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Understanding the Decoy Effect and How to Use in Marketing to Increase Sales

If you have ever encountered three drink sizes offered by a coffee shop or supermarket, that is an application of the decoy effect.

The decoy effect is one of the marketing strategies used to increase the sales of a product.

Price is the most complicated marketing element. Therefore, to determine it, many considerations are needed, and the decoy effect is one of the strategies used for this purpose.

What is the Decoy Effect?

As quoted by The Decision Lab, the decoy effect is a pricing strategy used by adding a third, less attractive option as bait to influence the buyer’s perception of the main option.

One instance of implementing the decoy effect can be seen in the following scenario:

Company A offers beverages in two sizes – small and large, with the respective prices:

Small: Rp35,000

Large: Rp50,000

This pricing strategy allows customers to easily compare and select the option that best suits their needs or budget.

However, the company decides to apply the decoy effect by introducing a third option – medium, as a lure.

Thus, the beverage options now include:

Small: Rp35,000

Medium: Rp45,000

Large: Rp50,000

By adding a third option with a price that appears to be reasonable, the company creates the decoy effect.

Initially, customers may have a tendency to select the small option, but the presence of the decoy option can potentially influence their decision-making process.

How to use the Decoy Effect in business?

To effectively use the decoy effect in your business, it’s important to consider more than just prices. The decision could also involve factors like quality versus convenience.

The ultimate goal of a decoy is to create the perception that your target product is a good deal. This can be achieved by changing the relative value of different parameters (e.g. cost versus layover time for a plane ticket) or by offering more for less (e.g. different sizes of perfume).

Here’s a quick guide to creating a decoy:

  1. Choose your target product or service, ensuring that it’s something your customers already like.
  2. Introduce a decoy that offers less for the same or almost the same price. The decoy should be a very bad deal in comparison to the target.

However, it’s important not to make the decoy too unappealing, as you still want to make the price of the target product favorable. You can make the decoy less attractive by changing a different feature, such as the color.

  1. Ensure that the third option you offer is distinct from the target and decoy and provides a clear customer comparison point.

Apply Decoy Effect to Your Marketing Strategy

This strategy is commonly used in pricing, where a third option is added to make the target product appear more appealing. 

Though to effectively use the decoy effect in the business, it’s important to consider factors beyond price, such as quality versus convenience, and to ensure that the third option is distinct from the target and decoy while providing a clear comparison point for customers. 

If you’re unsure of how to apply Decoy Effect to your marketing strategy, CVI will be happy to offer consultation to help you.

 

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The Importance of Context in Color Psychology for Marketing and Branding

What is Color Psychology?

Color psychology is the study of how different colors affect human mood and behavior. Understanding color psychology in marketing and branding is crucial for businesses to communicate their message and influence consumer behavior effectively. 

By selecting the right colors for their brand, businesses can create a powerful emotional connection with their target audience and convey the right message. 

Challenges of Applying Color Psychology in Marketing and Branding

Many researchers have attempted to classify how individuals react to particular colors. Still, the truth is that color is too subjective and heavily influenced by personal experiences to be universally translated into specific emotions.

Factors such as personal preferences, experiences, cultural differences, and context can all affect colors’ impact on us. Therefore, the belief that colors can evoke hyper-specific emotions is often inaccurate.

Making Effective Color Choices for Your Marketing and Branding Strategy

The right color is appropriate for your brand

The appropriateness of color is important in branding and marketing. According to a 2006 study, the choice of color for a brand is determined by how appropriate it is for the product or service being offered. It’s essential to determine whether a color is appropriate by collecting customer feedback.

The right color differentiates your brand

Studies have shown that color is essential in creating brand identity and recognition, with new brands advised to choose colors that differentiate them from competitors.

The Isolation Effect suggests that items that stand out are more memorable. Research has found that consumers prefer color patterns with similar hues but also favor palettes with contrasting accent colors.

The right color has the right name

The names given to colors can significantly affect how consumers perceive them. Research indicates that consumers prefer fancy color names over simple ones, even when the colors displayed are the same. Furthermore, unconventional and unique color names are more appealing for products, including paint colors, where elaborately named shades are considered more attractive than those with simple names.

