In the dynamic world of digital marketing, 2024 marks a shift towards harnessing AI data to broaden customer reach and pinpoint accurate traffic. Marketers are steering through the intricacies of the conventional marketing funnel, with a growing focus on a data-centric approach that leverages AI to refine customer targeting and engagement.
This exploration delves into the subtleties of customer behavior, the pivotal role of exposure in the marketing funnel, and the customized strategies for B2B and B2C entities.
I aim to explore the essential role of SEO and email marketing in B2B settings, the influence of influencers and ads in B2C contexts, and the rising significance of AI in a world without cookies. Below are my assumptions to unveil the secret to unlocking valuable traffic and enhancing conversion rates in the ever-changing e-commerce marketing landscape.
The Essence of Customer Behavior: The Marketing Funnel
The classic marketing funnel (Exposure, Discovery, Consideration, Conversion, Retention, Returning Customers) relies heavily on effective exposure to make products visible to consumers, sparking discovery and consideration before leading to conversion.
While “exposure” is often deemed the most crucial stage, it’s just the beginning. In the realm of e-commerce marketing, which includes Traffic Acquisition, Conversion, and Retention, the journey extends beyond mere exposure to encompass exposure, discovery (interest), and consideration (evaluation).
Compared to the later AISAS behavior model (Attention, Interest, Search, Action, Share) based on “internet behavior” or the 5A customer experience (Aware, Appeal, Ask, Act, Advocate) by marketing guru Philip Kotler, the principle remains the same.
| Funnel | Exposure | Discovery | Consideration | Conversion | Retention | Returning Customers |
|---|---|---|---|---|---|---|
| AISAS | Attention | Interest | Search | Action | Share | Retargeting |
| 5A | Aware | Appeal | Ask | Act | Advocate | Retargeting |
“Exposure” is about making potential consumers “Attention” and “Aware” of who you are and what you sell.
However, when we compare it to the three pillars of e-commerce marketing: Traffic Acquisition, Conversion, and Retention, I find that traffic acquisition actually incorporates 3 steps:
- The first step of “Attention and Aware“, which is the Exposure stage.
- The second step of “Interest and Appeal“, which is the Discovery stage.
- The third step of “Search and Ask“, which is the Consideration stage.
The rise of Content Marketing, KOL Marketing, Customer Testimonials and Reviews is a testament to the evolving landscape, where the goal is not just conversion but fostering lasting customer relationships. Both B2B and B2C sectors employ distinct approaches to traffic acquisition and marketing.
For B2B and B2C companies, there are different traffic acquisition marketing techniques.
B2B Customer Source: Utilizing SEO and Email
In the B2B realm, clarity in customer needs is paramount, be it cloud services, rentals, or procurement. The focus is on making services visible on SERPs, with the top three Google results often being the go-to for users. Marketers invest in SEO to match search intent and optimize website architecture for a better user experience. Email marketing, or EDM, plays a crucial role in maintaining relationships, guiding purchases, and enhancing customer loyalty.
B2C Customer Source: Mastering Influencers and Advertising
B2C consumers, driven by both explicit and latent needs, require a different approach. Marketers need to awaken dormant shopping desires, with influencer marketing and targeted advertising being key strategies. For example, a customer’s journey from seeing an ad for anti-dandruff shampoo to making a purchase influenced by an influencer’s review highlights the power of integrated marketing approaches.
AI in a Cookie-less World: A New Frontier?
However, with the enhancement of privacy policies and the phase-out of third-party cookies, the setting of advertising interest audiences has become increasingly vague. If human data is restricted (third-party cookies), why not combine it with “object data” (the intent context of a product being purchased) and let AI objectively state the feature conditions as the basis for e-commerce marketing?
In B2B
Integrating AI product tags with SEO and advertising strategies can enhance marketing effectiveness. In SEO, the data from tag interactions reveals consumer interest in various product categories, styles, and functions, and can help identify sales trends to discover hidden market opportunities. These insights can inform content marketing strategies.
In B2C
In advertising, product tags and category pages can be utilized in conjunction with Google and Meta advertising tactics, leveraging category page traffic for customized ads and targeted audiences, or using these pages as landing sites. Precise targeting can significantly boost click-through rates and improve conversion rates, ensuring every visitor is of high value.
Assumption
According to the steadfast equation of “e-commerce revenue = traffic x conversion rate x customer order value,” modern e-commerce marketing strategies must move beyond simply increasing traffic and costs. Instead, they should focus on identifying the appropriate customer base, steering clear of unfocused targeting, and simultaneously boosting website traffic and conversion rates.
By using AI product tags, websites can offer product recommendations that align with consumer intent, prompting an increase in purchase volume and customer order value. This approach shortens the search phase in the “marketing funnel” and expedites the decision-making process for purchases.
Conclusion
In conclusion, the integration of AI data and technology into digital marketing strategies, particularly in the realms of SEO and advertising, presents a transformative opportunity for both B2B and B2C sectors. By leveraging AI product tags and data-driven insights, businesses can achieve more precise targeting, enhanced customer engagement, and ultimately, higher conversion rates.
This approach not only optimizes the marketing funnel but also aligns with the evolving landscape of a cookie-less world, ensuring that marketing efforts are both effective and privacy-compliant. As we move forward, the ability to adapt and embrace these AI-driven strategies will be crucial for businesses looking to thrive in the competitive e-commerce environment.
Pingback: AI and Its Impact on SEO – Steven Hsu