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You may be interested

Tune your marketing for <0>maximum</0> with Altcraft Platform

Reach your audience with personalized messages through Telegram, Viber, WhatsApp, and other messaging platforms. We can connect any messenger app you prefer to ensure your messages reach your customers without delay.

An event registered on the platform can be redirected to an external system. This provides endless opportunities for integration. Connect external BI, DMP, CRM and other tools.

In Altcraft Platform, you can set up any scenarios for sending messages through various delivery channels. By analyzing the actions of customers, you can anticipate events many steps ahead. Here are examples of scenarios that can be implemented in our marketing automation service:


Email marketing is one of the most important customer communication channels. Four out of five marketers are more likely to give up social media marketing than email marketing. Here are illustrative examples of the email marketing strategy:


Conduct experiments to find the most compelling email, push, and SMS templates. Test multiple ideas simultaneously to identify the one that resonates best with your audience. Additionally, unsuccessful variations can provide insights on how to avoid similar mistakes in the future.

Build messages dynamically based on customer data and specified conditions in the template. This data can be obtained from an external SQL database. Substitute data from an external HTTP service via API or based on data from any web page.

<Img
img="/uploads/storytelling_fbfef55813.png"
alt="Let the Client Feel Like a Hero: How Storytelling Works"
/>

Many people wonder: how do stories work in marketing? What is the secret of effective selling storytelling? When the messages embedded in a selling story align with the customers' values, such storytelling boosts sales. 

## Advantages of storytelling

Stories are the oldest tool of communication, dating back to the oldest cave drawings 44,000 years ago. Our ancestors used stories to share and preserve their history, etching them onto durable stones. Marketing has taken up storytelling because of its unique ability: tales transport people away from ordinary reality, capturing attention and igniting dreams and desires.

Additionally, storytelling:

- **Increases brand recognition**

Bright stories become strongly associated with the storyteller. Storytelling works in various formats such as advertisements, videos, social media posts, and emails. Scientifically, [**it has been proven**](https://www.tandfonline.com/doi/abs/10.1080/02650487.2014.994803) that storytelling increases brand recognition regardless of the presentation format. One prominent example is [**Super Bowl**](https://www.mailjet.com/blog/email-best-practices/super-bowl-email-marketing/) commercials. Thousands of people remember this story, they laugh and cry, and are inspired by the main character's actions. This is precisely how stories work, by impacting people's emotional perception.

- **Builds trust between the company and the customer**

A good presentation adds credibility to the company: it appears more reliable, and the product seems of higher quality. It's no wonder that government organizations conduct extensive research on the impact of storytelling on consumers. Politicians and public figures deliver speeches with elements of storytelling from high platforms to influence entire nations.

Since storytelling is effective in such matters, achieving marketing conversion becomes an even less challenging task. Standard objectives that marketers work on (such as guiding customers towards a purchase, motivating them to subscribe to a newsletter, or encouraging them to download [**a lead magnet**](https://altcraft.com/blog/what-is-a-lead-magnet)) can be achieved more quickly with the help of stories.


- **Establishes an emotional connection**

Harvard scientists have discovered that an emotional connection with a customer is more valuable than their satisfaction from a previous purchase. According to Gerald Zaltman, a professor at Harvard Business School, the majority of purchasing decisions (around 95%) are made at a subconscious level, driven by emotions.

Marketing tools often rely on emotions, and storytelling is designed to evoke them. In their work, marketers study the "pain points" and needs of their target audience, as well as their motivations and aspirations, all of which are emotionally charged factors.

This applies not only to commercial organizations but also to charity foundations and non-profit enterprises, which actively utilize emotionally driven narratives to draw attention to their goals. An example is [**the video campaign by Greenpeace International**](https://www.youtube.com/watch?v=TQQXstNh45g&embeds_origin=https%3A%2F%2Fwww.mailjet.com&feature=emb_imp_woyt).

- **Stimulates social media activity and SEO**

An emotional response is highly motivating for readers to like a post or share it on social media. High-quality backlinks for better search engine indexing often come from social media platforms.

There is nothing better than telling a compelling story. If it is captivating, it will be passed from person to person. There was a time when stories were primarily transmitted through word of mouth. Today, we simply click the "Share" button or share a link to a publication.

Digital marketers release annual digests, informing us about the latest trends in content marketing, publishing rankings of the most popular engagement methods, and devising new optimization strategies. However, in reality, it is storytelling that delivers the best results.

- **Adds authenticity to the brand**

Mere claims from company representatives about the unique features of their products no longer attract anyone. You can talk endlessly about the functions and benefits of a product, but without evidence, it will remain mere boasting. Storytelling, especially when based on real advantages of a product or service, sounds trustworthy.

In the promotion of products, authenticity in storytelling is achieved by avoiding jargon and profanity while expressing genuine empathy towards potential customers. By doing so, a company demonstrates that it understands the feelings and experiences of the customer and the journey they may have gone through.

## The customer has their own hero's journey

There is only one type of story that doesn't work, where the company is the protagonist of the narrative. Good stories put the customer as the main hero.

Almost everyone knows someone, a relative or acquaintance, who can talk endlessly about themselves. At what point does your patience run out? The patience of an audience is even more fragile. If a company constantly brags about itself, people won't want to listen. Effective marketing storytelling is distinguished by making the customer the main character, and the journey they go through becomes their hero's journey.

The "Hero's Journey" storytelling formula was invented by the renowned professor Joseph Campbell. The story originates from Greek mythology and continues in the legends of Native Americans. Similar motifs are present in the works of Tolkien, Marvel films, and Pixar movies.

What unites all these events? The hero's journey.
## What the hero's journey is

The main protagonist embarks on a great journey: they leave home and venture into adventures, overcome challenges, find loyal companions, and defeat enemies. Having achieved their goal, the hero acquires a valuable reward and returns home. Have you heard this a hundred times? Indeed, the story sounds very simple and familiar. These qualities are precisely what is needed in marketing storytelling.

### The character development can be summarized in the following steps:

- The hero lives an ordinary life, but is called to venture out of their comfort zone.
<p>

- The hero receives a call to embark on a journey.
<p>

- Initially, the hero refuses to join the journey.
<p>

- The hero's familiar world starts to crumble.
<p>

- The hero encounters a mentor: someone older and wiser who compels the hero to follow them.
<p>

- The hero gains allies, acquiring friends and enemies.
<p>

- During the journey, the hero experiences a loss that challenges the success of the entire operation.
<p>

- The hero overcomes a significant trial and emerges victorious.
<p>

- The hero is rewarded for their deeds.
<p>

- The hero returns home with triumph, transformed into a different person.

This framework should be applied to your stories. To make the story engaging, it is important to listen to what is being said within your company about your customers.

Visualizing the customer experience can be facilitated by creating a detailed profile of the target audience and developing a customer journey map. You will be surprised to discover clear parallels between the hero's journey and the journey of your typical customer.
## Examples of using storytelling in marketing

Here are five examples of well-known global advertising campaigns that used storytelling:
### Year 1984. Apple

39 years ago, Apple showcased the hero's journey in a one-minute TV commercial. The Super Bowl advertisement became a true sensation. The plot unfolds in a dystopian reality where a leader "indoctrinates" the audience from large screens. It bears a striking resemblance to the events described in George Orwell's novel "1984".

The main character is a young woman in sports attire who is being pursued. She hurls a hammer in one of the screens, causing it to explode. A voiceover announces the release of *Macintosh*.

Even if you caught only the end of the story, your imagination fills in the gaps, and tells you what happens in the commercial. You experience the story through yourself, understanding the hero as if you know her backstory and what she's risking it all for. Then *Apple* declares that everything will soon change: the world will no longer be the same.

<Img
img="/uploads/image2_1ad95cbf44.jpg"
alt="Apple"
/>

*Apple* has always cared about individuality in the world. The company stands against the monotonous dependence on computers. It conveys to the audience the value of standing out, being brighter, and shining. This message is still evident in their advertising campaigns up to nowadays.

### Patagonia

Customers of [**the outdoor gear brand Patagonia**](https://www.patagonia.com/stories/) become the heroes of the company's blog. The blog revolves around the slogan: "Stories to get you out there"

Each blog post is dedicated to describing the adventures of ordinary people who do extraordinary things for the sake of environmental conservation or seeking a simple dose of adrenaline. The stories are written in an accessible language and do not contain a direct call to purchase a specific product. Farmers fighting against chemicals, mountain travelers, and those who clean up the coast of Chile from trash – all of them wear clothing with *Patagonia* logo.

