Bank Windhoek - Digital Penetration Assessment & Prospective Digital Marketing Strategy

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Digital Penetration Assessment & Prospective Digital Marketing

Strategy Guide

2014

Author: C. E. GanasebClient: Bank Windhoek - Namibia

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Contents 1. Executive Summary Pg2

2. Traditional Integrated Marketing Mix Pg3

2.1. Overview 2.2. Elements

3. Digital Marketing Pg4

3.1. Overview 3.2. Elements 3.2.1. Websites 3.2.2. Mobile Web and Applications 3.2.3. Social Media 3.3. Competitor Analysis Pg5 3.3.1. Local Digital Landscape 3.3.1.1. Internet User Statistics 3.3.1.2. Successful Online Brands 3.3.1.3. Future Trends 3.3.2. Websites 3.3.2.1. Trac and Metric Analysis 3.3.2.2. Design 3.3.3. Mobile Web and Applications 3.3.3.1. Trac and Metric Analysis 3.3.3.2. Design 3.3.4. Social Media 3.3.4.1. Trac and Metric Analysis 3.3.4.2. Usage and Engagement

4. Prospective Digital Marketing Strategy Guide Pg10

5. Authors Note and Contact Details Pg11

6. Analytical Tools and References Pg12

Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 1

ExecutiveSummary

Executive Summary

With the advent of the internet and the resulting E-Commerce boom in the nineties, many forms of business have migrated to or have integrated electronic channels into their traditional daily operational practices and marketing communication mix. The digital landscape avails itself to be an invaluable tool in driving sales through online platforms by freeing the marketing of products and services from specic geographical limitations, and most recently by also aording businesses the ability to respond to consumer demand and preferences by staying abreast of the trends on social media networks.

Although many companies might have previously resisted electronic sales/transactions and digital marketing especially in Developing Countries due to the perceived lack of online data security and consumer access, these concerns have been addressed by the very technology in question. Considering the successes of various start-ups worldwide and the adoption of social media marketing by other local competitors, it has become blatantly clear that if any company wants to ensure and protect future growth, it is imperative that they plan for and invest in IT infrastructure.

This document reviews the traditional marketing mix, asserts the place for digital within the integrated marketing communications landscape and assesses the digital penetration of Bank Windhoeks retail banking competitors. Suggestions are also provided as to how the bank may out-perform its competitors on the social media platforms despite it being late majority player. A small emphasis is also placed on a digital marketing strategy guide.


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TraditionalIntegratedMarketing

Mix

Overview:

The marketing and communications departments task is to develop marketing activities and thereby create fully integrated marketing programs that can operate on a detached basis and also compliment the business other operational activities and practices. This should be executed such as to create, communicate, and deliver value for consumers, and thus increase the demand and subsequent sales of the products and services under consideration.

Elements:

All prospective marketing strategies inherently require many decisions about which value-enhancing marketing activities to employ. These decisions are based on the type of product or service, and crucially on which channels are being considered to reach and engage the customer. Marketing activities come in all forms, but the traditional depiction of marketing activities is in terms of the marketing mix. This marketing mix is dened as the set of marketing tools the business uses to pursue its marketing objectives. The marketing tools are further classied into four broad groups, commonly known as the four Ps of marketing: Product, Price, Place, and Promotion.

The specic marketing variables under each P are shown above, but it is important to understand that the marketing variables are not prescriptive and that the employment of a particular variable is uniquely dependent on actual marketing objectives. Traditionally, marketing mix decisions are made for inuencing the trade channels, however the advent of digital marketing has put a greater emphasis on people (consumers) and most contemporary marketers argue that a fth P, representing *People is required. This nal element captures the powerful community aspect that the digitally connected world creates by permitting experience personalisation, consumer to consumer selling, peer to peer sharing, and consumer-centric organisations which allow people to participate in and further bolster the business brand story.


PRODUCT

Product VarietyServicesQuality

FeaturesBrand Name

Design

PRICE

List PricesDiscounts

Interest RatesPayment Period

Credit Terms

PROMOTION

Sales PromotionAdvertising

Public RelationsCommunicationsDirect Marketing*Targeted Selling

PLACE

ChannelsCoverageLocationsLogistics

*Digital Market

PEOPLE

CommunitiesExperiences

PersonalizationB2C vs C2C

SegmentationBrand Adoption

Marketing Mix

Target Market

DigitalMarketing


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Overview:

Digital marketing is an extension of the principles of traditional marketing using the prospects and challenges oered by advancing technology and the geographical boundary-free digital media channel. It calls for user-centric thinking, which forces the marketer to place the user at the core of all decisions regarding which value-enhancing marketing activities to use, and this is crucial for developing a successful digital marketing strategy.

