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Marketing Analytics in Action: Adoption Process The adoption process might be modeled using marketing analytics. Let's see how this might work for Dropbox, which could
Marketing Analytics in Action: Adoption Process The adoption process might be modeled using marketing analytics. Let's see how this might work for Dropbox, which could use this information to forecast sales or to fine-tune a marketing mix. Let's examine possible metrics in four steps along the adoption process. (Note that to simplify, we have combined interest and evaluation and left off the decision step.) Awareness: An advertising campaign might initially be used to make customers aware. Assume an advertising campaign makes 1,000,000 people in the target market ("techies") aware of Dropbox. Interest and evaluation: In this case, interest and evaluation could be inferred from the number of customers who visit the website and view the video describing the product. Assume 10 percent of the 1,000,000 (in Step 1) who were made aware from the advertising subsequently visit the website and watch the video. Trial: In this case, trial could be measured as the percentage of people who watch the video and subsequently download and install the Dropbox free trial. Assume 10 percent of people who watch the video go on to install the free software. . Confirmation: For the Dropbox scenario, that is the percentage of trial customers who make a purchase-we assume 5 percent of those who complete the trial will make a purchase. Using the numbers above, Dropbox could estimate the number of users and the number of initial sales it would make. The equation using the assumptions in Steps 1-4 is as follows: Number of customers buying Dropbox = 1,000,000 * 10% (who watch the video) * 10% (who download the software) * 5% (who purchase the software) Use this equation and the insights just discussed to answer the following questions: 1. Using the numbers presented above, how many of the initial 1,000,000 aware customers eventually make a purchase? 2. Assume Dropbox makes a new video that customers find more compelling. This increases the 10 percent in Step 3 to 15 percent. What is the number of buying customers with this new assumption? 3. Besides a more compelling video, identify two other changes a marketing manager might make to change the percentages shown in Steps 2 to 4. Describe how your proposed change will affect the percentage
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