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Best Practices in Digital Marketing:
Are they always best?
6th September 2012, Manchester Metropolitan University
Faculty of Business and Law

Dr Dave Chaffey SmartInsights.com/mmubs2012




                                                         1
About Dave Chaffey
 Books    Online advice and consulting
             www.smartinsights.com




           Qualifications and training
             www.theidm.com




           Insights Director
             www.clickthrough-marketing.com




                                              2
3
Ling‟s Cars




              Ling‟s Cars   4
This month (Feb 2012) so far, I have sold 18 Merc C-
  Class (to chose a significant car). That is a £30k car.
Payments will typically be more than £12,000 of payment
commitment over 3-years. Try converting and getting an
order for £12,000 from a website! Therefore I have to try
              harder than most websites...

   Yes, many people will take one look, or make one visit
  and leave, never to come back. Many people complain
           about retina burn etc. But, so what?
 I *HAVE* to polarise visitors, and get them to choose
to stay or go. It's no good being average, no one would
     commit to £12k of payments over 3 years if I was
 average. So the argument that I get drop-off is very valid.
          Source: Ling‟s cars and the art of persuading visitors to buy


                                                                          5
What is “best practice”
      for digital marketing?

 A process?
 A technique?
 A mindset?

Need?
 A framework
 Capability review
 The right people

                                6
7
8
https://www.mckinseyquarterly.com/Strategy/Strategic_Thinking/Enduring_ideas_The_7-S_Framework_2123

                                                                                                 9
The Journey:
     Capability review gives context
                 Strategy process
                                       Structure:            Senior
E-commerce       and performance                                                    Marketing       Online marketing
                                     Location of E-        management
maturity stage     improvement                                                     integration           focus
                                      commerce               buy-in
                      process
Stage 1.                               Uncontrolled                                                        Content:
                      Limited                                   Limited              Discrete
Unplanned                             experimentation                                                    Brochureware

Stage 2.
Stage 1.             Low-level                                                      Common                  Traffic:
Diffuse                                   Diffuse               Aware
Unplanned            objectives                                                     initiatives       visitor acquisition
management
Stage 3.               Specific                                                                          Conversion &
Stage 1.                                                                         Annual planning
Centralised        organisational       Centralised            Involved                                    customer
Unplanned                                                                         collaboration
management            objectives                                                                          experience
Stage 4.               Refined
Stage 1.                                                       Driving
Decentralised      online channel      Decentralised                               Partnership             Retention
Unplanned                                                    performance
operations          improvement
Stage 5.            Integrated
Stage 1.                                                                                                 Whole lifecycle
Integrated &       multi-channel         Integrated            Integral             Complete
Unplanned                                                                                                 optimisation
optimised          improvement



                                    Source: E-consultancy (2005) report „Managing an E-commerce team‟ Author: Dave Chaffey




                                                                                                    10
Source
         11
Source: Smart Insights – Burberry / Rossignol case   12
Where does “best practice”
           originate?
 Opinion
  Beware the gurus!
 Experience
  Relevant case studies
 Testing
  Using analytics
 Research
  What sample
   size/frame, sector?


                            13
Mobile and social are sexy, and important for the future. But today
98% of your revenue comes from Email, Affiliate, Display, Search.
  At least 50% of your attention / love / obsession should be to
         continuously get good at 98% of your revenue.
                  You'll likely survive longer. : )
 Will you get the balance right?
 Investment in CRO?
                                                        14
Performance management




Figure 9.4 The five diagnostic categories for e-marketing measurement
from the framework presented by Chaffey (2000)

