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Lecture 3 Merged

The document outlines various digital marketing metrics, including media types (free, paid, earned), digital vs traditional media, and key performance indicators such as impressions, clickthrough rates, and bounce rates. It emphasizes the importance of using analytics tools like Google Analytics to track user engagement and behavior on websites. Additionally, it discusses the complexities and cautions associated with interpreting these metrics for effective marketing strategies.

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0% found this document useful (0 votes)
5 views

Lecture 3 Merged

The document outlines various digital marketing metrics, including media types (free, paid, earned), digital vs traditional media, and key performance indicators such as impressions, clickthrough rates, and bounce rates. It emphasizes the importance of using analytics tools like Google Analytics to track user engagement and behavior on websites. Additionally, it discusses the complexities and cautions associated with interpreting these metrics for effective marketing strategies.

Uploaded by

i20vedikam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 123

Dr Neeraj Sanan

Digital Marketing Metrics Lecture 3


Media Metrics (contd.)
FREE PAID EARNED

Posts Boost posts Too much


Internet, social Virals
Website SEM, Display data
Digital
whatsapp/ call/ Internal EDM Database FOCUS
Virals
email

PR Advertising W-o-m, social ✓


TV / Radio

How to
get data
Newsprint/ OOH
Traditional PR Advertising W-o-m, social

Events &
Activation Speaker Sponsorships PR
Digital: Media vs Products

• Digital Products
• Our own products getting viewers & revenues (read profits)
• Digital Marketing
• Leveraging the Digital Media for promoting ourselves
• Direct Database Marketing (CRM: customer relationship management, EDM : Electronic
direct mailing)

• Digital Products need traditional media also


• Traditional Products need Digital media also
• Omnichannel Products need omnichannel media
Lading Page/ Website: Anchor for digital marketing

Google Analytics Audience Profile from different channels

- Set up Google Analytics Code 1. Demographics


- Set up Goals 2. Location
1. Will help define the journey of the person 3. Device
who filled the form
4. Average Time spent on Website
2. Demographic, location, Device, Source, 5. Bounce Rate
Medium of the person who filled the lead
6. Average Time spent on different pages
form
7. Visitors on the Website
This will help in
- Tracking Leads
- Tracking Traffic Source
Digital Marketing
Digital Marketing: Terminologies

• SEM : Search Engine Marketing; keyword marketing. The ‘paid’ URLs that show up on the
side of organic results, when a user is searching something
• SEO: Search Engine Optimizing/ organic search. The URLs that show naturally
• Display Ads: Banners, Position, Videos, Images
• Ratings: UV (unique viewers), PVs (Page Views), Time Spent
• Contextual Ads: Serving ads after crawling a users’ content consumption
• Remarketing: Cookie tracking people who are dropping out and reaching them again
Metric D1: Impressions, Pageviews & Hits

• Impressions: # of opportunities that have been presented to people to see an advertisement


• Pageviews: # of times a page has been displayed to a user
• Hits (#) = Pageviews (#) * Files on Page (#)
• Pages composed of many small files generate numerous hits per pageview
• Measuring hits, though previously popular, has largely been abandoned as hits are a
function of site design
Metric D1: Purpose is to assess web site activity

• Ideally pageviews counts pixels returned to a server, confirming the page


was properly displayed
• Pageviews should be recorded as late in page-delivery process as possible in
order to avoid inflated counts
• Major web sites have an ad server involved in presenting advertisements
• This technology to serve different ads to different visitors is widely
available
• A great marketing tool but given this we must confirm who saw what
Metric D1: Complications & cautions

• Measures of responses of a server to page & ad requests from users’


browsers, filtered to remove robotic activity & error codes prior to reporting
often include duplicate showings to same visitor
• Gross impressions may be a better term
• Measures do not take into account
• # of ads actually seen
• Quality of what is shown
• Whether message appeared to a specific, relevant, defined audience
• Whether those who saw page have any recall of the page/ad
Metric D2: Rich Media Display Time & Interaction Rate

• Rich media: Interactive media that allows consumers to be more actively engaged

• Average Rich Media Display Time (#)

𝑇𝑜𝑡𝑎𝑙 𝑅𝑖𝑐ℎ 𝑀𝑒𝑑𝑖𝑎 𝐷𝑖𝑠𝑝𝑙𝑎𝑦 𝑇𝑖𝑚𝑒 (#)


= 𝑇𝑜𝑡𝑎𝑙 𝑅𝑖𝑐ℎ 𝑀𝑒𝑑𝑖𝑎 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠 (#)

• Rich Media Interaction Rate (%)

𝑇𝑜𝑡𝑎𝑙 𝑅𝑖𝑐ℎ 𝑀𝑒𝑑𝑖𝑎 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠 𝑤𝑖𝑡ℎ 𝐼𝑛𝑡𝑒𝑟𝑎𝑐𝑡𝑖𝑜𝑛𝑠 (#)


= 𝑇𝑜𝑡𝑎𝑙 𝑅𝑖𝑐ℎ 𝑀𝑒𝑑𝑖𝑎 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠 (#)
Metric D2: Related Metrics

• Rich Media Interaction Time: Total amount of time a visitor spends interacting with
advertisement
• On same visit user might interact with the media twice
• Video Interactions: Video can be classified as rich media depending on way it is served to
viewer
• Typical interactions with a video: play, mute, pause
D2 Purpose: determine how an advertisement engages viewers

• Metrics track how long people spend viewing advertisement as a proxy for how interested
they are in its content
• A user who interacts with rich media is showing evidence of being more actively engaged
• Suggests they are more likely to take action, e.g., purchase
D2: Complications & cautions

• How to convert abundance of data into information?


