Digital marketing is related to all marketing efforts which the businesses leverage all the digital channels like e-mail, social media, e-mail and the websites to contact with prospective and current customers (Leeflang et al. 2014). Boo.com went successfully over a decade ago; however, Boo.com faced severe and most costly digital business failure in the European history. Boo.com wanted to become a first-to-market global brand selling designer clothes and sportswear to the customers. Boo.com started its journey in the year 1999, it spent £125 million in the next six months in digital marketing, and the organisation refused to accept its wrong move in digital marketing until May 2000.
As a Digital Marketing Consultant, my role is to create a report on the strategies of Boo.com what they could have made use for digital marketing to prevent the failure. This paper focuses on explaining the foundation a principle of digital marketing and it makes distinguishes between traditional and digital marketing. This paper identifies the relevant digital marketing tactics to make an integrated and effective digital marketing approach across different digital domains.
1. Discussing the difference between traditional and digital marketing
The transition from traditional marketing to digital marketing is a bigger paradigm shift for the organisations. Digital marketing is not just the channel of marketing as digital marketing has a bunch of channels for sharing the advertisement and promotions for the organisations (Srinivasan et al. 2016). Digital marketing is associated with social media, internet marketing and e-mail marketing, whereas, traditional marketing is related to the print media, out-of-home advertising, radio and television.
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Digital marketing |
Traditional marketing |
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1. Open system advertisement 2. Transparent marketing 3. Two-way conversation 4. One-to-one marketing 5. Brand along with user-generated content 6. Authentic content 7. Mostly free platform 8. The key metric is engagement 9. The real-time advertisement is possible 10. Active involvement is possible |
1. Close system advertisement 2. Opaque marketing 3. One-way conversation 4. Mass marketing 5. Professional content 6. Polished content 7. Generally paid media platform 8. The key metric is reach and frequency 9. Pre-produced or scheduled advertisement 10. Passive involvement |
Apart from the general difference, traditional marketing and digital marketing differ in the advertisement; as digital marketing is not just the advertisement, it is advertainment. Digital marketing is a tool to make awareness and it helps to develop attitudes about the brand so that it can promote a purchase. In addition, traditional marketing cannot engage the customers directly and traditional marketing cannot also measure the success of the promotion. Digital marketing can easily inspire potential customers to engage, download and read the comments and images.
Digital marketing allures the customers through images, content, videos and short story shared through the digital marketing tools. Digital marketing can also measure the consideration of success as it can increase total page view and it can measure the longer visit duration and lower bounce rate(Xu et al. 2016, p.1563). There are social media analytic tools which help the companies to check the success of the promotions on various social media platforms.
Traditional marketing lacks in word-of-mouth publicity as word-of-mouth is always a big motivator for the purchase behaviour of the customers. Before the digital marketing; the voice of the customers was quiet; however, the celebrities tried to impact strongly on the customers through hoardings and television (Blakeman 2015). On the other hand, digital marketing has increased the peer recommendations as the customers share their reviews on a digital platform which motivate the customers to purchase the products on time. Digital reviews’ impact goes beyond the recommendations and the potential customers check the images and comments shared by reviewers. In addition, the reach of traditional marketing is much lesser than the digital marketing as digital marketing has the capability to reach large numbers of customers (Cant and Wild 2016).
For traditional media, the organisations cannot measure the ROI, whereas, Return on Investment (ROI) in digital media for promotion is higher as the peer recommendation is motivating. Digital marketing platform allows the organisations to optimise everything using digital networks, from content to channels to offers. Most importantly, traditional marketing cost is much more than digital marketing as the advertisements always under a plan.
a. Explaining why it would be important for Boo.com to invest in digital marketing
Boo.com wanted to invest in digital marketing as it was an attempt to be an active part of exceptionally pervasive along with lucrative online marketplace. Digital marketing has the capability of quickly developing strength in today’s business world and it seems that digital marketing will surpass traditional marketing. By using a minimum cost, digital marketing could help Boo.com to reach large numbers of customers in the European market through internet marketing and social media marketing. Digital marketing helps the organisation to reach a wide range of customers across different nations (Stephen 2016, p.18).
