jessops evaluation

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  • 8/9/2019 Jessops Evaluation

    1/5

    Digital Marketing Evaluation

    Jessops Photo

    Jessops initial business objective was to give the brand an overhaul by expanding into a new

    area of online activity. Research showed that many people are retouching their photos, leaving them on

    cameras or losing precious memories because they feel software is overly complicated for personal use.

    Unhappy with their photos, there was a significant opportunity for Jessops to act in the area by offering

    a simple photo editing service which allows customers to make basic edits and retouches before they

    order prints and other materials from the website.

    The marketing objective became promoting this new service to the wide audience in order to create

    awareness and drive purchase using a combination of offline and online levers. Offline levers (ATL

    advertising) drive the consumers onto the website while online levers help the customer reach Jessops

    as they search for online photo printing.

    The three digital marketing objectives relate to the three stages of customer acquisition, conversion

    and retention:

    Acquiring 50% of people searching for photo printing and related terms via Google (1,410,000

    of 2,820,000);

    Converting 10% of those that click through to purchase from Jessops (141,000 of 1,410,000);

    Retaining 70% of those that have purchased so they purchase again in the following 12 months

    (98,700 of 141,000);

    Three separate goals are being used in order to gain a better understanding of the analysis and to later

    integrate the results with the business objectives.

  • 8/9/2019 Jessops Evaluation

    2/5

    1. Financial Evaluation

    These measures relate to all of the three objectives. Sales are determined by the number of acquired and

    retained customers who make a transaction, while revenue is overall dependent on the initial marketing

    spend to acquire new customers in the first place. Jessops will have achieved its financial objectiveswhen overall revenue exceeds marketing spend in order to attract new customers.

    Financial estimate: 141,000 customers placing orders of 15 on average: 2,115,000

    98,700 returning to place another order of at least 15: 1,480,000

    Total: 3,595,000

    A lower figure would suggest that we have either not attracted enough customers or have not managed

    to make existing customers return for a purchase, case in which the tools and approaches used need to

    be readdressed.

    2. Digital Customer-based Evaluation

    For the purpose of this campaign, the default tracking and analysis tools used will be Google Analytics

    and AdWords Campaign Reports.

    A) Acquisition

    Average CPC: Data will be collected on ad groups, keywords that are gaining more

    impressions, getting more clicks or producing more/less revenue compared to a prior relevant

    time period. This will be measured in order to make any necessary changes to keyword bidding.

    Purchase value: Measured through orders placed on the website; average spend expected to be

    around 15 per customer: 7-8 off-peak and 20+on special occasions (holidays, graduations,

    weddings, anniversaries etc. where orders might also include canvas prints and other

    memorabilia). The type of products ordered are not as important, although if a certain category

    is dropping in popularity (i.e. mouse pads) then the problem will have to be addressed if it poses

    a threat.

    Purchase size: Also measured via the website average order size; following incentive

    programmes offering 40 free prints, the estimated purchase size is of 70-100 photos for one

    print album but the desired one is of 110-130 photos on special occasions. However, due to the

  • 8/9/2019 Jessops Evaluation

    3/5

    possibility of ordering canvas prints or cups and tshirts, purchase size of 70-100 or more is only

    relevant for regular prints.

    Cost of acquiring new customers:

    o Free: Using twitter for special offers and promotions (Currently 760 followers) and

    YouTube video tutorials and features;o Google AdWords Traffic Estimator: Using the estimates provided as a guideline, the

    average CPC for photo printing is of 2.32 (at a maximum of 5.44) with almost 30-38

    clicks expected per day, bringing the cost per day at 60-100.

    o Google AdWords Campaign Reports will be used in the full campaign roll out in

    order to get an accurate indication of the relative number of impressions over 6 months.

    The ad click-through rate will be periodically re-evaluated and monitored through

    AdWords Change History tool should it not provide the desired results.

    Keywords Max CPC Estimated Avg. CPC Estimated Ad Positions Estimated Clicks /

    lower upper upper lower lower upper

    photo printing 5.44 1.86 2.58 1 3 30 38

    Search Network Total 1.86 2.58 1 3 30 38

    Search Engine Optimisation: Following a SEO consultancy scheme, the websites

    effectiveness will be tested in order to see keyword match and frequency in meta tags,

    description and page title and how they match against competitors. Based on these keywordsand related searches the website will be optimised in order to dominate the search engine results

    page.

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  • 8/9/2019 Jessops Evaluation

    4/5

    Source:http://www.abakus-internet-marketing.de/tools/topword.htm

    Visitors: Absolute unique visitors are counted with the aid of a tracking tool, in this case

    Google Analytics in order to get the number of true unique visitors across an arbitrary period of

    12 months. Part of the integration with other levers, traffic is expected to increase following

    both email campaigns and TV and print adverts. However, no exact correlation exists between

    website traffic and a print ad. Behaviour on the website is also monitored in order to see

    whether people are making use of the free trial offered on new signups, amount of new accounts

    registered, views on tutorial videos and time spent on site as well as sections explored with the

    aid of a clicking heatmap.

    Email campaigns will be monitored in order to see what people are clicking on (pictures vs.

    text), what they respond better to (categories of products or discounts and testing response),

    what the actual reach and how many people read or delete the emails.

    iPhone app success will be evaluated in terms of total number of downloads, usage frequency

    and number of orders placed from within the application, also representing a successful

    conversion.

    B) Conversion

    Optimal conversion rate: 10% of 1,410,000 traffic from SERP

    Website behaviour tracking: A low period of time on the website might suggest that it is hard

    to use and the user experience is lacking and the customer has given up, while an extremely

    long period of over 15 minutes suggests that the website is not user-friendly enough. Ideally this

    needs to be around 8-10 minutes at most. The number of users who choose to connect with

    other photo storage websites (Picasa, Flickr or Facebook) will be an indication of successful

    customer conversion. If at least 50% of those who order photos have imported them from otherwebsites, the editing and uploading process has achieved its goal.

    Database marketing: The database will be routinely checked for lapsed customers who have

    not returned or are nearing their 1-year between purchases period. Emails will be tracked in

    order to see whether users have seen them and acted upon them or if not, what they were

    looking at when they gave up.

    http://www.abakus-internet-marketing.de/tools/topword.htmhttp://www.abakus-internet-marketing.de/tools/topword.htm
  • 8/9/2019 Jessops Evaluation

    5/5

    The online customer service that deals with customer queries in real-time will be used as

    feedback for missing or desired features. If consumers voice any

    C) Retention

    Retention goal: 98,700 of the 141,000 (70%) of those who have purchased will return foranother purchase within 12 months;

    Frequency and amount of repurchases: Data on the number of purchases made from the

    same account over the course of 12 months will be collected based on last accessed date and

    activity while logged in a combination of time spent on site and activities undertaken.

    Customers expected to return at least once in 12 months to print an entirely new photo album

    (average of 70-100 photos as per purchase size mentioned above) but more often to view and

    track orders or search for promotions. However, if customers return for more frequent but less

    valuable orders, this is also deemed acceptable so long as their average spend in one year is a

    minimum of 30

    Customer Lifetime value: Given the fact that photo prints are not essential products for

    consumers, if the cost per new customer exceeds their expected lifetime value, they will be

    deemed unprofitable. Lifetime value is expected to show an increase in correlation with the life

    stage of customers and their disposable income. While the average initial order value is

    expected to increase, an lifetime value of 60 over two years is deemed to be profitable. Data

    will be collected from previous purchase history and website activity.