Connect with us

MARKETING

Everything is measurable in marketing

Published

on

Everything is measurable in marketing

One of the most frequent cliches in marketing analytics is that there are things that simply can’t be measured. People will say, “Well, you can’t measure some stuff. It’s intangible. There’s no way to measure branding, the impact of public relations or any more complex forms of measurement.”

To which I say: That is patently untrue, completely false.

Everything in marketing is measurable, from top to bottom, from brand to customer satisfaction to purchases — you can measure 100% of marketing. People mean that not everything in marketing can be measured because they don’t have the budget and resources to measure what they care about.

They can’t measure using the resources available to them, whether time, personnel, hard dollars, or organizational skills. Some organizational constraints prohibit them from measuring effectively, but those constraints are not the same as saying something can’t be measured.

So, let’s clarify these two questions about any given metric to be measured.

First, is it worth measuring or not? If the answer is yes, but only up to a certain point because of resource constraints —and those resource constraints prevent you from a complete measurement — then the actual answer is no. Your organization has decided that it’s not worth measuring that metric to the level of investment needed, no matter how important we think it is as marketers.

For example, something like brand strength is measurable, but it’s expensive to measure. As a result, people will say, “You can’t measure the strength of a brand.” That’s untrue — brand strength is measurable, but companies are unwilling to invest the time, money and people needed to measure brand strength effectively.

The second question we have to ask is whether we can collect the data needed to measure effectively. The further up the marketing operations funnel, the more challenging measurement becomes from a data availability perspective. Revenue? Sales? Those are metrics the CFO can provide, and they’re as certain as anything in business can be. We have total control over those systems and the ability to measure them thoroughly.


Get the daily newsletter digital marketers rely on.


Online and offline measurement

Marketing automation makes it straightforward to measure sales qualified leads and marketing qualified leads. Further up, we have digital traffic, which is also relatively easy to measure — web analytics, individual channel analytics like Facebook, LinkedIn, YouTube, etc. These systems provide robust data that tells us what’s happening on those channels.

Offline traffic is where we start seeing resource and financial costs begin to escalate. Things like foot traffic in stores need hardware like foot counters, cameras, aisle counters, even technologies like beacons and WiFi triangulation — but it’s still measurable. For other out-of-home and offline measurements, there are hybrid response tracking methods.

For example, when you send someone a piece of direct mail, there should be a unique, tagged URL and a custom phone number tied to that piece which allows you to measure its performance. This is another area where underinvestment causes problems; offline direct marketing is measurable but has higher costs. If you send out a postcard with AcmeMarketing.com and no other form of tracking URL, you’ll be unable to measure the impact of that piece because there’s no tracking to disambiguate it from other traffic sources.

The same is true of channels like terrestrial radio. If a radio host says, “Go visit AcmeMarketing.com,” you’ll have unattributed traffic, the origin of which you can’t determine. Compare that with the radio host saying, “Go visit AcmeMarketing.com/spotify” or “Go visit AcmeMarketing.com/KNBC,” you’ll get trackable responses. It won’t be perfect; some people will remember AcmeMarketing.com and nothing else, but it’s substantially better than nothing (especially if it’s tied to a promotion).

Let’s talk about brand next — brand awareness and brand strength. This is the layer of marketing where things like awareness spending, brand campaigns, and public relations operate, and it’s the layer that people often say can’t be measured. The reason, of course, is that measuring brand strength is very expensive compared to other metrics.

There are a few metrics around brand strength: low-cost digital metrics such as branded organic search – when customers search for our companies, products, and services by name. Still, otherwise, brand strength requires classical market research techniques.

These are techniques like focus groups, one-on-one interviews with current and prospective customers, customer shadowing — when researchers accompany customers in their homes and offices to observe their behaviors and see how they make decisions.

Other techniques include surveys and panels, incredibly powerful methods for measuring brand strength by asking people, “What is your intent to purchase a blender in the next 90 days?” or “Was your intent to purchase a firewall in the next 90 days?”

Why is market research so expensive? First, you must conduct enough research to obtain a statistically relevant sample size. Second, particularly for B2B marketing or complex sales, if the decision-makers are senior folks in their organizations, it may take considerable time and expenses to reach them. You’ll be springing for many steak dinners and rounds of golf to get in touch with them.

Again, this doesn’t mean your brand is unmeasurable with that specific audience — it just means your organization may be unwilling or unable to invest to the level necessary to obtain the information.

Read next: How marketers can measure success

The value of measurement

Data analysis is the final hurdle that leads people to say, “X can’t be measured in marketing.” The data needs to be brought together and transformed into a single model, typically an attribution model. This is the domain of techniques and disciplines like exploratory data analysis, data science, statistics and machine learning. We take all these data points and inputs and then transform them into a coherent model with sophisticated techniques like uplift modeling, propensity scoring, and multiple regression to determine what works.