The Power of Colors

Color can have a significant impact on communicating messages, setting particular atmospheres, and even shaping people’s choices. It also influences consumers’ purchasing decisions, clothing choices, and how they decorate their surroundings. 

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Marketing Guide During Ramadan in 2023

Ramadan is an important period in the Islamic calendar, characterized by fasting, introspection, and religious devotion. Businesses seeking to capitalize on this holiday must devise a well-planned Ramadan advertising and marketing strategy. 

This article “Marketing Guide During Ramadan in 2023” presents a comprehensive overview of Ramadan marketing and shopping trends for 2023, providing valuable information for both small and large corporations.

Gain insights on how to optimize this religious holiday season for your business. Kindly take the time to read further for more information.

Maximizing Your Online Presence During the Ramadan Season 2023

Indonesians often turn to the internet when considering a purchase to gather information and feel confident in their decision. Nearly 80% seek a trusted source and 94% want to read as much relevant information as possible. Search engines are a common starting point, with 73% using them to find e-commerce or brand websites.

Having a strong online presence is crucial for brands, but it also must be well-timed. By being present during the information-seeking process, brands can remain top-of-mind in the customer’s journey to purchase.

Key moments for brands to engage with Indonesians during Ramadan

Key Moments Guide during Ramadan
Key Moments Guide during Ramadan

 

Timing is key for Ramadan marketing efforts in Indonesia.  As consumers start their preparations for the holiday, interest in fasting-related products like dairy, juice, and staple foods increases. This trend continues to intensify two weeks before the start of Ramadan. 

During the first week of Ramadan, searches for gifts and entertaining products like baked goods and soft drinks also intensify. The third week of Ramadan sees a peak in interest in beauty, fashion, and home improvement products as families prepare for home visits during the holiday.

Throughout the month, telecommunication products like data plans and prepaid packages are in high demand as people connect with loved ones online. By aligning your marketing efforts with these shifts in consumer behavior, you can effectively reach and engage your target audience during this important holiday.

Ramadan Audiences Guide Every Marketer Should Know 

Marketers should be aware of the different audiences that will be celebrating Ramadan and tailor their campaigns accordingly. Understanding the needs and motivations of each group will help create advertising that resonates with them and drives results.

Families

This group values spending time together and may be more likely to participate in offline activities such as visiting relatives or going on vacation. Marketers should avoid ads featuring food or drink as Muslims abstain from eating or drinking during the day.

Young Adults

This audience may be more engaged with their faith during Ramadan and interested in content about religion, spirituality, or personal growth. They may also be open to participating in offline activities like visiting mosques or attending religious lectures.

Working Professionals

This group may have less time for religious observances due to work, so content that helps them balance their responsibilities while maintaining their spiritual practice would be appreciated.

They may also be interested in learning how to integrate Islamic values into their work life.

Students

With more free time during Ramadan, students are a prime target for brands promoting leisure activities or products. They may also be interested in content related to personal development or exploring their faith.

Seniors

Older Muslims may appreciate content that is respectful of their age and religious beliefs. Brands should focus on how their product or service can add value to the lives of this group without being intrusive or disruptive.

Newcomers to Islam

Muslims new to the faith may appreciate educational content about Ramadan and what it means to be Muslim.

Push Your Marketing During Ramadan to the Next Level

Brands targeting Muslim consumers’ marketing guide during Ramadan should keep in mind the significance of the event in the Muslim calendar.

A successful Ramadan marketing strategy should consider the key factors of the holiday and the needs of the target audience.

To help you meet this goal, CVI offers a consultation that will help you to get ready for Ramadan 2023. 

Contact us today!

Source: Videnglobe,  Thinkwithgoogle

 

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The Benefits of Email Marketing for Businesses

Email is one of the oldest forms of digital communication—but it’s also one of the most effective digital marketing strategies out there.

What is Email Marketing?

Email Marketing is a powerful channel, a form of direct marketing that uses email to promote your business’s products or services. It can help make your customers aware of your latest items or offers by integrating those items into your marketing automation efforts. It can also play a pivotal role in your marketing strategy with lead generation, brand awareness, building relationships, or keeping customers engaged between purchases through different types of marketing emails.

Why is It Essential?

