tag:www.econsultancy.com,2008:/topics/attribution Latest Attribution content from Econsultancy 2017-01-04T01:00:00+00:00 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 2016-11-09T19:43:46+00:00 2016-11-09T19:43:46+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">To test its hypotheses and provide a point for comparison, the study sought to identify “leading” organizations with a successful approach to marketing measurement.</p> <p dir="ltr">These are 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 characteristics contribute to success, the 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> tag:www.econsultancy.com,2008:BlogPost/68347 2016-09-29T01:00:00+01:00 2016-09-29T01:00:00+01:00 Seven ways to supercharge your data-driven marketing Jeff Rajeck <p>Nine out of ten put it in their first three, more than any other topic.</p> <p><img src="https://assets.econsultancy.com/images/0007/9633/data-driven.png" alt="" width="565" height="315"></p> <p>But what are marketers actually doing with their data?<strong><br></strong></p> <p>What tips can professionals give for those who may be just starting out with data-driven marketing?</p> <p>To find out, Econsultancy recently held roundtable discussions at our fifth annual Digital Cream Sydney.  </p> <p>There, client-side marketers from across the industry discussed trends, best practices, and the issues they are currently facing.</p> <p>The roundtables were moderated by subject matter experts from the industry. Participants brought their own experiences, questions, and challenges to the table for open discussion.</p> <p>Here are the highlights from the discussion at the Data Driven Marketing &amp; Marketing Attribution Management table.</p> <h3>1. Use personas and customer journey mapping for attribution modeling</h3> <p>We now live in an omnichannel world. People often use the web, social media, mobile, and search before buying something.  </p> <p>How can marketers determine the right amount to invest in each channel?</p> <p>Participants agreed that doing so, also known as attribution modeling, is one of the toughest tasks marketers now face.</p> <p>Figuring out which channels drive awareness, which help with research, and which lead to conversions is not easy - even with all the data in the world.</p> <p>While attendees admitted that there is 'no silver bullet' for determining the right model, delegates suggested that using customer experience data can help.</p> <p>They said that <strong>creating audience personas and then mapping each customer journey can provide insight into the path-to-purchase for different customers.</strong>  </p> <p>This can then provide the foundation for the elusive attribution model which helps marketers allocate their spending for optimal results.</p> <p><img src="https://assets.econsultancy.com/images/0007/9626/data-driven__Custom_.jpg" alt="" width="800" height="533"></p> <h3>2. Avoid using personas for more granular data-driven marketing</h3> <p>While the customer-centric approach may work for modeling attribution, delegates agreed that<strong> personas and customer journey maps were not so useful when doing more personalised data-driven marketing.</strong></p> <p>That is, when buying programmatic media or providing on-site personalisation, broad segments and models do not help.  </p> <p>Instead, attendees stated that <strong>marketers should use an individual's behavior to deliver relevant ads and personalised content.</strong>  </p> <p>What a person has viewed or purchased previously is much more likely to attract their attention in the future than something which fits a particular persona, one participant argued.</p> <h3>3. Look at <em>your</em> data when optimizing</h3> <p>Another dilemma marketers often face is how to optimize their website and ad buying based on outside trends.</p> <p>Recently, there have been many charts showing that mobile traffic is outpacing web traffic. Does this mean that marketers should go 'mobile first'?</p> <p>Not at all said the delegates. While it is useful to be aware of the trends in mobile, video, and messaging, <strong>marketers should prioritise their own customers' behaviours to help form strategies.</strong></p> <p>As an example, at one table on the day, there were some marketers who said that mobile usage was plateauing while others said that tablet traffic is becoming increasingly important to them.</p> <p>So, the recommendation is that marketers should first keep a close eye on the trends in their own data before making any drastic changes as a result of industry reports.</p> <p><img src="https://assets.econsultancy.com/images/0007/9627/data-driven2__Custom_.jpg" alt="" width="800" height="533"></p> <h3>4. Use data for more than just conversions</h3> <p>Marketers these days are typically required to produce data to justify their budget.  </p> <p>Metrics such as cost-per-acquisition (CPA) and return on ad spend (ROAS) are commonly used by the business to gauge performance.</p> <p>Because of the need to demonstrate that marketing spend matters to the business, <strong>attendees agreed that most of the effort spent on marketing attribution and data-driven marketing is used to lower customer acquisition costs</strong>. </p> <p>However, delegates also agreed that we now have the data to do much more. <strong>Data should also be used, they argued, to improve customer retention and loyalty.</strong></p> <p>Doing so will, in turn, increase the lifetime value of customers and improve the bottom line, albeit in a less direct way.