So, to review: a metric is strategic if an organization provides the time, people, and funding to measure it. If the organization does not, then it’s not a strategic measure. That doesn’t mean it can’t be measured — it means the organization doesn’t value it enough to measure it.

Everything in marketing is measurable, but executives and stakeholders must commit the time, people and resources to measure what they ask for. If they don’t, then it’s our obligation as marketers to push back on them and ask for the resources to measure it properly — and tell them when they’ve underinvested and thus no valid measurement is available.

Marketing attribution and predictive analytics: A snapshot

What it is. Marketing attribution and predictive analytics platforms are software that employ sophisticated statistical modeling and machine learning to evaluate the impact of each marketing touch a buyer encounters along a purchase journey across all channels, with the goal of helping marketers allocate future spending. Platforms with predictive analytics capabilities also use data, statistical algorithms and machine learning to predict future outcomes based on historical data and scenario building.

Why it’s hot today. Many marketers know roughly half their media spend is wasted, but few are aware of which half that is. And with tight budgets due to the economic uncertainty brought about by the COVID-19 pandemic, companies are seeking to rid themselves of waste.

Attribution challenges. Buyers are using more channels and devices in their purchase journeys than ever before. The lack of attributive modeling and analytics makes it even more difficult to help them along the way.

Marketers continuing to use traditional channels find this challenge magnified. The advent of digital privacy regulations has also led to the disappearance of third-party cookies, one of marketers’ most useful data sources.

Marketing attribution and predictive analytics platforms can help marketers tackle these challenges. They give professionals more information about their buyers and help them get a better handle on the issue of budget waste.

Read Next: What do marketing attribution and predictive analytics tools do?


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


About The Author

Christopher S. Penn is an authority on analytics, digital marketing, marketing technology, data science, and machine learning. A recognized thought leader, best-selling author, and keynote speaker, he has shaped five key fields in the marketing industry: Google Analytics adoption, data-driven marketing and PR, modern email marketing, marketing data science, and artificial intelligence/machine learning in marketing. As co-founder and Chief Data Scientist of Trust Insights, he is responsible for the creation of products and services, creation and maintenance of all code and intellectual property, technology and marketing strategy, brand awareness, and research & development.
Penn is a 2020, three-time IBM Champion in IBM Analytics, a Brand24 Top 100 Digital Marketer, an Onalytica Top 100 AI in Marketing influencer, and co-host of the award-winning Marketing Over Coffee marketing podcast. Prior to co-founding Trust Insights, he built the marketing for a series of startups with a 100% successful exit rate in the financial services, SaaS software, and public relations industries. His work has served brands such as Twitter, T-Mobile, Citrix Systems, GoDaddy, AAA, McDonald’s, and many others.
Penn is an IBM Watson Machine Learning Certified Professional, a Google Analytics Certified Professional, a Google Ads Certified Professional, a Google Digital Sales Certified Professional, and a Hubspot Inbound Certified Professional. He is the author of over two dozen marketing books including bestsellers such as AI for Marketers: A Primer and Introduction, Marketing White Belt: Basics for the Digital Marketer, Marketing Red Belt: Connecting With Your Creative Mind, and Marketing Blue Belt: From Data Zero to Marketing Hero, and Leading Innovation.


Source link

MARKETING

45 Free Content Writing Tools to Love [for Writing, Editing & Content Creation]

Published

on

45 Free Content Writing Tools to Love [for Writing, Editing & Content Creation]

Creating content isn’t always a walk in the park. (In fact, it can sometimes feel more like trying to swim against the current.)

While other parts of business and marketing are becoming increasingly automated, content creation is still a very manual job. (more…)

Continue Reading

MARKETING

How data clean rooms might help keep the internet open

Published

on

How data clean rooms might help keep the internet open

Are data clean rooms the solution to what IAB CEO David Cohen has called the “slow-motion train wreck” of addressability? Voices at the IAB will tell you that they have a big role to play.

“The issue with addressability is that once cookies go away, and with the loss of identifiers, about 80% of the addressable market will become unknown audiences which is why there is a need for privacy-centric consent and a better consent-value exchange,” said Jeffrey Bustos, VP, measurement, addressability and data at the IAB.

“Everyone’s talking about first-party data, and it is very valuable,” he explained, “but most publishers who don’t have sign-on, they have about 3 to 10% of their readership’s first-party data.” First-party data, from the perspective of advertisers who want to reach relevant and audiences, and publishers who want to offer valuable inventory, just isn’t enough.

Why we care. Two years ago, who was talking about data clean rooms? The surge of interest is recent and significant, according to the IAB. DCRs have the potential, at least, to keep brands in touch with their audiences on the open internet; to maintain viability for publishers’ inventories; and to provide sophisticated measurement capabilities.

