tag:econsultancy.com,2008:/topics/data-analytics Latest Data & Analytics content from Econsultancy 2016-10-21T09:20:00+01:00 tag:econsultancy.com,2008:BlogPost/68437 2016-10-21T09:20:00+01:00 2016-10-21T09:20:00+01:00 10 of the best digital marketing stats we've seen this week Nikki Gilliland <p>So, let’s waste no more time.</p> <p>Don’t forget to download the <a href="https://econsultancy.com/reports/internet-statistics-compendium" target="_blank">Internet Statistics Compendium</a> for more.</p> <h3>51% of UK online ads don’t reach viewability standards</h3> <p>Meetrics’ Q3 viewability report has revealed that the UK is underperforming when it comes to online ad viewability.</p> <p>According to the benchmark defined by the IAB and Media Ratings Council, 50% of online ads should be in view for at least one second. </p> <p>However, this is only the case for 49% of display ads.</p> <p>This means that the UK remains far behind other European countries, with the likes of Austria and France having 69% and 60% viewability rates respectively.</p> <p><img src="https://assets.econsultancy.com/images/0008/0582/Ads.jpg" alt="" width="680" height="455"></p> <h3>68% of digital marketers see data analysis as the skill most integral to their role</h3> <p>Greenlight Digital’s 41 Hour Report has highlighted the increasing role data is playing in all areas of the marketing industry.</p> <p>Alongside content optimisation and the ability to align with the sales team, 68% of digital marketers say that analysing data – a task that is done on a daily basis – is the most integral skill for their job.</p> <p>Coding is also growing in importance, but even more so for younger generations. </p> <p>35% of digital marketers feel that it is important, but more specifically, 50% of marketers under the age of 30 believe that it is essential for their role.</p> <h3>Trump’s email campaign outperforms Clinton's</h3> <p>Despite poor performance overall, research from email service provider, Mailjet, has revealed that Trump’s email campaign is better at engaging grassroots donors.</p> <p>From analysis of both Clinton and Trump’s email campaigns across six different parameters, Trump comes out top in three, with the significant inclusion of calls-to-action winning him vital points.</p> <p>However, with Trump scoring just 12.9 points out of a possible 27, low scores across the board indicate missed opportunities for both nominees. </p> <p>Mailjet suggests that poor personalisation, poor design and a lack of cross device compatibility has led to poor results.</p> <p><img src="https://assets.econsultancy.com/images/0008/0565/email_campaigns.PNG" alt="" width="650" height="392"></p> <h3>75% of consumers say omnichannel capabilities are a key factor for choosing retailers </h3> <p>The 2016 Mobile Research Survey from Astound Commerce has revealed that consumers are increasing looking for omnichannel capabilities on mobile devices.</p> <p>In a study of consumer behaviour, it found that 64% have made an online purchase with an in-store pick-up in the last three months.</p> <p>Likewise, six out of 10 consumers have used their mobile phone at least three times in a month to check whether a product is in stock at a local store.</p> <p>With 57% saying that features like store locators (including nearby locations and mapped directions) are very important – the desire for a seamless shopping experience across all channels is growing.</p> <p><img src="https://assets.econsultancy.com/images/0008/0566/Astound.PNG" alt="" width="599" height="389"></p> <h3>65% of marketers see digital video as an important sales tool</h3> <p>Video marketing has traditionally been seen as a tool for engaging consumers as opposed to a medium for driving and tracking ROI. </p> <p>However, new research from Sequent Partners shows that new technology in the video marketing space means marketers perceptions of the medium are changing.</p> <p>Now, 65% of marketers say that digital video is growing in importance for driving offline sales.</p> <p>85% of marketers also reported positive ROI from digital video.</p> <h3>Post-Brexit sales see strongest growth since 2014</h3> <p>The IMRG Capgemini eRetail Sales Index has revealed that the quarter following on from Brexit saw the strongest online sales growth since Q1 2014.</p> <p>Alongside a growth of 16% year-on-year for the month of September, the report also shows a 17% growth for Q3 overall.</p> <p>It was an impressive period for the home and garden sector in particular, seeing growth of 21% year-on-year and the 11th consecutive month of positive growth.</p> <p>An unseasonably sunny and warm September is said to have been a big factor.</p> <h3>Sundays and Mondays set to be the best days for US travel this December</h3> <p>According to Sojern’s Global Travel Insights report, just 9% of Americans have booked to travel on Sundays and Mondays in December. </p> <p>This is compared to the 23% who are have made bookings for Fridays and 20% for Thursdays.</p> <p>In terms of the top destination, Sojern says that Miami remains at the very top, with both Las Vegas and London increasing in popularity.</p> <p>As Christmas Eve (historically the busiest day of the year for travel) falls on a Friday, 2016 looks set to be the busiest and most expensive for a while. </p> <p><img src="https://assets.econsultancy.com/images/0008/0563/Sojern_stats.jpg" alt="" width="770" height="435"></p> <h3>62% of customers feel undervalued by businesses</h3> <p>A report by Wiraya has suggested that businesses need to change the way they communicate with customers or risk losing them to rivals.</p> <p>From a study of 500 UK consumers who have left their bank, energy, mobile or insurance provider in the last six months – 86% said they would have been more content to stay if they’d been contacted differently.</p> <p>One in five consumers complained about the lack of relevancy in email communication, and 41% said being asked the same information twice was also a big annoyance. </p> <p>Overall, banks and mobile providers came out in a better light than insurance and energy companies, however a need for increased relevancy and personalisation was a theme for all.</p> <h3>72% of people now they check their emails on a smartphone</h3> <p>In a survey of over 1,700 US consumers, Mapp Digital recently found 72% of respondents regularly check their emails using a smartphone instead of a desktop or tablet.</p> <p>The fact that this figure rises to a whopping 91% for 18 to 24 year olds shows the growing acceptance of mobile use among millennials.</p> <p>According to Mapp, this also extends to a willingness to receive marketing messages on mobile.</p> <p>The percentage of 18 to 34 year-olds using a separate email address for brand communication decreased from 40% to 30% over the past year.</p> <p><img src="https://assets.econsultancy.com/images/0008/0570/smartphone_use.jpg" alt="" width="500" height="332"></p> <h3>Videos overtake photos as the most popular brand post on Facebook</h3> <p>A <a href="https://www.quintly.com/blog/2016/10/30-biggest-brands-on-facebook-analyzed-in-depth/" target="_blank">new study by Quintly</a> has delved into how big brands are performing on Facebook.</p> <p>One of the biggest findings from the report shows how videos have overtaken photos as the most popular type of post. </p> <p>In the first half of 2016, 54.9% of posts were videos compared to just 45.1% for photos.</p> <p>Finally, there has been a steady decline in brand posts overall, going from an average of 150 posts per month in January to less than 100 posts per month in June.</p> tag:econsultancy.com,2008:BlogPost/68411 2016-10-18T13:21:21+01:00 2016-10-18T13:21:21+01:00 The doctor is always in: Baidu to launch medical chatbot Patricio Robles <p>For example, digital health startup HealthTap created a bot that allows Facebook Messenger users to seek out answers to their health questions.</p> <p>HealthTap's bot searches for similar questions and can provide past answers that might be useful before it offers to send the user's question to its network of 100,000 doctors.