tag:www.econsultancy.com,2008:/topics/attribution Latest Attribution content from Econsultancy 2017-06-22T14:13:00+01:00 tag:www.econsultancy.com,2008:BlogPost/69164 2017-06-22T14:13:00+01:00 2017-06-22T14:13:00+01:00 Should sales be used to measure the ROI of influencer marketing? James Collins <p>According to research from Linqia, marketers are predicted to spend $50,000 - $100,000 per influencer marketing programme this year (doubled from 2016’s $25,000 - $50,000). If you’re spending big budgets, you need to know why you’re considering influencer marketing as part of your marketing mix, and how you’re going to measure it.</p> <p>This is something many marketers have been aware of for a long time: <a href="https://econsultancy.com/reports/measuring-roi-on-influencer-marketing/">a recent Econsultancy report</a> revealed that measuring ROI on their influencer initiatives is the biggest challenge for 65% of marketers.</p> <p>So what’s stopping marketers understanding the value their influencer marketing activity is driving? There’s already a wealth of research out there on this fiercely debated topic – and there’s one question that comes up time and again: should influencers be judged on sales?</p> <p>The short answer is yes – if that’s what your objective is. To clarify:</p> <ol> <li>It depends on what you want to get out of your campaign. Marketing basics: start with your objectives and determine how you’re going to measure performance from there.</li> <li>As consumers are often exposed to brands and products through influencer marketing at the earlier stages of the buying cycle, measuring the impact on sales across the whole user journey – not just at the last click – is essential.</li> </ol> <h3>What do you want to achieve with your influencer marketing?</h3> <p>Understanding what you want your influencer marketing to achieve will not only shape the tactics used but also how it will be measured. </p> <h3>Raising awareness and reaching new customers</h3> <p>Many influencer campaigns are about awareness and brand positioning. Here, working with brand-relevant influencers that offer the potential of long-term partnerships and ambassadorship is key. Awareness has always been tricky to measure but things are getting more sophisticated. Tools now exist to help brands measure KPIs such as sentiment and share of voice, taking the understanding of performance beyond simple ‘reach’. </p> <p>Logically, brands want to raise awareness among their target audiences – those people who are likely to go on to become customers. One way to measure this is to look at how much new customer web traffic is driven by your influencer campaigns. Rakuten Marketing data shows that 84% of the revenue driven by content publishers (including influencer bloggers) is from new customers, indicating that they are effective at reaching new audiences.</p> <p>This data can then be used to generate positive KPIs, such as cost per new user. These stats can help build a stronger case for influencer activity as an effective means for new customer lead generation. </p> <h3>Engagement</h3> <p>Web traffic in general – whether that’s from new or existing customers – is still a common indicator of success for influencer marketing, with <a href="https://econsultancy.com/reports/the-rise-of-influencers/">The Rise of Influencers report </a>showing that 79% choose it as their most important metric. </p> <p>But how much can just looking at amounts of web traffic really tell you? Not a lot. It’s the action that consumers take once they visit your site that’s truly important. How long do they spend on your website? How many different pages do they visit? Are they visiting high value areas of your site, or did they just bounce and disappear? Measuring the onsite activity of those people referred by influencers gives more meaningful engagement metrics.</p> <p>Measuring engagement is about measuring the impact of your influencer marketing beyond sales and comparing it to other types of marketing. This type of measurement is particularly pertinent for retailers that don’t rely on ecommerce – for example, household brands stocked by supermarkets.</p> <h3>Sales and conversions</h3> <p>All that said, let’s not forget the importance of sales and revenue. Trying to get budget for campaigns that may not have a provable ROI is a huge pain point for marketers. According to another Econsultancy report – <a href="https://www.econsultancy.com/reports/the-new-face-of-luxury-maintaining-exclusivity-in-the-world-of-social-influence">The New Face of Luxury</a> – the biggest challenge to implementing influencer marketing for luxury brands (a key sector taking advantage of influencer marketing) is budget.</p> <p>When budgets become constrained, the activity that can’t be linked to revenue generation is commonly the first to be cut. But, as we’ve discussed, influencer marketing is often about raising awareness through aspirational content, with a view to generating purchases further down the line, rather than pushing immediate sales. </p> <p>Rakuten Marketing data backs up this hypothesis: it shows that content publishers, including influencers, start more converting customer journeys than any other affiliate publisher type. As well as this, of all the revenue driven by content publishers, 54% sits in the first position in the user journey.</p> <p>The visualisation below, based on aggregated data from Rakuten Marketing affiliate clients, shows that social networking and content publishers (two key channels for influencer marketers) commonly appear at the beginning of the user journey.</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0008/6666/affiliate-category-sales-funnel-small.jpg" alt="Affiliate category sales funnel" width="800" height="411"></p> <p>This demonstrates that if you are going to measure influencer marketing using revenue, analysing and reporting on data across the whole user journey, rather than just at the last click, is essential. </p> <h3>Understanding the multi-channel view and seeing incremental value</h3> <p>The need for better attribution to measure influencer marketing was cited as the most common request in eMarketer’s recent Measuring Influencer Marketing guide. This demand is only going to increase in line with the demand for better measurement of the ROI of influencer marketing.</p> <p>Using attribution and analytical tools that provide a multi-channel view across the whole user journey is essential to demonstrating the impact influencers have on sales. Having this view enables performance marketers to understand the value of influencers in the context of their other marketing channels, wherever they appear in the user journey.</p> <p>Even if the objective of your influencer campaigns is to increase brand awareness or engagement, being able to tie those newly engaged visitors back to sales further down the line will help give you the power you need to secure your influencer budget.</p> tag:www.econsultancy.com,2008:BlogPost/69115 2017-05-26T15:09:25+01:00 2017-05-26T15:09:25+01:00 What marketers need to know about Google Attribution Patricio Robles <p>Here's what marketers need to know about it.</p> <h3>It aims to answer the question, "Is my marketing working?"</h3> <p>Marketers can slice and dice their campaign results in any number of ways but at the end of the day, marketers ask themselves a simple question: "Is my marketing working?"</p> <p>Google says that Google Attribution is designed to answer that specific question and boldly claims that "for the first time, [it will be] possible for every marketer to measure the impact of their marketing across devices and across channels."</p> <h3>Google says it solves a number of major attribution challenges</h3> <p>Marketers love the concept of attribution, but making it work in the real world <a href="https://econsultancy.com/blog/68313-marketing-attribution-how-many-are-actually-doing-it/">has proven difficult</a>. Google says that Google Attribution will address a number of the biggest attribution challenges, including difficulty of use,<a href="https://econsultancy.com/blog/68369-five-ways-to-improve-your-cross-device-marketing/"> cross-device tracking</a> and ad tool integration.</p> <h3>It is integrated with other Google offerings</h3> <p>In terms of integration, it's no surprise that Google has integrated Google Attribution with its ads and analytics products.</p> <p>According to Google, Attribution "takes in data across AdWords, Google Analytics and DoubleClick Search without any additional tagging," and "results are immediately available for reporting, updating bids or moving budget between channels."</p> <h3>It uses machine learning to enable data-driven attribution</h3> <p>As one of the world's most innovate tech companies, Google has invested significantly in machine learning and Google Attribution uses some of the company's machine learning tech to enable data-driven attribution. What is that? The company explains:</p> <blockquote> <p>Data-driven attribution uses machine learning to determine how much credit to assign to each step in the consumer journey -- from the first time they engage with your brand for early research down to the final click before purchase. It analyzes your account's unique conversion patterns, comparing the paths of customers who convert to those who don’t, so you get results that accurately represent your business.</p> </blockquote> <p>For marketers still relying on last-click attribution, the data-driven attribution model could provide a beneficial new perspective that helps them allocate marketing spend more wisely.</p> <h3>Google is making a big push to track offline store sales</h3> <p>Google Attribution will give marketers access to store sales measurement at the device and campaign levels. Marketers whose companies collect email information at the point-of-sale can import store sales data into Google AdWords, but Google isn't stopping there.</p> <p>To track offline sales more broadly, Google has established relationships with firms that it says give it access to data for 70% of credit and debit card transactions in the United States. Google will use this data to aggregate and anonymize store sales and provide it to marketers even if they don't report sales data to Google.</p> <h3>There are privacy concerns</h3> <p>Not surprising, the fact that Google has partnered with firms giving it access to data for billions of credit card transaction has caused numerous observers to speak out about the privacy implications of Google Attribution.</p> <p>To counter privacy concerns, Google says its partnerships give it access to spending data only, not transaction details like products purchased, and the search giant revealed that it developed a "new, custom encryption technology that ensures users' data remains private, secure, and anonymous."</p> <p>Whether that is enough to allay fears that Google is collecting too much data remains to be seen.</p> <h3>It is free</h3> <p>Last year, Google unveiled Google Attribution 360, a paid attribution solution, that targets large marketers. The newly announced Google Attribution platform, on the other hand, will be free, making it an attractive option for marketers at small and mid-sized businesses already using Google's ad services.