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Personalized Marketing Measurement
1.
Personalized Multichannel Marketing
in a Digital World Fuji Xerox Singapore September 23, 2010 fanatic@f5dc.com +65 9111 6849 WWW.F5DC.COM
2.
Agenda
Session Title Duration A Multichannel Marketing 60 minutes Break 10 minutes B 1:1 Experience 60 minutes Break 10 minutes C Measurement 60 minutes Break 10 minutes D Hands-on exercise 30 minutes E Workshop Summary 10 minutes © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
3.
Measurement
Why measure? Marketing old school: The Sales Funnel How to calculate your Return on Investment (ROI)? What is Return on Marketing Investments (ROMI)? How to use the ROI Calculator / Planner to get information to aid decision-making How to determine success of marketing campaigns efforts via measurement? How to maximize the returns on your marketing campaigns? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
4.
The beauty of
digital DIGITAL THE BIGGEST MARKETING OPPORTUNITY ? EVERY MARKETER’S DREAM © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
5.
© F5DC 2010
all rights limited, reproduction forbidden without approval WWW.F5DC.COM
6.
TRACKING
LIVE INFORMATION REACTION © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
7.
© F5DC 2010
all rights limited, reproduction forbidden without approval
8.
195
TOOLS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
9.
SO WHAT ? ©
F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
10.
Wrong focus
WRONG FOCUS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
11.
Reports…Reports…Reports…DATA © F5DC 2010
all rights limited, reproduction forbidden without approval
12.
“Helpful but Incomplete;
Interesting but not useful; Waste of time” Q : Please rate the effectiveness of each social media measurement tool. Poll of Social Media Freebuzz monitoring Tracking Tweeter click Scientific Control 87.8% 87.1% 81.6% 79.9% Fans, connection, effectiveness (tweedeck, FB stream search, Google Alert) Survey Paid Buzz Monitoring Free Analytics software Paid Analytic software 77.4% 71.9% 66.3% Nielsen Buzz Metrics, Cymphony, Radian 6 Google analytics, Quantcast, Youtube analytics Omniture Source: MarketingProf Fall 2009 Survey © F5DC 2010 all rights limited, reproduction forbidden without approval
13.
Why Measure ?
Is the Is the What can I do campaign campaign better next efficient ? profitable ? time ? Metrics ROMI Learnings Target Objective © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
14.
All numbers
should contribute to sales But how ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
15.
Traditional process of
measurement Bottom up approach based on tactic Ie : Banner gives number Report Provides numbers Non linked to business Non related to sales Metrics Non directly usable Tactic in place © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
16.
The right approach
Top Bottom based on strategy Strategy Define what needs to be measured How we should implement it objectives Define target / objectives….. Feed the various agencies to create tactics Metrics Tactics © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
17.
N
U M B E R S How to apply learning to Objectives IMPROVE Why ? Next ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
18.
Measurement
is Planned Leads to conclusion © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
19.
Home work
Scared Time / Budget Knowledge © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
20.
I do not
care if we have zero person going to our event but I want to know it Azar Azhib CMO Microsoft APAC © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
21.
Measurement
is Phase specifics. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
22.
Measurement
is Tactic specifics. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
23.
What you should
get from measuring Raw Data Relative metrics Depths Insights © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
24.
Level 1 :
raw data Raw Data High number of data that are just a static representation of event Click Stream Overlay information Source # visits Clicks Link to traffic generations # page views Related information Visitors…. Bounce rate Rate Raw data is a necessary step where most companies will stop Does not bring added value Difficult to draw information and next steps © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
25.
Level 2 :
relative Metrics Relative Metrics Give value to numbers and raw data Time based Context based Cost based YoY comparison Attachment rate Link to traffic generations Period comparison Visitors…. Weekly…. Relative metrics takes lots of time to compile Non systematic approach Based on numbers, you need to evaluate which one makes sense © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
26.