                                                                15
Measure         Reach                   Encourage                 Convert               Engage customers
                Audience                Action incl lead          To sale               to retain and grow
                                        generation
Tracking           Unique visitors      Online opportunity       Online sales         Email list quality
metrics            New visitors          (lead) volume             volume               Email
                   Visits               Offline opportunity      Offline sales         engagement
                   Conversation          (lead) volume             volume                quality
                    volume                generated from            generated from       Transactions
                                          online                    online
Performance      Share of audience      Page engagement          Conversion rate      Active customers
drivers          Share of search         rate (Bounce rate,        to sale               % (site and email
(diagnostics)    Brand/direct visits     duration)                Channel               active)
                                         Lead conversion rate      conversion rates     Active social
                                          by engagement tool       Category              followers
                                                                    conversion rates     Repeat
                                                                                          conversion rate
Customer-        Cost per click and     Cost per lead            Average order        Lifetime value
centric KPIs      cost per sale          Customer satisfaction     value                Customer loyalty
                 Brand awareness                                  Cost per sale         index
                 Conversation                                     Customer             Customer
                  polarity                                          satisfaction          advocacy
                  (sentiment)                                                            Products per
                                                                                          customer
Business         Audience share         Goal value per visit     Revenue per visit    Retained sales
value KPIs        (owned media) or       Online lead              Online-originated     growth and
                 Share of voice          contribution              contribution to       volume
                  (earned media)          (n,£, % of total)         sales, revenue       Revenue per
                                                                    and product           channel and
                                                                                          16
                                                                                          category
 PLAN:
  Insight
  Journey
   analysis
  OVP




    17
Harnessing insight




                 http://bit.ly/smartbenchmarking




                                              18
Group common search behaviours

      NOT keyword LISTS:

     Need: treatment/surgery
      Concerns: risks/costs

     <Need> + <Qualifiers>


                                 Google Agency Toolkit
                                                         19
20
21
From insight to targeting:
  an example from eBay




                             22
Not easy…. Need:
1. Contact rules (email)
2. Personalisation rules (site)
3. Conversation calendars (social)

                                 23
Customer journey analysis
    FROM THIS                                    TO THIS




                                                           24
    Source: Nate Elliot, Analyst at Forrester Research
Making the 3 layers work together


                        Transaction   Interaction   Reach
                           layer         layer      layer




                                                             Example:
                                                            Sneakerpedia




                                                              25
    Source Nate Elliot, Analyst at Forrester Research
Attributing complex behaviour
                            Any Click           1st Click         Last Click          Best Click

14/01   SEO

                                        The first click or view
15/01   MSN banner                                                               The last click or
                                        within the campaign                      view which has
                                        defined click window                     the highest
23/01   PPC                                                                      campaign priority
                                                                                 within the defined
                                                                                 click or view
24/01   Tradedoubler                                                             window

3/02    Email


4/02    Direct         Without deduplication,
                       each „tracked‟                        The last click or view
                       campaign will report a
5/02    SEO
                       whole sale and claim
                       full commission



                                  Hiscox example

                                                                                         26
http://www.youtube.com/watch?v=gSoCsoqJ41c   http://www.youtube.com/watch?v=Gavgc43x4XU


                                                                         27
Use Google Analytics MCF
 to understand true value




     Measuring assists in Google Analytics
       Google‟s new social reports

                                             28   2
                                                  8
Understanding
multichannel journeys




       Smart Insights: ROPO summary of Google case


                                                29
Consistent OVP through customer journeys




                                    30
 REACH
  Mix
  SEO
  Viral




      31
32
A balanced traffic mix?
            Source: Google 2010   33
c2008 version

          34
Is ethical SEO “best practice”?


    Dark Inky Black Hat SEO: So evil he‟s a typosquatter installing spyware. Plain illegal, too.
    Charcoal Hat SEO: Optimizes really unrelated pages for all kinds of queries, but within the bounds of
     legality.
    Dark Gray Hat SEO: This SEO is e.g. a splogger stealing content from other sites. (What, that‟s better than
     charcoal?)
    Slate Gray Hat SEO: An SEO creating link farms and such.
    Gray Hat SEO: An SEO who actually reads the search engine‟s webmaster guidelines, but then tries as
     much “evil” as she can get away with.
    Light Gray Hat SEO: This SEO creates original content (lots of it), but the content is still only aimed at
     search engines.
    Off-White Hat SEO: This guy not only ensures the site is indexable – he‟ll also make sure to get lots of
     backlinks from friends.
    White Hat SEO: This person puts up the content that people are actually searching for, and prepares the
     site to make it very accessible. White Hat SEOs only optimize those of their pages they deem worthy to be
     ranking top in search engines.
    Luminescent Pearly White Hat SEO: Not only does this SEO do everything the White Hat SEO does, the
     LPW Hat SEO also makes sure pages will not show up for irrelevant queries.