</p> <h3>Some marketers are skeptical</h3> <p>On paper, there's a lot to like about Google Attribution, but some marketers are already expressing skepticism about the offering. </p> <p>As Jason Beckerman, the CEO of Unified, which operates a business intelligence platform, <a href="https://digiday.com/marketing/no-real-separation-church-state-marketers-skeptical-googles-new-attribution-tool/">told</a> Digiday, "there’s no real separation of church and state." He elaborated:</p> <blockquote> <p>If [Google's] competitors end up having higher return on ad spend, it could put Google in a tough spot. Google wants to become one-stop shop for marketers and own their marketing. It has got too much skin in the game.</p> </blockquote> <p>While such concerns are not without merit, given that a significant percentage of every new dollar directed to digital ad spend is going to Google, it would appear that many marketers have already decided to make themselves dependent on Google. For these marketers, adopting tools like Google Attribution might not require such a huge leap of faith, especially if they see it as an improvement over their existing attribution efforts.</p> tag:www.econsultancy.com,2008:BlogPost/68983 2017-04-11T13:05:00+01:00 2017-04-11T13:05:00+01:00 You're (still) not tracking CPA properly and here’s why Depesh Mandalia <p>Every business for decades has struggled with two common things: which channels to focus marketing spend on and how much return every dollar spent returns. This isn’t as simple a question as it may initially look.</p> <p>Marketing channels have evolved hugely since television, radio and print ads were key ways to reach a mainstream audience. Despite the advancement in tracking technology and ad platforms, the question of how best to utilise each marketing dollar remains a challenge, even for the most advanced marketing operations and platforms (despite what they tell you) and here’s why.</p> <h4>Scenario 1 - a customer sees an ad in a single channel and purchases there and then</h4> <p><strong>CPA challenge:</strong> ensuring there is tracking in place, which for digital is usually in the form of digital analytics and for offline is primarily in the form of promotion code.</p> <p>How often does this scenario occur? There will be a good percentage of your acquisitions that only ever see your one ad on one platform or through a single medium and decide to buy all within the same ‘session’. For clarity we define a session here as a stream of events all happening one after the other.</p> <p>For simplicity I'm focussing on a visit to a website as the journey to complete a transaction (as opposed to a shop visit or app download via an app store). So:</p> <ol> <li>Customer sees ad</li> <li>Customer clicks/responds to ad</li> <li>Customer visits website and adds item to cart</li> <li>Customer buys item</li> </ol> <p>In this scenario, the customer does this without a break to browse other sites or coming back later. For a business with limited brand and product awareness, it is less likely that someone will see an ad for the first time, click <em>and</em> buy in one go.</p> <p>Of course, we marketers would love to think our ads are spot on <em>and</em> the target audience have been reached in one hit <em>and</em> that audience is in the mindset to buy <em>and</em> they visit your website <em>and</em> buy without even thinking about other important things in their day like what's for dinner or the latest cat gif on Facebook.</p> <p>There are also factors around trust which affect consumer behaviour - trusting how legit the company and website is, whether the product quality can be trusted, whether the product price is going to be the best you can get etc.</p> <p>What kind of company has enough <a href="https://econsultancy.com/blog/66013-brand-activation-and-its-role-in-driving-consumer-engagement-and-awareness/">brand awareness</a> and product range association that seeing a single ad will prompt you to both trust the business and purchase in one go? Amazon comes to mind as a company that can do this, as may other well established businesses, where the consumer is fully trusting of the brand and broadly aware of the product range. But how quickly do you need to increase sales? And how long have Amazon taken to establish themselves?</p> <p>Trusting that a company like Amazon aren't going to defraud you, are going to deliver your product, and are going to deliver a known quality - these are questions which for most people are answered on the Amazon site or through strong brand association. You, the smaller brand, simply can't match that.</p> <p>Chances are that if your data suggests that a given transaction occurred from the first ad the customer saw in the same session, there's something else at play. Let's look at scenario 2.</p> <h4>Scenario 2 - a customer sees an ad, doesn’t interact, but comes back later to buy from you via the website directly <em>or</em> via another marketing channel.</h4> <p><strong>CPA challenge:</strong> tracking the <a href="https://econsultancy.com/reports/the-state-of-marketing-attribution/">attribution</a> of the source channel due to the lack of connection to the final conversion channel. </p> <p>This is a very common (if not the most common) scenario and essentially how brand-led campaigns make their mark by creating an uplift on trackable channels. In this scenario a customer will see an ad, for example on TV, outdoor display, a leaflet, print ad or even digitally such as Facebook or Youtube as follows:</p> <ol> <li>Customer sees ad</li> <li>Customer doesn’t interact with ad</li> <li>Customer visits website directly at a later time/date and adds item to cart</li> <li>Customer buys item. Ka-ching! </li> </ol> <p>If you’ve ever run or been involved in a brand campaign you’ll know what a struggle it can be to truly measure the impact of the campaign on bottom line numbers. As a performance marketer you’ll know how fluffy ‘brand awareness’ can seem as a metric.</p> <p>To fully measure brand impact requires many more tools such as a brand impact test which measures trackable channel performance with and without the brand campaign, baselining your organic/non-paid channels to measure uplift and things like <a href="https://econsultancy.com/reports/paid-search-marketing-ppc-best-practice-guide/">paid search</a> brand keyword uplift in particular.</p> <p>That being said, not every 'brand campaign' is big budget, massive exposure stuff. Every supermarket carrier bag shows branding at play. Every time you read a newspaper with the logo facing outward branding is at play. Branding plays a big part in our everyday interactions with companies, whether we notice it or not. And as a marketer, the impact of brand awareness is often neglected when calculating the ROI of your dollar spend.</p> <p>If you’ve scaled a business, you’ll know the importance brand plays in creating the foundation for sustainable growth. Sustainable growth is that which doesn’t rely on any single marketing channel (eg Facebook ads) and has a good blend of non-paid acquisition acquisition channels.</p> <p>Scaling a business solely focussed on the hard metrics of spend, sales and CPA will hide the subliminal impact your marketing is having, like how <a href="https://www.simplypsychology.org/pavlov.html">Pavlov had his dogs salivating</a> at the sound of a bell, or how those that have dined there, have an instinctive, <a href="https://www.psychologytoday.com/blog/you-illuminated/201108/7-reasons-we-cant-turn-down-fast-food">uncontrollable reaction to seeing the Golden Arches</a> through the release of dopamine.</p> <p>Find me a direct response ad that can release dopamine better than a well placed brand campaign. Are you tracking the DU (Dopamine Uplift) of your marketing campaigns? Surely this will trim your CPA by a percentage or two, yet we're often having to make budgeting decisions based on the reaction of the rational brain when neuroscience studies confirm the unconscious, deep thinking part of your brain as being a key driver to decision making, including what and where we buy.</p> <p>The brand funnel is about creating awareness in defining your <a href="https://www.startwithwhy.com/LearnYourWhy.aspx">‘who’ and ‘why’</a> - who you are and who you are relevant is what creates meaning and connection to your target audience. Too often, businesses focus on what they do, completely bypassing the customer need. This is a typical sales-led approach to growth and not a customer-centric view.</p> <p>It is the channel CPA-centric view that drives marketers and businesses to focus heavily on what they do and this isn't what your target audience will primarily care about. Give them a reason to not just be interested, or to like you, but to love you as a brand and watch those CPAs fall. </p> <h4>Branding 101</h4> <p>Below is a good illustration of the brand journey and impact on your acquisition funnel - moving from a wide audience, some of which are not your target consumer, and funneling those that are toward your business.</p> <p>As a business, if your audience is everyone, then whilst your product may well cater for every single person you can market to, until you create relevance for that person you’ll struggle to help them determine how your product improves or complements their life. This is the role of brand marketing, to sift out non-consumers and attract potential consumers from a wide funnel of prospects.</p> <p>The ‘indifference’ stage noted in the diagram refers to the fact these people have no positive or negative opinion on the business.</p> <p><img src="https://assets.econsultancy.com/images/0008/5367/1.jpg" alt="brand funnel" width="400" height="295"> </p> <p><em>Via <a href="https://www.linkedin.com/pulse/demystifying-brand-funnel-sean-kelley">Sean Kelly on LinkedIn</a></em> </p> <p>The relevance of this user journey scenario is this: whilst you may measure and try to improve acquisitions that come through to the website or through brand searches, do you really know what the first interaction for that customer was? If not, then deciding where to place that next dollar is not going to be entirely fact or numeric based.</p> <p>As a Chief Marketing Officer your growth decisions need to rely on a variety of datasets to analyse impact, performance and future actions.  </p> <h4>Using multi-data points for indirect attribution analysis</h4> <p>An important and often used piece of attribution analysis is a question asked to customers after the point of purchase: "how did you hear about your us?".</p> <p>Don't underestimate the importance of this simple question. Although we have the ability online to track the channel from which a visitor landed on a website (eg search engine, facebook, youtube, affiliate etc through web analytics), this question gives us a valuable first-touch data-source for channels which we can’t track so well such as TV and print media.</p> <p>In the case of ecommerce companies, many rely on promotion codes in order to track the marketing source but in this scenario, where a customer has seen an ad in one source and purchased via another source, you’ve lost the originator marketing channel.