty.

Engage (the buyers journey)

Subscribe to email newsletter, download app, click on targeted ads, visit your website

Big data analytics

The accumulation and analysis of massive quantities of information Big Data offers a firm: - Deeper Insights - you can see everything - not just one aspect - Broader Insights - looks at all of the data Difficulties: - what is relevant vs what is not - getting through/navigating the data

Mean

The average of the numbers: a calculated "central" value of a set of numbers To calculate: just add up all the numbers, then divide by how many number there are

Closed-ended questions

There are three types of close-ended questions: 1. Dichotomous 2. Multiple choice 3. Scaled-response

Open-ended questions

Two types - probing and non-probing Probing - interviewer encourages the respondent to elaborate 1. Proactive - planned ahead of time - "what were the factors that influenced you to buy your last car?" probe - " which of those factors is most important? 2. Reactive - based on the response - "what makes you say that?" 3. Spontaneous

Painless Checkouts

When looking at Omnichannel retail trends for 2019, an innovative checkout process is high on the list. Retailers are realizing how crucial it is to deliver fast and efficient online and in-store checkout processes for their customers.

Advocate (the buyers journey)

Write a review, share with a friend, participate in a rewards program, social sharing.

Direct Marketing purpose

allows you to generate a specific response from targeted groups of customers. It's a particularly useful tool for small businesses because it allows you to: focus limited resources where they are most likely to produce results.

Mode

most frequently occurring number

Measurement (Measurement - Key Terms)

the process of assigning a number or label to persons, objects or events: - Attributes not the object - Age, income, attitudes, brand loyalty