Marketing Making the Leap from Traditional Market Research to Web Analytics
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1 Marketing Making the Leap from Traditional Market Research to Web Analytics Matt Belkin VP, Emerging Business GM, Visitor Acquisition
2 What s keeping your CMO up at night? Thinkstock images
3 Where do we invest internationally? Who are our most valuable customers? Where can we improve the customer experience? How do I attribute sales across each channel? How can I maximize return on ad spend? How do I keep my job longer than 2 years? Thinkstock images
4 The answers are here
5 and here
6 here.
7 here too
8 and here
9 Be wary of what you wish for
10 Measuring what matters Executives Drowning in collect data a vast Organizations can amount of information Web Team Partners thirsty for information. Marketing
11 Your Path to Analytics Enlightenment KBR KPI Analyze Performance Optimize ROI
12 Why We Need to Define KBRs Okay Let s meet at our favorite restaurant! Where is everybody? Okay Okay Just like our favorite restaurant needs to be clarified, KBRs need to be clearly defined so we can arrive at the same destination in the least amount of time.
13 Levels of KBRs Enterprise KBRs Strategic company-wide business goals or objectives KBR KBR KBR KBR Examples Expand product line Improve customer service Complete merger Increase sales Online KBRs Strategic online business goals or objectives KBR KBR KBR KBR Increase online sales Enhance online customer experience Improve online support Online Initiatives Strategic online initiatives to achieve online goals Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Enhance merchandising Improve site search Reduce shopping cart abandonment Introduce VOC functionality Online s Tactical business requirements related to online initiatives Need reporting to include offline metrics Have time parting breakdown Create engagement metric which combines product views, searches, and store locator usage
14 KBRs Strategic to Tactical Enterprise KBRs Strategic company-wide business goals or objectives Online KBRs Strategic online business goals or objectives KBR KBR KBR KBR KBR KBR KBR KBR Strategic Online Initiatives Strategic online initiatives to achieve online goals Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Online s Tactical business requirements related to online initiatives Tactical KBR
15 KBR Focus by Organizational Role Enterprise KBRs Strategic company-wide business goals or objectives Online KBRs Strategic online business goals or objectives Online Initiatives Strategic online initiatives to achieve online goals KBR KBR KBR KBR KBR KBR KBR KBR Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative Initiative CEO Internet Executive Internet Director/Mgr Online s Tactical business requirements related to online initiatives Internet Specialist
16 KBRs: New Shared Currency Consulting Sales Engineering Services Marketing Client Care Partner Channel Product Management Account Management
17 KBR Example: Nike GLOBAL DIGITAL COMMERCE FY09 PRIORITIES PREMIUM CONSUMER EXPERIENCE OneStore and NikeOS e-commerce roll out Create Big C & Big B synergy Globally leverage product content Expand coveted, differentiated & extended assortment Introduce NPS & build our consumer advocates OPERATIONAL EFFICIENCY & EFFECTIVENESS Top 5 e-retail site performance Standard reporting/analytics suites & self-service tools Robust portfolio & project prioritization & governance Architecture strategy for agile, flexible expansion Faster, easier, more efficient payments, fulfillment, consumer service INNOVATION Change the game with NIKEiD category integration, studio roll-out, apparel, fulfillment, manufacturing model Flawless wholesale4.com execution Build the CRM foundation Embrace LEAN process innovation TEAM DEVELOPMENT AND MANAGEMENT DELIVER PROFITABLE GROWTH DRAFT MEASURED EXPANSION Owned and partnered geographic expansion strategy - where, when, how Position affiliates for growth Enterprise KBRs Strategic company-wide business goals or objectives Online KBRs Strategic online business Online KBRs goals or objectives Online Initiatives Strategic online initiatives to achieve online goals Online Initiatives Online s Tactical business requirements related to online initiatives KBR KBR Initiative Initiative Initiative
