“ To Marketing Optimisation and Beyond!” Neil Mason Applied Insights

Forces at work

Internet Adoption & Usage Curve Source: Net Poll/QXL Propensity to Transact Assessment Scepticism Trepidation Orientation Wanderlust Confidence Maturity Event Driven Usage Online One Month Three Months Six Months Nine Months One Year Two Years Activity Time

Internet User E-commerce Development Up to 12 to 24 months Experience/Confidence Information & Research On-line Retail Transactions Auctions +ve Good deals Efficient Exciting Smart -ve: Safety Anonymity of seller +ve Rare/usual items Fun/excitement (Easy) -ve: Safety Confidence about product delivery Whether it’s a good deal Lack of relevance

Yesterday…. Transactional Systems Sales Reports Site Reports Board Reports

Today…. Transactional Systems Country Management Information Factory Extracts Group Management Functional Management

Tomorrow…. Transactional Systems Country Management Knowledge Repository Extracts Rules Group Management Functional Management

Business and Customer Intelligence Strategy Phase 1- Integrated Reporting Third Party Data Analysts Managers Partners Data Warehouse Analysis Tools Reporting Environment Site Live Trading Customer Service Financials

Implementation Approach Centre Local Analysts “ Centralise Development and Technology - Localise Usage and Support” Corporate Documents Localised Documents Ad-hoc Queries Support Training Best Practice Development Administration Security Expertise Users Users Users

CRM Technology Framework Information & Analysis Systems Transaction Systems Marketing Systems Data Warehouse

I Wish It Was As Easy As This….

The journey to online marketing optimisation Performance Tracking Process Analysis & Optimisation User Centricity Insight Investment

… the right numbers right It’s about getting….

As Albert said…

The not-so secret approach to getting performance tracking right…

Some simple questions to help you get your KPIs right State the online marketing objective What does that really mean? What does good look like? What will be happening differently if you are meeting this objective? Can these behaviours or outcomes be measured? How? Are these metrics good enough to be KPIs?

State the online marketing objective

What does that really mean?

What does good look like? What will be happening differently if you are meeting this objective?

Can these behaviours or outcomes be measured? How?

Are these metrics good enough to be KPIs?

Good KPIs are “ Übermetrics ”…

Organisations need to have the desire for change…

… to have the ability to execute…

..and to remain focussed

The ingredients for optimisation

The principle of optimisation

Defeat the HIPPO! H ighly I mportant P erson’s P ersonal O pinion

H ighly

I mportant

P erson’s

P ersonal

O pinion

Get the data out of the silos… Web analytics data Survey data Campaign data Customer data

Campaign optimisation

Optimising site processes…

Defining page purpose and measurement Home page Category page Product list page Product page Basket Checkout Landing zones Landing zone Engage Route Route Engage Convince Bounce rate Promotion space CTR Process Process Exit rate Click to product rate Exit rate Cross-sell rate Add to basket rate Tool usage Conversion rate Conversion rate Visitor numbers

Multi-variate testing (MVT) 6 banners 4 boxes 5 pictures 4 sets of links 3 product lists 7 copy variations 6 x 4 x 5 x 4 x 3 x 7 = 10,800 permutations!!

6 banners

4 boxes

5 pictures

4 sets of links

3 product lists

7 copy variations

Create meaningful segments

A user centric framework… Why do they visit the site? ? ? ? ? Who visits the site? What do they do on the site?

Happy Trackers (6%) Happy Trackers mainly use the site for Track and Trace and little else In terms of profile they tend to have a stronger business slant and be slightly older than on average They are not heavy users of the site and their visits are relatively light and narrow – all they do is use Track and Trace However they are happy with what they do, they rate the site functionality the best out of all the segments

Cottage Industrialists (2%) Cottage Industrialists are frequent users of the site and they mainly come looking for information on postal prices, delivery services, parcel information and the like. Half of this segment are involved in some type of online auction related activity and over the course of their lifetime they tend to look at the broadest amount of content on the site. Quite often they will be using the search function to do this They are reasonably happy with the customer experience on the site and are more likely than on average to recommend the site to others

The user centric framework…in action Why do they visit the site and what do they think of it? Who visits the site? What do they do on the site?

Most people who visit your website… Only visit once… Only stay one minute… Generally only look at one page… Most likely only stay for one minute… And probably only transact with you once

Only visit once…

Only stay one minute…

Generally only look at one page…

Most likely only stay for one minute…

And probably only transact with you once

Look forward…

Look forward…

Predicting segment membership Repeat shoppers Single order shoppers 11 product based segments Profiled on category purchasing, category browsing, plus opt-in Profiled on shopping behaviour, purchasing behaviour, category browsing, lifecycles, mosaic, opt-in 75% shoppers 43% items sold 25% shoppers 57% items sold 25% shoppers Repeat Visitor Only “ 1 to 2” conversion Events and triggers Profiled on category browsing Probable segment membership

Thank you! Neil Mason [email_address]