Experimentation and digital marketing

Experimentation and Digital Marketing

  • Overview of Class Focus
    • Experimentation
    • Setting up experiments
    • Example experiments to run
    • Defining hypotheses
    • The Marketing Funnel
    • Digital media trends
    • Crafting digital-IRL (in real life) strategies
    • Using digital media to drive customer purchases
    • Designing your funnel as practice

The Business Experiment

  • Definition: A test designed to help answer questions and validate ideas or hypotheses.
  • Importance for New Ventures:
    • Validate effectiveness of existing strategies.
    • Help decide between options such as:
    • Product/design features
    • Descriptions
    • Pricing
    • Promotional programs
    • Testing new concepts or strategies
    • Minimizing waste on ineffective efforts
    • Identifying and stopping costly mistakes
    • Enhancing decision-making processes

Core Components of the Business Experiment

  • Hypothesis: Proposed explanation based on limited evidence; a starting point for further investigation
  • Observation: Noticing something in the business without interpretation

Observations and Experiments

  • Examples of Observations for Hypotheses:
    • Current strategies
    • Product details: features, pricing, etc.
    • Customer interactions and engagement
    • Team dynamics
  • Experiment Design Principles:
    • Only test your hypothesis; control other variables.
    • Follow the scientific method:
    1. Identify a problem
    2. Research the problem
    3. Develop a hypothesis
    4. Design the experiment
    5. Collect and analyze results
    6. Draw a conclusion

Key Performance Indicators (KPIs)

  • Definition: Measurable values that demonstrate how effectively an organization is achieving key business objectives
  • Types of KPIs:
    • Positive reviews and ratings
    • Sales metrics (by week/location)
    • Event attendance
    • Efficiency metrics (expenses, delivery time)
    • Social and environmental impact
    • Employee satisfaction
  • Drawing Conclusions from KPIs: What did you learn? Adjustments to the hypothesis? Next questions?

Examples of Business Experiments

  • Experiments:
    • A/B Testing (comparing two variations)
    • Example: 50% visitors see Variation A (23% conversion) vs. Variation B (11% conversion)
    • Wizard of Oz Experiment: Customers believe they're interacting with automation which is actually manual.

Digital Marketing Trends and Funnel

  • Reasons for Internet Usage:
    • Keeping in touch, researching, finding inspiration, etc.
  • Benefits of Digital Marketing:
    • Targets prospects likely to purchase
    • More cost-effective than outbound marketing
    • Measurable impact on ROI
    • Useful in all stages of the marketing funnel
    • Agile and flexible

Types of Digital Marketing

  • Examples:
    • Social Media Marketing
    • SEO
    • Content Marketing (videos, infographics)
    • PPC
    • Email Marketing
    • Blogs and Online PR

The Marketing Funnel

  • Purpose: Transform potential customers into long-term, happy clients
  • Stages Included in the Funnel:
    • Awareness
    • Generating leads
    • Customer retention and satisfaction
  • KPIs for Funnel Performance:
    • Traffic, ad views, conversions, customer lifetime value, etc.

Creating an Inbound Marketing Mix

  • Funnel Tiers:
    • TOFU (Top of Funnel): Awareness strategies (articles, videos, ads)
    • MOFU (Middle of Funnel): Interest building (FAQs, webinars, targeted ads)
    • BOFU (Bottom of Funnel): Action and loyalty (surveys, referral programs)

Inclusive Marketing

  • Strategies:
    • Accessible content for various abilities
    • Use of alt text and captions
    • Representation in imagery
    • Avoiding bias