• Marketers usually cut display times off at some point
• E.g., if rich media is displayed for more than X minutes, assume the consumer has been
distracted
• Averages might hide huge variances among users
• Be aware of changes in way the data was gathered!
• What counts as interaction? Depends on form of ad
• E.g. spending 1 second with mouse over the impression?
• Interaction is not an end in itself
Metric D3 : Clickthrough Rate

• Clickthrough rate measures impressions that lead to an action


𝐶𝑙𝑖𝑐𝑘𝑡ℎ𝑟𝑜𝑢𝑔ℎ𝑠(#)
• Clickthrough rate (%) = 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠(#)

• Note unless user clicks on “Buy Now”, clickthrough rate only measures one step on path to a
sale
D3: Complications & cautions

Large videos are likely to


increase # of people who
abandon process before ad is
served, especially if potential
customers have slow
connections
D3: Complications & cautions
• On sophisticated sites # of impressions ≠ # of pageviews as different ads are
served to different people
• Good news: details usually given in reporting package
• Assess absolute click numbers as well as % of impressions
• Clickthroughs count clicks not users
• Clickthrough rates for banner ads are often very low
• Identify ‘dead end’ pages visitors rarely move beyond
Metric D4: Cost per Impression, Cost per Click & Cost per Order

𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 ($)


• Cost per Impression ($) =𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠 (#)
Input
𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 ($)
• CPM($) =𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐼𝑚𝑝𝑟𝑒𝑠𝑠𝑖𝑜𝑛𝑠 𝑖𝑛 𝑇ℎ𝑜𝑢𝑠𝑎𝑛𝑑𝑠 (#)

𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 ($)


• Cost per Click ($) = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑙𝑖𝑐𝑘𝑠(#)
Output
𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 ($)
• Cost per Order ($) = 𝑂𝑟𝑑𝑒𝑟𝑠(#)
Business vs Marketing: CAC vs LTV

• Ineffective or badly targeted ads may have a small CPM, but a high Cost per Click
• Companies prefer to compensate media & agencies on basis of new customers
acquired rather than impressions
• Agencies may push back as this arrangement passes risk onto them
• Acquisition depends on the quality of the product as well as the advertising
• Remember LTV: Life Time Value or
• CAC: Cost of Acquiring a Customer
𝐴𝑑𝑣𝑒𝑟𝑡𝑖𝑠𝑖𝑛𝑔 𝐶𝑜𝑠𝑡
= 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑁𝑒𝑤 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 𝑤ℎ𝑜 𝑀𝑎𝑘𝑒 𝑎𝑛 𝑂𝑟𝑑𝑒𝑟 (#)
Visitors < Visits < Pageviews < Hits
Metric D5: See, Click, Come

• Visits (or ‘sessions’ in Google Analytics): # of sessions on a site


• Can consist of a single or multiple pageviews
• To calculate visits one must establish a timeout period
• Subsequent requests from an individual who visited page count as new visits only after
timeout period elapsed
• Visitors (or ‘users’ in Google Analytics): # of unique people who visit
• Abandonment refers to unfinished shopping carts
• Shopping carts that don’t result in purchase
• Very common online
D5 (contd.): See, Click, Come

𝐶𝑎𝑟𝑡𝑠 𝑁𝑜𝑡 𝐶𝑜𝑚𝑝𝑙𝑒𝑡𝑒𝑑 (#)


• Abandonment Rate (%) = 𝐶𝑢𝑠𝑡𝑜𝑚𝑒𝑟 𝐵𝑎𝑠𝑘𝑒𝑡𝑠 𝐼𝑛𝑖𝑡𝑖𝑎𝑡𝑒𝑑 (#)

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐶𝑜𝑛𝑠𝑢𝑚𝑒𝑟𝑠 𝑤ℎ𝑜 𝑃𝑢𝑟𝑐ℎ𝑎𝑠𝑒 (#)


• Conversion Rate (%) = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑉𝑖𝑠𝑖𝑡𝑜𝑟𝑠 (#)

𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑆𝑡𝑜𝑟𝑒 𝑉𝑖𝑠𝑖𝑡𝑠 (#)


• Online to Offline Conversions (%) = 𝑂𝑛𝑙𝑖𝑛𝑒 𝐴𝑐𝑡𝑖𝑜𝑛𝑠 (#)
D5: Complications & cautions

• Visitors are more difficult to measure than visits


• Consumers often aren’t keen to register on different sites
• Users employing different browsers counted as different users
• To count unique visitors, companies often use cookies
• Files downloaded on one’s computer for future identification
• Cookies are also used to offer customized content
• Metrics can be distorted by automatic activity (“bots”)
• Bots aim to classify Web content
• Should eliminate bots IP addresses before reporting data
Metric D6 Bounce Rate (Web Site)

𝑉𝑖𝑠𝑖𝑡𝑠 𝑡ℎ𝑎𝑡 𝐴𝑐𝑐𝑒𝑠𝑠 𝑂𝑛𝑙𝑦 𝑎 𝑆𝑖𝑛𝑔𝑙𝑒 𝑃𝑎𝑔𝑒 (#)


• Bounce Rate (%) = 𝑇𝑜𝑡𝑎𝑙 𝑉𝑖𝑠𝑖𝑡𝑠 𝑡𝑜 𝑡ℎ𝑒 𝑆𝑖𝑡𝑒 (#)

• Measures site’s effectiveness in encouraging visitors to continue visit


• See more at Google Analytics Academy
• Money spent generating traffic for whom site is not relevant -- high bounce rates -- is money
wasted
• Use Content Experiments
• Show different pages to different visits and see which perform best, have the lowest
bounce rate
Bounce Rate: Complications & cautions

• Metric often reported by default by site’s host


• Visits (rather than visitors) likely to be used in computation
• Lowering timeout period will result in ↑ bounce rates
• Bounce rate can be defined for individual landing pages
• Some effective pages will have high bounce rates, e.g., directions
• Metric’s value depends on objectives of organization
Metric D7 Social Media Metrics: Friends/ Followers/
Supporters/ Likes
• Friends (#): # of friends of entity registered on a social network
• Indicates active interest in owner of the page
• Similar to Followers/Supporters etc…
• Likes (#): # of individuals favoring a social networking post/page
• Liking is a very low commitment activity
• Still more likes probably indicates greater appeal
Social Media Costs: Construction