</p> <p>Marketers should, therefore, look for opportunities to use data for customer experience and resist the tendency to look for the immediate gratification of a lower CPA.</p> <h3>5. The best third-party data is from sites where users log in</h3> <p>While marketers tend to have a good handle on the data from their own sites (first-party data), many are still wondering about the value of data from other sites (third-party data).</p> <p>This concern was made apparent because, when asked, only around 10-15% of marketers at the tables admitted using a data management platform (DMP) as a 'single source of truth' about their customers.</p> <p>The reasons for hesitating are well-founded. Many third-party data services guess at aspects of users' identities from the sites they visit or activities they have done in the distant past.</p> <p>Attendees asserted, however, that <strong>sites which require users to log in can provide much higher-quality third-party data.</strong></p> <p>Specifically, Google and Facebook can both link extensive browsing and posting behaviour to a particular person.  </p> <p>For this reason, delegates said that such sites do offer third-party data worth using for advertising and analytics.</p> <p>Interestingly, one participant noted, both Google and Facebook are also starting to offer data which allows brands to track consumers offline.</p> <p>That is, they will know whether someone has entered a particular location (e.g. a store) after viewing an ad on their platform.</p> <p><img src="https://assets.econsultancy.com/images/0007/9628/data-driven3__Custom_.jpg" alt="" width="800" height="533"></p> <h3>6. Aim to make small changes with insights from data</h3> <p>While most of the day's discussions were positive, one negative aspect of data-driven marketing emerged. </p> <p>Even with insights from data,<strong> delegates admitted that it was rare that recommendations based on data were actually implemented</strong>.</p> <p>Data was more likely, they said, to be used for retrospective reporting and business-oriented statistics.</p> <p>One way around this, one participant suggested, is to adopt a more 'agile' way of working.</p> <p>What this means is that marketing teams should avoid gathering vast amounts of data in an attempt to influence strategic decisions.  </p> <p>Instead, <strong>marketers should use insights to drive incremental changes on a frequent, tactical basis.</strong></p> <p>In this way, the 'agile' approach will change an organisation's approach to marketing iteratively over time and have a much higher likelihood of succeeding.</p> <h3>7. The biggest hurdle? Finding the right people.</h3> <p>In previous years, marketers have lamented about quality of marketing technology and the difficulty of obtaining data to drive marketing strategy.</p> <p>While these are still concerns, <strong>delegates this year said that their biggest challenge was finding the right people to drive data-driven marketing initiatives.</strong></p> <p>Attendees agreed that that finding people who could interpret data both technically and commercially was really hard. Additionally, these people are critical for getting insights out of data.</p> <p>Newly-hired data scientists are often too technical and abstracted from the operational business to help. Experienced marketers, though familiar with the business, often lack the statistical modeling skills to extract new insights from data.</p> <p>One suggested approach is for marketing teams to recruit analysts with business acumen and data crunching skills.  </p> <p>But in lieu of staffing up with the right people,<strong> participants felt that marketers could also take a more active role in interrogating the data themselves for insight. </strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0007/9630/data-driven4__Custom_.jpg" alt="" width="800" height="533"></strong></p> <h3>A word of thanks...</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and especially our Data Driven Marketing &amp; Marketing Attribution Management table moderators,<strong> Beaudon McLaren, APJ Ecommerce Manager at Symantec</strong> and <strong>Ashley Friedlein, President of Centaur Marketing &amp; Founder of Econsultancy.</strong></p> <p>We hope to see you all at future Sydney Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0007/9632/moderators__Custom_.jpg" alt="" width="800" height="533"> </p> tag:www.econsultancy.com,2008:BlogPost/68313 2016-09-26T11:20:00+01:00 2016-09-26T11:20:00+01:00 Marketing attribution: How many are actually doing it? Ben Davis <h3>66% of companies undertake some form of attribution and analyse their results</h3> <p>The headline statistic is a heartening one. 66% of company respondents said they carry out attribution on all or some campaigns and analyse the results.</p> <p>Though the agency sample size is a third of that for company respondents, a disparity is notable in the results, with agencies less confident of their clients' competence.</p> <p>Nearly a fifth of agency respondents (18%) say their clients are carrying out attribution but are not sure how to effectively analyse results.</p> <p><img src="https://assets.econsultancy.com/images/0007/9534/Screen_Shot_2016-09-26_at_08.34.58.png" alt="marketing attribution" width="615" height="492"></p> <h3>UK companies not particularly confident of agency impartiality in attribution</h3> <p>24% of company respondents said they use their media agency to carry out marketing attribution.</p> <p>Respondents could select multiple options here, with vendor technology the most popular (51%), followed by custom-built tech (44%) and spreadsheets/manual (42%).