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Web Marketing

Over the past five years, while people have debated the future of print media, retailers have developed an approach to direct marketing that balances multiple distribution channels, including web marketing, e-mail marketing and, of course, print media in the form of catalogs.

The decision-making is fact based: How much does it cost to acquire a customer through each channel and how much does that customer buy from me? The top-level conclusions are easy to see. Retailers still invest heavily in printed catalogs, along with creating e-commerce hubs on the web and using web marketing to drive traffic.

In an interview with eMarketer, Coy Clement of clementdirect, a direct marketing consulting firm, shares some of the insights he’s gleaned developing multi-channel strategies for retail clients.

Interestingly, behavior on the website is different on the part of people who used the catalog versus those who haven’t.

People who receive the catalog tend to use the Website differently from people who haven’t received a catalog. I’ve seen cases where people who’ve received the catalog buy the featured items. They know what they’re looking for, and they use the catalog as a guide to what the company is selling. People who show up through organic search or a corporate high-traffic site have much more difficulty navigating the Website because they really don’t know what the key items are.
points out that a multi-channel marketing strategy needs to be tailored to the behavior of the target consumers and adjusted for what you learn.

Interestingly, brand retention is higher on the part of people who have been exposed to the print catalog.

What is harder to measure, but still important, is the mindshare people have. This is particularly important for companies in fairly competitive fields. Let’s say you’re in a technology business and you look at people who don’t receive a catalog and people who do, and you do blind research, not telling them who the company is. You say, “Why don’t you tell me what you think of Dell or HP?” Researchers have found over the years that customers who receive catalogs tend to have a higher brand awareness and mindshare than people who don’t.

It’s as if the physical experience of the brand leaves an imprint.

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The Internet as a marketing tool is still fairly rudimentary for small and medium businesses in the local market. The vast majority of businesses have developed web presences, but there is relatively little promotion of those web sites beyond integrating URL’s in off-line marketing, participating in online directories to varying degrees and investing in Google search marketing and other pay-per-click solutions, either directly or through intermediaries, to increase traffic.

Screen shot 2009-10-29 at 3.57.56 PM.jpgThe Kelsey Group has done extensive research on the media spending patterns of small and medium businesses (SMB’s), and has shown that the intent to spend online is higher than the actual amount spent online. The companies, which spend an average of about $1900 a year on their web sites, are cutting their spending on cost per click solutions and shifting their focus to applying Web 2.0 techniques to Internet marketing, Kelsey observed late last summer.

I believe that a basic problem for these SMB’s is the passive nature of their core web presence. The web site is typically a marketing brochure, with relatively static content, that is built on Web 1.0 protocols; this approach, which is a fairly lateral transition of offline marketing processes into the online world.

Recent research shows the potential value of a small business being able to create a web footprint that puts them more squarely in front of consumers on the web — and that means as a preferred resource, or a high-ranking source in natural search, not as a paid advertiser intersecting a search.

A  survey by TMP Directional Marketing, as reported in eMarketer, concluded searches for local businesses online are highly specific and largely focused on connecting with a business the consumer already knows. While 26% of the searches reviewed by TMP attempted to “find a business that had the products or service needed,” and 12% were focused on researching products and services, 57% of the searches were focused on getting specific information about a business they had already identified.

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In addition, the outcomes of these searches were highly active.

Nearly four in 10 US Internet users (37%) who conducted an online local business search in 2009 ended up visiting the store in person, according to TMP Directional Marketing and comScore.

The challenge for a SMB is very clear: How do I create a digital footprint that gives me prominence on the search results when a consumer is looking for information specifically about me? And, how do I leverage existing social connections online to increase my ability to drive usage and awareness of my web site, leading to more leads and more business?

Compete recently did some research on the activity of home improvement shoppers when they visited manufacturers’ web sites. These are largely national players, so the activity is more generally-focused than the activity of consumers doing local searches. However, Compete’s research shows that the more relevant content a business has on its site, the more likely a consumer is to adopt the product or service.

There is a race heating up as these manufacturers learn how to best capture the new consumer: The consumer who not only speaks with friends and family about the home project, but also goes online to help determine what he or she will do, buy, and build. When asked how likely they would be to return to the manufacturer’s site if the project could involve their product, a whopping 88% said they would either be “likely” or “very likely” to return, making the Internet an important, and growing, battlefield for creating product loyalty and enhancing your brand health.

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Those SMB’s that can integrate Web 2.0 techniques and technologies into their web marketing have an embedded advantage in expanding their web footprint and driving more traffic to their sites. The essence of a Web 2.0 strategy is developing a content-marketing program. While this can appear daunting at first, the essence of a good content-marketing program is taking the time to create and organize information that will be of interest to a customer or prospect. The benefit of Web 2.0 technologies is that the process of content-marketing doesn’t have to be done all at once; it can be built into a regular element of the marketing process.

What’s the justification for shifting your day-to-day approach to focus on content-sharing? The large pool of consumers who are on the web, searching for solutions and missing you every day.

Note: Our DesignSherpa and CommunitySherpa internet marketing services at NCI are designed to help businesses accomplish this transition seamlessly and at a low cost. Check them out here and here.

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A primer on social media for design professionals

June 9, 2009

An audio-enhanced version of a presentation on social media for design professionals.

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