Apart from being the primary communication source, email marketing has some other benefits:

  • It offers a high Return on Investment (ROI). Based on the Neilson study, email marketing has the highest ROI of 675% when compared with any of the other major marketing methods. An email marketing campaign can greatly increase sales and profits when integrated with a business’s website. 
  • More effective in acquiring new customers than social media platforms like Facebook or Twitter
  • We can seamlessly integrate it with other communication channels. Use your chance to enlarge your audience, blending emails with your profiles on social media platforms, SMS, or web push notifications.
  • It improves your website’s search engine optimization (SEO) by driving traffic to your website through content sharing and backlinking.

When to Use It?

There are many ways to use email marketing — some of the most common including using the tactic to

  • Build relationships: Build connections through personalized engagement.
  • Boost brand awareness: Keep your company and your services top-of-mind for the moment when your prospects are ready to engage.
  • Promote your content: Use email to share relevant blog content or useful assets with your prospects.
  • Generate leads: Entice subscribers to provide their personal information in exchange for an asset that they’d find valuable.
  • Market your products: Promote your products and services.
  • Nurture leads: Delight your customers with content that can help them succeed in their goals.

Types of Email Marketing

There are several types of email marketing, each with its own purpose and target audience. Some of the most common types include

  1. Newsletters: Newsletters are typically sent on a regular schedule, such as weekly or monthly, and include information about a company’s products or services, and industry news. We prefer to use newsletters to maintain a relationship with existing customers and to keep them informed about the company’s activities.
  2. Promotional Emails: These types of emails are used to promote a company’s products or services, often including special offers or discounts. We prefer this strategy whenever we want to target lists of potential customers and drive sales or generate leads.
  3. Transactional Emails: These are automated emails that are triggered by a specific action, such as a purchase or registration. They can include confirmations, receipts, and other types of information that are relevant to a specific transaction.
  4. Relationship Emails: This type of email marketing is used to build and maintain a relationship with a customer. It can include “Welcome” emails for new subscribers, “Birthday” emails, and other types of messages to foster a sense of engagement with a company.

Each type of email marketing has its own specific goals and strategies. But, they all have the goal to target the right audience with the right message at the right time.

Ready to Start Yours?

If you’re ready to start the benefits of an email marketing campaign, CVI can help.

Let us help you create a personalized plan that aligns with your unique goals and audience. Our team will work with you to develop compelling, engaging content that drives results.

Contact us today for more information!

Source: Mailchimps, Sendpulse, Hubspot

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Website Optimization: Tips to Improve UX and Performance

Website optimization refers to the process of improving the performance and user experience of a website. By optimizing a website, businesses can increase traffic, improve search engine rankings, and ultimately drive more sales and revenue.

Here are a few tips for optimizing your website:

Speed matters

A slow-loading website can be frustrating for users and can negatively impact search engine rankings. Use tools like Google PageSpeed Insights to identify areas for improvement and consider optimizing images and using a content delivery network (CDN) to improve loading times.

Use responsive design

With the proliferation of mobile devices, it’s important for websites to be mobile-friendly. A responsive design ensures that a website looks and functions well on all devices, including smartphones and tablets.

Optimize for search engines

SEO (search engine optimization) is critical for driving traffic to a website. Use targeted keywords and phrases in your website’s content and meta tags, and consider creating a sitemap and submitting it to search engines.

Improve the user experience

A website that is easy to navigate and provides a positive user experience will keep visitors on the site longer and encourage them to take action (such as making a purchase). Consider using clear and concise copy, well-organized navigation, and intuitive design to improve the user experience.

Use analytics to track progress

Tools like Google Analytics can provide valuable insights into how visitors are using your website. By regularly tracking key metrics (such as traffic, bounce rate, and conversion rate), businesses can identify areas for improvement and optimize their website accordingly.

By following these tips, businesses can improve the performance and user experience of their website and drive more success.

So, what do brands or any business need to know? Well, you’ve got to do your research. Stop guessing, and start knowing how your consumers are likely to find your brand – all with the help of CVI.

Source: altexsoft, hostinger

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Online Marketing: How to Effectively Promote Your Business Online

Online marketing

is a cost-effective way for businesses of all sizes to reach a wide audience and promote their products or services. However, with many options such as social media, email marketing, search engine optimization, and pay-per-click advertising, it can be overwhelming to know where to begin.