</p> <p>For example if you distribute leaflets and a customer sees one, then goes online and purchases through an affiliate code, you have no concept of the performance of the leaflet and may make the incorrect decision to stop distribution of inserts due to low uptake. </p> <p>At toucanBox we use a post-transaction survey to ask customers how they heard about us at the point at which we are front of mind. The reason to have this in the checkout confirmation page and not in the confirmation email or later is because it would otherwise only serve to dilute the quality of response.</p> <p>The positive impact brand awareness has is best demonstrated when we look at TV advertising performance. We have a certain CPA target we are aiming for and use a promotion code on <a href="https://www.youtube.com/watch?v=CMy9bFitXBM">the TV ad</a> to help us track customers coming directly via the TV ad. However, if we follow scenario 1 above and assume all customers that see the TV ad, will come <em>directly</em> to the website, our CPA looks quite astronomical and unprofitable. Decision? Let’s trash TV it clearly doesn’t work! Ah but if you add additional data points, it tells a very different story. </p> <p>If we look at just one of our many paid search keywords related to brand searches (see below), we see that there was a rise and fall of searches on that particular keyword when we ran TV advertising in February, denoted by the rise, peak and fall which correlates with TV spot timings. This gives as an additional attribution back to TV because the increase in paid search hits for this one keyword can be directly matched back.</p> <p>We analysed all brand keywords that we could track, alongside those people directly visiting the website and those coming through non-paid search and found similar patterns. The uplift in visits also correlates with an uplift in transactions confirming both volume and quality of TV impact for this keyword.</p> <p><img src="https://assets.econsultancy.com/images/0008/5374/2.png" alt="keyword uplift from tv" width="800">  </p> <p>Now if you tally up the additional sales TV brought in as the originator channel into the trackable channels (brand paid search, organic search and direct visits) the combined CPA comes in within target. The correct decision therefore based on this data is to continue with TV advertising. I may not know the complete, numerical positive impact TV has across all channels but I can be convinced with this data that it is worthwhile. </p> <p>Another data point we used was the post-transaction survey mentioned earlier. In response to ‘how did you hear about us’ we gave some relevant options such as TV, print, search etc. When analysing the data for the same period, the majority selected ‘TV’, which was of course great news but unsurprising.</p> <p>However where this was even more interesting was matching this back into Google Analytics as an event and analysing those that said they heard of toucanBox via TV and the final channel they converted on. Through this we also found TV impacted sign ups that came via Facebook ads, online partnerships and affiliates.</p> <p>Essentially we added a layer that analytics tools cannot yet add - where did they remember seeing or hearing about the brand first? This is important because we're looking for the trigger ad that prompted them to move from the indifferent stage to the like stage for the brand.</p> <p>TV for toucanBox had played an even bigger part in uplifting the entire marketing mix. Without the additional data points, a singular view of CPA and attribution would have led us to making the wrong decision and hindered growth. </p> <h4>No surprise, CPA tracking is still an issue </h4> <p>Despite this level of insight and understanding, can we answer how best to place every single marketing dollar?</p> <p>No we can’t, because the true CPA of every channel, considering what percentage of the customer journey each channel contributed, is a thing of data science beyond the scope of this article. You can search for and sift through <a href="https://www.google.co.uk/webhp?sourceid=chrome-instant&amp;ion=1&amp;espv=2&amp;ie=UTF-8#q=multi+channel+attribution">tens of thousands of articles</a> written on this subject in the last 5-10 years yet we’re still not able to 100% define a true CPA.</p> <p>The challenge is that typical tracking of budget and transactions, from channel to channel, device to device, across web analytics and crucially your customer database rarely match up. This occurs because of how each tracking system sees the view of a single transaction.</p> <p>If a customer visits the site from a Facebook ad, based on the attribution window you are looking at Facebook will record it as a transaction via Facebook, regardless of whether that person converts subsequently via another channel or not. Analytics tools such as Google Analytics register the last channel the customer came through and although GA offers a way of <a href="https://www.kaushik.net/avinash/multi-channel-attribution-modeling-good-bad-ugly-models/">viewing multi-channel attribution</a>, at best some marketers and analysts are still inexperienced with how to use it for budget decision making and at worst are not even aware it exists.</p> <p>GA will also often under report against what your customer database shows due to cookie/tracking issues and so as a marketer it is a constant struggle to optimise channels, marketing-mix and internal KPI reporting. The screengrab below is a typical view of what our customer journey might look like from first click to last. Quite the journey. And if last click was all we went on, we might ditch email or organic search from our marketing mix.</p> <p><img src="https://assets.econsultancy.com/images/0008/5375/3.png" alt="attribution" width="800"></p> <p>Whilst at toucanBox we are highly data-driven in our marketing analysis and decision making, we’re also in fast-growth stage and so require a balance between data accuracy and growth agility which often increase inversely. Making decisions on hard, measurable data points isn't enough to make a fully qualified decision to assigning the true CPA for a given campaign or a channel.</p> <h4>So after all of that, how exactly do you evaluate the return on your dollar spend? </h4> <p>The simple answer is through complex data modelling, tracking and attribution. Well no, actually the simpler answer is you don’t.</p> <p>Instead marketers will often take stock of a blended view of marketing in order to determine the success of a campaign. If tracking and accounting the return from every dollar is your priority (and there's no reason it shouldn't be) then you will need to have the time and resource available to create a system which at best, will get you close to answering this.</p> <p>However if you’re a fast-growth company looking to make the the next best decision to that, on how your marketing performance stacks up, then a combination of in-channel optimisation to get the best from your macro metrics such as cost per click (CPC) and clickthrough rate (CTR) on top of a blended view of marketing performance might just get your growth machine whirring that much faster.</p> tag:www.econsultancy.com,2008:BlogPost/68665 2017-01-04T01:00:00+00:00 2017-01-04T01:00:00+00:00 Three keys to digital advertising success in 2017 Jeff Rajeck <p>Some the changes which have been covered extensively include: </p> <ul> <li> <strong>Platforms</strong> - some which have risen (hello Snapchat) and others, fallen (Meerkat, RIP).</li> <li> <strong>Header bidding</strong> - which has become a significant challenger to traditional ad exchanges.</li> <li> <strong>Advertising on messaging apps</strong> - which is tipped to bring big changes to the ad market.</li> </ul> <p> At Digital Cream Singapore, we spoke with dozens of client-side marketers about these changes and how they affect their agenda for the coming year. </p> <p>Surprisingly, though, <strong>most brand marketers were less concerned about the latest technology or platforms and </strong><strong>more worried about how they will use digital advertising to deliver value to the business. </strong></p> <p>To make that happen, participants on the day identified three things which they consider as priorities if they are to bring success in the coming year.</p> <h3>1) A single view of the customer</h3> <p>Attendees felt that most organisations have plenty of customer data. Nearly everyone has a CRM with customer attributes, most use web analytics to capture on-site user behaviour, and now a significant number have implemented a data management platform to understand what their customers do on other sites.</p> <p>The problem for marketers, though, is that customer data is spread across several systems. As a result, it is difficult to join up the data and obtain a single view of the customer which links their attributes, interests, and behaviour.</p> <p>Participants felt that fragmented customer data is particularly problematic for digital advertising. As digital ad platforms need data for segmenting, targeting, and positioning, marketers without a single view of the customer are not able to exploit opportunities and deliver the best value to the business.</p> <p><strong><img src="https://assets.econsultancy.com/images/0008/2647/3.jpg" alt="" width="800" height="533"></strong></p> <p>One technology which helps marketers obtain a single customer view is a <strong>'customer data platform' (CDP)</strong>.</p> <p>A CDP is a system which:</p> <ul> <li>Combines data from multiple sources.</li> <li>Lets marketers build customer profiles.</li> <li>Delivers messaging across multiple platforms.</li> <li>Uses decision-making algorithms to optimize performance.</li> </ul> <p>While CDPs sound promising, they are relatively new and so marketers will need to conduct more research before they are widely-deployed.</p> <p>More information about CDPs is available <a href="http://customerexperiencematrix.blogspot.sg/2015/01/customer-data-platforms-revisited.htm">here</a> and a list of vendors is available via the <a href="http://www.cdpinstitute.org/">CDP Institute</a>.</p> <h3>2) A cross-market ad buying strategy</h3> <p>Another issue client-side marketers hope to solve in 2017 is how to buy ads programmatically across different markets.</p> <p><strong>The problem marketers face is that different countries usually have different ad platforms</strong>. Marketing managers struggle with becoming familiar with each of them in order to train the regional teams.</p> <p><strong>Some participants avoid this issue by relying solely on the 'ad duopoly', Google and Facebook</strong>, to cover multiple markets. Others, however, find this approach limiting and feel compelled to use additional programmatic platforms to reach more consumers.</p> <p><img src="https://assets.econsultancy.com/images/0008/2648/5.jpg" alt="" width="800" height="533"></p> <p>Another issue raised was that <strong>Asia-Pacific does not have many third-party measurement services</strong> which help them avoid bot fraud, fraudulent inventory, and unviewable ads. This was particularly a problem for advertisers who operate in China.</p> <p>Delegates offered few ideas into what managers can do about this besides upgrading ad-buying technology and ensuring that regional marketers keep a closer eye on local ad networks.