bottom two rows we have also added in typical strategies and tactics used to achieve
objectives which show the relationship between objectives and strategy. Note, though,
that this framework mainly creates a focus on efficiency of conversion, although there
are some effectiveness measures also.These are some of the generic Internet marketing main strategies to achieve the objec-
tives in the grid which apply to a range of organisations:
Online value proposition strategy– defining the value proposition for acquisition and
retention to engage with customers online. Includes informational and promotional
incentives used to encourage trial. Also defines programme of value creation through
time – e.g. business white papers published on partner sites.
Online targeted reach strategy– the aim is to communicate with relevant audiences
online to achieve communications objectives. The communications commonly
include campaign communications such as online advertising, PR, e-mail, viral cam-
paigns and continuous communications such as search engine marketing or
sponsorship or partnership arrangements. The strategy may involve (1) driving new,
potential customers to the company site, (2) migrating existing customers to onlineCHAPTER 4· INTERNET MARKETING STRATEGY
Table 4.7 Online performance management grid for an e-retailer
Metric Visitor Conversion to Conversion Customer retention
acquisition opportunity to sale and growth
Tracking metrics Unique visitors Opportunity volume Sales volume E-mail list quality
New visitors E-mail response
quality
Transactions
Performance drivers Bounce rate Macro-conversion Conversion rate to Active customers %
(diagnostics) Conversion rate: rate to opportunity sale (site and e-mail
new visit to start and E-mail conversion active)
quote micro-conversion rate Repeat conversion
efficiency rate for different
purchases
Customer centric Cost per click and Cost per opportunity Cost per sale Lifetime value
KPIs per sale Customer Customer Customer loyalty
Brand awareness satisfaction satisfaction index
Average order Products per
value (AOV) customer
Business value KPIs Audience share Online product Online originated Retained sales
requests (n, £, % sales (n, £, % growth and volume
of total) of total)
Strategy Online targeted Lead generation Online sales Retention and
reach strategy strategy generation strategy customer growth
Offline targeted Offline sales impact strategy
reach strategy strategy
Tactics Continuous Usability Usability Database / list
communications mix Personalisation Personalisation quality
Campaign Inbound contact Inbound contact Targeting
communications mix strategy (customer strategy (customer Outbound contact
Online value service) service) strategy (e-mail)
proposition Merchandising Personalisation
Triggered e-mails
Source: adapted from Neil Mason’s Applied Insights (www.applied-insights.co.uk) Acquisition, Conversion, Retention approach