One of the prime advantages of digital marketing is that its outcomes can be tracked in real-time. This allows the business to react on time to changing consumer preferences and also to predict changes within limited certainty. All interactions are measureable. These quantiable factors include demographics, behaviours, level of engagement and nal outcomes. Therefore, any digital marketing strategy should begin with the desired return on investment (ROI) in mind. All digital marketing strategies should have a built-in testing framework and possess an inherent ability to be uid in a medium that shifts as user demographics and behaviours change. The empirical nature of digital marketing also empowers the business with highly ordered data. This data can be used to micro-segment the target market by exploiting niches, and thereby enhancing targeted selling and product development and deployment.

The top-down hierarchical approach no longer works in todays environment. The transformative digital landscape has become more about showing your customers that you know what they want and strategically inserting your messages whilst participating in the online community at their level.

Elements:

>WebsiteA strategic websites core purpose is to serve, support, and sell. Specic marketing goals will vary from business to business. They may include sharing information, internet banking, downloading application forms, corporate social responsibility pledges, registration for newsletters and recruitment, advertising campaigns, building credibility, branding, and much more. A key idea in web design is the ease of access and the interactivity of the website. These factors often have a large impact on website trac. The designs of the websites have to be compatible with the devices that are most commonly used to access the sites. The actual technical specications and solutions shall be addressed in the Prospective Digital Marketing Strategy section.

>Mobile Web and ApplicationsThe value of Mobile marketing communications in Africa cannot be denied. Financial Management magazine - Sept 13, there are 644 million mobile subscribers in Africa. This represents a 44% growth in 12 years and Deloitte Digital predicts that there will be 700 million active connections in sub-Saharan Africa by 2016. Marketing activities may employ, but are not limited to mobile web access, purpose built Native or Web-based applications (Smart phones or Feature phones) and the tireless SMS services coupled with the more recently adopted USSD services. Mobile marketing oers a robust, low cost direct marketing channel for businesses willing to devote time to develop creative campaigns. The approach chosen by the business will depend on its individual marketing objectives and the budget allocated for IT infrastructural investment.

>Social MediaSocial media has become extremely popular because it allows people to connect online to form relationships for personal and business purposes. Previous case studies have proven that social media can help small and large businesses to build brand awareness and participation. However, the next big question is how to apply it specically to your organization to meet your objectives.

Marketing is all about building relationships, and relationships start with communication. New web tools, such as blogging, micro-blogging (Twitter), social networking (Facebook, LinkedIn), podcasting (BlogTalkRadio), video content creation and distribution (YouTube) allow rms to communicate, educate, and share information directly with their current and prospective customers. Social medias direct communication distinction serves and supports organizations as it brings the people you want to attract directly to you, allows them to connect with each other, and makes direct communication possible. Social media is all about people-to-people (P2P) marketing. Social media makes communication a conversation so sharing, receiving feedback, and connecting on equal ground with the target markets is possible.

DigitalMarketing

-Competitor

Analysis-

LocalDigital

Landscape


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12%

88%

Namibia

Internet Users

Non-Users

17%

83%

South Africa

Internet Users

Non-Users

Namibia0.15%

South Africa4.85%

Africa95%

16%

84%

Africa

Internet Users

Non-Users

Internet User Statistics:

According to the World Bank, Namibia had a population of 2,165,828 people in 2012 and 259,899 Internet users on June 30, 2012, which represents12.0% of the population. South Africa has a usage statistic of 17%, and Africa as a proportion to its population boasts a 15.6% penetration in terms of internet users. Which puts Namibia right on par with the continental growth of internet users.

Remarkably, Namibias internet users represent 0.15% of the total internet users within Africa. This can be attributed to the vast unprecedented growth of 3310% over the past 8 years. Although this growth is not boundless, as it is limited by the actual size of the population, it is necessary to develop tools, infrastructure and marketing activities to serve and benet from this emerging digital marketplace. It must be noted that the bulk of the internet access is facilitated via mobile devices (18% - Smart phones & 82% - Feature phones) as captured by tradingeconomics.com and veried by the World Bank. Quantitatively, the Mobile subscription rate was 67.21% in Namibia as reported in 2010. Hence creating a stronger impetus for developing mobile based marketing activities in Namibia.

