Digital Marketing

Strategy, Implementation and Practice

Eighth Edition

Part 2
Digital marketing strategy
development

Chapter 6
Data-driven relationship
marketing using digital
platforms

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Chapter 6 - Relationship marketing using
digital platforms
Learning objectives and topics
• Assess the relevance and alternative approaches for
using digital platforms for customer relationship
management by encouraging interactions through
social media, mobile messaging and email
marketing
– Introduction
– Concepts of data-driven customer relationship marketing
– Customer lifecycle management strategy

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 Chapter 6 Relationship marketing using
digital platforms (Continued)
• Evaluate the potential of data-driven marketing, artificial
intelligence and ‘Big Data’ using digital technology and
marketing automation to deliver more relevant interactions
and encourage customer loyalty
– Data-driven marketing techniques
– Applying artificial intelligence and Big Data to support data-driven
marketing
– Using data analysis and targeting techniques to increase customer
loyalty and value
• Assess how to integrate social and mobile interactions to
develop social CRM capabilities
Case study
– Using 6. Buffer:
social media tofrom idea
improve to paying
customer business
loyalty customers in
and advocacy
seven weeks
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Channels supporting customer
engagement

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 Benefits of using CRM to support
customer engagement?
• Targeting more cost-effectively
• Permission marketing
• Mass customisation of the marketing messages
• Increased breadth and depth of information
• Deeper customer understanding
• Lower cost
• Delivering loyalty programmes
• Gamification

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CRM technologies and data management

Three main types of customer data held in a CRM

system:
• Personal profile
• Transaction data
• Communication interaction data (behavior showing intent)

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The goals of marketing orchestration

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 Concepts of data-driven customer
engagement
1. Marketing automation. Marketing automation and CRM systems
such as Salesforce and Eloqua can be used to nurture prospects by
sending a sequence of targeted email communications after they
show initial interest in a service, for example after they download a
case study or attend a webinar.
2. Sales force automation. Sales representatives are supported in
their account management through tools to arrange and record
customer visits. Today, within business-to-business marketing, these
include support for social selling through services as LinkedIn
Navigator and account-based marketing (ABM) for larger
organisations with multiple people in the buying unit. Automated tools
also support sales cadences, which make it easy for sales people to
send updates via email and LinkedIn to nurture prospects.

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 Concepts of data-driven customer
engagement (Continued)
3. Customer service management. Representatives in contact centres
respond to customer requests for information by using an intranet to
access databases containing information on the customer, products
and previous queries. It is more efficient and may increase customer
convenience if customers are given the option of web self-service,
i.e. accessing support data through a web interface.
4. Customer communications management. Managing
communications integrated across different channels including direct
mail, email, mobile messaging, personalised web messages and
social networks.
5. Analysis and reporting. Reporting on the volume, quality and value
of leads in the sales pipeline through techniques such as lead scoring
and grading, which we describe in the section on permission
marketing.

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Email marketing – still many opportunities

Source: Smart Insights (Marketing Intelligence) Ltd

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Customer lifecycle management strategy

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 Permission marketing
According to Seth Godin in his 1999 book, Permission marketing
is . . . anticipated, relevant and personal [and timely]
The stages of ‘dating’ the customer are:
1. Offering the prospect an incentive to volunteer;
2. Using the attention offered by the prospect, offering a
curriculum over time and teaching the consumer about your
product or service;
3. Reinforcing the incentive to guarantee that the prospect
maintains the permission;
4. Offering additional incentives to get even more permission
from the consumer; over time;
5. Using the permission to change consumer behaviour towards
profits.

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Classic permission-based approach:
retail example

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 ‘E-permission marketing principles’
Principle 1. Consider selective opt-in to communications.
Principle 2. Create a ‘common customer profile’.
Principle 3. Offer a range of opt-in incentives.
Principle 4. Don’t make opt-out too easy. (Offer a
communications preferences centre).
Principle 5. Watch, don’t ask (or ‘sense and respond’).
Principle 6. Create an outbound contact strategy.

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Touchpoint options for achieving
permission

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Lead scoring and lead grading

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 Automated contact strategy example

Source: Kath Pay, Holistic Email Marketing (2016) What is lifecycle marketing?, https://www.holisticemailmarketing.com/blog/what-is-lifecycle-marketing/ (accessed 30 July 2018)

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An automated email sequence

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Targeting options to increase
relevance

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 AI options

Source: Smart Insights (2021) 15 Applications of artificial intelligence in marketing for 2022, Smart Insights blog article by Dave Chaffey, 25 August

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Satisfaction and loyalty drivers

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Different levels of engagement,
e.g. for online banking

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 Cohort analysis example
Which month is most concerning?

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Lifetime value segmentation

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Lifetime value example

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RFM Analysis

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 Social media touchpoint opportunities

Source: Smart Insights (Marketing Intelligence) Ltd

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 Social media activities requiring
management:
Activity 1 Define listening and reputation strategy
Activity 2 Transform the brand through social media
Activity 3 Acquire new customers using social media
Activity 4 Increase sales to existing customers
Activity 5 Enhance customer service through social media

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Using social media to improve customer
loyalty and advocacy

Source: Altimeter (2010)

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 Buffer case study

Source: Buffer.com

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 Buffer case study

Questions
1. Explain the data-driven customer acquisition and
retention techniques that Buffer used to grow the
company.
2. How has Buffer used social media and content
marketing to grow the business?

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Summary of elements of CRM strategy:
• Permission marketing
• Personalisation and mass customisation
• Using digital media to increase customer loyalty
• Determining what customers value
• The relationship between satisfaction and loyalty
• Measuring the voice of the digital customers
• Differentiating customers by value and engagement
• Lifetime value modelling
• Product recommendations and propensity modelling

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