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑡𝑜 𝑃𝑟𝑜𝑣𝑖𝑑𝑒 𝑆𝑜𝑐𝑖𝑎𝑙 𝑁𝑒𝑡𝑤𝑜𝑟𝑘 𝑃𝑟𝑒𝑠𝑒𝑛𝑐𝑒 ($)


• Cost per Friend ($) = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐹𝑟𝑖𝑒𝑛𝑑𝑠 (#)

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑡𝑜 𝑃𝑟𝑜𝑣𝑖𝑑𝑒 𝑆𝑜𝑐𝑖𝑎𝑙 𝑁𝑒𝑡𝑤𝑜𝑟𝑘 𝑃𝑟𝑒𝑠𝑒𝑛𝑐𝑒 ($)


• Cost per Like ($) = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐿𝑖𝑘𝑒𝑠 (#)

• Typical costs include design & update sites, devising social media marketing strategies

• Often very hard to attribute specific outcomes to social networking actions


• Yet a vital part of many marketing strategies
Social Media: Complications & cautions

• Some segments more reluctant to reveal brand loyalty


• 2 equally strong brands can have different levels of social presence
• Products used privately less likely to gain public support
• “Friends” & “Likes” intermediary metrics, not actual aim of organization
• Value of a like cannot be attributed solely to social media strategy
• Those incentivized to follow/ friend brand are likely to be less valuable than those who
followed without prompting
• Value is profit generated from customer, not revenue
Metric D8: Downloads

• Downloads (#): # of times that application or file is downloaded


• E.g., apps, software trials, ring tones, pictures, etc.
• Does not distinguish ‘1 individual downloading 10 times’ vs. ‘10 individuals downloading 1
time’
• Do you count completed or finished downloads?
• In standard analytics packages, downloads can’t be tracked like normal “pages”
Over to
mind-
measures
Dr Sanan
Mind Measures 24-Dec-24
Marketer’s Output & Metrics

Contextual
B. Share of A. Share of
Scale
Market Mind
Challenge 2 →

© Prof. N.Sanan, 2021


C. Share of Media
Defined
D. Financials
Scale

Structured Unstructured
Data Data
Challenge 1 →
A. Share of Mind
Share of Mind

Awareness Attitudes Usage CX

• Also called “tracking” data


– Data gathered typically through large surveys
• Hierarchy of Effects – customers progress through sequential stages
1. Share of Mind: Awareness

• Awareness: % of potential customers aware of the brand


• Aided awareness when prompted with options
• Unaided awareness when consumer offers name
• Top of Mind: first brand coming to mind when asked about category
• Ad Awareness: % of target consumers who show awareness of brand’s advertising
• Brand/Product Knowledge: % of customers with given knowledge/beliefs about
brand/product
2. Share of Mind: Attitudes

• Attitude: Consumers beliefs combined with how strongly they feel

• Attitude/ Liking/ Image: often on 1-5/1-7 scale

• Perceived value for money

• Perceived Quality/ Esteem

• Relative Perceived Quality

• Intentions: e.g., reported willingness to switch if favourite brand unavailable

• Purchase Intentions: reported chance of buying


2. Attitudes : Willingness to Search (competition entry)

• Willingness to Search (%): % of customers willing to delay or reduce purchases or change


stores to avoid switching brands
• ‘accepts no substitute’

• High WTS implies strong market position


• WTS driven by emotional benefits the product provides, its image, usage experience it
generates, whether it has influential promoters etc…
3. Share of Mind: Usage

• Purchase frequency and units per purchase


• How many people have tried and ‘rejected’ the brand
• How many have ‘adopted’ it in their regular portfolio of brands?
4. Share of Mind: CX/ C-Sat Customer Satisfaction (launch)

• How satisfied are you with the product/ service?


• Decreases in satisfaction can decrease sales & profitability, both directly and
indirectly through negative word of mouth (WOM)
• On the positive side, satisfied customers are likely to recommend (positive
WOM)
• Customer satisfaction probably a leading indicator of future purchases
5. Share of Mind: CX – NPS Net Promoter Score (investor)

• Net (not absolute) measure


• Trademark of Fred Reichheld/Bain
& Company
• Predictor of Market Share
Neuroscience Techniques: How to measure

• Can help illuminate preconscious reactions


• Involuntary responses to novel, rewarding or threatening stimuli

• Measures from advances in technology:


• Electroencephalography (EEG)
• Functional Magnetic Resonance Imaging (fMRI)
• Facial Action Coding System (FACS)
• Eye Tracking
Electroencephalography (EEG)

• Readings from electrodes in headgear show activity in different brain areas


• EEG measures brain waves in terms of Hertz (frequency) & micro-voltage (amplitude)
• Answers questions like: “What is consumer’s immediate reaction to ad?”

Courtesy: iMotions
Functional Magnetic Resonance Imaging (fMRI)
• Consumers’ brains monitored while shown stimuli in a
scanning machine
• Visualises brain processes at fine spatial resolution
• fMRI measurement: blood oxygen level dependent
(BOLD) brain tracking that resolves activity to the
micrometer scale per second
• Can use fMRI to uncover emotional response triggered
by different brands

Courtesy: internet
Facial Action Coding System (FACS)

• Attempts to identify consumers’ mood/ reaction to


stimuli through facial expression
• Software programs are trained to classify facial
expressions
• Helps marketers understand emotions consumers
feel when presented branded products/ ads

Courtesy: wikipedia
Eye Tracking
• Eye Tracking provides a real-time record of where
visual attention is directed
• Eye Tracking measures
• Fixations per second
• Saccades (eye movements)
• Pupil size
• Blinks per second
• Marketers can learn how much attention consumers are
paying to ads, or which packaging attracts more
attention
Courtesy: Tobiipro
Learning from cases

• Read the exhibits (data) before you read the case


• Remember cases are written with the author bias, don’t imbibe the bias.
• Do a web-search on the latest stuff
• Try and contrast it with an example from India, with data of course
• You can catch more about the company on https://www.rbi.com/English/corporate-
profile/default.aspx
Burger king for December 30th

• How did Burger king position itself?


