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9/30/2011
1
Which Medium Works:Multichannel Testing for High
Performance Results
Spyro Kourtis
President / CEO, Hacker Group
October 4, 2011
• Our vision statement reads: “Create integrated programs that reach the target
audience where they live, work and play…”
“…we are NOT media and technology neutral – we are
biased towards performance and this drives ALL
recommendations…”
• We only pursue opportunities that deliver results for our clients
Performance Bias
9/30/2011
2
Presentation brought to you by the following… following…
4
Once Upon A Time
• Brand advertising was king, queen and the entire royal court
• The rise of “measurable” marketing in the digital world happened out of necessity and I’m sure glad it did
• My journey east to find truth
5
End the theoretical fairy tale, get back to practical work
1. Focus on objectives and metrics that matter to the executive suite
2. Build and track all programs backward from point of sale
3. The new and improved integration
4. Buy into multi-dimensional testing
6
9/30/2011
3
#1 Measurement ≠ Successful
• Many confuse “measurability” with ROI
• Traditional and interactive measurements are not always meaningful for our clients and stop short of sales
Traditional
Interactive
Traditional &
Interactive
• Awareness• Clicks• Page views• Purchase intent• Impressions• Blind faith sales
HackerHacker
Group
• Cost per call• Cost per lead• Cost per sale• ROI
7
#2 Backward from point of sale
• What’s my budget?
CPS x Customers = Budget
8
What’s your goal?
• Test, measure and roll out with the best combinations to suit your needs
9
Calls Clicks Sales from
CallsSales from
ClicksDirect Mail 28.90$ 223.53$ 127.52$ 1,788.24$ Email 140.97$ 10.75$ 671.27$ 89.60$ Mobile Barcode 142.32$ 237.50$ 255.03$ 1,979.17$ Mobile Advertising 10.01$ 359.39$ 168.15$ 2,807.77$ Tablet Advertising -$ 1.37$ -$ 1,407.41$
Cost Per
9/30/2011
4
It begins with targeting
• Who is the target audience?
#2 It begins with targeting
• Three flavors:
Behavioral/transactional information is best
Demographic/ Firmagraphic
Self reported information ─ Acquisition – big ticket sales
─ Customer communications
11
#2 Provide content the way they want to consume it
• Seamlessly transition physical to digital
12
9/30/2011
5
Multichannel Testing for High-Performance Results
The New and
Improved Integration
#3 No one discipline should own a specific media channel
• Mass advertising is more than TV
• And direct marketing is more than just mail
14
• Digital is more than just digital, huh?
• What is the responsibility and expertise of a digital agency?
15
#3 No one discipline should own a specific media channel
9/30/2011
6
BRANDING RECO:
• Rich Media
• 2/3 CPM
• One network
DIRECT RECO:
• Drive leads to Call
• CPC
• Network testing
16
• No one discipline should own a specific media channel
Integration and optimization
• Integration does not mean executing a campaign across multiple media for uncertain “synergies”
• We optimize performance by reinvesting in media that drive results and dropping those that don’t
A + B + C + D + E = ?
D > E > A > C > B
17
#3 Our approach to multi-channel campaigns
• Start holistically
• Measure discretely
• Optimize by channel
• Start over: Allocate media holistically
• Not all media is created equal
• New media synergies
18
9/30/2011
7
Begin with a holistic view
• Not all media are created equal!
• Set a goal for what to expect from each
19
• During execution phase, measure all media discretely
• At the right cadence for the channel
• Optimize discretely
Break it down
20
• Start over again: Allocate media by channel based on performance and optimization
Put it back together
21
9/30/2011
8
#3 Not all media is created equal
Seed Harvest
Non Addressable Addressable
22
#3 The power of one prospect universe
Seed Harvest
Non Addressable Addressable
Seed Harvest
Non Addressable Addressable
• Tracks all solicitations by physical and email address
• Don’t forget mobile phone #
23
Keeps you from drawing wrong conclusions One Prospect Universe
Format Summary Lift Over Control
ROI
Mail Package Only 31.22% 1518%
Mail Package with Email Follow Up
-53.22% -2619%
24
9/30/2011
10
Look out brand, mobile web isn’t just for impressions
28
1 2
35
4
HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM
Step 1: The PowerTest® methodology
29
1 2
35
4
HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM
Step 2: Look for winning combinations (HotZones™)
30
9/30/2011
11
1 2
35
4
HOW TO BUILD A HIGH-PERFORMANCE DIRECT MARKETING PROGRAM
Step 3: CheckTest ™ or rollout winners
31
#4 Multi-Channel media synergies
• Timing
• Offers Consistency increases awareness
Brand them
• Not as concerned about creative synergy
32
Don’t forget about conversion: Testing strategies
33
• Lessons learned – don’t assume that you have the right conversion process in place!
• Avoid spilling leads by validating that the process in place will convert
• Then test to optimize conversion for the best results
9/30/2011
12
Sales conversion: Site testing
34
• A/B/n Testing
• Multivariate Testing (MVT)
• A/B/n + MVT
Sales conversion: Site testing
vs
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Register Your Account:Please provide the following information so we can register your account.
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Conclusions
36
• Remember to focus on the metrics that matter
• Tear down silos – plan based on discipline, and execute across ALL relevant accountable media
• Don’t attempt to boil the ocean