DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition
Part 2
Digital marketing strategy
development
Chapter 6
Relationship marketing using
digital platforms
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Chapter 6 Relationship marketing using
digital platforms
Main topics
• Using social media to improve customer
loyalty and advocacy
• The challenge of customer engagement
• Customer lifecycle management strategy
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The goals of marketing orchestration
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Using social media to improve customer
loyalty and advocacy
Source: Altimeter (2010)
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What are
the main
social
media
platforms
?
Source: Smart Insights (2015)
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Social media activities requiring management:
Activity 1 Define listening and reputation strategy
Activity 2 Transform the brand through social media
Activity 3 Acquire new customers using social media
Activity 4 Increase sales to existing customers
Activity 5 Enhance customer service through social media
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The challenge of customer engagement
Messaging Example of Urban Airship Co.
• Involvement -
website visits,
time spent,
pages viewed
• Interaction -
blogs,
quantity/frequenc
y of written
reviews and
online comments
• Intimacy -
sentiment
tracking on third-
party sites
• Influence -
likelihood to
recommend,
brand affinity and
content
forwarded to
friends
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Benefits of using CRM to support
customer engagement:
• Targeting more cost-effectively
• Permission marketing
• Mass customisation of the marketing messages
• Increased breadth and depth of information
• Deeper customer understanding
• Lower cost
• Delivering loyalty programmes
• Gamification
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Marketing applications of CRM:
• Sales force automation
• Customer service management
• Managing the sales process
• Customer communication management
• Analysis – Big data
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Marketing applications of CRM:
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CRM technologies and data management
Three main types of customer data held in a CRM system:
• Personal profile - These include contact details and
characteristics for profiling customers, such as age and
gender (B2C), and business size, industry sector and the
individual’s role in the buying decision (B2B).
• Transaction data - A record of each purchase transaction
including specific product purchased, quantities, category,
location, date and time and channel where purchased.
• Communication interaction data - A record of which
customers have been targeted by campaigns and their
response to them (outbound communications). Also includes
a record of inbound visits to a website, customer service and
support enquiries and sales representative interactions.
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Artificial intelligence for marketing
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Customer lifecycle management strategy
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Permission marketing
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Figure 6.9 Example of a pop-up on
[Link]
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Figure 6.10 Matrix of customer touchpoints for
collecting and updating email contact and other
profile information
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Figure 6.11. Options for lifecycle email
marketing messages for a retailer
Source: Kath Pay, Holistic Email Marketing (2016) What is lifecycle marketing?,
[Link] (accessed 30 July 2018).
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Personalisation and mass customisation
To derive maximum benefits from the use
of personal information consider giving
individuals more control
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Summary of elements of CRM strategy:
• Permission marketing
• Personalisation and mass customisation
• Using digital media to increase customer loyalty
• Determining what customers value
• The relationship between satisfaction and loyalty
• Measuring the voice of the digital customers
• Differentiating customers by value and engagement
• Lifetime value modelling
• Product recommendations and propensity modelling
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Figure 6.13 Factors affecting customer
satisfaction and loyalty
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Figure 6.14 Activity segmentation of a
site requiring registration
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Figure 6.15 Different representations of
LTV calculation
Lifetime value (LTV) is
defined as the total net
benefit that a customer,
or group of customers,
will provide a company
over their total
relationship with the
company.
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Figure 6.16 An example of an LTV
segmentation plan
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Figure 6.17 RFM analysis
Monetary value:
1 – Less than £10;
2 – £10–£50;
3 – £50–£100;
4 – £100–£200;
5 – More than £200.
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Case Study 6 Dell Gets closer to its
Customers through its Social Media Strategy
This case explores Dell’s business
strategy and how it has positioned
the brand through marketing
communications especially online.
The case applies the RACE
framework and demonstrates how
this relates to the design of online
campaigns and promotional offers
Source: Philip Sowels/Future Publishing/Shutterstock
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