Monthly Archives: May 2008

Relationship Marketing

 In the competitive market customers usually have many options for the same product or service to choose from. In such case where the customer is entitled to make a selective decision, businesses try to maintain their clients by providing comparatively better products and service which is known as relationship marketing. Relationship marketing is the strategy of improving the relation with the existing or key customers than trying to find new customers (direct marketing). Relationship marketing uses various techniques like sales, marketing, customer care, communication etc to study the need of the customer and how it can change under various circumstances. It is all about maintaining and building trust with the customers. Once customers trust on your product or service, their chances on switching to other company is relatively less. According to a research the cost of retaining an old customer is much less than the cost of getting a new customer which is the key focus of relationship marketing.

Relationship marketing should be:

  • Personalized: The messages you send to your customers via direct mail, phone call or email should be meaningful and connect in order to maintain a good relationship.
  • Targeted and Relevant: You should market according to the target like whether they are prospects or clients.
  • Interactive: Interaction with your customers is important. You hear their feedback, analyze and work accordingly. If your customers or prospects respond to a request, you offer them discounts or other facilities to make them feel valued.

Relationship marketing is one of the best forms of marketing. It benefits you and your prospects. It saves on cost. The cost of maintaining an old customer is 10% of that of marketing for new customers. When you maintain a trust within your customers, there are chances of them recommending it to others also known as Viral Marketing. With relationship marketing there are higher conversion rates (the rate of changing a prospect into client).

There are various stages involved in the process of relationship marketing:

Interaction »» Communication »» Valuation »» Termination

Awareness »» Comparison »» Transaction »» Reinforcement »» Advocacy

You can use relationship marketing approach to customize programs for individual customers. For an example: You have a regular visitor/customer on your site, at some point she stops. There’s a point to ponder why this certain customer has stopped visiting your website, is it your content or has she found an alternative source or is she just not interested anymore. You should check on this or may be interact with the customer and get her feedback. If making some changes or improving some aspects of your site will bring this customer back then your goal’s been achieved, if not you continue working towards it. When this customer actually purchases something, then you can take this as a very significant change in behavior. You have achieved a better relationship now. When this happens you can thank the customer for the trust she has displayed and perhaps provide a second purchase discount or other benefits so that this customer sticks on. If you can track customer behavior or predict them you can start a better marketing campaign accordingly. The cost of this process is less compared to other marketing methods and the money you spend is more effective as well. You can divide the type of customers into different groups like prospects, customer, client, supporter, advocate and partner which is known as “The relationship ladder of customer loyalty”.

There are various software developed to facilitate customer relationship management (CRM). You can make use of CRM software to track their tastes, activities, preferences, complaints etc.

Relationship marketing is all about building and maintaining relationship with the committed customers and clients. Once you have turned a prospect into a customer, you should be able to make the relation better. The benefit of this is it is much cheaper than to seek new customers. You can build better relation with your customers by focusing on their needs with the help of relationship marketing.

MAY 22, 2008 ISSUE #11

Behavioral Marketing – Behavioral Targeting

In the competitive business world it is very important to understand customer behavior in order to predict their desire and requirements. Behavioral marketing is the term used to describe the marketing strategy adopted by advertisers to make their campaigns more effective. Behavioral marketing lets you get in front of your target audience when they are most likely to purchase your product or service. In behavioral marketing, the information is collected based on individual’s web browsing behavior such as the searches they have made or the pages they have visited. This information is then used to decide which advertisement to be displayed to this individual. The advantage of behavioral marketing is that it delivers the advertisement to the users who are most likely to be influenced by them. The targeted audience could be based on factors like geography, demographics, the surrounding content etc. Behavioral marketing are also used on ecommerce or retail sites as a method to offer the relevant products and promotions on a visitor by visitor basis. Behavioral marketing focuses on mainly four types of customers:

  • Economic Shoppers: These are the shoppers who are interested in product quality, prices, value and other economic factors.
  • Ethical Shoppers: These are the shoppers who avoid websites which are unethical.
  • Personalizing Shoppers: These shoppers like to interact with the customer service staff.
  • Apathetic Shoppers: These shoppers avoid shopping and only shop when they must.

