Forget creating a digital strategy

Digital Strategy, I hear & read the words repeatedly in the line of my business. It seems that it’s the current phrase to use within a company, which is annoying as I’ve been writing them for around a decade and a half now.

Now typically in this blog I would drill into the subject of the different aspects of creating and maintaining a digital strategy, covering things from a top-down perspective and giving my views on how to implement one.

But not today. I think I need to clear some things up first that have been on my mind.

1. What’s the point in having a digital strategy when there are probably a number of different online initiatives around your organisation that don’t know (or care) about the more strategic direction being taken?
2. Why even plan a digital strategy, when there are simple digital projects that have either failed to get off the ground or have subsequently turned out to be turkeys? (These don’t have to be monumental projects to entirely redevelop your online business, they could be something as basic as a quick microsite that has failed to comply to HTML standards)

Sure, planning an overall approach to all online engagement and interaction is a noble cause. But hoping to just lay this new lush green grass layer over the rubble of bad or missing quality standards or known gaps in your organisation’s digital capability is a recipe for almost certain failure.

Or in other words, forget creating your digital strategy, get your digital tactics right first!

British Airways pricing might need work

The other day I was buying a flight down to London to see a client and used the British Airways website to book. I looked at various options to get the cheapest flight, but was a little surprised to see that the cost of flying from Glasgow to Gatwick costs more when you take less baggage.
Yes that's right, to fly with a suitcase up to 23kg in weight is £11 cheaper than just travelling with hand luggage.

Note: I know that BA's digital revenue management team can't be expected to get pricing exactly right and that errors will occur. However on this occasion I did book the cheap ticket and simply 'forgot' to take my large bag.

eCommerce and the dehydrated mare

Ever heard the phrase “You can lead a horse to water, but you can’t make it drink”?

Well, if you leave a thirsty horse right by the water trough, make it as easy as possible for them to take what they want and show the water off in the best way possible… you are more likely to get it drinking.
The same goes for eCommerce websites, where the you have no control over the actions of a specific user… but by a clever combination of: thought-out usability, customer insight & segmentation, an acute focus on maximising customer revenue and a ‘test & learn’ approach, you stand a far more likely chance of converting prospects into customers and makin more money in the process.
There's unfortunately no one-size-fits-all model for eCommerce, but typically there are best-practice models to follow in each market sector. Understanding what works for your business is then a process of trial and error to establish what combination works best.

Remember, you may drag your customers to your site via a number of different marketing channels; but what they do when they are there is yours to shape and persuade.

email to Stephen Halpin of Merchant Soul

Steph

The time has come for us to stop working together.

Currently Ideal Interface is owed £24,600 by Merchant Soul, not including our final invoice due at the end of July for £1,680. This is a significant sum outstanding and has now become of considerable concern to Moya and myself, also meaning we have not able to meet certain financial obligations.

As I see it, there is either a lack of concern on your part or an inability to pay. If it is the former, then I need to inform you that we have been speaking to a corporate lawyer to take action to claim this money back via whatever means. If it is the latter, then there has been no mention of this by you at all and therefore your company is continuing to trade on money that should have been used to pay suppliers such as us.

You have therefore given me no option but to do the following:

1. Conclude our working relationship with immediate effect

2. Inform any known suppliers of Merchant Soul of my decision and that they are also at risk of non-payment

3. Contact Merchant Soul’s digital clients and inform them of my decision 

4. Lodge this debt against Merchant Soul Holdings with the relevant agencies & authorities

However, from my perspective, what is perhaps the most concerning of all is that you have not responded once to Moya’s emails, calls or texts over the last few months. She has gradually escalated the issue with you and not once have you replied, questioned or apologised for leaving us with this amount of money owed.

Hayden

True content marketing is calculating page value

I see so many articles on the subject of content marketing it makes my head hurt. They nearly all just witter on about blogs, infographics and social media, but hardly any even mention one key thing... return on investment.

Its like we've stepped back once more to either around 2008 (when social media gained a lot of attention) or the early days of the dot com bubble in the 1990's. Both were a time when a lot of people lost a lot of money, by not focusing on value.  The value of what you're doing compared to what you get out and the value you're adding.

So before rushing into loads of content marketing efforts and wasting everyone's time and money. .. ask yourself "do I know the value of this page I'm either creating or maintaining?".

If you don't, might I suggest you stop right there and work that out first?

Going Global with eCommerce?

If you're looking to take your Internet retailing wider than just the UK, then you'll need to understand the complexities of multi-country, multi-lingual and multi-currency eCommerce.

