Why isn’t direct response thinking working in digital channels

By Joel Nicholson, Marketsoft

The challenges…

  • How is customer acquisition via digital channels performing in your organisation? Are there some channels such as SEO and key word advertising that are driving consistent leads, yet other channels such as retargeting banner ads achieving very little?
  • With the proliferation of digital channels to hundreds of options, are you actually able to measure and learn statistically the best channel combinations for you organisation?
  • Have you heard the great marketing quote – ‘“awareness” is code for conversion failure!’. There are plenty of examples where brilliant digital and video content campaigns have driven ten’s of thousands of clicks, however only ten or more actual purchases

The concepts…digital-direct-response

  • In many businesses, spending in traditional offline direct channels such as mail and phone have completely stopped and all budgets have been diverted to digital channels. Is this smart when customers are engaging across all channels?
  • Video content is the latest gold rush channel over the past year, however many businesses are reporting that they are being simply blasted out across various digital channels rather than in a controlled measured framework
  • Using traditional measurement frameworks such as response rates per customer segment or per offer type is perhaps floored when customer experiences are not linear across a few channels anymore.

Actions to consider…

  • So what can we do? Given we are living in a multi-channel future, complexity is one of our biggest enemies, so keep focused on 1 or 2 core channels until proven either way before jumping to the next shiny thing!
  • If you are harnessing the power of video content to gain connection with your audience, make it easy for them to click to the next step in the customer decision cycle and setup predefined metrics before embarking on the campaign. An example might be channel source verses click through verses conversion.
  • Finally, capturing the right data is key to understanding the likelihood of customers buying through digital channels. Traditional data from channels like mail where simply promo codes or source of database list. The new digital data points can be more subtle, such as combination of search words and how many fields the customer is willing to populate in their inquiry form.