Mastering Marketing Metrics
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1 Mastering Marketing Metrics
2 Agenda Mad Men or Math Men? Common Marketing Metrics Mistakes Metrics with Meaning Default vs. custom reports Goals & objectives Metrics in context Metrics Web Metrics Social Metrics Takeaways & Next Steps 2
3 Presenters Tyson Kirksey, Director of Analytics & Search Marketing Vertical Nerve is a Google Analytics Certified Partner, a Google AdWords Certified Partner and a Microsoft Advertising Preferred Agency. Deb McAlister-Holland, Director of Marketing Distribion is a leading provider of multi-channel marketing automation solutions for distributed marketing organizations. McAlister-Holland is the author of The Customer Never Sleeps: 21st Century Marketing in the Age of Google, and Slimed On-Line: How to Get Your Reputation Back in Spite of Google. 3
4 Mad Men Or Math Men? When Don Draper & the Mad Men ruled Madison Avenue, consumers lacked power. Not anymore 70% of the buying process is complete by the time a prospect is ready to engage with sales. 89% of marketers have increased marketing measurement since Metrics take 30-50% of marketing time CEO s aren t impressed 33%: Marketing s impact is documented 47%: Marketing may contribute, but value isn t documented 20%: Don t know if marketing costs are justified 4
5 What Forrester Says 84% of companies use Web analytics Google Analytics is the most popular tool Highly competitive market, with vendors aggressively developing new products and services Over two-thirds of CMO s say that it is difficult to align metrics from different sources Inconsistent vocabulary Inconsistent measurement Old issues continue to fester Lack of centralized customer views Insufficient measurement that links marketing tactics directly to revenue Source: Joe Stanhope, Forrester Wave: Web Analytics, Q4, 2011, Oct. 6,
6 Common Marketing Metrics Mistakes Metrics justify spending & predict results Gartner: 44% of CMO s answered I don t know to the question: What impact would a 10% budget increase have on your sales? Marketers think in soft metrics Impressions, organic search rankings, reach, clicks, likes, open rates: easy to report, hard to align with business goals CEO s and CFO s think in hard metrics YoY revenue growth, P&L, forecast accuracy: transactional data that aligns with business goals Avoid vanity metrics Focus on quality not quantity Measure results, not activity Capture effectiveness, not efficiency Choose what to measure don t settle for defaults Develop a common vocabulary for all metrics 6
7 Drowning in the Default Exit %: Everybody Leaves at Some Point! Time on Site: Is Longer Necessarily Better? Bounce Rate: What is a Good Bounce Rate? # of Facebook Fans / Twitter Followers 7
8 Metrics with Meaning Find your Sabre Metrics Create & Use Focused, Custom Dashboards 8
9 Web Metrics Conversion Rates by Segments Funnel Abandonment Rates Revenue per Click / Revenue per Unique Advertising Margin, or ROAS Lifetime Customer Value 9
10 Social Metrics Volume of Re-tweets or Shares (Virality) Positive or Negative Sentiment Net New Leads / Sales from Social Channels 10
11 Metrics Most solutions include analytics Open rates, clicks, unsubscribe matter but only in the right context 11
12 Putting Metrics Into Context Campaign goals determine which metrics matter Data verification: List scrubbing & quality unsubscribe, undelivered, returned unsent, etc. Exposure: Accepted/confirmed open rate, average recipient render or read rate (how many times, on average, someone revisits your message 200 total readers, 50 unique renders = an average of 4 reads per recipient) Engagement: Render rate, unique confirmed opens (sum of recipients who rendered images in an as well as those who did not render images but clicked on a link), unique confirmed open rate, unique click through rate (overall), unique click to open rate (overall) (20 unique clickers/400 unique confirmed opens = 5% unique click to open rate) Action Unique Confirmed Opens, Unique Click to Open Rate (overall), Unique Click to Open Rate (per link) Conversion Unique Click to open rate (per link) Abandonment Rate Web & tracking integration will show where nonconverting recipients who clicked on a link are actually leaving your site E-Commerce site & metrics are easier
13 What s the Value of a Click? No one-size-fits-all answer. Behavior beyond the initial click counts Define your own value based on Conversion Pipeline Sales / revenue Acquisition model 13
14 Putting it into Practice 1. Establish targets and ROI goals What will be measured? How will it be measured? 2. Design measureable programs Web Advertising Events Social media PR Pick your metrics as you design programs 3. Focus on making decisions that will improve results 14
15 Take-away Points Set goals Set your marketing metrics up correctly Understand the purpose Develop your reporting mechanisms Use a common vocabulary Consider an audit of your marketing processes to see what can be measured what should be measured and how it should be reported Take action based on relevant data 15
16 1 6 Thanks for Joining Us! Distribion, Inc. Follow us Check out our blog: Distributed Marketing Deb McAlister s Marketing Blog Vertical Nerve, Inc. Follow us on Check out our blog: Vertical Nerve Solutions
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