18 KPIs: Bridging the Gap between Business and Data KBRs KPIs Web Analytic Data What is the business trying to accomplish? What will define the success of its online efforts? Targeted subset of data Specific metrics tied to business goals Shared via and dashboards to business owners Requires only knowledge of the business problem being monitored to interpret Large volume of data Broad range of information Access limited to users of web analytics tool Requires special knowledge of data and software to interpret
19 KPIs by Business Model Business goals and objectives differ by business model. Although some KPIs are shared by companies, they may be interpreted very differently depending on the business model. Most commercial websites fall into one of four business models: E-Commerce Content / Advertising Lead Generation Customer Support (Self-service)
20 Business Model: E-Commerce Walmart.com Business Objective: Drive site visitors to purchase products or services online KPIs: Overstock.com Profit Revenue Orders Conversion Rate (Orders/Visits) ebags.com Revenue per Visit (Revenue/Visits) Average Order Value (Revenue/Orders)
21 Business Model: Content / Advertising Business Objective: Attract repeat visitors who explore the site in depth KPIs: Conversion Rate (Actions/Visits) Subscriptions (online/offline) Sportsline.com NYTimes.com Newsletter/Alert sign-ups Registrations Log-ins Cancellations Average Pageviews per Visit Pageviews Visits, Unique Visitors BHG.com
22 Business Model: Lead Generation GM.com Business Objective: Capture information about a visitor to use in future communications KPIs: Conversion Rate (Actions/Visits) Registrations Newsletter sign-ups Partner referrals Price quotes Demo requests Resource downloads (whitepaper) Leads Cost per Lead (CPL) Novell.com Nike.com
23 Business Model: Customer Support Sprint.com Business Objective: Quickly and successfully answer customer questions and address customer problems online KPIs: Discovercard.com Web Inquiries Web Inquiries per Visit (Failure Rate) Percentage of Successful Support Visits Visits, Unique Visitors Sirius.com Call Center Volume (Unique web number) Customer Satisfaction Index (Offline)
24 KBRs vs. KPIs??? Key performance indicators (KPIs) are the measures used to indicate how well you are performing against your KBRs KBRs Fuel Efficient Fast Towing Capacity 36 MPG 15 MPG 17 MPG 71 5,800 RPM 420 7,800 RPM 300 5,000 RPM 68 lbs. per 4,500 RPM 317 lbs. per 4,500 RPM 365 lbs. per 3,750 RPM KPIs 1. MPG 2. RPM 3. lbs. per RPM)
25 Nike: KBR / KPI Example GLOBAL DIGITAL COMMERCE FY09 PRIORITIES PREMIUM CONSUMER EXPERIENCE OneStore and NikeOS e-commerce roll out Create Big C & Big B synergy Globally leverage product content Expand coveted, differentiated & extended assortment Introduce NPS & build our consumer advocates OPERATIONAL EFFICIENCY & EFFECTIVENESS Top 5 e-retail site performance Standard reporting/analytics suites & self-service tools Robust portfolio & project prioritization & governance Architecture strategy for agile, flexible expansion Faster, easier, more efficient payments, fulfillment, consumer service INNOVATION Change the game with NIKEiD category integration, studio roll-out, apparel, fulfillment, manufacturing model Flawless wholesale4.com execution Build the CRM foundation Embrace LEAN process innovation TEAM DEVELOPMENT AND MANAGEMENT DRAFT MEASURED EXPANSION Owned and partnered geographic expansion strategy - where, when, how Position affiliates for growth Online KBR: Premium Consumer Experience Online Initiative: Expand coveted, differentiated, & extended assortment Solution Set: Advanced merchandising and optimization (SiteCatalyst, Discover, Merchandising, Test&Target, etc.) KPIs: Revenue, orders, AOV, visit yield, product conversion rate, category conversion rate, attach rate, etc. DELIVER PROFITABLE GROWTH
26 Where do we invest internationally? Who are our most valuable customers? Where can we improve the customer experience? How do I attribute sales across each channel? How can I maximize return on ad spend? How do I keep my job longer than 2 years? Thinkstock images
