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Aberdeen Web Analytics Customer Data Report

Aberdeen Web Analytics Customer Data Report

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    Web analytics-customer-data-120423220705-phpapp01 Web analytics-customer-data-120423220705-phpapp01 Document Transcript

    • This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologies provide for objective fact-based research andrepresent the best analysis available at the time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc.and may not be reproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.January 2012Web Analytics: Marketing Beyond OnlineCustomer DataAs the volume of customer-related data (transactional, behavioral andunstructured) continues to grow, marketing organizations are in danger ofbecoming increasingly data-rich, but insight-poor. In July and August 2011,Aberdeen surveyed 176 organizations regarding their use of analytical toolsand processes in marketing campaigns and programs, with 93 of theresponding businesses indicating that they are actively using web analytics tosupport their marketing activities. This Analyst Insight will identify how Best-in-Class companies among those 93 respondents track, measure and useonline customer data to improve their performance in key indicators ofmarketing program success. These metrics include marketings contributionto company revenue, and the incremental sales lift resulting from marketingcampaigns and programs. The analysis review key factors that helpbusinesses move beyond simply collecting customer data through theirwebsites, to using this information as a strategic lever to help marketingbecome a truly data-driven function that has quantifiable impact on companyresults.Business ContextThe rising and falling tides of economic instability over the past three yearshave left many organizations engaged in fierce competition to survive andthrive. Aberdeens Q2 2011 Quarterly Business Review study shows that thetop challenges organizations face in meeting their business goals areeconomic conditions (39%) and increased competition (36%). These harshrealities put marketing at the forefront of the organizations drive to makethe business stand out from its competitors, and to maintain and improve itsfinancial health.Table 1: Top Pressures Driving Marketing AgendasAll Analytics UsersPressure to increase the returns frommarketing spend 52%Organizational pressure to deliver higherquality sales leads 51%Faster response time to customer activitiesrequired for business impact 30%Source: Aberdeen Group, August 2011Analyst InsightAberdeen’s Insights provide theanalyst perspective of theresearch as drawn from anaggregated view of the researchsurveys, interviews, anddata analysisAberdeen’s PACE MethodologyAberdeen applies a methodologyto benchmark research thatevaluates the business Pressures,Actions, Capabilities, andEnablers (PACE) that indicatecorporate behavior in specificbusiness processes:√ Pressures — external forcesthat impact an organization’smarket position,competitiveness, or businessoperations.√ Actions — the strategicapproaches that anorganization takes in responseto industry pressures.√ Capabilities — the businessprocess competencies(process, organization,performance and knowledgemanagement) required toexecute corporate strategy.√ Enablers — the keyfunctionality of technologysolutions required to supportthe organization’s enablingbusiness practices.
    • Web Analytics: Marketing Beyond Online Customer DataPage 2© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Aberdeens October 2011 study, The Marketing Executives Agenda for 2012,reflects these rising organizational expectations from marketing. Fifty-onepercent (51%) of all companies surveyed indicated they are holdingmarketing accountable for demonstrating quantifiable returns on investment.Data from Aberdeens current study shows that 52% of the companies usinganalytical tools (e.g. web analytics) to support their marketing programs arestruggling with organizational pressure to demonstrate quantifiable ROIfrom their marketing spend, as shown in Table 1. Marketers need to useonline customer data for more than just managing website content--theymust leverage web analytics tools strategically, to improve targeting andpersonalization and provide the right messaging / offer(s) at the right time toeach customer, leading to increased returns.What better way is there to demonstrate the value of marketing besidescorrelating marketing programs with selling results? Unsurprisingly, one outof two companies using analytical tools to support marketing activitiesindicated that they expect their marketing departments to deliver higher-quality leads to support sales reps - see Table 1 above. Marketers arechallenged with using web analytics tools to convert information capturedthrough the website into high-quality leads for their sales teams. AberdeensDecember 2011 Sales and Marketing Alignment: The New Power Couple studyaffirms this finding; the second top organizational goal after increasing top-line revenue is improving the quality of leads marketing sends to sales.Best-in-Class ResultsAberdeen used two performance criteria to study how web analytics helpBest-in-Class businesses differentiate themselves from Industry Average andLaggards;Table 2: Top Performers Earn Best-in-Class StatusDefinition ofMaturity ClassMean Class PerformanceBest-in-Class:Top 20%of aggregateperformance scorers 65% of all closed business coming from marketingcampaigns and programs 7.1% average year-over-year improvement inincremental sales lift resulting from marketingcampaignsIndustry Average:Middle 50%of aggregateperformance scorers 11% of all closed business coming from marketingcampaigns and programs 1.7% average year-over-year improvement inincremental sales lift resulting from marketingcampaignsLaggard:Bottom 30%of aggregateperformance scorers 2% of all closed business coming from marketingcampaigns and programs 1.9% average year-over-year decline in incrementalsales lift resulting from marketing campaignsSource: Aberdeen Group, August 2011Defining MetricsThe performance criteria inTable 2 are defined as follows;√ Marketings contributionto company revenue: Thepercentage of companyrevenue that is attributableto multi-channel marketingcampaigns and programs. Itis typically measured bydetermining the percentageof closed business that wasgenerated or influenced(nurtured, touched) bymarketing campaigns beforeresulting in a sale.√ Incremental sales liftfrom marketingprograms: Year-over-yearperformance measuredemonstrating the impact ofmarketing activities onimproving organizationsselling results.
