Channels & MetricsAndy Lima Leading360

Today’s workshop

• We will work together through interactive discussions and tasks.

• We aim to improve our understanding of the digital environment and how we can support sales and overall customer engagement.

• Our ultimate aim is to contribute to our bottom line.

• Develop a leadership mind-set and attitude.

• Teamwork when developing the channel strategy.

• Keep focused on customers.

• Must always monitor competition.

Key Questions: (t)

• What are we trying to achieve?

• Where are we now?

• What is preventing us from getting there?

• What do we have to do?

• How will we measure the effectiveness of our strategy?

What are we trying to achieve?

• Improve competitive advantage;

• Increase market share;

• Operational Excellence;

• Product Leadership;

• Fine tune offers of product and services;

• Costumer Loyalty;

• Reduce operational cost and increase profitability;

• Sustainability

Steps to effective digital engagement

Step 4: Implement & Monitor

Step 3: Decide on key metrics

Step 2: Define Channels

Step 1: Choose Goals and KPIs• Based on your current growth goals

you will have to choose Key Performance Indicators.

• Which channels will be used and how will they be used to achieve your goals.

• Decide the metrics to be used through the customer journey and each stage of customers interaction.

• Implement your channel strategy monitoring every step of the way. Automate whenever possible.

ChannelsDecide which are the best channels to achieve your goals and how to integrate them

Channel Engagement

• Build Personas;

• Define your conversions goals;

• Build your inbound marketing capabilities;

• Integrate sales channels with social media;

• Link channels with you CRM / e-CRM / Social-CRM;

• Link with Analytics and Data Base;

• Create a marketing information system (MKIS).

Content, Context & Conversion

Stages in the Online Customer Journey

Online Behaviour

• Social Behaviour;

• Preferred media;

• Interests;

• Sentiment;

• Frequency of Interest;

• Level of influence;

• Groups and Communities;

Channels start and finish with… (t)

People

• Who are they?

Customers

• Who are they?

In your online and off-line Channels you must…

• Engage in meaningful conversations;

• Enhance business presence;

• Build collective interest;

• Create leadership by growing reputation;

• Determine standards of behaviour;

• Understand the level of participation;

• Sell To and through, build confidence.

Types of

customer Journeythrough various

channels

Channels you are currently using to engage… (t)

• Design specific customer journey for your personas;

• What are the channels you are currently using?

• How are you using those channels and currently measuring its success?

• Who are responsible for those channels – levels or responsibility (i.e. posting, engaging, monitoring, replying, gather data…)

• Can you identify the success of each individual channel?

• Are they integrated with off-line activities and other areas of the business?

MetricsUnderstand how data analysis and metrics can improve your bottom line

What is it? Why do we need to use it? Where do we use them? How?

…How can it help the organisation?

Marketing Metrics (d)

What do we want from it? Who is going to read them?

What does your data say?

Key questions to address…

What are the most important marketing metrics to use?

How can I measure my various marketing programs’ impact on revenue

and profit?

How can I best communicate marketing results with my executive team

and board?

Which personnel, procedural and cultural changes need to occur within my

organisation so I can implement marketing measurement?

Do you have the answers to some of these questions?

Planning for Marketing & Sales ROI

Metrics improve

decision-making

Marketing Metrics…

• Helps to understand customers behaviour.

• Inform marketing activities.

• Improve decision-making and marketing efficiency.

• Help marketers to demonstrate marketing impact on overall business activities.

• Justify future investment in profitable marketing channels.

• Win credibility within the board of directors as well as gathering support from within the organisation.

• Help increase ROMI fostering organizational growth and increased competitiveness.

Things to have in mind…

• Measure all the critical metrics;

• Metrics should meet standard business criteria – they must be reliable, valid, responsive, clear and relevant;

• Communicate a limited number of relevant metrics – less is more!

• It has to respond to something that is statistically significant.

• Effectiveness over efficiency.

Metrics should help the organisation…

• Identify strategic significant customers;

• High future lifetime value customers;

• High volume customers;

• Benchmark customers;

• Reward loyal customers;

Integrating Channels and Metrics

• Integrated tools for social media, digital marketing and metrics.

• Listening, engaging, collecting data in real-time on interaction.

• Trend towards holistic analytics.

• Recognise the contribution made by offline marketing activity.

• Help marketers to understand the online customer journey leading to offline engagement and sales.

• Wider understanding and better decision-making leading to more integration and of activities and metrics.

Major areas of Marketing Metrics

• Market and Brand metrics;

• Customer metrics;

• Channel metrics;

• Profitability metrics;

• Product and portfolio metrics;

• Pricing metrics;

• Promotion metrics;

• Digital metrics.

other metrics….

Market and Brand Metrics

• Market performance measures company’s market position in relation to its competitors, its customers and overall performance.

• Database: all contact and communication details about customers and prospects, also website visits and email clicks details.

• Market Share – volume of sales in units of monetary value.

• Relative market share – positioning and brand building.

• Market growth – compare sales from previous years for better forecasting and strategic decision making.

• Market Penetration – Potential for Growth.