</p> <p>According to a 2016 <a href="https://www.exchangewire.com/bidswitch-report/">BidSwitch survey of buy-side technology firms in Asia-Pacific</a>, the problem isn't going away soon - and indeed may get worse. Nearly half (45%) of respondents indicated that <strong>there will be more programmatic technology companies in APAC over the next three years.</strong></p> <p><img src="https://assets.econsultancy.com/images/0008/2646/graph.png" alt="" width="800" height="517"></p> <h3>3) An attribution model</h3> <p>Finally, the most frequently-discussed item on the digital advertiser 'wish list' for 2017 was marketing attribution.</p> <p>Having an agreed method for attributing marketing success to different channels has eluded most marketing teams, participants noted. The issues they face include: </p> <ul> <li>Obtaining the view and click data from all of the channels.</li> <li>Calculating the value of each touchpoint.</li> <li>Using the model to dictate media spend.</li> <li>Understanding of the customer journey.</li> </ul> <p><img src="https://assets.econsultancy.com/images/0008/2649/4.jpg" alt="" width="800" height="533"></p> <p>One delegate said that<strong> their marketing team overcame some of these issues by implementing a 'fluid' attribution model</strong>. Their approach was to have all stakeholders meet regularly, review ad performance data and, based on hard data, adjust the attribution model appropriately.</p> <p>While not perfect,<strong> introducing flexibility into the model reduced the stakes for all parties as nothing was 'fixed in concrete'</strong>. This, in turn reduced the politics around adopting a model and led to quicker acceptance.</p> <p>Still, many attendees felt that they did not yet know enough to develop an attribution model and so 2017 was going to be another year of learning.</p> <h3>A word of thanks </h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and the moderator for the Online Advertising table, <strong>Stephanie Myers, Senior Vice President of Digital Marketing at HSBC.</strong></p> <p>We hope to see you all at future Singapore Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/2650/end.jpg" alt="" width="800" height="533"></p> tag:www.econsultancy.com,2008:BlogPost/68635 2016-12-13T15:09:00+00:00 2016-12-13T15:09:00+00:00 The secrets of elite analytics practices: Report Arliss Coates <p>Today we're expanding on those insights with commentary from top marketers on the power of measurement.</p> <p>In this, the first of two long reads, we explore how analytics is revealing opportunities in a complex customer journey and what tactics are winning out.</p> <p>We'll also be exploring its limitations and hearing how these senior marketers plan to overcome this challenge.</p> <h3><strong>Building brand responsiveness into the customer journey</strong></h3> <p>Channels and platforms are multiplying and marketers are struggling to describe that journey, much less follow it. The terms customer journey and purchase funnel imply a linear progression, the reality is that it's anything but.</p> <p>In an effort to reflect today's "always on, everything everywhere" customer behavior, various alternatives have been proposed including a customer journey circle, a loop and even a fish.</p> <p>What is clear from our research is that the majority of marketers believe understanding this customer journey is a work in progress. Less than a third of respondents to the IBM/Econsultancy August 2016 survey stated that they had a thorough, up-to-date view of the customer journey.</p> <p>Having plunged headlong into the digital universe, marketers are finding that channels clamor for acknowledgement but their teams and tools aren't up to the attribution task. It can often feel like the customer is moving too fast for them.</p> <p>Thoryn Stephens, head of data at American Apparel states: "I'm a strong advocate of multi-touch attribution, but it's really hard for businesses to go from a first and last touch culture to MTA. It doesn't happen over night."</p> <p>And therein lies the problem. Stephens adds: "As <a href="https://econsultancy.com/blog/67203-data-analysts-vs-data-scientists-what-s-the-difference/">a data scientist</a> and technologist, I'm of the firm belief you cannot manage what you can't measure."</p> <p>Jim Sprigg, Head of CRM at IHG hotels, is one of the lucky ones: "Because we know who the customer is on every channel, we're really focused on understanding the impact of messages and content.</p> <p>"We've figured out a way to test across all channels and most companies haven't figured that out."</p> <h3><strong>Approaching the journey analysis task</strong></h3> <p>So it's clear that until brands have an understanding of how their customers behave across the various touch points, it's going to be difficult for them to serve them effectively.</p> <p>It sounds like marketers have a gargantuan task ahead of them. The question now should be "where to begin?"</p> <p>In this case, our research revealed what components of customer journey analysis top performing companies excelled at. It was salutary that the lower performing companies naturally engaged with these components far less.</p> <p>The top two were understanding the source of the customer - marketing channel or referral, etc. - and discovering their preferences of product, contact method, content and so on.</p> <p>For companies struggling to embed customer journey analysis, it's a question of gathering in information wherever it is to be found but prioritizing its use to manage the scale of the task.</p> <p>IHG's Sprigg outlines his process: "We have to be deliberate about it and take whatever information is available. We use cunsumer insights from primary research, the types, needs and perceptions of customers.</p> <p>"Then we can bring in performance analysis and make inferences from that."</p> <h3><strong>Prioritizing investment in the top of the funnel</strong></h3> <p>One of the problems is that understanding customer preferences and catering to them may be an essential part of starting that brand relationship with them, but it is far removed from the point of conversion.</p> <p>Marketers are struggling to link understanding the customer journey directly to ROI which, in view of revenue-focused business goals, de-prioritizes it.</p> <p>"Most of the conversations around return on investment are in the digital channel and justifying expenditure [diverting from TV]," explains Rex Jackson, VP of marketing and sales at Legoland Florida Resort.</p> <p><img src="https://assets.econsultancy.com/images/0008/2396/legoland_florida.png" alt="" width="836" height="401"></p> <p>"We have awareness tactics and conversion strategies. The latter is closely related to ROI but the former is more difficult to tie in as it's further up the funnel."</p> <p>Jackson's answer to this challenge is to break their KPIs up into awareness and conversion and having different ROI measures attached to each, based on where the customer is in their purchase journey.</p> <p>Marketers need to be more intelligent about understanding the contribution customer journey analysis makes to the end goal.</p> <p>Our research revealed that brands we would consider "elites" in the analytics space said that understanding where and when problems arise were the two most powerful results of their analytics capability.</p> <p>This was far above (63% vs. 27%) the much vaunted 'understanding customer behavior'.</p> <p>Interestingly, the situation was reversed when it came to laggard companies who valued customer behavior and gleaning customer knowledge far above understanding where problems arose (40%/47% vs. 7%). </p> <p>"I always start with the challenge - where can you drive value and from there, align the solution," Stephens summarizes.</p> <h3><strong>Bring information and strategic need together</strong></h3> <p>"Funnel analysis and where it breaks down is extremely important, however even more important is talking to your customer and understanding their needs or what's important to them," says Brian Streich, former CMO at StubHub and now head of growth at Vacatia.</p> <p>For marketers struggling to embed customer journey analytics into the organization, these findings would suggest that an excellent place to start is to begin with understanding where customers are coming from, their preferences and where the pain points in the experience are.</p> <p><img src="https://assets.econsultancy.com/images/0008/2394/vacatia.png" alt="" width="800" height="404"></p> <p>We have already stated in the report that friction is the most important force in the physics of online commerce, but perhaps even more important for brands is to take the time not just to fix but explore where the friction is happening.</p> <p>To borrow from former Secretary of Defense Rumsfeld, there are known unknowns and unknown unknowns. Some of your most damaging friction points may still be invisible.</p> <p>"At Vacatia, one of our most popular features is FlexPay. We offer guests two ways to pay over time. When we asked our guest care team for feedback on what it was they thought got guests over the hump to book, they all said FlexPay."</p> <p>"But when we looked at our experience, we didn't really talk about it anywhere. Often guests only found out about it because they called us to ask about something else. This insight led us to make that feature more prominent through the site. Immediately, our conversion and use of FlexPay went up."</p> <p>Sometimes friction is clearly reduced by clearly communicating to customers what it is you already have but don't fully understand the importance of."</p> <h3><strong>Staying in context</strong></h3> <p>The problem with advocating laser focus on the consumer is that while you're busy optimizing experiences at an individual level, changes also have to be relevant at an audience level.</p> <p>IHG's Sprigg conducts optimizations at control group level but these are not isolated events. His analytics and optimization process is a series of test and learn opportunities that are plugged in across the whole specturm from single channel and segment level to a company and audience-wide reach.</p> <p>"We're trying to define the solution we want to build with multiple layers of testing. We will have control groups that define what a customer sees across all channels over time but will also have a control focusing on a single channel.</p> <p>"We score long-term content, we score short-term content. We then come up with a way to combine these scores and map out what the experience will look like once there is a framework in place. It's a multi-layer optimization."</p> <p>For Lego Resort's Jackson, this means taking a layer of insight deep enough to launch a range of campaigns and optimize down to audience preferences, after the fact: "The single biggest change I've seen is that optimization allows me to spend less time tweaking and optimizing creative on the front end, before customer exposure.</p> <p>"Instead, it allows us to place a variety of creatives into the market and then allow optimizations to happen in real time as we discover which resonates more."</p> <p>Sprigg suggests that failing to build insights out to an audience level is down to approaching the task from the wrong direction.</p> <p>The figures bear out his argument. Our research showed that companies with a powerful capability to translate individual issues to an audience level (the top 21% percent of the sample) had average conversion rates 136% higher than those with less sophisticated capabilities.