</p> <p><iframe src="https://player.vimeo.com/video/162458358" width="640" height="360"></iframe></p> <p>And now <a href="https://econsultancy.com/reports/baidu-search-best-practice-guide/">Baidu</a>, China's largest search engine, is getting into the act with Melody, a chatbot that is integrated into the company's iOS and Android Baidu Doctor apps.</p> <p><img src="https://assets.econsultancy.com/images/0008/0429/baidu-melody.jpg" alt="" width="432" height="384"></p> <p>Melody, which is available to Chinese patients and doctors, uses artificial intelligence and deep learning to gather information from patients related to the medical questions they ask.</p> <p>The bot does not dispense medical advice.</p> <p>Instead, it presents the information collected from the patient to doctors, who can then respond after the information has been reviewed and validated.</p> <p>"It's not our role to diagnose - it's the doctors' role to diagnose. We try to assist the doctors," Andrew Ng, Baidu's chief scientist, <a href="http://venturebeat.com/2016/10/11/baidu-launches-medical-assistant-chatbot-to-help-doctors-collect-patient-information/">told</a> VentureBeat.</p> <p>Melody was trained on health data from a number of sources, including medical textbooks and health websites, which assists the bot in asking patients the right questions and collecting the right information that doctors can use to make a diagnosis.</p> <p>Over time, Melody will get even better as its artifical intelligence learns from its own interactions.</p> <p>While Melody doesn't dispense advice, Ng sees the technology as being critical to healthcare going forward.</p> <p>There is a widspread shortage of doctors around the globe, and this problem is only expected to grow in the coming decades.</p> <p>As Ng sees it, "I don't know how else to solve this problem other than to use AI."</p> <p>While Melody is currently only in use in China, Baidu is in talks with organizations in the US and Europe and Ng says the technology is "resonating well with physicians around the world."</p> <p>That suggests that if chatbots truly go mainstream and Melody proves successful at helping doctors and patients interact more efficiently, chatbots could become a fixture in the healthcare industry in the not too distant future.</p> tag:econsultancy.com,2008:BlogPost/68416 2016-10-17T01:00:00+01:00 2016-10-17T01:00:00+01:00 Analytics demystified, part II: Metrics, PIs and KPIs Jeff Rajeck <p>That is, because we can capture more data, we are expected to deliver more data analysis typically through reports.</p> <p>In Econsultancy's <a href="https://econsultancy.com/reports/measurement-and-analytics-report">recent survey on analytics</a>, respondents indicated that 'producing reports' was the most sought-after analytics skill in their organisation.</p> <p><img src="https://assets.econsultancy.com/images/0008/0315/ec-chart-1.png" alt="" width="800" height="475"></p> <p>Some analysts, however, seem to do just that. They create large reports full of numbers, charts, and graphs.  </p> <p><a><img src="https://assets.econsultancy.com/images/0008/0321/analytics-1.jpg" alt="" width="800" height="551"></a></p> <p>These sorts of reports, however, are dissatisfying. They present all of the data, for sure, but <strong>they leave the reader to do the analysis.</strong>  </p> <p>In these cases, it seems that the analyst is just reporting, not analysing.</p> <p>Instead, an analyst should edit the information they present and pay very close attention to what data is included: </p> <ul> <li> <strong>Most of the data</strong> will stay with the analyst.</li> <li> <strong>Some of the data</strong> will be shared with subject matter experts in the marketing department.</li> <li> <strong>A small portion of the data</strong> will be sent upwards to management.</li> </ul> <p>Then, with the space saved by removing all of the extra data, the analyst can provide insights and recommendations to enhance the report's value.</p> <p>But what figures should go to which people?</p> <h3>Before we answer that...</h3> <p>Econsultancy is holding an <strong>Advanced Mastering Analytics course in Singapore on Thursday, 27th October 2016.</strong></p> <p><a href="https://econsultancy.com/training/courses/advanced-mastering-analytics-training-singapore/">Click here for more information</a> and to book your place!</p> <h3>The boat metaphor</h3> <p>Knowing which figures to send to which people, however, is not necessarily obvious.</p> <p>One way of determining which data to send is <strong>to think of your business as a boat on the open seas</strong> (H/T <a href="http://www.ap-institute.com/what-is-a-key-performance-indicator.aspx">Advanced Performance Institute</a>).</p> <p>Every boat has various gauges which report constantly changing numbers.</p> <p>They tell you how fast the boat is going, the amount of fuel remaining, current water depth, and many other things.</p> <p>It's not useful to record each and every number, but they are good to know in case there is a huge change.  </p> <p>In a business context, <strong>these numbers are metrics.</strong></p> <p>Some of the metrics tell you whether the boat is operating correctly and efficiently.</p> <p>For example, the fuel gauge can tell you precisely about how much fuel you have left at any given time.  </p> <p>You won't watch that number constantly, but you really know if it falls beneath a particular level. <strong>These metrics are called performance indicators (PIs).</strong></p> <p>Certain PIs, such as present location, direction, and speed, indicate whether you are on course to arrive at your destination.</p> <p>These PIs are different from other PIs as they are 'key' to everyone on the boat.</p> <p>Other PIs may tell you that your ship is in tip-top shape, but if you're heading in the wrong direction it really doesn't matter to anyone else.</p> <p>The metrics which are of interest to everyone on board, in a business setting, are called <strong>key performance indicators (KPIs).</strong></p> <p><a href="http://www.freepik.com"><img src="https://assets.econsultancy.com/images/0008/0322/boat.jpg" alt="" width="800" height="500"></a></p> <h3>Performance measurement terms</h3> <p>Though there is some debate about these terms, it's clear that we need to distinguish: </p> <ul> <li>Everyday numbers (metrics),</li> <li>Performance figures (PIs), and,</li> <li>Indicators which matter to the business (KPIs).  </li> </ul> <p>Without these distinctions, your reports may consist of a senseless combination of these numbers.  </p> <p>This confuses readers and reflects badly on the marketing department as a whole.</p> <p>To help determine which numbers analysts should use for reporting, below are some tips for distinguishing metrics, PIs, and KPIs.  </p> <p>Using these will improve your reports and help you provide better insights and recommendations to your colleagues and the rest of the business.</p> <h3>Five tips for managing your data</h3> <h4>1. Keep metrics to yourself</h4> <p>A lot of metrics in digital marketing are like the boat speed or current depth.  </p> <p>They are good to know and interesting for a few people, but <strong>most metrics are not useful to the business as a whole.</strong></p> <p>Metrics include:</p> <ul> <li>Ad impressions.</li> <li>Social media fans.</li> <li>Engagement (Shares / Comments / Likes).</li> <li>Page views.</li> <li>Number of channels viewed before conversions.</li> </ul> <p>A figure is a metric if it requires some detailed understanding of the system to understand it fully.  </p> <p>For example, someone would have to know about the dramatic decline in organic reach on social media before the number of fans was truly meaningful.</p> <p>Metrics requiring detailed knowledge should only be shared rarely, if ever.</p> <p>They can be useful as part of a ratio (Page views per visitor, comments per post), but <strong>on their own metrics should only be reported when they change dramatically.</strong></p> <p><a href="http://www.freepik.com"><img src="https://assets.econsultancy.com/images/0008/0323/metrics.jpg" alt="" width="800" height="611"></a></p> <h4>2. Include PIs in departmental reports</h4> <p>A Performance Indicator, like the fuel gauge, is a metric which is, typically, only interesting to those who are responsible for the maintenance of the digital platforms.</p> <p>For this reason,<strong> PIs are worth sharing with those working in digital and should appear in departmental reports.