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img="/uploads/image2_81af22abe6.png"
alt="2023 Business Roadmap: Strategies for Growth & Success"
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While marketers often concentrate on attracting potential customers and converting them into buyers, this approach rarely yields the anticipated results. [**Gartner**](https://www.gartner.com/en/sales/insights/b2b-buying-journey#:~:text=Your%20sales%20reps%20have%20roughly%205%25%20of%20a,Gartner%20guide%20for%20CSOs%20to%20learn%20how%20to%3A) agency has calculated that only 5% of purchases happen directly through the sales department, with clients interacting with companies through marketing channels such as social media, websites, blogs, and press releases.

As a result, the spotlight is on customer engagement and active online presence—these are the ways in which companies can distinguish themselves in the market and stimulate demand for their products or services.


## What is demand generation


When demand is generated, your company becomes well-known, your products and services are sought after, and customers proactively reach out to you for assistance.

**Demand generation** involves identifying potential customers who are unaware of the existence of your product but have a need for it. Your task is to spread information about your company and convince customers that you provide the solution to their problems.

<Img
img="/uploads/image4_f3d3abca36.jpg"
alt="Demand generation: notion, what is it"
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For instance, consider a potential customer in need of a CRM system. Your company specializes in developing exactly such a tool. The customer is unaware of your existence, compares solutions on the market, and leans towards purchasing a CRM from a well-known developer. Generating demand for your product means explaining the value of your CRM, highlighting how it differs advantageously from a popular brand.

While working on creating excitement and demand for your product, you simultaneously address several other objectives, namely, accelerating business growth and expanding your consumer audience.

## How demand capture and demand creation differ


The fundamental laws of economics state that demand begets supply. Demand is at the core of any business. The processes of demand capture and demand creation are similar but require different levels of effort and are directed towards different objectives.

Demand capture involves attracting people who are ready to make a purchase – those who have gone through [**the sales funnel**](https://altcraft.com/blog/what-is-sales-funnel) and are at the final stage. This includes customers closer to the end of the sales funnel. Your goal is to push them towards closing the deal. You don't need to invent anything new at this point since these are individuals who have already recognized the need for your product.

**Marketing strategies for demand capture in the B2B sector might include:**

- **Case studies:** demonstrating that your solutions work.<p>
</p>
- **Media coverage:** gaining popularity in mass media ([**reviews**](https://altcraft.com/blog/how-to-use-customer-feedback-to-increase-sales), news articles, etc.) to convince consumers that your brand and products are valued by society.<p>
</p>
- **Own resources:** a well-designed website, a social media presence, containing detailed information about your product, its functioning, price, and comparisons with other products in the market.

The demand capture process is closely tied to how a person has interacted with the product in the past. A positive experience is more likely to lead to conversion.

When it comes to demand creation, the first step is to identify the problem of the [**target buyer**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it) and answer how your company can solve it. Unlike demand capture, the process of demand creation involves customers in the top and middle parts of the funnel. It's particularly important to learn how to create demand for lesser-known and specialized companies.

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img="/uploads/image5_a6bdca4de7.jpg"
alt="Marketing strategies to capture demand"
/>

**For demand creation, the following marketing strategies are used:**

- Increasing brand awareness through mass media, paid advertising, and PR.<p>
</p>
- Building educational resources: blogs, in-depth posts on social media, informative articles.

## Crafting an efficient demand generation strategy
### Explore the market and audience


When you begin exploring the market, pay close attention to your competitors. Examine who comprises the target audience of your competitors, the products and services they offer, their pricing strategies, and the marketing approaches they employ. Answering these questions will help you identify your own advantages and refine your target audience.

Once you've defined your target audience, delve into understanding them. Demographic characteristics, interests, behaviors, needs, and preferences are all essential. Conduct surveys, organize focus groups, and analyze social media purchase data. Based on the collected information, segment your target audience. This will enable you to gain deeper insights into each group and tailor your strategy to meet their needs.

Regular [**surveys**](https://altcraft.com/blog/customer-satisfaction-survey-mistakes) are necessary since consumer preferences change rapidly. Gather feedback from customers to provide personalized offerings.


