With the global economy looking fragile and one of Australia’s largest trading partners, China, slowing down, it’s important for Australian business decision-makers to re-evaluate their position as the new financial year begins, according to Atradius. Mark Hoppe, managing director, Oceania, Atradius, said, “The start of the new financial year is traditionally an ideal opportunity for Read More…
Engage customers with web marketing
Marketing used to be a lot simpler. In today’s highly connected society, creating and measuring customer engagement online is key.
Tue 24 March 2009 - 4:14 pmGrowing | Marketing
As business owners and operators deal with shrinking operating budgets, reduced staff numbers and increased competition, it is important to ensure that all of the marketing activities that they do undertake are as effective as possible in engaging with current and potential consumers.
Now is the time for businesses to adopt new concepts to help them participate in conversations with customers that are taking place across the internet and deliver truly relevant messages and offers. Web analytics can guide your customer engagement strategies and help you understand your customers’ interests by motivating them to act with targeted campaigns.
Make your message count
It is becoming increasingly challenging every day to effectively connect with customers. We are bombarded constantly with messages every day via email, billboards, web surfing, radio, television advertising and so much more. Many of these messages are unsolicited and, frankly, irrelevant. The magnitude of this push marketing is becoming more obvious all the time. Recent research shows that the average consumer receives more than 3,000 messages every day. Each message is part of somebody’s marketing program and represents a significant investment. Unfortunately, most will fail to connect in any way.
The problem is not only the sheer quantity but also the quality. People are getting fast on the draw with the delete key. You have to work smarter to make it through their filters.
But you are not alone. According to The Economist Intelligence Unit, the need to engage customers is seen as a critical requirement for survival, in what is now a competitive online marketplace. More than 80 percent of business people surveyed believe their company loses sales each year because of their failure to engage customers.
Engaging through new media
Most organisations are using new media, like video-enriched internet applications, to create engaging experiences. But one of the biggest barriers remains the inability to effectively measure how these isolated interactions impact the overall experience a visitor has online. Almost 50 percent of business people surveyed said that the difficulty of measuring customer engagement is the biggest barrier to achieving greater levels of engagement.
Frankly, marketing used to be a lot simpler. In the good old days you wrote an ad, you got a celebrity to endorse your product and you blasted it to the widest possible audience over one of three TV networks and across radio. Nowadays, people seem to trust each other more than they do a celebrity spokesperson. Consumers are turning to each other for advice, reviews and help making decisions. Now it’s crowds talking to crowds about products and brands. The old model of push marketing is no longer effective in today’s highly connected market place.
Four Ps or four Rs?
The four Ps of push marketing; Product, Price, Place and Promotion, were used to move people through the buying cycle of awareness, interest, desire and action, targeting customers in mass via television, magazines and radio. This was the one-to-many marketing model.
Now that consumers are listening to each other and not us and being bombarded with too many mass messages to make sense of, marketing is transforming from the four Ps of push marketing to the four Rs of consumer-centric marketing; Reveal, Reward, Respect and Retain.
With the four P model, businesses knew which messages they were delivering and they also knew the general size of the audience, but they knew little about who was reading the ads or what specific interests they had. The idea was to deliver the four Ps and hope the audience responded appropriately.
Social networking rules
In the new world of electronic communications, there is no longer a homogenous audience to target. Consumers are connected with each other and getting information through vast social networks. Now the power has shifted to the consumers. Anyone with an internet connection can find anything, compare prices, ask for opinions and much more. In fact, nearly 80 percent of consumers trust word of mouth more than any other source according to numerous studies recently published by eMarketer.
This is a mixed blessing. Businesses have access to a huge pool of potential customers but they have essentially lost control of their messages. In this new environment, the four Ps are still a key part of the marketing strategy, but pushing the four Ps alone is not effective enough to connect with each consumer. It doesn’t allow the organisation to join into the conversations as many of the consumers are conversing directly with each other.
A new way of working with this audience is needed; one that listens and participates, not dictates. This is where a new language is needed to describe how to effectively participate in this new conversation. Now, businesses need to connect more directly with individuals who in turn are talking with each other and reflecting back to the organisation.
Using the four Rs
This is where the four Rs become important. This new language reflects the way companies need to evolve and act to enter into an ongoing and meaningful relationship with their customers. The key ingredients for this are Reveal, Reward, Respect and Retain.
So what does it mean to reveal? Revealing is about taking the information you already have, that you collect over time, to gain a deeper understanding about your consumers. It is about identifying the people that matter the most to you, learning about their preferences and then finding thousands or hundreds of thousands of people like them.
When you ask customers to give up valuable information about themselves you have to give them something in return. While a generic offer like a free shipping coupon may be a start, it is even more important to listen and react to what your customers are telling you. If they tell you they are allergic to nuts but you keep sending them coupons for almonds, that means they go unrewarded.
Highly relevant, targeted offers result in increased trust and respect towards the brand. By increasing the relevancy and timeliness of the interactions with your consumers, the level at which they trust and respect your organisation will also increase. It also means you respect their time, don’t waste it with irrelevant messages.