    • Web Analytics: Marketing Beyond Online Customer DataPage 3© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Why These Metrics?Aberdeen asked the survey respondents to rate the value of specificperformance metrics to measuring the effectiveness of analytical tools, inthis case web analytics, in improving marketing results. The top twomeasures identified were Return on Marketing Investments (72%) andincremental sales lift from marketing programs (66%). As for the formermeasure, research findings reveal that most companies (66%) usemarketings contribution to sales pipeline and company revenue todetermine the ROI of their marketing activities.In the world of web analytics, these metrics translate into identifying howeach online customer activity is converted into an online or offline purchase.While marketings contribution to company revenue is an enterprise-levelmetric measuring overall marketing effectiveness, sales lift from marketingcampaigns can be measured by identifying how each multi-channel marketingcampaign drives business in various forms, including in-store purchase,online order and phone order.The Best-in-Class PACE ModelIntegrating web analytics as a strategic differentiator to achieveorganizational goals and mitigate the pressures mentioned above requires acombination of strategic actions, business processes, and enablingtechnologies summarized as shown in Table 3.Table 3: The Best-in-Class PACE FrameworkPressures Actions Capabilities Enablers Pressure toincrease thereturns frommarketingprogram spend Improve thetargeting ofmarketing offers tooptimize marketingROI Gain insight intoeffectiveness ofspecific marketingcampaigns andchannels Executive support forusing customer analyticsin marketing programs Test effectiveness ofcampaign content Measure customerprofitability Customer behavior isused to segment andtarget marketingaudiences Disseminate knowledgeon marketing campaignsto key decision makers Capture customersentiment data Data management / cleansing Marketing content management Marketing automation Predictive analyticsSource: Aberdeen Group, August 2011
    • Web Analytics: Marketing Beyond Online Customer DataPage 4© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Best-in-Class StrategiesThe study results indicate that Best-in-Class companies focus oncustomizing their marketing messages based on each website visitor personaand identify which marketing efforts provide the greatest impact on drivingmarketing effectiveness - Figure 1.Using online customer data captured through web analytics tools is a keyenabler in helping organizations better personalize their marketingcampaigns in order to improve their marketing ROI. Aberdeens September2011 Customer Relevancy Drives Precision Marketing in the Mobile Channel studydemonstrates the value of this strategy; companies using customer data tocreate customized marketing campaigns achieve 72% greater (6.4% vs. 3.7%)year-over-year improvement in marketings contribution to companyrevenue, compared to those dont.Figure 1: Best-in-Class Web Analytics StrategiesSource: Aberdeen Group, August 2011In addition to their focus on using customer information to customize theirmulti-channel marketing activities and improve ROI, Best-in-Class marketersare also keen on getting granular with the specific impact of each marketingchannel and campaign. This helps those businesses integrate their webanalytics deployments with broader multi-channel and cross-channelmarketing efforts, and provides the ability to trace the results of eachmarketing campaign. Using this strategy in conjunction with personalizationefforts allows the Best-in-Class to go beyond operational reporting of webactivities to strategic marketing activities that impact returns from their webspend.38%33%0%10%20%30%40%Improve the targeting ofmarketing offers to optimizemarketing ROIGain insight into effectivenessof specific marketingcampaigns and channelsPercent of respondents, n=176Best in Class"Having timely and accurateinsights into which marketingcampaigns were successfulhelps us to eventually optimizeour marketing programs basedon prospect activity."~ Chris Kuelbs, Lead ProjectManager, Polaris