Level 3 :
Depth Depth “Social Media effect” First time visitor Repeated visitor Promoter Raw information Registered ? Outsider information Relatives Depth elements help you to quantify the relative success of your campaign, website You do not measure the same way a first time visit compared to frequent visitors because you do not expect the same from them © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
27.
Level 4 :
Insights Insights Compilation + Presentation + Highlights + Call to Action Compilation Presentation Highlights Call to Action Raw information Style of content What do you want Learning Relative Audience to show ? What to improve Depth Time Make it simple Deliverables Insights is the most critical phase. If you do not succeed to deliver your message, all your past work is reduced to 0 © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
28.
Measure the right
thing CPP CPC 4% click rate delivery Page rank guarantee DOES NOT EXIST DOES NOT EXIST Sales Impact / Brand Impact © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
29.
DATA REPORTS INSIGHTS © F5DC 2010
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30.
Master the
process to get to proper measurement © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
31.
First, learn
how to calculate basic sales funnel © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
32.
Sales funnel basics
Action % # % to target Send eDM 100 10 000 100% Receive 80% 8 000 80% Open 30% 2 400 30% Click 50% 1 200 15% Purchase 10% 120 1.5% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
33.
Sales funnel basics
Action % # % to target Send eDM 100 10 000 100% Receive 80% 8 000 80% Open 30% 2 400 30% Click 50% 1 200 15% Purchase 10% 120 1.5% Always calculate to the “received number”, not the sent © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
34.
Plus additional margin
Action % # % to Action Unit X Total target Margin 10 120 $1200 Send eDM 100 10 000 100% Margin of your product Receive 80% 8 000 80% Open 30% 2 400 30% Always calculate the extra margin, not the revenue Click 50% 1 200 15% Purchase 10% 120 1.5% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
35.
Plus Campaign cost
Action % # % to Action Unit X Total target Margin 10 120 $1200 Send eDM 100 10 000 100% Campaign cost $5000 Receive 80% 8 000 80% Campaign ROI -$3800 Open 30% 2 400 30% Click 50% 1 200 15% Campaign cost based on Margin Purchase 10% 120 1.5% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
36.
Cost acquistion Action
% # % to Action Unit X Total target Margin 10 120 $1200 Send eDM 100 10 000 100% Campaign cost $5000 Receive 80% 8 000 80% Campaign ROI -$3800 Open 30% 2 400 30% Cost per Sales $41.67 Click 50% 1 200 15% Purchase 10% 120 1.5% It cost $41.67 per customer © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
37.
Campaign conclusion What
Numbers Explanation Open 30% Message is very relevant , they are interested Click 50% The offer is attractive, they want to know more Purchase 10% Extremely low number ROI -$3.8K Campaign not profitable What went wrong ? : Offer is wrong Option 1 Try to sell wrong product to wrong audience Option 2 The product is really bad Option 3 They did not get it Option 4 Something went wrong in purchase cycle (technical) © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
38.
Another conclusion What
Numbers Explanation Open 30% Message is very relevant , they are interested Click 50% The offer is attractive, they want to know more Purchase 10% Extremely low number ROI -$3.8K Campaign not profitable Cost/sale $41.67 % 1.5% Not bad actually 2nd option : campaign too expensive Option 1 Spend too much money to acquire customer Reducing cost will increase ROI, reduce cost / sales © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
39.
Conclusion
Only proper sales Importance of funnel leads to measurement conclusion Importance of understanding the numbers Need to have context to draw proper analysis Only by getting metrics / strategy / context / you will maximize your marketing spendings © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
40.
Then
apply to real campaign © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
41.
Updated marketing sales
funnel © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
42.
Planning campaign is
the only way to succeed Consumer needs Strategy Where are What do I expect consumer today. from consumers Starting point at the end ? What are the steps I expect from him ? Key opportunity from each Media : Include or not Marketing objectives How each elements brings me closer to my goal Tactics and response time Promotional Modules Information category Each phase has its own objective Measurement of each steps, how many goes from A to B As detailed as possible © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
43.
