The Promise of First-Party Data: How the Top Brands Get the Strongest ROI for their Data Investments
What is the true ROI on your technology investments?
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Transcript of What is the true ROI on your technology investments?
What is the true ROI on your technology investments?
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Agenda !How to make the most out of your technology investments– Holly Tabor, Associate Strategist, QubitBuilding a testing strategy for 3rd party technologies – Mark Dugdale, Head of Online Marketing & Customer Loyalty, Monsoon Accessorize !Q&A
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How to make the most out of your technology investments !
!!!Holly Tabor Associate Strategist, Qubit@qubitgroup
The average ecommerce business has
30 marketing technologies
on their site
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Qubit, Making the most of your technology investments, 2014
Onsite vs. offsite
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Functional experiential spectrum
Where to start?
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Run a full technology audit
What are your goals?
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What are your goals?
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!
• Conversion rate!
• Customer engagement !
• Average order value !
• Reducing returns!
• Increasing life time value !
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Categorize your technologies
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Building your hypothesis
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Building your hypothesis
Building your hypothesis
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Building your hypothesis
!The basic test: is having this technology better than not having it?
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Building your hypothesis
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!
Ask yourself these kinds of questions
!• Could this be more effective somewhere else on
the page? !
• Is this actually increasing conversions, or just engagement?
• Which marketing channels drive the highest long term value?
• Does this tool actually drive revenue? !
• Does this technology reduce customer returns?
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What are you measuring?
• Conversion rate
• Customer engagement !
• Average order value !
• Reducing returns
• Increasing life time value !
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Running your test
Running your test
!
The 5 checkpoints of testing: !1. Use a randomized control group
2. Formulate a hypothesis
3. Calculate the necessary sample size
4. Wait for the test to reach significance
5. Validate your tests
Compare your results to your vendor’s claims
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Compare your results against your vendors’ claims
Test technologies against each other
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!You might even find that technologies work best in conjunction with each other, rather than on their own Example !!!
Repeat tests, run them regularly
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Check your results by testing again
Optimize how you deploy technologies
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You can begin personalizing your tech deployment
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Do you think you can deploy your tags more effectively?
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Can you deploy your tags more effectively? !Should you deploy live chat just to new visitors? !Should you have a minimum rating threshold to show ratings and reviews? !Is it best to only retarget specific products?
How to make the most out of your technology investments !
!!!Holly Tabor Associate Strategist, Qubit@qubitgroup
Case study: Building a testing strategy for 3rd party technologies
Mark Dugdale
Key Objectives?
• Incremental Revenue– Visits – Conversion – ATV
• Personalise & improve customer experience
• Reduce technology & marketing costs !!
Key Objectives?
Why Test?
• Remove ‘Gut feel’ from decision making and replace with hard data
• Truly understand new technology effectiveness against our KPIs
• Effectively measure ROI
• Supplier leverage
How do we do it?
• Continuous pipeline
!
• Prioritize in order of return !
• Collaborative approach !
• Agree on hypothesis/test conditions
What have we tested?
Onsite: Search test
KPIs Conversion uplift versus control Incremental Revenue ROI (Profit less tech cost)
Hypothesis New improved search functionality will increase website conversions !Segmentation 50/50 split test All users visits (>2)
Onsite: Interactive shopping experience
!
Hypothesis Customers engaging with content will convert better, & spend more.
!Segmentation Purchasers Non Purchasers visits (>2)
KPIs Conversion ATV Conversion of items featured in Editorial Dwell time/Interaction with content
Offsite: Effectiveness of brand PPC
Hypothesis Brand PPC will drive increased site visits, convertors & revenue compared to
Triggers & Segmentation !Purchaser = No, Session number >2 !Goals !Conversion Conversion of items featured in Swoon Interaction with content
Monsoon challenged on incremental revenue driven by brand and brand generic PPC
Proposed control/expose test to measure incremental revenue driven by brand & brand PPC
Cities paired based on visitors, converters & revenue split between control & variant
During test period visitors in variant exposed to brand PPC, visitors in control were not
Pre & post test periods used as control of performance in cities
Incremental revenue driven by PPC in variant cities compared pre & post
What’s next?
• Offsite: Effectiveness of display retargeting
• Onsite: Virtual fitting rooms technology tests !
Thank you
Any questions?
What is the true ROI on your technology investments?
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