### Create a unique selling proposition


You should first understand and then communicate to consumers the value of your offering. To achieve this, define what makes your product or service unique. It could be instant delivery, high availability, or exceptional efficiency. Which attribute of your product will attract the most customers?

<Img
img="/uploads/image3_c8bdb65347.jpg"
alt="Unique selling proposition to engage customers"
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Devise a memorable call-to-action phrase. Your proposition should be clear and appealing. If you have the opportunity, test the proposition on real customers. Make adjustments if necessary based on the actual results obtained.

### Develop a marketing strategy

Outline a range of marketing channels that you intend to utilize to attract customers. These can encompass social media platforms, targeted or native advertising, PR campaigns, and [**influencer marketing**](https://altcraft.com/blog/what-is-influencer-marketing-how-to-build-strategy).

Remember: only post high-quality content on any platform. Strive to be proactive and anticipate the needs of potential customers. This strategy works well, as many consumers gather information online before engaging with a seller. Position yourself as an expert in the digital realm. This approach can foster a trustworthy relationship with customers right from the start.

[**Diversify your content**](https://altcraft.com/glossary/content-marketing-what-is-it-for-and-how-to-launch-it). Your audience includes those who are frequent users of your products or services, first-time visitors, and even those who are unaware of your existence. Your content should engage each group. Address frequently asked questions in your publications to save time during customer interactions.

Allocate a budget for your marketing strategy. Don't exhaust all your resources in a single promotional channel; an omnichannel approach is more effective. At this stage, it's essential to determine the resources needed to achieve your goals and identify where to acquire them.

Utilize marketing metrics and KPIs to assess the effectiveness of your actions. Analyze the results and make timely adjustments to your marketing plan.

### Drive demand stimulation


Harness promotions, discounts, lead magnets, promo codes, and other marketing tactics to stimulate demand effectively.

Craft an enticing [**loyalty program**](https://altcraft.com/blog/customer-loyalty-program) to make working with you even more rewarding for repeat customers. For others, this can serve as an incentive to engage with your company more frequently. Common loyalty program features include accumulating points, increasing discount tiers, or granting access to exclusive offers. Referral programs are also valuable for rapid scaling: customers refer friends and receive bonuses in return.



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img="/uploads/image1_4e2b7099a2.jpg"
alt="Loyalty program to attract buyers"
/>

### Care for all your customers


Not all leads you attract will immediately convert into buyers. However, it's unwise to discount potential customers who didn't make a purchase right away. You've already invested time and resources into drawing them in, so why not continue engaging with them? It's entirely possible that they'll be interested in trying your product in the near future.

To nurture customer relationships, marketing teams should collaborate with sales departments. This way, your company can comprehensively influence potential customers. Maintain communication through email campaigns, extend holiday greetings, and make personalized offers to stay engaged with them.
## Summary

As you've gathered, successful businesses engage with every stage of the sales funnel. Significant results are achieved by those who strike a balance between lead generation and demand creation. This approach ensures that the company's influence touches all leads, from the beginning to the end of the funnel.

In this article, we've outlined general steps for crafting a demand generation strategy. Since each business is unique, adapt these recommendations to fit your goals and objectives.


Successful businesses balance lead generation and demand creation across the sales funnel, achieving comprehensive influence from start to finish.

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Discover how thriving enterprises strategically navigate the sales funnel, achieving remarkable outcomes through a delicate dance between lead generation and demand creation.


2023 Business Roadmap: Strategies for Growth & Success

2023 Business Roadmap: Thrive and Succeed

<Img
img="/uploads/programmy_loyalnosti_ad78c49ba6.png"
alt="Exploring Loyalty Program Options: Examples & Cases"
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75% of customers choose companies that [**offer them bonuses**](https://www.zippia.com/advice/customer-loyalty-statistics/#:~:text=Customer%20Loyalty%20Statistics%20by%20Consumer%20Opinions&text=56%25%20of%20customers%20will%20stay,for%20a%20better%20loyalty%20program.). Additionally, 43% of the audience spends more money on brands to which they are loyal. Therefore, developing a loyalty program is a crucial aspect of marketing in various businesses. Retailers, marketplaces, cafes, restaurants, airlines, online services, and more build relationships with their audience through bonuses and other privileges.