Successful Online Brands:

VS

The Top 5 brands (www.socialbakers.com) in terms of Facebook fan page likes is presented above, and as a contrast the performance of Bank Windhoeks competitors are displayed on the same scale. Note that although Standard Bank is the leader in the retail banking sector in terms of Facebook market share, it still only ranks at 15th in Namibia, whereas FNB Namibia ranks at 34th and Nedbank occupies a lowly 77th position. Therefore, there are many lessons to be learnt from the actual market share leaders. Lessons that may include campaign types and communication styles that can be analysed and implemented to solicit similar engagement. However, any vigilant digital marketer would be quick to note that LIKES do not necessarily mean engagement, lead generation or sales. Engagement, leads and sales stem from what you do with the data that social analytics provides. Future Trends:

It is clear that the digital revolution in Africa will be fuelled by access permitted through mobile phones. Therefore, it is imperative for companies intending on reaping the benets of the digital marketplace, to position themselves early. Although there are a number of options available in pursuing this goal, the specic approaches, and the technical and nancial feasibility shall be addressed in the Prospective Digital Marketing Strategy (PDMS) section.

Vigo Namibia Pick n Pay Jet Tafel LagerWindhoek

Beer

Fans 37230 37120 23742 23711 22010

0

5000

10000

15000

20000

25000

30000

35000

40000

Facebook Penetration of Top 5 Brands

Standard Bank Namibia

FNB Namibia NedBank Namibia

Fans 16469 3329 911

0

5000

10000

1500020000

25000300003500040000

Facebook Penetration of Local Retail Banks as @ 06/01/2014

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DigitalMarketing

-Competitor

Analysis-

Websites


Trac and Metric Analysis:

>Bounce RateThis analysis is based on a web trac analysis variable called bounce rate. It represents the % of visitors who enter the site and leave the site rather than continue viewing other pages within the same site. Bounce rate is a measure of the eectiveness of a website in encouraging visitors to continue with their visit. It is expressed as a percentage and represents the proportion of visits that end on the rst page of the website that the visitor sees.

Bounce rates can be used to help determine the performance of an entry page at creating sustained interest for the visitors. An entry page with a low bounce rate means that the page eectively causes visitors to view more pages and continue on deeper into the website. High bounce rates typically indicate poor entry page performance. According to www.inc.com, a 50% bounce rate is average.

Although Bank Windhoek and its competitors all exhibit above average bounce rates, it must be noted that the bounce rates have increased positively by a factor of 122% for Standard Bank, 39%for FNB Namibia and only 31% for Bank Windhoek. NedBanks historical data was unavailable at the time of research, but this still further reinforces Standard Banks strong digital presence and their continued endeavour to dominate the local digital landscape in term of retail banking.

>Daily Page ViewsThe next web trac analysis variable under consideration is daily page views. A page view is howoften a page is accessed on the site. However, daily page views can be misleading because a single page view may generate multiple hits as all the resources required to view the page (images, etc) are also requested from the web server.

Regardless of the potentially misleading nature of this metric, Standard Bank once again dominates the statistics.

Design:

Googles PageSpeed Insights development tool analyzes the content of a web page, rates it out ofa scale of a 100 and then generates suggestions to make that page faster. Search visits percentage quanties the proportion of site visits coming from clicking a link on a search engine result. It is evident that there is a direct correlation between a well designed website and the ability of search engine bots to locate your website on the basis of a search query.

Bank Windhoeks Page speed rating is 3rd in the market, however the website still needs search engine optimisation (SEO). This facet shall also be addressed in the PDMS section.

Standard Bank

NamibiaFNB Namibia

NedBank Namibia

Bank Windhoek

Namibia

Daily Page Views 9 2.5 2.1 4.7

0123456789

10

Daily Page Views

0% 10% 20% 30% 40% 50%


FNB Namibia

NedBank Namibia

Bank Windhoek Namibia


FNB NamibiaNedBank Namibia

Bank Windhoek Namibia

Bounce Rate 14% 17.50% 41.70% 30.50%

Bounce Rate (Alexa Rank)

Standard Bank

Namibia

FNB Namibia

NedBank Namibia

Bank Windhoek

Namibia

Page Speed Rating 85% 67% 94% 80%

Search Visits 10.0% 10.3% 33.3% 2.8%

0%10%20%30%40%50%60%70%80%90%

100%

Page Speed Rating & Search Visits (Alexa Rank) - Desktop

www._

DigitalMarketing

-Competitor

Analysis-

Mobile Web&

Applications


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Only one of the banks in Namibia have designed a mobile website (FNB - www.fnbna.mobi) for exclusive mobile usage at the time of research, however their relative accessibilities for mobile phone browsers shall be assessed in the design section below.