</p> <h3><strong>Managing the customer journey for growth</strong></h3> <p>Customer journey analytics is clearly the bedrock for brands' future growth but it continues to pose challenges for marketers.</p> <p>There may be no shortage of data flowing into the organization but maintaining consistency across channels and tying the information to specific customers is a task many have yet to master. But with contextual personalization and people-based media both dominating the conversation, it's a something brands will have to rise to.</p> <p>In the second of our long reads on embedding customer analytics into the company, we will be looking at some of the organizational and infrastructural changes marketers are having to make to adapt both culturally and technologically to the demands of new data.</p> <p><em>This post was co-written by Morag Cuddeford-Jones.</em></p> tag:www.econsultancy.com,2008:BlogPost/68633 2016-12-13T11:17:11+00:00 2016-12-13T11:17:11+00:00 How Britain's favourite brands are attracting consumers this Christmas James Collins <p>Our recent research revealed that <a href="https://econsultancy.com/blog/68590-10-dazzling-digital-marketing-stats-from-this-week/" target="_blank">Marks &amp; Spencer is the UK’s favourite Christmas shop</a>. Of the 2,000 consumers we surveyed, 28% said they will spend the most on gifts at M&amp;S this month, with Boots, John Lewis, Next and House of Fraser making up the rest of the top five.</p> <p>Attracting Christmas shoppers pays off for these brands, and not just in the short term. Our survey also revealed that 84% of UK shoppers plan to carry on spending in their chosen stores after the Christmas season has ended.</p> <h3>The modern consumer journey</h3> <p>The top five brands are ones which UK shoppers have known and loved for a long time. Although the stores aren’t new, their methods of attracting customers have changed dramatically since the stores were founded.</p> <p>These changes have been driven by the transformation of consumer behaviour. According to research by Webloyalty &amp; Conlumino, the average consumer typically used around two touchpoints during their path to purchase in the year 2000. By 2015, this had increased to around five.</p> <p><img style="vertical-align: middle;" src="https://assets.econsultancy.com/images/0008/2364/christmas-shoppers-on-smartphone.jpg" alt="Christmas shoppers on smartphone" width="800" height="450"></p> <p>Shoppers are interacting with more touchpoints across more marketing channels and devices than ever before.</p> <p>But which of these is having the biggest impact on consumer choice, and how are Britain’s favourite brands making the most of it?</p> <h3>The famous Christmas TV ad campaign</h3> <p>Despite the big budgets and hype, our research found that only 27% of people make a purchase based on brands’ TV adverts alone.</p> <p>This may seem a small percentage in return for the huge investment in TV ads, but no channel performs in a silo. As multi-device ownership increases – according to the IAB’s 2015 Full Year Digital Adspend Results, there are an average of 8.3 connected devices per home – the ways to reach consumers increase too.</p> <p>For a TV advert to be most effective, it must be part of a multichannel campaign delivering consistent messaging across channels and devices. </p> <p>John Lewis – whose Christmas campaign is often the most talked about – is taking this multichannel approach seriously, <a href="https://econsultancy.com/blog/68512-john-lewis-combines-tv-ad-with-snapchat-lens-and-email/">combining both on and offline experiences</a>.</p> <p>Buster the Boxer soft toys and picture books are on sale, and the brand has partnered with Snapchat to produce a custom filter, created bespoke Twitter stickers, and offered an Oculus Rift VR experience in the Oxford Street flagship store. </p> <p>The brand’s creative multichannel approach pays off. Speaking before the release of this year’s campaign, John Lewis’ head of marketing, Rachel Swift, said that the Christmas TV ad campaign is the store’s most profitable return on investment. </p> <p><iframe src="https://www.youtube.com/embed/sr6lr_VRsEo?wmode=transparent" width="560" height="315"></iframe></p> <h3>Advice from friends and family</h3> <p>Our survey found that 31% of people listen to advice from friends and family about where to purchase Christmas gifts from.</p> <p>Social media is the modern equivalent of word of mouth. Today’s brands understand the importance of using social media as part of a multichannel campaign.</p> <p>For example, M&amp;S has ‘Mrs Claus’, the star of its TV ad, taking over its Twitter account, has created the hashtag #lovemrsclaus, and has even designed its own Mrs Claus emoji.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">A delightful morning full of giving (and receiving) awaits. Stay tuned... <a href="https://twitter.com/hashtag/LoveMrsClaus?src=hash">#LoveMrsClaus</a> <a href="https://t.co/au6wzme7AC">pic.twitter.com/au6wzme7AC</a></p> — M&amp;S (@marksandspencer) <a href="https://twitter.com/marksandspencer/status/806770300905848833">December 8, 2016</a> </blockquote> <p>According to Waggener Edstrom, from 4–20 November 2016, M&amp;S clocked up 43,376 mentions across social media, second only to John Lewis (which had a huge 203,199).</p> <p>Again the scale of the social buzz surrounding these big campaigns helps hammer home the importance of creating a campaign that is active across multiple channels.</p> <h3>Browsing a retailer’s own website</h3> <p>Our survey results also showed that 33% of shoppers browse a brand’s own website to help them decide where to buy gifts. So, it’s essential to make sure people can navigate around your site easily.</p> <p>Next’s online Christmas store is a prime example of so many retail websites at this time of year – there’s an obvious Christmas section in the main navigation, ‘gifts for…’ category pages, Secret Santa guides, the list goes on. It’s easy for consumers to find what they’re looking for in whatever way that suits them.</p> <p>But this on-site experience is only beneficial if people are actually visiting your website in the first place. Attracting relevant traffic isn’t just about the short term tactics, like <a href="https://econsultancy.com/blog/68573-seven-examples-of-black-friday-email-marketing-from-retailers/">the barrage of Black Friday emails</a> we experienced last month.</p> <p>Campaigns that focus on the long term, like partnerships with relevant blogs and online magazines, can help you attract more of your target customers over a longer period of time. </p> <p>The tricky thing is measuring the impact of campaigns like this. If a customer reads your Christmas gift guide on their favourite fashion blog and then visits your website a few days later, last-click measurement won’t acknowledge the contribution of the content campaign. </p> <p>Brands, including some of those in our top five, are moving towards attributed measurement to help them understand the value of marketing channels that appear earlier in the user journey.</p> <p>House of Fraser, for example, saw an 83% rise in the number of affiliate touchpoints awarded commission when it moved away from the last-click model.</p> <p>This view of the full user journey allowed House of Fraser to recognise the touchpoints that were driving customers to its website on a longer term basis.</p> <h3>Saving money with vouchers and loyalty schemes</h3> <p>Finally, we found that 44% of consumers are encouraged to buy from a store if they know they can use a voucher code, and 23% are persuaded by the chance to build up loyalty points.</p> <p>Boots is a great example of a store that uses vouchers and loyalty points well. You can quickly find offers on voucher and cashback sites, the brand’s Advantage Card is extremely popular, and its 3-for-2 offers at Christmas practically fill the store.</p> <p>Typically, online vouchers are associated with short-term gains at the last click – arguably perfect for the Christmas push. But it’s important to understand the incremental value that vouchers offer.</p> <p>As our survey shows, they can prompt shoppers to choose one brand over another. Vouchers can also add value across the whole user journey: We found a 22% uplift in revenue from voucher sites when taking earlier touchpoints into account, rather than just last click.</p> <p>So, we’ve seen that the modern consumer journey is complex. Christmas shoppers are influenced by lots of different touchpoints – there’s no one channel that trumps them all. The UK stores that win the Christmas retail battle are the ones that target their audience across all the relevant channels available to them.</p> <p>The brands that truly win at this time of the year, however, are the ones that understand the importance of <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">lifetime value</a>. Attracting customers and encouraging them to buy Christmas gifts is only the first step.</p> <p>Retailers that succeed are those that use their data cleverly to help them make the most of the 84% of Christmas shoppers who intend to shop at their chosen store again – and attract as many of the remaining 26% as possible.</p> <p>Having a rounded understanding of the user journey, and the many touchpoints that users encounter both pre- and post-purchase, allows you to test and discover what messages to use – and when – to encourage more customers to return again and again.</p> tag:www.econsultancy.com,2008:BlogPost/68589 2016-12-02T01:01:00+00:00 2016-12-02T01:01:00+00:00 Five essential ingredients for digital marketing success Jeff Rajeck <p>Ideas about how marketers should optimize their time are scarce as well. Some departments use KPI frameworks to 'cover all of the bases' while others simply do what the business asks them to do.</p> <p>To find out what marketers themselves think about what makes digital marketing successful, Econsultancy recently hosted a roundtable workshop with <a href="https://www.ibm.com/watson/marketing/">IBM Watson Marketing</a> in Mumbai, India.</p> <p>Senior client-side marketers from a wide variety of industries were invited and asked to come up with<strong> ideas about</strong> <strong>what a digital marketing department should do to increase customer engagement and boost brand loyalty.</strong></p> <p>Below are the five key topics discussed along with details about why these are the 'ingredients' for digital marketing success.</p> <h3>1. Integration</h3> <p>Participants on the day were emphatic that integration was essential for one main reason, consistent messaging.  </p> <p>They felt that without integrating channels, brands risk posting one message on, say, the website, and not following through with it on another, like social media.</p> <p>Integration also helps with customer experience in a couple of ways.  First, off, <strong>integrating channels ensures that the customer has a single view of the company and it helps the company get <a href="https://econsultancy.com/blog/65425-what-is-the-single-customer-view-and-why-do-you-need-it/">a single view of a customer</a>. </strong></p> <p>Attendees noted that a single view is useful for messaging, but even better for providing appropriate customer service.  