The world is quickly moving and the customers and people consume digital content quickly rather than the traditional media tool.Boo.com wanted to use the digital media platform as an asset to perform sales along with marketing processes which were previously only accessible for the large companies. Since the beginning, Boo.com wanted to engage multiple customers in Europe using different tools. As for clothing based e-commerce; Boo.com wanted to rank higher than other styles of communications and marketing. Boo.com had invested £125 million for digital marketing as they thought that it would help the organisation to generate better revenues. Digital marketing is very important for the business as it facilitates interaction with the targeted audiences.
As opined by Chaffey and Ellis (2012), facilitating the customers with legitimate engagement can provide better profit to the organisation. Boo.com wanted immediate success and profit from the market through the online platform as it helps to build the brand reputation as this branding will be helpful to enlighten the customers. Branding in social media and in digital media platform would help Boo.com to become web sensation as it additionally would provide market research and better business development.
2. Demonstrating and discussing how Boo.com could have utilised website optimisation techniques to improve the performance of their website
When an organisation starts its business, the organisation always wants to reach large numbers of customers through the website. According to Tsuei et al. (2018, p.15), the major point to keep in mind while developing the website is that it needs some sacrifices. Boo.com developed the website to reach the customers; however, it did not provide optimal, efficient and fast user experience website to the customers.
Perform an image optimisation:
In a website, images are a crucial factor as images are actually big files which can greatly affect the load time. Therefore, the web developers are now thinking of image optimisation in advance which makes fast the website. Boo.com could have used the technique of image compression where they could flourish the images of the products by compressing them. Today, image optimisation tools are available like JPEGmini which allow the users to compress the images with minimum quality losses. The web developers combine images into CSS sprites in order to reduce the roundtrip.
Switch to another web host:
Boo.com could have chosen other host to influence the website loading time. Boo.com used shared hosting where the website was stored with other websites; therefore, it influenced the performance of the server. However, for something bigger website like Boo.com, shared hosting was not the perfect option as it needed something bigger option to ensure good website speed optimisation. Boo.com could have used virtual private server (VPS) as it has restricted a number of websites. Boo.com would have owned a part of the server end and VPS was a good pick for the e-commerce site like Boo.com at the beginning with average numbers of the website (Croxen-John and Van Tonder 2017).
Get rid of unnecessary code files and plug-ins:
The websites have the code files which are majorly responsible for the functionality of the website. In addition, code files result in more HTTP requests and it leads to worse performance. The plugin is a software element which adds a certain feature to the website and it is pretty common for various website types. The plugin does not accelerate the development process of the website and it negatively affects site performance as well. Therefore, Boo.com needed to ensure that they would not have unnecessary plugins and the website could have made sure the installed plugins must use a minimum of scripts which may send a few queries.
Taking care of 404 errors:
Users of website try to reach the page and the page is deleted; then a Page Not Found or 404 error message appears. However, a few of these errors can influence the average website speed (Dilip and Kumar 2015, p.5). Boo.com had to take care of the 404 error as they could have maintained the 404 error all by themselves, not just by the third-party plugins. Instead, Boo.com could have used website performance optimisation tool which could help the website, not to overload.
Google PageSpeed:
Google Page Speed is a tool designed by Google Inc to help website performance optimisation (Nagy 2013). This tool has components which are mainly built to recognise the faults in the website’s compliance with Google Web Performance and automate the process of adjustment. Boo.com may use Google Page Speed to improve the performance of the website.
3. Critically discuss how Boo.com could have used Search Engine Optimisation (SEO), Social Media (SMM) and Content Marketing to attract, retain and engage with customers
a. Key activities associated with implementing an SEO, SMM and Content Marketing Strategy
Key activities associated with implementing SEO
The main goal of SEO (Search Engine Optimisation) is to create the search engine spiders which do not just find the site; however, it must specifically rank the page relevance so that it must appear at the top of the search engine result (Tiago and Verissimo 2014, p.705).