• How did BK allocate Resources
• What is BK’s Global formula for a 15s TV commercial?
• How did BK do Creative selection with social media and PR around?
• How did BK adapt to India launch (research and present)

Groups to submit on or before December 29th


‘Pepsi-Brisk’ for December 31st
1. Should Brisk be advertised on primetime TV or with viral ads in the months following the Super Bowl
ad? How do the two medium compare on cost and benefit?
2. How are the ways in which target consumers view ads in each media different? Which differences
matter most to the protagonists? Can these consumer behaviours be factored into a single measure that
helps the protagonists compare the benefits of each media?

3. Which of the four ad concepts should Mary Barnard and Marisol Tamaro choose? What elements
matter?

4. What does Mekanism mean by engagement? How do they attempt to increase engagement with the
brand using viral ads?

5. Analyze an example from the Indian FMCG market which is facing the same challenges as Pepsi-Brisk.
and make their standard operation procedure for a multi format (aka multi-media) campaign planning.
Groups to submit on or before December 29th
AI in CXM
Dr Neeraj Sanan

© Dr Sanan
What is

• What is NPS

• What is C-SAT

• What is Net Easy Score (NES)

© Dr Sanan
Metrics, Technology & Business Growth

© Dr Sanan
What any Business wants: Earned Growth

Businesses unlock huge efficiency with a control on Earned Growth

Increase conversion of Stop switch to Generate Earned Referrals


prospects/ spend from competition
existing customer

Evaluate your workflow and design the right NPS-led measure to


support your distributor and their teams maximize Earned Growth.

© Dr Sanan
B2C Business: what they need

Customer contacts Agent deals with investor


support & Closes Call

Happy Customer
Initiate Referral program

Identify Strategic Issues Real-Time survey goes to


customer

Dissatisfied customer
predict churn Agent closes follow up
calls

Rescues customer

© Dr Sanan
B2B: Managing Channel
Sales Team closes follow up
with even mildly dissatisfied
HIPO

Identified HIPO Retailers

Addresses Concern and


Retailer Interactswith Monthly(selected Rescues HIPO
End Customer & Brand retailers)

Incentive programsfor
Promoters
Quarterly Targetsetting Identify StrategicIssues For Other Retailers
based on Retailer NPS

Predictive ChurnRecovery
Program for Detractor
© Dr Sanan
Therefore NPS

• Net Promoter Score is a metric that was first developed in 2001 by Satmetrix and Fred
Reichheld to predict customer purchase.
• NPS is designed to measure your customer's overall brand loyalty (an not satisfaction)
• NPS charts your customer loyalty by asking a single survey question: “How likely are you to
recommend Bajaj motorcycle to a friend or colleague?”

DETRACTORS PASSIVES PROMOTERS

0 1 2 3 4 5 6 7 8 9 10
Not at Extremely
Neutral likely
all likely

NPS = % of Promoters
(9s and 10s) - % of Detractors
(0 through 6)

© Dr Sanan
But surveys…!

© Dr Sanan
Technology in CX measurement

Survey/ Call-center based Dashboards


1. Batch process: once a week. 1. Real Time feedback, real time report

2. 10-15 minutes survey (CATI/ on-line) 2. 30 seconds -120 s

3. 15-20% sample check, <1% response 3. 100% customers, 5%-30% response

4. Centralized with MR resource 4. Customized dashboard for every employee

5. Uses AI to understand what your customers are really


feeling

6. Then predict what they might do next

© Dr Sanan
Benefits of Technology in CXM
NPS Score But businesses need more…
• Measure Brand loyalty 1. How is your score relative to our competitors? (do
• Become popular as it is a useful predictor of future competition benchmark study)
business performance 2. Why is your score where it is? (driver analysis)
• Higher the Net Positive, more is the medium-term 3. What should you do to improve our score? (insights)
stability of business 4. I ask my customers, but I am not getting responses?
(help train team trainers to get a response)
5. What about the prospects who check my digital assets
(websites) but do not interact? (digital surveys)
6. What does my customer journey look like? (map)
7. Please predict what my customer will do next e.g., will
he return to my showroom for servicing? (☺)

© Dr Sanan
The implementation

© Dr Sanan
Implementation Philosophy:

We take Actions → Build relationship → Growing Business

• Every relationship is built around many dynamic transactions…. (touchpoints)


• Every touchpoint elicits cognitive response…… (compliment, complaint, suggestion)
• Based on multiple transaction, we have a customer relationships (Joy, love, anger, surprise, sad)
• A very satisfied customer may also have some ‘disappointment/ severe dissatisfaction’ with a few transactions
• So, we need to measure
• All transactions of all customers ..........................................use tech
• Not just quant measures but also emotions….………..…..use natural language processing (NLP) to extract key words
• Use AI to continuously enhance every touch point……….Activity (buying, servicing etc), Context (day, month etc.),
Interaction (chatting calling etc)
• Build longitudinal data for customers……………………..Modelling

© Dr Sanan
Customer Journey

Implementing
Alerts
LISTEN

Data visualize
© Dr Sanan
Listen & analyze using AI

NPS (Relationship)
(BRAND) CES (Transaction)
(or C-SAT)

Overall how likely are you recommend Bajaj How easy was it to get your purchase made?
Motorcylesto your friends and colleagues?

Very Somewhat Somewhat


0 1 2 3 4 5 6 7 8 9 10 Difficult Neutral Easy Very Easy
Difficult Difficult Easy

Extremely Unlikely Extremely Likely

Please share why you gave us this score? Please share why you gave us this score?

Please tell us what we did well/ what we can do better? Please tell us what we did well/ what we can do better?