To effectively promote your business online, it’s important to first identify your target audience and understand their needs and preferences. This will help you determine the most appropriate channels and strategies to use on your online marketing campaign.

Social media is a great way to connect with customers and build brand awareness. Social media platforms like Facebook, Instagram, and Twitter allow you to share content, engage with followers, and track campaign success. Providing value to your followers, like informative posts and special offers, is important for success.

Email marketing is another effective strategy for reaching and engaging with potential customers. By collecting email addresses and sending targeted campaigns, you can nurture leads and drive sales. To create successful email marketing campaigns, it’s important to segment your audience and personalize your messaging. A/B testing different subject lines and calls to action can also help you optimize your campaigns for maximum effectiveness.

Search engine optimization (SEO) involves optimizing your website and content to rank higher in search engine results. This can be achieved through keyword research and targeting, as well as creating high-quality, relevant content that provides value to your audience. Pay-per-click (PPC) advertising is another way to reach potential customers through search engines. By bidding on specific keywords, businesses can place ads at the top of search results and only pay when a user clicks on the ad.

Online marketing is constantly evolving, so it’s important to stay up-to-date on the latest trends and best practices. By investing in a strong online presence and using a combination of strategies, you can effectively promote your business and reach a wider audience.

Partner with us and tap into the power of online marketing to effectively promote your business online. Let’s work together to drive results and achieve your business goals.

Source: hubspot, linkedin

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Performance Marketing: Benefits and How it Works

What is Performance Marketing

First, let’s understand what performance-based marketing is.

It can be defined as his marketing and advertising strategy online that demands payment from the advertiser once a business goal is achieved.

One of the most common examples of business goals is sales. Let’s say you’re a businessman running a performance marketing strategy. We only pay for advertising when our products are actually sold.

This strategy allows promotional activities to have a direct and significant impact on the company’s overall performance and goals. Our focus on campaign optimization helps you generate more conversions through testing and data-driven decision making.

How Performance Marketing Works

Advertisers place ads on specific channels (see below for details on the best performing marketing channels) and pay based on the performance of those ads. Performance marketing has a variety of payment options.

1. Cost Per Click (CPC)

Advertisers pay for the number of clicks on their ads. This is a great way to drive traffic to your website.

2. Cost Per Impression (CPM)

Impressions are basically the number of times your ad is viewed. With CPM, you pay for every 1,000 views (so if 25,000 people see your ad, you pay him 25 times the base rate).

3. Cost Per Sales (CPS)

With CPS, you only pay when your ads generate sales. This system is also commonly used in affiliate marketing.

4. Cost Per Leads (CPL)

Similar to cost per sales, with CPL you pay when someone signs up for something. Like an email, newsletters, or webinars. CPL generates leads so you can follow up with customers and increase sales.

5. Cost Per Acquisition (CPA)

CPA is similar to CPL and CPS, but more common. In this structure, advertisers pay when a consumer makes a specific action (for example, subscribe, sharing contact information, visiting a blog, etc.).

Top Performance Marketing Channels

When it comes to performance marketing, which channel is most effective? There are five types of performance marketing used by agencies and advertisers to drive traffic:

1. Search Engine Marketing (SEM)

Most online research is done through search engines. So having a website optimized for search engine marketing (SEM) is essential. Performance marketing is primarily focused on cost-per-click (CPC), especially when it comes to paid advertising. In organic SEM, many performance marketers rely on content marketing and his SEO-optimized landing pages.

2. Content Marketing

Content marketing focuses on providing useful information to users and putting brands in context. For example, a vitamin company might write a series of informative blog posts about the benefits of probiotics and post links to the probiotics they sell. Content marketing includes blog posts, case studies, and ebooks.

3. Social Media

Social media is heaven for performance marketers. In addition to providing the ability to reach users and direct them to the site, users can also organically share sponsored content to provide reach far beyond the original post. We have the most extensive list of services for marketers, but other platforms like LinkedIn, Instagram, and Twitter also offer many ways to reach new customers.

