Marketing Communications

Erik Aeyelts Averink looks at the need for companies to use the Internet in their growing struggle for new and effective marketing communications.

Targeting an audience is growing ever more difficult in today’s marketing-savvy society. The public are immune to many of the tried and tested marketing methods of old and it is increasingly difficult to attract and hold their attention. Unsolicited email is often either caught by spam-filters or deleted unseen. Direct mail – even for the most worthy of causes – can be seen as a nuisance and more often than not it goes straight in the bin. Worst of all for advertisers is the advent of personal video recorders and Sky+, which give the ability to edit adverts out of TV programmes.

This all means that companies are intently searching for different ways to reach new customers and ensure their message gets across. However, organisations can sometimes spend so much time attempting to reach new customers that there is a danger they may overlook existing ones.

Studies in several industries have shown that the cost of retaining an existing customer is only about 10 per cent of the cost of acquiring a new one. Not only that, but a 5 per cent improvement in customer retention can cause an increase in profitability of anywhere between 25 and 85 per cent[1]. These statistics prove that by targeting customers who already have some loyalty towards a company, brand or product, an organisation can spend less money but reap more in return.

So what can companies do to woo these all-important existing customers? A perfect marketing tool for a public jaded by traditional marketing forms is the Internet. Its ubiquity means it gives access to people like no other form of customer communication and can help to build close relationships and encourage loyalty.

Forrester suggests three ways by which the Internet can help achieve success in marketing. By providing customers with choice, consistency and continuity, their needs can not just be met, but exceeded. These three needs can be fulfilled by clever use of Web Content Management systems, to deliver exactly what the customer wants. But what do these buzzwords mean to marketers, and how can Web Content Management help them achieve their goals?

First of all, companies should give customers choice. They need to communicate with them through multiple channels such as Web, email and traditional print. But efforts should not stop there – let the customer choose the information they receive. This choice can be given by having a Web site that allows customers to manage their own profile. Research has shown that customers will spend more time updating their personal information for trusted companies and that they feel in control and reassured when they can personally select the information they wish to receive[2].

By instituting ‘permission based marketing’ the problem of an email ending up in a spam-filter is resolved. The customer can simply opt-in to receiving email communications and with the right Web Content Management, customers can also choose how often they receive emails – avoiding the problem of a customer cancelling their subscription because communication is too frequent and has become irritating. By telling customers in the initial set-up stage that they can stop receiving emails at any time, they are more likely to sign up.

While these tactics can help to reach a customer, it is more difficult to inspire their loyalty. The key is to make them feel like an individual – taking it a step further than the direct mail that pops through the letter-box addressing the home owner by name. By using Web Content Management to track which pages of a Web site a particular user views, it is possible to personalise the Web site for each visitor and to produce Web pages that match the interests of the visitor ‘on the fly’. Of course as a result of this, companies can send out emails addressed to a specific customer, containing information they are likely to be interested in and providing links to relevant offers and information. Email marketers have been known to improve their click-through rate to between 50% and 60% by personalising communication[3].

So who has used the ‘choice’ approach successfully? Haven Holidays has revamped its Web site to include a section entitled ‘My Account’ where customers can input their details to allow them to book online. However, it also means that if customers ‘opt in’ to receiving communication from Haven this can be personalised with information previously gleaned – such as past holidays, past information requests and so on. By doing this Haven ensures that customers feel valued and that personalised offers keep them loyal. The aim of implementing this choice was to improve Haven’s conversion rate – this has worked – the rate has gone up by 36 per cent.

The second way to market well using a Web site is to ensure consistency. Every marketer knows a consistent approach reinforces a company’s brand and by doing so promotes customer recognition. There are several ways in which a company can enforce consistency. The most obvious of these is to make sure the layout is consistent on all Web pages and on all associated Web sites. However, really good Web Content Management goes further and ensures that companies provide localised and multilingual marketing communication. Customers need to be addressed in their preferred languages and so marketing material must be produced in accordance with this need. The right technology can be used to create local version of Web sites, email newsletters and printed marketing collateral – all without losing the branding and messaging that a company needs to ensure consistency.

A good example of a company who used Web Content Management to improve its communications’ consistency is Orient Express. Before managing its Web presence, Orient Express had 30 disparate local Web sites representing its brand. Customers were being turned off by the inconsistent look of the brand and Orient Express felt that they needed to centralise their Web sites and bring them all up to the same consistently professional standard. As a result of this action, online bookings went up ten-fold.

Finally, point three of Forrester’s guide to good Internet marketing is continuity. Marketing is most effective when customers can move seamlessly from one channel to another, which is proven to increase the chance of purchase.[4] For instance, if a customer receives an email telling them about a new product, there should be a link in that email that will take them directly to a webpage where they can buy it. Or if the company do not have a Web-store, perhaps the email might contain a coupon for offline purchasing, giving the opportunity to convert marketing into sales.

Web continuity can also be used in a more research-based way by implementing a system that can track content across each channel. This means when a customer accesses content the circumstances are recorded; as a result, popular content can be identified and so displayed prominently. It is also possible to work out, for example, that a specific age group looked at a specific product. This information can be used in subsequent marketing strategies.

All of these processes can aid the task of marketers trying to go beyond traditional marketing strategies. Following these guidelines means that any messaging problems that might be encountered due to the use of different mediums, can be avoided. In fact, the tactics described give innovative outlets for messaging which should improve the traction for the communication messages from any company, product or brand.

Of course, this article discusses retaining and improving relations with existing customers, but having a really strong Web presence means that any new customers to the brand will be encouraged to return. What is more, when a good relationship is thoroughly established with existing customers, the undeniable strength of word of mouth and reputation will attract new ones. VisitBritain used Web Content Management and the techniques mentioned to improve its Web site and marketing. Since then revenues judged to have been created by word of mouth have increased two-fold. This just goes to show that investing in an effective and impressive Web site and the communication that goes with it, can reap considerable rewards. 

[1] Study by Reichheld and Sasser (1990) ‘Zero defects: quality comes to services’, Harvard Business Review. http://en.wikipedia.org/wiki/Relationship_marketing

[2] Source available if necessary

[3] Source: http://www.e-consultancy.com/news-blog/newsletter/2628/andrew-robinson-on-email-marketing.html#27370

[4] Source: http://ezinearticles.com/?Boost-Email-Open-Rates-and-Clickthrough-Rates-with-Transactional-Emails-in-Online-Marketing&id=488384