I'm a great believer in learning from those who have gone before. So I thought I'd share this email from our pals at Cranberry Panda, who recently filmed every speaker at the EcommerceUK event called Going Global.

Here  Dave Elston, Head of Ecommerce at Clarks, presents the challenges that the shoes retailer faced in reaching a global market.



A copy of his presentation can also be found here:
http://www.slideshare.net/practicology/going-global-clarks-european-ecommerce

How do you segment financial services customers?

In an earlier post I made it clear that I thought a certain way of segmenting customers has had its day. The method of classifying customers just by their life stage is no longer relevant, with both lifestyles and finances having moved on.

So rather than dwelling on this, I thought it better to look at ways that banks in the future could segment their customers. But to be honest, I couldn’t come up with a single simple way of segmenting financial services customers that made sense in the modern world. Nothing really fitted nicely and any possible model had loads of exceptions to the rules.

And then it struck me... that perhaps there's no longer a few simple segments that fitted all financial services customers. Perhaps this subject is just too complex to put into simple terms... or in other words, perhaps now with the advert of clever data analysis and personalisation, there's no need to segment them into a handful of categories, everyone is in their own segment!

It's therefore my prediction that banks will eventually integrate big data analytics into their CRM systems. This will develop their understanding of who each individual customer is, alongside a record of what products and services they have already got do describe how best to meet their needs.

Some financial services companies may already be on their way to delivering this vision and this should be an interesting space to watch as the use of dig data analysis takes off.

Don't base digital shopper activity on ecoupons.. yet

Research just published shows the growth of electronic coupon usage slowing. Does this mean the predicted dominance of ecoupons has stumbled before it's learnt to run?

In a recent report on this subject the use of money off coupons has now grown in usage to cover 90% of all consumers.  However digital coupons have only grown in use by 9% over the same period. 

It therefore seems that paper-based redemption methods are more popular than ever, but that ecouponing hasn't got the mass adoption it should have.

Why is this? 

Here's a couple of possible reasons:

1. Retailers don't support them
The major supermarkets have so far failed to embrace digital vouchers. Even my Tesco Clubcard app on my mobile phone, which uses a simple bar code shown on the screen, only works on a limited number of their scanning tills (and none of their smaller local stores near me, which seem to be the type growing in number right now). Yet I walk in with a handful of paper - based ones (from newspapers, magazines and even self-printed at home via sites such a supersavvyme.co.uk) and they all bleep through with no problem.

2. Brands are slow to use them
Perhaps as a result of the point above, even the major FMCG brands (typically the early adopters of these sorts of things) have not taken up the opportunity to use electronic coupons in any sizeable numbers.

 

Perhaps when both the retailers and brands collectively get their act together on ecouponing, then there will suddenly be lots of  uses, linked in with tracking and other eCRM initiatives for the ideal digital shopper marketing campaign.

What is a good bounce rate?

This is an interesting question I thought I'd answer, primarily following a series of debates with friends and associates in the digital industry.

For those unsure what exactly is meant by the bounce rate, it is usually defined as those visitors to a site who only view one page of the same site in any one browsing session. The metric is calculated by dividing the total number of visitors by those who only view one page and then expressing this as a percentage. 

But is a high or low bounce rate a particularly good or bad thing? Let's take an example....

Imagine a company has a website that showcases their products and uses both SEO (Search Engine Optimisation) techniques as well as Google Adwords for Pay-per-click digital marketing. When investigating bounce rates from their digital analytics we see that visitors from organic search engine sources have an approximately 40% bounce rate. This compares with a rate of around 55% for those coming from pay per click adverts over the same period.

Surely the bounce rate generated from the organic source is healthier? As less people come to the site and disappear straight away, this must surely mean that they are 'better' users is some way?

Or to flip it around, doesn't it therefore follow that the paid PPC campaigns are delivering less value than those from search engines?

Not necessarily.  

 A different bounce rate from different acquisition sources makes sense if you consider these factors:

1.      The landing pages for paid and organic traffic could be different.
Search engine optimisation is not an exact science and depending upon the search terms used, the page displayed in the search engine results pages (SERPs) might well be different from the one you really want them to go to. This may also be different from search engine to search engine. If this is the case, it is likely your paid efforts are pointing visitors to the page of your choosing and one that may well be optimised for this purpose.
Note: this may well mean that the users’ paths to complete their required goals are different and could affect the conversion rate.

2.      The paid advert copy might be different from your organic listing
Now far be it if for me to suggest that any upstanding company would deliberately mis-represent their site in PPC adverts to potential visitors.. but I have seen examples where the Ad Words copy significantly differs from the content of the target page. Now I’m all for experimentation to understand the optimum copy in each circumstance… but when the paid advert content sets an expectation with the person about to click on an ad, don’t be surprised if they bounce straight out if the page doesn’t meet those expectations.