4. Native Advertising

Native ads use the natural look and feel of a web page or website to promote sponsored content. For example, Sponsored Videos may appear in the Up Next section of your YouTube page. Native advertising is also popular on e-commerce sites. For example, you may have seen it on the Facebook Marketplace. Native advertising works because sponsored content can coexist seamlessly with other types of organic content. Users often don’t distinguish between these types of content, so it’s a natural way to promote your brand.

5. Banner (Display) Ads

If you’ve ever accessed the internet, you’ve probably seen a lot of display ads lately. These ads appear at the top or bottom of your Facebook News Feed page or any news web page you just visited. While display advertising is slowly losing its appeal due to the growing popularity of ad blockers and a phenomenon experts call banner blinding, many companies are opting to use interactive content, video, and attractive graphic design for display advertising. has been successful in.

How Performance Marketing Works

Performance marketing channels allow you to scale your advertising efforts and meet the needs of your business in an economical approach. This is an effective way to diversify your audience. Extend your reach and capture valuable data while implementing a plan that is trackable and manageable.

Performance marketing is the most popular marketing strategy with many benefits. If you are in business, there is nothing wrong with implementing this marketing strategy. Want to know how to optimize Performance Marketing? Feel free to consult with us.

Source: hostinger, bigcommerce, binaracademy

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How To Win Customer On Meta Mega Sale

Meta ecosystems such as Facebook, Instagram, Whatsapp, and Messenger know the enormous opportunity for sales at events related to mega sales. Updating the Meta Discovery Commerce can help businesses provide a shopping experience for customers that is more personalized, practical, attractive, and scalable. 

 

Why Business Must Choose Meta 

The meta ecosystem has become the top choice of customers in the Asia Pacific especially in Indonesia, surpassing e-commerce and search engines. 

67% of Indonesian customers spend their budget at the end of the year. 

97% of Indonesian customers want to try a new product from another brand at the end of the year.

Indonesian customers pay attention to these four factors before buying a product: 

95% buy a product based on quality. 

94% buy a product based on originality. 

93% buy a product based on competitive price. 

93% buy a product based on the variety. 

 

Meta Mega Sale Strategy

Build Your Campaign Foundation 

– Data: Sort potential data collected from Pixel, SDK, and offline conversions. Make sure their match scores at least touch a score of 6.0 for higher accuracy. 

– Ads Content: Create ads with diverse content (shorts video, carousel, collaborative ads content, and augmented reality ads). Various ads increase your efficiency up to 32%. 

– Terms & Guidelines: About 5 million USD was lost due to non-standard advertising. 

 

Before Meta Mega Sale

– Create Awareness 

  1. Target amount group of audience. 
  2. Make unique and unforgettable offers. 
  3. Use shorts and in-stream video. 81% of the audience understands the brand message with the video format. 
  4. Create your content as attractive as possible 

 

– Engage New Customers 

  1. Target them using catalog ads to create conversion. 
  2. Apply the “low cost and high revenue” strategy. 
  3. Use Reels, stories, and carousels to trigger audience interactions. 
  4. Use a video storytelling template that describes your product. 

 

Meta Mega Sale Day 

– Remarketing 

  1. Retargeting the audience using catalog ads to create CTA urgency. 
  2. Optimize and manage your ad budget. 
  3. Reupload past content, especially with carousel format. 
  4. Optimize top-performing ads. 

 

After Meta Mega Sale Day 

– Test Customers Loyalty 

  1. Retargeting customers who have bought before 
  2. Only target customers who have already purchased. 
  3. Use collection and carousel formats. 
  4. Test which ads hold the audience the most.

Year-end is an event that has proven profitable for most brands that can take advantage of it. Meta has a solid ecosystem to increase brand awareness and collaborative ads. It will be an advantage if the business understands the strengths of each platform. Start your free consultation with us for Meta Mega Sale Insights.

Source : Facebook

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Personalized Is The Next Marketing Trend?

“Hi this one is only for you….”, “50% discount today special for Mr/Mrs…..”, “Thank You Mr/Mrs…. for shopping in our store, here’s your coupon”.

If you are familiar with the sentence above, it is necessary to understand that the seller is doing personalized marketing in their business processes.

 

What Is Personalized Marketing?

 

Personalized marketing or person-to-person marketing is a method sellers use to market products more personally to their customers. The content creation is adjusted to the product brand message, which is added with data containing the target audience’s desire for our brand.