Target Market Business Analysis
At first, Boo.com could do the target market business analysis and the first step is the website analysis where the analysis is based on Meta sets and visible text. Competitive analysis is related to the examination of the content keywords of the competitive websites which help to determine the effective engine positioning strategy. As stated by Ledford (2016), in present days, the web developers priories the list of a targeted search term for the customer base.
Keyword research and development:
The web developers need to identify some of the targeted lists of keywords and the web developers can use the preliminary list in order to determine the indicative number (Croxen-John and Van Tonder 2017). Boo.com could have prioritised keywords and phrases so that the developers can compete for each keyword of the competitors. Boo.com failed to understand where the organisation was at the first place to accurately assess the future ranking. It is very important to understand the goals and objectives of the SEO.
Content optimisation
The web developers need to create the page titles which assist to establish page theme and direction for the keywords. It is needed to create the Meta-tag to influence the click-through which may not directly use for rankings. The web developers need to integrate the selected keywords and it can also use existing content on designated pages (Baye et al. 2016, p.30).
Google Trend
Google Trend is an online search tool which allows users to observe how often specific keywords, phrases and subjects are queried over a specific period (Xu and Berkely 2014). Google Trend helps to analyse the website traffic after the SEO is conducted.
Key activities associated with implementing SMM
The first step of Social Media Marketing (SMM) is to research and prepare a social media marketing plan. PR team needs to identify social network channels along with the PR team also needs to identify activists target habits. Boo.com did not get the chance of doing social media marketing practices against each of the target group. In addition, social media campaign needs to be undertaken with diligence and research ground along with recommendations of strategy should bring engagement from the users. Boo.com could have monitored all the blogs and they could have provided feedback right to the customers.
It is the right method to post feedback and provide a snapshot of the tracking reports. Blog posts help to measure the volume of the traffic and it helps to measure the influence of social media (Gudivada et al. 2016, p.45). The modern-day organisations enable social media online consumer relations by developing content based marketing and listening to online conversations. The PR team can participate in commenting and generating interest among the customers and support the clients to build the online brand personality (Tuten and Solomon 2017).
Key activities associated with implementing the Content Marketing Strategy
Content marketing strategy is associated with blogging, social media, web pages and press release. Implementing content marketing starts with creating an editorial calendar which would include seasonal events and it is also associated with the client’s industry. Before writing the content, it is really important to get much information about business days, upcoming year plan and company milestone. Boo.com could have lacked in brainstorming as they did not have the team to use the digital channels with creative geniuses. According to Stelzner (2014, p.50), during the brainstorming session, the organisations must think about content marketing campaign and the PR team also provides an informative info-graphic presentation. In the next step,
the PR thinks about the creation of the content as the management has to think whether they want to make the content on the user-generated campaign or just the creative campaign. The final stage of the content marketing is about implementation and promotion (Dilip and Kumar 2015, p.6). Monitoring the campaign and making an adjustment of the content is very important which Boo.com could have not done properly. The organisations have to check whether the traffic from social networking performing well or not and the bounce rate on the page must be reduced.
b. Critically discuss the KPIs and metrics that should be used to manage and monitor an SEO, SMM and content marketing strategy
Customer lifetime value (CLV): It is a prediction of the net-profit attributed with the customer to the entire future relationship. The prediction model of the organisation can be varied with the level of sophistication along with accuracy. According to Baltes (2015, p.111), customer lifetime value can be defined through the monetary value of the customer relationship which is mainly based on the present value for the projected future cash flow. Boo.com might not calculate the payback of the promotions spent in the marketing mix.
Cost-per-lead (CPL): Cost per lead is depicted as an online advertising pricing model which is paid by the advertiser for the explicit sign up from the interested of the consumer. The PR team of the organisation commonly calls this as an online lead generation where the advertisers have to pay for the qualified sign-ups, not just for the numbers of impressions made by the advertisements. CPL promotions enable the organisations to generate maximum numbers of guaranteed returns on the advertising money (Dimitrova et al. 2014, p.96).