Discounts, points accumulation, and cashback are offered to customers to motivate them to stay with the brand longer and make repeat purchases. A well-designed loyalty program also involves personalized offers, increasing the chances of conversion. 
In this article, we will discuss the various types of customer loyalty programs and provide examples from well-known brands.
## What is a loyalty program


Loyalty programs are a set of marketing methods designed to retain brand customers and motivate repeat purchases. They are used to build strong relationships with the audience, attract new customers, increase conversion rates, and average transaction value.


A well-developed loyalty system is also necessary for [**personalizing offers**](https://altcraft.com/glossary/personalization-what-it-is-and-why-personalized-marketing-matters) to customers. This approach sets the company apart from competitors, especially if the program is unique and easy to understand.


The development of a marketing strategy should include customer loyalty programs as a crucial element. These programs strengthen the brand, cultivate a fan base, and create repeat customers. To join the bonus system, individuals need to register by providing their last name, first name, phone number, email, date of birth, and so on. Participants are issued a physical or virtual card.


## Types of loyalty programs


The essence of [**a loyalty program**](https://altcraft.com/blog/customer-loyalty-program) is to provide significant benefits to the customer. This is accomplished through various methods that depend on the business's objectives and capabilities.


What types of customer loyalty programs exist:


<Table>
| Type | Description |
| ------ | ------ |
| Discount programs | The customer receives a card with a fixed or cumulative discount. |
| Points-based programs | After a purchase, the user gains the opportunity to accumulate points (bonuses). The mechanics vary; often, one bonus equals one unit of currency, but there can be other combinations. Additionally, the brand determines the percentage of the total bill that can be paid using these accumulated points. |
| Cashback programs | Returning a portion of the money from a purchase back to the customer. Brands provide cashback to the user's account, which can be used for other purchases within the same company. In the case of banks, cashback can be used for any goods and services. |
| Promo codes | The customer receives a promo code via email after fulfilling the loyalty program's conditions. Typically, this requires spending a specific amount or making a repeat purchase within a designated timeframe. |
| Tiered programs | The more a customer purchases, the higher their status becomes. Each new level represents an increase in discount, new privileges, and so forth. |
| Partner programs | Several brands create joint loyalty programs. For instance, bonuses are accumulated in the online store of Company A but can be spent at the cafes of Company B. There's also an umbrella program where services under one brand are unified into a single loyalty system. |
</Table>




[**Loyalty enhancement programs**](https://altcraft.com/en/features/loyalty-programs) are categorized as either closed or open. To join an open bonus system, one simply needs to register and provide their information. For a closed system, a condition must be fulfilled, such as being invited by a current member or making a payment (either a one-time purchase of a loyalty card or a monthly fee). In return for this, individuals are granted additional benefits, like access to exclusive sales, free shipping, and more.


## Loyalty programs: examples from brands

### Alaska Airlines: Mileage Plan


Alaska Airlines' loyalty program, known as Mileage Plan, is a well-regarded program in the airline industry. It offers travelers a range of benefits and rewards, including earning miles based on the distance flown rather than just the ticket price. This unique approach allows passengers to accumulate miles more efficiently, leading to various perks such as free flights, seat upgrades, and access to partner airline services. Mileage Plan's partnership with a diverse array of airlines and businesses expands its attractiveness, making it a compelling option for frequent flyers seeking value and flexibility.




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### Uber Rewards

Uber Rewards is Uber's loyalty program designed to provide added value to its frequent riders. By accumulating points through eligible rides and Uber Eats orders, users can unlock different membership tiers – Blue, Gold, Platinum, and Diamond – each offering escalating benefits such as priority support, flexible cancellations, and even price protection on certain routes. This program aims to foster customer loyalty and incentivize riders to continue using Uber's services, while also enhancing the overall user experience through exclusive perks and rewards.