Channel and Distribution Metrics

• Average transaction size/value – from both intermediary and customers. Measure average financial value.

• Average items per transaction – gives marketers a good grasp of customers’ purchasing habits.

• Inventory Turnover – too little customers happy, too much CFO unhappy… build to optimum level. How quick is sold and replaced.

• Sales per unit of floor area – efficiency in using expensive retail space.

• Intermediary Margin Percentage – difference in price paid.

Pricing Metrics

• Sales price Variation – difference between actual price charged and the recommended price for each unit. Common in B2B.

• Profit Impact – cash contribution per unit at different projected levels of sales. It ensures that an optimum pricing is set.

• Price Premium (AKA Brand Premium) - additional amount customers are willing to pay for a branded product over an weaker or commodity product.

• Price Elasticity of Demand – how responsive demand is to change in price. Determine by availability of substitutes or uniqueness.

Promotional and Media Metrics

• Share of voice – how much was spent in a promotion of a product against overall product category expenditure in the marketplace.

• Recall – Test of overall brand awareness or advertising impact. top of mind (first brand to mind) and dominance (only brand recalled).

• Recognition – related to recall and assessed through research.

• Response rate – number of people responding to an advert, promotional message or an advert.

• Conversion Rate – from enquires and order, key to successful marketing.

• Redemption Rates – direct result of the activity, ex percentage of coupons redeemed.

• Reach – (# or %) people reached by an advertisement or promotional campaign over a period of time. (Exposure – opportunity to see or hear).

Digital Metrics

• Page impressions – measures number of visitors to a website.

• Total clicks – communication and engagement leading to visit website or landing page.

• Cost per order – values of order generated against the cost of promotional cost to generate them.

• Cost per click – visits to the website against the advertising cost to encourage them.

• Social media activity –a number of activities can be measured depending on the platform used.

• Bounce Rate – Key metric for marketers, content of the web doesn’t meet customer requirements.

• Downloads - important metric of engagement.

Seven Steps to Data Monitoring and metrics collection

• Set up a new flow / map / targets / KPI’s;

• Listen;

• Mine;

• Analyse;

• Interpret;

• Benchmark;

• Tweak , change and improve.

What Kind of KPIs?

• Engagement or revenue? Conversion or visits?

• Revenue and conversion: Conversion rate (basket-to-order and visit-to-order),

• Average order value or Revenue.

• Traffic: Total visits, Unique visitors and new vs. return visits.

• Engagement: dwell time (time on site), pages per visit, bounce rate, social shares, comments and ‘likes’ (including ‘favouriting’ individual content assets), product reviews, banner click-through rate.

• Offline: visits to store (hard to track accurately), in-store purchases, in-store content usage (e.g. scanning a QR code for a product to watch a video), call tracking.

Digital Marketing Tools (t)

• CRM

• Monitor Social Media

• Identify Social Influencers

• Analytics

• Web Testing

• Heat Map

• Marketing Automation Software

Metrics and Automation

What is Marketing Automation?

“Marketing automation enables business to automate customer

communication activities as part of the marketing and sales process. The use

of marketing automations services makes new, more sophisticated process and

relevant communication and experiences possible across a range of touch-

points across the customer life-cycle. More relevant contextual experiences

and offers promise an increase in return-on-investment from customer

communications and increased efficiency in marketing teams with time savings

from manual campaign activities” – Van Rijn and Chaffey (2014)

Plan and analyse automated campaigns

• Email: email personalisation, real-time triggered email based on actions taken by customers or prospects, dynamic content and responses.

• Database: all contact and communication details about customers and prospects, also website visits and email clicks details.

• Lead capture, management and nurturing integrated with offline activity.

• Automated sales alerts and tasks.

• Programme management: manage multiple channel marketing campaigns and programmes including online advertising, video, mobile and social media.

Product Portfolio Metrics

• Usage – has to take into consideration price, cost of usage, maintenance, and implementation of the product or service.

• Marketing cost per Unit – marketing expense divided by sales volume. Product life-cycle shows higher costs at early stages of product launch.

• New product adoption rate/percentage of total sales represented by new products – strategies to maximise product life-cycle.

• Cannibalisation rates – sales of new products stealing from existing ones

Steps to effective digital engagement (t)

Step 4: Implement & Monitor

Step 3: Decide on key metrics

Step 2: Define Channels

Step 1: Choose Goals and KPIs• Based on your current growth goals

you will have to choose Key Performance Indicators.

• Which channels will be used and how will they be used to achieve your goals.

• Decide the metrics to be used through the customer journey and each stage of customers interaction.

• Implement your channel strategy monitoring every step of the way. Automate whenever possible.

Tasks

• Look at how metrics are used in your organisation and identify the benefits and limitations of their use. If metrics are not currently used, what benefits could the organisation derive from using them?

• Investigate the potential platforms and software available for integrating metrics and analyse the options to determine the most suitable one/s to use within your organisation.

• Create a table to analyse the credibility, reliability, validity and value of the data sources you currently use, or might potentially use, in your organisation.

Thank you!

@andylimauk