Metrics for Measuring Internet Marketing ROI
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Transcript of Metrics for Measuring Internet Marketing ROI
Metrics for MeasuringInternet Marketing ROI
Pete KeverPrincipal & Co-FounderGHI Internet Services
Agenda
1. GHI Corporate Overview (3 minutes)
2. What Is Internet Marketing? (5 minutes)
3. Why Internet Marketing Matters (5 minutes)
4. Creating an ROI Plan (2 minutes)
5. ROI Metrics: Processes & Tools (10 minutes)
6. ROI Metrics: Tactics & Examples (10 minutes)
7. Next Steps (2 minutes)
GHI is holding company comprised of seven privately-held firms in eight industries serving more than 5,200 clients worldwide. With staff on four continents and 400 business partners distributing GHI’s 90+ products and services …
GHI Mission
Helping Companies Connect Smarter™
with their customers, people, products, and processes to improve clients’ brands and grow revenues.
GHI Recognition & Awards
Small Business of the Year Award
Entrepreneur of the Year
Weatherhead 100 Award
Distinguished Marketing and Sales Award
Who’s Who in Technology Award
Cascade Capital Business Growth Award
GHI Recognition & Awards
Total Quality Management Gold Medal Award
Team NEO Success Award
Telly Award for Film / Video
Top 25 Internet Design Firms
Top 30 Largest Telecom Brokers
Success Stories…
• Tire retailer grew web site traffic 600%; orders into call center grew 300%
• Online furniture store grew revenues 900% within 24 months
• Logistics firm attributed 70% growth to internet sales
• Non-profit increased unique visitors from 600,000 to 3.2M
• Major clothing retailer landed at the top of the Search Engine results pages in less than 2 months
• Manufacturing client increased sales leads by 1000%
• Distributor client achieved $250,000 in new sales within 2 months
• Industrial manufacturer of arc furnace electronic devices generated $1M in internet sales within first 9 months.
By the numbers…
• First Client 1997: Early Adopter
• Managed more than 650 SEM Campaigns
• Largest Competitive Web Firms in town Outsource 100% of their SEO Projects
• 200+ SEM Partners worldwide & growing
• SEM represents 60% Internet Revenues
• 7 Staff Members dedicated to SEM
The best way to find new customers…
is to simply let them find you!™
SEM Experience / Success Stories
Air Enterprises
American Coffee Services
A Schulman
Ashland University
AtomicBox Logistics
Atromick
Auburn Environmental
Bacons Information
Brilliant Learning Centers
Calfee, Halter & Griswold
Callos Companies
Cardinal Commerce
Catan Fashions
CBIZ
Charter One Bank
Chico’s
Coldwell Banker Realty
Computer Sciences Corporation
Conrad’s Tire Express
Copperloy
Coral Company
Ellin LaVar Textures
Encompix
Ganaden Bio
GBS
Gerspacher Real Estate
Great Lakes Computer
Greater Medina Chamber of Commerce
Guardian Industries
HomeOfficeDirect.com
HH Greg
Hoffman Group
Honeywell Corporation
IHomeSchool.com
Interlake Stamping
Jetdock
Martindale Electric
National City Bank
NCLB Tutors
Reich & Binstock
Rick Santorum, US Senator
RICO Equipment, Inc.
Rocky Outdoor Gear
Speith, Bell, McCurdy & Newell
Stanley Proctor
Taft Law
Tape Rental Library
The Coral Company
Time Warner Cable
Tradesman International
Trillium Creek
Valley City Supply
Vernon Law
Watteredge
White Hat Management
Worthington Precision Metals
… Over 650 SEM Engagements since 1997
The best way to find new customers…
is to simply let them find you!™
SEM Partial Client List
Internet Marketing Overview
Web DesignOnline
AdvertisingSearch Engine
Marketing (SEM)Email Marketing
Social Media Marketing (SMM)
Branding
Content
Navigation
Usability
POD-Casting
VOD-Casting
Rich Media
Monetized Content
RSS Feeds
Banner Ads
Affiliate Marketing
Online Marketplaces
Forum Sponsorships
Local Advertising
Online Yellowpages
Shopping Comparison Sites
HTML Creation
Newsletters
E-Zines
Viral Campaigns
Surveys
Endorsed Emailings
Market Research
Search Engine Optimization
(SEO)
Pay Per Click Advertising
(PPC)
Analytics Code Optimization Content Development Link Building
Social Network Profiles
Blogs
Online Advocacy / Reputation Management
Social Bookmarking
Video Search
Viral Marketing
User Review Sites
Conversion Optimization
PPC Ad Optimization Search Term Research Local Search
Clickstream Analysis Origination Analysis Landing Page Development
Multivariate Testing Usability Graphic Design
Why is Internet Marketing Important?
