CUSTOMER ENGAGEMENT A study to explore suitable Digital Marketing strategies to enhance Customer Engagement Online.

OVERVIEW

Background Study • Gave me Digital Marketing and Customer Engagement connection

Literature Review (Secondary Research) • Digital Marketing • Customer Engagement

• Appropriate Strategies

Research Methodology • Research Objectives • Research Design • Data Collection Design

• Questionnaire • Sampling

Analysis & Findings • Secondary Data Analysis

• Questionnaire Survey Analysis (Primary Data) Conclusion &

Recommendations

RESEARCH BACKGROUND ¡  Growth of Internet in India

¡  Rapid increase of Internet usage

¡  Digital Marketing trends like Mobile Apps, Marketing Automation, Content Marketing, etc. becoming bigger

¡  Marketers having endless opportunities

¡  Customer Engagement, a crucial aspect for the brands to make the customers stick

¡  Various important characteristics of a highly engaged customer

¡  To make the customer engaged online, suitable Digital Marketing tools are required to give support and a little push

32%  

11%  29%  

18%  

10%  

Urban  Internet  users  in  India  (2012)  

Top  8  metros  

Towns  with  0.2-­‐0.5  mn  population  

Towns  with  <0.2  mn  population  

Towns  with  >1mn  population  

RESEARCH RATIONALE ¡  Rapidly growing e-Marketing

¡  Endless opportunities for marketers

¡  Diversification in e-Commerce

¡  Customer Engagement is a worthy goal for any brand and a surest path to loyalty

¡  Customers are more informed, they check prices, compare services, read reviews online

¡  Decision making has many aspects in between

¡  Intriguing to connect the both as they are complimentary

¡  Keeping the customer engaged leads to conversions

LITERATURE REVIEW PROCESS

Digital Marketing • What is Marketing? • What is Digital

Marketing? • History of Digital

Marketing • Importance of

Digital Marketing

Current Digital Scenario • Digital India • Internet usage in

India • The state of e-

Marketing in India • Current Digital

Marketing trends

Customer Engagement • What is Customer

Engagement? • Need for Customer

Engagement • Online Customer

Engagement

Customer Engagement Strategies • Content writing • Visual Content • Social Media • Web Design

RESEARCH MODEL Project Ideation

Introduction

Literature Review

RO1: To do an in-depth study on current Digital Marketing trends and the Current Digital Scenario of India.

Data Collection: Exploratory Research (Primary & Secondary)

Tools: Report, Articles, Websites & Books

RO2: To understand Customer Engagement online and various factors to escalate it

Data Collection: Exploratory Research (Primary & Secondary)

Tools: Articles, Web Researches, Journals, Websites & Books

RO3: To analyze the appropriate Digital Marketing tools to enhance Customer Engagement on a website.

Data Collection: Exploratory Research (Primary & Secondary)

Tools: Articles, Web Researches, Journals, Websites & Questionnaire

RESEARCH DESIGN ¡  Research Method used is Exploratory Research

¡  Exploratory Research highlights various insights, like:

o  Familiarity with basic details, settings and concerns

o  Picture of the situation being developed

o  Generation of new ideas and assumptions

o  Determining the feasibility of the research in future

o  Refining of the issue in a more systematic way

o  Directions for future research and techniques

¡  Exploratory Research tools include: Literature Review, Depth Interviews, Focus Groups and Case Analysis

¡  This objective utilized Literature Review as the research tool

DATA COLLECTION METHOD PRIMARY DATA

¡  Data that has been previously published

¡  Data derived from new or original study and collected at the source

¡  Data Accomplishment: Questionnaire, Telephone Interview, Experiments, Direct Observations, Surveys and much more

SECONDARY DATA

¡  Data that is already collected by and readily available

¡  Data that is quickly obtainable and can be collected in the place of primary data

¡  Saves efforts and expenses & helps support the primary data

¡  Useful to identify the gaps and deficiencies

¡  Data Accomplishment: Web, Articles, e-Journals, Web Researches and much more

¡  The research tool utilized for the study of this objective is the Literature Review (Secondary Data Method)

DIGITAL MARKETING

¡  Key target is to promote brands through different digital mediums

¡  Marketing of products or services using digital channels

¡  Digital Marketing stretches out beyond Internet marketing today

¡  Depends upon Customer Centric Approach

RESEARCH OBJECTIVE 1: To do an in-depth study on Current Digital Marketing trends and the Current Digital Scenario of India