How data clean rooms can help. DCRs are a type of privacy-enhancing technology that allows data owners (including brands and publishers) to share customer first-party data in a privacy-compliant way. Clean rooms are secure spaces where first-party data from a number of sources can be resolved to the same customer’s profile while that profile remains anonymized.

In other words, a DCR is a kind of Switzerland — a space where a truce is called on competition while first-party data is enriched without compromising privacy.

“The value of a data clean room is that a publisher is able to collaborate with a brand across both their data sources and the brand is able to understand audience behavior,” said Bestos. For example, a brand selling eye-glasses might know nothing about their customers except basic transactional data — and that they wear glasses. Matching profiles with a publisher’s behavioral data provides enrichment.

“If you’re able to understand behavioral context, you’re able to understand what your customers are reading, what they’re interested in, what their hobbies are,” said Bustos. Armed with those insights, a brand has a better idea of what kind of content they want to advertise against.

The publisher does need to have a certain level of first-party data for the matching to take place, even if it doesn’t have a universal requirement for sign-ins like The New York Times. A publisher may be able to match only a small percentage of the eye-glass vendor’s customers, but if they like reading the sports and arts sections, at least that gives some directional guidance as to what audience the vendor should target.

Dig deeper: Why we care about data clean rooms

What counts as good matching? In its “State of Data 2023” report, which focuses almost exclusively on data clean rooms, concern is expressed that DCR efficacy might be threatened by poor match rates. Average match rates hover around 50% (less for some types of DCR).

Bustos is keen to put this into context. “When you are matching data from a cookie perspective, match rates are usually about 70-ish percent,” he said, so 50% isn’t terrible, although there’s room for improvement.

One obstacle is a persistent lack of interoperability between identity solutions — although it does exist; LiveRamp’s RampID is interoperable, for example, with The Trade Desk’s UID2.

Nevertheless, said Bustos, “it’s incredibly difficult for publishers. They have a bunch of identity pixels firing for all these different things. You don’t know which identity provider to use. Definitely a long road ahead to make sure there’s interoperability.”

Maintaining an open internet. If DCRs can contribute to solving the addressability problem they will also contribute to the challenge of keeping the internet open. Walled gardens like Facebook do have rich troves of first-party and behavioral data; brands can access those audiences, but with very limited visibility into them.

“The reason CTV is a really valuable proposition for advertisers is that you are able to identify the user 1:1 which is really powerful,” Bustos said. “Your standard news or editorial publisher doesn’t have that. I mean, the New York Times has moved to that and it’s been incredibly successful for them.” In order to compete with the walled gardens and streaming services, publishers need to offer some degree of addressability — and without relying on cookies.

But DCRs are a heavy lift. Data maturity is an important qualification for getting the most out of a DCR. The IAB report shows that, of the brands evaluating or using DCRs, over 70% have other data-related technologies like CDPs and DMPs.

“If you want a data clean room,” Bustos explained, “there are a lot of other technological solutions you have to have in place before. You need to make sure you have strong data assets.” He also recommends starting out by asking what you want to achieve, not what technology would be nice to have. “The first question is, what do you want to accomplish? You may not need a DCR. ‘I want to do this,’ then see what tools would get you to that.”

Understand also that implementation is going to require talent. “It is a demanding project in terms of the set-up,” said Bustos, “and there’s been significant growth in consulting companies and agencies helping set up these data clean rooms. You do need a lot of people, so it’s more efficient to hire outside help for the set up, and then just have a maintenance crew in-house.”

Underuse of measurement capabilities. One key finding in the IAB’s research is that DCR users are exploiting the audience matching capabilities much more than realizing the potential for measurement and attribution. “You need very strong data scientists and engineers to build advanced models,” Bustos said.

“A lot of brands that look into this say, ‘I want to be able to do a predictive analysis of my high lifetime value customers that are going to buy in the next 90 days.’ Or ‘I want to be able to measure which channels are driving the most incremental lift.’ It’s very complex analyses they want to do; but they don’t really have a reason as to why. What is the point? Understand your outcome and develop a sequential data strategy.”

Trying to understand incremental lift from your marketing can take a long time, he warned. “But you can easily do a reach and frequency and overlap analysis.” That will identify wasted investment in channels and as a by-product suggest where incremental lift is occurring. “There’s a need for companies to know what they want, identify what the outcome is, and then there are steps that are going to get you there. That’s also going to help to prove out ROI.”

Dig deeper: Failure to get the most out of data clean rooms is costing marketers money


Get MarTech! Daily. Free. In your inbox.


