Assignment 5 - Digital Strategy Foundations 4

.docx

School

Baruch College, CUNY *

*We aren’t endorsed by this school

Course

9785

Subject

Marketing

Date

Apr 3, 2024

Type

docx

Pages

3

Uploaded by ElderWren4038

Report
MKT 9793 DIGITAL MARKETING STRATEGY Baruch College, Zicklin School of Business Department of Marketing & International Business Adjunct Professor Linda Gharib Name:_ ___ Assignment 5 – Digital Marketing Strategy Foundations 4 Lecture: Digital Marketing Strategy Foundations 4 How much is a customer worth to Netflix? 1. Why is Customer Lifetime Value an important metric for the CMO of Netflix to understand as he/she develops the digital marketing strategy? Customer Lifetime Value (CLV) refers to an indicator of the total revenue that a company can earn from a customer over time. It is an essential metric for every business including Netflix as it allows a company to assess the value of customer relationships and analyze the efficiency of digital marketing plans. For instance, Netflix can determine how much marketing budget they can spend on customer acquisition based on the lifetime value of their customer. 2. Why is CLV even easier to calculate online vs. offline? I believe calculating CLV for online business would be easier than offline as there would be more customer data available online. For instance, companies that have online businesses can take into consideration their customers’ purchase history, 1
MKT 9793 DIGITAL MARKETING STRATEGY Baruch College, Zicklin School of Business Department of Marketing & International Business Adjunct Professor Linda Gharib purchase frequency, and relation duration while offline may not have this detailed information. It will allow companies to calculate more accurate CLV for each customer segment which helps allocate resources wisely and optimize profit margins. 3. Why is segmentation important in the age of personalization? Customer segmentation allows companies to create tailored content and messages that are essential to provide personalized experiences. For example, by setting segmentations based on similar attributes, characteristics, and behavior, companies can operate targeted marketing campaigns and offer personalized recommendations which will improve marketing efficiency and build better engagement with customers. 4. Give an example of a brand that has used behavioral segmentation to serve you ads while you are online. What did they do well? What could have been improved to get you to complete the purchase transaction? As a new mom, I have been frequently searching baby-related keywords on Google such as baby sleeping time, feeding amount, and development milestones. It probably allowed the baby formula brand Kendamil to segment me as a new mom and started showing its paid ads on Instagram. I like how they create content comparing their formula with Enfamil in terms of key ingredients and price points which are key considerations to choose baby formula for a new mom like me. However, I ended up not purchasing Kendamil as the call-to-action was not strong enough. The ad directly connects me to their Walmart landing page without any offers. Since the lifetime value of baby formula customers should be high considering most moms tend to stick with one formula brand for their baby, they could have improved its call-to-action by investing marketing budget and offering appealing promotions to get new customers to complete the purchase transaction and continue consuming their product. 5. Why are personas important to develop for your digital marketing strategy? Personas are profiles that represent different groups of customer segments. Developing buyer personas is essential for digital marketing strategy as it helps create the right content for the right segment at the right time. It helps companies understand how to reach their marketing campaign on a more personal level while delivering targeted messages. As a result, by leveraging buyer personas, they can operate more effective and efficient digital marketing strategies to maximize revenues and profits. 6. When do you think brands have crossed the line in using the data they have about you to serve you relevant ads? 2
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help