Marketing 4680 Exam 1

How social media impacts the purchase stage

- enable customers to purchase directly from posts - these are referred to as Shoppable Posts. - Influencer marketing is another social media strategy that impacts the Purchase stage - discount codes and flash sales promotions on social media can also drive purchases

How Social Media Impacts the retention Stage

- social media has transformed customer service and support - Reward programs and exclusive content for followers can also enhance retention. - by engaging with customers and fostering a sense of community on social media,businesses can strengthen their relationships with their customers

Changing customer expectations in DCX

As customers become accustomed to technology, their expectations rise. They now expect personalized, omnichannel, convenient experiences

CES

CES = (Number of Customers Reporting Low Effort / Total Number of Customers) * 100

CSTAT

CSAT = (Number of Satisfied Customers / Number of Survey Responses) * 100

emotional connection

CX builds emotional bonds between customers and brands, increasing customer lifetime value.

Churn Rate

Churn Rate = (Number of Customers at Start of Month - Number of Customers at End of Month) / Number of Customers at Start of Month Calculation

Shifts in business strategies in DCX

Companies have adapted strategies to focus more on customer data, omnichannel presence, and personalization. Amazon's recommendation engine is an example of using data analytics to improve DCX.

impacts of social media in the awareness stage

1. Social media users discover new products and services 2. Influencers and user-generated content can increase brand awareness 3. Targeted advertising on social media is effective

How social media impacts the consideration stage

1. Social proof and reviews 2. Engaging content and storytelling 3. Conversational marketing

DCX has evolved dramatically 3 key forces:

1. Technological advancements 2. changing customer expectations 3. shifts in business strategies

Sessions & Users

A session is the period during which a user is actively engaged with your website, app, etc., within a given time frame. The user indicates a unique visitor who has initiated at least one session during the date range.

Customer Lifetime Value

Loyal, returning customers spend more with a brand over time. My favorite clothing retailer engages me through emails and new collections so I purchase regularly from them.

Customer interviews and surverys

Direct communication with your customers can give you insights that you might not find elsewhere. You can ask about their needs, preferences, and challenges to better understand who they are and what they want.

Technological advancements in DCX

E-commerce boom, social media, mobile apps, AI, VR, etc. have enabled more advanced and personalized customer experiences:

Net Promoter Score (NPS)

This measures customer loyalty and their willingness to recommend your company to others. It's calculated based on responses to a single question: 'On a scale of 0-10, how likely are you to recommend our company/product/service to a friend or colleague?'

Customer Effort Score (CES):

This measures how much effort a customer has to exert to get an issue resolved, a request fulfilled, a product purchased/returned, or a question answered. The lower the effort, the better.

Customer Retention Cost (CRC):

This measures how much money a company spends to retain an existing customer. This includes costs of promotional offers, customer service, and any other expenses related to maintaining the customer relationship.

First Contact Resolution (FCR):

This measures the percentage of customer issues that are resolved in the first interaction. High FCR rates typically correlate with high levels of customer satisfaction.

New vs. Returning Users

This metric helps you understand the proportion of your users who are new vs. those who have visited your site before. Both categories of users are important, and this metric can help guide strategies to attract new users and retain existing ones.

Customer Lifetime Value (CLV):

This predicts the net profit attributed to the entire future relationship with a customer. It's an important metric that helps companies determine how much they should invest in retaining a customer.

churn rate

This predicts the net profit attributed to the entire future relationship with a customer. It's an important metric that helps companies determine how much they should invest in retaining a customer.

Organic Search

This reflects visitors who arrived via an unpaid search result. These users found your website after using a search engine like Google or Bing

Churn Rate:

This shows the percentage of customers who stop doing business with a company during a given period. A high churn rate could indicate customer dissatisfaction.

Direct

This shows visitors who arrived directly without a traceable referral source, suchas typing your URL into their browser or using a bookmark

Google Analytics: Reports snap shot

This snapshot gives you a high-level overview of yourwebsite or app traffic, including the number of users, sessions, and page views. It's likethe pulse of your website or app, offering you a quick glance at the overall health of yourdigital presence.