</strong></p> <p>Along with the figure, though, a<strong> PI should have some indication about relative performance</strong> such as making the number green if it's up on the previous period, red if down.</p> <p>Ideally, though, an analyst should provide more information about the figure than this in a report.</p> <p>For example, the long-term average of a PI could be compared with the most recent monthly figure.  </p> <p>Alternatively, if there is seasonality in your numbers, show the PI against the same number last year.</p> <p><a href="http://www.freepik.com"><img src="https://assets.econsultancy.com/images/0008/0324/Pis.jpg" alt="" width="800" height="369"></a></p> <p>PIs include: </p> <ul> <li>Total ad spend.</li> <li>Number of clicks.</li> <li>Cost per click (CPC).</li> <li>Unique visitors.</li> <li>Bounce rate.</li> <li>Conversion rate.</li> <li>Repeat visits.</li> </ul> <p>In most cases, <strong>the people responsible for maintenance of the digital platforms should be able to influence PIs.</strong>  </p> <p>For example, if visitors are low, buy more ads. If the bounce rate is high, have a look at the how the page content relates to the ad or page title.</p> <h4>3. Only include KPIs in company-wide reports</h4> <p>PIs which give insight into the performance of the business ('key' PIs, or KPIs), and only such PIs, should be included in reports with a wider, company-wide circulation.</p> <p>KPIs typically have three qualities: </p> <ul> <li>They are reported regularly.</li> <li>They are benchmarked against previous performance.</li> <li>They are well-understood outside of marketing.</li> </ul> <p>Additionally,<strong> KPIs should be accompanied with analysis and recommendations.</strong>  </p> <p>Report readers will not know immediately whether the numbers are within range or not, and so the report should state so clearly.  </p> <p>Should the the figures be exceptional,<strong> recommendations on which action is required should accompany the KPIs.</strong></p> <p>KPIs are figures which help management understand the value of marketing in terms they understand.</p> <p><a href="http://www.freepik.com"><img src="https://assets.econsultancy.com/images/0008/0325/kpis.jpg" alt="" width="800" height="369"></a></p> <p>Examples of KPIs include: </p> <ul> <li>Number of new customers</li> <li>Cost of new customer</li> <li>Revenue</li> <li>Average order value</li> <li>Repeat purchases</li> </ul> <p>Note that<strong> there may be some variation in what constitutes a KPI depending on the company.</strong>  </p> <p>A small startup CEO may want to know customer acquisition numbers and costs whereas management at a larger company may just want to know the value of marketing-assisted sales.</p> <p>Also, keep in mind that <strong>KPIs are not nearly as easy to influence as PIs.</strong>  </p> <p>Whereas most PIs have a simple cause-and-effect, many KPIs move for mysterious reasons and a solution may not be readily apparent.</p> <p>In such cases, it's recommended to make it clear that a change in a KPI is not yet well-understood and investigation is underway.</p> <h4>4. Start using customer metrics</h4> <p>In our <a href="https://econsultancy.com/reports/quarterly-digital-intelligence-briefing-2016-digital-trends">2016 Digital Trends survey</a>, respondents indicated that 'Optimizing the customer experience' was the single most exciting opportunity in 2016.</p> <p>However, in another survey, <a href="https://econsultancy.com/reports/measurement-and-analytics-report">Measurement and Analytics (2016)</a>, less than half (42%) included 'Improving customer retention / loyalty' in the top three growth/profit-related requirements for analytics.</p> <p>This is disappointing, but not surprising.</p> <p>Many businesses are keen to talk about improving customer experience, but relatively few use analytics to make it happen.</p> <p>In addition to finding the PIs and the KPIs to run the business-as-usual side of your marketing, including customer-based metrics is a good way of getting ahead of the competition and planning for the future.</p> <p>Examples of customer metrics are: </p> <ul> <li>Customer acquisition cost (CAC).</li> <li>Customer lifetime value (CLV).</li> <li>Net Promoter Score (NPS).</li> <li>Satisfaction levels.</li> </ul> <p>Also, marketers should include more customer-based ad feedback.  </p> <p>Instead of just measuring effectiveness using cost-per-click, more advanced organisations can conduct surveys to see how well the ads performed.</p> <p>Marketing effectiveness metrics include: </p> <ul> <li>Ad recall.</li> <li>Brand lift.</li> <li>Message association.</li> </ul> <p>Facebook and Google (via YouTube) are innovators with customer-based metrics and are providing some of the above figures to selected advertisers.</p> <p><a href="http://www.freepik.com"><img src="https://assets.econsultancy.com/images/0008/0326/customer.jpg" alt="" width="800" height="690"></a></p> <h4>5. Be careful withs KPI frameworks</h4> <p>When building an analytics programme,<strong> marketers are encouraged to use an analytics framework to hold all of their KPIs together.</strong></p> <p>In his book <a href="https://www.amazon.com/Cult-Analytics-strategies-Emarketing-Essentials/dp/1856176118">Cult of Analytics</a>, Steve Jackson details the REAN framework which covers the Reach, Engage, Activate, Nuture goals of most marketing departments.  </p> <p>Frameworks are indeed helpful for covering PIs throughout the customer journey.</p> <p>Following one of the models will make sure everyone in marketing is using the same set of PIs and understands how social, web, ecommerce, and CRM are interconnected.</p> <p>Trying to come up with a KPI for each section, however, may be difficult.  </p> <p>Most people in a business do not understand marketing PIs and are likely too busy to learn about them.  </p> <p>Marketing metrics, however, seem to be intuitive, though, and so<strong> including PIs in widely-distributed reports may give executives a false sense of understanding.</strong></p> <p>For this reason, <strong>chose only KPIs which are relevant to the business</strong> and avoid metrics which are there just to fill an analytics framework.</p> <h3>Ideal vs. reality</h3> <p>Presented above is the ideal scenario. <strong>Reports should be short and to the point.</strong>  </p> <p>Insights provided in simple sentences along with recommendations which would be considered carefully by management.</p> <p>Reality, however, is often very different.  </p> <p>Immediate bosses may be interested in the detail of the marketing campaigns and even senior executives may want to know how many 'fans' the company has. </p> <p>These scenarios are unavoidable and so<strong> there may only be limited opportunities for providing concise reports which focus only on KPIs.</strong></p> <p>Such reports should, however, be the goal of the digital marketing analyst who aims to move beyond reporting and toward providing insights and recommendations which provide real value to the business.</p> <p><a href="http://www.freepik.com"><img src="https://assets.econsultancy.com/images/0008/0327/happy.jpg" alt="" width="800" height="800"></a></p> tag:econsultancy.com,2008:BlogPost/68396 2016-10-11T01:01:00+01:00 2016-10-11T01:01:00+01:00 Digital analytics demystified, Part One: Puzzle vs. Mystery Jeff Rajeck <p>This series aims to demystify analytics through looking at the practice in-depth and talking about the data, the methods, and the desired results of digital marketing analytics.</p> <p>First, let's take a look at how analytics can help with business problems. That is, how should analysts approach the wide variety of problems businesses face?</p> <h3>Before we start...</h3> <p>Econsultancy is holding an Advanced Mastering Analytics course in Singapore on Thursday, 27th October 2016.</p> <p><a href="https://econsultancy.com/training/courses/advanced-mastering-analytics-training-singapore/">Click here for more information</a> and to book your place!