    • Web Analytics: Marketing Beyond Online Customer DataPage 5© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Case Study - Mid-size Financial Education Services CompanyA leading financial education provider in North America broadcasts oneof the largest independent radio shows, and providing a wide array ofproducts and services to its customers. To align the online delivery ofthese products and services with its business strategy, the companylaunched a new web site and adopted a marketing automation solutionto manage the site. “We changed our approach to marketing byautomating it and making it a more data-driven function, with precisemeasures to assess marketing campaign results and utilizing webanalytics is a key ingredient of this strategy,” says the companys LeadWeb Analyst.One of the first steps the company took was to use a web analytics toolto track results (visitations and click-throughs) to understand the pathsvisitors take online. “The ability to understand how to effectively utilizeour online real estate was an immediate benefit for us. It allowed us toimprove the impact of our marketing assets, thus truly integrating thecontent on our new web site with our business.”Another key component of the company’s marketing automationstrategy is disseminating marketing campaign results to relevantstakeholders. Today, 20 individuals from different roles, ranging fromexecutive management to marketing staff, can view campaign results.While putting these capabilities in place, the company kept a keen eyeon the costs of its campaigns to determine which were successful. “Ournew solution enabled us to associate returns from each marketingcampaign with its respective costs and as a result, we are able todetermine marketing campaigns that would deliver the maximum returnon investment (ROI) for us,” adds the Lead Web Analyst.Careful planning and implementation of a marketing automation strategyallowed the company to reap many fruits of its labors. The first yearafter implementing the new solution, it increased ROI 5-fold.Marketing’s contribution to online business has jumped to 50%. Time-to-market (time to create and deliver marketing assets or content tomarket) also improved significantly. “It used to take us weeks to createcontent and put on our website; today we do it virtually in real-time,”concludes the Lead Web Analyst at the company.Key CapabilitiesAs illustrated in Table 4, Aberdeen has identified six key business processesand four technology enablers required to successfully implement the coreweb analytics strategies above, and achieve Best-in-Class results.
    • Web Analytics: Marketing Beyond Online Customer DataPage 6© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Table 4: The Competitive FrameworkBest-in-Class Average LaggardsProcessTest effectiveness of campaign content76% 51% 21%Customer behavior is used to segment and target marketingaudiences65% 56% 41%OrganizationExecutive support for using customer analytics in marketingprograms76% 61% 38%KnowledgeDisseminate knowledge on marketing campaigns to keydecision makers62% 49% 28%Capture customer sentiment data57% 41% 14%EnablingTechnologies 62% Datamanagement /cleansing 57% Marketingcontentmanagement 50% Marketingautomation 43% Predictiveanalytics 56% Datamanagement /cleansing 45% marketingcontentmanagement 41% marketingautomation 33% Predictiveanalytics 46% Datamanagement /cleansing 34% marketingcontentmanagement 24% marketingautomation 17% PredictiveanalyticsPerformanceMeasure customer profitability67% 48% 36%Source: Aberdeen Group, August 2011Capabilities and EnablersBased on the findings of the Competitive Framework and interviews withend user companies, Aberdeen’s analysis of the Best-in-Class demonstratesthat these top performers are dedicated to using a certain set of businessprocesses and technologies, which help them succeed at web analytics.Process• Measure effectiveness of each marketing campaigncontent. Maximizing marketing ROI requires that the businessunderstand which marketing campaign(s) deliver the greatest results/ returns, in order to help them identify and repeat successfulcampaigns, and avoid unsuccessful ones. Using web analytics tools toevaluate the effectiveness of campaign content is an essential step inthis process, along with determining the proper timing andchannel(s) of the campaign. Aberdeens November 2010 Marketing
    • Web Analytics: Marketing Beyond Online Customer DataPage 7© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Asset Management report notes; "…Best-in-Class companies are keenlyaware of utilizing both fundamental and innovative performancemanagement measures to advance their marketing materials and contentin a manner that directly supports the business," highlighting theimportance of measuring the effect of each content in multi-channeland cross-channel marketing campaigns on business results.