Home >Documents >Coremetrics web2 0 white paper

Coremetrics web2 0 white paper

Date post:14-Oct-2014
Category:
View:1,003 times
Download:1 times
Share this document with a friend
Description:
Winning in a Web 2.0 World:Metrics-Driven Success
Transcript:

Winning in a Web 2.0 World: Metrics-Driven SuccessWHlTE PAPER 1WHITE PAPERWinning in a Web 2.0 World:Metrics-Driven SuccessTable of ContentsExecutive Summary 4What is Web 2.0? 4Measuring Web 2.0 4How are my customers moving to Web 2.0? 5What are the business applications of Web 2.0 technologies? 5Where should I invest my marketing dollars? 7LIVE Profles in action 8Summary 10Web 2.0 at a glance 11Winning in a Web 2.0 World: Metrics-Driven SuccessWHlTE PAPER 4Executive SummaryWeb 2.0. You cant turn around without hearing this buzzword. What is Web 2.0? And what does it mean to you?The term Web 2.0 encompasses multiple trends and many different technologies. For marketers, the underlying issue is that consumers are becoming more sophisticated, engaging in longer term relationships, and maintaining greater control over their online experiences. Not only is your relationship with site visitors becoming more complex, but Web 2.0 adds a host of new options (RSS, blogs, Ajax, etc.) to an already long list of options (email, banner ads, affliates, etc.) as to where to spend your marketing dollars. To make sure you spend your marketing dollars where they will have the greatest impact, you need a scientifc approach to marketing. Web 2.0 technologies must be measured based on the business value they create for you, and evaluated against all your other alternatives. To make the right marketing decision, you need the right datadata about how your investments are helping maximize the value of every customer relationship and improve your bottom line. In this white paper, we will discuss various Web 2.0 trends and technologies, and we will explore how organizations are using these technologies to drive business results. What is Web 2.0?Web 2.0 is simply a phase in the evolution of the World Wide Web. The overarching characteristic of this phase is that the Web is no longer simply about information, it is now about interaction. There are new and existing technologies associated with Web 2.0from blogs to social networks to AJAX. These technologies enable consumers to interact with your company and other consumers, participate in and infuence discussions, and control their experience. What does this all mean to your business? Consumers are now better equipped, and accustomed to more interactive relationships, sustained over a longer period of time. As options for communicating with consumers expand, companies have an increasingly diffcult task of determining where to invest their scarce resources. To make the best investment decisions, you need a measurement strategy and solution that enables you to track and monitor the business impact of Web 2.0, particularly as it relates to your traditional digital marketing investments. Web analytics is of course not new, but there are new requirements for measuring in the Web 2.0 world. Companies that are able to effectively measure all their web interactions with visitorswhether Web 2.0 or traditional webwill enjoy a competitive advantage. While the value of measuring unique visitors (as opposed simply to clicks and visits) has always been important, the Web 2.0 paradigm accentuates this importance. Winning in a Web 2.0 world means that you need to measure and value engagement with your consumers. It is no longer about conversion at a point in time. It is now about the nature of the relationship over time, and the many ways that an individual can add value to your business.Measuring Web 2.0This white paper focuses specifcally on the nuances of measuring Web 2.0 technologies. It is not intended to be a comprehensive resource book on Web 2.0, but rather a guide to the new Winning in a Web 2.0 World: Metrics-Driven SuccessWHlTE PAPER 5measurements required to evaluate those areas of Web 2.0 that create opportunities for businesses to leapfrog their competition.Analysis is fundamentally about answering questions, and there are several unique questions businesses need to understand as they embark on utilizing Web 2.0 technologies: How are my customers moving to the Web 2.0 paradigm? What indicators tell me it makes sense to adopt these technologies? Does my target market participate in blogs? Do I service a demographic that actively consumes streaming media and podcasts? What are the business applications of Web 2.0 technologies? How do I know when my use of these new technologies is successful, and how do they compare to other opportunities? In other words, where should I invest my marketing dollars? How are my customers moving to Web 2.0?The frst question you need to consider is how Web 2.0 technologies are being adopted by your customer base. Are your customers likely to participate in user-generated content? Will your site visitors read and comment on blogs? Will they share their views in user reviews? If your target audience is loyal and passionate about your company, providing