Interactive Marketing

Interactive Marketing

Interactive marketing is a one-to-one marketing process which is similar to initiating a conversation. In reaction to the activities of the customers, the marketing plan changes to meet their needs. Interactive marketing, also known as trigger-based or event-driven marketing, is a marketing technique which is based on a response to a change in consumer behavior or an event which influences the consumer’s response. Interactive marketing is more effective than traditional marketing because of its timing and relevance to the consumer.

Strategy

Interactive marketing involves search marketing, display advertising campaigns, and email marketing. Interactive marketing requires the ability to monitor customer behavior through a database, a real-time rules-based decision engine, a timely system for execution, and a system for reporting. In order to implement effective interactive marketing, several processes must be in place. First, you must identify triggers of change in consumer behavior. These ‘triggers’ can come from market research, data analysis, or staff brainstorming, but they are really important because these are the basis of tracking changes in consumer behavior and responding accordingly. Second, you have to determine marketing responses to each change in consumer behavior, which is no easy task.

Events

When an ‘event’ occurs, there is a measurable change in that individual’s circumstances which may influence their decision-making process. Traditional ‘triggers’ of consumer behavior changes include, transactional, recurring, behavioral, and threshold triggers. Transactional triggers include consumer’s purchases or sales inquiries, each of which may require follow-up communication. Recurring triggers are based on the consumer as an individual - their preferences and personal details. For example, a consumer’s birthday or date of purchase may serve as a recurring trigger. Behavioral triggers include purchasing powers and changes in consumer activity. Threshold triggers occur when a consumer reaches a spending limit or a maximum on any given good which would prevent them from exceeding over a limit and therefore they may defer those spending decisions until later or they may divert their efforts elsewhere. For each trigger, your company must have a response which will prompt the customer to stick with your company, despite their change in preference. Third, you have to have a way to measure success - an accountable reporting system or database is required, but a system for alerting you to unsuccessful programs is much more important.