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Education Programs Director

Thiago de Carvalho

With Master em education, from New York University, is a specialist in corporate education.

Five Strategies for Success in 2021

written by Gustavo Bacchin, Co-Founder & COO, Cadastra


It is often said that necessity is the mother of invention. When a new development emerges and changes the context of our lives, human ingenuity rises to meet the challenge. 

When automobiles became attainable and commonplace, necessity invented traffic lights. When steel became easy to produce and skyscrapers could be constructed, necessity invented the elevator. And so when 2020 brought us a global pandemic – it was no surprise to see invention and innovation flourish once more. 

The impact of COVID-19 saw brands, retailers and businesses of all shapes and sizes accelerate their digital capabilities rapidly – with many progressing what would have been a five year journey in the space of a few months.  

But now this rapid leap forward has occurred, what will cut through in 2021? Here we take a look at the five trends we expect to dominate 2021 – and how businesses can take advantage of them.

Higher and more sophisticated consumer expectations

 

Consumers are forcing businesses to innovate. As physical stores closed, it pushed shoppers to digital channels. Google search data shows that since the beginning of March, search interest in online shopping and how to buy online has grown by 2X worldwide. 

This experience has matured us as digital consumers. Shoppers now expect brands to be able to provide what they are looking for online instantly – and provide a seamless experience too. 

Increasingly we are seeing consumers turn to digital channels for services and products that would typically be reserved for physical experiences – Google Trends shows sizeable increases in searches for ‘virtual try on’, ‘online classes’, ‘virtual pub quiz’, ‘customer service live chat’ and ‘virtual gym’. These are new experiences for both buyers and sellers – so as we move into 2021 there is a significant opportunity for brands to own and define these digital experiences. 

These new consumer habits are here to stay, and so businesses need to ensure they are taking advantage of all the features modern advertising platforms have to offer. Consumers are expecting to find what they are looking for instantly – and so advertising strategy needs to be highly tailored and relevant. 

This is where the ROI lies for brands. It is not enough to just do the broad strokes and cover basic SEO, PPC, Social Media or Email Marketing – you need to extract the best of what each channel and format has to offer, intelligently leverage data and deliver personalised messages that reach consumers in the right place, at the right time, with the right offer. Consumers expect no less.

Look beyond Digital Transformation

 

Digital transformation can take many forms. Just as COVID accelerated the transformation process for businesses – it also accelerated the transformation for consumers. Shoppers who may have only ever purchased through physical stores were forced to get the necessary tech – or develop the user skills – to enter the world of ecommerce. 

But it’s important to remember digital transformation isn’t about technology – it’s about convenience. In 2021 it’s critical to find creative ways to provide convenience. Can you offer a subscription model? Can you offer free trials to allow customers to test your products? Can you offer a delivery service with more slots and options? Businesses need to constantly ask: how can I change my proposition to improve the experience? 

The key to improving the customer experience lies in the data. At Cadastra we help our clients gather data from a comprehensive array of sources and different interaction points along a customer’s journey. From this data you can build intelligent audience segments – and craft a personalised experience for users depending on their individual needs. 

Proliferation of channels, more is more?

 

A trend that will certainly continue as time marches on is the proliferation of channels. 

Digital is fragmenting the media landscape constantly – and in 2020 we saw another powerhouse channel emerge in TikTok. The short form video app now has over 800 million users, and so it is no surprise that advertisers are scrambling to find ways to leverage the platform. 

There are certainly exciting new opportunities for brands here. TikTok recently partnered with Shopify to enable social commerce – whilst in China there is a huge surge towards live commerce on similar platforms, where influential users operate ‘QVC style’ live streams. 

According to iResearch, by the time the quarantine restrictions began loosening and offline retail started reopening at the end of March, the number of Chinese consumers watching e-commerce live streams had reached 265 million, or 29.3% of the country’s total internet users. In one day alone, Alibaba’s two top-performing live streaming influencers, Austin Li and Viya, generated over $149.4 million in non-refundable pre-sales deposits.

Clearly, there is a significant opportunity to engage audiences through these new channels as they emerge. However, you shouldn’t just jump on the bandwagon because it is shiny and new; it has to be where your customers are. Do not dismiss your current customers chasing new customers on new channels – if your customers are still on, let’s say, Facebook, then you must be too.

