17: Digital Marketing
Learning Aim B: Investigate the effectiveness of existing digital marketing
campaigns
B.P3: Discuss the digital strategies that a selected business uses to meet two different
objectives
How Boohoo achieve brand awareness -
Boohoo currently has 7.1 million followers on Instagram. That figure alone is evidence as to how boohoo have really
connected with their audience and how millions of people are a fan of the brand. The company uploads regularly ,
collabs with popular influencers such as Kardashian - Jenner family. In addition to this, Boohoo is very good at
keeping up with current trends with their audience. A prime example of this is that the on-going trend of plus size
inclusivity. Boohoo is one of the few companies that have a large percentage of its assortment dedicated to plus size
consumers, thus setting the company apart from their rivals more and becoming a better choice for more
consumers.
How Boohoo achieve customer retention –
Email marketing that boohoo uses in order to improve customer retention. Most emails consist of the company’s
latest products and discounts. However, in addition to this the company also uses a few other unique features in
their emails.
1. Emails are sent to customers if they have not made a purchase after a while.
2. The company does is use customers name in the emails to make them more personalised, examples include
the following:
‘ Ready for a workout Lauren? ‘
‘ Lauren up to 60% off Friday essentials ‘
‘ Hey, Lauren we miss you! ’
3. If customers have left items in their basket and not made a purchase, they will receive an email with a
subject similar to ‘ Hi, Lauren, can we help?’. This is so that the company can find out why the purchase was
not complete. For example, it could give the company a chance to resolve any issues or find out if there was
a specific reason as to why the consumer left the items in their basket. This feature can also simply act as a
reminder to consumers who still want to buy the product but just may have forgotten about them.
All these features undoubtedly have boosted boohoo sales, the small attention to details makes the consumer feel
as if boohoo genuinely wants to give them the best experience and hear their concerns if they have any.
B.P4: Outline different compensation models used in digital marketing
A compensation model is a pricing and business model used for different types of digital marketing. It is used to
determine how much revenue is set from various sources and how that revenue is generated. There are many types
of compensation models, some examples are:
Model Name Features
CPV – Cost Per View This is when you pay to have video ads played and pay each time a
consumer either clicks or watches the video ad
CPC – Cost Per Click This is when you pay each time someone has clicked on your ad in a
website browser or in an app
CPE – Cost Per Engagement This when you only pay each time a user engages in a post-install
event. A post install event is any action that has taken place after the
, app has been downloaded/installed. Examples include launching the
app, creating an account, watching an ad inside the app, making an in
app purchase and more
CPM – Cost Per Mile (mile = thousand) This is when advertisers pay for every 1,000 clicks or views of their ad,
this is vey useful when your goal is to increase brand/product/service
awareness
Fixed Cost This is a guaranteed fixed budget for a project, regardless of the time or
expense
B.P5: Explain the benefits of, and concerns about, digital marketing from the
perspective of both the customer and the marketer
As a marketer, understanding the digital environment is very important for the businesses success – simply because
people cannot purchase products or services if they aren’t aware they exist. From this perspective, here are the
advantages and disadvantages of digital marketing:
Advantages:
- Global reaching, posts are able to reach people all over the world
- Lower costs that traditional marketing methods
- Measurable results due to web analytics and other online metric tools. This then allows the business to asses
effectiveness of campaigns, posts and more
- Conversion rates, having a website increases chance a of a purchase as oppose to making a phone call or
going to a shop thus improving the businesses revenue
Disadvantages:
- Need staff with right skills and knowledge to manage social media and other duties
- Time consuming e.g. posting the ads online are fairly easy but creating the marketing content itself can be
time consuming and costly
- Complaints and negative reviews are visible on business websites and social media platforms
- Tone deaf messaging, marketers need to plan and pause ads when a world event happens e.g. pandemic etc
so that they don’t appear tone deaf
- High competition, lots of companies have invested and focused more towards digital marketing
- Security and privacy issues, if something goes wrong with a consumers private information, the company
would be in a lot of legal trouble
As a consumer, digital marketing has allowed us to easily find things we want and things we didn’t know we needed
before. Whilst consumers are mostly benefited by digital marketing, they don’t necessarily understand all the details
of how digital marketing works, which has led to concerns.