3.      Different visitors use different searching techniques.

I know that I have differing browsing behaviour depending upon: the frame of mind I'm in, the device I'm using and the amount of time I have. And I'm sure I'm not the only one. Online users also click on different paid placements depending on whether there are other PPC adverts displayed and the quality of the organic listings displayed alongside or below those precious Google Adwords ads.

Whatever your bounce rate, you should always take whatever steps you can, not just to minimise it, but to focus on optimising your collective set of site KPI’s and maximising the commercial opportunities your online presence gives you.

Hilton website shows failed users the door

When using the Hilton hotel website tonight, I had a problem. After entering all my details I waited for several minutes while a spinning icon continued to do nothing. Try as I might, the site wouldn't accept the booking for myself and colleague on our forthcoming room  our overnight business trip.

Instead, and after what seemed like a long wait (although it may have been only a few minutes), I was given the image below:

To some users, this may seem like a well-designed error page, something that shows that Hilton cares about such eventualities. But for me, this wasn't the message I took away. Instead all I saw was a closed door with the handle down and the online equivalent of a 'do not disturb' sign hanging there.

Was this really the message Hilton wants to give users who have already had poor site experience?

Does it matter where anything goes?

I've been meaning to write this post for ages, but never had the chance to pull my collected thoughts together before now. In essence, this article is all about the need to continually optimise your digital presence. But it's also about the bigger concept that change is the only constant in the online world and that anyone not innovating and making mistakes is actually taking a step backwards.

So what do I mean by all this?

Well, as I've mentioned in several posts before, the creation of a website (e.g. an online retailing one) is just the end of the beginning... Not the beginning of the end. Your journey has just started. So if you haven't already begun to use AB tests or Multi Variant Testing tools already, I bet you're at least considering the way you can use them to improve your KPI's.

This does consequently create an interesting debate that you might like to have with your web design / development agency or in-house eCommerce team. Centred around the central premise of "Does it actually matter where you place content and functionality on the web page when you're creating it?"

In other words... if you practice the science of 'user centred optimisation',  then very quickly your iterative process of test & learn will find a better way than you came up with at the beginning of your process.

And yes, if you keep doing it... your site should continue to evolve. Therefore leading to the theory that it might not actually matter how you initially design your website, but that it just matters that you keep evolving it quickly and intelligently.

It's not traditional media anymore

I've been struggling with the term "Traditional Media" recently.

I'm not sure why... maybe it doesn't sound right, perhaps the term just doesn't cut it in a fragmented communications world or possibly I've lost a lot of my nostalgic view of newspapers, radio and even television.

Some traditions are great and are quite rightly upheld. Traditions not only show us where we came from, but also serve as a reference point to remind us what was good at a given point in time. 

But now we live in a new world.  An always-connected one where media is streamed, stored, consumed on demand and mashed together across multiple channels and devices.  The consumer of media is now in control and there's really no going back. My 4 year old daughter thinks it 'silly' that the TV doesn't show all the programs YouTube does (perhaps only because I've not bought an Apple TV box yet) and she laughed when I tried to explain that we once only had a TV with 4 buttons for our television... and one of those was for the power supply.

But we now live with those old paradigms, albeit updated for a 21st Century life. YouTube still has 'channels' and streamed digital radio is still referred to as 'stations'. 

So maybe we should change to term from 'traditional media' to something more fitting for a hangover from a bygone age? Perhaps we need a new way of referring to the old ways of media consumption?

Perhaps we should now call them 'legacy' media instead?

The rise of Personal Finance Management services

Last year I was lucky enough have a senior role as the Head of Digital for a financial organisation. This got me back into the Financial Services arena, where I could leverage the experience I’d gained from several years of agency-side delivery in this sector.

Diving into this industry again after several years out of it, I was struck by the changes that had taken place. For example: The reputation of banks was lower than it had been nearly 10 years ago (primarily due to the financial crash, but also because of the rise of customer complains brought on by better communication methods such as the Internet and Social Media) and people were eventually breaking away from the traditional and clumsy segmentation models of life stage and age.

However one thing in particular grabbed my attention more than most, the potential for banks not to own the financial interface with the customer anymore and that a service layer could be placed between the user and financial services provider. In other words, the market was far more likely to use personal finance management tools now than ever before.

But why are online personal finance management services now being considered? Especially when banks have spent so much money and time creating their own direct banking channels?