The company itself is rarely mentioned in the stories, nor are its products. The effectiveness is achieved by establishing an emotional connection with consumers. The stories captivate the viewers, making them think, "They are ordinary people, just like me, and they wear such clothing."

### Square

*Square* is a video tool for creating videos. The platform itself is promoted through storytelling. Square's marketers launched a film series called "For any dream," which showcases the development of small businesses and the entrepreneurs behind them.

The storytelling often begins with the story of an ordinary person who has a dream. You won't find any mentions of *Square*'s products or colorful descriptions of how the platform specifically helped a particular business thrive. The videos are entirely dedicated to the real heroes – those individuals who have overcome all challenges and brought their dreams to life.

### Year 1981. Lego
And again the 80s: it was then that *Lego* launched an advertising campaign based on photographs of children with *Lego* brick toys. Although the focus was on children, this ad was aimed at parents. It made them think about how to raise a curious and creative child. The company didn't stop there.


<Img
img="/uploads/image6_f877e3f279.png"
alt="Lego"
/>

Later on, an advertising campaign with the slogan [**"Never stop playing"**](https://www.lego.com/en-us/rebuild-the-world/never-stop-playing?icmp=LP-SHMBS-Standard-90th_Anniversary_MB_small_Never_stop_playing-OC-NO-SYSIW0UKTU) emerged. In the videos, teenagers and adults showcased their talents. This created a complete cycle of the hero's journey, emphasizing how Lego contributes to the development of skills and abilities, and how it ultimately impacts people's lives and careers.

### Salesforce and Trailhead

Educational platforms are an excellent way to take on the role of a mentor for followers. *Salesforce* offers the hero educational content [**at the center of Trailhead**](https://trailhead.salesforce.com/en) to "prepare customers for the future." The company's marketers understand that the more people learn to work with the platform, the more likely enterprise professionals will prefer it.

To kick-start the journey on the *Trailhead* homepage, there is a description of the reward the hero will receive upon completing the journey and acquiring *Salesforce* knowledge. The customer only needs to choose a profession to study and embark on the "trail".

## How to use storytelling in email marketing


It's very convenient to tell stories in email. Storytelling in [**email campaigns**](https://altcraft.com/blog/types-of-email-newsletters-and-what-are-they) is effective because they have unique qualities: relevant information comes to the right person via email at the most suitable time. Thus, the recipient (your current or potential customer) becomes the hero of the story, and the moment they receive the email coincides with the time the hero's journey begins.

## Types of emails suitable for storytelling

- **Welcome emails**

Many journeys start with receiving a letter. Harry Potter was handed a Hogwarts invitation letter. Princess Leia from "Star Wars" placed a hologram in a droid's memory with a plea for help.

Come up with such a welcome letter that will lure the recipient to go on a long journey with your company. Put the customer at the center of your world, let them become the hero.

The success of a welcome email depends on whether or not you establish a trusting relationship with the customer, or end up in their spam folder.

 

<Img
img="/uploads/photo_2023_05_11_10_10_12_086e7218fd.jpg"
alt="Welcome emails"
/>

- **Onboarding emails**

Onboarding emails should be helpful and encouraging. In them, the company takes on the role of a mentor, helping the hero overcome challenges and achieve their goals. The hero is about to embark on a difficult journey, but you have products that can assist them. And first and foremost, teach them how to use them.

When a customer achieves their first result, it may only mark the beginning of their journey. Signing up for a trial session or making an initial purchase is not an end in itself, but these events place the hero in the midst of their journey.

From this point on, email messages become guides: they show which way to go and  provide information at the right moment.


<Img
img="/uploads/image7_63b5dc7e28.png"
alt="Onboarding emails"
/>

- **Informational newsletters**

An informational newsletter is the best way to tell a reader a story. Every piece of content in such emails is both a hint and a riddle. If the narrative appeals to the customer, they will follow it. An informational newsletter will open up a horizon of events and show them the right path.

This tool can be compared to Q from the James Bond movies, who would introduce new spy gadgets and devices.



<Img
img="/uploads/image1_c53ef38117.png"
alt="Informational newsletters"
/>

- **Confirmation emails**

Sometimes it's difficult to determine where the hero's journey begins and ends. For example, a person comes for a test drive or a property viewing. The customer has already made an effort and taken a certain action, but the journey is just beginning. The hero is sure to be rewarded: a new car or a desired apartment.

Order confirmation or delivery confirmation emails typically include details about the order placed. If the order has not yet been paid for, it's appropriate to dispel any doubts the person may have about their choice in such an email.

When the purchase is complete, congratulate the buyer on their long-awaited acquisition. Thank the customer for their pleasant interaction and leave them with the most positive memories of your company.

Then, the next time you send a person a personalized offer, they will embark on a new journey with you.


<Img
img="/uploads/image3_293318d7b5.png"
alt="Confirmation emails"
/>

- **Reactivation emails and reminder emails**

Remember, it's natural for people to have doubts. That's why the hero's journey includes steps like the "refusal of the call to adventure" and the "moment of despair" when the hero considers abandoning the journey. Customers of your company also go through such moments. A timely reminder email will help keep the hero from giving up.

If the hero has indeed abandoned the journey, [**reactivation emails**](https://altcraft.com/blog/how-to-reactivate-inactive-email-subscribers) can come to the rescue. Don't immediately give up on the faltering hero; give them a second chance.


<Img
img="/uploads/image5_a1ad25cb21.png"
alt="Reactivation email"
/>

Of course, storytelling works in absolutely all promotion channels, in any industry, and for any clients. It is only necessary to stay to the basic principles of creating stories that we have described in this article. 

And now it's high time for you to write a breathtaking  journey for your hero!


Storytelling works in all promotion channels, in any industry, and for any clients. It is only necessary to stay to the basic principles of creating stories.

medium_storytelling.png

small_storytelling.png

thumbnail_storytelling.png

storytelling.png

To tell the stories in order to boost sales? Seriously? Read on and discover how it works!

Let the Client Feel Like a Hero: How Storytelling Works

<Img
img="/uploads/gejmifikaciya_v_marketinge_d50cd0e664_2f1fd062fa.png"
alt="How to Use Gamification in Marketing"
/>

In the world of an "epidemic" of [**banner blindness**](https://altcraft.com/glossary/banner-blindness-its-causes-and-how-to-deal-with-it), users are increasingly not noticing online ads and other types of advertising on the internet. This behavior is typical for 86% of website visitors. 

Brands have to find new ways to attract the audience's attention and engage users in their content. One of such tools is **gamification**, i.e. using game elements in marketing campaigns. Gamification is more noticeable than regular advertising and often more effective. 

From the article, you will learn what gamification is, its pros and cons. We will also provide examples of game mechanics that well-known brands are already using.

## What is gamification

Gamification in marketing is the use of game elements to promote a company, its products, and services. Typically, quizzes, quests, competitions, lotteries, and giveaways are used.

*For example, a customer doesn't just accumulate points through a [**loyalty program**](https://altcraft.com/blog/customer-loyalty-program), but enters a world where everyone has their own rating. They progress from level to level and earn points that can then be converted into a discount.*

Elements of gamification are used in retail for promoting mass-consumer products, education, and even banks create games to engage customers in serious financial topics. Gamification is a method that has almost no limitations in terms of business directions. Gamification tools are even used in B2B sales.
Games work in two main directions:

- **Attracting new users**, when the goal of gamification is to draw a user's attention to the brand's content in the general flow and leave contacts (lead generation).
<p>

- **Involving the user in the product**, so that customers stay with the brand and do not leave. This is especially relevant for language learning services, where users do not drop out of lessons, including due to the thrill of wanting to reach the next level and get a higher rating. That's why gamification is so popular in education.

Games may seem to be a kind of a "magic pill," but actually they are not. Gamification in business is an interesting promotion method that can breathe life into any marketing campaign, but it also has its drawbacks. We will tell you about the pros and cons of gamification.

### Advantages of gamification

- It makes the brand more recognizable, especially when the gaming project becomes "viral".
<p>

- Gamification techniques engage users and keep them staying with the brand. Playing is more interesting than just receiving content in a newsletter.
<p>

- It increases sales: digital gamification is more noticeable than standard advertising and it brings leads that convert into sales. Also, brands offer additional products through games and increase the average check.
<p> 

- It sells brand products natively: it seamlessly integrates them into the game plot.
<p> 

- It increases loyalty, because the company communicates with users through games, draws attention, and creates emotions.

### Disadvantages of gamification

- Gamification technology is not equally useful for all businesses. The audience of serious companies simply won't understand why you launched a game. Such a move is unlikely to bring results.
<p>

- It is also important to evaluate the resources of the brand, because gamification of processes is an investment of money and time in its creation. Often you need to involve technical specialists or a whole team (your own or invited).

