#6 Digital Marketing during COVID-19: Rapid Market Experiments

Rapid Market Experiments in Digital Marketing

Preparing campaigns to determine if a “product fits the market” makes sense when introducing a new highly innovative product to the market. For example, in the current market situation (pandemic) when we are trying to digitize products or the way we acquire customers. Such activities require conscious planning of a new business model, MVP and defining the market hypothesis.

However, if we would like to move faster, and we already run our business and do not want to turn the business model upside down. Or when we are sure that the experiment we have prepared is only the first such action out of many. Then it pays to prepare a structure for tracking customer behavior and analyze their behavior in an instant.

The idea of ​​instant market experiments is based on creating a structure for monitoring customer behavior. 

Comprehended as the preparation of a cockpit-like in an airplane, which allows for capturing changes in customer behavior in real-time. 

Thanks to the adopted indicators and measurements, we are the first to find out what customers need, and thanks to this we earn the most.

The idea to prepare such a dashboard arose during cooperation with our client, who wanted to use a cell to have control over everything that is happening in the company and make current decisions on this basis.

 

When we managed to create such an environment, it turned out that it was an excellent foundation for:

  • making the right decisions,
  • conducting experiments, 
  • minimizing risk,
  • assessing and monitoring the work of the team.
We implement the environment for monitoring customer behavior for companies in the following stages:
  • Define – processes in the organization. Answer the question of what are the key performance indicators. This stage is the most difficult and requires the most significant amount of work. The preparation of the technical structure compared to this stage is very simple.
  • Measure – prepare measures and implement them into the company.
  • Analyze – on the basis of the achieved indicators, it is necessary to frequently look at the results. Therefore, the use of highly accessible data “cockpits” is crucial.
  • ImproveIt – is important to develop potential solutions and test them on a smaller scale.
  • Control / Navigate – this stage is based on the implementation of specific solutions and further improvement of the preceding stages.

Instant market experiments – an event-based approach

The figure shows the entire sales funnel (customer journey) – understood as the theoretical path from the first contact of a potential customer with an advertisement, to the moment of purchase, up- and cross-selling.

 

Generating leads, content calibration
  • This stage is aimed at building as much traffic as possible – interest in the message.
  • For this purpose, it is good to conduct experiments on published articles, videos or posts. This is the stage during which “there is a form of communication with the recipient that arouses their interest.

I don’t know to what extent this is an anecdote or to what extent it is true – I heard that Donald Trump kept posting on Twitter until he found the one that “resonates best” – that is, attracts the most audience. He published an entry – we are now fantasizing – that he will reduce taxes – little interest, that he will give more social benefits – little interest, and so on and so on. Until he finally wrote, “I’m going to build a wall with Mexico and stop illegal immigration” – and it turns out that he got the most likes and more shares. On this basis, he made the decision to continue the campaign with this slogan.

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You can get traffic on the website thanks to:

  • Organic – organic traffic – that is through the appropriate optimization of the website for search engines (SEO). Until some time ago, these activities were based on creating links on external domains that would lead to the domain that we want to display in the highest Google position under a given keyword. Today, it is rarely used, because a few months ago Google adopted two main criteria for content positioning: the number of clicks and the time spent on a given page. Therefore, the best way to increase organic traffic is to write interestingly. Keeping blogs where it was added very regularly, very pointless content goes down in history, it is better to write something very interesting, where not only a lot of people will use this knowledge, but also a lot of time to spend on the site.
  • Direct – direct traffic – from people who enter the site by entering the domain address directly. Most often they are employees of the company and in the case of online sales of applications, users who have already logged in.
  • Referral – referrals – when our website is promoted on another website. Or, for example, a link to it is included in the e-mail.
  • Social media – mainly traffic by linking to our site in articles, videos and posts on Social media. Currently, Facebook has cut the reach of posts added without paid advertising, so it is a very difficult task. 
  • Paid – paid traffic, such campaigns are called PPC (pay per click), pay per click. This is the fastest way to attract users, especially used in experiments. Most often, on its basis, the cost of acquiring a customer is determined, which is only just optimized with SEO activities. What does it mean? If in Google search results, entering the website from the keyword “marketing agency” costs PLN 5.50. For 100 people to visit the website, you need to pay PLN 550. The most popular PPC ad channels are Facebook Ads and Google Ads.
    • Facebook Ads – they work best when people are not searching for a certain word – because it’s, for example, a new product. On Facebook, the best sellers are things that no one would think to buy and cost more than PLN 200. T-shirts, e-books, e-learning courses … Everything you buy spontaneously.
    • Google Ads – it works best when we want ourpage to be landingvisited by as many people as possible who want to solve a given problem, for example looking for a software house or wanting to buy a given software.
When creating content, it is worth using the following tools:
  • SEMRushhttps://www.semrush.com/
    • This software is an absolute must-have (although it costs $ 100 per month), if you want to gain customers from organic search – SEO, thanks to options such as:
      • Topic research – this feature allows you to analyze what is best read on the internet at the moment.
      • SEO writing assistant – software suggesting in real time what keywords to enter in the article to make it highly positioned. Our experience is that if you want to fight for a high position in Google, it is not worth writing articles without these steps.
    • It is important to keep track of your competitor’s views of interesting topics and use the right words that draw attention. This is not possible without SemRush. There, “projects” are created, that is, assigned to track the behavior of people browsing the site.
  • In addition, it is worth using the previously described UberSuggest.

Product page, digital calibration

A product page (landing) is one whose purpose is to sell one product / service for a very well-chosen customer segment.

The most important thing in creating a product page is to make sure that it can be changed very easily at any time. Therefore, we recommend using the WordPress platform and themes from   https://themeforest.net/with WPBakery PageBuilder.