                                                                                                       35
A case in point…
                   36
Google+ matters (to SEO)




                       37
H&M + Google+




    Case study

                 38
Source: Digital Buzz Blog

Dollar Shave        39
 ACT
  Content
   marketing
  UX




        40
41
TEFL Taster example
                                   42
Smart Insights Explainer example
Bad design isn’t hard to find…




                           43
Source: Jakob Nielsen useit.com
                                  44
Persistent UX myth 1:
     3 click rule




                   Source: UIE



                          45
Persistent UX myth 2:
Make the home page scrollable




                 Source: CX Partners
                                       46
Source: CX Partners
                      47
Persistent UX myth 3:
   The home page is most important
        to get right / optimise
In 2003, 39 percent of the page views for a large research website
  were for the homepage. By 2009, it was down to 19 percent. In
  one month in 2008, of the 70,000 page views a technology site
 received, 22,000 were for the homepage. For the same month in
   2010, of the 120,000 page views the site received, only 2,500
                     were for the homepage.

Another technology website had roughly 10 percent of page views
for the homepage in 2008, and by 2010 it was down to 5 percent.
One of the largest websites in the world had 25 percent of visitors
come to the homepage in 2005, but in 2010 only has 10 percent.
                              Gerry McGovern: The Decline of the homepage

                                                                48
 CONVERT
  CRO




         49
50
51
How Facebook Test




        Source: Facebook Engineering
                                       52
How effective is your feedback cycle?




                       Source: ACSI
                                      53
54
Ask “Why” as well as “what” - use feedback tools      Key
                                                                      Point
                       iPerceptions http://www.4qsurvey.com



                                        “Bad web site. Difficult to
                                       find item as no search box
                                          provided for short cut”

                                        “I can't find any prices on
                                              your website”

                                       “Would like to see where I
                                        can buy products from” .
Satisfaction : Intent tools
http://bit.ly/smartfeedback

                                                             55
www.whatusersdo.com   56
Gaining site and business innovation
      ideas through Uservoice




     Tools: http://bit.ly/smartfeedback
                                          57
58
How we encourage conversion...




Discount for MMUBS
 Code: MMUBS-20
  Valid Sept 2012

                          59
 ENGAGE
  Customer
   comms
  Social
   media
  Mobile
   marketing




        60
61
Parasuraman,A.;Berry,Leonard L.;Zeithaml,Valarie A.,
“A Conceptual Model of Service Quality and Its Implications for Future Research”,
                  Journal of Marketing, 1985, 49, 4, 41-50.

                                                                             62
Loiacono, E., Watson, R., Goodhue, D. (2007) WebQual: A measure of Web Site Quality, Journal
International Journal of Electronic Commerce archive, Volume 11 Issue 3, Number 3 / Spring 2007 Pages 51-87

                                                                                          63
Source: Dan Zarrella
                       64
There’s life in Email
                          (RE)Marketing
                                              1. Generic branded follow-up
                                               email :
                                               +10% conversion rate.
                                              2. Personalised remarketing
                                               email with a promotional code
                                               for a 5% discount time limited
                                               to 72 hours:
                                               +100% conversion rate.
                                              3. Personalised remarketing
                                               email with a promotional code
                                               for a 5% discount time limited
                                               to 48 hours:
                                               +200% conversion rate.
Source: Smart Insights: Email re-marketing



                                                                     65
Your email marketing capability?




Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission


                                                                                          66
The ? growth of mobile




                         67
Source: Craig Sullivan (Belron/Autoglass)68
Mobile best practice?




          Source: Mobile marketing 2015
                                          69
70
Social CRM?

              71
72
A glimpse of the future
            Rue La La (Flash Sales)

April 14th 2012
  53% mobile
(Apps and Site)

 30% mobile
  Weekends

 40% mobile
  Weekdays




                  Source: InternetRetailer.com   73
Conclusions?
 You can run an online business by best practice alone,
  but… to make the most of opportunities you need…
 A digital marketing strategy
 To analyse and test, test, test what works in your sector
 Be relentless!




