introduction to marketing data: what to measure and why
DESCRIPTION
A quick look at the customer lifecycle and how to apply what marketing data is collected and used to measure success.TRANSCRIPT
Marketing Data
Presented September 23, 2014by Monique Sherrett
Sales Volume Analysis
Units Sold 800 900 1000 2000 3000
Sale price per unit (retail $)
Fixed Costs
Variable Costs(unit cost*units sold)
Total Costs (Fixed+Variable)
Total Sales @47% vendor discount
Net Profit (Loss)Total Sales-Total Costs
$45 $45 $45 $45 $45
$12,500 $12,500 $12,500 $12,500 $12,500
Sales Volume Analysis
Units Sold 800 900 1000 2000 3000
Sale price per unit (retail $)
Fixed Costs
Variable Costs(unit cost*units sold)
Total Costs (Fixed+Variable)
Total Sales @47% vendor discount
Net Profit (Loss)Total Sales-Total Costs
$45 $45 $45 $45 $45
$12,500 $12,500 $12,500 $12,500 $12,500
$7,520 $8,460 $9,400 $18,800 $28,200
$20,020 $20,960 $21,900 $31,300 $40,700
$19,080 $21,465 $23,850 $47,700 $71,550
-$940 $505 $1,950 $16,400 $30,850
Where do we break even?
Units Sold 600 700 800 900 1000
Sale price per unit (retail $)
Fixed Costs
Variable Costs(unit cost*units sold)
Total Costs (Fixed+Variable)
Total Sales @47% vendor discount
Net Profit (Loss)Total Sales-Total Costs
$45 $45 $45 $45 $45
$12,500 $12,500 $12,500 $12,500 $12,500
$5,640 $6,580 $7,520 $8,460 $9,400
$18,140 $19,080 $20,020 $20,960 $21,900
$14,310 $16,695 $19,080 $21,465 $23,850
-$3,830 -$2,385 -$940 $505 $1,950
Break-even = Fixed Costs . (Unit Price - Unit Variable Cost)
BookNet Canada — Noah Genner
Assignment
Watch one of these 30 min videos from BookNet Technology Forum. Think of 2 questions to ask Noah about sales data or issues related to the book market in Canada.http://booknetcanada.wistia.com/projects/54lyqdicv0
Not everything that counts can be measured.
Albert Einstein
Not everything that can be measured counts.
There are 2 things we like to measure:
Things that lead to sales
Sales
Things that lead to sales
Sales
Website Visitors
Twitter Followers
Facebook Fans RTs
Press MentionsEmail Opens
Customer Feedback
Your Online Ecosystem
OWNYour website
(mobile, desktop)Email lists
RENTTwitter
FacebookYouTube
EARNEDPublicity
PAIDAds
Things that lead to sales
Revenue
Acquisition Website Visitors, time on site
ActivationNumber of pageviews, repeat visits, subscription (email, blog), account sign-up (profile data), Fan/Follower
Retention Email Opens, Click-throughs, Repeat visits
ReferralPress Mention, RT,
Refers 1+visitors to the site; Refers 1+ visitors who activate
Things that lead to sales
Revenue
AttentionDiscoverability, attracts attention,
creates awarenessPublicity, ads, events, placement
InterestAttractive, relevant message,
promise of reward or satisfactionContent, Newsletters, Social Media,
Blogs
Desire Urgency, benefits, must-have effectExcerpts, microsites
Action Purchase, order, subscriptionTestimonials
Acquisition
Activation
Retention
Referral
Deconstructing a Landing PageATTENTION
Discoverability, attracts attention, creates
awarenessPublicity, ads, events,
placement
INTERESTAttractive, relevant message, promise
of reward or satisfactionContent,
Newsletters, Social Media, Blogs
DESIREUrgency, benefits, must-have effect
Excerpts, microsites
ACTIONPurchase, order,
subscriptionTestimonials
Questions?
What to measure and why
ACQUISITION BEHAVIOUR CONVERSIONS
What are you doing to attract traffic to the site?
What happens after they land on the site?
What actions do they take that impact your
business?
Website: What to measure and why
ACQUISITION BEHAVIOUR CONVERSIONS
What are you doing to attract traffic to the site?
What happens after they land on the site?
What actions do they take that impact your
business?How do you create
awareness or discoverability of your site/
titles?
Do you find and bring the right people to the site?
Do you deliver a worthwhile experience?
What do people see? What’s under
consideration?
Do you get some revenue or long-term value from
visitors to the site?
Sales? Other trackable, revenue-based outcomes?
Attentionpublicity, ads, events,
placement
Desire, Intent, Actionsign up, follow, content viewsdownloads, engagement w/
micrositesreferral, testimonial, review
Salespurchase, order, subscription
Social Media: What to measure and why
ACQUISITION BEHAVIOUR CONVERSIONS
What are you doing to attract traffic your profile
or posts?
