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© IDM Academy 2008
Who are Logan Tod & Co?
• Twenty five Covent Garden based online optimisation consultants with over fifty years of web analytics experience across 12 major tools
• The team analyses site and campaign performance and helps clients implement actions to improve conversion rates & sales
© IDM Academy 2008
The issue
• The new online marketing techniques have eclipsed DM because:– They are more measurable, – They are more flexible– They are more effective
• So is DM in terminal decline?– Costs are rising– Response is declining– It is not seen as a relevant media choice
© IDM Academy 2008
But is this scenario really true?
The lack of real understanding of how consumers use the web to research, decide and buy products, coupled with basic tracking errors, are causing marketing departments to make incorrect investment decisions
© IDM Academy 2008
In the beginning it was so easy!
Email campaign DM Campaign
Banner campaignSingle Access %
© IDM Academy 2008
The impact of an offline campaign
ResponseDM campaign
Email campaign
Affiliate
PPC campaigns
Natural search
DM will drive sales through other channels – why? Because that is how we all behave now!
© IDM Academy 2008
How campaigns really interact
OfflineCampaign 2
GoogleCampaign 3
Initial visit
Shopping visit
1. “Gary Lineker” value attributed to this click. It was the last click, so
is credited with the goal
2. This campaign generated the initial engagement, but no value attributed to it.
3. Engagement here is of real value, but it is not counted as a
success
Checkout
A SALE!
Online Campaign 1
© IDM Academy 2008
So what is really happening?
• DM boosts online channels– Raises response and effectiveness of other channels
• Response is often far greater than is measured by traditional techniques– And results are often misallocated and double counted
• Consumers take more than one visit before deciding to make a purchase in many instances and this confuses reporting
• Site is often the weakest link in converting Interest into Action – it fails to convert interest into action
© IDM Academy 2008
A Hypothesis
Demand Generation
Persuading people that a product is of interest and is something to consider
Offline media does this really well
Demand Harvesting
Funnel people who are “in the market” to your site to research, decide and buy
Most online media is great at doing this
© IDM Academy 2008
What should you do to better understand the role & impact of DM?
• Match-back & de-duplicate to understand campaign respondents– We mailed you, and you responded
• Web analytics to analyse people who engaged but did not respond – We mailed you, and you looked but did not
respond directly
© IDM Academy 2008
Match-back the respondent to the original mailing
ResponseDM campaign
Email campaign
Affiliate
PPC campaigns
Natural search
If a respondent’s address matches the mailed
address then REGARDLESS of channel
the DM campaign probably played a role
© IDM Academy 2008
Match-back: Capture online source to derive further insight
Customers ProspectsMailed 10000 10000Phone 145 74Post 15 9Web Direct 32 12Web Email 24 2Web PPC 48 31Web Natural search 32 14Web Affiliate 15 12Total 311 154Response rate 3.1% 1.5%
To do this you have to capture online campaign codes with the response form and analyse matched-back data
© IDM Academy 2008
Web Analytics: Segmentation is the key to insight from web analytics
• First time visitors– Have never been seen on
the website before
• Returning visitors– Have previously visited
the site
• Existing Customers– Have taken an action that
leads you to believe they are customers
• Brand navigators– Use your brand name to
find the site
• Generic term searchers – Looking for something, but
necessarily you
• Specific product searchers– Looking for your product
© IDM Academy 2008
Segmented data allows more insight
Each segment has its own pattern, due to the different campaigns
being run online & offline
When you have the correct segments properly configured you can start to
correlate with offline activity
© IDM Academy 2008
Segmentation exposes behaviour
Enormous behaviour differences through out
the entire customer journey are apparent for the Prospect segment
© IDM Academy 2008
To summarise
• DM / Online analysis: It is messy, complex and not well understood
• There is a need for businesses to look afresh at how they report on campaigns
• Match-back with added web data is the best solution for respondents
• Detailed web analytics work can show the engagement generated by DM campaigns