1. Users want independence
Having a product agnostic platform puts the user back in control. Look at the gradual dominance of the aggregator in financial comparison; from credit cards through to car insurance, online now provides a way of comparing and contrasting multiple products in a single place. This independence from a specific financial services provider gives the user a place they can trust and not have cross-sell and up-sell offers from the same company tirelessly pushed to them at every opportunity.

2. Users need better interfaces
All online banking and services sites are playing catch-up with each other, but all so very slowly. Thanks to lengthy development timescales, the need to comply with in-house governance and the very nature of financial brands to be less agile and more risk averse... you then get products that work, but are rarely shining examples of fantastic functionality, user experience and design.

3. Users have more choice
The financial services landscape has changed. These days users not only have the ability to switch providers for their insurance and banking needs, this switching is becoming a legal requirement that all FS providers must support. Add to this the fact that so many financial companies have now all diversified into as many different markets as possible (usually by white-labelling everyone else’s services) and the choice amongst products is bewildering and still growing...

When you then compare these facts with the ability of smaller, digital-first and more innovative personal finance manager sites, you can start to see why some banks and building societies are getting worried. The rest, well they’ll have a nasty shock when they eventually wake up.

Still segmenting financial products by life stage?

Back about a decade ago I used to work for a digital agency and we had one of the UK’s largest Financial Services as our client. Life was fun and the projects were interesting, for example we developed sites for acquiring new student accounts, we created digital marketing campaigns for first-time mortgage products and we built content-rich portals for customers of added-value current accounts.

Throughout all of this, we focused on targeting prospects according to their life stage. This followed the typical life stage breakdown of:

• Going to university (student account)
• First job (graduate or regular current account)
• Wedding / First house (mortgage, home insurance)

Other products, such as savings, loans and insurances were usually either seen as more opportunistic (e.g. Going on holiday? = holiday insurance or travel money) or obvious up-sells and cross-sells (e.g. Got a mortgage with us? = we think you’ll need contents insurance)

However this segmentation, aided by the banding potential customers by age (e.g. Ignore if under 17, try and grab customers aged 18 – 21, market the heck out of those who are under 50 with money) always seemed fairly rudimentary to me.

Now several years on and with more life experience under my belt, I see that these basic categories and product segments are less and less relevant. Why is this then? Well...

1. The customer is more demanding
They now require financial products based around them and not just any old thing that their existing FS company wants to tout. However most typical products offered still don’t provide the flexibility that the modern informed buyer wants (e.g. Could I find an offset mortgage when I recently went looking for one? Nope!)

2. Life has changed
Society is more diverse and multi-cultural, consumer choice has fragmented and so have the niches that went with this. Therefore the life stage someone is at is no longer as predictable an indicator of the propensity to buy a financial product as it once was. Nowadays a person of 55 and 25 could have the same requirements in cars or property (and therefore the insurances needed to cover both), just as they could also have in music, clothes and food.

3. Trust in finance by younger people has crumbled
Just in the same way as you once would have advised a smart young city-dweller to work in a bank but now wouldn’t so much (for fear of getting a slap), trust in products such as savings and pensions has been eroded... leading a lot of the millennial generation to ignore traditional financial institutions and use alternatives (from the ‘bank of mum & dad and beyond)

In short, people and their finance needs have evolved and fragmented over the last decade, with the impact that the old models used are not the new models now needed.

How they should now segment is perhaps the subject of a different post...

Is digital optimisation the only strategy?

In a recent post, I blogged about how modern organisations have increasingly moved their digital strategies beyond the simple (“let's just understand”) to the more mature (“let’s optimise”). But although optimisation may be a worthy online aim in general, it is not necessarily the end game for all companies.

In short… digital operational optimisation is only one side of the story.

Back in 2012 I mentioned that to be a truly effective digital business you not only need to do things better, you need to do better things. This was something I called the Sir Terry Leahy approach, after hearing him speak on the subject:
http://press20.blogspot.co.uk/2012/03/multi-channel-competency-and-innovation.html

But how many companies actually include innovation as part of their digital strategy? How many try to bake into their culture and products the ability to create better things?
In my opinion, not many. Most are only concerned with playing catch-up with their peers, with some trying to emulate the trailblazers. Very few major companies seem to want to innovate in the digital space beyond the boundaries of what they've seen others do. This isn't innovation, its playing it safe.

And that's a shame.

The philosophy of content marketing

In a previous post I posed the Content Marketing equivalent of a long-standing philosophical question "if words are written and nobody reads them, are they really content?"

But the creation of content doesn't exist in a vacuum. To succeed at content marketing you don't just need great content... You also need:

100% code:
Just developing HTML that just about qualifies as 'fit for purpose' at the time of testing not only means that you may have issues down the line (e.g. when a specific browser is slightly updated) but may also hamper some of your SEO efforts. For example, some blogging platforms (e.g. WordPress) can take quite a lot of effort to get them SEO-friendly.

