Methods Used In Digital Marketing
Customer profiling is the act of analyzing an ideal customer for the benefit of a business. It is a tool meant to market business by understanding customer’s needs. This minimizes mistakes in a company. Customer profiling produces a description of customers based on their attributes (Wiedmann & Walsh, 2002). They can as well be grouped based on shared characteristics such as geographic, psycho-graphic, demographic or behavioral characteristics. To a marketing professional customer profiling facilitates understanding and segmentation of the target audience. It enables them social listening to identify market segments with potential customers.
Marketing agents can understand their customer expectations and can express themselves through their favorite channels. For example, a marketing agent representing a brand of alcohol. The agent may opt to reposition the brand to target fans of particular music. To achieve this, the agent promotes the brand on social media platforms surrounding music targeting the fans. This tool would have facilitated segmentation of market-based on lifestyle, interest, and habits. Customer profiling also offers personalized communication (Chen & Hsu, 2010). It provides customers with high potential targeted communication through specific campaign methods that are meet their needs. Developing a particular brand does not guarantee a large audience. One should aim qualified customers with high purchasing power. This can be done through analysis of online conversations about a product, and determining socio-demographic characteristics such as gender, interests, and profession (Jansen, 2007). Customer profiling enables a digital marketer to qualify prospects. This is one of the major challenges facing insurance companies, in creating new businesses. Typically, insurance marketers use social intelligence and digital communication to promote policies. However, customer profiling will enable them to build good customer relation, by listening to their prospects. Specifically, they go for conversations about the insurance industry, policyholders, and specific insurers. The advantage of customer profiling to a digital marketer is that it allows for transactional data analysis (Bozdogan, 2010). This facilitates identification of patterns and trends of customers by segment. This makes the information take into account customer’s past behavior, thus proper allocation or resources to each segment group. It, therefore, optimizes marketing budget and improve profits of investment (Hadden, 2008). However, it is evident that consumer profiling is limited only to few potential customers. This frequently becomes a problem when a marketer intends to expand the market, due to few customers that are deemed to be potential.
A customer journey mapping is a tool that makes digital marketers keep track of customer experience from the first interaction. It focuses on the experiences from the client’s point of view (Lemon & Verhoef, 2016). To a digital marketer, customer journey mapping is essential in identifying the buyer’s persona. A buyer’s persona is a representation of a target customer in regards to detailed market research. It may include, job title, age, and gender. Every buyer persona has different purchasing habits, so the information collected is useful in mapping the journey for a particular buyer persona. It also helps the digital marketer in establishing a marketing funnel (Richardson, 2010). This refers to stages the customers go through before acquiring the brand. Customer journey mapping helps digital marketers in understanding customer goals. Every marketer should understand what the customers are trying to achieve. This enables you to identify the shape your customer’s journey map should take. To achieve this, collect data customer data and align it with customer journey touch points. Touch points refer to how the customers interact with a particular set of brands in each specific ads or web page (Temkin, 2010). For instance, touch points in awareness stages are likely to be case studies or blogs. The method also aids in maintaining time frames. The data collected from customer analytics, interviews and surveys can maintain realistic schedules. This is because one can predict where each customer stage should end. The duration of the touch points is vital in convincing customers to move to the next step. This method of marketing considers customer emotion since the client’s journey is determined from the customer’s perspective (Marquez & Clement, 2015). Therefore, considering the feelings, you can decide whether you can move from one stage to another. The advantage of creating a customer journey map is that it helps one gain valuable insight of customer expectation. It also predicts consumer behavior which allows the digital marketer influence it for the brand’s benefit (Nenonen & Kärnä, 2008). However, the journey mapping tends to focus more on the journey and not consumer’s emotion and expectation. In short, the mapping process is fixed, but the journey will always change from time to time.