Thanks to them, changes to the website are carried out with the “mouse” and is extremely fast and effective.

Additional Tools:

  • HotJar – https://www.hotjar.com/ – allows you to record customer behavior, thanks to which you can later improve the website.
  • Google SiteKit – a brilliant solution for creating a dashboard for a website, it also works very well with “Google Tag Manager”.

 

Persona and USP, Calibration of the business model

If the two previous stages of the funnel work properly, it is worth using the obtained data to improve the business model in all nine previously indicated areas —- https://0101marketing.com/pl/jak-wprowadzic-nowy-produkt-na-rynek-w-firmie-it /

In real terms, it usually takes place in the following areas:
  • USP – unique selling proposition – aselling proposition unique. That is, trying to answer the question why our product / brand is unique and worth buying. Often when analyzing the market, we realize that the home pages of industry leaders, which we would like to follow when designing a message, change day by day. This is the speed of acquiring and responding to customers, which we believe should be pursued.
  • Persona – the person to whom the message is directed. Here we recommend the preparation of “turbo promotional campaigns”. If we want to enter new markets, often a good solution can be: selecting 30 very specific people, I shoot: CEOs of IT companies who employ more than 250 people, in Scandinavia. Then we can calibrate our business model to a precisely defined segment – specialize in it. Or vice versa, in the context of our experience, expand the offer for more people.
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Up- and cross-selling, LTV calibration

Definitions
  • Up-selling-selling – up- understood as conducting sales activities aimed at customers who have already bought something from us. Example: we prepared a website for our client three years ago, this month we are selling a new one, because the old one is no longer valid.
  • Cross-selling – selling additional products and services from a different category. Earlier we sold the website, today we offer support for Google Ads.
  • LTV – Lifetime Value – customer value in the life cycle. One of the best ways to increase your profits is to add value to your customer over the lifecycle. By offering him new products and services. Thanks to this, more profit can be generated by paying the unit cost of acquiring a customer.
    • Example: Two SaaS software owners are competing in the marketplace. Each of them incurs a similar cost per acquisition (CPA), equal to $1,000. The difference is that the first of them sells a subscription per month on average, the second, due to the attractiveness of its offer, makes the customers use the software for half a year on average. They both sell subscriptions for $800 a month.

For the first one: 

  • CPA = $1000
  • LTV = $800
  • ROAS = 800 / 1,000 = 0.8

For the second one

  • CPA = $1,000
  • LTV = $800 * 6 months = $4,800
  • ROAS = 4,800 / 1,000 = 4 , 8

This example is obviously exaggerated. In contrast, in highly competitive markets, LTV can mean “to be or not to be”. Paying the cost of acquiring customers once and monetizing them multiple times is one of the most effective ways to increase your company’s profits.

 

In the case of our marketing agency, we organize LTV as a process of purchasing individual products:

  • Product “catch”
    • That is, an e-book that is being written and sold online at an affordable price. People are more willing to buy a cheap one over the Internet than order a service above $1,000.
    • In addition, we will try to bring about such a situation in order to finance further promotion from the revenues. So we’ll be glad if we break even here. We want as many people as possible to get to know us, read about how we think and how we act.
  • Landing products
    • Marketing audit, market experiment, on-line consultation. Lower-priced products offered to customers who have gained initial trust in us, but are not yet ready to work with us in the long term.
  • Appropriate products.
    • Subscriptions for comprehensive marketing services implemented in contracts for half a year.

List of the most important tools that can be used for instant market experiments:

Analysis of competition and market:
  • SemRushanalysis – especially in the following options: 
    • Traffic research – website traffic analysis,
    • Topic research – analysis of the best topics,
    • Organic research – organic search analysis.
  • UberSuggest – competition domain analysis.
Website development:
  • Bluehost – hosting for WordPress websites.
  • ThemeForest – themes / engines for WordPress.
  • HotJarheatmaps – creating sitethat show where users are most often. It also allows you to record their behavior. Basic optimization tool.
  • WPForms – definitely one of the best and reliable systems for creating contact forms – also with payments.
  • TypeForm – a brilliant tool for creating quizzes, a very interesting solution in terms of UX.
  • Google SiteKit – The best solution for connecting Google tracking tools.
  • Google Tag Manager – a container for tracking tags
Writing articles well-positioned in SEO:
  • SemRush – we especially recommend using the following functions: SEO writing assistant.
  • Yoast – a very useful tool for configuring the sitemap.xml file and for SEO evaluation of individual articles.
  • UberSuggest – Organic and Domain Search Analysis.
Creating data dashboards:
  • SalesForce – currently one of the best, if not the best, software supporting customer behavior monitoring. Particularly useful wherever traders work in the company.
  • LifeSpace – Polish very good CRM software together with a knowledge management system. Better price offer from SalesForce.
  • Google Data Studio – data aggregator – creating “dashboards” for ongoing monitoring of customer behavior.
Other:
  • Revolut – payment system in many currencies. For international businesses.
  • Lumen5 – Application for easy video creation.
  • Shutterstock – a place to download images.
  • Calendly – calendar management software. It allows you to sign up for calls and payments.
  • Monday – team management software, allows you to arrange all tasks in Kanban boards.

 

Key things to consider:

  • In some organizations, conducting market experiments and lightning-fast market experiments can:
    • Increase profits,
    • Reduce the risk of introducing new products to the market,
    • Recognize customer needs and make good business development decisions.
  • Market experiments can be carried out in stages:

    • Defining the canvas of a business model,
    • Preparing a minimum value product,
    • Defining a hypothesis, conducting an experiment and evaluating it.
  • Instant market experiments are based on:
    • Creating a structure to monitor customer behavior.
    • It is an investment that allows you to monitor and respond to market needs on an ongoing basis. It takes some time to prepare, but it is very useful in the long run.