Importance of Digital Marketing ¡  Levels the Online Playing Field

¡ More Cost-Effective than traditional marketing

¡ Delivers Conversion

¡  Helps Generate Better Revenue

¡  Facilitates interaction with targeted audience

¡ Caters to mobile consumer

¡  Builds brand reputation

The Digital India ¡  Internet users expected to reach 500 million by end of 2017 (The Marketing Whitebook 2015-2016)

¡  Neilen’s (2014) global survey stated:

o  Three out of five people use internet in India

o  60% purchase air tickets online

o  44% purchase FMCG products like personal care online

o  29% indicate interest in buying groceries online

o  20% were looking to purchase alcoholic drinks online

¡  Nielsen’s Informate Mobile Insights (2015) stated:

o  Flipkart leads in mobile shopping (30%) and engagement is 63 minutes per month

o  Snapdeal follows with 23% with 53 minutes a month

o  Amazon takes the third place followed by Shopclues, Quicks, OLX and Myntra

¡  Technopak estimated that e-tailing in India will grow from the current $0.6 billion to $76 billion by 2021

¡  in 2012, 120 million Indian consumers accessed the Internet at least once a month.

¡  IAMAI data of 2012 said 4 million users are being added every month and at the end of 2014, it was estimated that India would have an Internet user base of 250 million

¡  The evolution of Internet usage in India: 50 million in 2008 to 120 million 2012 !! 2008! 2010! 2012!Number! of!active!Internet!users!

50!million! 75!million! 120!million!

Online!Activities!

• E<mail!• News!

• E<mail!• News!• Travel!• Social!Media!

• E<mail!• News!• Travel!• Social!Media!• Mobile/Internet!Banking!• Gaming!• Video!Streaming!• Apps!downloading!• Shopping!

Current Digital Marketing Trends

Digital Marketing

Trends

SEO

Social Media

Videos

Content Marketing

Mobile Apps

Website

Mobile Marketing

Marketing Automation

Findings Octane’s Annual Report of 2015 highlights and summarizes the major digital scenario of India:

¡  Customer Acquisition is the primary goal for all marketers

¡  Evident increase in the impact of integrated campaigns: 21% in 2011 to 57% in 2015

¡  54% of travel marketers leveraging from these campaigns

¡  For 72% Indian marketers ‘Websites” is the primary e-Marketing activity in 2014

¡  Content Marketing becoming a hit: 61% marketers say ‘Blogs & Newsletter’ is the most effective tool

¡  100% of the companies with 5000+ turnover find that Behavioral Targeting is effective

¡  33% Indian marketers say over 50% of emails are contemplated on mobile devices

¡  Major Digital Marketing trends being raved about in India include Mobile Apps, Marketing Automation, Social Media, Content Marketing, Location based marketing, etc.

RESEARCH OBJECTIVE 2: To understand Customer Engagement and various factors to escalate it ¡  The research tool utilized for the study of this objective is the Literature Review (Secondary Data Method)

CUSTOMER ENGAGEMENT

¡  Is a surest path to loyalty

¡  Every aspect of the brand is geared toward what customers want from it

¡  Is the profundity of the relationship a customer has with a brand

¡  Online Customer Engagement: "Repeated interactions that strengthen the emotional, psychological or physical investment a customer has in a brand" (Sedley, n.d.)

Characteristics of a Highly Engaged Customer:

o  They’re Purchasers

o  They’re Responders

o  They’re Evangelists

o  They’re Loyal

Need for Customer Engagement NEED

AWARENESS

INTERACTION

EXPERIENCE

ENGAGEMENT

LOYALTY

¡  Once aspect of the customer lifecycle, which is very crucial is Engagement

There is a need for Customer Engagement because:

o  Customers are Increasingly Distracted

o  Customers have Increased Expectations

o  Customers are listening to new models of Authority

o  Customers are Established New Communities

The Customer Lifecycle

Customer Engagement Strategies ¡  There are various strategies to enhance Customer Engagement Online but three are particularly

undertaken for further research

1. CONTENT MARKETING

¡  Is a strategic marketing approach focused on creating and distributing content

¡  The purpose is to draw in and hold customers by consistently creating and curating significant content

¡  Aim is to change and upgrade customer conduct

¡  You do not pitch or make offerings to the customers, you convey information that makes your purchasers more intelligent

Content Marketing use:

o  Social Media

o  Public Relations

o  SEO

VISUAL CONTENT

¡  Communication methods that incorporate graphics snatch the eye

¡  Impacts the engagement more

¡  Visual Content can be added to any medium, such as, pictures in presentations, recordings on sites, representation of internal organization communications, etc.

