Marketers and business owners are now faced with far more marketing channels and online media options than there has been before.
The release of new digital technology and social media is increasing exponentially, and they are now armed with more metrics than ever before. But what to do with them and which perform best? A fundamental question that few businesses seem to ask in relation to their business and overall strategy.
The problem is that there is often too much data to make sense of and often businesses are measuring data that doesn’t impact the bottom line- revenue.
All to often decisions are based on randomness: what competitors have done, something that has been read in Industry press, what they’ve heard about at a conference or seminar. Marketing is also too often conceived or optimised based on too few observations. Companies are still measuring social metrics like “shares”, “followers” and “likes”, but are not measuring how this filters down to the bottom line in terms of income and ROI. With such a wide range of analytics technology this should no longer be the case. The tools are there, but they need selecting based on each businesses needs, the market, sector and marketing goals.
Why does employing the right digital/ social analytics matter?
Consumers are more savvy than ever before. They understand their options, are more critical and have higher demands, as online the supply of everything is infinitely larger and more accessible.
Control is in the hands of consumers now more than ever and businesses need to meet their needs better in order to compete.
As everything is urgent and options so vast it is more important than ever to understand what is having the largest impact on revenue and the bottom line.
The focus must now be on:
- How to influence people at each stage of the customer lifecycle,
- How to add value to the customer experience,
- How to measure which activity is having the greatest effect.
All three of the above is about capturing the right data and making sense of it to create positive action on marketing and business activity. The marketing platform’s (Facebook, Hootsuite, Google+ etc) data is important and part of the story, but the key to success is to prioritise your own internal data and analytics. Only using your internal data can you build a picture of how much revenue your online marketing is achieving and the return on your hard earned investment. Indeed an IBM think tank showed that organisations that consistently measure ROI and marketing revenue are 2.5 times more effective in their marketing activity.
This means their ROI is 2.5 times higher through selecting the right approach to analytics.
What is the right approach to web analytics?
It is important to understand what impact different stage of the customer lifecycle is having on converting customers. To do this the customer journey needs to be mapped out in order to identify when consumers come in contact with the brand and what roles these play in turning people into customers.
Marketing Sherpa shows that companies operate the current data analytics attribution models:
- No tracking at all – 40%
- Single attribution – 27% (“first touch” or “last touch” attribution gives credit to the first or last interaction a customer had with the brand before buying)
- Multi-touch – 33% (different touch points are measured through the customer lifecycle and sometimes weighted according to their importance to the conversion process)
The fact that a shocking 40% of businesses do not have any web analytics or tracking makes is clear that measuring performance and results still attracts less investment than marketing activity itself. Perhaps this is born from traditional advertising where it was very difficult to directly attribute sales to marketing, but often it is a result of not knowing where to start.
Multi-touch attrbution models are being developed by large corporations as they see first hand the cost savings that can be made at scale in order to see the value of this approach and of web analytics. Although there are many providers of paid for analytics providers there are lower cost solutions available that require a greater amount of time to set up and analyse, but deliver a significant financial pay off in the long-term. Coffee Marketing can help you identify the right solution for your business and set you up with the kind of data that will drive your business.
Analytics benefits from ongoing assessment and optimisation based on the changing needs of business. Partnering with you around data collection and analysis can provide the insight you need to make ongoing decisions if you do not have the resource internally. Yet if you have the capability then ensure your data provider sets you up with the right metrics and process to be able to easily take over the day-to-day analytics work that will give you the competitive edge and information to make great business decisions.
- Choose the right attribution model.
- Ensure you understand the flow of how a customer becomes aware of your business and the journey they go through to becoming a customer.
- Set up the right data points to analyse and focus on a maximum of 4- 5 to keep the data clear.
- Ensure you spend 50% of the time collecting data and 50% analysing it.
- Identify whether you need analytics set up with a process your business can own or whether you need ongoing support.