</p> <p>Of those respondents that said they used their media agency for attribution, UK companies were particularly sceptical when it comes to impartiality.</p> <p>32% of UK respondents said they were 'not very confident' of their agency's impartiality when it comes to marketing attribution, and a further 44% were only 'quite confident'.</p> <p>This is quite startling, and speaks to the pressing need for transparency and accountability in media agency land (amid <a href="https://econsultancy.com/blog/68319-all-the-digital-news-stories-you-missed-this-week-6/">reports of overcharging</a> and <a href="https://econsultancy.com/blog/68315-where-has-programmatic-gone-wrong-and-how-can-agencies-fix-it/">lack of strategy/skills</a>).</p> <p><img src="https://assets.econsultancy.com/images/0007/9536/Screen_Shot_2016-09-26_at_08.48.48.png" alt="trust in agencies" width="615" height="512"></p> <h3>Display feels the wrath of attribution</h3> <p>When respondents were asked what channels they include in their marketing attribution, email (71%) and display (64%) were clear favourites.</p> <p>These were followed by content (58%), paid search (55%), social (54%), affiliate (52%), paid social (42%), SEO (41%), mobile apps (25%) and video (24%).</p> <p>And the result of this marketing attribution analysis?</p> <p>28% reported they were increasing spend across all or some channels, 46% reported decreasing spend across all or some channels.</p> <p>What is particularly striking though is that of those decreasing budgets based on attribution analysis, over half (54%) report doing so for display advertising (see chart below).</p> <p>Again, this stat shows that companies are intent on gaining more oversight of channels such as display, which may have previously seemed like a black box to some clients or a line added to a media plan.</p> <p><img src="https://assets.econsultancy.com/images/0007/9535/Screen_Shot_2016-09-26_at_08.56.18.png" alt="decrease budget attribution" width="615" height="500"></p> <p>This is just a taster from this new report, but there's plenty more revealing data to dig into and many tangential conclusions to be made about the state of measurement and media in digital marketing.</p> <p><strong><a href="https://econsultancy.com/reports/state-of-marketing-attribution/">Subscribers can download the report now</a>.</strong></p> tag:www.econsultancy.com,2008:Report/4219 2016-09-21T10:00:00+01:00 2016-09-21T10:00:00+01:00 The State of Marketing Attribution <h2>Overview</h2> <p>As customer journeys become increasingly complex and fast-paced, it’s imperative for marketers to understand the effectiveness of their campaigns and how each channel contributes to the end conversion. </p> <p>This <strong>State of Marketing Attribution</strong> report, produced by Econsultancy in association with <a href="https://www.adroll.com/en-GB/">AdRoll</a>, explores current adoption levels and types of strategies organisations are using. The study evaluates tools and processes employed as well as the potential barriers to effective use of the capability.</p> <p>The report, which is based on a survey of almost 600 in-house and supply-side respondents, discusses how well companies are leveraging their data to attract, convert and grow their customer base.</p> <p>Respondents were based in the UK, France and Germany, and the report compares and contrasts the three countries.</p> <h2>Key topics covered</h2> <ul> <li>The multichannel challenge - despite the increasingly crucial role that attribution plays, organisations carrying out attribution across the majority of their campaigns are still in the minority. Find out the reasons why and tips on how to remedy this.</li> <li>What others are doing with attribution - benchmark your organisations against your peers by finding out which methods and technologies they are using.</li> <li>The skills and training needed for successful attribution.</li> <li>The regional variations between the UK, France and Germany in terms of the state of attribution.</li> </ul> <h2>Key findings</h2> <ul> <li>While four in five organisations carry out marketing attribution, less than a third (31%) do so on the majority of or all their campaigns and analyse results.</li> <li>The issues which restrict marketers’ ability to carry out attribution or implement it properly are mainly around a lack of knowledge (58%), lack of time (44%) and technology limitations (41%).</li> <li>Organisations are lagging behind when it comes to more complex attribution models, with nearly half still using last-click models. More worryingly, a similar proportion use first-click, a less intuitive form of attribution.</li> <li>While algorithmic and custom attribution feature among the most effective models (96% and 89% respectively claim they are ‘very’ or ‘somewhat’ effective), less than a quarter (23%) of responding organisations use these methods.</li> <li>Around half of marketers choose off-the-shelf vendor technology for marketing attribution, while 44% opt for custom-built technology. Over two-fifths (42%) are still resorting to manual attribution with the use of spreadsheet data.</li> <li>When asked about areas with the biggest issues and gaps, creating a culture of measurement and accuracy (59%), campaign tracking/tagging (56%) and data validation/normalisation (56%) were cited as top-three challenges.</li> <li>Nearly 60% of responding organisations don’t action the insights they get from attribution.</li> </ul> <p><strong>Download a copy of the report to learn more.</strong></p>