## How to create gamification in marketing

The steps for implementing game mechanics in marketing may vary across different businesses. The process could look like this:

1. Set a goal and determine how the use of gamification will solve your business objectives. Do not choose this tool just because you want to be trendy.
<p>

2. Choose your target audience: you need users who will be interested in gamifying their life in the brand's world.
<p>

3. Think about the format: a game with a set of points/rankings, quiz, quest, competition, lottery, and so on. Also, decide which marketing channels you plan to use for promotion: [**messengers**](https://altcraft.com/blog/messenger-marketing), SMS, email newsletters, and others.
<p>

4. Define what motivation the user will have to participate in the project: what they will receive (bonus, emotions, status).
<p>

5. Write a scenario with detailed actions for the user. This is also where the mechanics of gamification are thought out, where it is determined what the user will receive bonuses for and how much, and how to use them further.
<p>

6. Think about what tools (software and others) are needed to implement the idea and where the game mechanics will appear: on the website, [**in a chatbot**](https://altcraft.com/blog/the-benefits-of-chatbots-for-businesses), in an application, etc. Write a technical assignment for the team that will implement gamification.
<p>

7. Test the chosen gamification method on a small group and fix the errors.
<p>

8. Launch the game for all users and track the results.

## Gamification: examples of usage in marketing

The use of gamification is a popular approach, especially during holidays and important events such as premieres and various gatherings. Below are some examples of gamification.

### Japanese KFC’s game “Shrimp attack”

An outstanding decision of Japanese *KFC* outlet was performed due to their collaboration with *Nintendo* and promoted their new line of shrimp food. *Nintendo* developed a video game that suggested defending a castle from the shrimps attacking it. The users got virtual reward coins for their successful attempts and could spend them as real money at the nearest *KFC* location. Due to such a smart idea the sales increased up to 106%. 

<Img
img="/uploads/out1_1_717617b983.gif"
alt="Shrimp attack by Japanese KFC"
/>

### Making a pizza of your own with Domino’s Pizza

In 2011, *Domino's Pizza* launched an original game in their mobile app: users could create their own pizza online and order it at the nearest location. As a result, sales increased by 30% that year. But that's not all: the company invited the best pizza makers to work for them.

<Gallery>
<GalleryItem
original="/uploads/Piczcza_szhataya_1_35f70a2d14.gif"
thumbnail="/uploads/Piczcza_szhataya_1_35f70a2d14.gif"
description="The custom pizza of your own by Domino's Pizza"
/>
<GalleryItem
original="/uploads/Piczcza_szhataya_2_3728e81ca6.gif"
thumbnail="/uploads/Piczcza_szhataya_2_3728e81ca6.gif"
description="The custom pizza of your own by Domino's Pizza"
/>
</Gallery>

### M&M’s Eye-Spy Pretzel

In 2010, *M&M’s* launched candies with a new pretzel flavor. After a few years, they decided to reload the new flavor and posted an easy game *M&M’s eye spy pretzel* on Facebook. The result was 21,000 likes and 6,000 shares, which ultimately revived interest in the legendary brand.

<Img
img="/uploads/m_ms_facebook_gamification_aec81634df.png"
alt="M&M’s Eye-Spy Pretzel"
/>

### Starbucks

*Starbucks* is known for staying on top of technology trends, and one of the ways they do this is through their "My Rewards" program in the *Starbucks* app. This program allows customers to earn stars or points every time they make a purchase, and after collecting a certain number of stars, they can redeem them for discounted vouchers at their local *Starbucks*. Additionally, customers may receive free items like coffee or sandwiches during their visits.

<Img
img="/uploads/Starbucks_cde7fee5a3.gif"
alt="Starbucks"
/>

### The wheel of fortune by Gap

The clothing store Gap provided the newsletter with the wheel of fortune. You can never lose because you get your discount of a fixed amount of dollars, or you get some percent off for a purchase. 

<Img
img="/uploads/GAP_wheel_of_fortune_7588e9c14f.gif"
alt="The wheel of fortune by Gap"
/>

### Pepsi, For the Love of It campaign with AR game

In 2020, *Pepsi* launched a promotional campaign that utilized augmented reality (AR) technology, featuring four globally recognized football players, namely **Lionel Messi**, **Paul Pogba**, **Mo Salah**, and **Raheem Sterling**. The campaign introduced *Pepsi* cans with exclusive QR codes that could be scanned to load AR versions of the football players on users' phones. This allowed users to participate in a virtual kick-up game and share their experience on Instagram. The AR game was part of a cross-channel digital experience called *Pepsi, For the Love of It*, which aimed to boost customer engagement and enhance brand recognition.

<Gallery>
<GalleryItem
original="/uploads/gamification_pepsi_1_904bf5c7d1.png"
thumbnail="/uploads/gamification_pepsi_1_904bf5c7d1.png"
description=""
/>
<GalleryItem
original="/uploads/gamification_pepsi_2_b339c46906.png"
thumbnail="/uploads/gamification_pepsi_2_b339c46906.png"
description=""
/>
</Gallery>

### The Australian Sink a Sub

In 2020, the Australian brand *Subway*, together with *Wunderman Thompson Australia and New Zealand*, introduced a gaming experience called *Sink a Sub*. This game is set on a virtual battleground at sea and aims to transform how customers interact with the brand's most iconic product, the submarine sandwich. Every customer who purchases a sandwich and a drink at Subway locations in Australia and New Zealand got a code for the high-sea gaming experience, where they can participate in a game that involves sinking a submarine sandwich on the digital gameboard.

<Gallery>
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original="/uploads/gamification_subway_1_948d2a4463.png"
thumbnail="/uploads/gamification_subway_1_948d2a4463.png"
description=""
/>
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original="/uploads/gamification_subway_2_da85741866.png"
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description=""
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</Gallery>

## Summary

**Gamification** in marketing is the use of game mechanics to promote a company instead of traditional advertising. This method is chosen to attract new users and engage existing ones. It includes games with point accumulation and ratings, quizzes, lotteries, quests, competitions between users, and so on.

Gamification increases loyalty and sales, is suitable for many businesses, but usually requires investment to develop such projects. To implement gamification in marketing, first set a goal and define which business tasks it will solve. Next, mechanics, scenarios, and a technical task for the team are outlined. When launching gamification, it is worth testing it on a small group before opening the game to the entire audience.


Gamification in marketing is the use of game elements to promote a company, its products, and services. Quizzes, quests, competitions, and so on are used.

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gejmifikaciya_v_marketinge_d50cd0e664.png

Hunting for a fresh & creative idea to boost customer engagement and increase sales?

Gamification: What is It and How to Use It in Marketing

How to Use Gamification in Marketing

<Img
img="/uploads/alternativy_storonnim_fajlam_cookies_98520ab61e.png"
alt="Alternative tools to third-party cookie"
/> 

Just a few years ago, every marketer relied heavily on [**third-party data**](first-second-and-third-party-data), or cookies from external sources. However, Google's recent decision to cease collecting this information has left marketers searching for new ways to work with customer data. Although they have another year to prepare, 54% of respondents claim to have already taken steps in this direction. According to 85% of those surveyed, their work's effectiveness is directly dependent on cookies, while 77% say that Google's decision has negatively impacted marketing business processes.

## What can replace third-party cookies? 

A recent survey of marketers aimed to identify viable alternatives to third-party cookies. The results showed that the most popular alternatives were targeted social media advertising (mentioned by 55% of respondents) and direct user data collection (54%). Google Topics API was also a popular choice, mentioned by 52% of those surveyed, while 36% saw potential in contextual advertising and universal identifiers. 

<Img
img="/uploads/Grafik_1_0974477339.png"
alt="Cookies alternatives"
/>

Let's take a closer look at each alternative.

## Social media targeting

Love it or hate it, social media platforms offer marketers a powerful set of tools for targeted advertising. Gen Z and millennial consumers, in particular, are highly likely to make purchases through social media, which extends the platforms' influence beyond just communication to sales.

During the period between September and November 2022, 33% of social media users made at least one purchase based on [**influencer recommendations**](what-is-influencer-marketing-how-to-build-strategy). Of these users, 28% placed and paid for their order, without ever leaving the social media site, and 22% engaged with brand representatives via the platform.

<Img
img="/uploads/Grafik_2_a0c0cc4360.png"
alt="Generation Z survey"
/>

## Gathering first-party information

The company gathers users' personal data via its official website, surveys, email, SMS, and CRM systems. This information is utilized to develop the business and tailor offers to individual customers. Some marketers still lack knowledge of their customers' demographic information, making the use of user data especially valuable to them.

