© dunnhumby 2008 | confidential eMetrics to Business metrics Why there are so many unusable websites

© dunnhumby 2008 | confidential

eMetrics to Business metricsWhy there are so many unusable websites

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© dunnhumby 2008 | public

Before I start

The web is just another channel. The future of the web is to break out of the silo and become just another part of the business.

eMetrics analysts can measure in terms of business objectives and become significant to the business as a whole.

This is good for the business. It is also good for the analysts.

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Agenda

● Strategy & tactics our terms defined– What are brand metrics for?– What are eMetrics for?

● Using tactics to pursue strategy– Requirements for analysis– The steps to combining eMetrics with Business objectives

● The practical differences of a business perspective

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Agenda

● Brand metrics and eMetrics our terms defined– What are brand & emetrics metrics for?– Combining the two

● Using eMetrics to pursue brand strategy– Test and learn– Data -> Insight

● Why usability is never actually resourced

} Combining the two

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Strategy &Tactics

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Strategy and Tactics

●StrategyGlobal

●TacticsLocal

Long term

Short Term

All Channels

Online

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●Strategy

●Tactics

Big Picture

Sharp Focus

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Tactics are what you do when you know what your are trying to do, strategy is knowing what to do when you do not know what you are trying to do.

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eMetrics must match brand objectives

●Emetrics are for measuring strategies not for driving them; this makes them essentially tactical

●Tying the tactics to the strategy is the road to success. Separating them leads to disaster.

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Strategic and tactical metrics

Brand goals Business metrics

Online Goals

Customer acquisition Registrations

eMetrics

Trade driving

Brand Perception

Clickthroughs

Online sales

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(Tactics)

●O●G●S●M

WordsNumbersWordsNumbers

●Objectives●Goals●Strategies●Measures

Pursuing strategies : Using tactics

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Pursuing strategies : Using tactics

●Objectives●Goals●Strategies●Measures

Drive Trade£sOnline salesTransactions

eMetrics gives us numbers for our online measures

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What do we do that affects our metrics?

●Everything online affects how the site performs either directly or indirectly

●Everything the customer can perceive affects how our business performs, either directly or indirectly

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What do we do that can be measured by eMetrics?

●All changes to our online presence can be measured using eMetrics

●The effects of offline changes on online behaviours can be measured using eMetrics

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Are you integrated? : A checklist

● Do you have a joined up campaign calendar?

● Do you measure the effects of your offline campaigns on your website?

● Do you measure the effects of your online campaigns in terms of offline sales?

● Do you survey your customers online?

● Do you ask them about your web presence in store? By mail? Through all your channels?

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What else should we be doing?

● Actively seeking offline metrics to measure our online effectiveness

● Tying display advertising to in store

● Tying search to in store

● Tying in store to online feedback

● Tying online research to in store

● Incentivising users to integrate online and offline (widgets, floor graphics, etc)

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A few examples

●Muller Love Child

●Text for uplift

●Floor Graphics

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What you need(The basics)

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Underlying necessities

●Good Data

●Good Controls

●Good Analysis

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Good Data

● Not misleading (must be representative of the whole) – The measure the things that matter

Sufficient for the analysis you are doing to be robust – Check statistical significance– You do not have to have 13 million users but it helps

Able to produce actionable insights – Knowing is no use unless you act

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Good Data

● Good data comes from your customers

● Good data comes from the way you run your business

● Good data can be bought in, but rarely needs to be

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●Good Data

●Good Controls

●Good Analysis

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Good Controls

A good control is:

● A group unexposed to/affected by the factor being measured● Identical in all non measured factors to the experiment sample(s)

– Same demographic– Same shopping habits– Same lifestyle– Same age range and distribution– Same external factors (date ranges, campaign exposure, etc)– Same ...– Impossible to achieve

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●Good Data

●Good Controls

●Good Analysis

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£0

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

£35,000

£40,000

£45,000

Activity Period Activity Expected

Good Analysis

The difference from the control &/or prediction to the test

Comparisons show changes and trends

Day-by-day

Week-by-week

Month-by-month

Nationally

Regionally

By post code, even by individual store

Year-by-year

£0

£5,000

£10,000

£15,000

£20,000

£25,000

£30,000

£35,000

£40,000

£45,000

Activity Period Activity ExpectedThe difference from the control &/or prediction to the test

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Data Insight, the pitfalls

● Statistical significance– Select the gender of your baby

● McNamara Fallacy– Killing your top pages

● Rosser Reeves– Pirates prevent global warming

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What you do(Also the basics)

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The strategic circle

Business metrics

Action Measurement

Information

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The tactical flow

eMetrics

Analysis

Data

Information

Insight

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The tactical circle

eMetricswithbusinessmetrics

Analysis Planning

eMetrics

Information from Data

Action and MeasurementActionable Insight

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The art of marketing or the science of marketing?

The art of marketing is:

Taking our intrinsic understanding of what is compelling as being universal

The science of marketing is:

Measuring our effects as differences from a control and acting accordingly

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Why we neverdo usability

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Usability is a stealth problem

It hides under the carpet or down the back of the sofa

● People walk for so many reasons that there is always an excuse– Poor product– Irrelevant offer– Customer searching for information not purchase– Poor SEO– Bad affiliate program

● You cannot tell if your site is unusable– When asked 4 out of 10 people who listed their task as purchasing

said they failed to complete that task

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The usability dilemma

Usability is an easy way to make yourself look bad

●When it works you are in troubleFinding an easy win is a sign you have been doing something stupid

●When it doesn’t work you are in trouble

Failing to find easy wins means you have been wasting your time

To make matters worse a hard win is a risk of scarce resources without any certainty that it will work

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Usability, why it matters

● Another site is just a click awayBut you cannot see why they left

● It doesn't affect clickthroughs it affects salesBut eMetrics may not measure the sales

● It affects offline perception (sales) just as much as onlineBut eMetrics are online only

● Finding a problem makes you look bad, but not finding it is worsewhen you are measuring in terms of business metrics

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Conclusions

● Combining eMetrics with brand objectives is possible

● You do have enough information to do real analysis

● Marketing has come of age and can now move from being an art to being a science

● eMetrics has come of age, and is now ready to become a significant part of the science of marketing

● Measuring the web site in terms of its effects on business objectives changes the actions we take in a positive way

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Questions?

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thank you(Copies of the slides for this presentation will be Available to download via www.retailmedia.org)

http://www.retailmedia.org/

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© dunnhumby 2008 | confidential eMetrics to Business metrics Why there are so many unusable websites