Web traffic sources: This metric measure mostly which traffic sources are driving the visitors of the websites and this metric provides help for the comparison of each of the sources. There are mainly three traffic sources which are a referral, direct and search and the website also has the traffic from the campaigns which they pay in social networking sites.
Online conversion rate (OCR): This KPI is the percentage of the users taking the desired action. On the e-commerce site, the conversion rate is the % of visitors buying something from the website (Holliman and Rowley 2014, p.270). During the period of Boo.com, the website could not measure the OCR.
Alexa Analytics: Boo.com could have used Alexa Analytics for using competitive analytics which is more than just the traffic rank (Williamson, Vieira and Williamson 2015). Boo.com could have used this to boost the traffic and revenue will full suite of SEO.
Through pay-per-click strategy, an organisation has to place an advertisement on a website and the organisation has to pay the money to the host website when the users click on the advertisement. At first, the web developers have to use the keywords to show the relevance and the organisation needs to make sure that these advertisements use the keywords. The web developers should have the compelling heading and they have a clear call to action. Next step is to use the key information and they can stand out by being different through using colour and images which attract the users. This advertisement may contain the capital letters. Most importantly, the web developers must link a relevant landing page through this advertisement after the users click on the advertisement (King et al. 2015, p.4820). Boo.com could have used the PPC strategy which would help the organisation to have more traffic on the website.
For Online Display Advertising Campaign, the web developers need to use rich media for alluring the target audience and then, the web developers can incorporate the banner with marketing efforts. The next step is to invest in the most effective advertisement technique and the content writer must write a catchy call-to-action advertisement. Pay-per-click advertising can increase brand awareness and website visibility among competitors (Hochman 2015).
b. Identification of how Boo.com could target its key audience through these channels
Before the thought of running PPC campaign for the first time by Boo.com; the management of Boo.com might have wondered which PPC channel to use. The targeting of PPC options is associated with Twitter, Facebook and Google AdWords. First, the PR team must bring out the PPC prospect using social, search, display and video. Targeting audiences for the PPC will help to generate revenue for the company. Boo.com could have targeted by using specific age rage, level of education of the users and gender or the income level of the users. Boo.com could have used display or social PPC channel to target or the exclude at the scale.
The next step is to use strong keyword intent to capture the people who are looking for search products and PR team of Boo.com must have used keyword match types through Bring Ads and Google Ads to control the performance. Finally, Boo.com could have segregated the target audiences by the geographic granularity to target just certain areas. In addition, Boo.com could have target people’s interest like website browsing, action taken and the topic of the site through Facebook and AdWords.
c. Explanation of any budgetary implications or dependencies
Marketing budget through digital marketing was large for Boo.com as more money was spent on digital. Boo.com launched in 18 countries in the year 1999 and they spent £125 million including £500,000 a month on just product photography and they also spent for the fashion magazine, funding for offices in the five countries. For establishing the PR and marketing, Boo.com spent almost £22.4 million. As a start-up company, Boo.com spent more on marketing as a percentage of the total revenue. Boo.com could have spent less on digital marketing as it was just a new in the market. In the mature market like clothing e-commerce; Boo.com could have slowed their marketing spending as better results measurement.
d. An overview of the relevant laws and guidelines
For the international brands, the UK is the key strategic market to establish a presence and take the market share. Digital advertising in the UK is regulated by a combination of legislative rules and self-regulatory rules. In the UK, Data Protection Act 2018 and EU’s General Data Protection Regulation and The Privacy and Electronic Communications Regulations 2011 are some of the laws which have to be followed by the UK based organisations. In the UK, there is a CAP Code for non-broadcasting advertisement, Sales Promotions and Direct Marketing.
Two of the most important laws are Consumer Protection from Unfair Trading Regulations of 2008 and another one is Privacy and Electronic Communications Regulations 2011 (Kannan 2017, p.23). In the UK, Advertising Standards Authority (ASA) enforces the CAP Code and the organisations provide relevant advertisement which should explore relevant advertising which should explore obligations under EU Framework for Online Behavioural Advertising.