• Using customer behavioral data for segmentation andtargeting. This process lets organizations use customer behaviordata captured through the web analytics to craft different marketingstrategies based on the unique needs and characteristics of variouscustomer segments. Companies can use one or many criteria (e.g.age, location, historical spend) to segment their customer base. Inaddition to streamlining the management of typically exhaustivecustomer databases, this process also enhances companies ability tocontextualize marketing messages. For example, using priorcustomer spend history (which can typically be obtained throughweb analytics tools), a company can identify high-value / spendcustomers and create customized marketing messages for theseVICs (Very Important Customers). Companies using this processachieve 82% greater incremental sales lift from marketing campaigns,compared to organizations that dont use customer behavioral datato segment and target their customers - Figure 2.Figure 2: Performance Impact of Customer SegmentationSource: Aberdeen Group, August 2011OrganizationExecutive-level support for integrating customer analytics withinmarketing programs. To target customers through the web in apersonalized fashion, companies must use web analytics to understandcustomer personas in order to pair the right content with the rightmessage. Data shows that Best-in-Class companies are twice as likely asLaggard businesses to have executive support for leveraging customer4.8%2.6%0%1%2%3%4%5%6%Average incremental sales lift resulting from a marketing campaignPercent of respondents, n=176Companies using customer behavioral data for segmentationand targetingAll Others82% greaterperformance
    • Web Analytics: Marketing Beyond Online Customer DataPage 8© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897analytics within marketing programs. Using customer analytics with webanalytics tools helps companies unlock insights otherwise hidden behindonline customer data. These insights can in turn be used to tune marketingprograms and enhance the contextualization of marketing campaigns.Companies without executive-level support for customer analyticsexperience 80% lower (0.5% vs. 2.7%) year-over-year performance gains inmarketing program contribution to company revenue compared to theircounterparts who lack executive-level support for their broader webanalytics initiatives.Knowledge Management• Share knowledge of marketing campaign results with keydecision-makers. Best-in-Class companies in this study are 49%more likely than all others to provide executive-level insights to keydecision-makers within the organization. Using web analytics toolsallows companies to track and measure the specific impact of eachmarketing program on online conversions and customer behavior(e.g. sign-up for newsletters or download a coupon). Sharing theseinsights is a crucial part of both marketing and organizationalsuccess. It provides company leadership with much neededinformation about the organizations strategic position within themarketplace, as well as data-driven insights required to manage theexisting product / service portfolio and create new products thatmeet customers needs. Furthermore, as illustrated in Table 1, whenmarketers are under constant pressure to demonstrate ROI fromtheir activities, this process lets them share the impact of theirmarketing campaigns on business results.• Capture customer sentiment data. Using analytical tools andprocesses to capture website visitation data is different fromcapturing customer sentiment information. The former providesbusinesses with insight into the behavior patterns of websitevisitors, whereas the latter reveals what drives these behaviors.Customer sentiment data can be captured in many ways--forexample, by monitoring likes, product / service ratings, onlinecomments, forums and social media status updates. Combiningonline customer activity data with sentiment information throughanalytical tools lets companies take their web analytics to the nextstep - it opens the door to the hearts and minds of customers andhelps businesses improve the results of their marketing initiatives.This process is an integral part of web analytics activities for 57% ofBest-in-Class companies, compared to 30% of other companies.TechnologyWhen it comes to leveraging technology tools to support existing webanalytics deployments, Best-in-Class companies focus on four keytechnologies (Figure 3);"The focus of most marketingorganizations has changeddramatically; we are no longerleading the marketplace, we aresimply following the customers.If companies can do a good jobmanaging customerinformation, then the resultswill translate into improvedmarketing effectiveness.”~Virginia Bonofiglio, Ex-Marketing Manager of aChemicals Company based inthe U.S.