Website analytics

Tools like Google Analytics can tell you a lot about your customers, such as how they find your site, what pages they visit, how much time they spend, etc.

Google Analytics

a free tool that allows you to understand your audience, track how visitors navigate your website, and gain insights into their behavior

Customer persona (=buying persona, = user persona)

a semi-fictional representation of an ideal customer based on market research and real data about existing customers. It's like creating a detailed profile of a character who embodies the characteristics of your typical customer.

US companies lose ________ due to poor customer service

billions annually

DCX is a ______________ ______________ as customers have numerous options. By designing positive digital experiences, brands can gain customer loyalty and stand apart.

competitive advantage

DCX helps with.....

customer retention customer lifetime value brand reputation

In Today's current state of digital customer experience......

customers expect seamless omnichannel experiences with personalization. Brand interactions must be consistent across devices, locations, and channels.

Customer persona guide ___________________

decision making

Customer persona help __________________

humanize

customer retention rate

let's say a company spent $50,000 on customer support personnel, $20,000 on CRM software, $10,000 on a loyalty program, and $5,000 on upselling initiatives in a year. If the company had 1,000 customers that year, the CRC would be ($50,000 + $20,000 + $10,000 + $5,000) / 1,000 = $85 per customer.

quantitative data

numerical or statistical information that can be measured or counted. Examples in customer experience metrics include Customer Satisfaction Score (CSAT), Net Promoter Score (NPS), churn rates, retention rates, and more. These metrics provide hard numbers that help measure aspects of customer experience.

Digital consumer behavior

the cornerstone of creating effective marketing strategies and delivering superior customer experiences in the digital age - aid in predicting buying habits by understanding patterns in your customer's online behavior

DCX (Digital customer experience) focuses on....

this focuses on the entire journey a customer takes with a brand digitally, and all the interactions that shape their perceptions, satisfaction, and loyalty toward the brand. - it is not limited to just the purchase transaction but encompasses every interaction from the initial brand awareness and research to post-purchase and service.

Qualitative data:

to non-numerical information that is usually descriptive and more difficult to measure. It includes customer reviews, feedback, comments, interviews, etc. While this type of data may seem less straightforward, it provides deep insights into customer behavior, emotions, perceptions, and expectations.

word-of-mouth marketing

positive CX leads to voluntary recommendations of the brand to others

Digital customer experience (DCX)

refers to the totality of interactions and touchpoints a customer has with a brand across digital platforms and channels. Includes websites, mobile applications, social media, online ads, email marketing, and any other digital touchpoint.

To create accurate and useful personas, you need to collect ___________ ___________ about your customers.

relevant data

Google Analytics: Life Cycle

reports represent a more holistic and macro perspective on your data as it track the entire customer journey from acquisition to retention. It's divided into four main sections - acquisition - engagement - monetization - retention

Google Analytics: Real-Time

reports show you data about your website or app traffic as it happens - in real-time! You can see the number of users currently on your site, their geographic location, and what pages they are viewing. It's especially useful to monitor the immediate effects of social media campaigns or during product launches

Pageviews & Unique Pageviews

represents the total number of pages viewed. Repeated views of a single page are also counted. Unique Pageviews, on the other hand, aggregate pageviews that are generated by the same user during the same session, giving you a clearer idea of how many times your content was viewed.

brand advocacy

satisfied customers become brand advocates generating word-of-mouth marketing

Customer persona represent ______________ ____________ ______________

significant user groups

The key components that make of DCX are......

usability functionality design content interaction reliability personalization consistency

Positive Impact of CX on Business outcomes

· Increased customer loyalty · Higher satisfaction · Positive word-of-mouth · Improved customer retention · Enhanced brand image

Negative Impact of CX on Business outcomes

· Lost customer loyalty · Lower satisfaction · Negative word-of-mouth · Increased customer churn · Damaged brand reputation

Strategies to enhance brand equity via CX

· Loyalty programs with tiered rewards · Engaging social media experiences · Consistent omnichannel CX across touchpoints · Promoting user-generated content from brand advocates

CES (Customter Effort Score)

· Measures ease or difficulty for a customer to get an issue resolved. Useful to identify pain points in CX.