## Google Topics API

This is a service that tracks which resources users visit when searching for information on a specific query. Although it is not yet widely used, marketers are beginning to consider it a promising alternative to cookies.

How does it work? For example, if someone frequently visits sports streaming websites, Google algorithms will offer that person as an audience for sports-related ads. The user's privacy is maintained at a high level, and advertisers cannot know which specific pages the person visited. Additionally, users can edit their list of interests in the settings.

## Universal identifiers

These are unique IDs assigned to website visitors, which marketers use to distinguish between individuals on websites. They are a close alternative to third-party cookies, as they have a lot in common in the way they work. However, universal identifiers have several advantages:

* Users can be tracked simultaneously across multiple devices, improving the customer experience and eliminating the risk of data loss.
* Duplicate entries are automatically removed, resulting in a higher quality sample.
* Personal data collected through this method is suitable for targeting while ensuring privacy.

## Contextual advertising

Contextual advertising is a different approach compared to the methods described above, as it allows the placement of the right advertisement at the right time and in the right place, without relying on obtaining [**user data for targeting**](what-is-retargeting). Instead, contextual advertising takes into account the current content on the website or platform where the advertisement will be placed.

For instance, an advertisement for headphones can be displayed in the feed of a music blog, where it is relevant to the content. With contextual advertising, advertisers prioritize the context in which the advertisement will be displayed, rather than relying on past user behavior or personal data.

## Why marketing budgets are growing

After the abolition of third-party cookies, marketers had to urgently change their working strategies. On the one hand, there was an incentive to master new targeting methods, and on the other hand, there was a need to ensure the security of user data.

The requirements for preserving customer data confidentiality have become stricter worldwide. This is mainly what led to the increase in marketing budgets. 71% of marketers claim that marketing expenses have increased.

But not everything is so bad. Of course, businesses will have to allocate additional resources to find a reliable alternative to cookies and to retest and find effective ways to achieve their goals and objectives. However, those who go down this path have every chance of improving familiar business processes.

30% of marketers claim that these events have been beneficial to their business and have had a positive impact on the quality of marketing in their companies.

## Future of data privacy: what to expect

The work of marketers is becoming more difficult as they have to adapt to constantly changing rules for collecting and using personal information about customers. On a legislative level, the [**policy on data privacy is becoming stricter**](customer-data-privacy-issues-in-digital-marketing), and users themselves are questioning how their personal information is being used.

Currently, it is unclear what standards companies will have to work with in the near future. Due to this, many firms are allocating a budget for research and seeking new solutions. The first step is to find alternatives to third-party cookies. Ultimately, those who are adaptive in the dynamically evolving world will win.

Learn about the alternatives marketers are turning to instead of third-party cookies and their effects on budgets.

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For those who are already looking for ways to replace cookies.

What Alternatives to Cookies Are Marketers Exploring

5 Alternative Tools to Third-Party Cookies

<Img
img="/uploads/ROAS_ROI_ROMI_7292d14939.png"
alt="ROAS, ROI, ROMI"
/>

If your company only invests money in development, but does not earn it, that's definitely something to think about. ROAS, ROI, ROMI metrics are used to evaluate the effectiveness of investments in business and individual areas of work and, as a result, to see the weak spots and make the right decisions to change the strategy.

Each metric is suitable for a different degree of company overview. ROI is a complete assessment of the success of investments; it takes into account all revenues and expenses. ROMI is calculated when working with marketing. ROAS is used for individual advertising campaigns.

Metrics are often confused, so in this post we are going to figure out what they mean, how they differ, and why each is needed. We will also tell you how to calculate ROAS, ROI and ROMI correctly.

## What is ROI

**Return on Investment**, or ROI is used to understand how much is earned from each dollar invested. The ROI formula takes into account the costs of creating, maintaining, and promoting a product. This includes the cost of purchasing materials, salaries, the budget for advertising campaigns, etc.

### Why and how to calculate ROI

The calculation of ROI is important for assessing the profitability of your business: whether investments pay off and whether there is a profit from them. When the ROI is low, the decision is made to close unprofitable projects or change the marketing strategy and the entire direction of the company's development. ROI saves you from wasting your budget and tells where to invest money to get a better result.

**ROI formula (%):**

<Img
img="/uploads/ROI_b6b5495f5a.png"
alt="ROI formula"
/> 

ROI is calculated for a certain period, but during this period there should not be a dramatic change in circumstances, such as price hikes, new suppliers, and so on. In the formula, **revenue** is the money earned by the company. **Costs** include all investments made.

Also, the time interval for calculation depends on the sales cycle length.

What is a good ROI? Usually a result above 0% means that you have made a profit. Below that figure means the business is losing money. Exactly 0% ROI means that the business has paid off the investment, but has not earned anything.

*Example. In September, a sportswear store spent 10,000 dollars to update its clothing collection, paid employees 5,000 dollars in salary, and bought advertising for 3,000 dollars. This month, the store's sales amounted to 22,000 dollars. ROI = (22000-18000)/18000=22%. This is not a high value, but at the same time, the costs paid off in full, and the store's activities in September made a profit.*

### How to increase ROI

* **Check the effectiveness of marketing channels** and disable or adjust those that bring low results.
* **Work with your target audience.** It is possible that [**low quality leads**](MQL-and-SQL) are coming in because you are addressing the wrong people in your ads.
* **Connect sales and marketing** if there is inconsistency or problems getting information to another department. Sometimes a successful advertising campaign comes to naught if the sales team does not handle leads the right way.
* **Revise your business goals** and make sure they are realistic. Exaggerated plans will not bring results if there are not enough resources.

## What is ROMI

**Return on Marketing Investment**, or ROI is used to understand how much is earned from every dollar invested in marketing. Marketing expenses include the costs of advertising, promotions, events and other marketing activities. It can also be calculated for individual channels, such as [**messenger**](messenger-marketing) or email campaigns, contextual advertising, and so on.

### Why and how to calculate ROMI

The metric is important for evaluating the effectiveness of promotion. ROMI gives businesses a broader view of marketing. If you evaluate the superficial result (the number of clicks, applications, etc.), you can decide that the campaigns are successful. However, after calculating the return on investment, it turns out that you spend more money on marketing than you earn from it.

**ROMI formula:**

<Img
img="/uploads/ROMI_0dbda34671.png"
alt="ROMI formula"
/>

The ROMI formula is similar to the ROI calculation, but the **costs** include only the costs of marketing tools.

*Example. The company spent 3,100 dollars on contextual advertising, 1,000 dollars on email campaigns, and 900 dollars on [**influencers to promote products**](how-to-find-effective-influencers-to-promote-small-business). In the current month, the company's income amounted to 4,500 dollars. ROMI is (4500-5000)/5000= –10%.*

**What is a good ROMI?** More than 0% means that the investment pays off. Less than 0% — costs exceed revenue. 0% shows that investments go «to zero». *In the example above, the investment does not recoup the costs.*

### How to increase ROMI

* Make it easier for users to buy. Remove unnecessary steps in advertising and on the site. Don't force interested leads to fill out dozens of fields and confirmations. Let them reach the “Buy” button faster.
* Check the effectiveness of channels and individual advertising campaigns. Don't invest in things that don't work. Always look for ways to optimize your advertising and website — test hypotheses and reject unsuccessful solutions. Invest more in high-priority channels that generate revenue.

<Note>
Reliable data management system increases control over marketing performance. [**Altcraft Platform**](/en) automates the work with advertising and collects information from different sources in a single profile, so the company knows everything about customers. As a result, marketers make the right decisions and choose profitable strategies.
</Note>

## What is ROAS

**Return on Ad Spend**, or ROAS is a measure of the return on investment a business spends on advertising. It is used to check how much money has returned from investments in individual ad campaigns or channels. The ROAS formula includes advertising revenue (due to customers who saw the ad, clicked on the link and bought) and campaign costs (usually the cost of advertising on sites and excluding the work of a specialist).

### Why and how to calculate ROAS

ROAS is a metric that shows the effectiveness of a particular advertising campaign or promotion channel. You can evaluate individual strategies and techniques to eliminate unsuccessful ones and allocate a larger budget for successful ones. Thus, ROAS is needed to make decisions on specific marketing actions, but not on the entire strategy, as ROMI.

**ROAS formula:**

<Img
img="/uploads/ROAS_00f0e1c5ce.png"
alt="ROAS formula"
/>

The total metric for a campaign or individual ads is calculated.