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### Expedia Rewards

Expedia Rewards is a loyalty program tailored for travelers who frequently use Expedia for booking flights, hotels, and other travel services. With each booking, members earn points that can be redeemed for discounts on future travel reservations or other eligible purchases. The program offers three membership tiers – Blue, Silver, and Gold – each with escalating benefits like access to exclusive deals, bonus points, and potentially even free upgrades. Expedia Rewards aims to enhance customer engagement and encourage repeat bookings by offering tangible rewards and personalized travel experiences.



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### Ben & Jerry’s: Flavor Fanatics

The Flavor Fanatics reward program by Ben & Jerry's is designed to delight ice cream enthusiasts and foster brand loyalty. This program allows customers to earn points for every purchase, which can then be redeemed for free scoops, merchandise, or even exclusive event invitations. By catering to their customers' love for their products, Ben & Jerry's creates a sense of community and engagement, encouraging fans to not only enjoy their ice cream but also participate in a rewarding experience that goes beyond the treat itself.

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img="/uploads/image4_879ac3681e.png"
alt="Flavor Fanatics reward program by Ben & Jerry's"
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### The North Face: XPLR Pass


The North Face's XPLR Pass is a loyalty program tailored for outdoor enthusiasts. By signing up for XPLR Pass, customers gain access to a variety of benefits such as exclusive discounts, early product releases, and invitations to special events. The program emphasizes engagement with the brand's outdoor ethos, encouraging members to participate in challenges and activities to earn points that can be redeemed for rewards. XPLR Pass not only fosters customer loyalty but also aligns with The North Face's adventurous spirit, creating a strong sense of community among outdoor enthusiasts.


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### Designer Shoe Warehouse: DSW VIP

DSW VIP is Designer Shoe Warehouse's loyalty program designed to cater to shoe and fashion enthusiasts. Members of the DSW VIP program enjoy various benefits such as earning points with every purchase, receiving birthday rewards, and gaining access to exclusive sales and events. The tiered structure of the program allows members to progress from Gold to Elite status, unlocking increasing levels of perks and rewards. By offering a personalized shopping experience and attractive incentives, DSW VIP encourages customer loyalty and keeps shoe lovers engaged with the brand.


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### The Body Shop: Love Your Body Club

The Love Your Body Club by The Body Shop is a loyalty program tailored for skincare and beauty lovers. Members of the Love Your Body Club enjoy numerous benefits, including earning points with every purchase, receiving a birthday gift, and gaining access to exclusive promotions and events. The program's focus on ethical and sustainable practices aligns with The Body Shop's brand values, resonating with conscious consumers. By offering rewards that align with their commitment to cruelty-free and environmentally-friendly products, the Love Your Body Club fosters brand loyalty while also encouraging positive shopping choices.




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### Hugo Boss Experience

Hugo Boss Experience is a loyalty program crafted for fashion enthusiasts who appreciate the brand's high-quality offerings. Members of the program receive exclusive benefits such as personalized styling advice, early access to collections, and invitations to VIP events. The program's emphasis on providing a tailored and elevated shopping experience resonates with Hugo Boss's premium image. By offering unique perks that cater to their discerning customers, the Hugo Boss Experience program aims to strengthen customer loyalty and maintain a strong connection with their fashion-savvy audience.




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### Lancôme Elite Rewards

Lancôme Elite Rewards is a loyalty program designed to engage beauty enthusiasts who value luxury skincare and cosmetics. Members of the program are treated to a range of exclusive benefits, including earning points on purchases, receiving personalized beauty consultations, and gaining access to limited edition products. The program's focus on personalized skincare advice and premium rewards aligns with Lancôme's commitment to enhancing their customers' beauty routines. By offering tailored experiences and coveted rewards, Lancôme Elite Rewards aims to foster brand loyalty and provide an elevated beauty shopping experience.