¡  Visual Content builds trust and is easy to engage with

2. SOCIAL MEDIA

¡  Focuses on bringing information, photos, videos and other content to the audience online

¡  Unlike other mediums, social media brings the content as a conversation, making the audience participants

¡  Ability to upload content, discuss, edit or rate each other’s content

¡  Social Bookmarking, Facbook, Twitter, Blogs, Reviews and opinions on Social Media are making the customer more and more engaged

Ways to improve Customer Engagement through Social Media:

o  Share an Authentic Brand Voice

o  Remember the Context

o  IMAGES!

o  Engage Fans

o  Ask Questions

o  Provide Customer Service

3. WEB DESIGN

¡  Means planning, creation and updating websites

¡  Incorporates information, architecture, website structure, user interface, website layout, colors, fonts, imagery and as well as icons

¡  It is essential because 35% users fail to complete simple tasks on an average website

¡  Lack of information and small fonts create problems

¡  The best web design practices are followed by the hotel industry

¡  Since Internet usage has increase immensely, mobile retailed has risen by 312% in 2015 (Landricombe), its essential to have an impressive and a responsive web design

Findings ¡  Social Media, Web Design and Content are equally important for engagement

¡  Social Media helps the customer converse online

¡  Gives them the freedom to make a conversation, upload their own opinions and content, edit others’

¡  Content is crucial for imparting information

¡  Visuals keep the customers attached to your website

¡  Web Designing makes it easier for the customers to navigate and should be visually impressive

¡  All of these aspects adds to create a highly engaged customer on a website

RESEARCH OBJECTIVE 3: To analyze the appropriate Digital Marketing tools to enhance Customer Engagement on a retailing website ¡  The research tool utilized for the study of this objective is the Questionnaire

Survey (Primary Data Method)

¡  The first two objectives already explored the Digital Marketing strategies and aspects covering Customer Engagement

¡  This objective with the help of a questionnaire survey takes the customer’s perspective on the same

¡  Questionnaire was filled by 130 people between the age groups of 20-29, 30-39, and above 40

¡  The questionnaire incorporates:

o  Buying Behavior (their purchasing period, products they usually buy online, preferred online retailing website)

o  Customer Engagement & Digital Marketing (factors that make the customers stick to a website and Digital marketing tool that influences them to make the purchases)

Findings ¡  57% of the respondents were

between 30-39 years of age

¡  Purchasing period: Once a month (42%), Once in two months (40%), Once in a quarter (42%)

¡  This explains that online transactions are increasing

¡  According to the survey, people mostly purchase apparel & lifestyle products online (46.2%), followed by Consumer electronics and books/videos/music (21.5% and 10.8%)

0  10  20  30  40  50  60  70  

Products  

Percentage  

14%  

32%  

9%  

32%  

11%  

2%  0%  

Retailing  Websites  

Flipkart  

Snapdeal  

Myntra  

Amazon  India  

Jabong  

ShopClues  

Other  

¡  Spending is also decent: 40.6% spend between 2000-4000 rupees per transaction, 26.6% spend 4000-6000 rupees, 23.4% spend 6000-8000 rupees and 9.4% spend above 8000

¡  Amazon India and Snapdeal surpassed other websites with 32%

41%  

27%  

23%  

9%  

Percentage  

2000-­‐4000  

4000-­‐6000  

6000-­‐8000  

Above  8000  

¡  For exploring the aspects of customer engagement, the survey resulted as follows:

¡  For Social Media

o  Mean= 26

o  Skewness= -1.67

o  Kurtosis= 3.49

0  

10  

20  

30  

40  

50  

60  

70  

1   2   3   4   5  

Social  Media  Marketing  

Social  Media  Marketing  

RECOMMENDATIONS ¡  Since the growth is evident, it is recommended to put in

more time and efforts to make the websites more creative and easy

¡  Marketers should put more though in Visual Content to make their brands unforgettable

¡  It is recommended to carry the study forward