</p> <h3>Research about analytics</h3> <p>A recent research paper sheds some light on this question. In a 2015 report, '<a href="http://www.ey.com/Publication/vwLUAssets/EY-global-becoming-an-analytics-driven-organization/%24FILE/ey-global-becoming-an-analytics-driven-organization.pdf">Becoming an Analytics-driven Organization to Create Value</a>', EY (formerly Ernst &amp; Young) asked 270 senior executives to list the top drivers to implement data analytics.  </p> <p>Two of the top reasons business executives implement analytics programmes are:</p> <ol> <li>To understand customers better.</li> <li>To create new revenue streams.</li> </ol> <p>Both are worthwhile ambitions and they give us some idea of what sorts of problems businesses expect analytics to solve. </p> <p><strong>But how exactly can analytics help solve these problems?</strong></p> <p>To answer that question, it's useful to take a step back and determine what, exactly, are we doing when we 'do' analytics?</p> <p>Sure, we want to help 'understand the customer better' and help 'create new revenue streams' but what does that mean to an analyst on a day-to-day basis?</p> <p>One answer to this question comes from outside of the business world, entirely.</p> <h3>Puzzles and mysteries</h3> <p>In an <a href="http://www.smithsonianmag.com/people-places/risks-and-riddles-154744750">acclaimed article</a>, Gregory F. Treverton, chairperson of the US Government's National Intelligence Council, wrote about how government intelligence analysts approach problems.</p> <p>When confronted with something new, they put the problem into one of two categories.</p> <p><strong>One type of problem he calls a 'puzzle'</strong> and describes it like this:</p> <blockquote> <p>Even when you can't find the right answer [to a puzzle], you know it exists.</p> </blockquote> <p>He gives the example of the military strength of the Soviet Union during the Cold War. The US didn't know how many weapons the Soviets had, but they knew such an answer existed.</p> <p><strong>The other type of problem is a 'mystery'.</strong></p> <blockquote> <p>A mystery cannot be answered; it can only be framed.</p> </blockquote> <p>His example for a mystery is terrorism. Unlike the Soviet weapons, intelligence officials did not have a clear idea of the cause and goals of terrorism, and so it cannot be quantified, measured, or solved.  </p> <p>So, according to Treverton, it had to be treated differently.</p> <p>The difference between the two types of problems hinges on whether they can be solved. <strong>A puzzle, like a crossword puzzle, has answers. A mystery, however, does not.</strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0008/0080/analytics4.jpg" alt="" width="800" height="453"></strong></p> <h3>Classifying the problems</h3> <p>Going back to the problems from the EY paper, are they puzzles or mysteries?</p> <p>Business problem one is '<em>To understand customers better</em>'.  Is this a puzzle or a mystery? In other words, could we find answers to the questions around not understanding our customers well enough?</p> <p>Most likely, yes. In most cases, there is only a limited amount of data about a customer which is useful to our business. <strong>This particular problem, then, is a puzzle.</strong></p> <p>But what about the problem two: '<em>To create new revenue streams</em>'. Puzzle or mystery?</p> <p>This problem isn't quite as clear-cut. What do we need to know to start a new business line? Is it even possible?</p> <p>We don't really know either at the outset. <strong>This one looks more like a mystery.</strong></p> <h3>Solving puzzles and mysteries</h3> <p>So how does classifying our problems in this way help us solve them?</p> <p>Treverton describes the issues that analysts face when trying to solve both types of problems (emphasis mine).</p> <blockquote> <p>Puzzle-solving is frustrated by <em>a lack of information</em>.</p> <p>Mysteries often grow out of <em>too much information</em>.</p> </blockquote> <p>Let's apply these to our problems.</p> <p>Problem one, not understanding our customers, has the same issue Treverton's analysts faced when confronting a puzzle.</p> <p><strong>We want to understand the customer better, but we do not have enough information about them.</strong></p> <p>But is our other problem, 'to create new revenue streams', a result of too much information?</p> <p>Well, a standard way to 'solve' this problem is to collect data about the market, review the competitive landscape, and read some product launch case studies. But does this really help?</p> <p>Possibly. Many would argue that research does help launch businesses. </p> <p>But, from another angle, maybe not. If readily-available data were useful to starting a new business line, then it's likely that another company would have already found it, making it an unattractive solution.</p> <p>Because of this, all of the existing data in the world would not necessarily help solve this problem.</p> <p><strong>Creating genuinely new revenue streams, from that perspective, then looks like a mystery.</strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0008/0081/analytics_2.jpg" alt="" width="800" height="451"></strong></p> <h3>How to solve a mystery</h3> <p>But what should we do? Do we solve the puzzles and discard the mysteries?</p> <p>Let's go back to Treverton's article.</p> <blockquote> <p>Puzzles can be solved; they have <em>answers</em>.</p> <p>Treating [mysteries] as puzzles is like trying to solve the unsolvable - an impossible challenge. But approaching them as mysteries may make us more comfortable with the uncertainties.</p> </blockquote> <p>There is the answer. <strong>We should work on both puzzles and mysteries, but in different ways.</strong></p> <p>To 'do' analytics, we need to decide what kind of problem we are solving - a puzzle or a mystery - and treat it appropriately.</p> <p>If the problem is a puzzle, or one for which more data helps, we should collect more data.  </p> <p>If the problem is a mystery, then we should start by defining the problem area first before even thinking about collecting data.</p> <p>Going back to the first problem from the EY report, we know the data which would help us to understand customers better, so we solve this problem by collecting more data.</p> <p>But for the second problem, we do not know what, if any, of our existing data will help us create new revenue streams. We should, therefore, avoid data analysis until we understand the problem better.   </p> <p>A better approach to a mystery would be to ask questions:</p> <ul> <li>How much revenue are we looking to gain?</li> <li>How much is the company willing to invest in this project?</li> <li>Are we able to cannibalize existing revenue to get there?</li> <li>Does this project have executive-level buy-in? </li> </ul> <p>And so on. Answering these questions is likely to increase the range of potential solutions and, hopefully, present options for which data can play a greater role.</p> <p><img src="https://assets.econsultancy.com/images/0008/0084/analytics1.jpg" alt="" width="800" height="447"></p> <h3>Back to digital marketing</h3> <p>The approach used by the intelligence community to solve problems can also be used for digital marketing analytics.</p> <p>Here are some of the things digital marketing analysts are asked to do on a regular basis: </p> <ul> <li>Are the new ads doing better than the old ones?</li> <li>Where are people dropping off on the website?</li> <li>How did this month's performance compare with last month's?</li> <li>What was our return on ad spending?</li> </ul> <p>And we can answer these questions. They are puzzles and the solution lies in retrieving the right data.</p> <p>But digital marketing analysts are also asked other, more complicated questions: </p> <ul> <li>How can we lower our customer acquisition costs?</li> <li>How can we sell more to existing customers?</li> <li>What can we do to prevent churn? </li> </ul> <p>It's tempting to respond with historical ad costs, customer acquisition cost figures and future projections to offer insights. But this approach is limiting.  </p> <p>As we know by now, <strong>these problems are mysteries, not puzzles, and so a definitive answer from our data may not even exist.</strong></p> <p>A better approach is to treat these problems like mysteries and respond with questions. </p> <p>Ask about the scope of the project:</p> <ul> <li>What can be changed?</li> <li>What has to remain the same? </li> <li>What's the budget?