*Example. The online store launched a Facebook advertising campaign and sent out an email campaign. Facebook advertising expenses amounted to 1,000 dollars, and the revenue received was 1,800 dollars. The email campaigns cost the company 300 dollars, and the revenue was 1,200 dollars. The ROAS of an advertising campaign on Facebook is 1800/1000=180%. And the ROAS of email campaigns is 1200/300=400%. Perhaps the company should increase the investment in email marketing, since it brings more profit for every dollar invested in advertising.*

**What is a good ROAS?** The calculation is different from ROI and ROMI. ROAS is considered good if its value is above 100%. Otherwise, investments in advertising do not pay off.

### **How to increase ROAS**

* Change creatives and offers of advertising campaigns that are not performing well. Check them out through testing.
* Drop the channels that bring insignificant results.
* Find weaknesses in the [**sales funnel**](what-is-sales-funnel) and work out the places where leads are lost.
* Check the effectiveness of the site: clarity, speed, accessibility, etc.

## The difference between ROI, ROMI and ROAS

The metrics are similar, but differ in scale. Some show the business globally, others in more detail. Let's compare them in the table.

<Table>
| **Difference** | **ROI** | **ROMI** | **ROAS** |
| ------ | ------ | ------ | ------ |
| **Calculate the return on investment in…** | business | marketing | ad campaigns |
| **Used to…** | Сhange the overall business strategy and focus areas | Test effectiveness and adjust marketing strategies | Change or cancel advertising campaigns |
| **What costs to consider…** | all (creation, maintenance, product promotion, and so on) | only marketing | only the budget of individual campaigns |
| **Formula** | (Revenue − Costs) / Costs * 100% | (Revenue − Marketing costs) / Marketing costs * 100% | Campaign revenue / Campaign cost * 100% |
</Table>

## Key points when working with ROI, ROMI and ROAS

* **Consider the context of the metrics.** Pay attention to the circumstances (market conditions) and don't look at metrics in isolation.
* **Collect accurate and complete data for the right analytics.** Choose a convenient system for data management.
* **Correctly determine the calculation period**, which depends on the duration of the sale. The longer the deal, the longer the time span.

## Conclusion

ROAS, ROI, ROMI are metrics that help to understand the effectiveness of investments in a business: whether the money spent on its development pays off. ROI refers to more global and general metrics. It takes into account the return on investment after calculating all investments made (from the cost of producing to advertising). ROMI shows the effectiveness of marketing investments. ROAS is responsible for the return on investment of individual advertising campaigns.

Metrics give a hint what to change in the work of the company. ROI is needed to adjust overall strategies. ROMI is calculated to adjust marketing strategies. ROAS answers the question of what to do with specific ads, newsletters, and other campaigns.

It is important to consider all metrics in context with other business data and use analytics systems.

Metrics are often confused. Read the post to learn what these metrics mean, how they differ, and how to calculate ROAS, ROI and ROMI correctly.

medium_ROAS, ROI, ROMI.png

small_ROAS, ROI, ROMI.png

thumbnail_ROAS, ROI, ROMI.png

ROAS, ROI, ROMI.png

For those who do not know how to calculate the return on investment in their business.

ROI, ROMI, ROAS: What is the Difference and How to Calculate

What is the Difference Between ROI, ROMI and ROAS

<Img 
img="/uploads/BLOOOG_155d109a5c.png"
alt="Cross-Selling: Definition and Types"
/> 

Sometimes customers are ready to buy more than they plan. It is important to offer them complementary products that can be used with the main one at the right time. For this reason, companies introduce cross-selling, which increases profits by 30% on average. This happens without wasting time or budget, often automatically and almost always unobtrusively.

In this post, you will learn what cross-selling is, why companies need it, how it differs from upselling and downselling, as well as what types and techniques exist to increase the average order value.

## What is cross-selling

**Cross-selling** is the process of recommending supplementary items to customers when they have already chosen the original product they intended to purchase. For example, if customers add a smartphone to their carts, you can offer them a case for this model or a screen protector.

It is important to understand that cross-selling is not about forcing a product on a customer, but about a profitable deal. Additional products should not be random, but useful for using the main one.

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original="/uploads/Frame_16_9ff077b7d9.png"
thumbnail="/uploads/Frame_16_9ff077b7d9.png"
description="Cross-selling example"
/>
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original="/uploads/fram1_94569edaa3.png"
thumbnail="/uploads/fram1_94569edaa3.png"
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</Gallery>

Cross-selling is often confused with upselling  and downselling. Let's find out the difference between these types of sales.

<Table>
| **Sales type** | **Description** | 
| ------ | ------ |
| Cross-selling | Offer customers products that complement the items they originally intended to purchase. | 
| Upselling | Offer customers a similar but more expensive product. Motivating a customer to buy another unit of a product is also upselling. | 
| Downselling | Offer the customer a similar but cheaper product (in case the budget is limited). | 
</Table>

<Gallery>
<GalleryItem
original="/uploads/Frame_17_b33aea5a13.png"
thumbnail="/uploads/Frame_17_b33aea5a13.png"
description="Upselling example"
/>
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original="/uploads/upselling_2_bb4f632aa8.png"
thumbnail="/uploads/upselling_2_bb4f632aa8.png"
description="Upselling example"
/>
</Gallery>

**Here are the benefits of cross selling:**

- **An increase in the average order value** and, as a result, the company's income.
- **You don't need a budget to promote related products** because their offering is usually automated.
- **Less effort to sell.** The cost of supplementary products is much lower than that of the main product. A person who is already willing to pay for the purchase of a product is likely to spend a small amount for related categories. This technique is one of the [**classic sales secrets**](5-marketing-techniques-to-push-customers-to-buy). If the customer really needs the product, it is easy to sell it. For example, in an online store toy cars are sold without a battery, so customers have to buy them as well.
- **Increasing customer satisfaction.** It is more convenient for customers to immediately buy the bundle they need to fully use the product, even if they have to spend more money than they intended. Let's go back to the toy example. If you remind customers about batteries at the time of placing an order, they will be satisfied. They do not have to look for the right product elsewhere and waste their time. Therefore, the cross-sale is also a tool to increase loyalty.

## Types of cross-selling

<Table>
| **Product type** | **Description** | **Example** | 
| ------ | ------ | ------ |
| Necessary | Without these items it is impossible to use the main product. | The company stopped putting the charger in the iPhone package, so buyers have to buy it anyway. |
| Related | With these items, the use of the main product is easier or more convenient. | Phone case |
| Impulsive | Not the most necessary, but inexpensive and interesting items that are bought for nothing. | Designer phone stand | 
| «Might like it» | Items related to the purchase. | Smart watch of the same brand | 
| Seasonal | Related to the main product, but only needed at certain times of the year. | Touchscreen winter gloves | 
</Table>

## Cross-selling techniques

### What sales techniques are used for cross-selling

- **Offer supplementary products** when the customer has already added the main one to the cart or is about to check out.
- **Selling a bundle** that includes everything customers need to fully enjoy the original product.  For example, this sales method is found in BackMarket. On the page with the MacBook, they immediately show a set of items that will come in handy.

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thumbnail="/uploads/cross_selling_bundle_2_2_8f465daa89.png"
/>
</Gallery>

- **Confidential sales to regular customers.** The brand offers new products to those who have been buying from them for a long time. Items are not always directly related to the main one, but the client will purchase them because of the trust in the brand.
- **Identification of additional purchase needs.** Usually at this stage there is a manager who asks questions to the customer. Another way to recommend products is to use data from previous purchases and customer activity on the site.
- **Recommendations by interest.** This is what online cinemas do. They show which movies the user might like. The algorithms select movies similar to the ones the user has already watched.
- **Bonuses for a certain order amount.** Customers are offered a discount, free shipping, or credit option only if they spend a certain amount of money. In this case, the buyer has to pick up a basket of add-ons. Although such a sales technique is manipulative, it is effective.
- **Social proof.** You can show products that other users buy with the one the customer has added to the cart.
- **Cross-selling through advertising and email campaigns.** [**Remarketing will catch up with customers**](what-is-retargeting) on other sites with banners after they complete the target action on your ecommerce site. Another way is to offer additional items via email after the first purchase. For example, [**Altcraft Platform**](/en) has scenarios and triggers for email cross-selling. After the purchase, the user will receive an email with products that match the main one.

You should not stop at one technique. Mix and try sales techniques.

<Note>
Important! Offer products that match with the main one and enhance the effect of its use. Don't sell too expensive products and don't offer too many options — sometimes the customer does not want to spend time choosing. Successful add-on purchases are quick and do not require extra actions so that the user does not have time to change his mind.
</Note>

## How to set up cross-selling

1. Study what the audience is already buying with your products. You can get insights by using the collected data or [**conducting a survey**](customer-satisfaction-survey-mistakes).
2. Make a cross-selling matrix. Compare products by compatibility and choose those that complement each other. Indicate in which case the goods are used together. It is convenient to make the matrix in the form of a table.

