MRKT10028_Week13.ppt

MRKT10028 Web Marketing, Fall 2009Week #13Capturing & Keeping an AudienceTraffic Analysis & Measuring Success (ROI)

MRKT10028 Web Marketing, Fall 2009

Getting Visitors Interested Enough to Keep Them Coming BackIts not enough to drive traffic to your web site You have to keep customers (and potential customers) coming backOver 1/3 of companies have churn rates > 10%Churn rate is the number of customers that stop using a site/service or discontinue their association with a given brand during a given time periodThere is significant value in a returning site visitor even if s/he isnt generating revenue each visitIncreased site visits build consumer confidence and trust and ultimately lead to increased sales


E-Commerce EnvironmentsDevelopers of both B2C and B2B (e-commerce) sites consider two key measurements as an average of all users over time:Days to Purchase: the number of days that pass from a users first site visit to when they actually make a purchaseVisits To Purchase: the number of site visits a user makes before they make a purchaseObviously, the larger the purchase, the more days/visits the user will requireNew customer acquisition costs are generally 6 8 times higher than the cost of keeping an existing customerE.g., cost to acquire a new customer => $12; average sale per customer => nets $7 profit; net loss of $5 per customerCost to get the customer back => $2; average sale per customer => nets $7 profit; net gain of $5 per customerThe more a returning customer buys, the bigger the profit!


Web Retention & LoyaltyConsideration must be given to Driving traffic to the web siteKeeping customers engaged Getting them to come backRemember: you cant please all of the people all of the timeKnow your audience, their expectations and needs speak directly to themIncreasing brand loyalty online is the same as offlineProvide quality customer service, value, selectionSave them time and moneyImprove the overall experience


Features that Build LoyaltyCharts from Consumer Loyalty Survey, DoubleClick Performics, May 2007


FEATURE

% of Shoppers

Saving money

63%

Saving time

25%

Free shipping

25%

Inventory/selection

18%

Brands

16%

Customer service

15%

Past experience

11%

Rewards programs

11%

Ease of shopping

9%

FEATURE

% of Shoppers

Free or flat shipping

92%

Order tracking

88%

Privacy policies

83%

Rebates and coupons

76%

Online outlet

75%

Customer reviews

74%

Comparison capabilities

73%

Price and product alerts

63%

Live help

58%

In-store returns

58%

Express checkout

52%

How to guides

51%

Internet only specials

50%

Exclusives

49%

Wish lists

48%

Recently viewed items

46%

In-store pickup

37%

General Web Design ConsiderationsAttractive (visibly appealing) web site design gives users a sense that the site is established and professional, and that a solid, legitimate company is behind itQuality design geared specifically toward the target audience will help to establish brand personality through images, color and general layoutQuality design can also be used to emphasize specific messages and products that you want to highlightLike attractive design, the organization of the site plays a key role in bringing consumers backIt is essential that marketers take the time (before the site is developed) to map out the site, segment the content into categories that make sense, and consider how the navigation elements will lead visitors to find what they are looking forThis goes right back to information covered earlier in the course (Ch. 8)


New Content ConsiderationsNew site content is important to a site for a number of reasons:It tells site visitors that that the brand is in constant evolution, rather than growing stagnant.It generates curiosity and encourages users to come back often to see new changes.It gives the marketer a chance to send new messages regularly to repeat visitors.The frequency with which a site updates its content depends on two things:The ability of the sites marketers to create new content quickly (content can be difficult, time-consuming, and potentially expensive to create).The type of site in question (B2B sites, for example, do not need to be updated with new content as frequently as B2C, media and information sites).


New Content ConsiderationsRegardless of the frequency with which new content is added to a site, it is vital for marketers to maintain a regular schedule of updatesUpdating a site does not mean that an entire site needs to changeSmall updates are sometimes enough to get the point across that something new is going onAs sites add new content, they also need to delete old content, because information that is out of date or no longer relevant can deter users from returning to a siteContent is not the only part of a site that needs to be updatedGraphic design and artistic style evolve over time, and sites need to reflect these changes


Other Engagement OpportunitiesBlogsKeep them current, conversational, relevantVoting, Polls, SurveysStimulates future visits by heightening curiosity as to the results and/or drawing them closer to the brand by providing interactionVoting = make a choice between two or more itemsPolls = single questions; usually multiple choice styleSurveys = series of questions / opinionsContestsLure users in with the possibility of winning cash or prizesGet them to check back for resultsLoyalty ProgramsUsers receive points for purchases; encourages repeat buyingMust be easy to use, realistic, valuable (to consumer)Wish listsUsers keep a record of things they want; can buy later or send to family/friends (requires cookies!)


