Professional Documents
Culture Documents
DM A2
DM A2
INTRODUCTION.............................................................................................................2
MAJOR FINDINGS..........................................................................................................3
TASK 1........................................................................................................................... 3
1.1 Establish activities in digital marketing plan and contribute multi-channel
capabilities...................................................................................................................3
1.2 The evolvement of omni-channel marketing.......................................................13
TASK 2......................................................................................................................... 16
2.1 The methods of measurement and performance metrics......................................16
2.2 The assemblage of activities to enhance performance in digital marketing.........19
CONCLUSION................................................................................................................ 22
INTRODUCTION
This assignment is divided into two distinct parts. Specifically, in part 1, we mainly show
how to set up activities in digital marketing plan and understand more about omni-
channel. The knowledge given will be applied in practice with Zara's model. Part 2
mainly covers how to measure the performance of digital marketing campaigns. In
addition, assignment also points out some problems that businesses are prone to
encounter in the measurement and comparison process with problems encountered by
Zara.
MAJOR FINDINGS
TASK 1
1.1 Establish activities in digital marketing plan and contribute multi-channel capabilities
a) Digital hardware landscape and the evolvement of digital platforms and online
interchanges in Vietnam
In the 4.0 era, technology has become one of the most important factors influencing
world change. Any industry or company is continually improving the level of use of
digital platforms so as not to become behind the competition. In Vietnam, the popularity
of digital hardware is increasing day by day, helping them increase the interaction with
their target customers
According to (Ha, 2020), Vietnam is one of the countries with a high proportion of
smartphones in the region with nearly 50%. Specifically, according to the General
Statistics Office, Vietnam's population as of February 2020 reached 97.4 million people,
with more than 43.7 million people owning smartphones of all ages. It can be seen that
the habit of using technology products, especially smartphones, takes up a large part of
the day. In addition, laptop/desktop computer/tablet is also popular technology items in
Vietnam when they are not only a tool for entertainment but also to support work
effectively. In addition, the Government is also proposing to popularize smartphones to
all Vietnamese when the 5G network is increasingly thriving to facilitate the management
of the people (Nguyen & Van, 2020).
Online shopping platform in Vietnam today is growing and gradually becoming a key
retail method for businesses wishing to catch up with the modernization of the world.
Specifically, according to (Vu, 2020), the total number of visits to online shopping
applications in Vietnam in the first half of 2020 reached 12.7 billion, highest ever when
user demand and trends change dramatically after a pandemic. The COVID-19 pandemic
has changed the shopping habits of many Vietnamese people, making them gradually
accept online shopping instead of traditional shopping. Even though they have to pay
extra shipping fees on ordered items, they are happy to use this method due to its
convenience and safety, especially during the outbreak. Therefore, more and more e-
commerce channels are opened such as Shopee, Lazada or Sendo, Tiki ... with many
promotions to promote customers' purchases. Besides, social networks are also the place
to provide much information about buying and selling products, such as Facebook,
Instagram, Youtube, Twiiter. However, in Vietnam, Facebook and Instagram are still the
two most popular social networks. The popularity of digital hardware and multi-channel
platforms or online transactions greatly influenced the growth of E-CRM.
b) E-CRM
Definition
Opportunities of E-CRM
Customers are switching between business transactions on traditional and online channels
with increasing frequency. The E-CRM system is the place to support multi-channel
contact points with businesses and the question is how to provide a consistent experience
for customers. Although the company can provide many convenient scoring interaction
paths for the customer, the customer is forced to repeat the activity, causing more work
problems if the organizational parts are out of sync. Customers hope that if they convert
into an alternative channel, they can be able to get a quick and accurate response.
However, businesses need to make sure there is no change in the customer interaction
process to avoid spending a lot of time getting used to them. Therefore, effective omni-
channel management is gaining more attention as it becomes the hallmark of a successful
CRM strategy in the enterprise.
Challenges of E-CRM
E-CRM systems help businesses interact with customers through digital technology and
this has put a great pressure on ensuring synchronization when buying. Despite a lot of
help from virtual assistants or auto consultants, they still cannot build trust with
customers like traditional sales methods. Clients may provide little personal information
due to fear of personal information security so companies should take note of this clause
to attract customers.