</li> <li>Are we limited to digital media?</li> <li>Etc. </li> </ul> <p>These questions may not, yet, have answers. Once they do, though, it is likely that you will be much closer to a few potential solutions.</p> <p>Then, the data you collect can be analysed with the solutions in mind and provide better insights to the business. </p> <p><img src="https://assets.econsultancy.com/images/0008/0083/analytics3.jpg" alt="" width="800" height="451"></p> <h3>So...</h3> <p>So when approaching analytics, whether it be a report for your team or a strategy for the department, think of the National Intelligence Council and classify the problems first.</p> <p>For day-to-day performance monitoring, the best approach is to collect data and organise in a sensible way. Our next Analytics Demystified post discusses how to do so in greater detail.</p> <p>For business analysis, though, the first step is to ask questions.</p> <p>Defining the scope of the solution is more important than collecting data and, in doing so, you will be moving your data analytics up the value chain.</p> tag:econsultancy.com,2008:BlogPost/68355 2016-10-10T11:21:57+01:00 2016-10-10T11:21:57+01:00 How online grocery retailers are capitalising on the need for convenience Nikki Gilliland <p>So why are us Brits so keen on shopping for groceries online?</p> <p>Here’s a bit of analysis on the stats, as well as how <a href="https://econsultancy.com/blog/66602-do-supermarkets-know-what-online-customers-want/" target="_blank">grocery retailers can capitalise</a> on the growing demand for online services.</p> <h3>A matter of convenience</h3> <p>Since June 2015, sales of groceries through ecommerce have reached $48bn. </p> <p>While the FMCG market as a whole is slowing down, this shows us that consumers are increasingly looking for speed and convenience, specifically when it comes to doing the weekly shop.</p> <p>Despite the US accounting for just 1.4% of the grocery ecommerce market, many predict this figure will grow in future.</p> <p>Below is some interesting data on why US customers currently choose not to shop for groceries online.</p> <p><a href="https://www.morganstanley.com/ideas/online-groceries-could-be-next-big-ecommerce-driver" target="_blank"><img src="https://assets.econsultancy.com/images/0007/9723/Morgan_Stanley_research.JPG" alt="" width="780" height="538"></a></p> <p>While the majority cite the tangible experience of seeing fresh produce in real life, let’s not forget that many people said the same about clothing and homeware – now two big areas for ecommerce. </p> <h3>A focus on freshness</h3> <p>So, if the UK prefers grocery shopping online, does that mean we care less about fresh produce?</p> <p>Probably not, yet it’s interesting to note how many online supermarkets here are ramping up efforts to convince us that the produce bought online is super fresh.</p> <p>Here are some of the best examples of this behaviour.</p> <p>Firstly, Sainsbury’s, which likes to hammer home its ‘fresh from the farm’ message, using it alongside images of just-picked fruit and veg.</p> <p><em>(For more on this brand, see: <a href="https://econsultancy.com/blog/66076-ocado-vs-sainsbury-s-customer-journey-comparison/">Ocado vs. Sainsbury's: customer journey comparison</a>.)</em></p> <p><img src="https://assets.econsultancy.com/images/0007/9725/Sainsburys_Freshness.JPG" alt="" width="780" height="746"></p> <p>While it might seem like an insignificant detail, note the fact that it also uses the word ‘fresh’ in the title of many sub-categories - i.e. ‘fresh vegetables’ and ‘fresh herbs’ as opposed to just ‘vegetables’ and 'herbs'.</p> <p><img src="https://assets.econsultancy.com/images/0007/9726/Sainsburys_Fresh_Vegetables.JPG" alt="" width="620" height="607"></p> <p>While this obviously also helps to differentiate from frozen items, the constant reminder about freshness helps to convince consumers that they’re getting the very best.</p> <p>Asda also uses this tactic, but this time with an extra localised incentive, reassuring us that the produce it sells is grown and sourced in the UK.</p> <p><img src="https://assets.econsultancy.com/images/0007/9727/Asda_fresh.JPG" alt="" width="780" height="486"></p> <p>Finally, Tesco goes one step further with its ‘freshness guarantee’ – an initiative that takes centre stage on the ‘Fresh Food’ section of the website.</p> <p><img src="https://assets.econsultancy.com/images/0007/9728/Tesco_Freshness_Guarantee.JPG" alt="" width="780" height="746"></p> <p>But did they take it too far?</p> <p>Tesco has been under fire since it was revealed that many of the farms featured on its products do not actually exist.</p> <p><em>(For more on this brand, see: <a href="https://econsultancy.com/blog/66100-how-do-waitrose-and-tesco-use-on-site-content-marketing/">How do Waitrose and Tesco use on-site content marketing?</a>)</em></p> <p><img src="https://assets.econsultancy.com/images/0007/9729/Tesco_farms.JPG" alt="" width="780" height="633"></p> <p>Interestingly, the retailer has seen continued sales growth since introducing the range.</p> <p>With a clear interest from consumers in fresh and locally sourced food, this shows how <a href="https://econsultancy.com/blog/67874-the-rise-of-the-artisanal-tone-of-voice-among-brand-marketers/" target="_blank">artisanal marketing</a> can hugely influence behaviour.</p> <h3>Opportunity for impulse buying</h3> <p>Research shows that after one year of shopping online, consumers in the UK spend 2.4% less than they did at the start.</p> <p>This suggests that when consumers set up an online shopping basket, they are more likely to stick to it.</p> <p>Consequently, retailers need to work harder to encourage impulse buying.</p> <p>While most websites include a ‘You might have missed’ section before the checkout, there is still plenty of opportunity for added incentives to be included throughout the browsing experience.</p> <p>One example of a supermarket that tries to do this is Ocado.</p> <p>There is a heavy focus on offers and product tie-ins across the board. </p> <p><img src="https://assets.econsultancy.com/images/0007/9730/Ocado_incentives.JPG" alt="" width="780" height="477"></p> <p>While it is a bit in-your-face, an incentive like ‘Buy broccoli, add Kale for £1.50’ is a great example of how to cross-sell.</p> <p>Likewise, the ‘You might like’ box on each product page hints at personalisation and targeted offers.</p> <p>Sainsbury’s does a similar thing, though it is a little more subtle in its approach.</p> <p>Calls-to-action like ‘great with’ and ‘have you tried…’ encourage consumers to spontaneously add items to their basket.</p> <p><img src="https://assets.econsultancy.com/images/0007/9731/Sainsburys_Do_You_Need.JPG" alt="" width="780" height="717"></p> <h3>A good experience leads to loyalty </h3> <p>Finally, with research showing that 55% use the same shopping list from one purchase to the next, it seems as though consumers are also likely to choose one supermarket and stick to it. </p> <p>However, with the introduction of <a href="https://econsultancy.com/blog/67992-how-amazonfresh-is-hoping-to-threaten-the-uk-s-big-four-supermarkets/" target="_blank">Amazon Fresh</a> and its promise of ultimate convenience, this notion could change in the near future. </p> <p><img src="https://assets.econsultancy.com/images/0007/9732/Amazon_Fresh.JPG" alt="" width="780" height="534"></p> <p>If the biggest retailers fall behind on delivery – it could be the ultimate game-changer for the UK’s online grocery market.</p> <p>With the news that Sainsbury's is set to <a href="https://www.theguardian.com/business/2016/sep/26/sainsburys-one-hour-delivery-takes-on-amazon-bikes-london" target="_blank">launch a new one-hour delivery service</a> for London consumers, the competition is already heating up.</p> tag:econsultancy.com,2008:Report/4269 2016-10-10T10:00:00+01:00 2016-10-10T10:00:00+01:00 Customer Recognition: How Marketing is Failing at its Top Priority <p>The long-held promise of digital is to make mass marketing personal. For years, the technologies of marketing have pushed the industry closer to the goal of one-to-one marketing, but consumer habits have changed even faster. The move to mobile pulled the rug out from under data-reliant marketers just as they were truly beginning to understand how to sell on the desktop.