Advantages:
- Keeps consumers up to date with latest trends and changes or upcoming projects in their favourite
businesses
- Provides 24/7 access and offers quick and convenient service, a lot easier and faster to order products online
as oppose to driving to the shop and etc
- Personalised experience, based on demographics and shopping behaviours, people see products that align
with their interests
- Provides your audience with options, internet marketing allows customers to see all available features and
information of a product easily
- Helps build better relationships, people are able to follow social media profiles, or receive
emails/newsletters
- Allows for comparison shopping
Concerns
Learning Aim B: Investigate the effectiveness of existing digital marketing
campaigns
B.P3: Discuss the digital strategies that a selected business uses to meet two different
objectives
How Boohoo achieve brand awareness -
Boohoo currently has 7.1 million followers on Instagram. That figure alone is evidence as to how boohoo have really
connected with their audience and how millions of people are a fan of the brand. The company uploads regularly ,
collabs with popular influencers such as Kardashian - Jenner family. In addition to this, Boohoo is very good at
keeping up with current trends with their audience. A prime example of this is that the on-going trend of plus size
inclusivity. Boohoo is one of the few companies that have a large percentage of its assortment dedicated to plus size
consumers, thus setting the company apart from their rivals more and becoming a better choice for more
consumers.
How Boohoo achieve customer retention –
Email marketing that boohoo uses in order to improve customer retention. Most emails consist of the company’s
latest products and discounts. However, in addition to this the company also uses a few other unique features in
their emails.
1. Emails are sent to customers if they have not made a purchase after a while.
2. The company does is use customers name in the emails to make them more personalised, examples include
the following:
‘ Ready for a workout Lauren? ‘
‘ Lauren up to 60% off Friday essentials ‘
‘ Hey, Lauren we miss you! ’
3. If customers have left items in their basket and not made a purchase, they will receive an email with a
subject similar to ‘ Hi, Lauren, can we help?’. This is so that the company can find out why the purchase was
not complete. For example, it could give the company a chance to resolve any issues or find out if there was
a specific reason as to why the consumer left the items in their basket. This feature can also simply act as a
reminder to consumers who still want to buy the product but just may have forgotten about them.
All these features undoubtedly have boosted boohoo sales, the small attention to details makes the consumer feel
as if boohoo genuinely wants to give them the best experience and hear their concerns if they have any.
B.P4: Outline different compensation models used in digital marketing
A compensation model is a pricing and business model used for different types of digital marketing. It is used to
determine how much revenue is set from various sources and how that revenue is generated. There are many types
of compensation models, some examples are:
Model Name Features
CPV – Cost Per View This is when you pay to have video ads played and pay each time a
consumer either clicks or watches the video ad
CPC – Cost Per Click This is when you pay each time someone has clicked on your ad in a
website browser or in an app
CPE – Cost Per Engagement This when you only pay each time a user engages in a post-install
event. A post install event is any action that has taken place after the
, app has been downloaded/installed. Examples include launching the
app, creating an account, watching an ad inside the app, making an in
app purchase and more
CPM – Cost Per Mile (mile = thousand) This is when advertisers pay for every 1,000 clicks or views of their ad,
this is vey useful when your goal is to increase brand/product/service
awareness
Fixed Cost This is a guaranteed fixed budget for a project, regardless of the time or
expense
B.P5: Explain the benefits of, and concerns about, digital marketing from the
perspective of both the customer and the marketer
As a marketer, understanding the digital environment is very important for the businesses success – simply because
people cannot purchase products or services if they aren’t aware they exist. From this perspective, here are the
advantages and disadvantages of digital marketing:
Advantages:
- Global reaching, posts are able to reach people all over the world
- Lower costs that traditional marketing methods
- Measurable results due to web analytics and other online metric tools. This then allows the business to asses
effectiveness of campaigns, posts and more
- Conversion rates, having a website increases chance a of a purchase as oppose to making a phone call or
going to a shop thus improving the businesses revenue
Disadvantages:
- Need staff with right skills and knowledge to manage social media and other duties
- Time consuming e.g. posting the ads online are fairly easy but creating the marketing content itself can be
time consuming and costly
- Complaints and negative reviews are visible on business websites and social media platforms
- Tone deaf messaging, marketers need to plan and pause ads when a world event happens e.g. pandemic etc
so that they don’t appear tone deaf
- High competition, lots of companies have invested and focused more towards digital marketing
- Security and privacy issues, if something goes wrong with a consumers private information, the company
would be in a lot of legal trouble
As a consumer, digital marketing has allowed us to easily find things we want and things we didn’t know we needed
before. Whilst consumers are mostly benefited by digital marketing, they don’t necessarily understand all the details
of how digital marketing works, which has led to concerns.
Advantages:
- Keeps consumers up to date with latest trends and changes or upcoming projects in their favourite
businesses
- Provides 24/7 access and offers quick and convenient service, a lot easier and faster to order products online
as oppose to driving to the shop and etc
- Personalised experience, based on demographics and shopping behaviours, people see products that align
with their interests
- Provides your audience with options, internet marketing allows customers to see all available features and
information of a product easily
- Helps build better relationships, people are able to follow social media profiles, or receive
emails/newsletters
- Allows for comparison shopping
Concerns