What happens after they see your post or profile?
What actions do they take that impact your
business?Awareness or discoverability of your social media activity?
Right people see the content?
What share of voice? Visibility , reach
Worthwhile experience?
What do people see? When do they see it? What days/hashtags etc have the most
engagement? What’s under consideration/
shared/amplified?
Do you get some revenue or long-term value from social
media?
Sales? Other trackable, revenue-based outcomes?
Attentiondid ppl see it: tweet, ads
Desire, Intent, Actiondid they click, want more, did they like it/share it, follow/fan
Salesdid they buy it; did a click thru
result in a sale, sub, etc.
Cost per Click
• Pay per Click (PPC) advertising
• Cost per Click (CPC) is the amount you pay each time someone clicks your ad
• If you spend $5,000 on ads and get 10,000 clicks, this is a CPC of $0.50Cost ÷ Clicks = CPC$5,000 ÷ 10,000 = $0.50
Conversion Rate = % Visitors Who Convert (or Take Action)
In ecommerce, it refers to the % of Visits that convert to OrdersNumber of Orders ÷ Number of Visits = Conversion Rate
Eg., a website that generated $100,000 of sales through 2,000 orders in a month with 40,000 visits, has a ...
2,000 ÷ 40,000 = 0.5 = 5% ecommerce Conversion Rate
Calculate the Average Order: $100,000 ÷ 2,000 = $50 AOV
This means that 5 out of 100 visits turn into an average of $50 revenue
This can then be used to project revenue for a campaign. How much revenue is generated with another 5,000 visits?
Number of Visits × CR × AOV = Projected Revenue(5,000 × 5%) × $50 250 × $50 = $12,500
# transactions$ Revenue
# Visits
Quiz
You’re running an online advertising campaign on your publisher website promoting a bestselling novel.
• The goal is 2,000 pre-orders.
• The list price of the book is $29.99.
• You’ve spent $5,000 on ads.
• Your ads have received 400,000 impressions (time your ad was shown) and that generated 12,000 visits to your site, which generated 200 pre-orders to date. There are no returns.
What is the conversion rate for pre-orders from this ad campaign? Round to 1 decimal point.
What is the net income (total revenue - expenses) this ad campaign generated?
Questions
Contact InfoMonique [email protected]
A simple Contest
• Reach a new audience or reinforce our connection to an existing audience
Goal Lifecycle Action Reaction Metrics
Reach a new audience
AcquireActivateRetain
ListenIntroduce
ResponseVisit to the site
SubscribeReturn
@ / RT / CommentVisitors
Subscriptions (email/RSS)Fan/Follower
Account sign-upReturn Visits
Reinforce our connection to
existing audience
RetainReferralRevenue
Talk Pitch
Thank
ResponseVisit the site
ActRefer
@ / RT / CommentRepeat visitsEmail opens
CTR / Goal FunnelMentionsReferrals
Referrals who convert
A simple campaign to build Reputation
• Use a blog to establish authority / expertise for an author. • Focus on writing good content first and self-promotion second
Goal Metrics
Nth position in relation to competitors by a certain date
Pagerank + # inbound links from influential blogsGoogle Position in Search Results
X% increase of traffic per month
Volume of organic traffic per month# inbound links from influential sites
# email subscribers or fan/followers who can be directed to the site
X$ per month attributable to referrals from blog
Segment and Funnel: Traffic that converts to sales
A really simple campaign to increase Engagement
• Be nice to customers who mention your company / authors / titles on Twitter
Goal Metrics
Increase # positive conversations
# positive comments sent to customers per week w/in given timeframe
# of conversations that started from those comments
# additional activation points
A problematic campaign to increase Offline Sales
• Implement a promotion on social media with a specific store. • Give participants a printable campaign voucher so you can track offline sales
Goal Metrics
Download voucher Goal Funnel: Impressions, Form Completion; Downloads
$ monthly sales monthly sales
% increase in store traffic over pre-promo period monthly store traffic
Attact an audience in a particular area traffic from particular area
A simple campaign to increase Online Sales
• Use Twitter or Facebook to inform prospects about special promotions. • Exclusive, limited-customer/limited time offers.
Goal Metrics
Increase monthly sales monthly sales attributable directly to SMM
Increase % value from new customers Segment & Funnel: new customers attributable directly to campaign
Increase conversions from Twitter traffic
Segment & Funnel: monthly revenue generated from customers from Twitter
Retain X% of new customers Repeat customers from that groupUnsubscribe rates
Social Media Measurements
Monique Trottier@BoxcarMarketing
Platform Ratio of Posts to X Peak Conversion Content Resonance
Email Opens DayTime of Day
OpensCTR
Unsubscribes
Twitter RTs DayTime of Day
RTs@
Recos
Facebook Interactions DayTime of Day
LikeShare
Comment