Digital Marketing Defined
In simplistic terms, digital marketing is the promotion of products or brands via one or more forms of electronic media. Digital marketing differs from traditional marketing in that it involves the use of channels and methods that enable an organization to analyze marketing campaigns and understand what is working and what isn’t – typically in real time. Digital marketers monitor things like what is being viewed, how often and for how long, sales conversions, what content works and doesn’t work, etc. While the Internet is, perhaps, the channel most closely associated with digital marketing, others include wireless text messaging, mobile instant messaging, mobile apps, podcasts, electronic billboards, digital television and radio channels, etc.
Why Digital Marketing Is Important
Digital media is so pervasive that consumers have access to information any time and any place they want it. Gone are the days when the messages people got about your products or services came from you and consisted of only what you wanted them to know. Digital media is an ever-growing source of entertainment, news, shopping and social interaction, and consumers are now exposed not just to what your company says about your brand, but what the media, friends, relatives, peers, etc., are saying as well. And they are more likely to believe them than you. People want brands they can trust, companies that know them, communications that are personalized and relevant, and offers tailored to their needs and preferences.
Challenges Facing Digital Marketers
- Proliferation of digital channels. Consumers use multiple digital channels and a variety of devices that use different protocols, specifications and interfaces – and they interact with those devices in different ways and for different purposes.
- Intensifying competition. Digital channels are relatively cheap, compared with traditional media, making them within reach of practically every business of every size. As a result, it’s becoming a lot harder to capture consumers’ attention.
- Exploding data volumes. Consumers leave behind a huge trail of data in digital channels. It’s extremely difficult to get a handle on all that data, as well as find the right data within exploding data volumes that can help you make the right decisions.
Three Keys to Digital Marketing Success
So, what does it take to do digital marketing right? Here are three keys to digital marketing success:
- Manage complex customer relationships across a variety of channels – both digital and traditional.
- Respond to and initiate dynamic customer interactions.
- Extract value from big data to make better decisions faster.
Manage Customer Relationships Across All Channels
Digital marketing and its associated channels are important – but not to the exclusion of all else. It’s not enough to just know your customers; you must know them better than anybody else so you can communicate with them where, when and how they are most receptive to your message. To do that, you need a consolidated view of customer preferences and expectations across all channels – Web, social media, mobile, direct mail, point of sale, etc. Marketers can use this information to create and anticipate consistent, coordinated customer experiences that will move customers along in the buying cycle. The deeper your insight into customer behavior and preferences, the more likely you are to engage them in lucrative interactions.
Enable Dynamic, Relevant Customer Interactions
Only advanced analytics can produce the kind of perceptive, timely insights you need to develop highly targeted marketing campaigns that will resonate with customers. It’s the speed and immediacy of digital combined with the power of advanced analytics that make it possible to measure, monitor and test campaign performance on the fly to learn what works and what doesn’t. You can then apply what you learn immediately by making adjustments to improve the customer experience and campaign ROI. And build what you’ve learned back into your campaign system so your campaigns keep getting better and better.
Extract Value from Big Data to Make Better Decisions
Marketers are often unable to access and use all the data necessary to get the best insights, and are often forced to use subsets or samples, which compromise model accuracy. To make the best decisions, you need access to all customer data (preferences, demographics, lifetime value, etc.) and marketing data (response rates, campaign performance, resource allocation, etc.) in a shared workspace. A unified customer data model can link touch point behavior and customer experience data with customer contact history, regardless of channel. And having an all-inclusive view will give you the information you need to make the best strategic and tactical decisions.
Digital Marketing Solutions from SAS
SAS® Customer Intelligence offers a complete suite of digital marketing capabilities, including solutions for:
- Adaptive Customer Experience – Develop more relevant, personalized communications to achieve better marketing performance.
- Digital Marketing – Deliver personalized multichannel digital content to millions of customers.
- Intelligent Advertising – Gather and present data to enable precision forecasting, decision optimization, inventory management and sales performance reporting.
- Marketing Automation – Plan, test and execute campaigns to improve marketing automation, process efficiency and ROI.
- Marketing Mix Analysis – Predict the business value of investments, such as advertising, incentives and the Web.
- Marketing Optimization – Plan, prioritize and optimize communications to maximize profits.
- Real-Time Decision Management – Increase the value of your real-time customer interactions.
- Social Media Analytics – Integrate, analyze and act on online conversations.