A Multichannel strategy that drives growth

 

Multichannel is not about reaching a customer across as many channels as possible. It’s about understanding where your consumer is, and crafting an experience based on who they are, what they are using, and what they want. 

It comes back to intelligent data use. If a customer lands on your website and doesn’t purchase, but then returns on an app – you need to engage with them in a different way. You aren’t meeting them for the first time and the experience needs to reflect this.

Multichannel is not complex. It’s just a matter of connecting the dots and offering a tailored experience. The challenge is integrating the data – how can you effectively connect your data and use it to empower decision making?

A common opportunity we see with multichannel retail stems from the varying Customer Acquisition Costs (also known as CPA) and customer lifetime value (CLV). Cost and value will be different for physical channels, for Facebook or Amazon or Shopify, and vary from business to business. The challenge here is to find ways to migrate customers away from high acquisition cost channels, and move them to a combination of channels  which provide a better margin and which provide an opportunity to cross-sell or up-sell to the multichannel consumer.

Buying local – where context is key

 

Local commerce is booming – and this will continue next year. 

There are a number of factors driving this. Of course, we are all travelling less. But equally, there is a considerable desire from consumers to support local business – research from Google shows that in the UK 43% of consumers believed that local businesses are good for the economy, while 57% of people said that they were more likely to spend money at a business that offers locally produced products.

Another factor influencing this is how we use our smartphones. Consumers are looking for real-time information. “What store is closest? What is open? What has XX product near me? When is the quietest time to visit XX store?”. These habits pre-date COVID and are set to stick around. In 2019, Google data showed that mobile searches for “store open near me” increased by a colossal 250%. 

It’s essential for local brands and businesses to utilise the different channels and ad formats that enable you to reach your customers locally, and position your business as the answer to the most relevant queries. 

At Cadastra we help businesses use tools like Google LIA (Local Inventory Ads). Focused on mobile, LIA works as a Google-hosted page for your shop, called the local storefront. Customers can use the local shop front to view in-store inventory, see opening times, find directions – while empowering retailers to monitor and tailor the impact of digital ads on online and in-store sales. 

2020 is a year that will live in infamy – but it is a year which has undoubtedly sparked a massive acceleration of digital transformation all around the globe. The trends we have seen emerge this year are set to continue on their upwards trajectory as we move into a new year – and it’s crucial businesses of all sizes understand how to tap into these as they grow. 

Entre em contato

CEO

Thiago Bacchin

Founder and CEO, Thiago is one of the pioneers in performance marketing.

CEO EMEA

Gustavo Bacchin

Co-founder and CEO EMEA, he has 23 years of experience with digital marketing.

Do you know why your digital marketing is or isn’t working?

written by Gustavo Bacchin, Co-Founder & CEO EMEA, Cadastra

 

The proverbial saying ‘you are what you eat’ speaks to the notion that to be fit and healthy, you need to eat good food. The better and more balanced the diet, the better and more balanced the person.

But of course different people have different diets for different goals. Want to gain muscle? Add in some protein. Want to reduce your environmental impact? Go vegan. Need to fend off scurvy whilst on a long naval voyage? Invest in citrus.

The input directly affects the output. To understand what the right diet is for you, you need to understand what you want your outcomes to be. Because if you put garbage in, you will get garbage out.

The same is true of digital marketing. If you don’t keep track of your inputs, or measure the wrong data points, you will quickly lose sight of your desired outcome.

Everyone knows that measurement is important, but you can get lost with vanity metrics and limited attribution models – a topic for another article – and start making poor investment decisions at different points in your campaign goals.

This isn’t to say that you shouldn’t cover the full marketing funnel. But that you need to treat each stage of it separately and not use the same measurement for all parts of the funnel. You need to tackle each bit step by step and measure it correctly or you won’t even know if you are winning or losing.

So where to start? It’s simple, think about what you are trying to achieve, and really break down what you will need to put in.

Are you trying to grow your audience?

 

If you want to sell your product to more than just your existing customers, then you must focus on driving awareness and building your brand.

In traditional media this would mean TV ads that allow you to tell a story, and the same reasoning applies to digital media.

