Digital Marketing and Analytics

Week 3 – Customer Journey

Customer Journey: Topics Covered
Marketing Management Process

Understanding the customer is

the most important factor for
sustained marketing success
The Three-Step Process of Making a Targeting Decision

Understanding the customer is

the most important factor for
sustained marketing success
The Three-Step Process of Making a Targeting Decision

Understanding the customer is

the most important factor for
sustained marketing success
The Three-Step Process of Making a Targeting Decision
Criteria that make a segment attractive
The Three-Step Process of Making a Targeting Decision

Understanding the customer is

the most important factor for
sustained marketing success
The Three-Step Process of Making a Targeting Decision

Understanding the customer is

the most important factor for
sustained marketing success
The Three-Step Process of Making a Targeting Decision

Understanding the customer is

the most important factor for
sustained marketing success
The Three-Step Process of Making a Targeting Decision

• Match your strengths and capabilities to those

required to succeed in each segment
• Begin with the most attractive segment
• Choose the most attractive segment that matches
your business strengths and capabilities
• Note that the closer the match, the more the
likelihood of success
• Focus on each target segment individually
• Commence a separate marketing process for each
segment
User Personas

What are user personas?

A user or consumer or customer persona is a fictional character
created by a marketer to represent a group of targeted
customers
User Persona
A persona is a demographic, behavioral, and psychographic profile of a group of customers
and represents a typical customer in the group
User Persona

• Marketers create at least one

user persona for each target
segment of customers
• Marketers may create one
persona for each group of
similar users if a customer
segment has multiple groups of
similar users
User Persona

• Developing a profile of customers in each targeted

segment helps the marketing team focus on customer
needs
• If a segment has multiple groups of similar customers or
subsegments, then a customer profile is developed for
each subsegment
Characteristics of a Good User Persona
The more a targeted customer
can relate to the persona, the
better are the chances of
An engaging story flow understanding the customer's
chart matters when needs and behaviour
delivering content via user
personas
A brief description of the
persona results in an
easier-to-understand and
Conduct extensive market relevant user persona
research to assess your
customers' needs and
behaviours before
developing a persona
Advantages of Building User Personas
Building a User Persona
A user persona should help marketers visualise the target customer or decision maker

The user persona

should not only
represent a real
person but also
the broader group
of targeted
customers
Factors to Include in a User Persona
User Persona for a Car Company

Understanding the customer is

the most important factor for
sustained marketing success

The marketer groups these variables into

appropriate categories for ease of understanding
User Persona for a Car Company

Understanding the customer is

the most important factor for
sustained marketing success
User Persona for a Car Company

Understanding the customer is

the most important factor for
sustained marketing success
User Persona for a Reading App

Understanding the customer is

the most important factor for
sustained marketing success
User Persona for a Health Club

Understanding the customer is

the most important factor for
sustained marketing success
Customer Journey

• A customer journey is broadly

Understanding the defined
customeras is
the sequence of
interactions
theand experiences
most importantafactor
customer
for has with the
company sustained
and its brand before achieving
marketing successa goal
• A customer journey is a series of touchpoints a customer
has with the firm before making a purchase and beyond if
relevant for the business
Customer Journey Map

Understanding the customer is

the most important factor for
sustained marketing success
Customer Journey Map

• Customer journeys are often represented visually using

customer journey maps
• A customer journey map is a cross-functional strategic
management tool useful in understanding an organisation's
customer experience to improve and promote innovation
Benefits of a Customer Journey Map
Managing Customer Experience
Results of a study by salesforce.com

These findings highlight the value of customer journey mapping as they

show experience touchpoints and the various interconnected ways in
which they happen
Creating a Customer Journey Map
A Typical Customer Journey Map
A Typical Customer Journey Map

