Pub 355: Beyond Fans and FollowersMeasuring Online Marketing CampaignsPresented October 26, 2012
Not everything that counts can be measured. Not everything that can be measured counts. Albert EinsteinWe live in a data-driven time. I can go to the gym in the morning and the exercise bike willbenchmark my workout. It will tell me how many other people did this workout. It willcompare my time on the bike today to my time on the bike yesterday.I feel like I’m meant to do something with this data. But I don’t know what it is.I feel the same way when I’m tracking my online marketing activities. There is so much datathat I can collect, but I don’t know what to do with it. I feel awash in data but not meaningfulinformation.I’m going to share with you my insights into Metrics That Make Money.We will cover 3 main things:What you need to measure and whyHow to make Google Analytics make senseAnd what useful intelligence you can glean from SMM
There are 2 things we like to measure: Things that lead to sales Sales
SalesGoogle Analytics makes it easy to track sales. You just have to know how to create a goalfunnel.What’s a Goal Funnel?A funnel represents the path that you expect visitors to take on their way to converting to agoal.It’s a deﬁned set of pages or steps.I view my cart. I click go to checkout. I complete my order.A Goal Funnel shows the funnel conversion rate, as well as the points along the path wherethe visitor abandons the task.2 Things:1. Know conversion rate so you can do some forecasting2. Understand abandonment and what needs to be optimizedReason it’s important for the non-ecommerce folks is1. You can set up goal tracking for any non-ﬁnancial conversion too like downloads, contestentries, subscriptions.Also, if you are selling online through other retailers, they have this data. They may not wantto share, but it is the info you want.You want to see the number of impressions being served on your product pages and whatareas of the site convert, plus where people abandon the task.1. So you can make forecasts and
Things that lead to sales Twitter Followers Customer Feedback RTs Facebook Fans Email Opens Website Visitors Press Mentions SalesHerding cats.Let’s call “Things that lead to sales”: our micro actions. These are the precursors to a sale.Things that have a non-ﬁnancial impact but help us understand what inﬂuences a purchase.(website visitors, fans/followers, email subscribers, recos from inﬂuential ppl, RTs frominﬂuential ppl, press mentions, email opens, feedback (insights into customers that we didn’tknow before)Many of these micro actions are about gaining permission to continue marketing to someone.It’s about earning trust. It’s quid pro quo. This for that. Action and Reaction.A customer gives you their email address, which you promise not to spam, in return forvaluable, relevant information in your email newsletter. You nurture a relationship with ablogger, or on twitter or Facebook, in order to solicit feedback, to be recommended, to earnmedia mentions, to amplify the conversation you would like to have about your books andauthors.Again, since these are inﬂuencing factors that can lead to a sale, we want to measure thisactivity.Not everything has to be about Revenue, but in my experience, when people ask “did it work”,they mean “did we make money”.
Things that lead to sales Acquisition Website Visitors, time on site Number of pageviews, repeat visits, Activation subscription (email, blog), account sign-up (proﬁle data), Fan/Follower Email Opens, Click-throughs, Retention Repeat visits Press Mention, RT, Referral Refers 1+visitors to the site; Refers 1+ visitors who activate SalesAnother way to look at those metrics is to group them into the stages of a customer lifecycle.Acquisition: users come to the site from various channelsActivation: users enjoy 1st visitRetention: users come back, visit multiple timesReferral: users like product enough to refer othersRevenue: users conduct some monetization behaviour
If you don’t know where you’re going, any road will get you there. Misquote from Alice in WonderlandAre we down the rabbit hole yet?The #1 reason why we don’t know if our online marketing activities are working or not isbecause we have not deﬁned our goals.Without clearly deﬁned goals we have no criteria for evaluating success.Your goals outline your intent. Your intent informs what you can measure.
A simple Contest • Reach a new audience or reinforce our connection to an existing audience Goal Lifecycle Action Reaction Metrics @ / RT / Comment Response Visitors Acquire Subscriptions Reach a new Listen Visit to the site Activate (email/RSS) audience Introduce Subscribe Fan/Follower Retain Return Account sign-up Return Visits @ / RT / Comment Response Repeat visits Reinforce our Retain Talk Email opens Visit the site connection to Referral Pitch CTR / Goal Funnel Act Mentions existing audience Revenue Thank Refer Referrals Referrals who convertTake a contest for example:We want to run a contest. Why? What’s the goal?To reach a new audience or reinforce our connection to an existing audience.Maybe it’s a contest to win a collection of cookbooks.We’ll do outreach to foodie blogs. Get them to talk about the contest.People will submit a comment or recipe or do some action as the entry.So we can measure the macro action = entries.But there is so much more than entries that will give us insight into the success of thiscampaign.(load graph)
Google Analytics: Annotations Monique Trottier @BoxcarMarketingShow annotations: Do you get more traffic to the website during the campaign period? Orwhen you engage in a particular action like sending out a newsletter, running an ad. Trackthis through annotations.