Step 1.1 –
Definition of Process Phases Online banner Social Media Website DataBase Conversion acquisition Sales eDM offer Social Media © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
44.
Defining objectives :
sales Funnel Each Step What to do ? What Measure ? Simulate Campaign before it starts Tactics Campaign Modules Media © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
45.
Defining objectives
Step 4 Buy Step 3 What to do ? What Measure ? Step 2 What to do ? What Measure ? Step 1 What to do ? What Measure ? What are the steps I expect from him ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
46.
Concrete example
I want to recruit 5.5k members or fans How much money do I need ? Cost Media Conversion Number Final Objective $5.000k Internal DB 10.000 30% 3.000 3.000 $5.000k Banner Ad 30.000 5% 1.500 1.500 $50.000k TV Ad 100.000 1% 1.000 1.000 $60.000k 140.000 fans 5.500 fans © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
47.
In our example
25 x times more people © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
48.
© F5DC 2010
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49.
Calculate
value of responsive group © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
50.
How to measure
which group is more responsive ? Example, among all the person sub segmentation + INDEX we targeted, it seems that female from 25-35 are more responsive Step 1 : Start from the base Step 2 : Calculate their distribution Step 3 : How many of them acted ? Step 4 : Acting distribution Age group ? Step 5 : Comparison of distribution , not Sex values © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
51.
© F5DC 2010
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52.
Compare
campaign efficiency © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
53.
Introduction to ROMI
Planning - Preparation Campaign Follow up activity AUDIENCE ENGAGE CTA SALES How do you get me to do what you Activity Sales would like me to do ? the right audience ? How much does it cost per tactic to Total cost of the How much sales bring me to your CTA activity does it generate © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
54.
Long Term ROMI
example Contacted Value of Incremental Initial Contact Brand and Product Awareness Prospects Value of Incremental Visit Website Product Awareness Initial Response Value of Incremental Apply for Seminar Product Evaluation Initial Action Product Participate in Seminar Education End Action Sales Target Sales Leads Value of Incremental Sales Lead Acquisition © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
55.
Applying Value to
ROMI 1. Expected Sales Conversion Rate 2. Comparison of various activities to drive web-traffic (cost per visit) 3. Value of Acquired Data (Active Commitment) 4. Value of Participation in promotional Activities 5. Value of Viral Distribution Volume (Free Contacts) 6. Value of Exposure in Social Networks (Free Contacts) 7. Downloads, Uploads, etc. (Active Engagement) © F5DC 2010 all rights limited, reproduction forbidden without approval
56.
ROMI Example –
Event Total Campaign Costs $ 100,000 Total Event Participants 10,000 Total Incremental Sales $ 2,000,000 Sales Margin 60% Incremental Margin $ 1,200,000 Sales ROMI = $ 2,000,000 : $ 100,000 = 20 Margin ROMI = $ 1,200,000 : $ 100,000 = 12 © F5DC 2010 all rights limited, reproduction forbidden without approval
57.
ROMI Example –
By Channel by Direct Mail by Online Banner by Print AD Cost for Event Invitation $ 10,000 $ 2,000 $ 20,000 Event Participants 3,000 1,000 6,000 Event Cost (Participants) $ 20,400 $ 6,800 $ 40,800 Total Costs $ 30,400 $ 8,800 $ 60,800 Incremental Sales $ 600,000 $ 200,000 $ 1,200,000 Incremental Margin $ 360,000 $ 120,000 $ 720,000 Sales ROMI 19.7 22.7 19.7 Margin ROMI 11.8 13.6 11.8 © F5DC 2010 all rights limited, reproduction forbidden without approval
58.
