Short Cycle Process Worksheet Writing Homework Help

 Use outside these parameters is a copyright violation. Page 2 Page 3 9B21A006 Marketing and User Acquisition The top priorities for most high-growth direct-to-consumer (D2C) start-ups were securing funding and building a large user base. Unfortunately, one was difficult to achieve without the other. Luckily for Drop, Fung’s previous entrepreneurial success had helped boost investor confidence, and Drop was able to raise enough pre-seed financing to launch operations. This allowed the team to focus exclusively on acquiring users. Most merchants defined a user as someone who purchased the product. However, Drop’s user acquisition process was less simple and consisted of four main steps. First, users visited an app store and installed Drop on their mobile device. Second, they opened the app and registered themselves with a username and password, and then verified their email. Third, after registration was complete, users linked an active payment method, such as a credit card or debit card. Finally, users completed an offer via the app to become “fully integrated users” and start earning points (see Exhibit 3). There were many instances of users falling out of the process before completing all four steps; some were apprehensive about linking their credit card and others simply downloaded the app and stopped interacting with it. This had led Solty and the marketing team at Drop to approach users with a different tactic. The team targeted users at each phase and encouraged them to complete the entire user acquisition funnel. This was an important task, especially because investors were carefully looking at revenue and profitability metrics. A revenue-generating6 user at Drop was defined as someone who completed all four steps in the onboarding process. Once a user completed a purchase through the app, Drop received a percentage cut from the merchant. Paid Social Advertising Drop’s initial user growth had come from press coverage, including articles on TechCrunch and BetaKit, and within a year and a half, over 70,000 Canadians were using the app. In order to scale up, the marketing team allocated 6070 per cent of its budget toward paid social advertising on Facebook and Google. One of the main benefits of this approach was the quick and efficient speed of this channel. Within only a couple of weeks, Drop had funnelled countless advertisements to individuals based on Facebook’s algorithms and was targeting millennials and women with children all over the country. Solty preferred this channel because of its efficiency. Within minutes she was able to monitor the number of downloads, gather statistics on who was downloading the app, and update her bids for the upcoming week’s advertising. However, she was not confident that all users from this channel were actually completing the whole onboarding process. The graphics on Facebook showed Drop as a platform where users could earn free rewards for their favourite retailers (see Exhibit 4). Often, this was enough to warrant a download, but users were not sure what to do next. These advertisements did not mention having to link 5 “Survey of Household Spending, 2017,” Statistics Canada, December 12, 2012, accessed November 13, 2019, www150.statcan.gc.ca/n1/daily-quotidien/181212/dq181212a-eng.htm. 6 Drop defined profitable users as those for which the cost of acquisition was less than the revenue Drop earned from their spending. For example, if it cost Drop $11 to acquire the user and the user brought in $15 for the company, the user was considered profitable. Authorized for use only by Zaid Khartabil in BUAD 301-26 at California State University – Fullerton from 1/24/2022 to 5/18/2022. Use outside these parameters is a copyright violation. target.5 This demographic also displayed a strong sense of community. Through everything from in-person playgroups to online forums, these women constantly interacted with others in their social circles. Decisions were carefully thought-out and verified by others as they shared their own brand experiences, making wordof-mouth strategies much more impactful than direct marketing. Page 4 9B21A006 a credit card, and many individuals stopped the onboarding process due to security concerns. In addition, this channel was quickly becoming oversaturated by a number of different brands. Every page on the Internet contained advertisements vying for attention and none of them seemed personalized. In an effort to establish a more personal relationship with users, Drop tested referral marketing. Referral marketing encouraged passionate customers to recommend that their network try a business’s product or service. In return, the customers were offered a reward or an incentive, usually in the form of points or cash. Drop allocated 1020 per cent of its marketing budget to this channel. Each user on the app had a referral code and was given a $5 gift card if the user referred someone else. The benefit of this channel for Drop was that both users (the one who did the referring and the one who was referred) received the $5 gift card only after their payment cards were linked and they had completed an offer. This ensured that consumers completed the onboarding process before being rewarded. A common example of referral marketing was word-of-mouth between family members, such as siblings or spouses. One family member would encourage