                                                   74
Digital marketing pioneers
Where are you on your journey?




                      75   75
http://www.smartinsights.com/analytics-conversion-optimisation-alerts/dell-international-web-analytics-case-study/


                                                                                                                     76
Take a health check!




         http://bit.ly/smarthealthcheck


                                          77
Let’s Connect!
                    Questions & discussion welcome
                     SmartInsights.com/mmubs2012


                                    Blog
uk.linkedin.com/in/davechaffey
                                   www.smartinsights.com/blog

                                    Feeds
                                   www.feedburner.com/smartinsi
www.facebook.com/davechaffey
                                      ghts

                                    Email Newsletter
                                   www.smartinsights.com
www.twitter.com/DaveChaffey




                                                        78

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Digital marketing best practice - Smart Insights

  • 1. Best Practices in Digital Marketing: Are they always best? 6th September 2012, Manchester Metropolitan University Faculty of Business and Law Dr Dave Chaffey SmartInsights.com/mmubs2012 1
  • 2. About Dave Chaffey  Books  Online advice and consulting www.smartinsights.com  Qualifications and training www.theidm.com  Insights Director www.clickthrough-marketing.com 2
  • 3. 3
  • 4. Ling‟s Cars Ling‟s Cars 4
  • 5. This month (Feb 2012) so far, I have sold 18 Merc C- Class (to chose a significant car). That is a £30k car. Payments will typically be more than £12,000 of payment commitment over 3-years. Try converting and getting an order for £12,000 from a website! Therefore I have to try harder than most websites... Yes, many people will take one look, or make one visit and leave, never to come back. Many people complain about retina burn etc. But, so what? I *HAVE* to polarise visitors, and get them to choose to stay or go. It's no good being average, no one would commit to £12k of payments over 3 years if I was average. So the argument that I get drop-off is very valid. Source: Ling‟s cars and the art of persuading visitors to buy 5
  • 6. What is “best practice” for digital marketing?  A process?  A technique?  A mindset? Need?  A framework  Capability review  The right people 6
  • 7. 7
  • 8. 8
  • 10. The Journey: Capability review gives context Strategy process Structure: Senior E-commerce and performance Marketing Online marketing Location of E- management maturity stage improvement integration focus commerce buy-in process Stage 1. Uncontrolled Content: Limited Limited Discrete Unplanned experimentation Brochureware Stage 2. Stage 1. Low-level Common Traffic: Diffuse Diffuse Aware Unplanned objectives initiatives visitor acquisition management Stage 3. Specific Conversion & Stage 1. Annual planning Centralised organisational Centralised Involved customer Unplanned collaboration management objectives experience Stage 4. Refined Stage 1. Driving Decentralised online channel Decentralised Partnership Retention Unplanned performance operations improvement Stage 5. Integrated Stage 1. Whole lifecycle Integrated & multi-channel Integrated Integral Complete Unplanned optimisation optimised improvement Source: E-consultancy (2005) report „Managing an E-commerce team‟ Author: Dave Chaffey 10
  • 11. Source 11
  • 12. Source: Smart Insights – Burberry / Rossignol case 12
  • 13. Where does “best practice” originate?  Opinion  Beware the gurus!  Experience  Relevant case studies  Testing  Using analytics  Research  What sample size/frame, sector? 13
  • 14. Mobile and social are sexy, and important for the future. But today 98% of your revenue comes from Email, Affiliate, Display, Search. At least 50% of your attention / love / obsession should be to continuously get good at 98% of your revenue. You'll likely survive longer. : ) Will you get the balance right? Investment in CRO? 14
  • 15. Performance management Figure 9.4 The five diagnostic categories for e-marketing measurement from the framework presented by Chaffey (2000) 15
