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Online Test, Target and Measurement - Nancy Shaver, Experian Marketing Services
 

Online Test, Target and Measurement - Nancy Shaver, Experian Marketing Services

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Online Test, Target and Measurement...

Online Test, Target and Measurement

The pressure to deliver results and show ROI for all marketing spend is further complicated by market pace changes and economic climate. Learn how to find the optimal mix of ideas, and do it faster to increase ROI on marketing spend and provide relevant content and interactions to target audiences through the different channels including web, email, and mail.

* Nancy Shaver, Consulting Principal, Experian Marketing Services

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    Online Test, Target and Measurement - Nancy Shaver, Experian Marketing Services Online Test, Target and Measurement - Nancy Shaver, Experian Marketing Services Presentation Transcript

    • Online Marketing Summit
      Washington DC, July 2010
      a world of insight
      Online Test, Target and Measurement
      Nancy Shaver
      Consulting Principal
      Marketing AnalyticsExperian Marketing Services
      1
    • Bio
      Nancy Shaver is a Consulting Principal for Experian Marketing Solutions’ Marketing Analytics team. In this role, she leverages both her strategic vision and extensive hands-on direct, digital and database marketing experience to help Experian’s clients develop and implement achievable marketing solutions that deliver measurable business value. Through a combination of her work across a range of clients including retail, telecommunications, consumer packaged goods, and financial services, as well as her deep operational and strategy experience, Nancy is able to help clients translate their goals into strategies and practical and effective initiatives which link a positive customer experience with bottom line results.
      Nancy has over 25 years of experience leading marketing organizations as well as delivering data, analytical, and technical services. Prior to joining Experian, Nancy was a principal and founder of 6C Consulting, specializing in optimizing multichannel customer marketing effectiveness. She has also held senior management positions at MCI and Claritas. Other experience includes participation in a campaign management software start-up, as well as extensive account and operations management at a marketing service provider.
      Nancy has been a speaker at industry conferences and has been a board member of the DMAW Educational Foundation and TransAmerica Marketing. Client relationships have included several of Experian’s large strategic accounts.
      Nancy holds a Bachelor of Arts from Wellesley College and attended the MBA program at Mary Washington University.
      • Market Situation
      • Challenges… and opportunities
      • Its all in the approach
      • Drinking the Koolaid
      Session agenda
    • Experian overview
      Marketing Services
      Credit Services
      Interactive
    • Part of $3.8 billion Experian
      Experian Marketing Services moves marketing forward with predictive insights that improve how marketers target and engage their customers across both traditional and digital media
      Marketing Services
      Credit Services
      Interactive
      Decision Analytics
      Experian Marketing Services
    • Unparalleled data assets that give a 360º customer view
      Strategic, data-driven expertise to optimize and grow programs
      Technology to target, segment and engage across channels
      • Industry's largest supply of consumer data
      • Data includes:Demographics, attitudes, lifestyles, media habits, purchases, auto and credit scores, internet usage, life events, etc.
      • Rich history as secure, trusted data provider
      • Over 30 years of proven analytical expertise
      • Analysis to understand past marketing activities
      • Predictive models toidentify future success
      • Establish business strategies to optimize programs and ensure continued growth
      • Best-in-breed email marketing for enterprise
      • Cutting edge real-time consumer profiling on web, mobile, TV
      • True multi-channel data integration
      • Industry leading address verification & datahygiene tools
      Core expertise
      Data
      Analytics
      Platforms
      Experian Marketing Services
    • Q1 – Why did the French team crash out?
      Q2 – Why did the Italian team crash out?
      Q3 – Why did the England team crash out?
      Q3 – Why did Spain win the World Cup?
      Quick survey
      World Cup
    • Demand for measurable returns have accelerated
      Channel proliferation continues
      Elevated consumer expectations
      Program performance measures are complex and challenging
      Historical marketing “silos” make integration difficult
      Where we are
      New Marketing Ecosystem
    • Trends in the marketplace
      CMO Council’s latest State of Marketing report
    • Trends in the marketplace
      CMO Council’s latest State of Marketing report
    • Digital landscape
    • External
      Internal
      Marketers challenges
      External factors
      • Media breadth and influence continually shifting
      • Pervasiveness of technology
      Shifting customer dynamics
      • Demographic and lifestyle changes
      • Increase in the level of choice within customer viewpoint
      Marketplace changes
      • Current climate altering consumer behavior
      • Rapidly changing marketing conditions
      • Move towards global markets increasing
      Data growth