**Cross-selling matrix example**

<Img
img="/uploads/cross_selling_matrix_example_1a54a0cc4e.png"
alt="Matrix example"
/>

The size of the matrix depends on the assortment. Include in the table products that are essential to use the basic one, as well as impulsive, seasonal and “might like” products.

3. Determine if there will be discounts to encourage sales. If so, in what categories?
4. Decide when to offer additional products. At the moment when customers view the product they came for, or when they [**add the product to the cart**](how-to-reduce-cart-abandonment-rate)? Maybe after purchase or through remarketing? You can also recommend other products in the product description.
5. Think over the text for the offer of related products. For example, ‘people buy with this product’ (social proof) or ‘do not forget to buy’ if these are products that are useful for the effective use of the main one.
6. Set up supplementary product offers on your site or in the system you use to manage your online store.

## Conclusion

Cross-selling is a process of encouraging customers to purchase a product that is related to what's being bought already. This sales tactic is used to increase the average order value. The customer is offered the items that are needed for the functioning of the selected product. These are useful sales because customers only buy what they need.

It is important to choose the right moment for the presentation of supplementary products. The recommendation block can be shown when the customer has already chosen the main product or after the purchase. Also, sellers sometimes give a discount on a bundle or give bonuses (such as free shipping) starting from a certain order amount in the cart.

Get started with cross-selling by looking at your customers' purchase history. Then make a matrix of goods by compatibility, choose ways to offer specials. And finally, automate processes in the online store management system or on your website.

In this post, you will learn what cross selling is, how to use it to increase the average order value and how cross-selling differs from upselling and downselling.

medium_cross-prodaji.png

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cross-prodaji.png

For those who want to implement cross-selling and increase the average order value.

Cross-selling | Definition, Types, Benefits, Implementation

Cross-Selling: Definition and Types

<Img 
img="/uploads/marketing_s_ogranichennym_byudzhetom_6c4bd72c27.png"
alt="9 Budget Ways to Do Marketing"
/> 

Effective marketing campaigns are important for large corporations as well as for medium and very small companies. They are all interested in promoting their business, attracting new customers and increasing sales. The only difference is the amount of money a business can afford to spend on advertising.

In this post, we will talk about how to properly position yourself in the market if you are limited by a small budget.

## 1. Use guerrilla marketing

This is a creative and low-budget way, which is based on strong emotions of potential consumers. Your task is to come up with such a marketing move that is sure to memorize and surprise customers. This way they will show interest in the brand, and they will want to personally try your products. At the same time customers will tell all their friends and acquaintances.

<Img
img="/uploads/Mister_proper_ddbe35bc6f.jpg"
alt="Guerrilla marketing"
/>

You need to [**study the target audience**](creating-a-customer-profile), determine the location of a large number of potential customers and come up with a good idea. Only then will guerrilla marketing bring tangible results.

The more unusual the idea and the placement, the more people will turn their attention to it. As with a crosswalk, hundreds of people pass through it every day, and many of them will want to post a custom zebra crossing on social media.

## 2. Use social media

Modern users spend a lot of time on their phones. People are always in touch on [**messengers**](messenger-marketing) and social networks. Learn what social networks your audience prefers. If you don't have a Twitter or LinkedIn account yet, it's time to get one. In some channels, you need to take an active position in promoting your products and services. While in others you need to interact with buyers through a question and answer.

Post useful materials: posts, videos, quotes, and etc. How-to videos, tutorials, and interviews work well to engage potential customers. Hashtags designate places and headings, large buyers and partners. This way you will increase your audience reach.

## 3. Hire a PR-manager

If you don't have a PR-manager in your company, fix it right away. The main task of a PR manager is to maintain a high reputation of the brand, including through the history of the brand. This specialist gives the company publicity, increases its recognition. Due to this, trust in the brand and product among customers grows. Trusting relationships with customers is a very important factor in successful sales.

In a PR strategy, specialists focus on those problems that can be solved through a promoted product. For the best result, [**involve bloggers or influencers**](what-is-influencer-marketing-how-to-build-strategy) in cooperation. Such partnerships can be expensive, low-cost, or free (for example, through barter). It depends on the size and goals of the company.

Segment the audience, find communication channels for each segment and gradually warm up the leads to the desired level. This is where a good PR-manager comes in handy.

## 4. Improve your content marketing

The right content strategy moves the business forward. Content is the first thing a user gets to know when they come into contact with a brand. It matters how you present information. Content marketing is at the core of good communication.

First of all, check your official website: how SEO works on it, especially on the [**blog page**](https://altcraft.com/blog). The ranking of the domain in search engines will depend on this. Try offering different content to your customers and see what works best. In most cases, storytelling is a good way to attract an audience.

Also, make sure that your resources provide answers to frequently asked questions. Let customers know that you are aware of their needs and ready to offer them a solution. Use an interactive blog, do not hide data, visualize boring numbers through infographics.

<Img
img="/uploads/marketing_podcasts_5c40ce4d9a.png"
alt="Marketing podcasts"
src="Marketing podcasts"
/>

[**Publish podcasts**](https://altcraft.com/blog/podcast-marketing) — users like them a lot. Pay attention to the **guest post**. This is an option for sharing valuable articles with a link to your company website on other resources. Backlinks increase traffic to your site. The method indirectly affects the reputation of the brand. The more often your company name is shown on the Internet, the better your brand looks.

## 5. Run giveaways

Draws and contests attract the attention of a large number of people. Existing customers increase their loyalty to the brand, and potential buyers start to get interested. The prize doesn't have to be expensive. Any useful device will do. The main thing is that the conditions for participation in the competition should be as simple as possible. For example, mention friends under the post; like a post; share the post on your page; tag the brand. At the end of the competition, be sure to award the winner.

For [**honest reviews**](how-to-use-customer-feedback-to-increase-sales), offer the client a discount or give a free gift. To increase brand awareness, use merchandise with your logo (mugs, pens, notepads, t-shirts).

<Gallery>
<GalleryItem
original="/uploads/Hudi_d1a65afb7d.jpg"
thumbnail="/uploads/Hudi_d1a65afb7d.jpg"
description="Merchandise by Altcraft"
/>
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original="/uploads/Ryukzak_2938adc512.jpg"
thumbnail="/uploads/Ryukzak_2938adc512.jpg"
description="Merchandise by Altcraft"
/>
</Gallery>

## 6. Create partnerships

Look for allies in the market. [**Partnerships**](https://altcraft.com/partners) work best with brands that make products that complement yours. Collaborating with competitors will not bring benefits, but the right allies will strengthen your business and their own positions. Place a partner's ad on your site, and in return ask them to publish your material and get additional traffic. Expand the production chain, make friends with suppliers and consumer firms. The smaller the firm, the more useful it is to collaborate with similar businesses. But even the largest companies should maintain a reputation and fame.

## 7. Get to know GMB

Google My Business is a free service where you can advertise yourself so that potential customers can see you. The GMB account is easy to create. It is enough to provide contact information, address and work schedule. Small businesses receive free promotion through Google services and Google Maps using this tool. But you should always keep your company information up to date.

## 8. Don't forget email marketing

An old but still effective way to communicate with customers. It is used both to keep existing customers engaged and to [**attract new ones**](what-is-a-lead-magnet). Try to make your email newsletters as useful as possible. Tell them about new products, discounts, promotions and hot offers. From time to time develop educational materials (product guides, useful article recommendations and life hacks).

<Img
img="/uploads/image_2023_01_11_14_49_49_f580241e5c.png"
alt="Рассылка от известного магазина"
src="An example of a newsletter from Casper"
/>

## 9. Develop referral programs

Imagine how your popularity will increase if at least a third of your existing customers introduce your product to their friends. [**Referral programs**](affiliate-marketing-for-beginners) provide rewards to clients for attracting new users. With the help of them, the sales market expands and the brand is popularized. We can say that this method is based on the principle of word of mouth.

## Resume

We have described nine great ways to do low budget marketing. Expensive doesn't always mean good. Get creative, use the ideas described here to surprise your customers.

Find out how to promote your business, increase brand awareness and attract new customers with a limited budget.

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marketing-s-ogranichennym-byudzhetom.png

For those who want to promote their business, but are limited by a small budget.