• A customer journey is broadly defined as the sequence of

interactions and experiences a customer has with the
company and its brand before achieving a goal
• A customer journey is a series of touchpoints a customer
has with the firm before making a purchase and beyond if
relevant for the business
A Customer Journey Map
Example: Synergies
A Customer Journey Map
Example: The LEGO Group
A Customer Journey Map
Example: A credit card company
Customer Journey Process

Understanding the customer is

the most important factor for
sustained marketing success
Traditional Approaches to Customer Journey
The AIDA model
Traditional Approaches to Customer Journey
The ATR model
Stages in the Digital Marketing Funnel
Common categorisation
Stages in the Digital Marketing Funnel
The AIDAA model
Stages in the Digital Marketing Funnel
The AIDAA model
Stages in the Digital Marketing Funnel
The AIDAA model
Stages in the Digital Marketing Funnel
The AIDAA model
Stages in the Digital Marketing Funnel
The AIDAA model

The marketing funnel has the

awareness stage at the top broad
end and the advocacy stage at the
bottom narrow end.
This is because as customers
move through the funnel from the
awareness stage to the advocacy
stage, the numbers drop.
Stages in the Digital Marketing Funnel
The AIDAA model
The Marketing Funnel and Customer Journey Map
Digital Marketing Funnel Models

Awareness refers to the potential customers who become aware of the

offerings of the firm. This could include the entire market.
Digital Marketing Funnel Models

Interest refers to the people who might be interested in the brand

Digital Marketing Funnel Strategies

• ReferUnderstanding
to strategies thatthe
companies
customer use
is to deal with
customers at various
the most stages
important in thefor
factor funnel to
encourage them to move through the funnel,
sustained marketing success
ultimately leading to purchase and advocacy

• Need to be time-and-budget-effective
Digital Marketing Funnel Strategies
The awareness stage
Digital Marketing Funnel Strategies
The interest stage
Digital Marketing Funnel Strategies
The desire stage
Digital Marketing Funnel Strategies
The action stage
Digital Marketing Funnel Strategies
The advocacy stage
How Advocates Benefit Companies

Advocates:

• Created during the advocacy stage are an asset to a company

• May purchase several products frequently

Understanding the customer is
the most important factor for
• Are loyal supporters of the company who help in customer acquisition and retention
sustained marketing success
through their advocacy

• Protect brands, particularly when the company is in crisis, by supporting the company
via social media

• Help make new product launches successful by providing positive feedback on social
media about the company and its products
Understanding Post-Purchase Experiences of Customers

The company must:

• Engage with customers to understand their experience and immediately address any
negative outcomes
Understanding the customer is
• Engage with customersthe
proactively through direct
most important factorcommunication
for and social media by
providing them value oversustained
time to nurture the relationship
marketing success
• Continuously monitor social media content concerning its products and brand to spot
issues and engage with advocates to resolve them
How Netflix Uses the Digital Marketing Funnel

Understanding the customer is

the most important factor for
sustained marketing success
How Netflix Uses the Digital Marketing Funnel
How Netflix Uses the Digital Marketing Funnel
How Netflix Uses the Digital Marketing Funnel
How Netflix Uses the Digital Marketing Funnel
How Netflix Ensures Marketing Effectiveness

• Offers "Ghost Ads" the effectiveness methodology

to foster effectiveness of ads
• Helps ensure marketing effectiveness, lowers the
cost of experimentation and improves precision
and engagement across multiple platforms,
optimising ad delivery time to users
How Netflix Addresses Challenges

Utilises multiple ML algorithms to help:

• Identify the titles that need to be marketed
• Decide on the amount that needs to be spent in
marketing specific content
• Budget for optimal growth
Customer Data Collection: Benefits
Studies have found that people want personalised services despite privacy concerns

Understanding the customer is

the most important factor for
sustained marketing success
Customer Data Collection: Sources

Understanding the customer is

the most important factor for
sustained marketing success
Customer Data Collection: Sources
Example: Netflix and Spotify