Therefore, the trac and metric analysis in the previous websites section include statistics from mobile access.

>Applications (Apps)FNB Namibia pioneered the introduction of a freely downloadable banking application (App), withan impressive range of functionality. Standard Bank followed suit and also introduced their own banking App.

In the Mobility 2012 research study, conducted by World Wide Worx with the backing of First National Bank, it was shown that most cell phone banking is still conducted via text messages and that more than 30% of customers are also using phone browsers for their banking.

Only 5% of cell phone bankers exclusively use phone browsers for the purpose, but a further 36% use the browsers as well as text-based services like USSD and SMS.

Considering these usage statistics, developing a native App for Android and Apple platforms as the competitors (Standard Bank & FNB) have, may not be an absolute short term priority. Smart phones only have an 18% penetration rate in Africa, thus there is still value in developing browser/client based applications and strengthening SMS/USSD services in the short term. Native Apps will have more of an impact in the medium term as smart phones sales eventually overhaul feature phones.

Design:

Googles PageSpeed Insights development tool analyzes the content of a web page, rates it out ofa scale of a 100 and then generates suggestions to make that page more accessible. There are certain technical and nancial considerations with respect to developing a website that is equally accessible to desktops and mobile devices.

In the past, either you catered for one or both, although catering for both would have cost and technical implications (Requiring 2 Content Management Systems - CMS).

However, with advancing technologies, Responsive Web Design (RWD) has beendeveloped. RWD enables brands to optimise site experience across dierent screen sizes without creating multiple websites. A RWD site responds to the screen size of a device, then adjusts images, template layout and content visibility accordingly. All of this can be layered onto a single le of HTML content.

Exclusive Browser Usage (EBU)

EBU & SMS/USSD Services

Cellphone Bankers 5% 36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Cellphone Bankers - World Wide Worx

Standard Bank

Namibia

FNB Namibia

NedBank Namibia

Bank Windhoek

Namibia

Page Speed Rating 67% 93% 84% 69%

0%10%20%30%40%50%60%70%80%90%

100%

Page Speed Rating - Mobile Browsing

534.0

43.0

Standard Bank Namibia FNB Namibia

FollowersFollowers

1.3

0.7

Standard Bank Namibia FNB Namibia

Twitter Penetration Average Growth / Day

Twitter Penetration Average Growth / Day

73.5%

90.8% 87.4%

0.0%


FNB Namibia NedBank Namibia Bank Windhoek Namibia

Percentage Local Likes/FansPercentage Local Likes/Fans

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DigitalMarketing

-Competitor

Analysis-

SocialMedia



Recorded: 06/01/2014 - www.socialbakers.com

>FACEBOOK

Standard Bank Namibia Likes: 16469 Joined: 02/12/2012 Ave. Growth: 41.2 Likes/day % Local Likes: 73.5%

FNB NamibiaLikes: 3329Joined: 23/01/2012Ave. Growth: 4.7 Likes/day% Local Likes: 90.8 %

NedBank NamibiaLikes: 911Joined: 22/06/2011Ave. Growth: 0.98 Likes/day% Local Likes: 87.4 %

Note that Standard Bank has the most Likes and the highest average growth rate, despite joining Facebook later than the other two competitors. Their style of social engagement on Facebook isdiscussed hereafter, and shall possibly provide answers justifying their remarkable growth.

FNB Namibia has the largest proportion of local fans, and this is also a desirable outcome for BankWindhoek should the company choose to enter the Social Media arena. Therefore, an analysis of their engagement primarily in terms of content is also crucial.