Google Analytics: Title- or Author-Speciﬁc SearchesShow: Are there more searches for the title or author you’re promoting?OpenBook Toronto, for example, whenever there’s a new writer in residence, you can see thespike in analytics of people coming to the site as a result of greater awareness created byOpenBook activities.If you’re actively promoting a title with a mix of online and offline, make this one of yourmetrics. Can you increase the number of people coming to your site because they’re heardabout the book and are searching online for it.
Google Analytics: Audience SegmentsIf running a blogger outreach campaign or you’re doing media pitches. You can measure thereferral traffic from those sites, but what you really want to know is which sites are sendingyou the most qualiﬁed traffic?It’s about volume + activationWho is referring you traffic that activates? Remember our Customer Lifecycle...Time on sitePageviewsPages per visitRepeat visitsMost important are those Goal Funnel. Who completes a desired action?Subscribes to the newsletterDownloads a pdfSigns up for an account and provides proﬁle dataBuys a bookYou need Goal Funnels, which we talked aboutAnd Audience segmentsCreating a segment lets you run comparison reports against that segment.(show report then how to set up)
A simple campaign to build Reputation • Use a blog to establish authority / expertise for an author. • Focus on writing good content ﬁrst and self-promotion second Goal Metrics Pagerank + Nth position in relation to competitors by a # inbound links from inﬂuential blogs certain date # bookmarks (Delicious) Google Position in Search Results Volume of organic trafﬁc per month # inbound links from inﬂuential sites X% increase of trafﬁc per month # email subscribers or fan/followers who can be directed to the site X$ per month attributable to Segment and Funnel: referrals from blog Trafﬁc that converts to salesmacro:Net Proﬁt per Sale. (Revenue - Total Expenses) / transactionsSuggested Max PPC Bid Value (Net Proﬁt per Sale * Conversion Rate)micro:number bookmarks, sharethisRSS subscribersemail subscommentsretweets@ mentions
A really simple campaign to increase Engagement • Be nice to customers who mention your company / authors / titles on Twitter Goal Metrics # positive comments sent to customers per week w/in given timeframe Increase # positive conversations # of conversations that started from those comments # additional activation pointsmicro: CTR (Click-Thru-Rate) Landing Page Arrivals Conversion Rate Gross New Subscribers Conﬁrmation Rate Net New Email Subscribers Average Cost per Click Marketing Cost Cost per Net New Email Subscriber
A problematic campaign to increase Ofﬂine Sales • Implement a promotion on social media with a speciﬁc store. • Give participants a printable campaign voucher so you can track ofﬂine sales Goal Metrics Goal Funnel: Impressions, Download voucher Form Completion; Downloads $ monthly sales monthly sales % increase in store trafﬁc over monthly store trafﬁc pre-promo period Attract an audience in a particular area trafﬁc from particular areamacro:cost per leadwhat reach at what cost
A simple campaign to increase Online Sales • Use Twitter or Facebook to inform prospects about special promotions. • Exclusive, limited-customer/limited time offers. Goal Metrics Increase monthly sales monthly sales attributable directly to SMM Segment & Funnel: new customers Increase % value from new customers attributable directly to campaign Increase conversions from Segment & Funnel: monthly revenue Twitter trafﬁc generated from customers from Twitter Repeat customers from that group Retain X% of new customers Unsubscribe ratesReach large numbers of readersIf you’re doing your own ecommerce, see what things you can do to compel purchasers toadd this to their proﬁle.macro:cost per leadcost per conversionaverage purchase valuemicro:referralsinquiriescoupon downloads
Social Media Measurements Content Platform Ratio of Posts to X Peak Conversion Resonance Opens Day Email Opens CTR Time of Day Unsubscribes RTs Day Twitter RTs @ Time of Day Recos Like Day Facebook Interactions Share Time of Day Comment Monique Trottier @BoxcarMarketingBeyond time-based campaigns, there’s the general, day-to-day work to maintain and buildyour audience in preparation for future campaigns.What are the successes?Time cost of developing content so, how do know if it’s worth the time?Likely have a certain number of tools that you use on a regular basis: email newsletters,Twitter, Facebook, Flickr, YouTube, Slideshare.Each tool serves a speciﬁc purpose.Each tool should have speciﬁc goals and metricsHere’s one way to look at it.How am I supposed to ﬁnd the time to also track what I’m doing.Less is more.This is not a make work exercise.This is about insights so you can optimize your activities.You choose how far down the rabbit hole to go.Make a Hypothesis about your Customer Lifecycle and those Precursors to ConversionChoose 5-10 conversion points that are directly related to business objectivesMeasure & reﬁneFocus on conversion improvements
Data is black and white• The number tell you if it’s working or not working.• The numbers do not tell you how to ﬁx it.• The job of a web analysts is to understand and communicate the story behind the numbers. Monique Trottier @BoxcarMarketing
ABC Metrics Acquisition: Where do New/Return Visitors come Acquisition from? Activation Behaviour: What do Retention they do on the site Referral Revenue Conversion: What precursors inﬂuence sales?So when I’m looking at Google Analytics, I’m thinking about the data as it relates to thosecustomer stages.
