You Still Don't Get eMarketing by Dan Jondron
Most Companies Still Don't Get eMarketing
I've been teaching eMarketing to the business community for ten years, and you
still don't get it. Fully 80% of business websites we've reviewed have critical
flaws, either in usability, capability or traffic. At first I thought, maybe
I'd been ineffective in my teaching, but then I thought about who exactly has
been attending my workshops. I've taught to underlings in marketing departments
who are enthusiastic about what they've learned, but have no power to
implement, IT people who understand the technical aspects, but are not
marketers and a handful of small business owners who take the time and energy
to understand and effectively implement eMarketing strategies.
Marketing Executives Are Not Taking the Time to Understand This Powerful Medium
One marketing exec in his late fifties confessed to me that he hoped he'd
retire before he'd have to "learn this stuff". I'm glad that guy isn't working
for me! I hope he's not working for you.
Without top management buy-in, eMarketing will not work!
Let's say that in 1994 before the Internet became popular, you spent the
majority of your marketing dollars on magazine advertising. Now, consumers
spend billions of hours each year surfing the 'Net. They're also spending
billions of dollars buying products online. Do you think maybe some of the
hours that they used to spend reading magazines are now devoted to surfing the
'Net? Uh...yeah! Do you think you should consider switching a reasonable
percentage of your advertising focus to the 'Net? Uh...yeah.
Here we are 12 years after the internet became popular, 12 years after people
began turning their attention to the internet for information. Are you going to
adjust your ad spending now? Only if you want sales, I guess. How many
companies have told me that their magazine ads aren't producing the same
results they did 10 years ago? Umm, let me think. Every single one of them.
If you are a marketing executive and haven't yet invested the time to gain a
complete understanding of how this works, I'd say it's high time you did. You
can't delegate this one.
Without top management buy-in, eMarketing will not work
eMarketing is not included in most marketing plans. If it is, it is simply a
line item. Marketers aren't sure what to include and how much they should allow
for eMarketing. They don't understand the basics of online message creation,
distribution and how their customers use the online world. Understandably,
everyone feels a little behind in the ever-changing world of technology and we
all assume that others know a lot more than we do about our iPods and
Blackberries. In actuality, we aren't all in the same boat when it comes to
technology. We're in different boats but the boats are probably very similar.
You know more about cell phones and Tivo than I do, but I know more about
MySpace and RSS feeds.
As with any new technology there are a lot of phonies out there pumping
eMarketing solutions and plenty of companies have been burned, but eMarketing
can't be ignored or stuck on the bottom shelf. Top management needs to make a
one-time investment in learning and they need to do it like yesterday. The
investment is significant but the returns are excellent and almost immediate
and...it is your job.
Without top management buy-in, eMarketing will not work! Oh, did I say that
already? We routinely turn down work that doesn't have top management buy-in
and at least a willingness to learn this medium.
You're Not Funding Appropriately:
Look, there are now billions of people using the Internet worldwide. Online
advertising grew 25% percent each year for the last 3 years while traditional
ad spending was flat. One large company which contacted us is spending one
tenth of one percent (.5%) of their marketing budget online, though online
product sales in their space grew 13% in 2004, according to Forrester Research.
I would venture to guess that they're missing out on sales, wouldn't you?
Another company we've been working with saw an online sales increase of 27%
last year (37% to date), simply by upgrading their online marketing efforts.
That's pretty significant, don't you think? Through the course of the last 24
months, they occasionally had to ask me to stop bringing in more sales so that
they could upgrade their shipping facility and train new people. Horrible
problem to have, no?
You're Not Planning Appropriately eMarketing is Marketing and it's the
responsibility of the Marketing department. Formerly popular mediums for
marketing expenditures are becoming less and less successful, while consumers
turn to the Internet for information, products and services.
Look, you can have a basic, effective web presence for about ten to twenty
thousand dollars. Any decent-sized company has spent several times that much
building a website which, I will venture to guess, is mostly ineffective. Why
would I say such a thing? These sites are either confusing and unusable,
features and functions don't work or they are not generating significant
traffic.
In one recent example, an automotive aftermarket company contacted us to
generate traffic to their website. We said no. The website was unusable. They
had just spent tons of money on a flashy new upgrade and didn't like my
response. I went online to try to find a part for one of my vehicles. After
entering my year, make, model and part type, I was presented with14 pages of
results. I found my part in the middle of page 12, wrote down the part number
and clicked on dealer lookup. The results showed a list of local auto parts
stores. When I called a few of them, they told me that they didn't carry that
particular line of parts, a subset of the company's offerings. The result? A
ticked off consumer instead of a sale. Can you say negative marketing?
Who does get industry specific eMarketing? Guess what? It's not the big
internet companies and it's not the big retailers either. One group understands
the internet and the other understands the industry specific market, neither
understands both. The companies who are doing the best eMarketing are these
(formerly) little garage guys who combine a background in Internet usage PLUS a
thorough understanding of their market space.
How To Screw Up Your eMarketing
The four most common ways to mess up eMarketing are to:
1. Assign it to IT (eMarketing is NOT IT!) 2. Assign it to a powerless
underling in marketing 3. To write a check to some eMarketing company called
Cosmic Skydog that has no understanding of your products or services. Or 4. As
management, don't spend significant time to understand eMarketing or to track
the results.
We see these four mistakes over and over.
On A Positive Note... OK, I'll quit beating you up and try to do something
positive about this situation. First, let's briefly revisit Dan J's fundamental
rules of marketing: 1. Who are your customers and potential customers? 2. What
do they want? 3. Give it to them. Let's add one more rule when it comes to
eMarketing 4. How does your target market use the Internet in relation to your
products and services? Where do they go? What is it that they want? Follow
along with me as I tell you how best to deal with the basics of eMarketing.