The Internet is still growing! In fact, the Internet is one of the few retail areas of the current economy that is still experiencing double-digit growth.
• $165.9 billion: Total U.S. Internet retail sales in 2007.
• 1.5 billion: The estimated number of Internet users worldwide.
• 190 million: The estimated number of American Internet users.
• 12 billion: The number of searches performed per month on the Web.
• 85%: The number of web users that start their web experience using Search.
• 172 Billion: The number of email messages sent per day.
• 210 Million: The number of combined Facebook and MySpace users.
• 96 million: The number of blogs tracked by Technorati.
Source: ClickZ
Why is Internet Marketing Important?
Estimated Quarterly U.S. Retail E-commerce Sales as a Percent of Total Quarterly Retail Sales:
4th Quarter 1999–4th Quarter 2007Percent of Total
Source: U.S. Census Bureau
Why is Internet Marketing Important?
Internet Marketing, specifically SEM is targetable and trackable.
Targetable – you can target and reach exact markets with your message, at the point in time they are willing to make a purchase decision.
Trackable – you can get “instant” market intelligence from yourcampaigns that is either impossible or too costly to obtain in other media.
Creating Your ROI Plan
Define the Plan
Define Goals & Objectives
Establish Budgets
Create Project Plans
Identify Key Metrics
Analyze, Repeat
Plan {
Build {
Measure {
ROI = Research, Optimization, Intelligence
ROI Metrics Measurement Process
Research
Data discovery
Optimization
Improving your website to capitalize on the data
Intelligence
Learning about the results
ONGOING
Research
1. Empirical, timely, specific data about search behavior patterns is available online, at your fingertips, revealing the exact words your potential customers are searching with, and how much competition you face.
ROI Metrics Measurement Process
Research
2. Today’s site traffic analysis software allows you to mine rich information about your site visitors:
• How a visitor found your site; what keyword they used, and when• The exact path they took through your site• How long they stayed• At what point they left your site• Their geographic location• Whether they fulfilled one of your goals
This data can be aggregated to give you a well-rounded picture of your overall site traffic, and whether you are attracting visitors that are likely to become customers.
ROI Metrics Measurement Process
Optimization
1. We are no longer only a nation of sellers…We are becoming a nation of buyers.
Hunters have become the hunted …
The best way to find new customers…is to simply let them find you!™
ROI Metrics Measurement Process
Optimization
2. One of the largest most profitable companies in the world – Google – is working to bring business to you. If Google doesn’t help you succeed…they don’t succeed.
Optimize your site to drive search engine traffic to it. Then optimize your site to convert those visitors to buyers.
ROI Metrics Measurement Process
Intelligence
1. Know how to interpret your web site traffic data. Keepmaking changes to your web and internet marketing plans.
ROI Metrics Measurement Process
Intelligence
2. As you learn more about your site visitors, keep testing variations of your pages and content. Unlike other media, you can develop many versions of your ads and content quite easily and inexpensively. And you can get instant feedback on the results for comparative analysis.
ROI Metrics Measurement Process
You will repeat the ROI cycle forever…why?
• Market research data changes as user behavior shifts. • Thus, optimization tasks never stop. • And, you learn more every day as your gain more
intelligence.
Metric Measurement Process
The good news about this never ending ROI “cycle”:
It all starts with facts during the market research, works alongside the mathematical science of search algorithms, and is improved upon by the creative minds of marketing people like you!
ROI Metrics Measurement Process
How To Carry Out “ROI”
Research: Market Research
• Think about how your company “goes to market.” What do you sell and to whom?
• Research why people search for what you sell. Are they looking for a product? Are they solving a problem?
• Study your site’s visitors. How many visitors do you get now? Where do they come from? If they use search engines to find you, what words are they using and what pages are they landing on?
• Research web sites in your vertical market spaces, including blogs, message boards, periodicals, directories, social media sites and content aggregation sites. Do your customers use these resources?
ROI Metrics Measurement Tools
Research: Keyword Research for Search Marketing
Creating an effective search engine marketing campaign means attracting visitors to your site with keywords that are most likely to convert them into a customer!
Never assume the keywords your potential customers will use. Invest in an SEM campaign using the wrong keywords – and all of your efforts are in vain.
ROI Metric Measurement Tools
Research: Keyword Research for Search Marketing
Keyword research tools:
• Google – use the free Keyword Tool at www.google.com/keywords and Google Trends at www.google.com/trends.