Consistency

· Providing a seamless and unified experience across all digital channels. For instance, coherent brand messaging and visuals across website, apps, ads, and social media.

Personalization

· Tailoring digital experiences to customer preferences and behavior. Examples include personalized emails, product suggestions, and targeted promotions based on data and analytics.

reliability

· The consistency and dependability of digital platforms. Fast load times, stable performance, and secure transactions characterize reliability.

Functionality

·How well the digital channels and touchpoints work and deliver on their intended purposes. ex. If a banking app reliably allows users to transfer funds without errors or bugs

Cstat

how many people responded a certain #/total number of responses

Brand Reputation

Positive or negative word-of-mouth shapes brand perception. After poor customer service on Twitter, I felt less inclined to shop from that retailer again.

Customer retention

Satisfied customers are less likely to churn and will continue using the services of a brand with good DCX. For example, I continue booking hotels on a travel site that provides a seamless booking experience.

social media analytics

Social media platforms can provide a wealth of information about your customers, from their demographics to their interests and online behaviors.

NPS (Net Promoter Score)

Measures customer loyalty and likelihood to recommend a brand. Calculated by subtracting % of detractors from % of promoters. A core CX metric.

CSAT (Customer Satisfaction Score)

Measures customer satisfaction with a recent interaction. Captured via surveys and ratings. Provides feedback on specific touchpoints.

NPS

NPS = % Promoters - % Detractors

Interaction

The engagement between customers and the brand across digital platforms. This includes responses on social media, FAQ bots, online support avenues, and more. ex. Prompt and helpful responses indicate positive interactions.

Stages of the journey

These are the key phases that a customer goes through in their interaction with your brand. They typically include Awareness, Consideration, Purchase, Retention, and Advocacy.

Touchpoints

These are the points of interaction between the customer and your brand. These could include your website, email communication, social media, or in-person interactions.

bounce rate & exit rate

These metrics give insights into visitor engagement. Bounce rate is the percentage of visitors who navigate away from your website after viewing just one page. A high bounce rate could indicate that your site's entrance pages aren't relevant to your visitors. Exit rate, on the other hand, is the percentage of exits from a page, signifying the last page users visit before they leave your website. This can help you identify which pages might be causing users to leave.

Acquisition metrics (Channels, Source/Medium, Referrals):

These metrics provide information on how your users are arriving at your site. Channels refer to the paths that users took to land on your site (organic search, direct, social, etc.). Source/Medium describes the source (Google, Facebook, etc.) and medium (organic, CPC, referral, etc.) of your traffic. Referrals indicate visits to your site from sources other than search engines

Emotions

This element maps the customer's emotional state at each touchpoint or stage of the journey. It helps us understand how the customer feels about their interactions with the brand and identifies areas that need improvement.

Customer Satisfaction (CSAT):

This gauges how satisfied customers are with your product or service. It's typically measured by asking customers to rate their satisfaction on a scale, usually from 1 (very dissatisfied) to 5 (very satisfied).

Market Research

This includes studies or reports about your industry, competitors, or target audience. These can provide you with valuable insights into the larger trends and patterns that your personas should reflect.

Social

This includes visitors who come from social networks like Facebook, Twitter, Instagram, or LinkedIn.

Opportunities for improvement

This is a critical component that identifies areas where the customer's experience could be enhanced. It allows us to prioritize actions that would make the most significant impact on customer satisfaction and loyalty.

Average time on Page

This is the average amount of time users spend on a specific page. A longer average time on the page could indicate more engaging content

Average session duration

This is the average length of a session. The longer the session duration, the more engaged the user is likely to be. It's crucial, however, to note that session duration can be influenced by various factors, including your site's design and the type of content you offer.

customer persona

This is the characterization of your customer based on the customer persona you've built. This can help personalize the journey map to the needs and desires of your target audience.