</p> <p>To deliver personalized and valuable services, we have to know the individual. That knowledge doesn't have to come with an SSN, ZIP+4 and credit score, but it does need to distinguish them sufficiently to know that one path is more useful to them than another. Today the industry is grappling with the fundamental questions of how to recognize individuals across devices and understand the complicated set of encounters that make up the customer experience.</p> <p>The <strong>Customer Recognition Report</strong>, produced in association with <a title="Epsilon" href="http://www.epsilon.com">Epsilon</a> and <a title="Conversant" href="http://www.conversantmedia.com/">Conversant</a>, explores where marketing is today in its pursuit of personalized promotion and finds a stark gap between perception and reality.</p> <p>The report is based on a survey of 220 executives with knowledge of their organization's measurement and analytics capabilities. Sixty-three percent of respondent companies reported revenues over $1.5 billion in 2015.</p> <h2>Key topics covered</h2> <ul> <li>Recognition is the foundation for marketing's top priority</li> <li>Belief vs. reality in digital capabilities</li> <li>Why the single customer view eludes marketers</li> <li>Promise vs. reality in data management vendors</li> <li>How to conduct a true capability audit</li> <li>Why it's vital to reduce data friction with customers, and guidelines for doing so</li> <li>How to align the company behind measurement as a strategic resource</li> <li>The internal threat to evolving measurement practices</li> <li>The ongoing discrepancy between media allocation and customer behavior</li> </ul> <p><strong>Download the report to learn more.</strong></p> tag:econsultancy.com,2008:BlogPost/68335 2016-10-03T11:05:44+01:00 2016-10-03T11:05:44+01:00 How has programmatic impacted the advertising industry? Nikki Gilliland <p>For the full interview you can watch the video below, or read the handy summary underneath. </p> <p><iframe src="https://www.youtube.com/embed/xcppyzUl4jI?wmode=transparent" width="854" height="480"></iframe></p> <h3>The effect on media agencies</h3> <p>Andrea suggests that programmatic has effected media agencies in three key areas.</p> <p>First, in terms of talent, which has seen a shift away from traditional skills to the need for more analytical knowledge.</p> <p>Secondly, the greater need for storytelling, and the opportunity for media agencies to talk about content and creativity in a meaningful way.</p> <p>Lastly, Andrea cites the processes needed to deliver meaningful programmatic. In order to achieve this, agencies really have to think about end-to-end processes, from insight to creative to planning and so on.</p> <h3>Interpretation of data</h3> <p>When it comes to excelling at programmatic, Andrea suggests that success is not only down to having a proper DMP in place, but being able to correctly interpret the data. </p> <p>In turn, it is up to agencies and brands to tailor their programmatic accordingly. </p> <p>Essentially, she suggests that while we’re all sitting on swathes of data, the best examples of programmatic come from those who correctly analyse it and use it to drive the end goal.</p> <h3>Creativity over viewability</h3> <p>Andrea says that the reason we focus on factors like viewability and price is because they are very easy to measure, and it is very easy to hold agencies to account on these metrics if they don’t measure up. </p> <p>However, it appears many are missing out on the opportunities presented by creative testing. Programmatic is the perfect medium to be able to refine the messaging according to the intended outcome.</p> <p>Finally, Andrea suggests that it is up to the creative agencies to be able to talk to clients and present them this opportunity, rather than simply optimising for the smallest cost per view.</p> <p><em>Further reading:</em></p> <ul> <li><em><a href="https://econsultancy.com/blog/68152-the-future-of-programmatic-top-marketers-give-their-verdict" target="_blank">The future of programmatic: top marketers give their verdict</a></em></li> <li><em><a href="https://econsultancy.com/blog/68210-how-programmatic-advertising-is-helping-drive-the-digital-transformation-agenda" target="_blank">How programmatic advertising is helping drive the digital transformation agenda</a></em></li> <li><em><a href="https://econsultancy.com/blog/68310-how-ooh-programmatic-helped-drive-missing-people-s-latest-campaign" target="_blank">How OOH programmatic helped drive Missing People’s latest campaign</a></em></li> </ul> tag:econsultancy.com,2008:BlogPost/68338 2016-09-30T15:00:37+01:00 2016-09-30T15:00:37+01:00 Goldman Sachs creates in-house content studio Patricio Robles <p><a href="http://www.mediapost.com/publications/article/285489/branded-content-is-king.html">According to</a> Bridges, the studio isn't tasked with creating ads to promote Goldman Sachs aggressively or drum up new business.</p> <p>Instead, its focus is on creating a variety of digital content that helps the firm connect with the public online.</p> <p>That content includes podcasts, like <em><a href="http://www.goldmansachs.com/our-thinking/podcasts/">Exchanges at Goldman Sachs</a>, </em>"in which people from across the firm share their insights on developments shaping industries, markets and the global economy."</p> <p>As well as <a href="http://www.goldmansachs.com/briefings/index.html">BRIEFINGS</a>, a weekly email newsletter through which Goldman Sachs shares insights into global trends affecting markets and economies. </p> <p><iframe src="https://www.youtube.com/embed/RQrwSGWMuXY?wmode=transparent" width="560" height="315"></iframe></p> <p>The firm is also investing heavily in video, some of which is posted to <a href="https://www.youtube.com/user/GoldmanSachs">Goldman Sachs' YouTube channel</a>.</p> <p>These videos cover everything from the rise of craft products to stories of companies that Goldman Sachs has helped grow.</p> <p>The firm also has YouTube channels dedicated to economics and markets, careers, and its impact investing contributions.</p> <p>All told, Goldman Sachs videos have racked up over 7m views on YouTube, and the firm has some 23,000 followers.</p> <h3>Who doesn't like a vampire squid?</h3> <p>In the wake of the 2008 financial crisis, which many saw as highlighting the unfair differences between Wall Street and Main Street, the financial services industry has struggled to defend its reputation.</p> <p>Goldman Sachs, as one of the most prominent financial institutions in the world, was not surpisingly a common target of attacks against Wall Street.</p> <p>One of the sharpest attacks came in the form of a <a href="http://www.rollingstone.com/politics/news/the-great-american-bubble-machine-20100405">Rolling Stone article by Matt Taibbi</a>, in which he famously wrote:</p> <blockquote> <p>The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.</p> </blockquote> <p>Goldman Sachs, obviously, would beg to differ with that description of its company, and content marketing appears to be an effective way of trying to better manage its reputation online.</p> <p>According to Goldman's Bridges, "Our favorability increases [after people view its content rather than see a straight ad]."</p> <p>Boosting favorability is a slow process, but an important one, for a number of reasons.</p> <p>In the case of financial services firms like Goldman Sachs, it's not just about negative public perception, which has driven a push for <a href="https://econsultancy.com/blog/68215-are-regulations-impeding-financial-services-innovation">greater regulation that can hamper firms' ability to innovate</a>. It's also about attracting talent.</p> <p>While Goldman Sachs is still <a href="http://www.cnbc.com/2014/06/17/the-employer-of-choice-for-bankers-guess-who.html">the employer of choice</a> for those in investment banking, in years past, investment banks were also employers of choice for talented young university graduates.</p> <p>That <a href="http://www.bloomberg.com/news/articles/2015-08-06/for-harvard-mbas-congrats-on-a-bank-job-really-means-i-m-sorry-">has changed more recently</a>, as many graduates who would have historically found their first jobs on Wall Street look elsewhere, including tech companies and startups in Silicon Valley.