    • Web Analytics: Marketing Beyond Online Customer DataPage 9© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Figure 3: Adoption of Technology EnablersSource: Aberdeen Group, August 2011• Data management/cleansing. Customer data is one of the mostimportant tangible assets any organization owns. Managing andcleansing databases that store this information is paramount inhelping companies use this data. Data management and cleansingtools support businesses by ensuring the accuracy of customer dataobtained through web analytics. This information can be used togenerate targeted marketing campaigns. There are various methodsof integrating customer data with web operations; for example,companies can use reverse-IP technology to gather information onwebsite visitors and customize their marketing messages.Companies using data management / cleansing tools are 39% lesslikely (19% vs. 31%) to struggle with interpreting customer datafrom web analytics.• Marketing content management. This technology is associatedwith the second process capability in Table 3 - testing theeffectiveness of marketing content. Marketing content managementtools automatically update web marketing content based oncustomer information, typically gleaned through web analyticsdeployments. When a business lacks prior data on a website visitor,it uses information captured from other customers to personalizethe visitors web experience. For example, a client visiting a clothingcompanys website for the first time might click to see more coats.Based on this information, the company can use data from othervisitors sessions to make an offer to the first-time customer withtrending coats or complementary products, such as gloves andscarves, that other visitors view or purchase when they click oncoats. Businesses using marketing content management achieve 2.3-times greater (4.3% vs. 1.9%) year-over-year gains in cross-sell/up-sell revenue compared to those that dont.• Marketing automation. One out of every two Best-in-Classcompanies currently uses this technology to support their webanalytics activities. Marketing automation tools help businesses useonline customer data within the scope of their broader multi-62%57%50%43%52%41%34%27%10%20%30%40%50%60%70%Datamanagement/cleansingMarketing contentmanagementMarketing automationsolutionPredictive analyticsPercent of respondents, n=176Best in Class All Others
    • Web Analytics: Marketing Beyond Online Customer DataPage 10© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897channel marketing campaigns. Customer information helpscompanies coordinate different touch-points for each accountacross multiple digital and off-line channels. In addition to providingtimely and broad communication capabilities, this technology alsoenhances the consistency of multi-channel marketing messages. Datafrom Aberdeens August 2011 Metric-Driven Mobile Marketingresearch shows that companies using marketing automationtechnology are 2.3-times (43% vs. 19%) more likely to indicate thatthey have established consistency within their marketing messagesacross all channels.• Predictive analytics. These tools let organizations take advantageof online customer data captured through the companys website byusing web analytics tools to predict what customers will want, aswell as how, when and where they will want it. Despite beingcurrently used by less than half of Best-in-Class, the deltas inadoption of this technology between Industry Average (43%) andLaggards (153%) are significant. This reflects the value of thistechnology in helping companies achieve the Best-in-Class resultsdemonstrated in Table 1. The table below illustrates the plannedadoption patterns of this technology among all web analytics users.Table 5: Planned Adoption of Predictive Analytics ToolsAll Web Analytics UsersPlan to Implement by August 2012  34%Plan to Implement after August 2012  21%Source: Aberdeen Group, August 2011Performance Management• Measure customer profitability. Sixty-one percent (61%) of allorganizations participating in Aberdeens upcoming January 2012Customer Experience Management: Using the Power of Analytics toOptimize Customer Delight study indicated customer profitability as akey measure of the effectiveness of customer management activities.Improving this measure begins with understanding each customer oraccounts impact on the companys top-line and bottom-line results.Establishing visibility into customer profitability begins with back-enddata systems that capture and store customer data, typicallycollected from myriad sources including web analytics tools.Organizations with a well-structured customer data system can drilldown into information on historical customer spend, and correlatethis information with the costs of acquiring and targeting eachcustomer. With this net number, businesses have a quantifiedmeasure of the profitability of each customer and marketing