      • More information sources – external and internal fragmentation
      • Discipline and time to absorb in granular nature difficult
      Internal obstacles
      • Staffs are over-worked, limited budget for add’l FTE
      • Building a COE not realistically feasible within timeframes
      ROI based decision making
      • Shift to accountable marketing and scrutiny
      • Expectations of doing move with limited budgets
    • Market place situation
      Current needs – a mixture of old and new
      How do I segment and target my prospects in the new media environment?
      Can’t we use purchase history to tell me what I should be offering each customer?
      We have to cut circulation budgets. How do we do that while preserving revenue?
      How do we correctly attribute sales to direct mail, email, web and media?
      We’ve churned through a lot of consumers. How do I get the most value out of my formers?
      How do I optimize contacts across channels - direct mail, email and web?
      Reducerisk
      We’ve optimized response of each campaign. How do I optimize the value of the customer to us?
      I’m losing as many customers as I acquire every year. What can I do?
    • Market place situation requires a shift
      Defensive posture
      • A focus on customer programs
      • Reduced scope, scale and spend
      • Optimization, a common core theme
      Change continues
      • Competitive position and industry players
      • Consumer attitudes, behaviors and media consumption
      • Customer aging
      • Digital technology and media advances
      Analytic refresh and upgrade cycle
      • Segmentation systems and profiles reflecting who customers were, not who they are
      • Out-of-date acquisition strategies and prospect models
      • Customer targeting systems that do not reflect changed customer expectations
      Shifting to pro-active position has become more complex than just having a plan – it is imperative understand and assimilate all information and channels available
    • What you need to know…
      …to plan to address their needs:
      What each customer buys?
      Who exactly are my customers?
      Where are they outside of your brand experience?
      Customer Lifetime Value
      Where each customer is all the time?
      Their cross-channel usage
      Are they your top brand advocates?
      Two-way communication with the customer
      Top of mind competitors
      Click-stream information
      What is the right marketing investment for them?
      Deep segmentation and understanding
      Customer Satisfaction and Loyalty
      Why do they buy from you, and how do they buy from you?
    • Applies to all channels
      Right audience
      Customer intimacy
      Right time
      Speed-speed-speed
      Right medium
      Fact driven
      Right message
      Disciplined approach
      Right frequency
      Appropriate and Robust Toolset
      Applicable to all needs
      Acquisition, retention, conversion, growth/upsell
      Success drivers and their prerequisites
    • 250% increase in engagement
      15% increase in new accounts
      $1M increase in monthly revenue
      12.7% increase in customer engagement
      To drive results like…
      Increased overall revenue per email message by 54%
      187% increase in web site conversion
    • A few thoughts on website and testing concepts
      All concepts are not created equal
      • Discard bad ones as soon as you can
      • Testing bad concepts in different combinations and permutations is like rotating an ineffective player in different positions or formations in a sports team
      Don’t make customers learn your site
      • Follow industry standards as much as possible, unique may look good but may confuse customers
      • Unless some approach is critically important, visitor confusion
      Avoid the best of the worst
      • Unless concepts and ideas are grounded in strategy on you may be testing a few bad options and picking the least evil
      • Pick the optimal of the sensible
      Do not wait for perfection
      • Focus on pragmatic optimization, you don’t have time to wait for the perfect page, neither do your customers
      • Continual incremental improvement should be the goal- build a culture of testing and learning
    • Four key strategies
      Identify your true audience
      • Target through truly understanding and mapping your customer base to find trends and themes
      • Mine the information that already exists to build a more responsive position towards your customers
      Improve traction with customers
      • Create an intimate one-to-one dialog with each customer that maximizes conversion rates
      • Understand your current and prospective customers’ needs, and develops a long-term relationship to maximize lifetime customer value.
      Scalable and actionable testing
      • Ability to test the needed combinations of content quickly
      • Built against robust multidimensional segments based on a best-in-class methodology and a clear roadmap
      Direct impact for ROI Marketing
      • Targeting Cross-sell, up-sell, pipeline velocity, opportunity identification = improved ROI and Customer Lifetime Value
      • Testing of multiple channels against actual target audiences – measuring fiscal impact
    • From
      To
      AnonymousUnknown and unmarketable based on broad audience
      IdentifiableClearly defined customer road map that is directly connected to potential revenue and transactions
      Media spendingArbitrary media investment based on best knowledge