Key Performance Indicators
- Campaign Total Contacted Targets 5,840 ROMI 1 Total Contacts 15,869 Average Contacts per Customer 2.7 Unique Site Visitors Identified 677 Response Rate - Targets to Site Visitors 11.6% Response Rate - Contacts to Site Visitors 4.3% Total Unique Visitors 1,968 ROMI 3 Total Event Reservation 189 Response Rate - Site Visitors to Reservations 27.9% Response Rate - Targets to Reservations 3.2% Total Invitations sent 135 Total invited Event Participants 89 Total "walk-in" 59 "Walk-in" Rate 39.9% Total "No-Show" 46 "No-Show" Rate 34.1% Total Event Participants 148 ROMI 4 Key Performance Indicators - Qualified Sales Leads Sales Leads - Qualified as HOT (80% Sales Chance) 11 Sales Leads - Qualified as Warm (60% Sales Chance) 8 Total Generated and Qualified Sales Leads 19 ROMI 5 Conversion Rate Participants to Sales Leads 12.84% Total Campaign Costs 30,000 Costs per Qualified Sales Lead 1,579 © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
59.
Philips LED -
Campaign Metrics China Module Update: 2010-03-31 Generating Site Traffic Consumer Profile Voucher Management Campaign Response Male Consumers Road Shows Created Distributed Registered Free Sign-up Pre-Order < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Female Consumers Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Subtotal 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total Acquired Consumers Delivered Unique Site < 20 Years 8,888 1.0% Other Traffic Drivers Click Through CTR Site Visits Impressions Visitors 20 - 29 Years 8,888 1.0% Philips.Com 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 30 - 39 Years 8,888 1.0% Media 1 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 40 - 49 Years 8,888 1.0% Media 2 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 > 49 Years 8,888 1.0% Media 3 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 unknown age OR gender 8,888 1.0% Media 4 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Media 5 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Media 6 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Family Profile Media 7 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Single 8,888 1.0% Media 8 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - No Children 8,888 1.0% Media 9 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - Yes Children 8,888 1.0% Media 10 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Others or unknown 8,888 1.0% Subtotal 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Site Traffic Response Mechanics Total Site Traffic Unique Visitors Site Visits Free Sign-up Pre-Order Campaign Key Performance Indicators Road Shows 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Pre-Ordered LED Products 888,888 Other Traffic Drivers 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Redemption Vouchers Sent 888,888 Total Traffic 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Vouchers Redeemed for Purchase at Retail-POS 888,888 Redemption Rate 1.00% Engagement and Sales Conversion Total Unique Site Visitors 888,888 Sent Delivered Opened Site Visits Pre-Order Total Site Visits 888,888 Sorry E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Estimated Site Re-Visitation Rate 1.00% Monthly Newsletter 1 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 2 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 3 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Total Newsletter 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Completed Consumer Surveys (Percentage based on Total Unique Site Visitors) 888,888 1.00% Reminder E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Total Campaign Costs - EUR 888,888 Total Number of Sales 888,888 Stock Available E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Average Net-Profit per Sales - EUR 888,888 Total Engagement 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Return on Invest (ROI) / Return on Promotion (ROP) 1.00% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
60.
What matters
IS NOT IS The cost of your How much extra campaign sales it generates © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
61.
STUDY CASE
SIMULATION PHASE WWW.F5DC.COM ROI CALCULATOR © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
62.
http://www.fujixerox-transpromo.com © F5DC 2010
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63.
HANDS-ON EXERCISE
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64.
Touch point Analysis
Map your customer experience journey • Delivery mechanism, channel , promise from brand Identify the various contact point • Organize, check for message consistency, channel linkages Touch point functions • Does it fulfill the objectives? Determine the elements to measure • You can measure almost everything, be selective © F5DC 2010 all rights limited, reproduction forbidden without approval
65.
Thanks. Do you have
any question ? http://bit.ly/aEmARR f5dc gregbirge fanatic@f5dc.com +65 9111 6849 WWW.F5DC.COM