How to Market and Promote Your Business on a Small Budget

9 Budget-Friendly Ways to Market Your Business

<Img 
img="/uploads/kak_povysit_effectivnost_klientskogo_puti_79f13d5884.png"
alt="How to Increase Efficiency at All Stages of Customer Journey Map"
/>

Collecting information about customers without a purpose is inefficient, as it will not bring benefits. While 1st, 2nd and even 3rd party data can improve customer experience when used with the right tools and strategy.

Users dictate conditions for companies. For example, when, where and how to communicate. Brands have to anticipate the behavior of customers, search for them on convenient platforms and accompany them to the completion of a targeted action. Therefore, businesses are constantly monitoring changes in consumer preferences and new communication channels, as well as thinking through new ways to conversion.

Personalized and omnichannel marketing is a way to catch customers at the right time in the right place. Information about consumer behavior will be useful at any stage of the customer journey, reducing the time and cost spent on attracting and retaining customers.The combined use of a [**data driven approach**](data-driven-marketing) and AI gives you an additional advantage over your competitors.

How to optimize the customer journey map using customer data? Direct information to predict and develop an effective growth strategy aimed at attracting the right people. Track unique customer desires and preferences in real time. Each of your communication channels should become a tool to “personalized” marketing.

Take a look at customer data marketing services. With them, all the collected information will be integrated into the management decision-making mechanism and included in the forecasting process. In addition, information will be selected from the standpoint of the applicability of a specific user experience at different stages of the sales funnel.

As a result, the company's customers will receive a positive experience of interacting with the brand and will trust it. The company minimizes costs and maximizes profits. Let's take a closer look at how you can improve the efficiency of each stage of the customer journey with the help of data.

## Ways to improve the efficiency of interaction with customers at different stages

### Stage 1. Introduction to the company

Imagine that there are people who have never heard of your company. At the stage of getting to know customers, your task is to work on brand awareness and increase interest in your company. Most often, acquaintance with the brand occurs through contextual advertising. Focus on the value of the product and study the needs of the audience.

You can increase the effectiveness of your advertising by using the collected customer data. Working out the pain points and needs of your audience, as well as customer segmentation, will save the advertising budget.

How to effectively use the data at the stage of acquaintance:

- **Focus on attracting high-value customers.** Paid media campaigns should be based on ideal prospects. Create segments using first-party data, develop lookalike audiences and automate work with them. Make it possible to purchase through paid media.
- **Reduce the cost of paid advertising services to attract customers.** Remove already converted customers from paid media campaigns using the dynamic suppression lists. The easiest way to do this is to use CDPs. You can upload such a suppression list to a service and thus be sure that already converted customers do not fall into acquisition campaigns.

### Stage 2. Comparison of competitors and similar products

When potential customers become familiar with your brand and product line, they begin to analyze and compare products that interest them. Customers will compare specifications, price, additional services and costs.

The task of the company at this stage is to warm up the interest of customers in their company and product. Make sure users have enough information to understand that your product is the best.

How you can use customer information at this stage:

- **Focus on reducing** [**cart abandonment**](how-to-reduce-cart-abandonment-rate). Set up a push or email campaign for those customers who have added a product to the cart but have not placed an order for some time. Using customer data, you can identify the most active shoppers from all abandoned carts.
 
<Img 
img="/uploads/image5_0b2464bb66.png"
alt="Abandoned Cart Email from Gerry’s"
scr="Abandoned Cart Email from Gerry’s"
/>

- **Convert the trial period to a paid subscription.** To do this, you should optimize your omnichannel customer journey setup through testing. Once you have the test  results, create effective routes and run workflows based on user data.

### Stage 3. Decision making

How to hurry the client to complete the transaction and at the same time maintain his high motivation for further orders? In the minds of buyers, the value of the purchase will remain high if you use social proof (reviews and recommendations) and material incentives (promotional codes, discounts and bonuses). To make CLTV long, run engagement and retention events, work on loyalty throughout the customer’s journey map.

How user data will help:

- **Improve cross-channel interaction.** Try to interest buyers with new resources based on an analysis of their behavior in the past. Multi-channel clients bring more value to the company than single-channel clients. Work with clients both online and offline, and build a trusting relationship with the brand from the first touch point.
- **Support cross and upsell.** Existing customers can be motivated to purchase new products. To do this, separate customers who have only shopped in one category. Offer them products from related categories. This way you can increase your average order value and customer lifetime value.

<Img 
img="/uploads/image1_894964d7ad.png"
alt="Cross-selling"
src="Cross-selling from MAC"
/>

- **Optimize shopping frequency.** The purchase of many products can be planned. Schedule predictable repeat purchase windows. Customers often subscribe to constantly used products, which can be automated.

- **Shorten the time period until the second purchase.** Personalized marketing aims to keep the customer engaged after the first purchase. Set up automatic messages to periodically remind the buyer about the brand and about new products. This improves CLTV, orders, and conversions.

### Stage 4. Prevention of customer churn

Each new customer is valuable to the company, especially if it stays for a long time. How to motivate buyers to do this?

Collect customer reviews about purchased products or services, engage customers in a dialogue. Become partners with them, encourage repeat purchases and maintain high loyalty. This is how you prevent customer churn.

<Img 
img="/uploads/image2_77bd67a298.png"
alt="How to Increase Efficiency at All Stages of Customer Journey Map"
src="Feedback form from Chapelle Jewellery"
/>

A time-tested strategy is to work with [**referral links**](affiliate-marketing-for-beginners) in bonus programs and loyalty programs. The method works great for retaining customers and expanding the audience.

How to make the most of consumer data in the retention phase:

- **Launch a** [**loyalty program**](customer-loyalty-program). Motivate users to participate in it. Focus on those potential prospects who match the profile of existing customers. These people are exactly your target audience, they become loyal supporters and distributors of the brand, especially if you offer them bonuses for attracting new partners.

<Img 
img="/uploads/image4_48eff70331.png"
alt="Loyalty program"
src="Loyalty program from Happy Socks"
/>

- **Consider discounts.** Repeat purchases are well stimulated by special offers, bonuses and discounts. To find the most effective option, use multi-channel tests. With the help of them, you will find out exactly what bonuses to offer customers in a specific communication channel to increase the conversion rate.
- **Set your priorities.** An analysis of the behavior of current consumers will allow you to notice a possible churn of customers in time. Activate advertising campaigns to retain customers. First of all, restore communication with those who are at risk.

### Stage 5. Reactivation and return of clients

It happens that customers have lost confidence in the brand and left for competitors. In this case, your task is to bring them back. Customer lifetime value is at the heart of strategies to reactivate subscribers and reacquire lost customers. At the same time, it is important to use different communication channels when working with such clients.

How to use customer data in the return phase:

- **Target customers with high CLTV.** The most valuable customers are determined by their purchase history and projected lifetime value. First of all, you need to aim at their return, motivate the return with special offers.
- **Use personalization.** One customer will return after receiving the first email with a [**promotional code**](how-to-use-promo-codes-for-business). The other will return only after a series of reactivation emails. Some won't come back at all. Consider the behavior and personal preferences of each customer and create omnichannel customer journeys. When it comes to reactivation, the time that has passed since the last interaction with the brand is of great importance. 

## Setting steps of the customer journey

It is important to plan settings, but the reality is that it can't be done without technical tools. Modern marketing technologies allow you to combine disparate information about users into a single resource, launch automated trigger campaigns to attract, retain or return customers, as well as generate an attractive user experience.

What capabilities should be in your technical toolkit:
- **360° customer view.** With such a profile, the analytics will be accurate, and the customer journey map will be targeted.
- [**Audience segmentation**](how-and-why-to-segment-target-audience). It is important in order to provide consumers with personalized content.
- **Advanced customer journey configuration.** This way, you can make interaction with customers comfortable at all stages. 
- **Engineering real-time experiences for your customers**, no matter where or when they engage with your brand.


In this post, we will tell you how to use data correctly to improve the customer experience at different stages of the journey to conversion.

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Let's find out how you can increase efficiency at each stage of the customer journey with the help of data.

How to Increase Efficiency at All Stages of Customer Journey

How to Optimize All Stages of the Customer Journey

<Img 
img="/uploads/Blog_b0169471f4.png"
alt="Sales funnel"
/>

Customers do not always buy as soon as they find a product on a company's website or elsewhere. When it comes to complex and expensive products, consumers take the time to compare and study. For this reason, companies try not to be intrusive and help users go through all stages of decision making step by step.

It is a sales funnel that is used to make the process transparent and simplify analytics. A sales funnel is a concept that describes all the steps a customer takes on the way to a conversion. There are several funnel models: the classic five-step buying scheme, the AIDA model, the SPIN method, and others. The company chooses a model and adapts it to its needs or creates its own version.