E-CRM is essentially just a small part of the CRM landscape of the business because
CRM is enabled using new electronic and interactive means. The online channels are
presented as part of the CRM quiz but it will be increasingly important for businesses
now to learn how to manage customer relationships as these channels grow and the
number of electronic customers increases. E-CRM is currently the most advanced method
applying the advancement of digitizing the priority of most businesses because of the
impact of electronic innovations on sales and services in parallel with companies
increasing investment in Internet-related distribution. The E-CRM was then seen as the
part that provided the structure for the strategic development of the technology-mediated
business relationship marketing framework.
- Online customer services are created including FAQs, callback and chat support
- Quality of services online is controlled so that customers can experience the best
service for the first time, encouraging the next purchase.
Step 1: Set goals and track (contribute goals and give a detailed implementation
direction to measure campaign success, thereby providing the most effective
feedback mechanism)
- In this scenario, Zara will launch 2021 spring clothing collection and they set two
clear goals. First, for an overarching marketing communication target for the
whole year 2021, Zara must reach a certain number of leads and higher than in
2020 to evaluate a brand's long-term performance through data about the number
of visitors on search engines. Second, the specific communication goal for this
spring campaign is to get closer to the new customer segment aged 18 to 35 and
turn them into real customers.
- First, thanks to tools to collect and analyze data about Internet customers such as
Google Analytics, IP addresses on personal computers... Zara can determine the
number of clicks on their official website. Thereby, they easily control
information about the brand coverage and the ability to reach target customers set
out previously.
- Second, Zara needs to calculate the success of your campaign by considering the
bounce rate and conversion rate to action through the percentage of visitor from
various sources. The formula for this calculation is to divide the conversion
events by the number of visitor sessions over a specified time period.
- Zara continues to pay attention to communication costs by applying cost per
thousand (CPM) to own positions to display ads on the Internet through the
number of sessions
- The acquisition cost measures need to be tightly controlled to ensure high rates.
So I choose to adjust the cost of each visitor towards larger goals.
- Zara needs to calculate Return on Investment (ROI) using a formula that divides
the profit generated from the referral by the amount spent on the ad with the
referral.
- Finally, Zara needs to measure the customer's brand awareness, advertising
recall, brand preference and purchasing ability.
Step 2: Determine campaign insight (analyzing potential customers and competitors).
Zara can be assessed through the following factors:
- Site audience reach and composition: Through customer information including
gender, age, economic potential in the online audience, Zara can analyze them on
different websites.
- Online buying behaviour and preferences: Take advantage of Forrester Internet
User Monitor or TGI.net to find out customers' buying preferences then
recommend suitable products.
- Customer media consumption: Take advantage of Hitwise to analyze online,
offline media platforms for different target demographics.
- Customer search behaviour: Shorten key words or phrases that cover all content
about the product and company to convey the message
- Competitors' campaign activities: Understand thoroughly the work that
competitors have done in current and previous advertising campaigns.
- Competitor performance: Update competitor insights and then analyze how they
apply tools and techniques to reach and capture target customers' attention
- Digital profiles: Target customers' digital habits and preferences are continuously
archived and upgraded. Zara needs to find out customers 'visitor trends through
data on competitors' websites and social media
- Personal profile: control customer’s personal profiles including customer
database, content preferences to analyse their needs, wants and preferences when
using technical channels digital.
Step 3: Set segmentation and targeting (define the target audience to focus on in the
ad campaign)
- Relationship with the company: continue to interact with customers who have
been using Zara products. Besides, Zara also needs to pay attention to new
potential customers to expand the brand's coverage
- Demographic segmentation: For this new collection of Zara, they focus on
customers aged 18 to 35 of all genders and living in big cities. With this group of
customers, they have more access to the Internet, consistent with digital
marketing set out earlier
- Psychological segmentation: Customers are sensitive to the development of
fashion and also love to buy new fashion products.
- Value: For Zara, their goal is to provide customers with the best of trendy
designs in the shortest time at low prices. They can also enhance the value of the
brand to create even more wonderful customer experiences
- Life cycle: send emails, make phone calls and receive notifications about new
products via app and website to advertise products and support customer care
- Behaviour: Using search engines on the Internet and social networks, Zara will
learn the favourite reading content of each customer, personal data including
their preferences and habits through follow, like and share. From there, Zara
easily identifies customers' desires to make products that match the needs of the
market. For behavioural targeting, I will apply pay-per-click search engine
marketing to identify customer behaviour through search terms and clicks.
