FollowFridays, Session 2: The Power of Customer Data and Metrics

The Power of CUSTOMER DATA AND METRICS

Tuesday 2 November 2010

The Beauty of Getting Metrics Right


Metrics in the Digital World



Metrics in the Digital World

Measuring Engagement in Social



Metrics in the Digital WorldMeasuring Engagement in Social

Takeaway Tweets



01. THE BEAUTY OF GETTING METRICS RIGHT


“38% of marketers say new marketing campaigns are rushed to market based on the limited intuition of a few people.”

Source: Forrester


Rationality

Analytical thoughts

Logic

Science & Math

Creativity

Holistic Thoughts

Intuition

Art & Music



Analysis Creativity

Science + Art = ROI


Nearly 7 out of 10 marketers have a hard time arriving at an agreed-upon definition

of ROI for their campaigns.

Source: Forrester


A virtuous closed-the-loop process

Objectives1.

What do we want to achieve with whom ?Which belief and/or behaviour change? What’s the investment required?



Objectives1.

What do we want to achieve with whom ?Which belief and/or behaviour change? What’s the investment required?

Which key measuable elements do track belief and/or behaviour

change? What are the success metrics? When is it a succes?

What are the goals/benchmarks?

2.KPI’s and Goals


Which key measuable elements do track belief and/or behaviour

change? What are the success metrics? When is it a succes?

What are the goals/benchmarks?

Objectives


1.

2.

Report & Feedback LearningAre we succesful? To what degree? What are the learnings? Take action: apply to current or future campaigns or processes. And measure again.

Optimisation

3.

KPI’s and GoalsWhat do we want to achieve with whom ?Which belief and/or behaviour change? What’s the investment required?


Only 15% of marketers report using a closed-loop marketing process.

Source: forrester.com


How-Tos

# 1. Set customer journey clinch rates # 2. Focus on relevance.


# 1. Set customer journey clinch rates


Create a roadmap that breaks up the customer journey into manageable and measurable stages.


NEW CUSTOMER – 5

PROPOSAL/OFFER – 20

SOLUTIONS DEMO – 50

NEEDS ANALYSIS – 200

PRE-QUALIFIED – 500

CAMPAIGN RESPONSE – 5.000

TARGET LIST – 100.0005%

10%

40%

25%

40%

25%

Customer Journey – Lead Campaign


PURCHASE NEXT –4%

CONSIDER – 12%

LIKE – 23%

FAMILIAR – 32%

AWARE – 44%

Customer Journey – Brand Campaign


Customer Journey – Online Campaign: the massacre.

1000



1000500



1000500

250



1000500

250200



1000500

250200

150


# 2. Focus on relevance.


A good metrics framework!…

does not measure

everything

is easy to understand

leads to action

is supported at C-level


7% NO, IT’S A SUPERMARKET.

7% NO, IT’S A SUPERMARKET.

IS IT A BANK?7% 7%

!"#$%&'()*+%,-./001112

2345&42511122622

Makro 7% Case: using both sides of the brain.


Objectives

Repeat TrafficIncreased Ticket Size Buzz


Insight

In the heat of the financial crisis, Belgian banks tried to seduce consumers with extremely competitive products: the streets were filled with posters screaming out the 4% claim…


Idea

Is it a bank?


Idea

Nope!

Is it a bank?


Instant win online and instore

Idea

Is it a bank?

Nope!


Business case MakroWe know exactly how many

customers visit Makro every 2 weeks

We know exactly the size of their ticket


Business case MakroWe know exactly how many

customers visit Makro every 2 weeks

We know exactly the size of their ticket

Clinch Rate:will the number of new customers

justify the action?

Clinch Rate:will 20% of all customers redeem

their 7%-coupon?



01. THE BEAUTY OF GETTING METRICS RIGHTSmarter Campaigns

Proven Results


02. METRICS IN A DIGITAL WORLD


2 Facts: online marketers today are…

overwhelmed by the volume of

possible metrics availableconfused by the complexity added

to the customer journey


Capacity of your company to measure online activities

Social Media

Direct Response

Online Branding 1,05

1,288

0,845

0 1 2 3<beginner> <advanced> <expert>

Source: FollowFridays Survey


web analytics

Investment inTechnology

# o

f C

ompa

nie

s

Don’t use WA Run Reports Uses Data in

Decision MakingTake Actionfrom Data

Investmentin Staffing

Maturity of Use

18% 37% 40% 5%


are easy and cheap to measure, allow for simple benchmarking with other campaignsseem like more traditional metrics (GRP)

Quantitative metrics such as volume of impressions and clicks are mostly applied because they…


Source : Natural Born Clickers – Comscore – US numbers

Only 8% of the internet population accounts for 85% of clicks.

Clickers are skewed younger

(25 to 44) with lower incomes

(under $40K).

“Beware of the click.”


Occupational therapy


“A click means nothing. A click earns no revenue and creates no brand equity.”



The New Volvo S60: measuring beyond volume.


Briefing DocumentGet

‘Car enthusiasts’To

Increase their awareness, familiarity, opinion and consideration of the new S60 By

Engaging them and their Facebook friends into a Volvo S60 racing competition.





Reach

Impressions: 1.6 mio CPM

+ 23 mio CPCUnique Visitors:

55.056

Viral Invites: 73.754


Engagement Level

Lucky Bastards playing all sets: 2.245

Qualified Lucky Bastards: 3.454

Application Downloads: 11.493


What do Reach and Engagement mean for Real?