A customer who has made it clear that she is irate via email will become even more so with a cheerful hello from an uninformed operator in the call centre.</p> <p>To make this level of integration a reality, <strong>marketers must first know what channels their customers use and how they use them.</strong> </p> <p>Then, they need to make sure the data from the channels is available throughout the organisation so that the company can manage the customer relationship in a coordinated fashion.</p> <p>One marketer pointed out that sharing data may cause problems for firms in heavily-regulated industries such as pharma and finance. Everyone, however, agreed that all organisations will benefit from some level of channel integration.</p> <p><img src="https://assets.econsultancy.com/images/0008/1984/DSC_1663.JPG" alt="" width="800" height="533"></p> <h3>2. Segmentation</h3> <p>Another digital marketing function which attendees felt was key to success was audience segmentation.</p> <p>Customers and prospects can be segmented in many ways.  Some participants said that they stick with simple attributes such as geography or interests. Others felt that behaviour was more important and delivered a better return on investment (ROI) than demographic targeting. </p> <p>Several marketers, however, said that <strong>the best way to segment customers was by where they were in the buying cycle</strong>.  </p> <p>In their opinion, marketers should engage prospects differently if they were just finding out about the company (awareness), showing interest, trying out the product or service, or near to purchase.  </p> <p>Then, once the consumer becomes a customer, any communications with them should focus on encouraging loyalty, advocacy, and re-engagement with the brand.</p> <p>When asked how they segment their customers in practice, participants said that they typically started with <a href="https://econsultancy.com/blog/64545-what-is-crm-and-why-do-you-need-it/">a customer relationship management (CRM) system</a> linked to their email engine and, later, personalised the website. </p> <p>Then, for continuous engagement, they created custom audiences on social media with customers' email addresses. These audiences then were targeted with posts crafted for each segment to optimize engagement. </p> <h3>3. Content</h3> <p>Apart from integrating channels and segmenting audiences, attendees felt that <strong>marketers need to create content which drives engagement.</strong> Brands were advised to avoid publishing general purpose content which just drives traffic to the site.</p> <p>Instead, <strong>all content should answer the question, 'why would someone want to do business with you?'</strong></p> <p>One participant said that for ecommerce, the answer to this question is simple - the site offers better prices or a superior shopping experience.  For most brands, it is not quite so easy; they must find a unique value proposition and communicate it consistently.</p> <p>This value proposition could be simply that the company has superior technology or is more efficient than competitors, but regardless of what it is, companies should agree on it and use it repeatedly.</p> <p>Some delegates noted that <strong>behavioural segmentation can help with delivering content as well.</strong>  They suggested that brands can categorise customers according to what content they have clicked on before and ensure that the future content they see addresses their interests.  </p> <p>Doing so helps improves engagement and accelerates the buying cycle, according to one participant.</p> <p><img src="https://assets.econsultancy.com/images/0008/1985/DSC_1581.JPG" alt="" width="800" height="533"></p> <h3>4. Automation</h3> <p>The fourth key 'ingredient' to digital marketing success, according to attendees, is <a href="https://econsultancy.com/blog/65212-what-is-marketing-automation-and-why-do-you-need-it/">marketing automation</a>.</p> <p>Most organisations, participants argued, work in silos so there is little inter-departmental communication about customers.  </p> <p><strong>Marketing automation breaks down company silos </strong>and ensures that every department is using the same customer information and delivering a consistent message.</p> <p>Doing so ensures that messaging and content are coordinated and that segments do not receive different messages from different parts of the organisation.</p> <p>With automation, then, even the most disjointed organisation can create a single 'virtual channel' of communication with the customer and deliver the single value proposition mentioned previously.</p> <p><img src="https://assets.econsultancy.com/images/0008/1986/DSC_1658.JPG" alt="" width="800" height="533"></p> <h3>5. Key Performance Indicators (KPIs)</h3> <p>The final characteristic of a successful digital marketing department is agreed-upon key performance indicators (KPIs).  </p> <p>KPIs let everyone in the department know what is important and to what extent they are accomplishing goals of both the marketing department and the business.</p> <p>For the marketing department, <strong>KPIs should indicate whether the customer is engaging with and responding to the content</strong>. Engagement figures should also be linked to business results, noted one attendee. Likes and shares are nice-to-have, but performance metrics such as clicks and conversions are preferred.</p> <p>According to one participant, <strong>KPIs should also be tracked against a particular channel or a piece of content</strong>.</p> <p>Known as 'attribution', knowing whether, say, a web page or a particular ad is driving more conversions is critical to making improvements. Without understanding what activity is delivering more clicks, page views, and conversions, marketers will struggle to make improvements.</p> <p>For the business, <strong>KPIs should help management understand how marketing is helping them realize their financial goals</strong>.</p> <p>Participants felt that <a href="https://econsultancy.com/blog/65435-what-is-customer-lifetime-value-clv-and-why-do-you-need-to-measure-it/">customer lifetime value (CLV)</a> and marketing-assisted sales were two of the most important figures which marketers could deliver to the business.</p> <p>Demonstrating ROI from marketing efforts was also the best way for marketers to enjoy continued investment in the technology, such as marketing automation, as well.</p> <h3>A word of thanks</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day, subject matter expert Antonia Edmunds, business leader of IBM Watson Marketing in Asia Pacific, and our keynote speaker Sriman Kota, cognitive engagement executive in Asia Pacific for IBM Commerce.</p> <p>We hope to see you all at future Mumbai Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0008/1987/DSC_1738.JPG" alt="" width="800" height="533"></p> tag:www.econsultancy.com,2008:BlogPost/68471 2016-11-09T19:43:00+00:00 2016-11-09T19:43:00+00:00 Defining a new approach to measurement: Four top findings from new research Stefan Tornquist <p dir="ltr">Analytics increasingly faces a challenge in understanding audiences who jump from device to device and online to offline. These users are notoriously difficult to track and categorize, leading some marketers to a shift in thinking about measurement that acknowledges the imperfect reality of most datasets.</p> <p dir="ltr"><a href="https://econsultancy.com/reports/driving-growth-with-measurement-in-a-mobile-world">Driving Growth with Measurment in a Mobile World</a>, created in partnership with Google, is based on a survey of over 500 enterprise brands.</p> <p dir="ltr">To test its hypotheses and provide a point for comparison, the study sought to identify “leading” organizations with a successful approach to marketing measurement; companies with a combination of characteristics that include their use of business KPIs, advanced measurement (cross-device and/or online-offline) and experimentation.</p> <p dir="ltr">Supporting the argument that these qualities contribute to success, leading companies outperform the industry in several ways. Most notably they are more than twice as likely to have significantly exceeded their top business goal in 2015 (42% vs. 19%).</p> <h3 dir="ltr">1. Alignment of KPIs with business goals makes marketing more powerful</h3> <p dir="ltr">One of the central hypotheses of the study was that marketing achieves greater success when its measures and processes reflect the goals of the wider organization than when they’re focused solely on the metrics and concerns of marketing.  </p> <p dir="ltr">In the real world we need to look for those metrics that can make the leap between marketing and finance instead of trying to contend with every possible digital marketing statistic, most of which don’t resonate outside the team let alone outside of marketing.</p> <p dir="ltr">Leading companies' responses bear out this premise; 95% agree with the statement “to truly matter, marketing KPIs must be tied to broader business goals.”</p> <p dir="ltr">One advantage of moving to a business focus is that it enables marketing to influence the broader organization more easily, whether through a Center of Excellence model or another learning and development mechanism.</p> <p dir="ltr">This emphasis on business KPIs has several powerful benefits for marketing:</p> <h4 dir="ltr">Drives digital evolution through opportunity instead of mandate.</h4> <p dir="ltr">Teams and individuals are far more motivated to change when they see the benefit than simply as a response to a strategic directive, which is often how organizations try to drive transformation.</p> <h4>Normalizes marketing across divisions and regions by focusing on universal goals.</h4> <p>Every part of an international company is, to varying degrees, an independent actor with unique issues, capabilities and opportunities. Getting them to play in concert is an eternal challenge, but it’s impossible when they use different measures.</p> <p>Using a limited basket of metrics that are agreed upon by finance and marketing as representing the top business goals is one of the most effective paths to motivating and level-setting between regions.</p> <h4>Advances the strategic role of marketing.</h4> <p>Today’s marketing department is tasked with far more than awareness. It has to be inside the head of a new kind of mobile, social customer and represent their needs for a better experience across the organization.</p> <p>It also has to adapt to media, channels and platforms that are changing at breakneck speed. Through it all, marketing is asked to contribute more to the bottom line, often with fewer resources.</p> <p>Despite these rising demands, marketing doesn’t always have a seat at the table.</p> <p>Perhaps the most important reason to use business goals to define marketing’s KPIs is to ensure that marketing is always speaking the same language as sales and finance.</p> <p dir="ltr"><strong>Where to start:</strong> Identify the top three business goals set in 2017 strategy and meet with analytics leaders to argue for the one KPI that best fits with each one.</p> <p dir="ltr">These “hero” metrics won’t stand alone, but they should be at the center of every measurement conversation.