turning customer behavior into business behavior that drives roi
DESCRIPTION
Presention to Cincinnati WAW demonstrating how to turn historical data into Predictive Analytics.TRANSCRIPT
Turning Customer Behavior into Business Behaviors that
Drive ROI
WAW
Aug.5th, 2009
WebTech Analytics
WebTech Analytics
Agenda
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1. Four Business Models + One2. Four Stages of Customer Life Cycle3. Predictive Analytics4. Summary
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Four Business Models
• Online Commerce• Advertising• Lead generation• Customer Support
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The Four Stages of the Customer Life Cycle
• Reach
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Reach
“Although you might have developed the best communications material on the market, if your Web site does not deliver on the promise made in this material you will experience large dropout volumes. Reach techniques must reflect the purpose and capability of Web sites --because anything else misleads people as to the content of the site.”
Hurol Inan in Measuring the Success of your Web site
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KPI’s Recommended for Measuring Reach
• Overall traffic Volume• Ratio of new to Returning Visitors• Percentage of New Visitors• Campaign Metrics• Interested Visitor Share
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The Four Stages of the Customer Life Cycle
• Reach
• Acquisition
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KPI’s Recommended for Measuring Acquisition
• Average number of page views• Page "stickiness" • Response rates for all active campaigns • The top three to five referring domains • Average time spent on site
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The Four Stages of the Customer Life Cycle
• Reach
• Acquisition• Conversion
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KPI’s Recommended for Measuring Conversion
• Conversion rates for any processes• Campaign conversion rate for any active campaigns• Cost-per-conversion for the campaigns • Segment conversion rates
KPI’s Recommended for Measuring Conversion
(Additional when selling on-line)
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• Your site-wide conversion rate• New and repeat site-wide customer conversion rates • Percent of orders from new and returning customers• Site-wide average order value• Sales per visitor
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The Four Stages of the Customer Life Cycle
• Reach• Acquisition• Conversion
• Retention
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KPI’s Recommended for Measuring Retention
• The ratio of daily to monthly returning visitors• Percent returning visitors • Loyalty measurements for groups of returning
visitors• Activities of "retained" visitors
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TURNING CUSTOMER INTERACTIONS INTO MONEY
PREDICITVE ANALYTICS
Using existing web analytics data and applying it toward anticipated future behaviors
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Using Predictive Analytics to Achieve Greater ROI
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Smart Companies:
•Measure performance improvement
•Conduct business case models for IT investments, such as analytics
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Defining Predictive AnalyticsAnd its Affect on ROI
• Aggregate knowledge is good, but individualknowledge is better.
• Predictive analytics help manage risk and identity fraud
• Building deeper engagement
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Customer Data
Customer Value
Customer Attitudes
and Preferences
Increased Marketing Efficiency
Increased Sales
Efficiency
Higher Contact Center
Efficiency
Increased Customer
Satisfaction
Increased Willingness
to Recommend
Increased Customer
Loyalty
TheContinuousROI Cycle
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The ROI Cycle leverages leanings‘ across the entire customer lifecycle providing a more complete pictureof the ROI.
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CASE STUDYT. ROWE PRICE
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•Started analytics to keep up with competitors using online trading
•Analytics could not provide a complete picture of what the customer was worth to the Company, or what they would be worth in the future
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IMPLEMENTATION
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•Took existing data and parsed it into more actionable segments
•Combined this data with qualitative techniques that defined primary, secondaryand tertiary personas
•Company now had enough data to accurately predict the value of newly defined segments
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OUTCOME
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• By understanding their current and future needs , we could predict what would bein both the customers’ and company's best Interest
• Predictive analytics has led to new approaches for a variety of customer segments
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• Establish Well-DefinedBusiness Goals
• Define, Monitor and Continually Measure ROI
Competing on Predictive Analytics
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Getting Started with Your Predictive Analytics Program
Three Questions To Ask Today...
1. What is my number one customer-based business goal?
2. What does my most valuable customer look like today and whatwill they look like tomorrow?
3. Who has the potential to be my most valuable customer?
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Getting Started with Your Predictive Analytics Program
Five Things To Do Tomorrow...
1. Create a customer persona. 2. Craft marketing campaigns that will grow the value of that
persona.3. Identify your analytics champion. 4. Rank five customer-based business goals. 5. Fine tune the definition of the numbers that will prove that
they’ve been achieved.
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The Business Imperative for Predictive Analytics
Competing on predictive analytics has never been more urgent. Wide-ranging changes in nearly every aspect of business Makes customer behavior a critical “ need-to-know” application.
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2009Four Business Models + 1
Intranet Analytics: Promoting Best Practices to Business Stakeholders
An analytical understanding of how people use their intranet is the most important way business leaders can learn how to improve its return on this investment
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Thank YouTo receive a copy of this presentation:email: [email protected]
7672 Montgomery Rd. Ste. 258Cincinnati, OH 45236
(513) 386-8059www.webtechanalytics.com
Aaron Kahlow serves as chairman and founder of the Online Marketing Summit as well as managing partner of Business On Line, a leader in the search and usability space. Having delivered more than 170 seminars nationwide, he is frequently quoted in such publications as Industry Week, B to B Online and Business Week. Kahlow is a recognized authority on the subjects of website usability, search engine optimization, web analytics and overall web strategy. Most recently, Kahlow was named one of the "Top 40 entrepreneurs under the age of 40" by Metropolitan Magazine. He also serves on the International Board of Directors for the Business Marketers Association (BMA) as Chair of Interactive Community Education.
Aaron Kahlow
Managing Partner
WebTech Analytics
WAW
Aug.5th, 2009