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### IKEA Family

IKEA Family is a loyalty program tailored for home and furnishing enthusiasts who frequent IKEA stores. Members of the IKEA Family program enjoy a variety of benefits, including special discounts, product offers, and even free coffee during store visits. The program's emphasis on providing value and savings aligns with IKEA's affordability and practicality-focused brand image. By offering perks that resonate with their target audience, the IKEA Family program aims to build customer loyalty and enhance the overall shopping experience for those seeking stylish yet budget-friendly home solutions.


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## Summary


Loyalty programs are a set of marketing tools that retain customers, motivate repeat purchases, and establish ongoing communication with [**the target audience**](https://altcraft.com/glossary/target-audience-why-to-define-it-how-to-classify-and-segment-it). Within the context of loyalty systems, users are granted bonuses, cashback, provided with consistent or temporary discounts, and sent promotional codes. Customers use these benefits for new orders from the brand or at other locations as stipulated by the program, while the company collaborates with partners.


Brand loyalty systems can be either open (available to all and free) or closed, where entry is possible only through payment or upon fulfilling certain conditions.


Loyalty programs are marketing strategies for encouraging repeat purchases by offering discounts, rewards, and exclusive perks based on customer engagement.

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Discover how businesses are weaving a tapestry of rewards and discounts to keep clients coming back for more. Unveil the strategies behind building lasting connections with brands.

Exploring Loyalty Program Options: Examples & Cases

Exploring Loyalty Program Options: Captivating Cases

<Img
img="/uploads/alfa_Figures_50eea3c0a9.png"
alt="AlfaStrakhovanie: Increasement of Profit by 714% in 4 Years"
/>

AlfaStrakhovanie is the largest private insurance company in Russia, offering a wide range of insurance programs for individuals and corporate clients.

Since 2019, the company has been engaged in marketing communication automation through the Altcraft Platform. In the first year, the marketing team achieved excellent results, with a 42% increase in CRM marketing profits. We discussed how they achieved these results [**in this article**](https://altcraft.com/blog/case-how-altcraft-platform-helped-top-insurance-company-increase-sales).

Currently serving over 30 million customers, utilizing 15 communication channels, and processing data from 80 repositories, AlfaStrakhovanie has successfully adapted Altcraft Platform to its scale, automating customer communication and freeing up time for the development and implementation of new strategies. Learn how AlfaStrakhovanie enhances customer communication with the help of the Altcraft Platform.

Currently, AlfaStrakhovanie serves over 30 million customers, utilizing around 15 communication channels and processing data from 80 repositories. Their Customer Journey Map (CJM) consists of 200 touchpoints. Altcraft Platform has successfully adapted to such a scale, enabling the specialists at AlfaStrakhovanie [**to automate customer communication**](https://altcraft.com/blog/marketing-automation-for-insurance-companies) and free up time for the development and implementation of new strategies. 

We share how AlfaStrakhovanie improves customer communication using the Altcraft Platform.

<Img
img="/uploads/Profit_of_Alfa_Strakhovanie_from_CRM_marketing_min_0be7547221.png"
alt="Profit of AlfaInsurance from CRM marketing (comparing with 2018)"
/>

## Why they chose Altcraft Platform

**1. The ability to work in tandem with the internal CDI system without data transmission to cloud services.**  A key priority for insurance companies is customer data security. Altcraft, as one of the few providers in the domestic market, offered an On-premises solution, allowing AlfaStrakhovanie to have full control over their data by deploying the software within their own infrastructure.
 <p>

**2. The capability to gather all data in one place and manage marketing processes in a unified interface.** Within Altcraft Platform's Customer Data Platform (CDP), a unified profile is created for each client based on their personal and behavioral data. This enables a better understanding of customers and facilitates more personalized communication.
 <p>

**3. Сustomization functionality.** Altcraft Platform also provides additional communication channels with clients. The willingness of the Altcraft team to tailor the platform to meet customer requirements played a crucial role in the decision-making process.

## Tasks and results

The customer journey in AlfaStrakhovanie consists of over 200 touchpoints. By configuring scenarios and trigger campaigns in the platform, the company automated customer interactions at each of these touchpoints. Let's discuss the tasks it solved.