• Wordtracker – subscription-based web site that contains samples of searches: www.WordTracker.com
• Keyword Discovery – subscription-based web site that contains samples of searches along with geographic data: www.KeywordDiscovery.com
ROI Metric Measurement Tools
Research: Keyword Research for Search Marketing
Google’s free Keyword Tool at www.google.com/keywords
ROI Metric Measurement Tools
Research: Competitors
Learning what your competitors are doing can help in formulating your own Internet marketing strategy. Competitive research tools include:
• Competitors’ Web Sites – study their site for keywords and phrases they use. These might be effective keywords for you to use in your SEM campaign. After listing these keywords, use the keyword analysis tools to determine their popularity.
• Google – conduct a back-link lookup to see what sites are linking to your competitors. Type link:www.YourCompetitor.com into the Google search box.
• Compete.com and Quantcast – shows traffic trends for competing websites and demographic data.
• SEODigger.com – find out for which keywords a site ranks high enough to be in Google’s Top 20.
ROI Metric Measurement Tools
Optimization: Search Engine Marketing (SEM)
SEM is comprised of:
• Organic Search Engine Optimization (SEO) attempts to improve rankings for
relevant keywords in search results by improving a web site's structure,
content, and relevant back link count.
• Pay Per Click (PPC) advertising uses sponsored search engine listings to
drive traffic to a web site. The advertiser bids for search terms, and the search
engine ranks ads based on a competitive auction as well as other factors.
ROI Metric Measurement Tools
ROI Metric Measurement Tools
ROI Metric Measurement Tools
Optimization: Conversion Optimization
Conversion Optimization: CRITICAL
Improves specific web pages to increase the likelihood that a site visitor will convert to a customer or a qualified prospect.
• Apply best practices in web design to help visitors find information that will help them make a decision.
• Study traffic patterns to see which pages or content is performing on your site, and which are not.
• Test various versions of web content to see which performs better (also known as multi-variant testing)
ROI Metric Measurement Tools
Optimization: Email Marketing
Email Marketing involves sending out targeted email communications to warm market leads or current customers, to improve communication and allow new sales opportunities:
• Setup a newsletter to send corporate communications, promotions, or helpful information to your current customers or prospects
• Capture email addresses from web site visitors by asking them to sign up for your newsletter, or require it to download a white paper
ROI Metric Measurement Tools
Optimization: Social Media Marketing
Social Media Marketing promotes your online brand by placing ideas within online communities with the hope that they will spread virally:
• Depending on your target market, your organization or company might have a Facebook profile, a MySpace profile, or a LinkedIn profile, among others.
• Your company should have a blog with specialized “content experts” that post at least 1 article per week, geared toward helping your potential customers make decisions.
• Businesses and organizations with a local focus should have a local search engine marketing campaign, be active within local discussion boards, setup local profiles on community sites, and post testimonials on review sites.
ROI Metric Measurement Tools
Intelligence: Web Site Traffic Analysis Software
If you don’t have web site traffic analysis software running on your web site, get it set up immediately…you are flying blind!
• If you host with a third-party provider, they can normally install a free or low-cost system.
• Some traffic analysis software can run into tens of thousands of dollars.
• Google Analytics is free of charge, www.google.com/analytics - and includes many features found in higher-priced commercial systems.
ROI Metric Measurement Tools
Key ROI Metrics
Two types of High Level ROI metrics to track:
Tactical metrics, such as higher search engine rankings
or more site traffic.
Strategic metrics, such as REVENUE, topline revenue,
number of qualified leads, number of new name
accounts, new distribution channels obtained, etc.
Key ROI Metrics
Examples of Tactical ROI Metrics
Unique Web Site Visitors
Average User Session Length
Average Bounce Rate Per Page, or For Site
Popularity of Key Conversion Pages
Number of Top 10 Rankings in Google, Yahoo, MSN
Search Engine Referral Rate
Number of Search Engine Referrals
% Growth in Link Popularity
% Growth in Site Traffic
Top Search Engine Rank for Company Name
Top Search Engine Rank for Company Brands
Average % Search Engine Referral Rate
Number of National / Local Interviews
Number of Pickups / Mentions in Major Media (Fox, Cleveland Plain Dealer, Newsweek etc)
Number of Mentions in “Blogosphere”
Key ROI Metrics
Examples of Client-Specific Tactical ROI Metrics
Rank #1 in Google for brand names
Rank #1 in Google for company principals’ names, or law firm partner names
Google results page descriptions accurately describe a specific page on the site
Increase impressions for a PPC campaign
Push negative online press to 2nd page of Google
Rank #1 in Google for any keyword related to “Medina, Ohio”
Rank above competitors for competitor names and brands
Key ROI Metrics
Examples of Strategic Based ROI Metrics
Total Sales – usually the most important metric!