the other to sign up and would walk them through the entire process, answering any questions that arose organically. This led to a very high conversion rate. Unfortunately, this channel did not provide for as much scalability as paid social advertising did. Each user on average referred two to three users in total. Solty wondered if there was a middle ground—a way to reach an audience at scale but still maintain the level of personal connection that came with word-of-mouth marketing. Her research pointed her to a new channel that held a great deal of potential: influencer marketing. THE NEW WORLD OF INFLUENCER MARKETING At a fundamental level, influencer marketing was a type of social media marketing that used product mentions from influencers—individuals who had a dedicated social following and were viewed as experts within their niche.7 Influencers fell into many different categories, some of the popular ones being gaming, fashion, technology, and fitness. Influencer marketing was successful because of the high amount of trust influencers established with their followers. Recommendations from influencers served as a form of social proof for the brand’s potential customers. 8 In its infancy, influencer marketing had referred to the select group of celebrities and supermodels who chose to endorse exclusive brands. But the definition of influencer was changing. Currently, young men and women across the globe were self-proclaimed full-time “fashion bloggers” or “social media influencers” with large online audiences and high levels of engagement through social channels such as Facebook, Instagram, and TikTok. 7 Gerardo A. Dada, “What Is Influencer Marketing and How Can Marketers Use It Effectively?” Forbes, November 14, 2017, accessed November 13, 2019, www.forbes.com/sites/forbescommunicationscouncil/2017/11/14/what-is-influencermarketing-and-how-can-marketers-use-it-effectively/#34dd6b2123d1. 8 Ibid. Authorized for use only by Zaid Khartabil in BUAD 301-26 at California State University – Fullerton from 1/24/2022 to 5/18/2022. Use outside these parameters is a copyright violation. Referrals 9B21A006 This industry was set to reach $10 billion in 2020 with influencers leveraging networks like Snapchat, YouTube, and TikTok, each with their own audience demographics.9 Not only was this a growing industry, but the industry had also been wildly successful for brands. Brands typically earned $2 for every dollar spent on Google Ads compared to the $11.69 in earned media value10 per dollar spent on influencer marketing.11 One of

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 Use outside these parameters is a copyright violation. Page 2 Page 3 9B21A006 Marketing and User Acquisition The top priorities for most high-growth direct-to-consumer (D2C) start-ups were securing funding and building a large user base. Unfortunately, one was difficult to achieve without the other. Luckily for Drop, Fung’s previous entrepreneurial success had helped boost investor confidence, and Drop was able to raise enough pre-seed financing to launch operations. This allowed the team to focus exclusively on acquiring users. Most merchants defined a user as someone who purchased the product. However, Drop’s user acquisition process was less simple and consisted of four main steps. First, users visited an app store and installed Drop on their mobile device. Second, they opened the app and registered themselves with a username and password, and then verified their email. Third, after registration was complete, users linked an active payment method, such as a credit card or debit card. Finally, users completed an offer via the app to become “fully integrated users” and start earning points (see Exhibit 3). There were many instances of users falling out of the process before completing all four steps; some were apprehensive about linking their credit card and others simply downloaded the app and stopped interacting with it. This had led Solty and the marketing team at Drop to approach users with a different tactic. The team targeted users at each phase and encouraged them to complete the entire user acquisition funnel. This was an important task, especially because investors were carefully looking at revenue and profitability metrics. A revenue-generating6 user at Drop was defined as someone who completed all four steps in the onboarding process. Once a user completed a purchase through the app, Drop received a percentage cut from the merchant. Paid Social Advertising Drop’s initial user growth had come from press coverage, including articles on TechCrunch and BetaKit, and within a year and a half, over 70,000 Canadians were using the app. In order to scale up, the marketing team allocated 6070 per cent of its budget toward paid social advertising on Facebook and Google. One of the main benefits of this approach was the quick and efficient speed of this channel. Within only a couple of weeks, Drop had funnelled countless advertisements to individuals based on Facebook’s algorithms and was targeting millennials and women with children all over the country. Solty preferred this channel because of its efficiency. Within minutes she was able to monitor the number of downloads, gather statistics on who was downloading the app, and update her bids for the upcoming week’s advertising. However, she was not confident that all users from this channel were actually completing the