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Digital Penetration Assessment

& Prospective Digital Marketing
Strategy Guide
2014
Author: C. E. Ganaseb
Client: 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. Trafc and Metric Analysis
3.3.2.2. Design
3.3.3. Mobile Web and Applications
3.3.3.1. Trafc and Metric Analysis
3.3.3.2. Design
3.3.4. Social Media
3.3.4.1. Trafc 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
Executive
Summary
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 specifc geographical limitations, and most recently by also afording
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.
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 2
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Traditional
Integrated
Marketing
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 defned as the set of
marketing tools the business uses to pursue its marketing objectives. The
marketing tools are further classifed into four broad groups, commonly
known as the four Ps of marketing: Product, Price, Place, and Promotion.
The specifc 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
infuencing the trade channels, however the advent of digital marketing has
put a greater emphasis on people (consumers) and most contemporary
marketers argue that a ffth P, representing *People is required. This fnal
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.
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 3
PRODUCT
Product Variety
Services
Quality
Features
Brand Name
Design
PRICE
List Prices
Discounts
Interest Rates
Payment Period
Credit Terms
PROMOTION
Sales Promotion
Advertising
Public Relations
Communications
Direct Marketing
*Targeted Selling
PLACE
Channels
Coverage
Locations
Logistics
*Digital Market
PEOPLE
Communities
Experiences
Personalization
B2C vs C2C
Segmentation
Brand Adoption
Marketing Mix
Target Market
Digital
Marketing
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 4
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Overview:
Digital marketing is an extension of the principles of traditional marketing using the prospects
and challenges ofered 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 quantifable factors
include demographics, behaviours, level of engagement and fnal 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 fuid 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:
>Website
A strategic websites core purpose is to serve, support, and sell. Specifc 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 trafc. The designs of the websites have to be compatible with the
devices that are most commonly used to access the sites. The actual technical specifcations and
solutions shall be addressed in the Prospective Digital Marketing Strategy section.
>Mobile Web and Applications
The 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 ofers 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 Media
Social 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 specifcally 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
frms 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.

Digital
Marketing
-
Competitor
Analysis
-
Local
Digital
Landscape
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 5
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12%
88%
Namibia
Internet Users
Non-Users
17%
83%
South Africa
Internet Users
Non-Users
Namibia
0.15%
South
Africa
4.85%
Africa
95%
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 beneft 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 verifed 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 benefts of the digital
marketplace, to position themselves early. Although there are a number of options available in
pursuing this goal, the specifc approaches, and the technical and fnancial feasibility shall be
addressed in the Prospective Digital Marketing Strategy (PDMS) section.

Vigo Namibia Pick n Pay Jet Tafel Lager
Windhoek
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
15000
20000
25000
30000
35000
40000
Facebook Penetration of Local Retail
Banks as @ 06/01/2014
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Digital
Marketing
-
Competitor
Analysis
-
Websites
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 6
Trafc and Metric Analysis:
>Bounce Rate
This analysis is based on a web trafc 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 efectiveness 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 frst 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 efectively 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 Views
The next web trafc analysis variable under consideration is daily page views. A page view is how
often 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 of
a scale of a 100 and then generates suggestions to make that page faster. Search visits percentage
quantifes 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
Namibia
FNB Namibia
NedBank
Namibia
Bank
Windhoek
Namibia
Daily Page Views 9 2.5 2.1 4.7
0
1
2
3
4
5
6
7
8
9
10
Daily Page Views
0% 10% 20% 30% 40% 50%
Standard Bank Namibia
FNB Namibia
NedBank Namibia
Bank Windhoek Namibia
Standard Bank
Namibia
FNB Namibia
NedBank
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 Ratng 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 Ratng & Search Visits (Alexa Rank) - Desktop
www._
Digital
Marketing
-
Competitor
Analysis
-
Mobile Web
&
Applications
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 7
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Trafc and Metric Analysis:

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 trafc 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), with
an 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 of
a scale of a 100 and then generates suggestions to make that page more accessible.

There are certain technical and fnancial
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 been
developed. RWD enables brands to optimise site experience across diferent 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
fle 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
Followers
Followers
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%
Standard Bank
Namibia
FNB Namibia NedBank Namibia Bank Windhoek
Namibia
Percentage Local Likes/Fans
Percentage Local Likes/Fans
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Digital
Marketing
-
Competitor
Analysis
-
Social
Media
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 8
Trafc and Metric Analysis:
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 Namibia
Likes: 3329
Joined: 23/01/2012
Ave. Growth: 4.7 Likes/day
% Local Likes: 90.8 %
NedBank Namibia
Likes: 911
Joined: 22/06/2011
Ave. 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 is
discussed 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 Bank
Windhoek 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 Namibia
Tweets: 1,475
Followers: 534
Following: 185
Joined: 29/11/2012
Ave. Growth: 1.3 Followers/day
FNB Namibia
Tweets: 9
Followers: 43
Following: 7
Joined: 19/04/2013
Ave. 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: 33,344
Followers: 17,568
Following: 14,182
Joined: 06/08/2011
Ave. Growth: 19.9 Followers/day
41.2
4.7
0.98 0
Standard Bank
Namibia
FNB Namibia NedBank Namibia Bank Windhoek
Namibia
Facebook Penetraton Average
Growth / Day
Facebook Penetraton Average Growth / Day
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Digital
Marketing
-
Competitor
Analysis
-
Social
Media
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 9
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
~Unifed 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 entice
extensive 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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Prospective
Digital
Marketing
Strategy
Guide
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 10
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 specifc 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 specifed by the community.
4. Tactics and Evaluation:
There are various tactics and these tactics have specifc 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 specifc ROI has been
met. Tools like SocialReport are instrumental in quantifying the value of Digital Marketing.
6. Ongoing Optimisation:
It is the continuous process in refning 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 beneft of
using a well developed message (E.g. Apples for Cancer campaign) in the frst foray into digital
marketing is that the efectiveness 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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Authors
Note
&
Contact
Details
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 11
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: clifordganaseb@gmail.com
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Analytical
Tools
&
References
Digital Penetration Assessment & Prospective Digital Marketing Strategy Guide - 2014 | 12
Analytical Tools:
1. Google PageSpeed Insight
2. Alexa Rank
3. Foller.me
4. Social Bakers
5. SocialReport
6. Microsoft Excel
7. Change Detection
8. Social Mention
References:
1. www.wikipedia.org
2. www.socialbakers.com
3. www.foller.me
4. www.worldwideworx.com
5. www.internetworldstats.com
6. www.themarketer.co.uk
7. www.tradingeconomics.com