marketing analytics using actionable metrics - parcelpush @ ad tech conference in sydney 2014
DESCRIPTION
This presentation about actionable metrics in online marketing describes in five steps how to set up proper goals and how to avoid vanity metrics. The presentation was given at Ad Tech in Sydney in March 2014. Please refer the blog on http://www.parcelpush.com.au/blog.html for further details. ParcelPush uses a strict AB testing and conversion rate optimising approach in delivering insert marketing.TRANSCRIPT
17/03/2014
MARKETING ANALYTICS USING ACTIONABLE METRICS
PAGE 2
PARCEL INSERTS
MAKE ONLINE CONSUMERS HAPPY
PAGE 3
AUSTRALIA’S LARGEST
ONLINE RETAILERS
INSERT FOR PARCELPUSH
THE ICONIC, BRANDSEXCLUSIVE, OO.COM.AU, DEALS DIRECT…
PAGE 4
ACTIONABLE , ACCESSIBLE AND AUDITABLE
THE THREE A’S OF
METRICS
PAGE 5
CONFIDENTIAL
CONVERSION
FUNNEL:
ACTIONABLE
PERCENTAGES
MATTER
E.G. HYPOTHESIS:
ACTIVATION RATE FROM 1ST
TIME VISITORS TO A PAYING
CUSTOMER IS HIGHER IF
SOMEONE WATCHED A
PRODUCT VIDEO (EVENT)
ACQUISITION
ACTIVATION
RETENTION
REFERRAL
REVENUE
%
%
%
%
% Event % Event
% Event % Event
% Event % Event
% Event % Event
PAGE 6
…IT IS MOST LIKELY A VANITY METRIC
IF “A CURRENT AFFAIR”
INCREASES THE
METRIC…
PAGE 7
CONFIDENTIAL
ACTIONABLE
CONVERSION
METRICS
Metric Customer Behaviour Conversion Rate (% of unique visits)
Estimated Value
Acquisition Rate 1 Spends x time on site and y views onsite
60% $0.10
Activation Rate 2 Relevant 1st visit (x clicks, y views, z time on site)
25% $0.40
Activation Rate 1 Email Signup 4% $2.50
Activation Rate 2 Account Signup 2% $3.00
Retention Rate 1 Email opened 4% $0.75
Retention Rate 2 Repeat visit (x visits in y days) 3% $2.00
Referral Rate 1 Referred a user who visited site 4% $6.00
Referral Rate 2 Referred a user who activated 3% $9.00
Revenue Rate 1 Customer orders 4% $12.00
Revenue Rate 2 Customer orders repeatedly reaching relevant CLTV
2% $28.00
E.G. HYPOTHESIS:
THE CLTV AND REFERRAL
RATE OF A CUSTOMER
WHO HAS SEEN THE TVC IS
X TIMES HIGHER THAN THE
AVERAGE
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CONFIDENTIAL
IDEAS FOR
GOALS AND
EVENTS
• CONVERSION / PURCHASE
• NEWSLETTER SUBSCRIPTIONS
• FREE TRIAL SUBSCRIPTIONS
• UPGRADES
• QUOTE REQUESTS
• DOWNLOADS
• WATCHING A VIDEO ABOUT A SERVICE/PRODUCT
• VIEWING 5+ PAGES ON THE WEBSITE
• VIEWING 10+ PAGES ON THE WEBSITE
• FACEBOOK LIKES / GOOGLE+
• JOB APPLICATION FORMS
• CONTACT FORMS
• IN-APP PURCHASES
PAGE 9
CONFIDENTIAL
COOKBOOK
PART I:
THE SETUP
1. ENSURE YOUR PROMOTIONS ARE MEASURABLE
(CAMPAIGN LINKS UTM TAGGED / URL BUILDER).
2. ENSURE GOOGLE ANALYTICS IS INSTALLED ON
YOUR LANDING PAGES (TAGGING PAGES).
3. DEFINE AND SETUP CONVERSION GOALS AND
EVENTS FOR YOUR SITE AND APP (ENGAGEMENT
FLOWS, FUNNELS)
4. TEST YOUR SETUP
5. INSTALL ADWORDS CONVERSION TRACKING
6. LINK ADWORDS ACCOUNTS
7. ENABLE ADWORDS AUTO-TAGGING
8. ENABLE TRACKING FOR ALL PAGES AND
SUBDOMAINS (EXCLUDE OFFICE IP)
9. COLLECT ORDER DATA (SKU, PRICE)
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CONFIDENTIAL
COOKBOOK
PART II:
TIPS FOR THE
FIRST
ITERATION
1. DO A CHANNEL BY CHANNEL AUDIT FIRST
2. THEN START WITH TWO CHANNELS
3. USE ONE TRACKING SYSTEM
4. SET COOKIE DURATION
5. REDUCE DATA / COMPLEXITY E.G. BY JUST LOOKING AT 2-
3 TOUCH POINTS
6. START WITH STANDARD CONVERSION GOALS
7. RUN SPLIT-TESTS AND REGRESSION TESTS TO TEST
CORRELATIONS
8. ENSURE RESULTS ARE STATISTICAL RELEVANT
(SEE CALCULATOR PARCELPUSH.COM.AU)
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CONFIDENTIAL
COOKBOOK
PART II:
USE
ATTRIBUTION
RATIOS TO
COMPARE
CAMPAIGN
SPLIT-TEST
RESULTS
REVENUE FROM FIRST TOUCH / REVENUE FROM LAST TOUCH
= APPROPRIATE ATTRIBUTION RATIO
• CLOSER TO 0.00 = CONVERSION CAMPAIGN
• CLOSER TO 1.00 = PERSUASION CAMPAIGN
• CLOSER TO 10.00 = ACQUISITION CAMPAIGN
APPROPRIATE ATTRIBUTION NET RATIO = (REVENUE FROM
FIRST TOUCH - CAMPAIGN MARKETING COST) / (REVENUE
FROM LAST TOUCH – CAMPAIGN MARKETING COST)
APPROPRIATE ATTRIBUTION RATIO MARGIN = (REVENUE
FROM FIRST TOUCH – CAMPAIGN COGS/ REVENUE FROM
LAST TOUCH - CAMPAIGN COGS)
SOURCE: ACQUISIO / SEARCH MARKETING NOW
“BUILDING AN ATTRIBUTION MODEL THAT WORKS”
PAGE 12
CONFIDENTIAL
COOKBOOK
PART III:
CALCULATE
EFFICIENCY
FACTORS PER
CHANNEL AND
USE SIMPLE
SCORING TO
DETERMINE
FAIRER CPOS (SEE EXCEL EXAMPLE PARCELPUSH.COM.AU)
INSPIRED BY QUISMA “INDIVIDUAL CONVERSION ATTRIBUTION”
PAGE 13
CONFIDENTIAL
COOKBOOK
PART IV:
START
CRUNCHING
DATA
1. WORK SCIENTIFICALLY
2. HIRE SOME REALLY BRIGHT TALENT (FINANCE OR
ACCOUNTING BACKGROUND, EXCELLENT EXCEL
SKILLS)
3. UPGRADE YOUR ANALYTICS SOFTWARE OR START
COMBINING MORE DATA SOURCES IN ONE BI
SYSTEM
4. INVEST INTO AN AD SERVER
5. ADD BEHAVIOURAL PROFILING TO THE MIX
6. INTEGRATE DIRECT MARKETING TOOLS AND
START AUTOMATING PERSONALISED MESSAGES
(EMAIL, ABANDONED CART, RETARGETING…)