Benchmarking: Setting GoalsEvery marketing campaign and every web site is executed to achieve some pre-established goal(s)What are you trying to achieve?Clear objectives must be establishedFinancial (sales, ratios, profit)Non-financial (increased site traffic, click-throughs, paid and organic search results, engagement, etc.)Different components of a marketing campaign (e.g., e-mail blasts, Web sites, display ads, search, social networking, video, etc.) may all have different goalsSometimes the marketing goals are different from the web site goals


Marketing GoalsNew site traffic: introduce new visitors to the siteMeasured as either a whole number or a percentage increase of new visitors from a previous month, quarter, or yearReturning visitors: bring established visitors back to the siteMeasured as either a whole number or a percentage increase in returning visitors from a previous month, quarter, or yearDistribution of informationSuccess is measured by the amount of times a file , page, or piece of information is passed from one recipient to another, usually through social networking or e-mailPercentage of click-throughsPercentage of people who open an e-mail and click through to the Web site or who click on a paid search ad or display adTargeted regional audiences: increase audiences in specific geographic territoriesMeasured as either a whole number or a percentage increase of new visitors from a region from a previous month, quarter, or year


Web Site GoalsSales / RevenueE-commerce sites generally set goals based on sales, revenue and/or profitNumber of leads gainedB2B sites requires visitors to take action (by calling or e-mailing the company to request more information or to set up an exploratory meeting)Number of visitorsRecord of unique and/or return visitors (goal may be a specific number or % increase)Pages visitedSites typically want to maximize the number of pages viewed by each visitor and will set specific goals based on thisLength of time spent on the siteSimilarly, Web sites want to keep people on their site as long as possible


Web Site Goals (contd)Specific pages visitedMarketers often identify certain pages on a site that they most want users to visit (usually landing pages for a campaign)General brand buildingFor some sites, the goal may just be to increase brand recognition (generally requires pre-launch awareness surveys, followed by campaign follow-up measurement)Visitor registrationFor sites that want users to register as members or otherwise subscribe to the site, goals are set based on the number of participantsEngagementA goal may include how many people engage in social networking activities, loyalty programs, contests, surveys, etc.


Setting GoalsGoals need to be realistic (and whenever possible, numeric) in order to properly measure themThroughout the life of any marketing campaign, benchmarks should be analyzed regularly toward goals so that adjustments can be made as necessaryOnline campaigns are measured through electronic tools:Web server logs (basic)Analytics applications (such as Google Analytics or WebTrends)PPC and CPM measurement logs (provided by the site or organization you are working with)Other third-party reporting tools (Lyris, Omniture, etc.)NOTE: firms that provide web-based marketing and advertising campaigns for firms also provide tools for reporting on themCheck out the case studies provided on online LearningPlan and and/or review the case studies at iMediaConnection.com


Samples of Metrics Provided by Google AnalyticsThe Dashboard provides an overview of all measurements over a period (of one month)Free basic analysis is available; you must pay if you want your goals measured against metrics!


TimelineShows the activity of the site within a specified time periodA small dot shows how many visits were made to the site/dayUsers can change this to display any number of other analyticsShows whether or not there has been growth over time, when site usage is lowest, if there have been any spikes, etc.Useful for tracking traffic increase as a new campaign is rolled outAlso shows overview of site usage for the period


Site Usage/VisitorsProvides site traffic and visitor behaviour information can be broken down into hour, day, week, monthUnique visitorsNew vs. ReturningPageviewsAverage PageviewsAverage Time on SiteBounce RateYou can also view languages, browser, screen resolution, screen colour, operating systems, flash versions, java support, network properties, etc. under BrowsersSee page 442 in text


Map ViewThe map overlay breaks down users by geographic area, allowing site owners to mine location information down to the specific towns that visitors have come fromBased on IP addressingFor each region, data is provided that shows percentage of new visitors, average time on site, pages per visit, bounce rates, and more


Traffic SourcesTraffic sources allows you to see where people come from Direct (I.e., typing in the URL)Referring sites (clicking through from another site or ad)Search engineWhat keywords they usedSites participating in Googles AdWord campaigns can also view ROI information here


Issues with AnalyticsThe sheer volume of information provided by analytics reporting software can be overwhelmingIn order to make the most of web analytic / metrics data, you need to: Identify the metrics that are essential to reducing costs and increasing revenues. Track the metrics that are most important to achieving goals. Understand where and how metrics can be misleading and how that can result in poor marketing decisions. Analytics are tools they must be integrated and used together with all other marketing plan strategies


1. Which Metrics Do You Really Need?Establish a baseline calculate cost (for every element of your online marketing campaign) and yield (revenue) of every action on your siteDetermine the value of each interaction (what do you earn from a visit, sale, lead, etc.?)Calculate the end result: YPx CPxYPx is the yield (benefit) per interaction CPx is the cost per interaction x is the variable number representing the desired action (a visit, a click-through, a sale, a referral, a phone call, completing a lead form, a subscription, etc.)