</p> <h3 dir="ltr">2. Metrics don’t matter if they don’t affect decisions</h3> <p dir="ltr">It’s one thing to measure, it’s another to use that information. One surprise of the study was the large share of organizations that have one or more advanced measurement capabilities, but fail to use them in decision-making.</p> <p dir="ltr">For example, 47% of mainstream organizations say they track cross-device behavior but that it doesn’t factor into decision-making.</p> <p dir="ltr">That’s an equal share to those that do use their cross-device analysis in planning and strategy.</p> <p dir="ltr">When data is collected but goes unused, there is often a lack of trust in its validity that might be due to the complexity of measurement (such as in the case of cross-device identification) or an inability to use that data in context.</p> <p dir="ltr">One trait of elite marketers is the realization that there will be gaps in data, especially in emerging areas. They are comfortable making estimates to fill those gaps to move forward with their decision-making.</p> <p dir="ltr"><strong>Where to start:</strong> Create a list of all of the available KPIs and measurement capabilities. This might range from simple email metrics through advanced attribution, depending on the organization.  </p> <p dir="ltr">Go through the list and consider whether each metric is unused, used only in reporting or used for planning. Any gaps in the third column indicate a gap in trust, a missed opportunity or a meaningless measure.</p> <h3 dir="ltr">3. Perfection isn’t the goal</h3> <p dir="ltr">Between the enthusiasm of technology vendors and the genuine revolution in data driven business, it’s not surprising that marketing has fallen into the trap of pursuing perfection.  </p> <p dir="ltr">Every cycle brings new tools and models and filters, each suggesting a better way of collecting, managing and interpreting data.</p> <p dir="ltr">Our data describes our customers and customers are people – chaotic, fickle, emotional, mobile people. Even when we fix every technical glitch and connect every database, data will never be perfect.</p> <p dir="ltr">Some marketers are building their measurement and analytics practices with this in mind. It’s an attitude and approach as much as it is a selection of technologies or models.  </p> <p dir="ltr">It’s about approaching problems in a way that is nimble and effective with the knowledge that there will be gaps and mistakes and odd shapes that won’t fit into square holes.</p> <p dir="ltr"><img src="https://assets.econsultancy.com/images/0008/0977/gaps_in_measurement.png" alt="" width="700" height="443"></p> <p dir="ltr">The most effective analytics organizations are also those that recognize the reality is imperfection.  </p> <p dir="ltr">As we see in the chart above, leading measurement practices are three times more likely than the mainstream to strongly agree that there will always be gaps in the data connecting people, channels and devices (39% vs. 13%).</p> <p dir="ltr"><strong>Where to start:</strong> Identify those areas where data issues arise most frequently and explore processes, practices and technologies to address them.</p> <p dir="ltr">For example, build estimate models based on existing data, look for reliable industry benchmarks or look at tools that analyze and add in missing data.</p> <p dir="ltr">Of note, elite organizations are more likely to develop specific models and employ technology to fill these gaps than the mainstream, which tends to rely on historical precedents.</p> <h3 dir="ltr">4. Experimentation isn’t just optimization</h3> <p dir="ltr">Optimization is an important advantage of digital marketing. It’s fast, easy and makes an incremental, consistent positive difference.</p> <p dir="ltr">But optimization isn’t the most powerful business use of experimentation. At its best, the scientific method can be used to identify most valuable customers, explore major trends and validate strategic direction.</p> <p dir="ltr">Leading organizations are more than twice as likely to conduct strategic experiments than the mainstream, and by doing so they overcome some of the issues that often arise in large organizations trying to evolve.</p> <p dir="ltr">Typically, any major shift in spending or direction will create political divides as gut instinct and inertia work against change. Experimentation can be an antidote to this kind of resistance, giving a black and white answer to key questions.</p> <p dir="ltr"><strong>Where to start:</strong> Identify the intersections between business goals and customer behavior and use these lessons to prioritize experiments.</p> <p dir="ltr">Where are you losing to competitors? What’s important to customers but under-represented in your experience?</p> <p dir="ltr">Whatever the experiment, make sure that it’s testing a specific hypothesis that’s unambiguous, that the test will be able provide meaningful data and that the test results focus primarily on overall business impact, not simply efficiencies or optimization.</p> tag:www.econsultancy.com,2008:BlogPost/68431 2016-10-28T14:06:05+01:00 2016-10-28T14:06:05+01:00 How to combine attribution and segmentation data to achieve marketing success James Collins <p>Ultimately, being shrewd about how you segment your marketing data gives you the opportunity to become more effective at targeting the right people at the right time.</p> <p>Here, I share just some of the ways you can use attribution and segmentation to unlock even more value from your marketing efforts.</p> <p><strong><img src="https://assets.econsultancy.com/images/0008/0493/different-customer-groups-shopping-online.jpg" alt="Different customers shopping online" width="800" height="500"></strong></p> <h3>Understand the journeys of converting <em>and </em>non-converting users</h3> <p>As the name suggests, the data captured by traditional CRM systems is based on <strong>customers</strong>: On people who have completed a conversion.</p> <p>However, there will always be far more people browsing your products and services only to walk away.</p> <p>It’s here, in these non-converting journeys, that marketers are able to uncover where their efforts are falling flat.</p> <p>Effective user journey analysis and attributed reporting provides you with not only an understanding of the behaviour of people who buy from you but also those people who come to your site and do not purchase.</p> <p>Armed with this information, you can identify the marketing channels that aren’t helping attract or convert your chosen customer segments well enough.</p> <p>You can then experiment with cutting back spend in those areas and reallocating budget to other more effective channels.</p> <h3>Discover what activities attract new customers</h3> <p>One of the most common uses of segmentation is to provide a <strong>distinction between new and existing customers.</strong></p> <p>Segmentation allows you to distinguish between these two types of customers, while attributed reporting and user journey analysis helps you understand their typical behaviours.</p> <p>This combination then gives you the power to experiment and discover which channels are most effective at attracting each type of customer.</p> <p>How might user behaviour differ between these two segments? You might expect that new customers are exposed to your brand through channels like display and non-navigational search.</p> <p>On the other hand, existing customers might visit your website more often directly, through <a href="https://econsultancy.com/reports/email-census/">email marketing</a>, or a branded, more specific, search.</p> <p>Once you have the data to prove (or disprove) these assumptions, you’ll have an idea of where to focus your marketing efforts.</p> <p>For example, if you want to attract more new customers, you’ll know which channels, and which combination of channels, to test first.</p> <h3>Reach your different customer groups in the most effective ways</h3> <p>Effective segmentation should also allow you to <strong>determine between different groups of customers based on their demographic or behavioural characteristics.</strong></p> <p>Analysing your attributed reporting data by customer segment allows you to formulate and test marketing campaigns specific to your different customer groups, rather than put out an ineffective ‘one-size-fits-all’ campaign and hope for the best.</p> <p>To give a simple example to put this into context, say you’re a travel company and you’ve identified two of your common customer types:</p> <p><strong>Active Retirees</strong></p> <ul> <li> <strong>Description:</strong> older holidaymakers who have the free time and money to enjoy travel.</li> <li> <strong>Relevant products:</strong> cruises, package holidays, tours.</li> <li> <strong>User journey:</strong> don’t regularly use social media, conduct a lot of online research before making final choice, often complete purchase offline.</li> <li> <strong>Effective marketing campaigns: </strong> display advertising, affiliate partnerships, email marketing campaigns well in advance of peak booking time offering in-store discount.</li> </ul> <p><strong>Affluent Singles</strong></p> <ul> <li> <strong>Description: </strong> spontaneous decision makers with money to burn.</li> <li> <strong>Relevant products: </strong> last minute group holiday deals.</li> <li> <strong>User journey: </strong> impulse purchasers with short lead time, engage with social media regularly.</li> <li> <strong>Effective marketing campaigns: </strong> targeted social media advertising offering limited-time group discount.</li> </ul> <p>In this example, ‘Active Retirees’ tend to have more touchpoints in their path to purchase than ‘Affluent Singles’.</p> <p>Given this data, you can then try targeting your Active Retirees well in advance with an in-store discount across the various platforms that work for them.</p> <p>At the same time, you can test cutting back on the number of different touchpoints used to engage with Affluent Singles, who convert last-minute regardless, to see if you get better results.</p> <h3>Learn how to market to customers with high lifetime value</h3> <p>Segmentation can also allow you to <strong>group customers based on their purchasing habits.</strong></p> <p>For example, one-time purchasers, occasional purchasers, and regular purchasers with a high lifetime value.</p> <p>Using the Active Retirees example again, let’s say that your attributed reporting shows that a retargeting campaign had only a minor impact on these customers’ decisions to purchase their first holiday.</p> <p>In this way, it doesn’t appear to be a profitable a campaign.</p> <p>However, when you analyse the attributed data over an extended period of time, you may find that these same customers come back to make additional purchases further down the line, making them fall into your high lifetime value segment.</p> <p>You may also find that they return using what we might call ‘free’ channels (<a href="https://econsultancy.com/training/courses/topics/search-marketing/">SEO</a>, email, or direct), interacting with fewer touchpoints each time.</p> <p>When judging the value of the initial retargeting campaign across the entire lifetime value of these customers, the associated ROI becomes much greater.