We'll just hit the highlights. You'll have to pick up the rest in future
issues. I'll assume you know who your customers are and what they want. If not,
you'll first need to do some research, please invest Subscriptions in this--It
should be mandatory. Aim first, then fire, remember? Marketing dollars are
tight and will get tighter; they should be spent as effectively as possible.
1. Your Website: Your website is the main tool used to distribute your
marketing message to Internet users. Earlier I made the statement that 80% of
business websites that I visit are less than optimal (and that's being kind).
Specifically I find that the designers have not done a good job of determining
the overall purpose of the website. If they have, they have missed the
identified target or the site isn't functionally usable. If the site is
functional in these regards then the Marketing department (yeah, it's your
responsibility) hasn't done the work necessary to acquire an appropriate
quantity of targeted traffic. Also, build your website so that anybody with a
sixth grade education and attention deficit disorder can quickly find what they
are looking for, OK? Nuff said. Let me run one other thing by you in case you
haven't figured it out. Website construction requires the input of a number of
different disciplines. 1. Content Designer: You need someone who understands
how people use the Internet and who understands who your customers are and what
they want. This person creates the information on the pages and the message
flow from one webpage within your site to another. This person designs the
content of each page and creates a flowchart to show how the pages and the
concepts connect to one another.
2. Graphic Designer: Once that process is complete, you should employ the
skills of a graphic designer who may or may not know how to code the pages for
the web, but can create the eye candy portion of the design.
3. Web Designer: Then you need to get the cool looking pages turned into
something that a web browser can display. This next person codes the pages
using HTML, Java, Flash, and/or XML which are the languages used by browsers to
display the pages.
4. Programmer: You will probably also need the skills of a database programmer
to create whatever interactive features you might need. These are things like
dealer lookups, online contests, forms or online shopping.
5. eMarketer: Once the website is constructed and launched you need to employ
someone who understands how to build appropriate traffic to the website. This
person is an eMarketing expert. You can sometimes find someone who is competent
at two of these disciplines, but very seldom more than that and I have yet to
find a single company who can provide all of these skill sets. This is not
necessarily pathological. After all, plumbers probably shouldn't venture into
cardiology, right? OK, I'll let you call for a free site assessment, not
because I need a hobby, but because so far, I'm not convinced you can do this
internally. And if you haven't read my article on traffic building, please do
so now. Pay Per Click: According to recent studies, 40.5% of web searchers
prefer Pay Per Click results to natural search engine results. It is therefore
imperative to execute an effective Pay Per Click campaign, using the key word
tracking tool in that traffic building article that you were supposed to read.
An effective campaign will produce the following results: it will increase site
user conversions, increase overall targeted traffic counts in the short term,
and in the long term increase site popularity and thus search engine rankings.
2. Email Marketing - Given the fact that studies have shown that it is way
cheaper to sell additional stuff to existing customers than to acquire new
customers, isn't it time you took your customer contact list seriously? Have
you mapped out the cost of sending out ten thousand emails a month to people
who have already expressed an interest in your products and services? The cost
is about $100/month. I don't know any other marketing method that compares for
low cost and for power. Don't email your customers too often. No one wants
their mailboxes clogged with spam. Provide a clear unsubscribe link, it's the
right thing to do and it's the law. I have found that a newsletter with 75%
valuable tips and 25% sales pitch works better than just a promo email. Think
of topics that might appeal to your customer base, like spring car care tips or
safe winter driving advice in the case of the automotive market. While you're
at it, why not acquire additional email addresses for your list? First,
encourage everyone who visits the site to enter their email address and give
their approval to receive a newsletter, second, run a promo or contest to
encourage them to give you information about their lives, education, income,
physical address and email. Content Distribution - Since you're presumably
creating content for your newsletters, go ahead and post that content at
article sites on the Internet. These are sites that publish original articles
on virtually any topic with your company's byline. They also link back to your
site and they post your bio. The links back to you are valuable for search
engine results. Increase Distribution of Press Releases: The use of web-based
PR distribution services, creates increased exposure in print and online
publications, and creates links from websites such as Google News and Yahoo
News. Again, these links to your website increase popularity, and thus search
engine rankings. Banner Advertising: Consider purchasing banner advertising on
content websites that have high visibility, traffic and user loyalty. Your
campaign should be initiated on an experimental basis with a number of sites to
determine effectiveness, then continued or increased on sites that pay off.
That ought to keep you busy for a bit, so I'll stop here. Just remember: 1. You
are paying premium prices for a reduced number of eyeballs in traditional
advertising venues because more and more people are turning to the Internet for
information.
2. Marketing via the Internet is NOT different than marketing in other media,
only the medium has changed. You don't need to understand how printing presses
work to run magazine advertising and you don't need to understand binary code
to run Internet advertising. You DO need to know your customers and their needs
and apply that knowledge to the Internet.
3. Top marketing management at your company needs to invest the time NOW to
understand how your customers use the Internet and the various means of
distributing the marketing messages via the Internet.
4. eMarketing can (if implemented properly) offer the highest ROI for any
marketing that you will do.
5. Results are almost instantaneous (60-90 days from launch).
About the Author
Dan Jondron, President of Advanced Digital Strategies has over 20 years
experience working with companies of all sizes, including Fortune 500
companies. Dan first logged onto the 'Net in 1973 and took a group of companies
public on the NASDAQ (OTC:BB) in 1999. He has been teaching eMarketing and
Technology topics in Japan, Australia and across the United States and Canada
for SEMA, other trade organizations and private companies since
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