A few thoughts about what digital is, and is not

We live in a world where 'always on' digital is the norm, where women are kick boxers and guys wear cosmetics, where small startup companies are becoming the biggest companies, and where some of the formerly biggest companies are no longer in business. (Or rapidly losing marketshare and being squeezed out)

Why?

If I wrote about and discussed all the reasons here it would probably make for a chunky sized book, however I believe there a few top level reasons why that I mention below. This is by no means an exhausted list, just some key thoughts that immediately come to mind.

Misunderstanding of the role and potential of digital

Most companies think that they are 'doing digital' and to be fair many are 'doing it', but badly. 

Digital is not a plug in or add on to traditional ATL activity that comes at the end of the creative and strategic process.  Likewise on the other end of the spectrum digital isn't about jumping on a niche trend or technology just because it ticks the innovative box - that is equally as damaging to a brand maximising its advertising potential. 

Digital is a fundamental and essential element of the marketing mix and should be fully considered from the onset of any marketing initiative.

Shopping habits & ZMOT

You only need do a very quick Google search to realise the YOY growth of digital and its ever growing influence on shopping behaviours. We have moved way way WAY beyond the traditional shopping mentality of 'stimulus, shelf, experience' to the role that digital plays prior to (and during) this process, coined by Google and known as the Zero Moment of Truth (ZMOT). Previous post on ZMOT explains this in more detail. 

• Stimulus: The ad that generates initial interest
• Shelf: Known as the 'First Moment of Truth' this is the moment the consumer sees the product in store, touches the product, talks to a sales person, decides to buy the product.
• Experience: Known as the 'Second Moment of Truth' where the consumer buys the product and takes it home and uses it. 

Google predicts that in the not to distant future there will be (and already are) ZMOT marketing specialists. Some leading brands focus on their website and the user journey through the site itself which is extremely important stuff, but very few actually consider the journey of the prospective consumer prior to getting to their website. This element of the customer journey is where a brand is at the mercy of the world wide web and the magnitude of user generated content out there about a product / brand.

The Zero Moment of Truth is where a consumer is not using a search engine to 'search' but are using a search engine to 'connect' and become empowered with product and brand information prior to stepping foot into that brands shop/online store. There is a very very big difference and digital has never been more important to brands.

Interestingly, one consumers Second Moment of Truth (SMOT), that is when they have purchased a product and are using it can and often does become another consumers Zero Moment of Truth. The interaction between these MOT (moments of truth) is the essence of shopping behaviour, and the critically empowering role of digital. 

For a brand to succeed at the ZMOT stage, they need to search for their products in the way a consumer would - this is one of the most important yet least actioned opportunity for brands in the digital space. Agile business startups tend to understand and action this more so than their larger more traditional competitor counterparts. 

Digital is constant optimisation

Unlike a print ad or a TV commercial every digital interaction can create actionable insights and learnings. With tools on the market like Visual Website Optimiser that allow real-time multi-variant testing on all elements of a page/site, those who are really maximising their website efforts and conversion rates are moving away from spending the majority of their time on the rigorous planning of a project to more of a 'get it live and then optimise' philosophy. This doesn't negate the initial planning phase, just highlights that no matter how much qualitative research you do and assumptions you make regarding the target audience prior to a website launch, this research will never be as insightful as real life data. When a new website goes live, for some brands the hard work is over. In actual fact the complete opposite should be true - when the site goes live, the hard (and exciting work) begins; optimisation.

Customer Obsessed

Digital enables huge data insights, and one of the greatest opportunities that market leading ecommerce giants like Amazon evangelise is an obsession with their customers. Data allows brands like Amazon to move away from the traditional and hugely generic method of audience segmentation by demographic and psychographic to one specific to the individuals themselves.

Remember the phrase at the start of this post "women are kick boxers and guys wear cosmetics'? The point is that stereotyping your audience is a dated and ineffective method of maximising revenue from your customers. Amazon use excellent data mining techniques to truly understand and predict individual buying behaviour, habits and interests. A mutually permission based beneficial relationship is created between the brand and the consumer, where relevant content and product information is then communicated to drive future revenue and value from (and for) the consumer.  The emphasis is on post purchase, and digital very much is the enabler of this.

The diagram below illustrates Amazons customer lifecycle model, with the emphasis on post initial purchase where a relationship with the consumer is made and then site tools, win back strategies, and relevant communications drive future conversions.

This is working now so why focus on the future

In this day and age when technology and shopping/online behaviours are evolving exponentially, it has never been more important for brands to keep their fingers on the pulse. It's not about obsessing about future trends, but it is essential that brands are aware of trends.

Digital trends now are things like short form video (think Vine), Quantifiable Self (wearable technology), content (brands becoming publishers), 'always on' multi-screen/device touch-points, and to quote Jeff Bezos from Amazon to be 'Customer Obsessed".

Here are some useful 'Digital Trends infographics' on my Pinterest.

The most successful advertising campaigns that I admire are always integrated through-the-line campaigns. In my mind 'integrated' does not mean that a campaign simply exists across multiple channels with the creative being 'matching luggage' to the ATL idea - integrated means that the campaign not only exists on multiple channels, but has a specific and defined role that plays to the strengths of each channel, all of which collaboratively compliment one another.

Conclusion

Below are a few bullet points that I believe need to be considered by brands to maximise their success on digital.

• Defined role by channel - do not have 'matching luggage'. This is a ridiculous and dated idea that I simply can't believe intelligent marketing people STILL speak of and insist on. Digital works differently to TV and a newspaper advert, accept this and move on.
• Constant optimisation of digital properties - consider what would a 0.5% increase in your conversion rate mean in terms of revenue? Why wouldn't you action constant optimisation?
• Be customer obsessed and use data to drive relevant post purchase communications to grow the lifetime value of the customer - and the value of the brand to the customer. 
• Understand the user journey prior to going to your website (ZMOT), and the brand opportunities for you in this space.
• Keep an eye on future digital trends but don't obsess about them. Successful digital campaigns tend to utilise existing channels to tap into existing behaviours in creative and innovative ways. 

About the author
Si Muddell is a Digital Strategist who has worked extensively both agency and client side. Si is fascinated about marketing, psychology & what motivates people, and loves guitar, surfing and travelling.

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