Source link

Continue Reading

MARKETING

Ascend | DigitalMarketer

Published

on

Ascend | DigitalMarketer

At this stage, your goal is to generate repeat buys and real profits. While your entry-point offer was designed for conversions, your ascension offers should be geared for profits—because if you’re serving your customers well, they’ll want to buy again and again.

Ascension offers may be simple upsells made after that initial purchase… bigger, better solutions… or “done for you” add-ons.

So now we must ask ourselves, what is our core flagship offer and how do we continue to deliver value after the first sale is made? What is the thing that we are selling? 

How we continue to deliver value after the first sale is really important, because having upsells and cross sales gives you the ability to sell to customers you already have. It will give you higher Average Customer values, which is going to give you higher margins. Which means you can spend more to acquire new customers. 

Why does this matter? It matters because of this universal law of marketing and customer acquisition, he or she who is able and willing to spend the most to acquire a customer wins.

Very often the business with the best product messaging very often is the business that can throw the most into customer acquisition. Now there are two ways to do that.

The first way is to just raise a lot of money. The problem is if you have a lot of money, that doesn’t last forever. At some point you need economics. 

The second way, and the most timeless and predictable approach, is to simply have the highest value customers of anyone in your market. If your customers are worth more to you than they are to your competitors, you can spend more to acquire them at the same margin. 

If a customer is worth twice as much to you than it is to your competitor, you can spend twice as much trying to acquire them to make the same margin. You can invest in your customer acquisition, because your customers are investing in your business. You can invest in your customer experiences, and when we invest more into the customer we build brands that have greater value. Meaning, people are more likely to choose you over someone else, which can actually lower acquisition costs. 

Happy customers refer others to us, which is called zero dollar customer acquisition, and generally just ensures you’re making a bigger impact. You can invest more in the customer experience and customer acquisition process if you don’t have high margins. 

If you deliver a preview experience, you can utilize revenue maximizers like up sells, cross sales, and bundles. These are things that would follow up the initial sale or are combined with the initial sale to increase the Average Customer Value.

The best example of an immediate upsell is the classic McDonalds, “would you like fries with that?” You got just a burger, do you also want fries with that? 

What distinguishes an upsell from other types of follow up offers is the upsell promise, the same end result for a bigger and better end result. 

What’s your desired result when you go to McDonalds? It’s not to eat healthy food, and it’s not even to eat a small amount of food. When you go to McDonalds your job is to have a tasty, greasy, predictable inexpensive meal. No one is going there because it’s healthy, you’re going there because you want to eat good. 

It’s predictable. It’s not going to break the bank for a hamburger, neither will adding fries or a Coke. It’s the same experience, but it’s BIGGER and BETTER. 

Amazon does this all of the time with their “Customers Who Bought This Also Bought …” But this one is algorithmic. The point of a cross sell is that it is relevant to the consumer, but it doesn’t necessarily have to be aligned with the original purchase. What you don’t want to do is start someone down one path and confuse them.

You can make this process easy with Bundles and Kits. With a bundle or a kit you’re essentially saying to someone, “you can buy just one piece, or you can get this bundle that does all of these other things for a little bit more. And it’s a higher value.”

The idea behind bundles and kits is that we are adding to the primary offer, not offering them something different. We’re simply promising to get them this desired result in higher definition. 

The Elements of High-Converting Revenue Maximizers (like our bundles and kits) are:

  1. Speed

If you’re an e-Commerce business, selling a physical product, this can look like: offering free shipping for orders $X or more. We’re looking to get your customers the same desired result, but with less work for them.

  1. Automation

If you’re a furniture business, and you want to add a Revenue Maximizer, this can look like: Right now for an extra $X our highly trained employees will come and put this together for you. 

  1. Access 

People will pay for speed, they’ll pay for less work, but they will also pay for a look behind the curtain. Think about the people who pay for Backstage Passes. Your customers will pay for a VIP experience just so they can kind of see how everything works. 

Remember, the ascension stage doesn’t have to stop. Once you have a customer, you should do your best to make them a customer for life. You should continue serving them. Continue asking them, “what needs are we still not meeting” and seek to meet those needs. 

It is your job as a marketer to seek out to discover these needs, to bring these back to the product team, because that’s what’s going to enable you to fully maximize the average customer value. Which is going to enable you to have a whole lot more to spend to acquire those customers and make your job a whole lot easier. 

Now that you understand the importance of the ascend stage, let’s apply it to our examples.

Hazel & Hem could have free priority shipping over $150, a “Boutique Points” reward program with exclusive “double point” days to encourage spending, and an exclusive “Stylist Package” that includes a full outfit custom selected for the customer. 

Cyrus & Clark can retain current clients by offering an annual strategic plan, “Done for You” Marketing services that execute on the strategic plan, and the top tier would allow customers to be the exclusive company that Cyrus & Clark services in specific geographical territories.



Source link

Continue Reading

Trending

en_USEnglish