Marketing goals and measurement

17/02/14

Roope Ruotsalainen Chief Digital Officer Frankly Partners, Finland

Marketing objectives. What for?

17/02/14

17/02/14

Data is everywhere. Analytics is everywhere.

Frankly Partners Marketing goals & digital success

17/02/14

Marketing communication is 3 380 000 000 € industry in Finland.

Money well spent?

Frankly Partners Marketing goals & digital success

17/02/14

Challenge: semantics.

Is it a cost or an investment?

Frankly Partners Marketing goals & digital success

17/02/14

Few problems:

1.   Marketing objectives are not reflecting business objectives 2.   Objectives and their measurement are not connected

3.   Irrelevant things are measured

Frankly Partners Marketing goals & digital success

17/02/14 Frankly Partners Marketing goals & digital success

-  My display advertising sucks. -  Why? -  It costs more than it generates sales. -  Ok, but what was the its objective and role? -  I wanted to generate awareness. -  Should you then measure awareness?

17/02/14

How to master the measurement?

1.   From anarchy to hierarchy 2.   Only actionable knowledge 3.   Leadership of the data age

Frankly Partners Marketing goals & digital success

1. From anarchy to hierarchy

17/02/14

17/02/14

If it is possible to measure, it doesn’t mean it’s useful to measure.

Frankly Partners Marketing goals & digital success

17/02/14 Frankly Partners Marketing goals & digital success

# of clients

Display ad impressions

# sold items Total profit (eur)

Channel’s share of total revenue

Cost of marketing Product returns (%)

Sent emails (#) Emails opened (#) Emails opened (%)

Emails clicked (#) Emails clicked (%)

Coupons prited (#) Coupons used (%)

Visits Pages / visit Avg. time per visit New visits

Ecom revenue (eur)

Avg. purchase (eur) Ecom conversion (%)

Total revenue (eur)

Display ad CTR % Display ad CONV % Cost per click

SEM clicks (#) Most popular content/pages SEM CTR % SEM Cost per click SEM CONV %

Site search most popular KW’s TV ad contacts (#)

TV ad cost per contact TV ad OTS opportunity to see

Facebook followers (#) Facebook post reach (#)

17/02/14

Business objectives are marketing objectives.

Frankly Partners Marketing goals & digital success

17/02/14

And objectives & measurement goes always hand-in-hand.

Frankly Partners Marketing goals & digital success

17/02/14 Frankly Partners Marketing goals & digital success

Reach Response Result

Marketing measurement – typical categories of metrics

17/02/14 Frankly Partners Marketing goals & digital success

Reach Response Result

Marketing measurement – typical categories of metrics

Metrics / measurement for

objectives

Metrics explaining what happens and

why it happens

17/02/14 Frankly Partners Marketing goals & digital success

Reach Response Result

Marketing measurement – typical categories of metrics

How many saw?

Site: visitors Email: open rate

How many reacted?

Site: form submission Email: completion rate

How much sales?

Site: conversion rate Email: acquisition rate

17/02/14

The big picture: build hierarchy in order to understand

what actually happens.

Frankly Partners Marketing goals & digital success

2. Only actionable knowledge

17/02/14

17/02/14

Actionable knowledge?

= knowledge, that leads to action.

Frankly Partners Marketing goals & digital success

17/02/14

Actionable knowledge?

Objectives and measurement matters only, if action takes place after measuring.

Frankly Partners Marketing goals & digital success

17/02/14

Process. React hourly, daily, weekly, monthly.

Frankly Partners Marketing goals & digital success

17/02/14 Frankly Partners Marketing goals & digital success

MODELLING - the big picture

SCENARIOS AND

OPTIMIZATION

•  What is optimal budget, what is optimal marketing mix

ALLOCATION

•  Allocating budget and marketing mix accordingly

FOLLOW-UP AND REACTION

•  Measuring the actions and reacting to achieve best results

•  How different variables affect the sales and other outcomes

17/02/14 Frankly Partners Marketing goals & digital success

Hmm, okey. Good to know. Let’s keep on going without changes.

Hey, I’ve forecasted that this week there’s less demand than normally!

17/02/14

Measurement doesn’t matter. The action you take matters.

Frankly Partners Marketing goals & digital success

3. Leadership of the data age

17/02/14

17/02/14

Digitalization changed the game of the analytics

Frankly Partners Marketing goals & digital success

17/02/14

92 % of all the data in the world has been created during past 2 years

Frankly Partners Marketing goals & digital success

17/02/14

“With data-driven insights, companies can achieve 10 % to 30 % improvements in

marketing performance, yet maintain their existing budgets.”

Frankly Partners Marketing goals & digital success

- Nichols, on Harvard Business Review

17/02/14 Frankly Partners Marketing goals & digital success

REVENUE

MARKET

SEASON

UNEMPLOYMENT

CONSUMER INDEX GAS PRICE

ONLINE DISCUSSIONS

COMPETITORS PRODUCT

LAUNCHES

PRICING

ADVERTISING

PROMOTIONS

ACTIVATION

REVENUE SOLD ITEMS MARGIN MARKET SHARE CLIENT LIFE-TIME VALUE

PRINT ADS

TV COMMERCIALS SO-ME

DIRECT MAIL

SEARCH (SEM/SEO)

MARKETING

PR DIALOGUE

MOBILEAPPS

CLIENT SERVICE

PROMOTIONS

POINT OF SALE

EARNED MEDIA

PRICING

DIGITAL SERVICES

MARKETING BUSINESS

SEARCH BEHAVIOUR SOCIAL RECOMMENDATION SERVICE USAGE VISITS TO BRICK&MORTAR

Source: Harvard Business Review

17/02/14

But measurement, data, analytics and insights are nothing, without re-thinking leadership.

Frankly Partners Marketing goals & digital success

17/02/14

It’s about asking right questions. It’s about asking “why”, not “what”.

Frankly Partners Marketing goals & digital success

17/02/14

After asking “why”, ask predictive questions.

“How I should optimize the budget within the product portfolio?” “Which budget maximizes the revenue and profit?”

Frankly Partners Marketing goals & digital success

In summary…

17/02/14

17/02/14

1.   Business objectives are marketing objectives 2.   Choose only relevant indicators

3.   Hierarchy: reach – response – results 4.   Actionable knowledge: always react

5.   Analytics is about asking “why”

Frankly Partners Marketing goals & digital success

Thank you!

follow @ruotsalainenr more presentations at slideshare.net/roope

17/02/14

Roope Ruotsalainen Chief Digital Officer Frankly Partners, Finland