### Task 1: Customer retention and increasing repeat sales

Retaining existing customers is a less costly endeavor compared to acquiring new ones. Therefore, a significant portion of marketing communications in AlfaStrakhovanie is focused on addressing this task.

Currently, over 500 triggers are active, with thousands of message variations across various communication channels. Among the implemented mechanisms are:

- **Abandoned calculator.** If a customer starts entering data into the insurance cost calculator but fails to complete the action, the system automatically sends them a reminder with an offer to finish the calculation.

- **Bonus accrual.** After successfully completing a transaction, customers are awarded bonus points. The company then sends them an email notifying them about the accrued points. The email includes an individualized link to other insurance services that may be of interest to the customer.

- **Customer reactivation.** If a customer has not made repeat purchases for an extended period, the company sends them an email with a link to a personalized survey. The survey aims to identify the reasons why the customer is not interested in renewing the service. After completing the survey, the user receives a discount on their next purchase.

**Policy renewal**

For effective policy renewal, the company actively engages with the customer at every stage. The following triggers are used:

**1. 30-Day policy expiration reminder.** One month before the insurance policy expires, the customer receives an email offering the option to renew the service.

**2. Policy expired notification.** On the day the policy becomes invalid, the company sends a notification to the customer.

**3. Abandoned payment.** If a customer starts the policy purchase process but does not complete the transaction, they receive a reminder email.

Each trigger sends a message with an individualized link. When clicked, the customer is redirected to a page where they can quickly renew the service. From the customer's perspective, this simplifies the renewal process. Additionally, timely reminders minimize the risk of missing the deadline and being left without coverage. From the company's standpoint, these triggers increase the likelihood of a successful transaction.

**Cross-Selling**

AlfaStrakhovanie offers 35 primary products and over 50 additional ones. With such a wide range of options, [**cross-selling**](https://altcraft.com/blog/what-is-cross-selling) becomes one of the most effective tools for increasing repeat sales.

However, it is important to offer products that genuinely interest the customer when implementing this strategy. For example, if a person purchases mandatory motor insurance (MTPL), they can be offered comprehensive motor insurance (CASCO). And if they have obtained "Insurance for traveling abroad," they might find "Green Card" service useful.

AlfaStrakhovanie creates a list of relevant products within its internal CDI system, utilizing machine learning. Based on the user's previous actions, ML algorithms generate the best recommendations from the available options.

To timely deliver such an offer, a scenario is set up in the Altcraft platform. After the customer completes the insurance service purchase, they are awarded points and receive an email. Three days later, the platform checks which specific product the customer has purchased. The CDI system gathers relevant additional offers and transfers the data to the platform. Based on this data, a template is generated, and an email with a list of recommendations is sent to the customer. Subsequently, the platform tracks the customer's actions after receiving the email and transfers the data for processing in the CDI system. 

<Img
img="/uploads/alfa_Cross_selling_76ee17bf66.png"
alt="Cross-selling"
/>

Policy renewal, abandoned calculator, cross-selling, and customer reactivation — all these mechanisms are automated and continuously work to retain customers and stimulate repeat sales. As a result, in 2022, the level of repeat sales increased by 98%.

### Task 2: Increasing subscriber engagement

When it comes to email marketing, the level of subscriber engagement reflects how actively subscribers interact with the emails. Metrics such as open rates, click-through rates, and conversions are important indicators to consider.

Personalization is a key factor in driving customer engagement, and AlfaStrakhovanie has always excelled in this aspect. As previously mentioned, Altcraft Platform has been working in tandem with the company's internal CDI system from the beginning. All emails in the platform are generated based on data from this system. Let's explain how it works.

The CDI system segments users into micro-segments for each touchpoint based on various parameters: active products, customer interactions, insurance claims, website calculation stages, psychographics, and more. Personalized links and datasets are generated based on this segmentation and later transmitted to the platform. The platform performs additional customer load segmentation and triggers activation. As a result, customers receive the best offer from over 1 billion possible combinations. The average click-through rate (CTR) for such messages is 39%.

However, the company didn't stop at personalized email campaigns. The next step was to increase email open rates. Two different techniques were used for transactional notifications and promotional mailings.