      Customer and experience investmentContent, connections and code that continually serves the customer through targeted experience
      Mass offeringDesigned around defined target segments
      Individual offerDesigned around unique needs of each and every target customer
      Estimated marketing impactCorrelated or inferred advertising performance
      Actual marketing impactTest / control scenarios, incremental lift and ROI analysis, constant optimization
      Cursory customer insight collection
      Continuous customer based monitoring and analysis
      Make key shifts in approach…
    • How does this happen?
      Design a disciplined methodology
      1. Establish
      Strategic Objectives
      • Outline strategic objectives
      2. Establish Targets and Metrics
      • Define success metrics and create benchmarks
      • Define specific targets through deep-dive analytics
      6. Continuous Improvement
      • Put tracking mechanisms in place
      • Establish measurement methodology
      • Analyze results
      3. Track, Test, and Analyze
      • Identify and validate desired learning objectives for continuous improvement
      • Distribute meaningful results to the right teams
      4. Distribute Results
      • Use results and analytics for:
      • Development of ongoing actions
      • Strategy development & refinement
      5. Action Planning
    • Analytics Tools
      Tracks and report on visitor behavior
      Tells us what's happening on our site
      Trends visitor patterns allow for test/hypothesis
      Tools are part of a program, not the full program
      Program Optimization
      Content delivery system with a statistical reporting interface
      Tests which page performs best
      vs
      Makes recommendations that help improve the overall visitor experience
      The goal is simple:
      Organize information to actively listen and respond to your customers
    • In Summary
      All Analysis Begins with Business Objectives
      Customer Data is Essentialto Optimization
      Methodology is Thorough & Transparent
      Insights are Based on Statistically Valid Metrics
      Recommendations are Actionable & Impactful
    • © 2010 Experian Information Solutions, Inc. All rights reserved.Experian Public.
      24
      Case study
    • Starts with a question and a measurable outcome
      A suitable DOE is constructed, test coded
      Test experiences randomly exposed to traffic
      Outcomes are measured
      Results analyzed, decisions made
      More questions… more tests…
      Anatomy of a test
      Traffic
      Random split
      A
      Control
      B
      C
      $$
      $$$
      $$$$
    • Example
      Challenge:
      • Numerous elements on page contributing to consumer product sales
      • Which elements have the greatest impact on results is unknown
      • Revenue increases needed quickly
      • Goal:
      • Increase the revenue per visitor by optimizing sales of consumer products
      Experian.com U.S. home page
    • Methodology:
      • Seven elements were tested with two variations each, yielding a potential 128 page versions
      • Using partial factorial test, eight-page versions were tested
      Test elements
      6
      1
      2
      3
      7
      4/5
      Winning design @ 100%
    • Anatomy of a test
      eCommerce checkout process
      Shopping cart
      Register
      Checkout
      Review and submit
      Order confirmation
      – 57%
      – 13%
      – 12%
      – 3%
    • Anatomy of a test
      eCommerce checkout process
      Incorporate registration into shopping cart
    • Anatomy of a text
      eCommerce checkout process
      Shopping cart
      Checkout
      Review and submit
      Order confirmation
      Register
      – 32%
      – 16%
      – 3%
      – 0.5%
      • Significant reduction in drop off at key first step in the process
      • Overall visit to order rate for the site increased 3%
      • Significant differences in performance from new versus returning visitors
      • + 5% lift in visit to order rate for new visitors
      • – 18% lift in visit to order rate for returning visitors (this group was then eliminated from test group)
      • Type of product purchased did not impact performance
      Key findings
    • Methodology:
      • Seven elements were tested with two variations each, yielding a potential 128 page versions
      • Using partial factorial test, eight-page versions were tested
      Test recap
      Results:
      • +11% lift in overall eRPM
      • Main ad button (text), main ad text, image and transactional ad space were key drivers within this design
      Experian.com daily eRPM
      Winning design @ 100%
      Test window@ 33%
    • 138% lift in conversion rate (pre vs. post testing)
      >100% increase in revenue / month (pre vs. post testing)
      Why we continue to test
      Results, results, results
    • That showing multiple alternatives vs. a single version of content produces learning's and leads to data driven decisions
      “Relevant content" is determined by our visitors and that not all visitors will prefer the same version of content
      That the amount of testing we do and the speed at which we execute will have a significant impact on results
      That creating a “dialog” with our visitors (based on their intent) is the only consistent way to increase online performance over time
      Core tenets of testingWe have learned…
    • Q&A
    • Speaker Contact Info.
      • Nancy.Shaver@Experian.com
      • 904. 217.4801
      36
      Thank You/Credit Slide
    • 37
      Thank You
      Visit
      www.onlinemarketingsummit.com
      for more information
      Follow us @OMSummit