Cost and YieldE.g., CPM ad campaign aimed at delivering 5 ads to 100,000 unique users a week => 500,000 impressionsGoal => to increase brand/site awareness / # of unique visitorsBased on an average click-through rate of .4%, you expect 400 unique visits per week to your siteCost is $20/CPM (1,000 impressions)=> $10,000/week Cost per interaction is $25YPx (0*x400) CPx (10,000/400) If, on the other hand, every one of those people bought a $30 item (at a $20 profit to you), the cost per interaction would be $5 => YPx (20) CPx (10,000/400)*if a user only clicks through and takes no action, the Yield is $0.00


2. Identify and Track the Metrics That Impact Cost/YieldLook at what metrics you can use to make improvements on cost and yieldWhat traffic sources provide the best ROI?How do you get more of that traffic? You can measure 4 things:The AMOUNT of activity on your site - page views, visitor sessions, returning visitors, etc. The SOURCE of the activity - referrers, search terms, languages, countries, organizations, etc. The NATURE of the activity - entry pages, exit pages, browsers, platforms, JavaScript versions, cookie support, screen resolutions, page refreshes, page load errors, average time per page, etc. The RESULTS of the activity - click trails, most requested pages, number of page views, signups, orders, etc. Remember, too, that this is INVALUABLE information not available in offline strategies!!!!


Organize & Analyze the ResultsThe results of this analysis can tell you what aspects of your web site and associated e-marketing campaign(s) are getting the hits and which areas may need revisiting and/or revising (or eliminating!)


Watch Out For Misleading InformationIssues can occur when data collection is unreliable for some reason. With CPM advertising you will often find a disparity between the click-through figures provided by the advertiser and those you find in your own log files or web site analytics tool.If you run PPC campaigns you may see differences between the search engine's click-through reporting and your own site stats.


Watch Out For Misleading InformationThere are several reasons why this might happen:Metrics programs (not server logs) sometimes cookie people and recount them when they revisit a page, but not when they come in via another method (a Google ad, for example).PPC programs sometimes put a time limit on counting visitorsThe same computer clicking on the same ad in a matter of a few seconds may appear as one visit, not two. However, if the user revisits later in the day it might be counted as multiple users/unique visitors, where server logs may not associate it that way. Server logs are sometimes not configured to capture all the information you need (mostly visits, pages views, errors) Certain ISPs cause users to have different IPs in a single session (called dynamic IP addressing this prevents users from being tracked from a set IP). This can cause tracking problems with both PPC and metrics programs.


How to Avoid IssuesTo ensure accurate metrics, follow these simple guidelines:Don't rely only on metrics from a (single) PPC engine or any other third-party provider. Always use a back-up web analytics solution to verify the data. Choose an appropriate tracking solution based on your site technology. Run and compare results from tracking solutions built on different technologies. (For instance, compare your log file analyzers vs. a JavaScript solution) Measure hard data (I.e., number of e-sales) against metrics providedIn spite of enormous advances in all areas of online technology, at this time there is no single service, product or solution that can be relied upon to give you totally reliable metrics. By using two or three different solutions, you can compare results and at least identify where you have problems.


Integrated Online MarketingIntegrated Marketing means giving marketing decision-makers an end-to end view of the entire marketing process (online AND offline) and providing insight into which campaigns and tactics actually drive the highest return on investment.In practical terms, this means:Taking an integrated creative approach, in which the message is the same across all of the possible marketing channelsIntegrating sales and marketing processes to soften the lines currently separating the various marketing specialtiesIntegrating the numerous marketing technologies that different types of marketing campaigns use (these systems are the key to calculating and improving ROI)Methodically measuring success, which entails turning marketing metrics into business metrics that guide budget and resource-allocation decisions.


Integrated Online Marketing: Why?Integration reaps big rewards where it matters most: Increased sales / revenues, profitsHigher conversions (leads into sales)A larger return from the marketing spendsThe desire to integrate is a natural outgrowth of the increasingly central role that online-marketing channels play in companies overall marketing programsBusinesses that dont integrate are finding themselves at a competitive disadvantageFirms must get past the barriers to integration (silo marketing functions that dont typically interact, data thats housed in multiple tools and owned by different functions, difficulty measuring ROI for multi-channel marketing programs) in order to reap the rewards of fully integrated marketing campaigns


HomeworkRead Chapter 12 (Capturing and Keeping an Audience) and 13 (Traffic Analysis and Measuring Success) plus Appendix A (Analyzing Site Traffic) AND the two pdf documents in the Required Readings column (one on Analytics & Metrics for ROI, the other on Integration); you might also want to review the two recommended readings on the LearningPlan (7 Web Analytics Sins from Lyris, and IAB Canadas Campaign Measurement and Optimization document)Review ALL the content covered in the second half of the course (check the online LearningPlan for details), and ensure you fully understand the purpose, intent and context (I.e., the VALUE) of this course AS A WHOLE to your future as a marketerMake sure you can answer ALL the questions on the Final Exam Review documentFinal exam is subjective questions, point form (same as the mid-term)You will NOT have access to computers for keying your answers bring a supply of pens, pencils (and pencil sharpeners and erasers), etc.Paper will be providedFinal exam is worth 25% of your overall grade in this courseCome well rested, well fed, and well prepared


Documents

MRKT10028_Week13.ppt