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Which Half of My Digital Marketing Is Working?           @David_Rogers Author, “The Network Is Your Customer”Faculty direc...
2
Companies worked with
from IF   to HOW   to WHY
Linking digital to business objectives
“Half the money I spend onadvertising is wasted.The trouble is I dont knowwhich half.”- John Wanamaker, 19th century depar...
Swimming in data
“Marketing ROI in the Era of Big Data”                    • Use of data                    • Use of digital channels      ...
100% of CMOs agree thatsuccessful brands use customer data    to drive marketing decisions                 but  39% of mar...
Speaking differentlanguages
When asked to define “marketing ROI”,       37% of marketers make   no mention of financial outcomes
ROI is…(     Return    Investment                 -1   )   x 100%
57% are not basingtheir marketing budgets  on any ROI analysis
Looking for thesilver bullet
70% of CMOs are looking for a“cross-platform model formeasuring marketing spend andtying it to ROI”
Comparing apples& oranges
Engagementis not engagement
Engagement is NOT a metric    … it is a class of metrics
Subscribers   Likes        Followers   DownloadsViews         Shares       Retweets    Time on appTop Videos    Wall posts...
Which half  of my digital isworking?
Agile marketing modeling      Objectives    4 Kinds of         first       Metrics       Focus on    Build your         KP...
Start with objectives
TECHNOLOGY  FIRST??
Brand building?Customer service?Sales / direct marketing?“Influencer” relations?Social responsibility?Lead generation?
Once you know your objectives……the data are no longer overwhelming
4 kinds of metrics
1. Audience metrics
1. Audience metricsFrequencyReachFans / followersViewsMonthly uniques
2. Channel engagement metrics
2. Channel engagement metricsRetweets (Twitter)Comments (Facebook)Time on site (website)Votes cast (forum)Click-throughs (...
Channel-specific metrics are more common in digital
3. Universal engagement metrics
3. Universal engagement metricsBrand awarenessBrand sentimentPurchase intentCustomer satisfactionNet Promoter Score (word-...
4. Financial metrics
4. Financial metricsRevenueMarket shareCustomer acquisitionCustomer retentionR.O.I.
Audience    Channel engagementFinancial   Universal engagement
Build your own     model
3.5m YouTube views2.7m Twitter impressions38% pre-launch awarenessin target audience100k+ test drives
Channel     UniversalAudience                             Financial           engagement   engagement                     ...
Marketing funnel & customer networks   Broadcast                    Customer Networks TV, radio, out-of-door              ...
Brand X new product introduction
Model for diagnosis                             Bad SEO70-90% of                    Shaped by Amazonmkg spend             ...
Model for planning                New CMS                Partner w/Amazon                Promote 3rd party                ...
Focus on KPIs
Audience    Channel engagementFinancial   Universal engagement
KPIs achieved                • Top-seller in                  category on                  Amazon                • Best pe...
Customer segment:   Cross-border travelers                    (US to Mexico)             KPI:   Increase share of         ...
Marketing plan based on KPI                          Visa online  Hotel/site websites                          media plan ...
7 Habits of agilemarketing modelers
7 Habits of the agile marketing modeler1. Make it everyone’s job   Not “dept of big metrics”2. Be iterative             Do...
Objectives    4 Kinds of   first       Metrics Focus on    Build your   KPIs      own model
Thank you!   contact@davidrogers.bizEmail me for:• Slides• Research study
Digital Marketing ROI: Which Half of My Digital Is Working?
Digital Marketing ROI: Which Half of My Digital Is Working?
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Digital Marketing ROI: Which Half of My Digital Is Working?

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Amidst a slew of data from new digital tools, even successful marketers find it hard to know "which half of my marketing is working?" – or to explain to the CFO where they should next invest in digital and why. Instead of searching for a universal ROI solution, marketers need to think strategically about their own customers' path to purchase. By linking audience, engagement, and financial impact to their key business objectives, they can build a model that ensures marketing will matter for their business in the digital age.

Published in: Business

Transcript of "Digital Marketing ROI: Which Half of My Digital Is Working?"