There are mainly three kinds of Behavioral marketing:

Based on Webpage Visited:
In this type of behavioral marketing, the behavioral segments are developed by accumulating the information on the type of website the user frequently visits. For example: if a users frequently visits Guess.com or Chanel.com then the user is most likely to be a target for branded or fashion related sites when they are found on other general content type sites.

Based on Keyword Search Or Content Read:
In this type of behavioral marketing, the behavioral segments are developed by finding users who have made a search on specific keywords or read content with those keywords on it. These keywords will be the targeted keywords for your site as well. Based on that information you can run your advertisement campaigns to these users. For example: if a user reads an article about health issues, you can use behavioral marketing technique to target top ten keywords that occupy the concept of the page.

Based on Past Visitors:
In this type of behavioral marketing, the behavioral segments are developed by referring to users who have visited your website. You can keep the record of your visitors by placing simple codes on your website. You can place multiple codes on different pages and create segments for the individual pages like “home page viewers” etc. You can keep in track which page gets more visitors and which don’t, where you lose most of the visitors etc. Using this information you can improve your site quality.

There are mainly two benefits of behavioral marketing: You can enrich the relationship with your existing customers and you can acquire new customer relation too. Behavioral marketing is about providing your services or products to the users who have the desire for it, making it one of the best forms of marketing.

MAY 16, 2008 ISSUE #10

Facebook Marketing | Facebook Advertisements

Facebook started as a social networking site for college and university students in 2004. With more than 60 million active users, an average of 250,000 new registrations per day, an average of 3% weekly growth since Jan. 2007 and active users doubling every 6 months, Facebook is the 7th most visited site in the U.S.A. With growing number of  visitors and users, Facebook is not only favored by the students but by adults, professionals and people from around the world making it one of the best places for online marketing. The various features like applications, groups, events etc are the ways to spread the word out and bring the people in. The best way to learn more about Facebook is by having an account there and trying out various features. Here are the features that you can utilize to promote your products on Facebook.

Profile Page:
You can start off with a profile page on Facebook. Your profile page is the platform where you can express your passion about a brand, a company or a product you want to promote. You can make use of various applications, post photos, provide work info, personal info and provide appropriate description about your product. Facebook is a place where people stalk profiles of others to know more about the person. If you have your profile page made to impress others there are higher chances of getting more traffic from there.

Facebook Groups:
Facebook group is the feature where you can join groups or start your own group. It is one of the simplest ways of viral marketing. You can invite your friends to join your group. In this group page you can post information, photos, events, news, comments, videos, discussion board, a wall for remarks etc. As the members increase on your group you can notify them with the latest news, events etc. However, there are few drawbacks of using this feature. When your group is popular there are higher chances of spamming. It’ll be difficult to keep it clean and people might lose interest in your group.

Facebook Pages:
Facebook pages was introduced especially for the businesses to establish their brand presence. This feature is similar to Groups with few differences: Pages are more customizable than “Groups”, you can add Facebook applications, HTML or Flash making it more interesting than groups. Pages have no restriction on the number of fans unlike groups. Pages do not have the option to invite friends by fans. The only way one can inform other members is by “Share” the page with their friends. Pages are another best way of viral marketing.

Facebook Events:
Facebook events is an application where businesses or companies can promote their marketing events, campaigns, product launches etc. Facebook event has a similar page like that of a group where you can have discussion board, wall, photos links etc.

Facebook Messages:
Facebook messages is the place where you can send messages to people who aren’t in your profile. Facebook has this feature where you cannot view other people’s profile unless you are friends. You can however send messages to the people you are not familiar with. So you can use this feature to promote or inform about your business. You need to be careful about spamming. Spamming could lead to deleting your profile. It is better to read the terms and conditions.

Facebook Market Place:
Facebook Marketplace is an online classified service. Not many people are familiar with this feature. In Marketplace you can advertise about your product and services and people who are interested in it will contact you. When you receive a response to your advertisement, the particular person could view you profile even though he/she is not on your friends list. Spamming should be avoided here as well.

