When a Waukesha retailer wanted to learn more about buying trends for 2008, he used an online survey to augment his other market research. The survey linked to his company web site home page, and e-mail messages were used to promote participation.
The results? The retailer obtained valuable information about what his clientele would purchase in 2008, allowing him to better prepare for that demand.
But he didn’t just get information about consumer interests. He got actual sales. To encourage survey response, participants were offered a discount on a future purchase. About 15 percent of respondents immediately took advantage of the offer, with others saying they would use the discount on upcoming major purchases.
Companies – both consumer-oriented and business-to-business – long have used incentives to gain market information and foster sales. But the Internet is making that information easier and less costly to obtain than by traditional means – if done right.
This retailer’s electronic marketing campaign is bringing extended value, as well. With e-mails collected and permission granted, his business now has the opportunity to start an ongoing conversation with his growing community. He will track transactions with that community throughout 2008, thus leveraging higher ROI/sale and taking advantage of cross-selling opportunities.
The ongoing conversations will bolster the retailer’s “industry authority” position by providing his community information they want and need.
Through our work with companies such as the retailer mentioned above and with companies in the B-to-B sector, we are finding that electronic marketing and public relations techniques are allowing businesses to revive the “corner store” setting where companies can interact with clients on a personal basis and financially benefit from those close relationships.
Digital dollars
Such use of the Internet to generate business expanded in 2007 and will be more common this year. Data from several national surveys shows that the share of sales and marketing dollars directed toward digital avenues will continue to grow in 2008.
Traditional sales and marketing methods will remain dominant, but those basics increasingly will point prospects to web sites for additional information and to convert interest into sales. The national research firm Forrester, for example, reports that print and television advertising will increasingly drive consumers to web sites.
And those “consumers” include businesses. Research by Enquiro Search Solutions shows “a heavy reliance on online research in all aspects of the purchase cycle” in business-to-business and business-to-consumer markets.
Most business owners and managers know that already is happening. You meet someone at a networking event or otherwise hear about a company that offers goods or services your company could use. What do you do? You go to the web to learn more about the company and to help determine whether it’s a company you want to do business with.
That happens in small and big businesses. Larger companies, in particular, often use search techniques as well as visits to known web sites when they are looking for vendors.
Online impact
That won’t change in 2008. Enquiro’s 2007 research reinforced its initial survey in 2004, and showed that online sources can now have as much influence in buying decisions as offline sources for business-to-business purchases.
Through web site-tracking methods and word-of-mouth information, our clients have become well aware of the role of their web sites in purchasing decisions.
Companies will continue to allocate more dollars to search engine marketing to increase their chances of being found by prospective buyers, according to results of an Anderson Analytics survey of the Marketing Executives Networking Group. Forrester predicts that interactive marketing spending will triple in the next five years.
The challenge for many companies is that their existing web site content is not in sync with current brands, messages, products, services or business strategy.
Further, sites without interactive components to engage interested viewers and prospective buyers send them away perplexed.
Teams or individuals researching purchase options, and who hear about a company or find it via a web search can be quickly unimpressed – and that can mean lost opportunity.
We’ve seen it time and again: A web site reports as “the latest development” something that happened or that was launched more than a year ago. Or a site that has the same content that it had a year ago or maybe even five years ago. Has nothing changed? Web sites are the public face of a business and thus are the 24/7 public relations touch point for businesses.
That’s particularly true for companies that haven’t updated web site news sections – almost making it look like they’ve gone out of business. (Web site newsrooms, or pressrooms, are not just for the media. Studies have shown that prospective buyers view newsroom information as more straightforward and credible than sales copy elsewhere on those sites. Some of our clients even use pressroom information as sales support material delivered on CDs.)
On the other hand are companies that engage in “content marketing,” using their web sites and other digital media to project their expertise. Such “authority branding,” once solely conveyed via printed newsletters and brochures, speaking engagements and other personal contact, is increasingly being projected by web sites, e-mailed client alerts, blogs and other interactive media. Forrester’s research notes the “meteoric rise” of YouTube over the past year in pointing to online video as a wave of the future.
E-mail marketing
E-mail marketing, despite the challenges of spamming and volume (we have all received too many “newsletters” which are normally not very instructive or important), will hold a prominent spot in 2008 marketing tactics, according to Marketing Sherpa, another national research firm. When done right, e-mail marketing yields good acquisition and retention results, with a high probability of good return on investment.
Marketing Sherpa lists search engine optimization (SEO) as second in importance with almost the same ROI as house e-mail marketing. SEO is an effective way to increase exposure of brands to targeted audiences. Even though it has a high “hard-to-gauge” measurement regarding results, its low cost to entry is very appealing to many companies.
“Paid search marketing,” which is third in importance in Marketing Sherpa’s preview of 2008 tactics, has a high direct measurable result and hence will continue to grow in importance. The tactic is highly important for many marketers. Google and other search engines will continue to create paid opportunities.
Public relations, which is fourth in ROI measurements in the review, has high “hard-to-gauge measurements” in the results percentage. But it continues to be unmistakable in its concrete effects on brands, creating authorities and various other uses. We would argue with the “hard-to-gauge” comment, since we have executed several electronic public relations campaigns that brought measurable, positive results.
Mobile options
As businesses seek ways to connect with audiences, it’s no surprise that mobile devices will play a big role in serving those connections in the coming months and years. Just look at any group of young people; they seem to be never without their cell phones, which are becoming more powerful and broader media devices.
And it’s not just young people. Cell phones, Blackberries and other devices are ever present among business people of all ages.
Companies are engaged in initiatives to reach those audiences in ways that will build community without being perceived as annoyances.
Marketing is still about knowing your audience. A growing part of that is knowing how your audience uses online and wireless communications tools. Those devices will continue to create communities that have specific interests and behaviors. Companies will find ways to satisfy those interests in ways that will make them part of the communities.