Step 4: Develop offer and message (classify information, messages and offers of new
product). Zara can apply CODAR framework for integrated marketing
communication
The integration of online and offline communication channels requires proper tuning to
create consistency in product messaging. Zara's integrated communication plan is
assessed through the 4Cs model of (Hanlon, 2020) including:
According to (Winkler, 2019), omni-channel is not just about selling in many different
channels, but it is also the synchronization of business products across sales channels and
works smoothly on a management system to motivate in buying for customers. For omni-
channel, they put the customer at the center of interest instead of the company's product.
Omni - channel is the spread between channels and providing the customer experience
when buying goods within and between channels in the system.
Benefits of omni–channel
According to (Vincle, 2019), there are some of benefits when a company applies omni-
channel including:
For customers, they always want to experience the feeling of buying in the most
convenient way and by applying omni-channel, businesses can achieve that. They are
allowed to take advantage of all the channels offered by the business to easily access the
product, while it also understands the customer's desire to improve the product to be more
and more relevant. According to Mgage, if businesses in the market today successfully
apply omni-channel, they can increase their customer retention rate up to 13%.
- Increase sales
When customers find it easy to buy, they will increasingly love it and make it a habit.
This will help businesses increase sales more with each product. Research conducted by
Harvard Business Review mentioned previously found that omni- channel customers are
30% more valuable. Likewise, associated with the highest customer retention rates, it's
worth remembering that repeat customers, even if they make up only 8% of the total,
generate 40% of the sales.
Customer data is a tool to help businesses understand details of each individual buying
through their purchase behaviour tracking. Businesses that rely on information gathered
through the use of omni-channel can suggest products or promotional information to
customers, thereby motivating them to buy more. Customers are more likely to be
attracted to information that is relevant to them and feel special about their personal
preferences.
Nowadays, online and offline cannot be just two separate arrays, everything has to be
connected together for the best performance. The ultimate goal of every business is not to
generate incredible sales in a particular channel, but to unify customer purchases across
all channels and make it flow naturally and smoothly in the channel your customer
chooses. This type of interaction easily improves customer relationships and makes them
engage and interact with the company as they wish.
Interaction is a sign that this customer will go through your sales process like this: from
leads to customers, from one-time customer to repeat customer, from repeat customer to
customer goods actively introduce you to their acquaintances.
Omni–channel in Zara
Zara is really suitable as a typical business for applying omni-channel strategy to the
sales process. While some other retailers in the market choose to distribute their products
online or offline, Zara succeeds in driving customers' purchases on both 2. They own a
chain of close 2000 major stores around the world. Stores have a similar way of dividing
and arranging things to create a sense of intimacy for visitors because they will lessen the
feeling of being surprised when visiting an unfamiliar store. However, some special
stores are still applied on the system with a unique style, breaking the way to attract the
attention of customers who are sensitive to fashion and art. On the online part, customers
of Zara can make purchases on the website or app. Zara almost designed the working
mechanism, arranging the positions of the operations in these 2 channels quite similarly
so that customers do not need to learn too much when changing between the two
channels alternately. In addition, according to (Natarajan, 2019), Zara also bring the
functions of online sales channels into real stores including:
- Sales assistants walk in the store and bring iPads for customers to choose from
clothes that are not available in the physical store, requiring the store employee to
notify the customer when the store owns the item that the customer requested.
- With "smart mirrors" installed in many corners of the store, customers can easily
see themselves in multiple angles when wearing clothes without trying
- Customers can pay for themselves after buying without the presence of the cashier.
- Some customers are not interested in paying shipping, Zara is ready to assist
customers to order online and receive goods when they arrive at the store. In
addition, they are supported with automatic receipt scanning and robotic package
scanning
Zara's omni-channel strategy gives their customers a seamless experience integrating all
sales channels. This has contributed in large part to increasing the likelihood of a return
to the brand and improving Zara's service quality. It can be said that Zara's strategy is
extremely seamless because they have spent a lot of effort testing different channels and
finding a complete integration method for the channels.
