Marketing is transforming and how. We see 2 major transformative changes- the attention fragmentation of consumers’ and their changing buying decision journey. The webinar, below, delved deeper into these phenomenon.
We addressed a few interesting questions from the attendees of the webinar, and tare presenting the transcript as takeaways below:
Given the engagement stage of buying journey is very critical , what % of our budget should be spent in this phase?
OK, so there are two important learnings from the presentation:
It’s prudent to invest money on creating experiences for users at every stage. So what we are saying is that you should focus on what kind of experience is needed in a specific stage and then allocate a budget accordingly. Do not make it watertight by stage- rather focus on experience needed and then spend what is necessary to create that experience.
We have to collect a lot of data to be able to understand the impact of experience on consumers. We need to observe if creating positive experiences, results in the flow of users from one stage to next better than earlier or not. This will give us a conversion rate (and a lift in conversion rate) by funnel stage. And then we can see how much each stage contributes to the final conversion or sales. Now, you can attribute a clear cost of conversion by stage and can attribute a cogent budget.
This is the reason why modern marketers need to invest in data and skill sets to create experiences. (Our media expenses should be less in general, and investment on people & skills, data and experience creation should be more)
What are the Key metrics or KPIs for marketing RoI that we should consider?
See, Key metrics or KPIs will depend on your goals for a specific campaign or goals for a specific journey stage, or goals of a certain product line etc.
CXOs look at Business growth as one key metric. Within business growth they look at market share growth, mindshare growth, satisfaction growth and profitability growth
However as you go down the hierarchy the metrics should become more granular. At the end of the day as a marketing leader, you should be responsible for high level metrics- that’s where your value add is. However you should look at granular metrics to understand what’s causing a lift and or decline in growth.
You should create a metric funnel. At the top of this funnel should be high level metrics and as you go down the funnel- define metrics for each layer of hierarchy, responsibilities and platforms or marketing areas that they handle. The top of the funnel is more strategic and bottom is more tactical, campaign based, platforms based, seasonality based etc.
When we do demand generation, we get a lot of leads, but how do we determine what’s a good lead?
So, net net, if my sales guy just has to pick up a phone, call the lead and the lead converts easily- then that lead is great!
But that’s easier said than done, and in real life it doesn’t happen that way most of the time. The reason is our ignorance- where we look at all types of leads with one standard perspective and expectation.
If a lead has shown interest, and we have been able to collect correct contact and demographic data- it’s a good lead. But unless we attach intent and stage level data- it’s not a great lead.
Once we understand at which stage of buying this audience is and what exactly is the intent – then we can take appropriate steps and create expectations of how soon can this lead convert and what do we need to do till then.
We also need to understand that our target audience follows a journey and then at an opportune time fills up a lead form. Leads forms are not filed on impulse. Hence it’s imperative for brands to capture intent and hand hold audience over time, and transition them towards a final lead capture of form fill.
While consumer attention is getting expensive for advertisers, should brands focus on creating communities?
The focal point should always be user experience. If the journey stage demands advertising, so be it, if it needs touch point experience, let’s invest there. So as I said earlier, let’s not create watertight compartments. If there is a clear rationale of who would be part of the community, what experience will this community deliver and if the context and importance of this experience is justified, we should invest in communities. But lets not forget that metrics or brand expectations should also be in syn with experience objectives. An advertising objective will be quite different than community objective. While advertising is easy relatively and more direct and transactional, community experience will be tough to manage, long term and very less transactional in nature.
We have often asked this question about why do companies, especially the new age online marketplaces like Amazon, Ola, OLX etc. delay profitability.Why should they operate in losses and till when?
Today let’s try to find the answer to this perennial question.
So, the traditional and industrial way of thinking is that the more you create something, the less would be its incremental value for users.For e.g. a special edition Ferrari not just commands a specific value but people would be willing to pay more if one more unit is produced, the reason being that it is limited. But if the same Ferrari is produced in mass, then the value of an incremental unit may start to decrease after some time.
This is the reason why, the traditional marketing and industrial thoughts revolved around creating exclusivity to increase value, and precisely why the industrial age firms would strive to make profits as early as possible, because otherwise the incremental value of the product and service could decrease andkeep going down as the scale of operation goes up.
Now, the digital or platform way of working is exactly the opposite. The digital platforms or marketplaces work in such a way that the more people use them, the higher is the value of the platform for an incremental user.
For e.g. people used OLA in the initial days received less value, because there were limited drivers leading to longer wait times and less connectivity to locations. But today the value to a user is much higher than what the early user received-there are more drivers, less waiting time and more locations covered.So the more this platform is used, the higher the value people using it will get.
In the case of OLAAs time passes by the value provided by the platform becomes so huge that it will become difficult for drivers and passengers to abandon Ola and switch.Hence, today OLA management is in a position to reap or plan to reap profits. They can now increase their commissions.
All platforms should in their initial days, focus on ONE SINGLE attribute and that is ‘growth’, the growth of users and growth of transactions.Profitability, increased commissions, etc. act as frictions in the expansion of a platform and hence they should Which is why the endeavour for any platform in the initial days is to reduce friction by way of making the registration process very easy,attractive incentive schemes for joining and the focus is on increasing usage of the platform.