© Dr Sanan
The Survey Structure
Focus on response rate
1. keep to less than 2 mins
Personalized Welcome Text
2. The Hero Question needs to be
asked first – Before any further
influence of the core questions.
The Hero Question 3. Personalize survey & Email
1. Skip questions based on what we
know about the customer
Follow up Text Question 2. Refer to specific interactions in
the invite email
4. The same link will be used
across channels so that the user
Core questions based on process area
can start in one and, if required
end in another.

Ask for referral from promoters 5. Social Media sharing will


enable the comments to be sent
directly to the marketing team
with consent to publish on your
Social media consent portals.
15
© Dr Sanan
Increasing Response Rate by implementing ‘social rules’
Get the respondents more invested
✚ Give them surveys that are easy ✚ Immediately post an event so
to fill that it’s still fresh in their minds
✚ Across a medium, they use ✚ Respond back to them via
most often – WhatsApp, Email, phone or email to let them
SMS, Messenger know their voice was heard
✚ In a language that is most
comfortable

Get the business stakeholders more involved


✚ Give them live reports to see ✚ Public recognition for positive
how many of their contacts are comments
answering
✚ Top management recognition
✚ Make response rate a part of for response rates
their KPI – set up targets
✚ Respond back to the customer
✚ View the entire customer with complete information
journey
© Dr Sanan
Listening with technology delivers an integrated Data lake
High ROI Customer
Insights Journeys

Customer
Brand Recovery

ANALYZE

Predictive
Touch
Net Easy LISTEN NumrSense ACT
Courtesy: Intin Analytics

Social Test Ideas

Insights Consumer
Digital Dashboards Instincts Integrate with
Discovery workflow

© Dr Sanan
A typical implementation
The Customer Journey Touchpoints Overall Customer Relationship Competitive NPS Benchmark
NES is the primary measure used here NPS is the primary measure used here NPS is the primary measure used here

3 – 6 months 3 – 6 months

These touchpoints individually link to This is your primary company-wide KPI – This measure shows your relative strength
specific outcomes – e.g. better sales CX = This is the measure that will link to in the market – Will correlate best with
2.5X more sales company sales your long term (3-5 year) company growth

© Dr Sanan
The Output: Alerts, Reports, Analytics

© Dr Sanan
A report for every role Roles

Every stakeholder who requires information HQ Roles


will get the information they need. • CX Team [HQ]
• Functional Heads
• Regional Heads
• Web/Marketing
1. Hierarchical Reports

2. AI driven Comment Analytics Front line Roles


• Branch Manager
3. Auto Prioritization using correlations/ regressions • Agent

4. Realtime

5. Easily understandable

20
© Dr Sanan
AI Text Analytics

Conclusion:
This chart enables us to delve into the
specific concerns customers highlight
in their feedback.

Can you identify

© Dr Sanan
Map The Customer Journey
Pre- Dealership (IM)
6 28
Website Base: 13950 Tele-Enquiry Base: 3063

Areas for Improvement


RNPS

58 56 40
Sales (IM)
Can you identify?.

Booking Base: 10541 Test Ride Base: 5512 Walkin-Enq Base: 11025

24
17
Our Strength
43 -55
Base: 23119

Post Sales (IM) Can you identify?.

Delivery Base: 7239 Service Base: 24340 Complaints Base: 1379

24
RSA Base: 1358

© Dr Sanan
66
Rides Base: 1097
VISUAL-ANALYZE Uber modifies its trip cancellation policy

10

High
9.5

9 Compared with Competition


Service / Experience
Secure / Safety
8.5 Fares / Subscriptions
Car Availability
Timing related
8

Service / Experience
Car Quality
7.5
Longer Wait Time Offers / Promos
and Delays Car Not Available
Fares Related
7
Understanding that churn is caused primarily
Driver Behaviour due to trip cancellation allows UBER to create
6.5
an differentiated strategy

6 Customer Support

5.5
Trip Cancellations
Low
5
-2.2 -1.7 -1.2 -0.7 -0.2 0.3 0.8 1.3 1.8

High Negative Impact High Positive Impact


Impact on Recommendation
© Dr Sanan
VISUAL-ANALYZE
Service and 0.4
Priority Maintenance
Leverage
High Impact – Low Performance Bike and Engine High Impact – High Performance
0.35 Performance

Comfort and Riding


0.3
Experience
Customer Support Brand loyalty and
0.25 Perception
Areas of Improvement are:
0.2
• Can you identify?
Impact on NPS

Aesthetics and Build


0.15
Safety and Handling
Professionalism and Staff Purchase and Delivery…0.1 Technical and Features
Behaviour
Customer Engagement
Documentation and 0.05
Registration
Store-visit Experience
0
-100 -90 -80 -70 -60 -50 -40 -30 -20 -10 0 10 20 30 40 50 60 70 80 90 100
Roadside Assistance Ownership and Longevity
-0.05

NPS score of customers when talking Value Proposition


about the categories
Base: AI comments
Size of the bubble: Number of people talking about the category
Y axis: Represents the impact the category has on the NPS Score - Indicates how much of a influence this topic had on the NPS score
© Dr Sanan X axis : Represents the NPS score for those respondents who spoke about this topic – Indicates how happy they are overall.
Advanced analytics with Time-Series

© Dr Sanan
Predicting based on analysis

© Dr Sanan
illustration
Creating a link between transactions & relationship

Predicted NPS Score based on transaction NES


NES Trend Impact Lag

Predicted NPS Band Actual NPS Score


Sales 20 4 QTRS

Delivery 25 3 QTRS

Predicting
NPS

Net Ops 24 1 QTRS

Support 31 2 QTRS
Your NPS KPI is affected by things that might
happen 1 year in the past. Acting on leading
indicators can help you react to the market
faster than your competition.
© Dr Sanan
To implement you need an understanding
of Research, Technology and Data

© Dr Sanan
Financial
Metrics
Dr Neeraj Sanan
Marketer’s Output & Metrics

Contextual
B. Share of A. Share of
Scale
Market Mind
Challenge 2 →

© Prof. N.Sanan, 2021


C. Share of Media
Defined
D. Financials
Scale

Structured Unstructured
Data Data
Challenge 1 →
D. Financials Margins and Profits
Margins (the Line of ATL/BTL)

