It’s holiday time, but like football, the academic close season is getting shorter and shorter (honest!) and my thoughts are turning to revamping, tweaking and tuning various electronic and direct marketing programmes for the coming year. What, I wonder, is the next flavour of the month? And will we always fall back on our old, tried and tested models such as the Four P’s, Ansoff’s Matrix and SERVQUAL etc., in the rapidly evolving e-marketing landscape?
Who is making the Web connection?
I’ll come back to the issues above later, but I think any business needs to consider how ‘connected’ its customers are, and are likely to be, and to what extent they utilize other channels as well as the Web. A recent Oftel report indicated that 11 million UK homes are now connected to the Internet. Connected is one thing, purchasing is another as cash flow and profitability provide the key measures for any business.
Let me be a little self-indulgent and provide some observations from my own family regarding web usage (not that we’re either typical or average!) but it may generate some thoughts for online marketers to wrestle with.
I mentioned it’s holiday time, which got me thinking back to last year’s family jaunt to Spain, booked via the Web. Everything from flights, accommodation, travel insurance and car hire was done via the Web, saving approximately GBP 420 (USD 659)compared to off-line prices. It was a challenge, it was exciting and it meant that I could bring more Spanish wine back - but it’s a good job that I didn’t cost out my actual “search time”. Individual websites, and those of various Spanish Tourist Boards provided great information, not to mention Web cams to whet your appetite further. I even booked my tee times on various golf courses by e-mail, which can be less stressful than dealing directly with some clubs’ secretaries! Everything went well, it was an achievement, and we were independent Web travellers. Goodbye high street travel agent!
A year on, my web purchases have included a dishwasher (saving GBP 95/USD 145 compared to the sale price of a leading department store), garden plants (the quality did not match the online description), yet another Epson Printer and numerous compatible cartridges to go with it, not to mention various CDs from those good people at Amazon whose catalogue expands to satisfy my thirst for nostalgia.
Generally, my Web experiences have been interesting, often saving me money, sometimes causing mutterings under the breath at badly designed sites as I give up yet again before completing a transaction. Despite that, one pleasant aspect has been the fast and reliable delivery provided by online services. Don’t get me wrong, there is a lot of good practice out on the web, but still many online operations don’t get the customer “experience” quite right.
Let me just give you a couple more examples which may help you to think a little more about buyer behaviour influences and the need for integrating other channels and services.
It’s old hat now!
The holiday this year is a compromise (I’m the only male in the household!), so France here we come. Google did the business with relevant results following our search and one travel company was selected for its overall package. But far from getting excited about Internet bookings, I found it quite a toil this year. Where had last year’s fun and excitement gone? Yes it was a decent website with standard information, a couple of nice features and links but I wanted specific information relevant to me which the FAQ’s couldn’t answer. Sadly, the only way to source it was through a premium rate help line, which takes an eternity to get through and then “stings” you for 60p (98c) per minute technology and customer satisfaction in action really?
My second example highlights another web-phobia over making major purchases. I was looking for a good deal on a new car. I scoured many online car dealers and got some decent quotes - if I was willing to wait for three to six months. I’m ready to purchase - so when do I want it? I want it NOW! Offline prices for the car I drive have come down and the local dealer was within GBP 800 (USD 1,250) of the online traders. Consequently, my key criteria of personal service, easy test drive arrangements, local back-up and warranty won the day. I know online car traders are improving their operations by the day, but I was still slightly cautious, and the traditional buying model still seemed to be a safer and more personalised way to make a major purchase.
Are multi-channels the answer?
A number of recent marketing texts have referred to the idea of “convergence marketing” where consumers may vary the channels that they use depending upon the product or service being purchased. For example, in financial services they may be happy to use the web for current account transactions, but will still seek personal advice when making savings and investment decisions. Think about it: do your customers still prefer the security of knowing there is some form of real personal service behind your web pages? And how do you reassure them about it?
So, how receptive are other members of my family to the web? My wife is a hard working nurse. In her words she “hates shopping” and is “time starved”. Tesco, Asda, Next online [UK based retailers] really were made for her. Unfortunately, I’m married to a techno-laggard who will simply not entertain the benefits of the web. My seven-year-old daughter is being brought up with the technology, as she’s completed two school projects using the web and researched information on a regional attraction for her school trip. It’s not hard to tell that the web is going to be second nature to her by the time she has her first credit card!
So does this mean the new “web savvy” generation are the high volume, regular web users to start chasing? Not in my recent experience. Having surveyed 72 final year marketing students, only seven claimed to be regular (once per week) web purchasers and these tended to be low value items (e.g. CDs). Eleven had never purchased anything on the web. The remainder had mostly purchased only travel tickets online. Compare this with 100 percent adoption of mobile phones! Perhaps their first career steps may change this - or marriage and a few children! Joking apart, it is clear that not all consumers are using the “new medium” to purchase products, but the adoption trend is certainly upwards.
Something old, something new
Teaching direct-marketing in the mid-nineties, we talked about the failure of mass advertising, better targeting and use of databases, greater measurability and accountability, the ability to test, less wastage and wider geographic coverage etc. It seems to me that we are simply saying similar things about the web and digital marketing now.
If you consider a lot of the promotional activities employed on the web, many are merely old, tried and trusted techniques applied to the medium. Obviously the technology means that we can do it better and faster. Online redeemable coupons, e-mail newsletters, access to special incentives, events or discounts for instance, all have their origins in sales promotion or direct, but it’s just quicker and more economical for the sponsor. However, reducing costs has led many to go for quantity not quality and spamming simply damages the brand. By driving “profiled” traffic to our web sites we’re in an excellent position for true, precision target marketing.
Similarly, the traditional skills of campaign planners, headline and copywriters are needed more than ever on the web to grab the attention of the passing, potential customer. Think of how many e-mail newsletters you receive yourself each week - which ones stand out and which ones have you clicking delete? Being more succinct than ever to encapsulate the product and its key benefits to the customer, in a few words is critical. As someone famous once said: “you never get a second chance to make a first impression” and the Web is no different. Site usability studies are essential also. Get some mystery shoppers to visit your web site and you may have to “brace yourself” for their comments.
As marketers, we endure accountants questioning and measuring activities, but direct marketing with its ability to measure every campaign element has helped answer the critics. And the web has a hatful of measurement metrics to provide us with key performance indicators regarding online operations. By the time the next issue comes around I’ll have had a chance to read the new Web Metrics text from leading US online marketer Jim Sterne, and give an overview of his own research into the subject. In the meantime, don’t throw the old marketing tools out of the window just yet, the bulk of conventional marketing principles still apply: don’t forget the customer, they’re individuals and they’re still King!
