why you should have paid attention in math
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Understanding online marketing numbers and data trackingTRANSCRIPT
Why You Should Have Paid Attention in MathUnderstanding Online Marketing Numbers and Data Tracking
SFU Summer 2011 Book Immersion July 22, 2011 Twitter @boxcarmarketing
Not everything that counts can be measured.
Albert Einstein
Not everything that can be measured counts.
Monique Trottier@BoxcarMarketing
There are 2 things we like to measure:
Things that lead to sales
Sales
Monique Trottier@BoxcarMarketing
Sales
Monique Trottier@BoxcarMarketing
What is a Conversion Rate
• Number of visitors who perform a desired action / Number of visitors to a page
• Desired action: buy a product, complete a form, etc.
• If there are 100 visitors to a particular web page and 5 people buy a book, then the conversation rate is 5%
• (5/100) * 100 = 5%
• Abandonment Rate is calculated in the same way, but it’s the number of people who do not complete a task divided by the total number of visitors
Sales
Setting Up Goals
• Admin Access
• URL Destination
Monique Trottier@BoxcarMarketing
Things that lead to sales
SalesMonique Trottier
@BoxcarMarketing
Website Visitors
Twitter Followers
Facebook Fans RTs
Press Mentions
Email Opens
Customer Feedback
Did we make money means what is the ROI?
• Return on Investment
• Did I make more money than I spent?
• Actually a tricky question: (Gross Profit - Marketing Investment) Marketing Investment
• Gross Profit = Gross Revenue - Cost of Goods Sold <OR>Gross Profit = Gross Revenue * Profit Margin (% of revenue that is actually profit)
• Invest $3,000 on marketing campaign and generate $30,000 gross revenue (1,000 copies sold at $30), if profit margin is 10%, then Gross Profit is $30,000 * 10% = $3,000
($3,000 - $3,000) / $3,000 = 0%
Things that lead to sales
Sales
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
Monique Trottier@BoxcarMarketing
What is Click Through Rate?
• CTR = Number of clicks on an ad / number of times the ad is shown
• Applies to ads, buttons, banners, etc.
• If banner ad is delivered 100 times (100 impressions) and receives 1 click, then the CTR = 1%
If you don’t know where you’re going, any road will get you there.
Misquote from Alice in Wonderland
Monique Trottier@BoxcarMarketing
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
Google Analytics: Annotations
Monique Trottier@BoxcarMarketing
Google Analytics: Title- or Author-Specific Searches
Google Analytics: Audience Segments
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 customersSegment & 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
Cost per Lead > Cost per Conversion
• Cost per Lead = How much do I need to pay in order to get a visitor to my site who will take one of those micro actions that lead to a sale
• Cost per Conversion = What does it cost me to acquire a customer?Total cost of a campaign / Number of Conversions
Social Media Measurements
Monique Trottier@BoxcarMarketing
Platform Ratio of Posts to X Peak ConversionContent
Resonance
Email OpensDay
Time of Day
OpensCTR
Unsubscribes
Twitter RTsDay
Time of Day
RTs@
Recos
Facebook InteractionsDay
Time of Day
LikeShare
Comment
Things that lead to sales
Sales
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
Monique Trottier@BoxcarMarketing
$$$Investment
$$$FinancialImpact
Monique Trottier@BoxcarMarketing
MarketingActions
CustomerReactions
Non-financialImpact
Ask me about this stuff.
• Download this presentation
Monique Trottier@boxcarmarketing