• Margins are key to pricing, marketing spending choices, & customer profitability
margin = price – cost as realized by brand
not what is paid by consumer

• But brand sells at multiple prices, in different channels and can have different costs. So…
Margins

• Unit Margin (Rs)


= Selling Price per Unit(Rs) – Cost per Unit(Rs)

𝑈𝑛𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 (𝑅𝑠) 𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒(𝑅𝑠)−𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡(𝑅𝑠)


• Margin (%) = =
𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 (𝑅𝑠) 𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠 𝑅𝑒𝑣𝑒𝑛𝑢𝑒(𝑅𝑠)

• “Unit” depends on business


• e.g., “sticks”, “packs”, “cartons” for cigarettes
“account”, “customer”, “loan”, for bank
• You must know unit margins by heart
Margin: Construction

• Margin(%) for company selling multiple products


• Do not take unweighted average of margins!
• Calculate total sales & total costs. For example
Total Sales = 20 jars of plum jam at $6 + 10 jars of orange jam at $8 = $200 total sales
Total Costs = 20 jars of plum at $4.50 + 10 jars of orange at $5.50 = $145 total costs
Margin ($) = Sales-Costs so Total Margin ($) = $55

Margin (%): Plum=$1.50/$6.00=25%, Orange=$2.50/$8.00=31.25%

25%+31.25%
but company margin ≠ or 28.125%. (simple average)
2
𝑇𝑜𝑡𝑎𝑙 𝑀𝑎𝑟𝑔𝑖𝑛($55)
Instead Margin (%) = =27.5%. (weighted by value)
𝑇𝑜𝑡𝑎𝑙 𝑆𝑎𝑙𝑒𝑠($200)
Net Profit: Construction
Contribution Margin

Operating Margin

• Overhead: Costs than cannot be directly tied to any specific product or division
(e.g. headquarters staff)
• Allocation among divisions/ regions/ products can often be more art than
science
Margin: What is included?
• Various costs may or may not be included
• “Contribution margin” – deducts only variable costs
• “Operating margin” – deducts cost of operations and variable costs
• “Margin before marketing”
• Are rebates, customer discounts, broker’s fees & commissions costs or
deductions from selling price?
Margin % play: (Rs 30 off ) vs (goods worth Rs 30 free)

• When Rebate classed as gift (worth Rs 30 free with Rs 100 purchase):


𝑈𝑛𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 (30)
Impact on Margin (%) = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 (100) = 30%

• When Rebate classed as price cut (Rs 30 price off) :


𝑈𝑛𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 (Rs 30)
Impact on Margin (%) = 𝑆𝑒𝑙𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡(Rs 100 −Rs 30) = 37.5%
Margin % play: Price increase

• Margin (%) changes with rebate classification


Unit Margin (Rs) = Selling Price – Cost of Goods Sold & Rebate
= 100 – 50 - 20 = 30

• Price Increase of 1% = 101. 2% = 102


• Profit : 30 -> 31 30 -> 32
• 3.33% 6.66%
Averaging Margins:

• Margins
• Vary by channel
• Vary by SKU
• Vary by territory
• Average Margin in Rs: Weighted by volume
= % of Unit Sales through Channel 1 * Margin in Channel 1 (Rs) + % of Unit Sales through
Channel 2 * Margin in Channel 2 (Rs) + … (continue to last channel)
• Average Margin %: Weighted by Value
= % of Dollar Sales through Channel 1 * Margin in Channel 1 (%) +% of Dollar Sales
through Channel 2 * Margin in Channel 2 (%) +... (continue to last channel)
Margin vs Markup

• Some industries (particularly retail) calculate margins as % of cost, not selling prices
• Be familiar with your industry practice
• We recommend using margin for % of selling price and markup as % of cost
𝑃𝑟𝑖𝑐𝑒 $ −𝐶𝑜𝑠𝑡($)
• Markup (%) = 𝐶𝑜𝑠𝑡($)
Margin vs Markup (channel language)

Unit Contribution 0.5 1.0 1.0 2.0 4.5


Markup % 100% 100% 50% 66%
Margin % (externl) 10% 20% 20% 40% 90%
Margin (internal) 0.50/1.00 50%
Variable and Fixed Costs

• Variable costs increase directly & predictably with unit sales volume
• e.g., each product made uses Rs 10 of raw materials
• Fixed costs are not affected by short term sales changes
• e.g., we must pay Rs100k rent on factory even if it doesn’t produce anything
• Total Cost = Fixed Costs + Total Variable Costs
• Total Variable Cost ($) = Unit Volume (#) * Variable Cost per Unit ($)
Total Cost: Construction

• Total Cost ($) = Variable Cost per Unit (Rs) * Unit Volume (#). + Fixed Costs(Rs)
• Equation of the form Y = mX + b, where Y = Total Cost, m is variable cost per unit, X
is unit volume and b the fixed cost
Total Cost per Unit

• Total Cost per Unit


𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 ($)
= 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 (#)

• As quantity rises total cost per


unit declines as fixed costs are
spread across more units
• At very high volume total
cost per unit approaches
variable cost per unit
• Fixed cost per unit→0
Fixed & Variable Marketing Costs

Examples of Fixed Costs (ATL) Examples of Variable Costs (BTL)


- Salesforce salaries - Salesforce commissions
- Advertising - Bonuses contingent on sales goals
- Marketing staff - Performance allowances to trade
- Point-of-purchase promotion - Coupons & rebates
materials - Bill-backs for local campaigns
- Cooperative advertising allowances conducted by retailers
- Agency Retainer fees
Breaking Even

• Break-even: sales needed to cover


total cost
• Profit at break-even is zero.
• Break-Even Volume (#) =
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡𝑠 ($)
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 ($)

• Post break even, margin = profit


Marketing: an expense or an investment?