    • Web Analytics: Marketing Beyond Online Customer DataPage 11© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897channel, including the web. Research results from the CustomerExperience Management study indicate that businesses conducting acost / benefit analysis of each customer interaction improved theiraverage profit margin per customer by 4.7% year-over-year,compared to a 1.2% decrease for businesses that are notperforming such calculations.Free or Paid Web Analytics?This research document has noted the business impact of web analyticstools and the differentiating business processes and technologies whichsupport them. However, which tools should businesses use? The webanalytics market is a mix of free, paid and mix (free and paid) tools. Figure 4below and the sidebar illustrate the impact of each model.Figure 4: Business Value of Free vs. Paid Web AnalyticsSource: Aberdeen Group, August 2011Companies using free web analytics are more likely to struggle to interpretdata output from these systems, compared to peers using paid or mixed(free and paid) web analytics deployments (Free: 31% vs. Paid: 27% vs.Mixed: 24%). Interestingly enough, however, those businesses that deployonly paid web analytics are 64% more likely to indicate they are not gettingthe full value from these tools. On the other hand, paid web analytics usersare 2.9-times more satisfied than free web analytics users with the quality ofinformation they receive from their web analytics tools - see sidebar. Letsput the findings into context and observe the disconnect between why paidweb analytics users are more satisfied with the quality of data, yet indicatethat they are not receiving the full value from their solutions. Is it related tothe sub-par performance of these companies? Or are organizations not fullyleveraging the capabilities of their paid web analytics deployments? Figure 5below demonstrates the year-over-year performance results of companiesusing all three models of web analytics.25%41%30%0%10%20%30%40%50%We are not getting the full value from our web analytics solutionPercent of respondents, n=176Free web analytics usersPaid web analytics usersFree and Paid web analytics usersFast FactThe breakdown of companiesindicating that they arecurrently satisfied with thequality of information deliveredthrough their web analyticsdeployments is as follows;√ Free web analytics users:10%√ Paid web analytics users:29%√ Free and paid web analyticsusers: 32%“There are free analyticssolutions out there that aregood at providing click-throughdata; however, if a companydoesn’t associate thatinformation with conversionson the site, it’s useless data.”~ Ex-SVP of Marketing at LargeNorth American ConsumerServices Company
    • Web Analytics: Marketing Beyond Online Customer DataPage 12© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897Figure 5: Free vs. Paid - Year-over-Year Performance ComparisonSource: Aberdeen Group, August 2011The figure above indicates that companies using only free web analyticssolutions experience a year-over-year decline in marketing campaignperformance. Companies that use paid web analytics tools, on the otherhand, achieve consistent improvements in year-over-year marketing results.Paid web analytics users are not experiencing sub-par performance gains; onthe contrary, they reap the greatest benefits compared to businesses usingfree or mixed web analytics. The main reason these companies feel they arenot getting the most from their investment is that they lack strategies andbusiness processes to track, capture and comprehend the impact of theirweb analytics deployments. The following section presents practicalguidelines to mitigate this challenge.Key TakeawaysWhether a company is trying to improve its performance in web analyticsactivities from Laggard to Industry Average, Industry Average to Best-in-Class or maintain Best-in-Class results, the following actions will help spurthe necessary performance improvements:Laggard Steps to Success:• Determine key metrics. Sixty-six percent (66%) of Laggardbusinesses still dont have defined measures to evaluate theeffectiveness of their marketing campaign performance. Establishinga process and metrics for measuring online marketing results withweb analytics is a critical step toward creating a data-driven view ofmarketing results. This should be complemented with frequent-2.1%-2.5%-5.0%4.7%3.6%5.4%3.7%2.0%3.3%-6%-4%-2%0%2%4%6%Marketing’s contributionto closed businessAverage incrementalsales lift resulting froma marketing campaignReturn on MarketingInvestmentYear-over-yearpercentchange,n=176Free web analytics usersPaid web analytics usersFree and Paid web analytics usersFast FactWhile findings demonstratedin Figure 5 show that mixedanalytics users outperformfree analytics users, closeanalysis of the data revealsthat focusing on fully utilizingthe capabilities of paidplatforms helps businessesachieve further performancegains, compared to peersusing a mix of free and paidweb analytics.