Understanding the customer is

the most important factor for
sustained marketing success

Better recommendations greatly enhance customer experience due to the increased

relevance of suggested products, personalisation, and higher time efficiency
Customer Data Collection: Different Methods
Study by Qualtrics

Understanding the customer is

the most important factor for
sustained marketing success
Personalisation of Consumer Experiences

• Consumers want companies to provide

personalised experiences
• Such experiences help consumers find relevant
content easily, reducing the cost of search and
consumption
• According to a KPMG research survey, "more than
2 in 3 consumers want a personalised customer
experience"
Personalisation: Requirements
Personalisation: Requirements
Customers’ Concerns Towards Data Sharing
Data Protection

With new government data protection regulations in many

countries (e.g., GDPR in the European Union):
• Companies are giving customers the choice of what data to be
shared
• The quality of services may drop if the shared data is limited
• For example, if location data is not shared:
o You cannot book a cab
o You cannot track fitness measures
Data Protection

When you click the "Accept all" option, the company:

• Collects all kinds of data about your online behaviour
• Stores it for future use in case needed
Customers’ Concerns Towards Data Sharing
Customers’ Concerns Towards Data Sharing
Example: WhatsApp

On 4 January 2021, WhatsApp released an update to its privacy

policy that appeared to force users into consenting to share their
WhatsApp data with Facebook, the parent company of WhatsApp

The issue was picked up by many on social media and went viral
Users started downloading competing products, primarily Signal
and Telegram
Customers’ Concerns Towards Data Sharing
Example: WhatsApp
Customers’ Concerns Towards Data Sharing
Example: WhatsApp

• The terms and conditions to download a free app often

prompt users to agree to let the company collect their data
• Many of the permissions are not relevant for the users
How a Company’s Business Model Affects
Consumers’ Privacy

Understanding the customer is

the most important factor for
sustained marketing success
How Companies Can Earn Consumers’ Trust

Understanding the customer is

the most important factor for
sustained marketing success
Personalisation

• A desired outcome by consumers

• Perceived as the value provided by a company in
return for consumers' data

Companies can provide value to consumers by:

• Setting up consumer panels where panel members receive
some benefit in return for sharing their data
• Setting up policies that provide users control over what
happens to their data after some time period of inactivity
• Allowing users to choose whether they want personalised ads
or not
Google’s Attempt to Ensure User Privacy
Google has given users the control of what data to share
Google’s Attempt to Ensure User Privacy
Google has given users the control of what data to share
Google’s Attempt to Ensure User Privacy
Google has
Google hasgiven
givenusers thethe
users control of what
control data data
of what to share
to share
Google’s Attempt to Ensure User Privacy
Google has given users the control of what data to share

You can turn on or

pause these settings
at any time
Privacy Regulations

• With new government regulations in many

countries, companies are giving consumers
the choice of what data to share
• In some cases, the quality of services drops
if data is not shared
The Impact of EU Users’ GDPR Knowledge on Their
Perception of Data Use

GDPR-aware users:
• Are more familiar with
Understanding the customer is online advertising
the most important factor for • Tend to be more familiar
sustained marketing success with policies on the use of
their data

Source: https://www.statista.com/statistics/1175247/impact-of-gdpr-knowledge-on-perception-of-data-use-europe/
The Impact of EU Users’ GDPR Knowledge on Their
Perception of Data Use

Understanding the customer is

the most important factor for
sustained marketing success

Source: https://www.statista.com/statistics/1175247/impact-of-gdpr-knowledge-on-perception-of-data-use-europe/
Privacy Regulations
Both governments and companies must focus more on consumer
education and regulation to find an acceptable solution for everyone

The value game: Privacy vs personalisation

• Rational consumers make a choice based on
perceived superior value alone
• The value proposition of a company must reflect
issues of importance to consumers
• If privacy and data protection play an important
role in consumers' choice, the company should
create an appropriate data protection
environment and make it a part of its value
proposition for consumers
Key Takeaways