• Accountants tend to consider marketing as an expense


• They focus then on whether it is a necessary expense
• Can it be cut?
• Financial value = incremental sales
• However, marketers typically believe marketing activities generate lasting results
• Incremental customer life time value
• If true much marketing may be an investment
• But when?
Construction
• If we estimate a baseline firm financial value
without marketing (Y0) & have the actual firm
financial value now with marketing (Y2) we can
calculate financial value attributable to
marketing, Y2- Y0
• Incremental value attributable to marketing can
be “total” (Y2-Y0)
(Y2−Y0) −X2
• MROI (%) =
X2
• Or value from a specific initiative (Y2-Y1)
costing X2-X1 Optimize or saturate?
• Return on Incremental Marketing Investment:
(Y −Y ) −(X2−X1)
ROIMI (%) = 2 1
(X2−X1)
Marketing Return on Investment (MROI or ROMI)

• Marketing Return on Investment: MROI (%)


𝐼𝑛𝑐𝑟𝑒𝑚𝑒𝑛𝑡𝑎𝑙 𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 𝐶𝑟𝑒𝑎𝑡𝑒𝑑 𝑏𝑦 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 $ −
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 ($)
= 𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 ($)

• Somewhat different than other ‘return-on-investment’ measures


• Marketing investment is often ‘risked’ rather than ‘tied’ up in plants & inventories
MROI using media (usually for free/ earned media)
• Media Exposure Return on Marketing Investment: MEROMI (%)
𝐸𝑠𝑡𝑖𝑚𝑎𝑡𝑒𝑑 𝑉𝑎𝑙𝑢𝑒 𝑜𝑓 𝑀𝑒𝑑𝑖𝑎 𝐸𝑥𝑝𝑜𝑠𝑢𝑟𝑒𝑠 𝐴𝑐ℎ𝑖𝑒𝑣𝑒𝑑 $ −
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐶𝑎𝑚𝑝𝑎𝑖𝑔𝑛, 𝑆𝑝𝑜𝑛𝑠𝑜𝑟ℎ𝑠𝑖𝑝 𝑜𝑟 𝑃𝑟𝑜𝑚𝑜𝑡𝑖𝑜𝑛 ($)
=𝐶𝑜𝑠𝑡 𝑜𝑓 𝑀𝑎𝑟𝑘𝑒𝑡𝑖𝑛𝑔 𝐶𝑎𝑚𝑝𝑎𝑖𝑔𝑛, 𝑆𝑝𝑜𝑛𝑠𝑜𝑟ℎ𝑠𝑖𝑝 𝑜𝑟 𝑃𝑟𝑜𝑚𝑜𝑡𝑖𝑜𝑛 ($)

• For clarification, we recommend all expressions of MROI should be


expressed as following:
• Our analysis measured a (total, incremental or marginal) MROI of
(scope of spending) using (valuation method) over time period.
Marketing: Expense or Investment
• CEO, Accounts tend to consider marketing as an expense
• When driving P&L
• They focus then on whether it is a necessary expense
• Can it be cut?
• Investors, marketers believe marketing activities generate lasting results
• When driving valuation
• Hence, cash burn is ok
• But when is marketing a good investment?
Reliance Baking Soda: Case for Feb 17th

1. Identify an Indian brand/ business in the same scenario as Reliance Baking Soda?
2. What are the strengths and weaknesses of the RBS brand ?
3. What kind of ROI is the company getting on its consumer promotions & trade promotions
4. Compare the merits of a pull vs push strategy in a low-involvement product in a mature
market.
5. What is your recommendation for Regante to achieve her 2008 target.

Groups to submit on or before February 16th


For 18th February Case – Hubble

1. What is the difference between D2C and Digital Businesses – explain using a schematic diagram
of supply-chain?
2. Compare and contrast the estimated pricing at each stage of supply chain
3. Contrast J&J and Hubble in terms of their context, business objective and metrics?
4. What is the role of offline and online advertising in acquiring Hubble customers? Evaluate the
media monies split decisions facing Hubble regarding online versus office media allocation, with
specific focus on TV vs online , including retargeting
5. If you are the J&J marketing team, how will you react to the challenge of Hubble?
• Groups to submit or before February 16th
The Digital Dis-intermediation
Dr Neeraj Sanan

© Dr Neeraj Sanan
Digital Davids are taking on the traditional Goliaths
• Unilever

• Parachute

• Zee TV

• Sleepwell

• Forever21

• The Times of India

• Dabur Vatika

© Dr Neeraj Sanan
Traditional Goliaths are gobbling some davids
What’s Disrupted ?

© Dr Neeraj Sanan
How does the value-chain get disrupted

Manufacturer C&F Stockist Retailer Consumer

Two different realities to be managed together (omnichannel) or separate (D2C)

Marketplace
Manufacturer or Consumer
website

© Dr Neeraj Sanan
What’s happened

• Supply-chain (Distribution /sales) is disrupted


• HLL, Dabur, The Times of India, ITC, Marico are great brand creators, but greater
distributors
• SaaS products who allow you to manage ALL marketplaces with ONE CENTRAL
WAREHOUSE and CENTRAL LOGISTICS. You already have a great beginning
• ‘Media’ part of Marketing is re-calibrated
• But only for the medium
• Digital has replaced print, OTT is supplementing TV

traditional sales & marketing -> D2C digital product (s) & marketing

© Dr Neeraj Sanan
Case: TranSwap

• Started in 2017 (late entrant)


• Opportunity : banks charge (1 to 5% Fx spread on currency transfer) + administrative fee +
Commission
• TranSwap Pricing: 0.35% to 1.7%

• Fast, Secure, Cheap …. Made real by Technology – an integrated B2B2C business where
same software allows itself to be used as PaaS for businesses and allows consumer
transactions.