them an opportunity to share their views can be extremely valuable, enabling them to infuence others. Do your users have a special skill or knowledge that relates to your product or service? If so, wikis and forums are a great way for them to contribute to the body of knowledge around your products and services, enriching their experience and that of others. Are your customers likely to be comfortable with rich internet applications that function somewhat differently from those to which they are accustomed? Is your user base change averse? The more accepting of change your audience is, the more rapidly you can adopt Web 2.0 technologies. Have your competitors deployed leading technologies? If so, you may want to escalate your adoption of Web 2.0. Do your customers frequent sites that have leading edge technologies? A positive response indicates that your customers are ready to accept Web 2.0 technologies. Do you serve a technically savvy group of customers? If your target market readily adapts the latest technologies, Web 2.0 technologies are likely an excellent way to invest your resources. If your customers are slow adopters, consider waiting until they are farther along in the adoption curve.What are the business applications of Web 2.0 technologies? There are a number of technologies associated with Web 2.0 that enable interaction, participation and consumer control over their experience. Web 2.0 technologies serve three key functions: Enabling users to develop content Providing new means to reach a target audience Providing richer, more interactive applications that give visitors more control.Each of these capabilities and its associated technologies provide different value to companies, and each needs to be measured and tracked in its own way. However, they share common characteristics that drive the need for new measurement strategies. Winning in a Web 2.0 World: Metrics-Driven SuccessWHlTE PAPER 6Opportunity for visitors to contribute contentA number of Web 2.0 technologies enable visitors to contribute content on your site. These include user reviews, blogs, wikis and forums. The word of mouth concept is well understood and has always been considered to be a reliable and trusted source of information about a product or service. The Internet, and especially new Web 2.0 technologies, has extended word of mouth into word of mouse, whereby a single individual can reach a much larger number of people, including people they do not personally know. As you adopt technologies that invite user-generated content, it is important to understand who is viewing that content, and how it infuences visitor behavior. Moreover, it is important to identify the content contributors, and which ones are infuencing other site visitors.User reviews are an excellent way for companies to engage their clients in dialogue. PETCO deployed user reviews and has realized tremendous business advantages. After deploying user reviews, PETCO created navigation that allowed visitors to drill into top rated products. They found that visitors who chose the top rated product navigation path converted at a higher rate than other browsers. In fact, PETCO found that they converted 10% higher within a session, and 49% higher when shopping over multiple sessions. (Source: Bazaarvoice, Ratings, Reviews and ROI: How Leading Retailers Use Customer Word of Mouth in Marketing and Merchandising)User-generated content, and in particular user reviews, has signifcant impact on other marketing activities. Businesses have found that utilizing the content in other marketing channelssuch as emailhas increased conversion rates. Furthermore, user-generated content can have a tremendous impact on natural search. For example, after deploying user reviews, CompUSA they saw a dramatic increase in traffc coming from natural search. All the product reviews provided additional content to be indexed thereby increasing natural search listings. Interestingly, CompUSA discovered that this traffc was particularly valuable in that they purchased higher price items (43% higher average item price) and spent more per order (50% higher average order value) than visitors from other sources. (Source: Bazaarvoice, Ratings, Reviews and ROI: How Leading Retailers Use Customer Word of Mouth in Marketing and Merchandising)Finally, consumers who provide content represent a high value segment. Providing these individuals with a measurable environment in which to contribute content affords companies the ability to identify the top contributors, and to ensure that they are treated according to the value they provide. In a recent study, Yahoo! defned a group of people known as brand advocates, who are typically: Well-connected consumers with a larger sphere of infuence Avid researchers who consider multiple brands, making them more open to dialogue with marketers Committed to a brand once they purchase Likely to recommend brands, and who tend to talk about positive experiences Opinion leadersinfuencing other peoples purchase decisions.By focusing on

Popular Tags:

Click here to load reader

Embed Size (px)
Recommended