</p> <p>Content marketing alone might not reverse that trend, but by opening itself up the digital world, Goldman Sachs has a better chance of catching the attention of students who are still weighing their options.</p> <h3>A long-term investment</h3> <p>Like most firms engaged in content marketing, Goldman Sachs is working through the issue of metrics. For example, it doesn't look at video views.</p> <p>Instead, it monitors how many users watch at least 25% of a video. And it doesn't have great analytics data for its podcasts because Apple doesn't offer much data.</p> <p>But when it comes to content, Goldman Sachs is a long-term investor that isn't worried about instant returns.</p> <p>Much of its <a href="https://econsultancy.com/blog/66247-14-examples-of-evergreen-content-formats-that-work-wonders/">content is designed to be evergreen</a>, and that means it can pay dividends long after it was produced.</p> <p>Case in point: one of its video series caught the attention of Reddit over a year after it was published, generating more than a million views.</p> tag:econsultancy.com,2008:BlogPost/68341 2016-09-30T11:45:26+01:00 2016-09-30T11:45:26+01:00 Reimagining customer loyalty: Why it's about more than just a store card Ben Pask <p>It comes as no surprise, as macro-economic forces drive customers to seek better value in some of the more considered purchases they make each day.</p> <p>However there are indications that the market for loyalty scheme membership, is reaching <a href="http://www.telegraph.co.uk/finance/personalfinance/money-saving-tips/11912823/Shoppers-waste-6bn-of-loyalty-reward-points.html">saturation</a>.</p> <p>How can it be the case that one person can amass 16 loyalty cards, and not redeem any points?</p> <p>Both halves of that sentence seem a little bonkers to me, but perhaps the way that the marketing industry imagines loyalty to be, isn’t solving the problem it’s trying to fix.</p> <p>Before going into detail on whether loyalty schemes work or not, it’s worth defining what we mean when we say loyalty.</p> <p>True loyalty considers two important elements: A positive attitude and repeat patronage towards a brand.</p> <p> <img src="https://assets.econsultancy.com/images/0007/9587/Dick_and_Basu.png" alt="Dick and Basu on Loyalty" width="359" height="218"></p> <p>To understand how to create loyalty, we need to understand where it comes from.</p> <p>In a recent piece of research, it was identified that the drivers of customer loyalty are ‘brand likeability’, ‘delivering on brand promise’, ‘product quality’ and ‘ease of use’.</p> <p>Four in five customers <a href="https://www.marketingweek.com/2016/07/13/are-loyalty-schemes-broken/">identified these elements</a> as important in driving customer devotion.</p> <p><img src="https://assets.econsultancy.com/images/0007/9586/Chart_-_drivers_of_customer_loyalty.png" alt="Drivers of customer loyalty" width="549" height="326"></p> <p>A good example of creating customer loyalty through these drivers <a href="https://erply.com/case-study-how-you-can-copy-nordstroms-secrets-to-massive-retail-success/">comes from Nordstrom</a>. The retailer is synonymous with excellent customer service.</p> <p>The culture of a customer-first approach to loyalty is apparent through the company's DNA - with all staff embodying the three core standards:</p> <ol> <li>Why the service is of value (why we’re doing this in the first place).</li> <li>The emotional response the customer should feel.</li> <li>The expected method for accomplishing the service in question.</li> </ol> <p>With these three standards in place, employees are empowered to create great customer experience, by any means possible.</p> <p>This helps achieve some of the main components that drive loyalty - ‘quality’, ‘ease of use’, ‘likeability’ and ‘delivering on brand promise’.</p> <p>Nordstrom is successful because every decision is about encouraging an emotional response from the customer, simply to make them feel good.</p> <p><iframe src="https://www.youtube.com/embed/NTqBhdUnisI?wmode=transparent" width="640" height="360"></iframe></p> <p>This is a key differentiator compared to many of the traditional rewards programs we see today, with their points and discounts providing benefits that are easy to rationalise.</p> <p>By focusing on the emotional reaction and feeling of the customer Nordstrom makes loyalty a culture, not a route to market.</p> <p>There is a case for reimagining what loyalty means in categories that are associated with low involvement. Take Insurance as an example.</p> <p>David Moth’s <a href="https://econsultancy.com/blog/68273-is-customer-loyalty-extinct-in-financial-services">assessment of the Insurance category</a> presented some anecdotal evidence of a category struggling to get to grips with market forces beyond their control, leading to the commoditization of service through price comparison sites and new apps on the market.</p> <p>In such categories, brands need to consider the value they create, as opposed to the value they offer.</p> <p>One powerful example of this comes in the form of Oscar, a health insurance provider in the US. Oscar promises its customer hassle free insurance with personalised tariffs.</p> <p><iframe src="https://www.youtube.com/embed/eBNEKu-dH3Q?wmode=transparent" width="640" height="360"></iframe></p> <p>By issuing out wearable tech Oscar incentivises healthy behaviours and adjusts the insurance premiums it offers to customers based on their behaviours.</p> <p>Oscar has gained a name for itself by focusing on the implicit drivers that create loyalty.</p> <p>As highlighted in a recent <a href="https://www.hioscar.com/">Econsultancy report</a>, one of the biggest barriers to CX success is a lack of understanding of the customer journey.</p> <p>To understand what loyalty means, brands need to go back to understanding their customers' needs (“what is most important to me”), motivations (“why is this important”), and finally behaviours (“what am I doing when…”).</p> <p>Again perhaps one of the pitfalls of the way loyalty is imagined in many marketing departments is the lack of psychographic and attitudinal data to augment behavioural data such as customer lifetime value, frequency of purchase, etc.</p> <p>Don’t get me wrong, loyalty schemes have their role and have proven to be effective for some brands.</p> <p>The problem with brand behaviour around loyalty schemes is that there is often an assumption that ‘doing a loyalty’ scheme will magically paper the cracks of a poor brand experience.</p> <p>This, coupled with the idea that many marketing departments attempt to copy-paste the approach of others, leads to market filled with ‘me too' propositions.</p> <p>To do loyalty right requires a customer-first culture that flows through the business, which requires more than a store card.</p> <p>As people, we are only limited by our own imaginations when we think about loyalty, and perhaps the industry needs to readdress what loyalty means to them.</p> tag:econsultancy.com,2008:BlogPost/68347 2016-09-29T01:00:00+01:00 2016-09-29T01:00:00+01:00 Seven ways to supercharge your data-driven marketing Jeff Rajeck <p>Nine out of ten put it in their first three, more than any other topic.</p> <p><img src="https://assets.econsultancy.com/images/0007/9633/data-driven.png" alt="" width="565" height="315"></p> <p>But what are marketers actually doing with their data?<strong><br></strong></p> <p>What tips can professionals give for those who may be just starting out with data-driven marketing?</p> <p>To find out, Econsultancy recently held roundtable discussions at our fifth annual Digital Cream Sydney.  </p> <p>There, client-side marketers from across the industry discussed trends, best practices, and the issues they are currently facing.</p> <p>The roundtables were moderated by subject matter experts from the industry. Participants brought their own experiences, questions, and challenges to the table for open discussion.</p> <p>Here are the highlights from the discussion at the Data Driven Marketing &amp; Marketing Attribution Management table.