  • 16. Measure Reach Encourage Convert Engage customers Audience Action incl lead To sale to retain and grow generation Tracking  Unique visitors  Online opportunity  Online sales  Email list quality metrics  New visitors (lead) volume volume  Email  Visits  Offline opportunity  Offline sales engagement  Conversation (lead) volume volume quality volume generated from generated from  Transactions online online Performance  Share of audience  Page engagement  Conversion rate  Active customers drivers  Share of search rate (Bounce rate, to sale % (site and email (diagnostics)  Brand/direct visits duration)  Channel active)  Lead conversion rate conversion rates  Active social by engagement tool  Category followers conversion rates  Repeat conversion rate Customer-  Cost per click and  Cost per lead  Average order  Lifetime value centric KPIs cost per sale  Customer satisfaction value  Customer loyalty  Brand awareness  Cost per sale index  Conversation  Customer  Customer polarity satisfaction advocacy (sentiment)  Products per customer Business  Audience share  Goal value per visit  Revenue per visit  Retained sales value KPIs (owned media) or  Online lead  Online-originated growth and  Share of voice contribution contribution to volume (earned media) (n,£, % of total) sales, revenue  Revenue per and product channel and 16 category
  • 17.  PLAN:  Insight  Journey analysis  OVP 17
  • 18. Harnessing insight http://bit.ly/smartbenchmarking 18
  • 19. Group common search behaviours NOT keyword LISTS: Need: treatment/surgery Concerns: risks/costs <Need> + <Qualifiers> Google Agency Toolkit 19
  • 20. 20
  • 21. 21
  • 22. From insight to targeting: an example from eBay 22
  • 23. Not easy…. Need: 1. Contact rules (email) 2. Personalisation rules (site) 3. Conversation calendars (social) 23
  • 24. Customer journey analysis FROM THIS TO THIS 24 Source: Nate Elliot, Analyst at Forrester Research
  • 25. Making the 3 layers work together Transaction Interaction Reach layer layer layer Example: Sneakerpedia 25 Source Nate Elliot, Analyst at Forrester Research
  • 26. Attributing complex behaviour Any Click 1st Click Last Click Best Click 14/01 SEO The first click or view 15/01 MSN banner The last click or within the campaign view which has defined click window the highest 23/01 PPC campaign priority within the defined click or view 24/01 Tradedoubler window 3/02 Email 4/02 Direct Without deduplication, each „tracked‟ The last click or view campaign will report a 5/02 SEO whole sale and claim full commission Hiscox example 26
  • 27. http://www.youtube.com/watch?v=gSoCsoqJ41c http://www.youtube.com/watch?v=Gavgc43x4XU 27
  • 28. Use Google Analytics MCF to understand true value Measuring assists in Google Analytics Google‟s new social reports 28 2 8
  • 29. Understanding multichannel journeys Smart Insights: ROPO summary of Google case 29
  • 30. Consistent OVP through customer journeys 30
  • 31.  REACH  Mix  SEO  Viral 31
  • 32. 32
  • 33. A balanced traffic mix? Source: Google 2010 33
  • 35. Is ethical SEO “best practice”?  Dark Inky Black Hat SEO: So evil he‟s a typosquatter installing spyware. Plain illegal, too.  Charcoal Hat SEO: Optimizes really unrelated pages for all kinds of queries, but within the bounds of legality.  Dark Gray Hat SEO: This SEO is e.g. a splogger stealing content from other sites. (What, that‟s better than charcoal?)  Slate Gray Hat SEO: An SEO creating link farms and such.  Gray Hat SEO: An SEO who actually reads the search engine‟s webmaster guidelines, but then tries as much “evil” as she can get away with.  Light Gray Hat SEO: This SEO creates original content (lots of it), but the content is still only aimed at search engines.  Off-White Hat SEO: This guy not only ensures the site is indexable – he‟ll also make sure to get lots of backlinks from friends.  White Hat SEO: This person puts up the content that people are actually searching for, and prepares the site to make it very accessible. White Hat SEOs only optimize those of their pages they deem worthy to be ranking top in search engines.  Luminescent Pearly White Hat SEO: Not only does this SEO do everything the White Hat SEO does, the LPW Hat SEO also makes sure pages will not show up for irrelevant queries. 35
  • 36. A case in point… 36
  • 38. H&M + Google+ Case study 38
  • 39. Source: Digital Buzz Blog Dollar Shave 39