Facebook Networks:
Facebook network is a group which has been categorized according to geography, education, work or other network means. No member can have control over the network but like groups they can post comments, participate in discussion forums, walls, discover events, marketplace listings etc.

Social Ads:
Facebook offers advertisers to pay on CPC (Cost Per Click) or CPM (Cost Per Mile or Cost Per Thousand) depending upon the preference for social ads. Social ads have very powerful targeting capabilities. You can create your ad and limit it to certain group of people like certain age, sex, location, education, workplaces, keywords, political views, relationship status etc. You can get creative in placing these ads.

Invitations:
Sending out invitations to add application is one of the strongest viral marketing scheme used by Facebook. When you like certain application you can send invitations to your friends. If your friends find it useful they’ll add it too and it goes on spreading in the similar manner. This means the application should be appealing enough to recommend others and to let others recommend it further.

Sponsored Facebook Groups:
Sponsored pages are Facebook Groups where we can customize the HTML of certain regions of the page. The cost to rent this is very high. It may cost up to US $100,000 per month making it one of the places with small number of advertisements.

 

Advertisement On Social Media | Social Media Marketing | SMM

Advertising on the internet is no more limited to banner, text ads or blogs. Internet marketing has taken a different twirl and every business should be aware of the changes to promote their product. The new method of advertising on the internet is the Social Media which includes social networking and social bookmarking. Social networking sites have proved to be one of the best places to advertise your product. Early social networking sites included classmates.com which focused on ties with former school mates and sixdegrees.com which focused on indirect ties. Here’s the list of few social sites which can help you drive more traffic to your website.

Social Networking Sites:

Facebook:
Facebook is more than just a place to connect to friends or posting pictures. Facebook has various marketing schemes. Facebook has now become a place for advertisement, event opportunities, event promotion e.t.c.

MySpace:
MySpace is another popular social networking site. The features of MySpace include: Bulletins, Groups, MySpace IM, MySpace TV, MySpace Mobile, MySpace News, MySpace Classifieds and MySpace Karaoke.

LinkedIn:
LinkedIn is a professional networking site where business associates and other companies connect to each other.

Ecademy:
Ecademy is yet another professional networking site focused on serving businesses to connect online.

Ryze:
Ryze is a business networking site which helps you make better business contacts, get in touch with your friends and you can even make deals with other members.

YorZ:
YorZ is a job site. It is also a business networking site. You get access to great job opportunities as well as network with professionals in your niche.

Xing:
Xing is the place to find deals, employees, colleagues and jobs.

Care2:
Care2 is a global networking site for organizations and for people who care to make a difference. If you or your company is involved in making earth greener then this could be just the place for you.

Gather:
Gather is a networking site where you can browse different categories like books, health, money, news etc.

Network for Professionals:
This is a dynamic business networking organization that powerfully combines online business networking and real life events.Some other social networking sites include: MEETin, Tribe, Ziggs, Plaxo, NetParty etc.

Social Media/Bookmarking Site:

Stumbleupon:
Stumbleupon is a gateway to connect with friends, share your discoveries, browse interesting sites, meet people with similar interest etc. You can get all that by installing the Stumbleupon toolbar to your browser.

Reddit:
On Reddit you can upload stories or articles to drive more traffic to your site or your blog. You can rate the articles by voting for or against them.

Digg:
You can discover and share articles or content on this site. You can also vote or leave comments on stories submitted by other diggers.

Del.icio.us:
Del.icio.us is a social bookmarking site for storing, discovering and sharing website links.

Technorati:
If you own a blog Technorati could be just the thing for you. Technorati indexes over 112 million weblogs. You can find other blogs or advertise about your own blog.

Squidoo:
Squidoo is the place to share your knowledge with others. You can set up your own page on a topic you are interested in or you expertise in. The advertising revenue is shared with these content creators.

YouTube:
YouTube is the place where you can share videos. You can upload, view and share video clips. You can make a commercial about your company and share it on YouTube.

Ma.gnolia:
Ma.gnolia is a social bookmarking site where you can discover, share and discuss the best of web.The other social media sites are: Ning, Tubearoo, Wikihow etc.

MAY 06, 2008 ISSUE #8