</p> <p>Only by using segmentation and attribution in combination can you gain this insight and judge the performance of your campaigns effectively.</p> <p>This then gives you the power to experiment and get better at targeting the right people in the right ways.</p> <h3>Use attribution to unlock the value that’s right under your nose</h3> <p>By <a href="https://econsultancy.com/blog/66996-the-three-stages-of-attribution-that-are-crucial-to-success/" target="_blank">harnessing the power of attributed reporting data</a>, marketers can better understand the intricacies of the true value of their efforts.</p> <p>By segmenting that data in astute ways, marketers are given the opportunity to test, evaluate, and ultimately get better at targeting their most valuable customers.</p> <p>When talking about attribution, the conversation is immediately drawn into the algorithm, with little regard as to the additional benefits it can bring to all of your marketing channels.</p> <p>The advice I’ve provided here hopefully demonstrates that using the data to enhance insight presents a huge opportunity for marketers.</p> tag:www.econsultancy.com,2008:BlogPost/68408 2016-10-20T15:01:00+01:00 2016-10-20T15:01:00+01:00 The five fundamentals of data-driven marketing Evan Dunn <p>81% of marketers are looking to <a href="http://www.zoominfo.com/business/mktg/ebooks/ebook-data-driven-benchmarks-for-success.pdf" target="_blank">increase budgets</a> for data-driven marketing, while 83% of marketers believe <a href="https://www.ana.net/content/show/id/37128">it's important to be able to make data-guided decisions</a>.</p> <p>That's nearly every marketer.</p> <p><a href="http://www.thedrum.com/news/2016/09/19/investment-data-driven-marketing-continues-rise-survey-notes" target="_blank">Over half</a> expect to see revenue growth as a result of data-driven marketing investments (only 7% expect a decrease), and 39% plan to increase spend on data-driven marketing initiatives.</p> <p>Despite the popularity of data-driven tactics and tech, there is a lot of confusion about the nature of marketing data, and the possible implications it can have for marketing decisions.</p> <p>Here are five ideas I’ve identified as fundamental to effective data-driven marketing.</p> <h4><strong>1. There are two types of marketing 'data': Contact information and performance metrics.</strong></h4> <p>It is strange how rarely this distinction is highlighted, despite how frequently marketers interact with both types of data.</p> <p>For example, “database marketing” refers exclusively to leveraging email lists to engage with customers.</p> <p>“Data management platform” (DMP) refers exclusively to leveraging a mix of IP addresses, emails and other contact information to deliver targeted advertising to customers across the web. </p> <p>Part of the reason I’m writing this article is because of how confused I was by so many of these terms.</p> <p>Databases can store many things, so why only point to use cases that involve emails? And DMP - such a broad, sweeping term for such a narrow use case.</p> <p>Understanding the difference between the two methods is critical to knowing how and when to use them.</p> <p>Many modern marketers are focused so heavily on contact-information-based use cases that they neglect the importance of measuring overall performance and tying it to revenue.</p> <h4><strong>2. Data-driven marketing based on contact information involves tracking individuals in order to get them to buy.</strong></h4> <p>It's sort of like helicopter parenting - helicopter advertising.</p> <p>Tracking individuals across digital media is becoming increasingly popular among marketers, in an attempt to make their marketing distinct among the hundreds of ads we each see every day.</p> <p><img src="https://assets.econsultancy.com/images/0008/0562/helicopter.jpg" alt="" width="600" height="400"></p> <p>“<a href="https://econsultancy.com/blog/65212-what-is-marketing-automation-and-why-do-you-need-it/">Marketing automation</a>” is one of the earliest examples of this type of data-driven marketing, though people rarely classify it as such.</p> <p>Marketers use a MAP (Marketing Automation Platform - a technology class created by Marketo, much like Siebel Systems pioneered CRM) to track individuals through the funnel, usually in organic (email, website) touchpoints, but also in <a href="https://econsultancy.com/training/courses/social-media-paid-advertising/">paid social</a> and display ads.</p> <p>Then the MAP distributes targeted content based on where a person is in the funnel, particularly what last action they took (such as downloading content).</p> <p>Another example is “Attribution” - a term which on the surface just refers to assigning various media, creative and audience segments with percentages of contribution to success.</p> <p>Attribution usually involves tracking individual customers across the web, based on interactions with digital media properties, both paid and owned.</p> <p>More advanced platforms can track whether display ads come into view on the visible portion of a person’s screen.</p> <p>Attribution sometimes leverages DMPs and TMS (Tag Management Software), along with proprietary analytics, to attribute conversions and sales to specific ads. </p> <p>Attribution is primarily focused on individual identification, but also relies on aggregate performance metrics to recommend adjustments in advertising tactics.</p> <p>Data-driven methods that rely on contact information benefit from high levels of detail, but suffer from scalability (you can’t track everyone).</p> <p>Personalization, customer experience optimization and other initiatives fall into this category.</p> <h4><strong>3. Data-driven marketing based on performance metrics involves analyzing investments in and returns from marketing initiatives, in order to better drive results.</strong></h4> <p>Performance marketing, quantitative marketing, media mix modeling - these practices involved rolled up streams of customer actions - i.e. performance metrics. </p> <ul> <li>“Performance marketing” is just a way of saying “marketing where you actually look at what works and what doesn’t in order to drive outcomes.”</li> <li>“Quantitative marketing” has historically referred to enterprise-grade initiatives that use statistics to optimize marketing outcomes based on investment (i.e. ad spend) and key performance indicators. </li> <li>“Media mix modeling” - or media mix allocation - is sometimes classed as a type of quantitative marketing. It involves analyzing which channels (TV, radio, display, etc.) have the greatest impact on conversions through probabilistic statistics (data science).</li> </ul> <p>Data-driven methods that rely on performance metrics benefit from the fact that every system produces some measure of reporting and thus are highly scalable, but sometimes more detail is needed.</p> <p>A focus on performance metrics also has a natural bias towards objectives.</p> <p>Customer data can be a black hole of possible activities, and many companies are stuck in the vortex of collecting, cleansing, weighing customer data.</p> <p>But performance data always tells a story relevant to your objective.</p> <h4><strong>4. There’s this thing called a “proxy” - it’s how you measure the intangibles.</strong></h4> <p>Some things are difficult to measure.</p> <p>For example, “Awareness” (which is an actual objective for many marketers) is really the sum of “how much time do people spend thinking about your brand/product/service?”</p> <p>Obviously, we can’t strap brain sensors to everyone (yet). Most marketers use focus groups and surveys to approximate awareness.</p> <p>Those may also be used to approximate “Brand Equity” - the amount people <em>like </em>and therefore demonstrate <em>purchase intent </em>towards a brand.</p> <p>The problem is, surveys of all kinds are riddled with <a href="https://en.wikipedia.org/wiki/Response_bias" target="_blank">response biases</a> - including the most subtle, such as <a href="https://www.psychologytoday.com/blog/mind-my-money/200807/familiarity-bias-part-i-what-is-it" target="_blank">familiarity bias</a> and <a href="http://heuristics.behaviouralfinance.net/availability/" target="_blank">availability bias</a>.</p> <p>Why not supplement these traditional approaches to awareness measurement with more comprehensive, scalable (and faster, less expensive) tactics?</p> <p>One increasingly popular method of measuring awareness via proxy is <a href="https://econsultancy.com/blog/67137-social-monitoring-listening-what-is-it-and-do-you-need-it/" target="_blank">social listening</a>.</p> <p>This technology category is actually not focused only on social media, but the ‘social web’ - all those publications, blogs, articles, comments, social networks, forums etc... essentially most of the Internet. </p> <p>“Best-in-class” estimates for the number of websites scanned by a social listening tool are usually around 100m or 200m websites.</p> <p>For reference, Twitter counts as one website.</p> <p><a href="https://econsultancy.com/training/digital-transformation/">Digitally-transformed</a> enterprises use these tools to monitor the success of paid and earned media initiatives, as well as establish competitive benchmarks for brand awareness, based on the assumption that some number of people who are aware of a brand/product/campaign will talk about it.</p> <p>Other examples of proxies include NPS (Net Promoter Score) - a measure of the social equity a brand has with its customers.</p> <h4><strong>5. You can’t quantify poetry</strong></h4> <p>Marketing - getting people to invest time/attention/money in brands, products &amp; services - will always live partially in the poetic.</p> <p><img src="https://assets.econsultancy.com/images/0008/0571/shakespeare.jpg" alt="" width="335" height="298"></p> <p>Connecting with customers inherently has one foot in the abstract, ethereal, creative - and one foot in the scientific, mathematic, quantifiable.</p> <p>After all, some of the best ideas are ones no one has thought of before.</p> <p>This is why Jay Baer proclaims that “<a href="http://www.convinceandconvert.com/digital-marketing/data-driven-marketing/" target="_blank">Data-Driven Marketing is a Bad Idea</a>” - all he’s really saying is that you can’t forsake the creative for the quantified, but the title he actually used is more sensational.</p> <h3><strong>We need a more holistic view of marketing data</strong></h3> <p>What marketers need is to broaden the scope of the way data is viewed, valued and used within their organization. </p> <p>Personalization and attribution have their place among the most academic of statistical approaches.</p> <p>And macro-performance measurement must concede the fact that, sometimes, the devil is in the details.</p> <p>Of utmost importance is the fact that no data is valuable unless it connects to critical objectives. For most marketers, this means awareness, brand equity and revenue.</p> <p><em>For more on this topic, see:</em></p> <ul> <li><a href="https://econsultancy.com/reports/the-role-of-crm-in-data-driven-marketing/"><em>The Role of CRM in Data-Driven Marketing</em></a></li> <li><a href="https://econsultancy.com/training/courses/big-data-driven-marketing-how-to-get-it-right/"><em>Data-Driven Marketing Training</em></a></li> </ul>