On Google you should be using their discovery ads, display ads and video ad formats, on Facebook and Instagram, sponsored posts and ads are the best formats. This is also an opportunity to use Pinterest, and where sponsored pins can help get your brand in front of people who are interested in the wider category.

And how do you know if these formats are working? Closely track viewability, impressions, video views and clicks. At this stage getting your brand in front of people is the most important thing, so drive topline engagement. Any clicks or deeper engagement from users should be viewed as a bonus and suggests they are moving further through the funnel.

Building engagement, knowledge and understanding about your product.

 

This is the consideration and engagement section of the customer journey. At this point you need to be prioritising channels and ad formats which are easy for the user to engage with, such as Google smart display, Amazon sponsored brands and Facebook and Instagram dynamic product ads (DPA).

This is where it is sensible to start measuring click-through rate (CTR) to see if people are engaging with your ads, as well as monitoring other metrics such as average time on site, average page views and if the rate of returning users of your website is increasing . These metrics all show how much a potential consumer is engaging with your content and website, that he is coming back for more, so demonstrate if your strategy is working.

Drives sales or another type of transaction?

 

You’ve made it to the most exciting part of the funnel: the conversion end.

Often there can be a real urge to skip forward to this point, or think that activity in the awareness part of the funnel will lead straight to conversion. Whilst the funnel isn’t as linear as it looks on paper, using the wrong channels and ad formats for your goals will always result in missing your targets.

So what channels and ad formats should you be using? This is the phase to leverage ads which drive a clear call to action and have a specific goal. These are PPC, Shopping on both Google and Bing, Amazon Sponsored Products, along with Facebook and Instagram DPA’s with a focus on Images and Carousels.

To measure if your marketing is driving sales, and is doing so effectively, brands must keep their finger on the pulse of conversion rate, average order value, the amount and growth of transactions, growth in overall revenue, cost per acquisition, cost per lead and customer acquisition cost. These are all important indicators of success.

Cross sell, upsell and build long term relationships with customers?

 

Much like a single workout or meal is never the end of a fitness plan, a sale is never the end of the process. Now it’s all about customer loyalty and growing the relationship. To do this, marketers need to focus on understanding their buying behaviour, patterns and profile in order to increase their CLV.

And whilst the tools to upsell and build loyalty are the same, success is measured in a different way. The click-through rate (CTR) becomes important once again as you look to re-engage the customer, balanced with the cost per click (CPC), growth in transactions and ultimately lifetime value (CLV) of the customer.

For brands and people alike, you are what you eat. To change your output you need to understand and closely track your input. If you are measuring the wrong metric and the wrong stage of the funnel, it is impossible to know if your strategy is working and if you are getting ROI from your budget. To keep your brand fit and healthy, you need to understand and control its diet.

Entre em contato

CEO

Thiago Bacchin

Founder and CEO, Thiago is one of the pioneers in performance marketing.

CEO EMEA

Gustavo Bacchin

Co-founder and CEO EMEA, he has 23 years of experience with digital marketing.

The New Agency Is Not An Agency

The world has gone digital, not just advertising. Within this process, a new way of thinking about the relationship of a brand with its consumers has emerged.

Technologies, processes, tools and methodologies has become not the end, but the means to an increasingly relevant and successful customer experience.

However, just a few companies are managing to mature in this new ecosystem by combining knowledge in marketing and data with a cutting-edge technological arsenal. The digital transformation process must focus on the consumer experience, guided by the consumer’s journey – and in practice, it’s harder than it looks.

With 20 years of experience, we are a global company specialized in performance that blends digital marketing services, consulting and technology.

In practice, we operate from brand’s digital or performance agency, to other digital transformation consulting partners, in addition to implementing technology projects such as e-commerce and martech plataforms.

Our model is structured in 5 business units: Business & Strategy, Digital Operations, Technology, Solutions and Education. We serve clients in more than 20 countries, promoting the digital transformation of our clients from end to end.

We invite you to learn about our services and methodologies, browsing our website or scheduling a coffee with us.

We’re looking forward to hearing more about you.

Teste

CEO

Thiago Bacchin

Founder and CEO, Thiago is one of the pioneers in performance marketing.

CEO EMEA

Gustavo Bacchin

Co-founder and CEO EMEA, he has 23 years of experience with digital marketing.