27 Example: Maximize ad spend Site: Walmart KBR: Maximize ad spend Initiative: Paid search engine marketing KPI: Revenue per visit
28 Analyzing the data Site: Walmart KBR: Maximize ad spend Initiative: Paid search engine marketing KPI: Revenue per visit
29 Analyzing the data Site: Walmart KBR: Maximize ad spend Initiative: marketing KPI: Revenue per visit
30 Analyzing the data Site: Walmart KBR: Maximize ad spend Initiative: All acquisition channels KPI: Revenue per visit
31 It s not about the data. It s never been about the data. It s about what you do with the data. - Josh James, Founder, Omniture
32 Optimization: Automating the do
33 Automating the do
34 Example: Maximize ad spend Backcountry.com Paid Search On-Site Conversion
35 Example: 25% increase in revenue Backcountry.com Sample data for illustration purposes only
36 What about offline? Vintage Tub & Bath How online ad spend impacts total revenue? Which searches lead to sales via call center? How to maximize profitability for each product? 36
37 Profit optimization
38 Vintage Tub & Bath Optimizing for profit across channels 38 Imported call center data and COGS data nightly into Omniture Linked call center orders to search keywords Discovered 50% of online ad-driven sales occur via call center Bid rules automatically adjusted bids for most profitable keywords Increased Profit from SEM by 200%
39 Example: Improve customer experience Site: Walmart KBR: Improve conversion Initiative: Reduce cart abandonment KPI: Revenue per visit
40 Adding to cart
41 Checking out
42 Create an account?
43 Where are they leaving?
44 But why are they leaving?
45 Survey delivered at time of exit
46 Understanding cart abandonment by KPI and by audience
47 What to change?
48 Beware of the Highest Paid Person s Opinion Thinkstock images
49 An objective, data-drive approach to optimization
50 What works best? Test and Target Content on Omniture.com
51 Can you pick the winner? Home page test on Omniture.com +9% Baseline Baseline +24%
52 Can you pick the winner? Landing page test on Omniture.com +42% Guide Webinar
53 Example: Who are our most valuable customers?
54 Leveraging Social Media to understand your customer
55 Leveraging Social Media to understand your customer
56 Example: Should and how can we leverage mobile?
57 Which platforms should I target? Question: What platforms are most important? Action: Invest in key platforms most relevant to your audience
58 Tying concepts together mobile optimization Music Enthusiast +50% increase in response rate +47% increase in conversions +20% increase in subscriptions Photographer
59 We live in a multi-channel world Online Offline Web/Search Store / POS Snail Mail Display Mobile Kiosk/Cafe Customer Call Centers Live Person Television Social Media
60 Not All Channels Are Equal And They Interact With Each Other Banner Print TV Lead Gen Organic Search Paid Search Web Site Widgets Direct Mail Rating Sites Mobile Games Many more conversations and channels Channels have varying degrees of influence Channels are interconnected Acquisition Conversion Retention
61 Multi-channel allocation Sample data for illustration purposes only
62 Example: Cross-channel optimization Vodafone Australia Web/Search Display Mobile Kiosk/Cafe Social Media Live Person Store / POS Television
63 Example: Cross-channel optimization Vodafone Australia Sample data for illustration purposes only
64 Example: 600% ROI and 400% ROAS Vodafone KBR Improve drop outs in conversion process Allocate media budgets for each channel Know more about conversions that started offline but finished online and vice-versa Results Optimized conversion rate by 5% resulting in 600% ROI Centralized reporting resulting in 400% ROAS in months Connected how online transactions resulted in offline sales There was limited media accountability and insights on how different channels work together to drive sales plus the company s search strategy needed a wider set of metrics to reach the next level, something only Omniture could provide. Head of Direct Response Vodafone
65 Your Path to Analytics Enlightenment KBR KPI Analyze Performance Optimize ROI
66 For more information on Visitor Acquisition and Marketing Analytics visit
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