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DIGITAL MARKETING

STRATEGY, IMPLEMENTATION AND PRACTICE


Seventh Edition

Part 2
Digital marketing strategy
development

Chapter 6
Relationship marketing using
digital platforms

Copyright © 2019, 2016, 2012 Pearson Education, Inc. All Rights Reserved
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

• Involvement
• Interaction
• Intimacy
• Influence

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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

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CRM technologies and data management

Three main types of customer data held in a CRM system:

• Personal profile
• Transaction data
• Communication interaction data

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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
Smartinsights.com

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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?,
https://www.holisticemailmarketing.com/blog/what-is-lifecycle-marketing/ (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

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Figure 6.16 An example of an LTV
segmentation plan

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Figure 6.17 RFM analysis

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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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