______ of buyers willing to pay more for a good experience

86%

What you need for accurate persona

1. Market research 2. Customer interviews and surveys 3. Social media analytics 4. Website analytics

journey mapping has several key steps

1. define persona goals 2. map out touch points 3. identify moments of truth 4. optimize the journey

elements of customer persona

1. demographic 2. psychographic 3. customers' goals and motivations 4. customer's challenges and pain points 5. preferred channels of 6. communication

Advantages of knowing Digital consumer behavior

- you can predict when they are most likely to make a purchase, what products they're interested in, and even how much they're willing to spend. - enables personalized marketing. Customers today expect personalized experiences. By knowing your customer's preferences, needs, and behavior, you can provide them with tailored product recommendations, personalized offers, and targeted advertising. - Creating better customer experiences. When you understand how your customers behave online, you can optimize your website, app, or any other digital touchpoint to cater to their preferences and needs, providing a more enjoyable and seamless experience. - can contribute to business growth and loyalty.

The 4 parts of creating persona

1. Data Collection: This involves gathering data from the sources mentioned above. This data could include demographic information, behavioral patterns, motivations, and goals. 2. Data Analysis: This involves identifying patterns and commonalities in the data. For example, you might find that a significant portion of your customers are millennials who primarily engage with your brand through social media. 3. Persona Development: Here, you create distinct personas based on the patterns you've identified. Each persona should be a clear, vivid representation of a significant segment of your user base. 4. Persona Implementation: Finally, you use these personas to guide your decisions, from product development to marketing strategy.

what comprises a customer persona?

1. Demographics: This could include age, gender, income level, education level, job role, etc. It helps in understanding who the person is. 2. Behavior Patterns: This includes online habits, preferred social media platforms, purchasing habits, etc. It helps in understanding how the person behaves. 3. Motivations: This can encompass their wants, needs, and problems they are trying to solve. It helps in understanding why they behave the way they do. 4. Goals: This outlines what the person aims to achieve, both short-term and long-term. It helps in understanding what drives their actions.

why is CLV crucial for businesses

1. Guides Strategic Decision-Making 2. Assists in Segmenting and Targeting Customers 3. Helps Determine Marketing Budget Allocation 4. Helps in Managing Customer Relationships for Profitability

Steps to calculate CLV

1. Identify the Average Purchase Value 2. Calculate the Average Purchase Frequency 3. Determine the Customer's Average Lifespan 4. Calculate CLV

benefits of creating customer journey maps.....

1. allow for enhanced understanding of customers 2. aid in improving customer engagement 3. help uncover hidden opportunities 4. assist in optimizing resources 5. they contribute to delivering a superior customer experience

the five primary elements we include in customer journey map

1. customer persona 2. stages of the journey 3. touchpoints 4. emotions 5. opportunities for improvement

Content

The quality and value of information presented across digital channels. Content should be engaging, relevant, and personalized when possible. ex. · personalized product recommendations based on past purchases.

usability

The simplicity and ease with which customers can navigate and utilize digital touchpoints. ex. an e-commerce website with intuitive navigation, well-organized categories, and seamless checkout

Design

The visual aesthetics and layouts of digital platforms focused on user-friendliness and intuitiveness. ex. A visually appealing website with clear CTAs and consistent branding

Positive DCX

______________ __________ makes customers more likely to feel satisfied and continue engaging with the brand - decreases chances of them switching to competitor brands who offer similar products/services - DCX can be a differentiating factor that sets brands apart in a competitive market

traditional marketing

is company-centric, focused on broadcasting messages to consumers to sell products and services. fosters two-way communication, building stronger customer relationships and loyalty - relies on one-way mass communication methods like print ads, TV commercials, and billboards. ex. coke TV commercial, Starbucks mobile app providing personalized offers based on purchase history -drawbacks: an impersonal, scattershot approach that can be expensive and inefficient