>TWITTER (Micro-Blogging)

Recorded: 06/01/2014 - www.foller.me

Standard Bank NamibiaTweets: 1,475Followers: 534Following: 185Joined: 29/11/2012Ave. Growth: 1.3 Followers/day

FNB NamibiaTweets: 9Followers: 43Following: 7Joined: 19/04/2013Ave. Growth: 0.7 Followers/day

NedBank Namibia has no active account, but could lean on lessons learned by NedBank South Africa as it garnered the following impressive statistics:Tweets: 33,344Followers: 17,568Following: 14,182Joined: 06/08/2011Ave. Growth: 19.9 Followers/day

41.2

4.70.98 0


FNB Namibia NedBank Namibia Bank Windhoek Namibia

Facebook Penetration Average Growth / Day

Facebook Penetration Average Growth / Day

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DigitalMarketing

-Competitor

Analysis-

SocialMedia


Usage and Engagement:

>FACEBOOK

Standard Bank Namibia ~Built-in Notes tab for recruitment~Additional PDF tab for availing resources~Link to Homepage in Info tab~Responses to queries via mini URLs~Conversational/Infotainment updates~Links to cell phone banking page via mini URLs~No Call to Action on Cover Photo~No Homepage link on Cover Photo

FNB Namibia~Unied Branding throughout updates~Full links to Facebook Help Page~Full links to Cell phone Banking Page~No Call to Action on Cover Photo

NedBank Namibia~Additional App tab for Loan Calculator (Mortgage)~Additional Poll tab (Market Research Tool)~Call to Action on Cover Photo (NedBank Cycle Challenge)~No regular updates

The factors in the green font indicate appropriate usage of the social media platform to enticeextensive engagement, and the factors in red represent missed opportunities.

Bank Windhoek should make full use of these analytics in their entrance plan for digital penetration in the social media arena. Although there are many other guides and best practices,Standard Banks approach has garnered a large fan base and these lessons coupled with others should serve any late/early majority well.

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ProspectiveDigital

MarketingStrategy

Guide


Guide:

This section of the document consists of an abridged outline of the elementary constituents of a successful Digital Marketing Strategy and a concise case specic conclusion. Some elements shall be explained in general, and others shall have directly applicable suggestions for Bank Windhoek.

1. Context:Deals with understanding why the business is embarking upon this plan/strategy. This is where a SWOT analysis would be used to understand your business and your market.

2. Objectives:In terms of Social Media, it could be a measurable goal such as 1000 Fans/Likes by the end of the year or the integration of all marketing and sales channels. It goes without saying that all Digital marketing objectives should be aligned with the brands greater strategic objectives.

3. Value-Exchange:In terms of Social Media once again, the value exchange could be achieved by using the data generated by the analytics of the online community to micro-segment the market, and thereby developing new products at the price and quality levels specied by the community.

4. Tactics and Evaluation:There are various tactics and these tactics have specic outcomes. the choice of tactic will depend on the objectives of the strategy. E.g. Social Media, as a tactic, yields higher brand awareness and participation. Whereas, Search Engine Optimisation (SEO) could lead to customer retention and perhaps new customer acquisition. The type of evaluation is dependent on the tactic at play.

5. Metrics:Metrics or the results of measurement is crucial for determining whether a specic ROI has beenmet. Tools like SocialReport are instrumental in quantifying the value of Digital Marketing.

6. Ongoing Optimisation:It is the continuous process in rening and optimising the tactics.

Note that Likes and Followers do not necessarily translate into leads and sales, but using campaign management tools like SocialReport (www.socialreport.com) can provide businesses with data that can be used to drive sales and may aide with customer care and niche market product development especially within an integrated marketing communication environment. Another recommendation is that the business uses its existing Social Investment Fund projects to create related Social Media campaigns as part of their Social Media entrance plan. This benet of using a well developed message (E.g. Apples for Cancer campaign) in the rst foray into digital marketing is that the eectiveness of the message is not under scrutiny, it is merely the approach/method employed in the electronic channel that is being measured. Therefore clear and measurable objectives can be established right from the beginning.

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AuthorsNote

&ContactDetails


Authors Note:

All opinions, suggestions and insights presented in this document are the intellectual property of the Author.

Scholarly knowledge is based on extensive primary and secondary research of traditional and contemporary sources.

Contact Details:

Cell: +264 81 782 4063

Email: [email protected]

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AnalyticalTools

&References


Analytical Tools:

1. Google PageSpeed Insight2. Alexa Rank3. Foller.me4. Social Bakers5. SocialReport6. Microsoft Excel7. Change Detection8. Social Mention

References:

1. www.wikipedia.org2. www.socialbakers.com3. www.foller.me4. www.worldwideworx.com5. www.internetworldstats.com6. www.themarketer.co.uk7. www.tradingeconomics.com

Bank Windhoek - Digital Penetration Assessment & Prospective Digital Marketing Strategy

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