  • 40.  ACT  Content marketing  UX 40
  • 41. 41
  • 42. TEFL Taster example 42 Smart Insights Explainer example
  • 43. Bad design isn’t hard to find… 43
  • 44. Source: Jakob Nielsen useit.com 44
  • 45. Persistent UX myth 1: 3 click rule Source: UIE 45
  • 46. Persistent UX myth 2: Make the home page scrollable Source: CX Partners 46
  • 48. Persistent UX myth 3: The home page is most important to get right / optimise In 2003, 39 percent of the page views for a large research website were for the homepage. By 2009, it was down to 19 percent. In one month in 2008, of the 70,000 page views a technology site received, 22,000 were for the homepage. For the same month in 2010, of the 120,000 page views the site received, only 2,500 were for the homepage. Another technology website had roughly 10 percent of page views for the homepage in 2008, and by 2010 it was down to 5 percent. One of the largest websites in the world had 25 percent of visitors come to the homepage in 2005, but in 2010 only has 10 percent. Gerry McGovern: The Decline of the homepage 48
  • 49.  CONVERT  CRO 49
  • 50. 50
  • 51. 51
  • 52. How Facebook Test Source: Facebook Engineering 52
  • 53. How effective is your feedback cycle? Source: ACSI 53
  • 54. 54
  • 55. Ask “Why” as well as “what” - use feedback tools Key Point iPerceptions http://www.4qsurvey.com “Bad web site. Difficult to find item as no search box provided for short cut” “I can't find any prices on your website” “Would like to see where I can buy products from” . Satisfaction : Intent tools http://bit.ly/smartfeedback 55
  • 57. Gaining site and business innovation ideas through Uservoice Tools: http://bit.ly/smartfeedback 57
  • 58. 58
  • 59. How we encourage conversion... Discount for MMUBS Code: MMUBS-20 Valid Sept 2012 59
  • 60.  ENGAGE  Customer comms  Social media  Mobile marketing 60
  • 61. 61
  • 62. Parasuraman,A.;Berry,Leonard L.;Zeithaml,Valarie A., “A Conceptual Model of Service Quality and Its Implications for Future Research”, Journal of Marketing, 1985, 49, 4, 41-50. 62
  • 63. Loiacono, E., Watson, R., Goodhue, D. (2007) WebQual: A measure of Web Site Quality, Journal International Journal of Electronic Commerce archive, Volume 11 Issue 3, Number 3 / Spring 2007 Pages 51-87 63
  • 65. There’s life in Email (RE)Marketing  1. Generic branded follow-up email : +10% conversion rate.  2. Personalised remarketing email with a promotional code for a 5% discount time limited to 72 hours: +100% conversion rate.  3. Personalised remarketing email with a promotional code for a 5% discount time limited to 48 hours: +200% conversion rate. Source: Smart Insights: Email re-marketing 65
  • 66. Your email marketing capability? Presented by Grant Baillie of Argos at 2008 Email marketing conference, with permission 66
  • 67. The ? growth of mobile 67
  • 68. Source: Craig Sullivan (Belron/Autoglass)68
  • 69. Mobile best practice? Source: Mobile marketing 2015 69
  • 70. 70
  • 72. 72
  • 73. A glimpse of the future Rue La La (Flash Sales) April 14th 2012 53% mobile (Apps and Site) 30% mobile Weekends 40% mobile Weekdays Source: InternetRetailer.com 73
  • 74. Conclusions?  You can run an online business by best practice alone, but… to make the most of opportunities you need…  A digital marketing strategy  To analyse and test, test, test what works in your sector  Be relentless! 74
  • 75. Digital marketing pioneers Where are you on your journey? 75 75
  • 77. Take a health check! http://bit.ly/smarthealthcheck 77
  • 78. Let’s Connect! Questions & discussion welcome SmartInsights.com/mmubs2012  Blog uk.linkedin.com/in/davechaffey www.smartinsights.com/blog  Feeds www.feedburner.com/smartinsi www.facebook.com/davechaffey ghts  Email Newsletter www.smartinsights.com www.twitter.com/DaveChaffey 78

Editor's Notes

  1. So if most digital marketing isn’t based on strategy it must be based on best practices?
  2. http://www.smartinsights.com/goal-setting-evaluation/vision-setting/digital-and-social-media-transform-business/Social media is not just a channel, not just a set of tools, not just about acquiring new customers. Instead, a way to transform business
  3. Identify qualifiers+ risks+ costs+ treatment
  4. OVP = Online Value Proposition
  5. Follow-upsDo you know what content marketing is?Do you have a social media marketing strategy?