© Dr Neeraj Sanan
Case: LenDenClub

• Online lending between borrowers and lenders without the mediation of any financial
institution.
• Faircent, lendbox, i2ifunding, finzy etc.
• Started in 2014, by 2020 had 680,000 lenders and 89,000 borrowers
• Personal loans for 3 to 24 months
• Amount: Rs 25,000 to Rs 500,000

© Dr Neeraj Sanan
The old way: Advertising & Promotion

Product Promoting Point of sale Brand Building


Advertisements (P-O-S) Advertisements

Awareness Attitudes Trials Usage Repeats

Front end Backend


(pre-trial) (post-trial)

Free/ test samples X% off, y% extra, 1+1 …

© Dr Neeraj Sanan
Omnichannel World: … everything everywhere all at once

Evaluate
Pre-purchase
Consider
Advocate Buy
Others
Post-purchase Buy How about
you?
Aware Inform
Experience
Trigger

- “Circular path” with feedback loops; “post-purchase” “pre-purchase”


- Social media, review sites, blogs, chat rooms
- Marketing has role influencing consumers; but not marching them along linear
funnel with purchase “end point”; more touchpoints
- Consumers expect to derive value from the journey itself…
9
© Dr Neeraj Sanan
D2C allows simultaneous multi-brand launch

Parallel approach of omnichannel and D2C e.g., Pattern brands launched online with two brands –
EQUAL PARTS and OPEN SPACES, challenging each other while fighting competition
This is unlike traditional business

© Dr Neeraj Sanan
Hubble: The Dis-Intermediation
SCALING A D2C ‘BUSINESS’

© Dr Neeraj Sanan
Let us start by rating the case as per NPS:

How likely are you to recommend this case to your friends ?

© Dr Neeraj Sanan
J&J vs Hubble

Direct-to-customer service for contact lenses Operates through an e-commerce site

Social Media first brand- effortless purchase through


Offers monthly subscription packages for dailies
Facebook

Optometrists
Office

Manufacturer Grocery Stores Optometrist-


Purchase on Monthly
of lenses- St. Sales Provided only
website subscriptions
Shine Optical Warehouse fitting kits
Clubs

E-commerce

And then came HUBBLE, a D2C brand

© Dr Neeraj Sanan
Market Size & Hubble
Lenses Daily Market Spherical Total
Market Use Size
Number
• US 40 Mn. 41% 16.4 Mn. 59% 9,676,000
• Elsewhere 85 Mn. 70% 59.5 M. 59% 35,105,000
Value TAM SOM
• US $ 4 Bn. 41% $ 1.64 Bn. 59% $ 1 Bn
• Elsewhere $ 5 Bn. 70% $ 3.5 Bn. 59% $ 2.1 Bn.

SAM
Hubble: $ 20,000,000 ~ 2% Market Share of 24% of US market ~ 0.5 %
$ 20,000,000/ (33 x 8) ~ 75,758 of a potential 9.7 Mn. Users in US

© Dr Neeraj Sanan
Market
Value chain Share

360 430 708


J&J Distributor Optometrist User

27%
566.32

300 + 24
Hubble User 2% of 24%

What is the USP?

How sustainable is the competitive advantage ?

© Dr Neeraj Sanan
CLV, LTV & CAC

• 100% buy free, 90% order, Average order 8 months, 4% churn, Free box: $13, GM: 40%
• Monthly Margin per customer = $33 x 40% x ( 8/12) = $ 8.8
• Lifetime of those who buy (LT) = 1/ churn rate = 1 month/0.04 = 25 months
• Each customer LTV = ( - 13 ) + ( 8.8 x 25) = $ 207
• CLV = LTV - CAC (customer lifetime value, lifetime value, Customer acquisition cost)
• CLV = S 207-$ 100 = $ 107
• LTV/ CAC = 207/100 ~ 2.07 ……a good industry benchmark is >3

© Dr Neeraj Sanan
The A-B testing

Before During Increase


Test (A) 0.036 0.054 0.018 50.0%
Control (B) 0.032 0.044 0.012 37.5%
halo
0.004 0.01 0.006 12.5%
22.7%

• halo effect: Brand building beyond the sales lift, core TG (employees,
optometrists, current users etc.)
• decay rate: prolongation of advertising beyond the period
• There should be trend analysis too

© Dr Neeraj Sanan
Complete analysis includes “Pre-during-Post” trendline

When is brand becoming strong When there is no difference in equity

© Dr Neeraj Sanan
A few takeaways:

1. Attribution modelling & measurement is specialized


• Consumers have multiple touchpoints
• Duration between awareness and purchase may be long
• Different media platforms complement each other
• Use average CACs and not use CAC per channel
2. A/B testing is a useful measurement technique, but it requires careful design and analysis
3. Very important to understand and track CAC and LTV over time

© Dr Neeraj Sanan
A few takeaways:

4. Companies prefer online because of its ‘perceived measurability’


• If FB leads, google, Amazon is getting you customer; it is their customer, you really are
a vendor
• (practically) TV is the best medium for brand building
5. Many D2C companies are relying heavily on digital marketing for lead generation.
• Like any other medium, here too law of diminishing returns applies i.e., media becomes
less effective over time, changing CAC & LTV

© Dr Neeraj Sanan
What happened thereafter…
• Hubble continued its international expansion into Europe, starting with UK & Spain
• Additional $40M funding raised as Series-A extension, with Colgate-Palmolive as lead
investor
• St.Shine increased its production lines to satisfy US demand

• A UK based company – Waldo – entered the fray, same concept – similar price and 50,000
customers of which 6000 are from US.

© Dr Neeraj Sanan
For Feb 25th: Case – Super Bowl

1. What storytelling devices are available to super bowl advertisers for their brand stories?
Are these same or more in case of IPL?
2. Which plots/ archetypal characters do you observe? How well are these likely to work? Are
there any examples from India
3. Which ads do you predict will generate the most consumer buzz? Why?
4. Which ads do you predict will sell the most product for their advertiser? Why? Which will
sell the least? Why?
5. Which advertisers are getting their money’s worth from their Super Bowl ad? What metrics
would you want to see to make your decision? Will the same logic hold for IPL?

Groups to submit on or before Feb 23rd, EOD

© Dr Neeraj Sanan

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