whole onboarding process. The graphics on Facebook showed Drop as a platform where users could earn free rewards for their favourite retailers (see Exhibit 4). Often, this was enough to warrant a download, but users were not sure what to do next. These advertisements did not mention having to link 5 “Survey of Household Spending, 2017,” Statistics Canada, December 12, 2012, accessed November 13, 2019, www150.statcan.gc.ca/n1/daily-quotidien/181212/dq181212a-eng.htm. 6 Drop defined profitable users as those for which the cost of acquisition was less than the revenue Drop earned from their spending. For example, if it cost Drop $11 to acquire the user and the user brought in $15 for the company, the user was considered profitable. Authorized for use only by Zaid Khartabil in BUAD 301-26 at California State University – Fullerton from 1/24/2022 to 5/18/2022. Use outside these parameters is a copyright violation. target.5 This demographic also displayed a strong sense of community. Through everything from in-person playgroups to online forums, these women constantly interacted with others in their social circles. Decisions were carefully thought-out and verified by others as they shared their own brand experiences, making wordof-mouth strategies much more impactful than direct marketing. Page 4 9B21A006 a credit card, and many individuals stopped the onboarding process due to security concerns. In addition, this channel was quickly becoming oversaturated by a number of different brands. Every page on the Internet contained advertisements vying for attention and none of them seemed personalized. In an effort to establish a more personal relationship with users, Drop tested referral marketing. Referral marketing encouraged passionate customers to recommend that their network try a business’s product or service. In return, the customers were offered a reward or an incentive, usually in the form of points or cash. Drop allocated 1020 per cent of its marketing budget to this channel. Each user on the app had a referral code and was given a $5 gift card if the user referred someone else. The benefit of this channel for Drop was that both users (the one who did the referring and the one who was referred) received the $5 gift card only after their payment cards were linked and they had completed an offer. This ensured that consumers completed the onboarding process before being rewarded. A common example of referral marketing was word-of-mouth between family members, such as siblings or spouses. One family member would encourage the other to sign up and would walk them through the entire process, answering any questions that arose organically. This led to a very high conversion rate. Unfortunately, this channel did not provide for as much scalability as paid social advertising did. Each user on average referred two to three users in total. Solty wondered if there was a middle ground—a way to reach an audience at scale but still maintain the level of personal connection that came with word-of-mouth marketing. Her research pointed her to a new channel that held a great deal of potential: influencer marketing. THE NEW WORLD OF INFLUENCER MARKETING At a fundamental level, influencer marketing was a type of social media marketing that used product mentions from influencers—individuals who had a dedicated social following and were viewed as experts within their niche.7 Influencers fell into many different categories, some of the popular ones being gaming, fashion, technology, and fitness. Influencer marketing was successful because of the high amount of trust influencers established with their followers. Recommendations from influencers served as a form of social proof for the brand’s potential customers. 8 In its infancy, influencer marketing had referred to the select group of celebrities and supermodels who chose to endorse exclusive brands. But the definition of influencer was changing. Currently, young men and women across the globe were self-proclaimed full-time “fashion bloggers” or “social media influencers” with large online audiences and high levels of engagement through social channels such as Facebook, Instagram, and TikTok. 7 Gerardo A. Dada, “What Is Influencer Marketing and How Can Marketers Use It Effectively?” Forbes, November 14, 2017, accessed November 13, 2019, www.forbes.com/sites/forbescommunicationscouncil/2017/11/14/what-is-influencermarketing-and-how-can-marketers-use-it-effectively/#34dd6b2123d1. 8 Ibid. Authorized for use only by Zaid Khartabil in BUAD 301-26 at California State University – Fullerton from 1/24/2022 to 5/18/2022. Use outside these parameters is a copyright violation. Referrals 9B21A006 This industry was set to reach $10 billion in 2020 with influencers leveraging networks like Snapchat, YouTube, and TikTok, each with their own audience demographics.9 Not only was this a growing industry, but the industry had also been wildly successful for brands. Brands typically earned $2 for every dollar spent on Google Ads compared to the $11.69 in earned media value10 per dollar spent on influencer marketing.11 One of

Do you have a similar assignment and would want someone to complete it for you? Click on
the ORDER NOW option to get instant services at LindasHelp.com. We assure you of a well
written and plagiarism free papers delivered within your specified deadline.

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