TASK 2
2.1 The methods of measurement and performance metrics
Performance measurement
KPIs
Key performance indicators (KPIs) are defined as a set of quantifiable measures used to
gauge a business's overall long-term performance. KPIs helps Zara determine a
company's strategic, financial, and operational achievements, especially compared to that
of other businesses in the same industry. There are normally 3 different kinds of KPIs
including: The Marketing Campaign KPIs, Company KPIs and Teams KPIs:
- The Marketing Campaign KPIs: In corporate campaigns, KPIs are often set right
from the start based on relevant goals. For Zara, this is often briefly represented in
annual reports, official website, hit rate, and bounce rate across different digital
platforms.
- Company KPIs: Zara's fields of activity are of primary concern. KPIs in customer
relationships demonstrate their enduring support for products, and they can be
varied to recoup. Meanwhile, for employees working at Zara, it is a tool to
demonstrate employee retention, Zara’s short-term and long-term business goals.
- Teams KPIs: This is a criterion evaluated based on the company's profits and
revenue, the level of brand awareness of the customer. These KPIs are especially
for the marketing and sales team because they are in direct contact with customers.
Team KPIs are normally analyzed by tools of Google Analytical with their
provided extensive data.
Measurable metrics
Measurable metrics continually reflect a business's progression through its business goals
and the ability of success over a specified period of time. It is usually expressed through
the following factors:
Analytic platforms
Currently, the Internet has a number of popular platforms used as a tool for data
collection and analysis including:
To ensure that customers collect enough information about the satisfaction rating when
experiencing products, Zara can apply SurveyMonkey - a very popular tool nowadays to
make surveys for customer to feedback. row. After that, they continue to use iPerceptions
to store customer information and update the following customer experiences to generate
time-series data. From there, Zara will evaluate customers' desire to change to products
and improve product quality. However, the weakness of utilizing digital tools to collect
data is low authenticity because customer feedback is often inaccurate or does not fully
represent the aspect they expect the brand to change. Therefore, the advice for Zara is that
they should also apply direct surveys to customers, although it is not really convenient as
above, but it will ensure the accuracy of the data and the multidimensional of
information.
- Situation 1: With senior management's myopic vision, they do not pay much
attention to measuring performance, misidentifying targets, and focusing on cost-
cutting instead of improving efficiency.
→ Select a measure of effectiveness in accordance with the actual situation of the
company
- Situation 2: Failure to understand responsibilities for providing and improving the
system of measurements
→ Establish and control an appropriate mechanism to evaluate performance and
make improvements
- Situation 3: Resourcing problems including deficiency of time, motivation of
employees, the required technology and system integration
→ Data needs to be carefully collected and analyzed to make changes to improve
performance
- Situation 4: Data issues including poor-quality data or data overloaded, limited
data compared to benchmarking
→ Take advantage of modern software to collect, process and filter data in order
to minimize data problems
To ensure that companies will not encounter the same problems as above and increase
productivity, managements need to put in place a consistent, normally four-step
measurement process:
- Step 1: Create specific goals that give detailed directions for your digital
marketing jobs
- Step 2: Set up a performance metering system that includes the right data
collection in preparation for the next step.
- Step 3: Evaluate performance through data analysis and choose the appropriate
marketing method with the results
- Step 4: Through the results of previously evaluated performance, propose work to
combine the operation of the channels accordingly.
In the situation of Zara, although they did a great job gathering customer information
with customer experience surveys, they still had problems with analytics and data
processing. Specifically, when customers respond to surveys about their bad experience
with a brand, Zara often responds slowly to customers. Some customers also agreed that
they received no response when responding badly to the product or service. This will
create a corollary that customers will gradually lazy to respond to the product, thereby
reducing the interaction between the customer and the brand. To mitigate this problem,
Zara can create direct customer interactions or shorten distance with customers such as
offline surveys or sending SMS/E-mail for customers.
CONCLUSION
In conclusion, part 1 gives me an overview of digital hardware lanscape and the
development of media channels in Vietnam recently. In addition, I also understand more
about E-CRM when assessing its opportunities and challenges in the current context.
Finally, by creating a plan for Zara, I not only understand more about the steps to create a
digital marketing plan in practice, but also understand more about the digital marketing
aspect of Zara through 6 steps. Part 2 is the place to evaluate the success of Zara's digital
marketing plan and evaluate the problem Zara faces when measuring performance,
thereby drawing valuable experience for them.
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