Killer UX:
Creating a fantastic user experience helps visitors browse your site with ease and complete tasks you want them to using functionality and content to inform them at every relevant step of the user journey.
So does content marketing include the use of  A/B and multivariate testing (MVT) approaches to optimise the user experience? You betcha! Alternative versions of content can have significant influence on visitor bounce rates and understanding... which can lead to improved conversion.

Exemplary 'white hat' SEO techniques
Forget the grey and murky areas of questionable search engine optimisation actions, your content marketing efforts have to be based on sound and utterly legitimate techniques. Why? Well thanks to the recent Google algorithm updates there is now an the even greater chance that less than honourable techniques could negatively affect your website's organic rankings.

Insight from digital analytics
A good analytical understanding of what your visitors are doing when they get to your website gives you the knowledge to evolve your content (text, imagery , video , animations, etc.) by changing it rapidly to respond to trends.

Does content marketing work just on your own sites?

I've been considering the question recently about where it is possible to carry out content marketing. Or to turn this into an actual question: "Can content marketing activity only be done on your own sites?"

My initial answer to this question was a clear "Yes, all CM activity needs to be done on your own sites". Or to put it into more 'consultant speak'... Content Marketing activity only utilises 'Owned' digital sources and does not involve 'Earned' or 'Paid' ones.
Note: Owned online properties are those where you have the ownership and means to change the content. Company brand sites, eCommerce portals, brochureware sites, Facebook pages (where your organisation manages what is posted there) and campaign microsites are all included in this definition.

However, whilst writing a blog post to this effect and therefore thinking it through in more detail... I realised that this initial response might not the correct one. Most content marketing efforts do start on your own sites, but ignoring the paid and earned sources means you are missing out on a significant amount of content marketing potential.

To try and explain my thinking, I've pulled the following quick diagram together:

This diagram tries to explain the following:

1. Your owned properties can be used to push content into the earned space. E.g. Via the use of social sharing tools you can extend the reach and impact of your content.
2. Your earned media can help shape influence and therefore build traffic to your owned media.
3. Paid media can help to directly bring traffic to your site.

This might be presented in some other way that conveys value or link juice more, so as-always I reserve the right to revisit this diagram in some other blog post.

Offer sites are NOT digital shopper marketing

I was recently shown the discount & offers website Casabu and was quite impressed with it. This useful registration-based site has several promotions that offer up to 90% discounts for items that mums might want to buy for their children.

This site was shown to me by a friend as with the description "Hey, you work with digital shopper marketing projects. This is a great example of an online shopper website". However, on this point I took exception.

In my opinion sites that provide discounts and promotions are not digital shopper marketing initiatives, they are what they are... useful platforms for registered people to buy a restricted set of products at heavily reduced prices.

For me, digital shopper marketing sites (in theory part of your multi-channel shopper marketing strategy) should not just give you offers or promotions, which are tasks that you carry out once you've decided to make your move towards purchase. Online shopper marketing should also be there to to guide and influence the shopper's decision to buy with persuasive content.

A data-driven digital strategy

Having a digital strategy for your organisation is a stepping stone to taking advantage of online channels to: make money, save money, maintain & improve service and deliver your brand promise.

Easy eh?

Well... no.

Having a digital strategy is better than not having one, but having the wrong one (or half of one) can be detrimental. And typically the wrong digital strategy is one that doesn't focus on the right things. For example just basing a digital plan on the deployment, use and support of online applications is giving yourself too narrow a scope.

If I could therefore give everyone just one  piece of advice, it is to create a data driven digital strategy; an approach that is:

1. Powered by information from your digital analytics

2. Informed by insight from analysts, who use different data sources to give your organisation a true picture of what your customers are doing and also want from you.

3. Continually updated based upon the most recent understanding of users, trends, their goals and the value this creates for your business.

4. Full of facts, rather than assumptions and guesses

Improving the multi-channel customer experience

I recently read that that 40% of organisations cite 'complexity' as the greatest barrier to improving multi-channel customer experience (hint: it was here).This may at first seem a large proportion of companies who are struggling to either specify, deliver or improve on their multi-channel efforts... But perhaps its not entirely unexpected for several reasons:

1. Understanding the multi-channel customer IS complex

2. The technology to implement it can also be complex to a marketer or other senior exec who has not grown up with it.

3. There is no senior stakeholder commitment to push forward change. Perhaps why only 28% of companies say there is ownership of the customer experience at board or ‘c- level’ (same source)