Acquisition • 161.01% increase in visits starting in Fall 2011 season • Where did those visits came from: Direct, Google, Paid, Facebook • If Paid, what’s the Cost per Click?
Cost per Click• Pay per Click (PPC) advertising• Cost per Click (CPC) is the amount you pay each time someone clicks your ad• If you spend $5,000 on ads and get 10,000 clicks, this is a CPC of $0.50 Cost ÷ Clicks = CPC $5,000 ÷ 10,000 = $0.50
Behaviour • 30 days before a book event is when visitor trafﬁc starts to increase. • 1 week before launch night is the sharpest increase • As expected, the top content pages during each spike are for the featured book
Conversions • Trafﬁc to tickets page follows similar patterns to the total visits. • 1.59% ecommerce rate (orders/visits) • New Visitors generate 97% of transactions, Repeat Visitors only 3%
Conversion Rate% of visitors who convert to a desired action: buy, sign-up, downloadIn ecommerce, it refers to the percentage of Visits that convert to OrdersNumber of Orders ÷ Number of Visits = Conversion Rate (E-commerce)As an example, a website that generated $100,000 of sales through 2,000orders in a month with 40,000 visits, has an Average Order Value of $50 andConversion Rate of 5% (which is quite high): $100,000 ÷ 2,000 = $50 AOV 2,000 ÷ 40,000 = 0.5 = 5% CRThis means that 5 out of 100 visits turn into an average of $50 revenueThis can then be used to project revenue for a campaign aimed at generatinganother 5,000 visits, in the following manner:Number of Visits × CR × AOV = Projected Revenue5,000 × 5% × $50 = 250 × $50 = $12,500
What Channels Complete Ecommerce Transactions?• The Trafﬁc Sources to Tickets show that Search, Referral, Social Media and CPC trafﬁc are the best drivers
Off-Site: Social NetworksFacebook performs best for volume of trafficBlogger is a great channel bringing second best traffic and longest duration of visit, secondonly to YouTube.I’d give up on Yahoo! Answers but spend more time on LinkedIn.
Month over Month Top Reporting Metrics Acquisition Total Visits How do we acquire visitors? Visit Sources If paid trafﬁc, is it working? Visits to Tickets by Channel Activation Pages/Visit Bounce rate Retention Average time on site % repeat visits Referral Non-transaction activities: What behaviour do they Visit performance pages engage in? Visit blog If outreach, what sites are most Sign up for eNews valuable? Enter a contest Exit via social media links Revenue Ecommerce Conversion Rate How many conversions? Number of transactions If time on marketing activities, Average order value which perform best? % from new vs. return visitorsInstead of just looking at data after the fact, better to look at comparative data month overmonth during the season.Looking for actionable data: what does it tell you to doIf you’re paying for traffic, is it working?If you’re doing outreach, which sites are most valuable?If you’re spending time on marketing activities, which perform best?
Quiz Imagine you’re running an online advertising campaign promoting Louise Penny’s bestselling novel. • The goal is 2,000 pre-orders. • The cost of the book is $29.99 • You’ve spent $5,000 on ads. • Your ads received 400,000 impressions & generated 200 pre-orders to date. What is the conversion rate for pre-orders from this ad campaign? What is the net income (total revenue - expenses) this ad campaign generated?200 / 400,000 * 100 = 0.05%($29.95 * 200) - $5000 = $998
Budgets, Costs and Time• Approximately 2 hours per channel per week in maintenance mode• 50-100 hours for a 2-week contest or in active campaign mode• $200 for contest badge or ad• Facebook contest using Antavo, max. $300• Facebook ads, est. $1000-3000• Media release Newswire.ca, est. $300-600• Publicity $3-5000 per city• Landing page: $1500-4000• Microsite: design $2500, programming Wordpress $5-7000• Display Ads on blogs: $750-1500+• Video: $3-5000
Next ClassDarren Barefoot and Julie Szabo, “Chapter 6: Measuring Success: How to Monitor theWeb,” Friends With Beneﬁts, 99-114.Social Media ROI: Socialnomics, http://youtu.be/QzZyUaQvpdcOlivier Blanchard, “Basics of Social Media ROI,” http://www.slideshare.net/thebrandbuilder/olivier-blanchard-basics-of-social-media-roiJay Baer, “6 Social Media Success Metrics You Need to Track,” Social MediaExaminer, http://www.socialmediaexaminer.com/6-social-media-success-metrics-you-need-to-track/