    • Web Analytics: Marketing Beyond Online Customer DataPage 13© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897reports to the key stakeholders within the organization, to build aclear picture of how marketing contributes to the health andsuccess of the organization.• Test the effectiveness of each marketing campaign. Despitethe plethora of techniques and tools available to test marketingcampaign results, only 21% of Laggard organizations are testing theircampaign effectiveness. Using web analytics to conduct such testshelps businesses set expectations on how upcoming marketingcampaigns might perform, and use this information to fine-tune theiractivities to achieve desired results. Companies testing theeffectiveness of each marketing campaign achieve 3.8-times greater(3.2% vs. 0.9%) year over-year improvement in return on theirmarketing investments compared to companies that dont.Industry Average Steps to Success:• Improve the relevancy of your web content. The increasingadoption of social media portals and mobile devices lets customerseasily access almost any information, anytime and anywhere. Toattract customers attention in this environment, businesses mustdeliver the most relevant marketing messages through the mostrelevant channel(s) at the opportune time(s). This is bestaccomplished by customizing web content based on customerbehavioral data captured through web analytics tools.Approximately half (49%) of Industry Average companies currentlyimplement this process; there is ample opportunity for all IndustryAverage companies to adopt and constantly improve this process.• Ensure the quality of your customer database. The ability topersonalize marketing messages hinges on an organizations abilityto use customer data gleaned from their web analytics deployments.Aberdeens upcoming January 2012 Customer Experience Managementstudy shows that businesses that adopt technology tools to ensurethe quality of customer information within their customer databaseachieve approximately two times the year-over-year improvementin their annual company revenue compared to organizations thatare not using these tools.Best-in-Class Steps to Success:• Use predictive capabilities. Less than half (43%) the Best-in-Class use predictive analytics tools and processes to forecastcustomers future behavioral patterns based on historical andexisting data. While web analytics tools provide a lens to focus onthe past and recent information, adding predictive capabilities intothe mix will strengthen forecasts about how customers will respondto upcoming marketing campaigns, resulting in greater success.• Go beyond collecting customer data; conduct sentimentanalysis. Customer sentiment data is a powerful tool that allowsDemographicsOf the 176 respondingorganizations, demographicsinclude the following:√ Job title: Senior Management(34%); EVP / SVP / VP (19%);Director (21%); Manager(13%); Other (13%)√ Department / function: Salesand Marketing (54%); IT(9%); Business Management(16%); Operations (6%);Other (15%)√ Segment: IT consulting /services (22%); Software(17%); Telecommunicationsequipment & services (7%);Financial services (6%); Retail(13%); Other (35%)√ Geography: Americas (73%);APAC region (10%) andEMEA (17%)√ Company size: Largeenterprises (annual revenuesabove US $1 billion)- 26%;midsize enterprises (annualrevenues between $50million and $1 billion)- 27%;and small businesses (annualrevenues of $50 million orless)- 47%
    • Web Analytics: Marketing Beyond Online Customer DataPage 14© 2012 Aberdeen Group. Telephone: 617 854 5200www.aberdeen.com Fax: 617 723 7897businesses to understand what drives their customers behavior.Businesses often note that what the customer says they want is notthe same as what they actually want. Capturing customer sentimentinformation can solve or mitigate this challenge. Best-in-Class cantake customization to the next step by combining it with webanalytics to identify the drivers motivating their customers: theirthought processes and even their feelings. Data validates thisstrategy; companies capturing customer sentiment data are 36%more likely (34% vs. 25%) to improve the contribution of marketingprograms on top-line revenue results year-over-year.For more information on this or other research topics, please visitwww.aberdeen.comRelated ResearchCustomer Experience Management:Using the Power of Analytics to OptimizeCustomer Delight; January 2012Metric-Driven Mobile Marketing:Increase Marketings RevenueContribution; August 2011Social Media Connecting B2C Companieswith Generation Y and Z Consumers;March 2011Results Speak Louder than Words: UsingMarketing to Improve Sales Effectiveness;December 2010Web Analytics: Actionable Insights forUnlocking the Hidden Potential of OnlineData; April 2009Web Analytics: The Crystal Ball ofCustomer Behavior; April 2007Author: Omer Minkara, Senior Research Associate, Customer ManagementTechnology Group (omer.minkara@aberdeen.com)For more than two decades, Aberdeens research has been helping corporations worldwide become Best-in-Class.Having benchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provideorganizations with the facts that matter — the facts that enable companies to get ahead and drive results. Thats whyour research is relied on by more than 2.5 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% ofthe Technology 500.As a Harte-Hanks Company, Aberdeen’s research provides insight and analysis to the Harte-Hanks community oflocal, regional, national and international marketing executives. Combined, we help our customers leverage the powerof insight to deliver innovative multichannel marketing programs that drive business-changing results. For additionalinformation, visit Aberdeen http://www.aberdeen.com or call (617) 854-5200, or to learn more about Harte-Hanks, call(800) 456-9748 or go to http://www.harte-hanks.com.This document is the result of primary research performed by Aberdeen Group. Aberdeen Groups methodologiesprovide for objective fact-based research and represent the best analysis available at the time of publication. Unlessotherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not bereproduced, distributed, archived, or transmitted in any form or by any means without prior written consent byAberdeen Group, Inc. (2011a)