5. Incorporating Email marketing into its digital marketing strategy to attract and retain the customers
According to Sahni et al. (2018), e-mail marketing is the process of sending commercial messages to the people using e-mail and in the broadcast sense, each e-mail is sent to potential customers. Email marketing can be defined as the use of emails for developing and nurturing the relationship with potential customers. At first, the organisation needs to establish the goal and build the email list. The organisation needs to understand what type of campaign the organisation needs to opt for (King et al. 2015, p.4819).
The target audiences for the organisation should be checked and the organisation needs to find out the content. Boo.com failed to gauge the performance of the e-mail marketing and they could have started with driving new sign up for the product. Boo.com could also start the journey of e-mail marketing by generating new leads and targeting more customers for the campaign. Boo.com could use the customers’ emails where they would share the discount pricing and ask the customers to visit their websites. Boo.com did not conduct any special event; however, Boo.com could have sent event invitation as these campaigns would design for increasing awareness for the event.
Boo.com could have started bulk email advertising where they could target the random customers via sending the email. The content of the e-mail must be compelling and the e-mail must contain the discount price along with free or express shipping to attract the customers (Blakeman 2015). Today, the organisations start the e-mail marketing through sending newsletter and ask the customers to subscribe to the website. As stated by Zhang et al. (2017, p.852), a powerful newsletter is the epitome of content marketing as it helps to reach more audiences in an organic way.
Boo.com could also share the marketing offer through email as the marketing offer is considered as the best fit to drive the direct response and the campaign must offer a discount for the special promotions. In addition, Boo.com could send the customised email to the customers giving special discount codes. Today, most of the organisations provide discount code separately to the customers based on their searches and PR team sends birthday wishes and anniversary wishes through e-mails. Through e-mails, the organisations can also share the announcement introducing new product or services.
6. Discussing the ways Boo.com could have made use of ongoing analysis and management of digital marketing methods discussed within this report
At first, Boo.com needs to understand that analysing and studying of the website is important before optimisation. It is really a good practice to develop the task sheet and the web developer must remember that search engines look at the domain. Boo.com could have reviewed the competition’s websites as knowing the strategies help to identify the weak points. It is very important to research keywords which must be very popular and it can help to evaluate the free trials. Boo.com spent large amounts of money for photo-shoots of the products and photo compression helps to compress the image. If Boo.com had known the basics of website optimisation, it would result on low cost and it would provide better ROI.
While using SEO, it is very important to plan the site and optimise the site. Before doing the SEO, the organisation needs to build up the social media network. Boo.com could have understood Google Analytics which would help them to use SEO properly. Master Keyword research helps the organisation to reach large numbers of customers.Proper SEO strategy could have helped Boo.com to increase the traffic and higher brand credibility. People could trust the brand which they see on the internet on a daily basis.
Boo.com might not use Pay-per-click strategy as PPC advertising helps to have large numbers of traffic to the website. People search something on Google and Google starts showing a similar advertisement on some of the websites. Advertisers are charged when the users actually click on the advertisements (Ledford 2015). Boo.com actually did not have the keywords properly and they did not determine the goal properly. PPC strategy is cost effective and it would save Boo.com to spend such a large amount of money.
Email marketing was easy to use for Boo.com as it was not costly and it was easy to start by establishing the goals. Boo.com needed to build the e-mail list and the organisation needs to select the type of campaign along with creating the first campaign. Email marketing could have helped Boo.com by increasing brand awareness.
Conclusion
It has been observed that Boo.com did not have access to most of the digital marketing tools as it started its journey in the year 1999. Digital marketing is about using numerous digital channels and tactics to connect with customers as it is an easy way to convert online users to potential customers. Boo.com spent a large amount of money; however, it could not sustain in the industry. Digital marketing has always been a cost-effective medium to communicate the message of the brand across large numbers of customers. Boo.com could have used content marketing, SEO and Website Optimisation properly to reach large numbers of customers in Western Europe. Right content, right digital marketing tools, right KPIs and metrics should be used to gain success in the competitive industry.
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