  1. 1. Which Half of My Digital Marketing Is Working? @David_Rogers Author, “The Network Is Your Customer”Faculty director, Digital Marketing Strategy,  Columbia Business School AMA Research and Strategy Summit 2012 Leading Research Transformation
  2. 2. 2
  3. 3. Companies worked with
  4. 4. from IF to HOW to WHY
  5. 5. Linking digital to business objectives
  6. 6. “Half the money I spend onadvertising is wasted.The trouble is I dont knowwhich half.”- John Wanamaker, 19th century department-storemagnate and father of advertising 6
  7. 7. Swimming in data
  8. 8. “Marketing ROI in the Era of Big Data” • Use of data • Use of digital channels • Measurement across digital & traditional • ROI best practices
  9. 9. 100% of CMOs agree thatsuccessful brands use customer data to drive marketing decisions but 39% of marketers say they can’tturn their data into actionable insight
  10. 10. Speaking differentlanguages
  11. 11. When asked to define “marketing ROI”, 37% of marketers make no mention of financial outcomes
  12. 12. ROI is…( Return Investment -1 ) x 100%
  13. 13. 57% are not basingtheir marketing budgets on any ROI analysis
  14. 14. Looking for thesilver bullet
  15. 15. 70% of CMOs are looking for a“cross-platform model formeasuring marketing spend andtying it to ROI”
  16. 16. Comparing apples& oranges
  17. 17. Engagementis not engagement
  18. 18. Engagement is NOT a metric … it is a class of metrics
  19. 19. Subscribers Likes Followers DownloadsViews Shares Retweets Time on appTop Videos Wall posts Klout Data gained
  20. 20. Which half of my digital isworking?
  21. 21. Agile marketing modeling Objectives 4 Kinds of first Metrics Focus on Build your KPIs own model
  22. 22. Start with objectives
  23. 23. TECHNOLOGY FIRST??
  24. 24. Brand building?Customer service?Sales / direct marketing?“Influencer” relations?Social responsibility?Lead generation?
  25. 25. Once you know your objectives……the data are no longer overwhelming
  26. 26. 4 kinds of metrics
  27. 27. 1. Audience metrics
  28. 28. 1. Audience metricsFrequencyReachFans / followersViewsMonthly uniques
  29. 29. 2. Channel engagement metrics
  30. 30. 2. Channel engagement metricsRetweets (Twitter)Comments (Facebook)Time on site (website)Votes cast (forum)Click-throughs (brand banner ad)
  31. 31. Channel-specific metrics are more common in digital
  32. 32. 3. Universal engagement metrics
  33. 33. 3. Universal engagement metricsBrand awarenessBrand sentimentPurchase intentCustomer satisfactionNet Promoter Score (word-of-mouth)
  34. 34. 4. Financial metrics
  35. 35. 4. Financial metricsRevenueMarket shareCustomer acquisitionCustomer retentionR.O.I.
  36. 36. Audience Channel engagementFinancial Universal engagement
  37. 37. Build your own model
  38. 38. 3.5m YouTube views2.7m Twitter impressions38% pre-launch awarenessin target audience100k+ test drives
  39. 39. Channel UniversalAudience Financial engagement engagement Pre- Social Social launch Sales media media aware views inter- ness action Test Savings drives on mkg (lead spend gen)
  40. 40. Marketing funnel & customer networks Broadcast Customer Networks TV, radio, out-of-door Search, buzz, blogs , Direct mail, brochure Online research, user reviewsProduct test, comparison Social networks, YouTube, local search In-store purchase Group discounts, purchase on-line/in-store/mobile Reward points “Friending” (FB, Twitter, email), customized up-selling Reviews, links, “likes,” social buzz 42
  41. 41. Brand X new product introduction
  42. 42. Model for diagnosis Bad SEO70-90% of Shaped by Amazonmkg spend Display: coupon only Etail + retail Very little advocacy
  43. 43. Model for planning New CMS Partner w/Amazon Promote 3rd party reviews Encouraged advocacy
  44. 44. Focus on KPIs
  45. 45. Audience Channel engagementFinancial Universal engagement
  46. 46. KPIs achieved • Top-seller in category on Amazon • Best performer for the company in retail stores
  47. 47. Customer segment: Cross-border travelers (US to Mexico) KPI: Increase share of wallet vs. cash
  48. 48. Marketing plan based on KPI Visa online Hotel/site websites media plan Airport ATMs (arrival) Onsite Visa calls-to- Tourist sites action
  49. 49. 7 Habits of agilemarketing modelers
  50. 50. 7 Habits of the agile marketing modeler1. Make it everyone’s job Not “dept of big metrics”2. Be iterative Don’t wait for the annual survey3. Be skeptical Don’t accept just any metric4. Be data-driven Not just hunches & feels-good5. Be customer-centric Don’t lose yourself in the data6. Be imperfect Don’t wait for perfection7. Be decision-driven Never measure just to measure
  51. 51. Objectives 4 Kinds of first Metrics Focus on Build your KPIs own model
  52. 52. Thank you! contact@davidrogers.bizEmail me for:• Slides• Research study

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