Can a relatively small Social Media Campaign have a significant impact?

PreTest PostTest

Active Facebook users (N=+500)

19% of which is a Car Enthusiast

CONSIDERATION

OPINION

FAMILIARITY

AWARENESS


Result: significant shift on all parameters.

PostTest

CONSIDERATIONDelta%-points

OPINION+7,6% points

FAMILIARITYDelta%-points

AWARENESSDelta%-points


58

32

53

18

44

9

The campaign clearly (and obviously) appealed more to car fans

“Please indicate to which extent you agree with the following statements? The campaign…”

is original, different makes me curious is relevant to me

= car fan = not a car fan


3.7 3.95

We did influence the opinion of car fans.

“Please indicate to which extent you agree with the following statements? The S60 is…”

sportive attractive modern

= car fan pretest = car fan post-test

for me and my family

4,1 4,3 4,2

4,4

3,8 3,6


02. METRICS IN A DIGITAL WORLD

Measuring Quality

Richer Insights


03. MEASURING SOCIAL ENGAGEMENT


“No standards, no best practices yet exist for measuring Return On Social Investment.”


What social success metrics to use?


# blog feed subscribers

# Facebook fans

# Twitter followers# unique visitors

# video views

(Returning) visits

Time spentBrand impact

Conversions (info requests, leads, sales)

Changes in user sentiment

# support requests

# comments

# @replies

# inbound links

# retweets

# posts or uploads

# registered users

# UG submissions

# ratings and votes

# Resolved Support issues

Quality of UG submissions

# UG submissions used

# UG submissions implemented

Reach of followers

Reach of FB fansShare of conversation

Viral pass along rate

Sentiment of discussionsInfluence of discussions

What social success metrics to use?


USERS USAGE

QUANTITY

QUALITY

User Reach

User Impact

Volume of Participation

Quality of Participation

How far and wide do my messages spread?

How many user interactions with my social initiatives?

How do my social efforts change consumers’ actions or opinions?

What’s the strength and depth of the user interactions with my social

initiatives ?

Social Platform


USERS USAGE

QUANTITY

QUALITY

User Reach

User Impact



# feed subscribers# followers# FB fans# video views# unique visitors

# comments# posts and uploads# ratings and votes# @replies# UG submissions

time spentreturning visitsconversions brand impactchange in user sentiment

% positive comments% useful reviews# issues succesfully resolvedquality of UG submissions# submissions used or implemented




# likes

# comments


% positive comments

# product use suggestions

# purchase decision

info

…

User Reach

# fans

User Impact

Brand preference shift

Loyalty

Purchase


FAN

FAN

FAN

First degree impact


FAN

FAN

FAN

All-encompassing impact (reach and influence inclusive)


The all-encompassing metric.

Engagement

Engagement=

the level of involvement, interaction, intimacy, and influence that a consumer has with a brand over time


USERS USAGE

QUANTITY

QUALITY

Engagement

Involvement – the presence of a consumer at various touchpoints

(ex. online behaviour stats,…)

Interaction – the actions the consumer takes at those touchpoints

(ex. posts or uploads,…)

Intimacy – the affection or aversion a consumer holds for a brand

(ex. conversation sentiment,…)

Influence – the likelihood a consumer is to advocate on behalf of

the brand(ex. NPS, …)


Complex measurement of 4 i’s.

Customer DatabaseWHO



+


Webanalytics dataONSITE BEHAVIOUR



+ +



Survey dataBELIEFS



+ + +



Survey dataBELIEFS

Social dataSOCIAL PROFILE OFFSITE BELIEFS

& BEHAVIOR


The payoff: social CRM

Meet Bob

Customer of TechCompany

Fan of the Brand

Connects with other consumers


Bob’s Engagement

Involvement Interaction

Intimacy Influence

Typically visits the site three to four times per monthOn average, spends 12 minutes on the siteBrowses the tech gadgets category


Bob’s Engagement


Intimacy Influence

Commented on blog posts three times in the past six monthsIs fan of the company’s Facebook page


Bob’s Engagement


Intimacy Influence

Most of his comments about the company are favorableShares on social platform that high tech products are lacking some key features


Bob’s Engagement


Intimacy Influence

His NP score is 8.5/10Recently set up profile and forwarded links of products he likes to 8 friends


03. MEASURING SOCIAL ENGAGEMENT

Richer Customer Profiling

Most Valuable

Customer?


Impossible?

+ + +



Survey dataBELIEFS


& BEHAVIOR


Impossible?

+ + +



Survey dataBELIEFS


& BEHAVIOR


Gatorade’s Mission Control Center


Gatorade’s Mission Control Center


04. TAKEAWAY-TWEETS


@Franky FrankyPolar organizations focused purely on analytics or creative are destined to fail #FollowFridays


@Franky FrankyMeasure beyond volume, i.e. engagement #FollowFridays




@Franky FrankyMeasuring engagement means measuring and learning from things you currently ignore #FollowFridays





@Franky FrankyIdentifying and targeting “evangelists” rather than only new customers becomes relevant #FollowFridays





@Franky FrankyIdentifying and targeting “evangelists” rather than only new customers becomes relevant #FollowFridays

@Franky FrankyMarketing dollars will shift from outbound communication to data analysis #FollowFridays




thanks you!