Database marketing is an example of direct marketing that promotes products and services through personalized communication. It involves the gathering of customer information, storing and retrieving them from the central database (Blattberg & Neslin, 2008). It is used mainly in direct marketing, as it facilitates approaches in marketing communication. Most successful Internet marketers use it because it streamlines information. Setting up a database promotes the organization with a vast amount of essential information. It also allows easy of information such as phone number, email address, past purchase or demographic information. The information in the database can be used to carry out targeted promotions (Hughes, 2005). You can send products and advertisings to potential customers. For example, when you are marketing books online, you can send an email to those customers who have bought books from your site before. And not waste time and resources on everyone who has ever ordered from your website. Database marketer allows one keep a track record of progress. A marketer can collect metrics that are critical, and determine the ones that can be put to good use. Database marketing has also proved to be cost saving, based on the fact that it is has a more streamlined approach (Cespedes & Smith, 1993).
By approaching customers who you have experience with tend to save costs. This limits the number of resources used in marketing, by not just contacting everyone for the sake of advertising. It is also used for sharing information, such as buying email prospects list, that you can use to carry out a specific campaign or when launching a product. The method has been proven to be successful since it has been used by large companies before, which spend millions of dollars in the advertisement (Peltier & Schultz, 2003). However, smaller businesses with smaller budgets have also adapted to this method. The benefit of database marketing is that it allows the marketers to use their intelligence to decide their top customers and the common characteristic among them. Analyzing the database, the marketer can identify the traits shared by customers who use specific products. This makes marketing segmentation more accurate. Monitoring buying activities and meeting all their demands establishes a good customer relationship. However, one of the significant drawbacks in database marketing is the high cost of developing it (Shaw & Stone, 1991). Full database marketing requires substantial infrastructures with most marketers paying third-party providers or using web portals to get customer data. It also makes marketers more focused on technology than being customer-centric.
- Wiedmann, K. P., Buxel, H., & Walsh, G. (2002). Customer profiling in e-commerce: Methodological aspects and challenges. Journal of Database Marketing & Customer Strategy Management, 9(2), 170-184.
- Chen, Q., Dayal, U., & Hsu, M. (2010). U.S. Patent No. 7,822,629. Washington, DC: U.S. Patent and Trademark Office.
- Hadden, J. (2008). A customer profiling methodology for churn prediction.
- Jansen, S. M. H. (2007). Customer segmentation and customer profiling for a mobile telecommunications company based on usage behavior. A Vodafone Case Study.
- Bozdogan, H. (2010). A new class of information complexity (ICOMP) criteria with an application to customer profiling and segmentation. Istanbul University Journal of the School of Business, 39(2), 370-398.
- Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout the customer journey. Journal of Marketing, 80(6), 69-96.
- Richardson, A. (2010). Using customer journey maps to improve customer experience. Harvard Business Review, 15(1), 2-5.
- Temkin, B. D. (2010). Mapping The Customer Journey. Forrester Research.
- Marquez, J. J., Downey, A., & Clement, R. (2015). Walking a mile in the user’s shoes: Customer journey mapping as a method to understanding the user experience. Internet Reference Services Quarterly, 20(3-4), 135-150.
- Nenonen, S., Rasila, H., Junnonen, J. M., & Kärnä, S. (2008, June). Customer Journey–a method to investigate user experience. In Proceedings of the Euro FM Conference Manchester (pp. 54-63).
- Blattberg, R. C., Kim, B. D., & Neslin, S. A. (2008). Why Database Marketing?. In Database Marketing (pp. 13-46). Springer, New York, NY.
- Hughes, A. M. (2005). Strategic database marketing. McGraw-Hill Pub. Co..
- Cespedes, F. V., & Smith, H. J. (1993). Database marketing: New rules for policy and practice. Sloan Management Review, 34(4), 7.
- Peltier, J. W., Schibrowsky, J. A., & Schultz, D. E. (2003). Interactive integrated marketing communication: combining the power of IMC, the new media and database marketing. International Journal of Advertising, 22(1), 93-115.
- Shaw, R., & Stone, M. (1991). Database Marketing Strategy and Implementation. John Wiley & Sons, Inc..