The idea of user segmentation, that is used in order to offer each group such goods or services of a certain price category, became the classic technique of modern marketing. However, not every user who sees the advertising offer is ready to hurry up and buy your product. In order to convert a visitor to buyer, it is necessary to go through a series of steps: to draw attention, arouse one’s interest, provoke a desire and encourage to buy the product. How to do it yourself without using expensive and complex tools is written in this article and illustrated by the example of developing a marketing strategy for Pult.ru– one of the largest Russian resellers of HI-FI/HI-END technique.
The task of analyzing the success of current and developing new marketing strategies is relevant for every business that sells goods and provides services, regardless of its size. In order to evaluate qualitatively and quantitatively the effectiveness of each point of contact with the consumer, from getting to the site to the real dialogue with the seller, special tools and methods are needed. One of these tools is Customer Journey Map (CJM). Customer journey maps are visuals or graphics that depict the customer relationship with a company, their service, and their product over time. At the core of a great customer experience is the customer journey, and how an organization's processes, systems, and people interact with its customers.
For the development of the CJM there is no need in complex analytical calculations and special soft, any expert in the subject area can create this map, who knows how to work with the client and who is interested in its improvement. How to do this is shown below.
In fact, CJM is a state diagram - a directional graph, the vertices of which shows the contact with the consumers, and the edges indicate the probabilities of the transition to the next interaction (Fig. 1).
Fig. 1. Layout view of CJM
A customer journey map is a visual representation of every experience your customers have with you. It helps to tell the story of a customer's experience with your brand from original engagement and into hopefully a long-term relationship. Thus, CJM is a marketer's roadmap that helps determine a marketing strategy and develop tactics for its implementation: the objects of the proposal, the frequency and channels of interaction with the consumer, as well as plan the advertising budget, paying more attention to the most effective episodes. In particular, increase conversion, lower the cost of attracting visitors (cost per lead, - CPL, cost per order - CPO), or increase the overall profit level per client (life time value - LTV).
For creating CJM special tools or complex techniques are not needed. The simplest way to design this map is to simply draw it on paper. You can also use various plotters for diagrams, charts and mental maps, for example, Xmind or similar services [1].
However, even if there is no requirements for special tools, the development of the CJM requires expert knowledge of the subject area and the detailed implementation of each of following steps:
To divide consumers into segments (categories of clients and their groups) with different consumer behaviour taking into account all aspects (motives, needs, expectations, budget);
To choose the most appropriate typical advertising model of consumer impact (AIDA, ACCA, DIBABA, DAGMAR, VIPS) [2] that characterizes its movement through the sales funnel (Fig.2) or to create your own version of consumer behaviour based on classical options;
To detalize knowledge about each of the previously identifiedconsumer segments, to answer 5 questions about them:
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After CJM is actually built - in tabular or graphical form, it is necessary to draw up a detailed work plan for each of the selected consumer segments, which, step by step, will lead the customer to a purchase based on his needs and consumer behavior. In practice, this means developing a detailed sales funnel for the selected model, for example, from attracting the attention of a client using colorful banners or contextual advertising in search engines to personal marketing offers in the form of individual email or SMS messages. After creating such a plan, you should bring it to the perpetrators, changing the KPI of the direct perpetrators in the field: marketers, sellers, content specialists, SEO and SMM.
Pult.ru besides the very well-known internet-shop in Russia in the sphere of HI-FI/HI-END technique with the annual turnover of more than 4 billion rubles [3], also has a network of offline stores throughout the country, from Moscow to Novosibirsk. The company sells not only the first-class AV equipment, the range of which includes over 30,000 items, but also provides a full range of services for the selection and installation of equipment.
The implementation of the marketing strategy based on CJM allowed to increase the company's revenue by more than 50%, to reduce the CPO by 2 times while maintaining the same sales volumes. The analytics system, built on the basis of consumer segmentation, significantly increased the efficiency of each functional unit - from the back-end office responsible for the site to live sellers in offline stores.
The following consumer segments were highlighted:
The most famous AIDA (Attention - Interest - Desire - Action) proposed by the American advertiser Elmer Lewis back in 1896 was chosen as a typical advertising model [2]. However, the levels of sales funnel offered by this model have been interpreted a little differently, as well as supplemented with the new L-Loyalty component. What a sales funnel looked like in our model of consumer behavior is shown in Figure 4.
Fig. 4. The model of consumer behavior
Table 1 shows the CJM and marketing strategy for the Beginner Audiophile segment, which is at the Awareness level in our consumer behavior model.
Table 1. CJM and marketing strategy for the Beginner Audiophile segment
| Level description | What does he wants | Where to find | How to find | What to say | Time before purchase |
Has an initial understanding of the functionality of audio systems. While buying nothing and not too versed in the topic
|
Wants to understand the topic of how to get a good sound and what is needed for this
|
|
|
To explain simple and plain what and how it works, show an expert level to build trust.
Offer a wide range of products
|
3-6 months |
Further, the contents of the “where to find” and “how to find” columns were detailed in the form of a detailed plan for promoting this segment to the following levels of our sales funnel:
To evaluate the effectiveness of this marketing strategy, the KPIs of employees involved in the promotion processes were changed depending on the channel used: traffic from search queries (SEO), cost per click (CPC) in contextual advertising, conversion of transitions by email newsletters (fig. 5).
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Fig. 5. Indicators of measuring effectiveness on every step of sales funnel
This has allowed to distribute more efficiently the advertising budget (Fig. 6).
As a result, 76 retargeting campaigns with dynamic segment recount were launched, which reduced CPO by 2 times while maintaining sales volumes. Thus, CJM once again proved to be an excellent tool for marketing analytics and optimization of the advertising budget, which can be used in a business of any scale without any financial investments and with minimal time and labor costs. In addition, the information obtained during the development of CJM can be used to automate production processes, as well as introduce new information technologies, in particular, machine learning models, which I will discuss in the following articles.
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