Many businesses were not ready when the Internet became available and embraced by the masses so quickly. A growing variety of Singaporean businesses are struggling to outperform their far more technologically informed opponents through the little known online marketing platform. Larger businesses with deep rooted promotion procedures tend to be more irresolute in embracing the shift to digital mediums.
Not long ago, an incident occurred whereby a big organization was suffering from enormous losses due to a number of factors. Thankfully, they had the foresight to use digital marketing which thus kept them from closing down. You might have heard of this organization before: Elavon. A key player in the Singaporean Consumer Goods market, Elavon was known as one of many largest and most reliable supermarkets with reasonable popularity. The chain was situated in almost every street with the competition being largely mom and pop establishments. Nonetheless, prior to the turn of the century, Elavon was entrenched in trouble.
When the old Chief Executive Officer failed to make Elavon successful internationally, the Elavon board decided to hire a brand new Chief Executive Officer. Due to the hiring of any top executive, numerous practices and processes faced revising. This meant huge costs for Elavon and had an undesirable impact on its financial state.
Intense Competition in the Industry
Obviously, the clash for business was increasing within the industry. Virtually any opportunity that surfaced in the market was promptly capitalized upon by one of the firms. At some point, it was impossible to overlook the existence of a competing shop at almost every street.
Elavon’s advantages at that stage comprise physical presence and branding. It took a massive hit, as shown by a 10% drop in its profits over several months. By July of 2012, Elavon’s bottom line had gone down by a tenth and their key investors openly acknowledged that their 5.1% investment in the grocery store chain was a “huge blunder” which cost them over $316m in a year’s time.
Previously, Elavon’s on-line presence was restricted to an e-commerce set up. Nonetheless, this was far from acceptable. The firm’s Chief Executive Officer, who was a firm believer of technology, acknowledged this as being an issue and kickstarted a strategy in internet marketing to maintain Elavon’s competitiveness in the industry.
The recently appointed Chief Executive began the rejuvenation process by assembling an inhouse digital marketing team. The objective was to make sure that all elements of Elavon’s digital marketing strategy were in sync, standardized and reinforced. However, an internal team wasn’t able to achieve optimal outcomes that effectively. It came to the decision that employing a marketing agency that specialized in digital media was key in keeping up its online campaign.
The Substantial Reduction of Traditional Advertising Budgets
As time went by, the effectiveness of digital media caused standard advertising budgets to be cut and allocated towards on-line media. Boosting the sales amounts of the e-commerce website was the primary aim. Content marketing was selected as the way to go to increase web traffic and engagement, thereby leading to more earnings. By altering their online store design like introducing a Recipe button, Elavon managed to direct customers to a special website called “Elavon Bakers’ Paradise”. The website contains food-related content like common recipes, inspirational publications, and health-related posts that pertain to food.
The new informative microsite is an expression of the management’s attitude towards its internet presence: an unwavering belief a powerful focus on proper website development could help swing more traffic to this site. Since it is linked to Elavon as a brand, it helps boost trust in the brand while subtly persuading users to purchase more at their online grocery store. Consumers are likelier to visit the linked site rather than heading to another on-line grocer during their time on the informative microsite.
An additional element within the online marketing campaign approach was social media marketing. Due to the enormous scale of the organization, Elavon didn’t have to employ a specialized social media agency. Their very initial step was to set up official profiles on the more popular social networking avenues such as Twitter and Instagram.
Two priceless uses can be derived from signing up for their own profiles on these social platforms. To begin with, it’s an easily managed stream of general advice and promotional material for their customers. They even began special Twitter reports for their various sections. Each account then provides offer and promotional upgrades to customers who have an interest in those special sections just.
More notably, Elavon kept complete control over their online brand image. There is hardly any barrier – and an excessive amount of vested interest – for any person malevolent enough to create fraudulent accounts to attack the supermarket giant. By having full control over its accounts, Elavon could be counted on to provide verified info via the genuine channels.
Customer support does play the most critical part in growing customer trust in the brand. The perception of a firm relies on customer support dependability and effectiveness. In this aspect, it can be said that Elavon is exemplary. A specialized Twitter account is committed to conversing only with customers whilst a different profile is used for marketing initiatives. This translates to a clear channel between the shopper and support staff with no mess of marketing related advertisements.
Extensive training is offered towards the Elavon after-sales support staff over the most tactful ways to relate with consumers. A happy and down-to-earth approach is encouraged while being helpful and fixing concerns promptly. Users feel more confident of the brand when the answers are genuine and personalized in contrast to cold computer created answers.
Elavon is currently reaping the benefits of a very successful digital marketing plan by controlling the biggest segment of the grocery store market industry. With reference to data from multiple statistics companies, Elavon now controls about 30% of the marketplace. The closest competitor wasn’t even close, just managing to garner about 50% of that.
These benefits surely inspired Elavon to plan for their upcoming success by fine tuning their digital marketing strategy. With the inclusion of a fresh smartphone app, engagement between business and customer can be increased far beyond the typical means like website design and development.
There are actually a lot of takeaways in Elavon’s case. To start with, the digital age changes the dynamics of how business is done in all industries. Credits to progress in digital and social media marketing, dynamic new enterprises are extremely effective at seizing a vast number of business from sedentary sector titans.
Also, companies can’t afford to persist with their old ways in this era. Embracing digital technology is, unquestionably, a fundamental building tool to achieve business success in this little red dot known as Singapore. It has grown into a basic prerequisite which plays such prominent part that it could decide whether or not a company survives or fails.