ISDI MDA Master Class November_2015

transcript

Jacques Warren, CEO

MDA MASTER CLASS – Madrid 2015-11-19

DIGITAL ANALYTICS FUNDAMENTALSCONCEPTS, METHODLOGIES, KPI

AGENDA- Positioning Digital Analytics (well, all

Analytics)- Some concepts- Practical cases and exercises- Some more concepts- Test- Many more concepts- Making the case for optimization- Then I let you go

DIGITAL DATA AND ANALYTICS

Business Without Analytics

Business With

AnalyticsAnalytics Added Value

THE PURPOSE OF ANALYTICS

Noise Signal Decision

Data Insight Action

THE PURPOSE OF ANALYTICS

Source: Éric Nguyen, Banque Nationale

“The world in our heads is not a precise replica of reality (…)”

Daniel Khaneman

DATA AND REALITY

“The world in [our data] is not a precise replica of reality (…)”

Paraphrased by me

What is Analysis?

DATA ARE FOOTPRINTS…

HISTORICAL DATA AND TRENDS

Outliers are not the enemy

Visit Attributes

Visitor Attributes

Customer Attributes

DIGITAL ANALYTICS PLANES

A TOOL PERSISTENT MODEL

DIGITAL ANALYTICS FUNDAMENTALS

A SIMPLE MODEL

INPUT OUTPUTOFFER

2X 2X1.2X1X ANALYTICS

A SIMPLE MODEL

Digital ContentTRAFFIC

Search

Banners

Referrals

Usability

Emails

Testing

Perform

RESULTS

A SIMPLE MODEL – DIGITAL VERSUS WHAT?

REALM OF CRO REALM OF CRM

DIGITAL ANALYTICS

DATABASE ANALYTICS

DIGITAL CONTENT

% New Customers

% of Subscription

Pageviews/SessionUnits/Orders

% Satisfied Clients

% Sales to New Visitors % Downloads

Subscribers RSS

% Email Sales

Conversion Rate

SEM Ratio

AOV/Campaign

% Web Sales/Total Sales

Sales/Session

LOOKING FOR THE RIGHT METRICS

DEFUSING SOME MYTHS

- TRAFFIC – Not THAT important

- CONVERSION RATE – Beware of blind optimization

- CONTENT IS KING – Nope, processes are

- WHAT ARE YOURS?

A LITTLE BREAK FROM CONCEPTS

Look at products

Shopping Cart Page

Order Form

ORDERS

CASE #1

CASE #2

Bla bla bla bla bla bla bla bla bla bla bla bla bla bla bla bla

I WANT IT

FORM – Sept 1

Destination

Trip Worth

Continue

10% of 10% = 1,2M$

CASE #3

OPENING HOUR PAGE VISITS AND MUSEUM ENTRNCES

OPENING HOUR PAGE VISITS MUSEUM ENTRANCES

KEY PERFORMANCE INDICATORS

SOME DEFINITIONS

Measures the evaluate the quality of an organization’s performance in its execution of strategic activities for its present and future success.

Applied to Digital, KPIs tell us if the digital strategic vision is executed well.

KPI CHARACTERISTICS- Align with the online strategy, itself aligned with the

business one;

- Motivate action;

- Allow for prediction;- Be standardized;- Be displayed in context (targets, tolerance

threshold, etc.).

MORE THAN METRICS

KPIs are a some kind of language; how we talk about the business.KPIs must be the results of a consensus.

A PROPOSED METHODLOGY

- Reaffirm the digital strategy;- Define and list the expected outputs;- Document and reconfirm consensus;- Validate data quality and availability;

KPI WORKSHOP & PROCESS

- Decide how results will be communicated.

KPI & DRIVERS

EXAMPLES OF THAT TYPE OF WORKDOCUMENT

EXAMPLES OF THAT TYPE OF WORK

WHERE YOU WORK

AN ANOTHER LITTLE BREAK FROM CONCEPTS

January February March April May June July August September October November December0

Transactions

Visites

75 74 706560

1,2451,250

1,010986

650725

ÉVOLUTION DES TRANSACTIONSMeasure Names

TransactionsVisites

TEST KWANTYX

0%2%4%6%8%

10%12%14%16%18%20%

TAUX DE CONVERSION

TEST KWANTYXDate

January February March April May June July August September October November December0

Nouveaux Clients

Total Clients

ÉVOLUTION BASE DE CLIENTSMeasure Names

Nouveaux ClientsTotal Clients

TEST KWANTYX

SEGMENTATION

ATTEMPTING A DEFINITION

- Subdividing a dataset to identify smaller populations with meaningful behavior.

- Segmentation is at the heart of the analysis process. It tells us about possible causes of behavior, and where/how to influence them.

- Segmentation is to the analyst what dissection is to the physician

SEGMENTING WHAT?

- Segmenting by behavior types or attributes.

- Segmentation Levels: traffic, visitors/users, customer file

LOOKING THROUGH DIEFFERENT ANGLES

Basic Digital Analytics Segmentation - Sources

WHO IS THERE TO DO WHAT?

The Importance of Use-Case (Gary Angel’s great contribution)

Three principles are the foundations of the two-tiered segmentation approach:

Its about understanding the buyer/visitor, not measuring the activity on the website;

Intention drives visitor behaviour, so we can reconstruct intention from sequences of actions;

Once we have established the visitor’s intention, we can then determine whether they were successful or not in accomplishing their task

WHO IS THERE TO DO WHAT?

We aim to determine WHO the visitor is and WHAT they are trying to do.

With these elements, we build use cases. With use cases, it then makes sense to segment KPIs.

TOWARD THE TWO-TIERED SEGMENTATION

Web Site Usage Segments (KWANTYX’s Client)- Information Seeking Prospects- Advanced Prospects – Ready to Convert- Clients Managing Their Account- Clients Adding Services- Job Seekers- Others

DIGITAL ANALYTICS CONTEXT

Measuring Marketing is measuring people who do marketing.

METRICS ARE POLITICS

I’M RIGHT!!

METRICS ARE POLITICS

CAN YOU HANDLE THE TRUTH?

THE ILLUSION OF TRUTH

ANALYTICS GOVERNANCE

Source: Gary Angel, EY

WELL, TALK ABOUT A PROGRAM!

OPTIMIZATION

DOES DIGITAL ANALYTICS WORK?

Isn’t optimization the whole purpose of Digital Analytics?

WHAT IS OPTIMIZATIONhttps://www.youtube.com/watch?v=BzLSTpaZkrI

Go watch that video. Watch it up to the end, and see what 63 years of optimization could do. Show it to your team next time they say you can’t squeeze any more value. Remember: the 1950 people were at the top of their game…

Measure everything you do,

THE OUTTER LIMITS

Measure everything you do, but don’t do only what you measure.

THE OUTTER LIMITS

ISDI MDA Master Class November_2015

Data & Analytics