Having no previous background in digital marketing, I am amazed with the tons of tools, data, and opportunities that arise on the web. We have received so much information in the past classes that I don’t know whether I am just overwhelmed or there really is a business opportunity to use these new tools of digital analytics and the enormous amount of data generated to create value beyond what is already happening now.
The low hanging fruit has already been addressed by freelancer consultants, niche software companies, and agencies focused on digital. Everything related to search engine optimization, web page and ad design is already happening. But there is a need for specialization, a B2B model that integrates all the tools, processes, and experimentation related to digital marketing and that offers a cohesive service.
Several business lines come to mind. The obvious first is website optimization, improving content and design to generate the desired user behavior. The second one is market research and customer insight generation. Data mining techniques coupled with the data gathering potential of flexile websites (i.e. temporarily modified websites in order to gather the required data) can provide customer insights for much narrower sets of customers. It is also fertile ground to experiment with prospective theory and any ideas that shed some light on client behavior. Other experiments and data gathering features can be designed to do conjoint analysis, calculate price elasticity, and reveal other customer preferences and trade-offs. The third is digital Public Relations, that is, how to manage your image on the web, for example managing the open communication channels (e.g. social media) and the potential disasters that can arise when clients complain. Finally, the fourth business line is product development through open innovation.
In conclusion, on-line presence allows companies to experiment at very low cost, gather a lot of information, and use it to add value. A company that can successfully integrate and offer all these services can pioneer a new industry.
1 comment:
The four type of business models you mentioned are getting saturated, yet with the increasing demand of digital marketing, there is always room for innovation. No doubt, digital marketing strategies and tactics influence the bottom line and in most cases in a positive manner. However the business would like to get the answers of questions like these:
How much digital marketing could bring for the business?
Is that mostly work for consumable products?
Is that considered as a cost?
Can you forecast the ROI?
How much investment is required to see the results?
What if you get a huge response and your business is not ready to support or supply?
How to sell the idea to the management as it involves support and contribution from many departments?
Every small process works of its own but when it comes to integration, this is where most of them fails.
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