In this post, we will explain what a sales funnel is, why use this concept and how to develop it.

## What is a sales funnel and why use it

A **sales funnel**, also known as a **marketing funnel**, is the journey a customer takes from first contact with a business to making a purchase. The model is usually visualized as an upside-down cone and represents all the stages of sales that the client goes through. The top part gets the most [**leads**](MQL-and-SQL). But not everyone gets to the end where the purchase takes place, so the cone narrows to the bottom.

### Why does your business need a sales funnel

- **Highlight weak spots.** When all steps are written and all stages of the sales funnel are tracked, it is easy to analyze and understand where there is a problem in sales.
- **Supervise the work of sales reps and marketers.** The funnel includes marketing tools and sales activities, so it is easy to track the effectiveness of each participant in the process.

*For example, your advertising campaign results in 100 applications per week, but only 5-10 people buy. The analysis shows that the applications are targeted, and most of all clients are “turned back” after talking with the manager. You look into the situation and find that sales reps are not interested in dealing with the client and do not know how to handle objections about the high price. If the company did not have a sales funnel, it would be more difficult to find the reason.*

- **Create controlled sales.** If you know at what stage of decision-making the lead is now, you can make an offer that will satisfy their needs. This approach will speed up the purchase.
- **Analyze sales performance.** You can calculate your sales funnel conversion using the formula. Divide the number of converted customers by the total number of users, and then multiply the result by 100%.

<Img
img="/uploads/sales_funnel_conversion_formula_db6b695bd1.png"
alt="Sales funnel conversion"
/>

In other words, this is the difference between the number of leads at the top and the bottom. The more potential customers reach the purchase, the better the funnel works.

## Sales funnel stages

The classic sales funnel is the AIDA model, which consists of four stages.

<Table>
| **Stage** | **Description** | 
| ------ | ------ |
| **Attention** | The lead contacts the brand for the first time through advertising or direct search on the Internet. |
| **Interest** | The lead is interested in the product, for example, they subscribe to the newsletter, click on the links or ask questions. |
| **Desire** | The lead understood that he needs the product, and now they are looking for options for a profitable offer, such as discounts, free shipping, etc. |
| **Action** | The lead places an order. |
</Table>

<Img
img="/uploads/classic_sales_funnel_8977a756a3.png"
alt="Classic sales funnel"
/>

The other type is the marketing funnel, which repeats the five stages of sales.

<Table>
| **Stage** | **Description** | 
| ------ | ------ |
| **Approaching the customer** | The first contact between a sales rep and a potential client or automatic first message. It is important to make the right impression and motivate a person to continue communication. |
| **Discovering customer needs** | The sales rep asks the client questions about their needs. Then the manager draws a conclusion and offers a suitable solution. |
| **Pitching** | Present your solution. Based on the discovered needs of the client, talk about the features of the product and its benefits. The sales rep presents only those features that are important to the client. |
| **Handling objections** | The sales rep answers the buyer's questions and works out objections. For example, doubts about the cost or quality of the product. |
| **Closing the deal** | The customer is ready to buy and is interested in payment methods or installments. The task of the sales rep is to switch the client to the completion of the purchase: pay, order delivery, and so on. |
</Table>

In brick-and-mortar retail stores, all five steps are done in a conversation here and now. However, if your company operates in the digital space, the online sales funnel consisting of such stages is not always fast. Sometimes the process includes phone calls, messaging, and sending files.

Another option is the SPIN method. Its author, Neil Rackham, said that classic five-step sales models are not effective for large and complex deals, such as B2B. According to SPIN, at each stage managers work with different types of questions that identify the customer's problem, clarify and lead to a purchase.

<Table>
| **Stage** | **Description** | 
| ------ | ------ |
| **Situation** | Open-ended questions to clarify the situation in which the customer is now.  |
| **Problem** | Questions to identify problems and hidden needs. |
| **Implication** | Questions that demonstrate the possible negative effect if the problem will not be solved. |
| **Need-payoff** | A type of “what if” question that guides the customer into the future; questions like these show how a customer's life would change if they fixed a problem with your product. |
</Table>

Each company chooses the model that best suits its needs, and transforms the stages, adjusting them to the business processes.

## How to build a sales funnel

There are no universal methods, so brands not only adapt existing marketing funnel models for themselves, but also develop their own. Some models also include after-sales service, upselling and cross-selling.

Let's create a custom sales funnel in six steps:

### 1. Collect data

Collect information about the audience that should be included in the list of leads. Determine the channels through which customers come. Find out how customers behave on different resources, as well as what their needs and objections are. Next, plan a funnel for a specific audience, and not for all customers at once. Choose one of the existing models, exclude the steps that are not important for your company and add the missing ones.

### 2. Define a goal for the funnel

Specify what conversion rate you would like to receive from the funnel and also rates for intermediate stages. The model is divided into top, middle and bottom. Specify how many users are expected to reach each stage.

### 3. Think through the steps of the funnel

Define actions at each funnel step. For example, at the beginning it may be the launch of an advertising campaign. The middle is a call from the sales rep or an email reminder of the purchase. At the end, you can offer free shipping or bonuses.

### 4. Create content for each step

For automatic funnels, the content can be email templates. If sales reps lead customers through the funnel, prepare scripts, materials that they will send to customers for a detailed acquaintance with the product.

### 5. Set up a sales funnel

Marketing funnel can work:

- manually through the sales staff;
- semi-automatically — email marketing services, phone services and other automation platforms are responsible for some of the stages;
- automatically — a marketer only controls and optimizes.

You will have to use [**special services**](/features/analytics) to set up semi-automated and automated sales funnels. In the future, this will save time for your employees and speed up communication with the client.

### 6. Run the funnel, analyze and optimize

Once the funnel is up and running, it is important to monitor and improve it. Regularly measure performance at each stage and quickly respond to changes. Only in this way the model will bring the expected income. To optimize your funnel, you need to get feedback from users on the sales process and analyze the stages of the funnel.

## Sales funnel example

The user visits your site, adds the item to the cart and immediately checks out. This is an example of a simple funnel, but this rarely happens. Often the path to purchase is longer and more difficult. Here is an example of such a funnel.

The user:

1. Gets to the company's website through contextual advertising. 
2. Views a product, for example, an autumn jacket. 
3. Subscribes to an email newsletter that informs about promotions and brand news. 
4. Receives an email with an offer for the autumn collection. 
5. Follows the link and adds the item to the cart, but does not check out. 
6. The company sends a reminder email about the product in the cart and the user buys.

## How to automate your sales funnel using Altcraft Platform

The platform supports [**omnichannel marketing**](omnichannel-vs-multichannel), so it collects information about different stages of the sales funnel in a single profile. Let's take a look at how to automate the customer journey from the example above.

1. You set up and run contextual advertising through Google Ads.
2. Jane visits your site and leaves her email. Her contact details are included in the Altcraft Platform database. The subscription to the resource is added.
3. The platform launches an automatic series of welcome emails.
4. Jane receives an email with a promotional code. She reacts and adds the item to the cart, but does not check out.
5. Altcraft Platform starts an [**abandoned cart**](how-to-reduce-cart-abandonment-rate) email scenario.
6. Jane becomes interested and buys. The funnel ends.

The entire process of moving a user through the sales funnel is automated through workflows and other Altcraft Platform tools. Sending messages through different channels — Email, SMS, Push, WhatsApp or Telegram — can expand the possibilities of your business and make the customer journey completely clear and controlled.

<Img
img="/uploads/abandoned_cart_scenario_607a42d15b.png"
alt="Abandoned cart scenario"
src="Abandoned cart scenario"
/>

The Funnel report is used to track the process performance. The report displays metrics for all actions within the strategy. It is possible to visualize all the steps of the sales funnel: the number of customers and the percentage of conversion.

<Img
img="/uploads/sales_funnel_in_altcraft_platform_d15cdd4757.png"
alt="Conversion funnel in Altcraft Platform"
src="Conversion funnel in Altcraft Platform"
/>

## Conclusion

A sales funnel is a model of a customer's journey from the first meeting with a brand to purchase. Using this approach, you will make sales transparent and controlled. The company begins to control each stage of the transaction, monitor the work of the sales department and find weak spots.

Building a sales funnel is possible using the AIDA, SPIN models, five classic sales steps and others. There is no universal solution, so companies also create their own models. To do this, you need to collect customer data, define goals, make a plan for each stage, prepare content, set up a funnel, and continue to optimize after launch.

This post explains what a sales funnel is, why use the concept, what funnel models exist, and how to build your own marketing funnel.

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A sales funnel is a concept that describes all the steps a customer takes on the way to a conversion.

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