</p> <h3>1. Use personas and customer journey mapping for attribution modeling</h3> <p>We now live in an omnichannel world. People often use the web, social media, mobile, and search before buying something.  </p> <p>How can marketers determine the right amount to invest in each channel?</p> <p>Participants agreed that doing so, also known as attribution modeling, is one of the toughest tasks marketers now face.</p> <p>Figuring out which channels drive awareness, which help with research, and which lead to conversions is not easy - even with all the data in the world.</p> <p>While attendees admitted that there is 'no silver bullet' for determining the right model, delegates suggested that using customer experience data can help.</p> <p>They said that <strong>creating audience personas and then mapping each customer journey can provide insight into the path-to-purchase for different customers.</strong>  </p> <p>This can then provide the foundation for the elusive attribution model which helps marketers allocate their spending for optimal results.</p> <p><img src="https://assets.econsultancy.com/images/0007/9626/data-driven__Custom_.jpg" alt="" width="800" height="533"></p> <h3>2. Avoid using personas for more granular data-driven marketing</h3> <p>While the customer-centric approach may work for modeling attribution, delegates agreed that<strong> personas and customer journey maps were not so useful when doing more personalised data-driven marketing.</strong></p> <p>That is, when buying programmatic media or providing on-site personalisation, broad segments and models do not help.  </p> <p>Instead, attendees stated that <strong>marketers should use an individual's behavior to deliver relevant ads and personalised content.</strong>  </p> <p>What a person has viewed or purchased previously is much more likely to attract their attention in the future than something which fits a particular persona, one participant argued.</p> <h3>3. Look at <em>your</em> data when optimizing</h3> <p>Another dilemma marketers often face is how to optimize their website and ad buying based on outside trends.</p> <p>Recently, there have been many charts showing that mobile traffic is outpacing web traffic. Does this mean that marketers should go 'mobile first'?</p> <p>Not at all said the delegates. While it is useful to be aware of the trends in mobile, video, and messaging, <strong>marketers should prioritise their own customers' behaviours to help form strategies.</strong></p> <p>As an example, at one table on the day, there were some marketers who said that mobile usage was plateauing while others said that tablet traffic is becoming increasingly important to them.</p> <p>So, the recommendation is that marketers should first keep a close eye on the trends in their own data before making any drastic changes as a result of industry reports.</p> <p><img src="https://assets.econsultancy.com/images/0007/9627/data-driven2__Custom_.jpg" alt="" width="800" height="533"></p> <h3>4. Use data for more than just conversions</h3> <p>Marketers these days are typically required to produce data to justify their budget.  </p> <p>Metrics such as cost-per-acquisition (CPA) and return on ad spend (ROAS) are commonly used by the business to gauge performance.</p> <p>Because of the need to demonstrate that marketing spend matters to the business, <strong>attendees agreed that most of the effort spent on marketing attribution and data-driven marketing is used to lower customer acquisition costs</strong>. </p> <p>However, delegates also agreed that we now have the data to do much more. <strong>Data should also be used, they argued, to improve customer retention and loyalty.</strong></p> <p>Doing so will, in turn, increase the lifetime value of customers and improve the bottom line, albeit in a less direct way.</p> <p>Marketers should, therefore, look for opportunities to use data for customer experience and resist the tendency to look for the immediate gratification of a lower CPA.</p> <h3>5. The best third-party data is from sites where users log in</h3> <p>While marketers tend to have a good handle on the data from their own sites (first-party data), many are still wondering about the value of data from other sites (third-party data).</p> <p>This concern was made apparent because, when asked, only around 10-15% of marketers at the tables admitted using a data management platform (DMP) as a 'single source of truth' about their customers.</p> <p>The reasons for hesitating are well-founded. Many third-party data services guess at aspects of users' identities from the sites they visit or activities they have done in the distant past.</p> <p>Attendees asserted, however, that <strong>sites which require users to log in can provide much higher-quality third-party data.</strong></p> <p>Specifically, Google and Facebook can both link extensive browsing and posting behaviour to a particular person.  </p> <p>For this reason, delegates said that such sites do offer third-party data worth using for advertising and analytics.</p> <p>Interestingly, one participant noted, both Google and Facebook are also starting to offer data which allows brands to track consumers offline.</p> <p>That is, they will know whether someone has entered a particular location (e.g. a store) after viewing an ad on their platform.</p> <p><img src="https://assets.econsultancy.com/images/0007/9628/data-driven3__Custom_.jpg" alt="" width="800" height="533"></p> <h3>6. Aim to make small changes with insights from data</h3> <p>While most of the day's discussions were positive, one negative aspect of data-driven marketing emerged. </p> <p>Even with insights from data,<strong> delegates admitted that it was rare that recommendations based on data were actually implemented</strong>.</p> <p>Data was more likely, they said, to be used for retrospective reporting and business-oriented statistics.</p> <p>One way around this, one participant suggested, is to adopt a more 'agile' way of working.</p> <p>What this means is that marketing teams should avoid gathering vast amounts of data in an attempt to influence strategic decisions.  </p> <p>Instead, <strong>marketers should use insights to drive incremental changes on a frequent, tactical basis.</strong></p> <p>In this way, the 'agile' approach will change an organisation's approach to marketing iteratively over time and have a much higher likelihood of succeeding.</p> <h3>7. The biggest hurdle? Finding the right people.</h3> <p>In previous years, marketers have lamented about quality of marketing technology and the difficulty of obtaining data to drive marketing strategy.</p> <p>While these are still concerns, <strong>delegates this year said that their biggest challenge was finding the right people to drive data-driven marketing initiatives.</strong></p> <p>Attendees agreed that that finding people who could interpret data both technically and commercially was really hard. Additionally, these people are critical for getting insights out of data.</p> <p>Newly-hired data scientists are often too technical and abstracted from the operational business to help. Experienced marketers, though familiar with the business, often lack the statistical modeling skills to extract new insights from data.</p> <p>One suggested approach is for marketing teams to recruit analysts with business acumen and data crunching skills.  </p> <p>But in lieu of staffing up with the right people,<strong> participants felt that marketers could also take a more active role in interrogating the data themselves for insight. </strong></p> <p><strong><img src="https://assets.econsultancy.com/images/0007/9630/data-driven4__Custom_.jpg" alt="" width="800" height="533"></strong></p> <h3>A word of thanks...</h3> <p>Econsultancy would like to thank all of the marketers who participated on the day and especially our Data Driven Marketing &amp; Marketing Attribution Management table moderators,<strong> Beaudon McLaren, APJ Ecommerce Manager at Symantec</strong> and <strong>Ashley Friedlein, President of Centaur Marketing &amp; Founder of Econsultancy.</strong></p> <p>We hope to see you all at future Sydney Econsultancy events!</p> <p><img src="https://assets.econsultancy.com/images/0007/9632/moderators__Custom_.jpg" alt="" width="800" height="533"> </p>