Number of New Customers
% Change In Number of Sales
Average Sale Dollar Amount
Top Selling Products
Number of Leads Generated
Featured Promos Conversion Rate
Printable Coupons Conversion Rate
Average % Conversion Rate Vs. Industry Averages
Number of Newsletter Signups
Number of Surveys Taken
Key ROI Metrics
Tactical Metric ROI Examples
Metric: Top Ranking in Google for Keyword “ABC”
Tracking Mechanism: Perform a test search in Google
Value of Metric: Popularity of the keyword, effect on the online brand and number of potential site visitors:
Number of Monthly Searches #1 Rank Results in Traffic to Site
5,000 5,000 new impressions 500 visitors
Key ROI Metrics
Tactical Metric ROI Examples
Metric: Popularity of Key Conversion Page
Tracking Mechanism: Number of times a key page was viewed in a month, compared to the rest of the site.
Value of Metric: Percentage of overall site traffic that found the key conversion page.
Monthly Site Visitors Monthly Key Page Views Percentage of Views
1,000 200 20%
Key ROI Metrics
Strategic Metric ROI Examples
Metric: Total Sales
Tracking Mechanism: The web visitor reaches the “Receipt” page after checking out and paying.
Value of Metric: Total Value of Sales.
Sales Total Value Average Value Per Sale
10 $1,000 $100
Key ROI Metrics
Strategic Metric ROI Examples
Metric: Total Sales from Specific Keyword
Tracking Mechanism: The visitor reaches your website via a specific keyword search, and reaches the “Receipt” page after checking out.
Value of Metric: Average dollar per sale TIMES number of sales MINUS cost of top ranking for that keyword.
Sales Total Value Cost of KeywordNet Profit from
Keyword
10 $1,000 $100 $900
Key ROI Metrics
Strategic Metric ROI Examples
Metric: Number of Leads Generated
Tracking Mechanism: The visitor reaches the “Thank You” page after filling out a Request Form.
Value of Metric: Number of leads that convert to customers TIMES the average value of those customers.
Percentage of Leads That Close
Value of Each Sale
Value of Lead
25% $1,000 $250
Key ROI Metrics
Strategic Metric ROI Examples
Metric: Number of Leads Generated from SEO Campaign
Tracking Mechanism: The visitor reaches your website via organic search engines, then reaches the “Thank You” page after filling out a Request Form.
Value of Metric: Number of leads that convert to customers TIMES the average value of those customers MINUS cost of the SEO Campaign.
SalesValue of Each
SaleTotal Value
Cost of SEO Campaign
Net Profit from SEO Campaign
10 $1,000 $10,000 $1,500 $8,500
Key ROI Metrics
Strategic Metric ROI Examples
Metric: Number of Sales Generated from Email Newsletter Subscriptions
Tracking Mechanism: The email subscriber clicks a link within an email newsletter, then reaches the “Receipt” page after checking out.
Value of Metric: Number of subscribers that convert to customers TIMES the average value of those customers MINUS cost of the Email Campaign.
% Of Subscribers That Become
Customers
Value of Each Sale
Value of Each Subscriber
10% $50 $5
Build IM as a core competency:
Hire: $150k for experienced SEM manager, another $40k for each SEM specialist. Potential $250k direct investment the first year alone plus sales and marketing costs.
Transfer: Many IM firms like GHIIS have coaching services that transfer knowledge, best practices, proprietary tools & systems, processes to you for a much smaller investment.
Partner: Strategically align with an outside internet marketing firm to co-own, co-brand or simply resell the service.
Next Steps
Clearly define the goals of your site. Determine what elements within the Internet Marketing world make
sense for the goals you are trying to achieve. Establish defined metrics that you will use to track each of those goals. Define, set up and manage the tools to measure the metrics - web site
traffic analysis software.
Whether you decide for or against an SEM campaign, we recommend you conduct strategic market and keyword research to identify, validate and determine the optimal terms to reach and grow your target markets. This alone will impact your ROI for your web site and related IM campaigns.
Next Steps
Start an email newsletter using email marketing software that can track clicks to your site. Begin by sending it out once per month to your house list.
Setup a small test Google AdWords or Yahoo Search Marketing PPC campaign. You can start for as little as $1 per day. Coupled with web site traffic analysis, you can learn a great deal about your web site visitors in a short amount of time.
Do “ad hoc” usability testing with clients, partners, even friends & family. Assign them tasks on your site, watch what they do, and record it.
Other Steps