Marketing objectives, measurement and metrics - the road to success
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Transcript of Marketing objectives, measurement and metrics - the road to success
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Marketing goals and measurement
17/02/14
Roope Ruotsalainen Chief Digital Officer Frankly Partners, Finland
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Marketing objectives. What for?
17/02/14
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17/02/14
Data is everywhere. Analytics is everywhere.
Frankly Partners Marketing goals & digital success
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17/02/14
Marketing communication is 3 380 000 000 € industry in Finland.
Money well spent?
Frankly Partners Marketing goals & digital success
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17/02/14
Challenge: semantics.
Is it a cost or an investment?
Frankly Partners Marketing goals & digital success
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17/02/14
Few problems:
1. Marketing objectives are not reflecting business objectives 2. Objectives and their measurement are not connected
3. Irrelevant things are measured
Frankly Partners Marketing goals & digital success
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- My display advertising sucks. - Why? - It costs more than it generates sales. - Ok, but what was the its objective and role? - I wanted to generate awareness. - Should you then measure awareness?
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How to master the measurement?
1. From anarchy to hierarchy 2. Only actionable knowledge 3. Leadership of the data age
Frankly Partners Marketing goals & digital success
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1. From anarchy to hierarchy
17/02/14
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17/02/14
If it is possible to measure, it doesn’t mean it’s useful to measure.
Frankly Partners Marketing goals & digital success
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# of clients
Display ad impressions
# sold items Total profit (eur)
Channel’s share of total revenue
Cost of marketing Product returns (%)
Sent emails (#) Emails opened (#) Emails opened (%)
Emails clicked (#) Emails clicked (%)
Coupons prited (#) Coupons used (%)
Visits Pages / visit Avg. time per visit New visits
Ecom revenue (eur)
Avg. purchase (eur) Ecom conversion (%)
Total revenue (eur)
Display ad CTR % Display ad CONV % Cost per click
SEM clicks (#) Most popular content/pages SEM CTR % SEM Cost per click SEM CONV %
Site search most popular KW’s TV ad contacts (#)
TV ad cost per contact TV ad OTS opportunity to see
Facebook followers (#) Facebook post reach (#)
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17/02/14
Business objectives are marketing objectives.
Frankly Partners Marketing goals & digital success
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And objectives & measurement goes always hand-in-hand.
Frankly Partners Marketing goals & digital success
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Reach Response Result
Marketing measurement – typical categories of metrics
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Reach Response Result
Marketing measurement – typical categories of metrics
Metrics / measurement for
objectives
Metrics explaining what happens and
why it happens
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Reach Response Result
Marketing measurement – typical categories of metrics
How many saw?
Site: visitors Email: open rate
How many reacted?
Site: form submission Email: completion rate
How much sales?
Site: conversion rate Email: acquisition rate
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17/02/14
The big picture: build hierarchy in order to understand
what actually happens.
Frankly Partners Marketing goals & digital success
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2. Only actionable knowledge
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Actionable knowledge?
= knowledge, that leads to action.
Frankly Partners Marketing goals & digital success
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Actionable knowledge?
Objectives and measurement matters only, if action takes place after measuring.
Frankly Partners Marketing goals & digital success
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Process. React hourly, daily, weekly, monthly.
Frankly Partners Marketing goals & digital success
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MODELLING - the big picture
SCENARIOS AND
OPTIMIZATION
• What is optimal budget, what is optimal marketing mix
ALLOCATION
• Allocating budget and marketing mix accordingly
FOLLOW-UP AND REACTION
• Measuring the actions and reacting to achieve best results
• How different variables affect the sales and other outcomes
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17/02/14 Frankly Partners Marketing goals & digital success
Hmm, okey. Good to know. Let’s keep on going without changes.
Hey, I’ve forecasted that this week there’s less demand than normally!
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17/02/14
Measurement doesn’t matter. The action you take matters.
Frankly Partners Marketing goals & digital success
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3. Leadership of the data age
17/02/14
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17/02/14
Digitalization changed the game of the analytics
Frankly Partners Marketing goals & digital success
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17/02/14
92 % of all the data in the world has been created during past 2 years
Frankly Partners Marketing goals & digital success
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17/02/14
“With data-driven insights, companies can achieve 10 % to 30 % improvements in
marketing performance, yet maintain their existing budgets.”
Frankly Partners Marketing goals & digital success
- Nichols, on Harvard Business Review
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17/02/14 Frankly Partners Marketing goals & digital success
REVENUE
MARKET
SEASON
UNEMPLOYMENT
CONSUMER INDEX GAS PRICE
ONLINE DISCUSSIONS
COMPETITORS PRODUCT
LAUNCHES
PRICING
ADVERTISING
PROMOTIONS
ACTIVATION
REVENUE SOLD ITEMS MARGIN MARKET SHARE CLIENT LIFE-TIME VALUE
PRINT ADS
TV COMMERCIALS SO-ME
DIRECT MAIL
SEARCH (SEM/SEO)
MARKETING
PR DIALOGUE
MOBILEAPPS
CLIENT SERVICE
PROMOTIONS
POINT OF SALE
EARNED MEDIA
PRICING
DIGITAL SERVICES
MARKETING BUSINESS
SEARCH BEHAVIOUR SOCIAL RECOMMENDATION SERVICE USAGE VISITS TO BRICK&MORTAR
Source: Harvard Business Review
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17/02/14
But measurement, data, analytics and insights are nothing, without re-thinking leadership.
Frankly Partners Marketing goals & digital success
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17/02/14
It’s about asking right questions. It’s about asking “why”, not “what”.
Frankly Partners Marketing goals & digital success
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17/02/14
After asking “why”, ask predictive questions.
“How I should optimize the budget within the product portfolio?” “Which budget maximizes the revenue and profit?”
Frankly Partners Marketing goals & digital success
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In summary…
17/02/14
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1. Business objectives are marketing objectives 2. Choose only relevant indicators
3. Hierarchy: reach – response – results 4. Actionable knowledge: always react
5. Analytics is about asking “why”
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Thank you!
follow @ruotsalainenr more presentations at slideshare.net/roope
17/02/14
Roope Ruotsalainen Chief Digital Officer Frankly Partners, Finland