**Transactional messages** contain important information, so it is crucial to ensure that the customer receives them. A [**cascade mailing**](https://altcraft.com/blog/cascade-campaigns) approach became an obvious solution, and the AlfaStrakhovanie team implemented the following scenario:

<Img
img="/uploads/alfa_Cascade_campaign_50db3a57f5.png"
alt="Cascade mailing"
/>

The message is sequentially sent to various channels. If the recipient does not open the message in one channel, the platform sends the same message to another channel. This process goes from the cheapest channel to the most expensive one. If the message still doesn't reach the recipient, a specialist from the call center will contact them.

By using cascading distribution, marketers have achieved almost 100% message open rate. 

To increase the open rate of **promotional campaigns**, marketers have employed a new ML module in the Altcraft Platform called [**"Best Send Time."**](https://altcraft.com/blog/altcraft-platform-updates-machine-learning-new-reports-whatsapp) Machine learning algorithms analyze the history of message openings in campaigns and determine the day of the week and hour when a specific profile is most likely to read the message. Therefore, each subscriber receives the email at the optimal time for them.

As you can see, conservatism is not characteristic of AlfaStrakhovanie marketers. They are always ready to embrace new technologies in their strategies, which is why their subscribers have long been receiving [**AMP emails**](https://altcraft.com/blog/amp-emails-what-they-are-their-types-why-required). The level of interaction with such emails is much higher than with regular HTML versions.

### Task 3: Attracting new clients 

To find new clients, the company expanded its coverage by setting up new communication channels - Telegram Group and Telegram Bot.

Through Telegram Group, AlfaStrakhovanie's specialists automated the posting of posts in its official channel. There they report on important news and share useful tips in the insurance industry. 

The main task of the channel is to increase brand recognition and gain the trust of potential clients. 

As for Telegram Bot, it performs the function of a support service. Here, messages are sent directly to the user, but they should first start a dialog with the bot. After that, their data gets into Altcraft's database for further communications. 

In addition, lead generation takes place through omnichannel scenarios in the platform. Through API requests, contacts of potential customers are transferred to agents, brokers and the call center. At the same time, the collected data allows for the automatic creation of a personalized script for each lead.

## Conclusion

The company "AlfaStrakhovanie" has been automating marketing communications with customers through the Altcraft Platform for over four years. The collaboration can be considered successful as the profit from CRM marketing consistently increases year after year. In 2022, it grew by 98%, marking a 44% increase compared to 2021.

How the insurance company AlfaStrakhovanie increased the level of repeat sales and subscriber engagement using the Altcraft Platform.

medium_AlfaStrakhovanie case study 2023.png

small_AlfaStrakhovanie case study 2023.png

thumbnail_AlfaStrakhovanie case study 2023.png

AlfaStrakhovanie case study 2023.png

Read how the insurance company increased repeat sales and subscriber engagement through marketing automation.

AlfaStrakhovanie: Increasement of Profit by 714% in 4 Years

How AlfaStrakhovanie Group Increased CRM Marketing Profit by 714% in 4 Years

<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

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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>
<GalleryItem
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"
thumbnail="/uploads/gamification_subway_2_da85741866.png"
description=""
/>
<GalleryItem
original="/uploads/out1_2_f43d3dbd87.gif"
thumbnail="/uploads/out1_2_f43d3dbd87.gif"
description=""
/>
</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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thumbnail_gejmifikaciya_v_marketinge_d50cd0e664.png

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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.

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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.

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

<Gallery>
<GalleryItem
original="/uploads/cross_selling_bundle_1_bc6f548de8.png"
thumbnail="/uploads/cross_selling_bundle_1_bc6f548de8.png"
/>
<GalleryItem
original="/uploads/cross_selling_bundle_2_2_8f465daa89.png"
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.

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

Customer Data Platform

Omnichannel Marketing

Loyalty programs

Drag-and-drop email designer

Personalized mailings

MVT and A/B testing

Real-time analytics

Integration and WebHooks

Forms and Surveys

Messaging apps

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