Email Marketing, Push Notification, and CRM are common forms of Personalized Marketing. They use the name of the audience or personal and secret words to approach their target.

Read : Digital Marketing 101 : Through what channels?

Advantages Of Personalized Marketing

  • Attract attention and awareness 

This strategy is effective in bringing the brand closer to the customer. They will feel that the brand knows what they want and need, thus building trust, loyalty, and compatibility with the products offered. What’s more, this strategy is powerful in moving emotions. Remember, 80% of sales come from the emotional assessment of the customer.

You can also combine personalized marketing with covert selling technique.

  • As a connecting bridge with the audience

It’s not wise to continue to sell and promote products continuously in every form of content because “people like to buy but don’t like to be sold.”

You can use personalized marketing to create interactive content or surveys to stay connected with the audience outside the business process.

  • Suitable for today’s customers

77% of customers are willing to pay more for products/services that have personalized services. 

78% of customers are interested while brands show interaction while offering products/services. 

74% of customers are uncomfortable using brand products/services without personalization content.

 

When Using Personalized Marketing?

When you already know the audience’s ins and outs and characteristics before using this strategy and require in-depth research, if you want to use personalization as an option for marketing your product, there is no more option than deep research. You need a data to determine whether your customers are suitable for this strategy.

Although using an approach that seems “private,” measurable and relevant data must also be available so that the application process can later be successful and not create the impression of “cringe” among customers.

 

What Is The Risk Of Personalized Marketing?

You must aware with audience data that is too personal and sensitive. Requires creativity, high costs, clear goals, and other supporting data so you can execute this strategy properly. 

Because it is personal, users usually do not have tolerance when the brand makes mistakes. Pay attention to language, content, and timing accuracy when implementing this strategy.

Don’t make crucial mistakes with this strategy. Feel Free to consult with us!

Source : inmarketing , glints

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The Right Digital Marketing Channels for Your Business!

The transition from conventional business to digital business is now massively increasing. Various digital marketing channels have sprung up, such as marketplaces to social media, which contribute to spreading products to cyberspace. More and more businesses are entering the digital world, it will increase the competition for traditional companies.

This situation demands many businesses to join the digital world. Many things are done, from uploading products to the website to promoting through the marketplace. However, the proper marketing channels must be selected so that the marketing activities are beneficial. This article will discuss three factors to consider before deciding which digital marketing channel to use.

1. Scalability

Scalability refers to the ability of a marketing channel to reach a target market or audience. Before deciding which digital marketing channels to use, you need to know how many people you can reach. We recommend using highly scalable media. The bigger and more flexible a channel is, the better because you can use it as your company and sales grow. Currently, looking at the market share size, Google and Facebook dominate the most effective and scalable marketing channels.

The characteristics of the channels to be used are also important. Content design must match the characteristics of the channel. For example, social media has social facets that include interactions between audiences and content and also conversations between users. Then you have to create more social content to attract audiences. Find a broader discussion of digital marketing channels here.

2. Targeting

The more targeted your audience is, the more effective your campaign message will be. There are two main types of targeting: behavioral and demographic. You can define the digital marketing channels and types of advertising used based on the consumer’s intention to search for certain types of products and services through the actions they take. For example, use SEM because you know that your audience will search for your product through search engines.

Meanwhile, demographically, the determination of the channel and the type of advertising used is based on the audience’s self-profile, such as identity, interests, location, etc. Good channels for the target demographic are Facebook and Instagram. To learn more about targeting your audience, you can read here.

3. Cost (CAC)

Marketing costs incurred by the company to get new customers. Acquired here can be interpreted as creating an account, installing applications, or buying products. If you have marketers in your company, you have to consider the costs you incur to hire marketers and the costs for marketing activities such as advertising. It would help to compare those costs to the number of subscribers you can get on the channel. You can calculate by adding up the salary and marketing expenses and then dividing by the number of customers you can obtain in a month. Each channel can have a different price. Therefore you must understand very well about this cost calculation.

Those are the three main factors you must consider to determine the right digital marketing channels for your business needs. These three factors include measuring marketing reach, targeting consumers, and calculating costs. These three things can help you find an efficient marketing channel to use.

Are you still having trouble determining the suitable media to use?

Click here to consult with us!