Online Demand Generation - Spur Interactive 2009

Online Demand Generation - Spur Interactive 2009 - Presentation Transcript

Demand Generation: Strategy and Metrics Steve Latham May 2009

Agenda   What is #^*#! is Demand Generation?   Components of a demand gen program   The Roles of Online Media   Engagement paths   Planning   Execution   Measuring results   Calculating ROI   Top 10 worst / best practices 2

Demand Generation Overview My definition has two parts:   Creating awareness and demand for your brand   Direct Response requires brand awareness   Capitalizing on brand to produce sales It is NOT:   Tactical / quick fix   Silver bullet Comprehensive program entails:   Media (paid and earned)   Defined user paths and actions   Robust measurement   Ongoing optimization 3

How Most View Online Media Mix* Search Display E-Mail Co-Reg Social Paid + Rich, Flash, House & 3rd Branded / Networks, Blogs, Natural Video, .Gif Ads Party email Unbranded Photos, Videos Leads Prospects Sales $$$ *Was not room to include Afﬁliate, Comparison Shopping Engines, Contextual Text Ads, etc. 4

How We Should View Online Media Awareness Interest   (Consideration / Preference) Decision $$$ 5

Roles of Online Media Search Display E-Mail Co-Reg Social CPC CPM/CPC/CPA CPM/CPA CPA ??? Stage Search Display Email Co-Reg Social Awareness Broad Targeted 3rd party Targeted Mentions terms ads sends offers Interest Narrow Retargeted 3rd party ___ Recʼs terms ads sends Decision Branded Retargeted Targeted ___ Reviews terms ads offers *Was not room to include Afﬁliate, Comparison Shopping Engines, Contextual Text Ads, etc. 6

Engagement Paths (2 examples) Impression Impression Impression Impression Paid Click Natural Click Visit / Action Display Display E-Mail Display Search Search Direct Nav Vendor #1 Vendor #2 3rd party Vendor #3 “Lap Band” “ABC Houston” Day: 0 30 60 Paid Click Paid Click Impression Impression Paid Click / Action Search “Weight loss Search Display E-Mail Search surgery” “Lap Band” Retargeted 3rd party “ABC Houston” 7

Planning Develop Media Plan   Define roles / budget Define Metrics   Segment by stage Define Offers and Actions   For each audience   At each stage Define + Segment Audiences   Demographic segments Get buy-in   Purchase cycle / stages from your   Their needs at each stage team 8

Execution Ongoing Optimization   Paid media   Landing pages Reporting / Analysis   Media-speciﬁc   Holistic Active Monitoring   Impressions   Clicks / Visits   Actions / Engagement Buy / Trafﬁc / Test   Ads Lather,   Web pages Rinse,   Tracking Repeat 9

So… how do you know if itʼs working? What do we measure? What does it mean? 10

Measure that which Indicates Value Basic Metrics Engagement metrics   Impressions   % Returning   Clicks   Frequency of visit   Visits   Pages viewed per visit   Page views   Time on site   Registrations   Transactions Web 2.0 Metrics   Posts / Participation   Viewing Videos or Photos   Uploading content   Sharing / Posting 11

Look Beyond the Last Click   Decision cycles are not linear   Users often require many touches before taking action   Credit is often attributed to the last click   Design ﬂaw of most analytics platforms Case Studies: • FedEx Kinkoʼs: 20% of “search” leads had display cookies •  After adjusting, reduced display CPL by 50% • Regional health care provider: 50% of leads required 5.5 touches before taking action • Beauty product: average purchase took place after 3rd visit   Takeaway: understand which touch points drive action   engagement mapping, clickpath analysis, i-mapping 12

Donʼt Forget the Wingman  While SEM usually gets the credit for scoring… …there is usually an assist   Display ads   General search terms   Television   Attribute credit where it is due …to the Wingman!   Display should be viewed as a supporting medium   Creates awareness and demand for your brand   Drives better ROI from search 13

Take a Holistic View Some results are directly traceable… but many are not!   Due to cookie deletion and multiple machines Case Studies: •  B2C retailer: 30% increase in home page trafﬁc when display campaign launched (beyond paid clicks) •  Bank: 4 “home page” actions for every traceable 1 action   Create a baseline   for comparison   Be mindful of the  seasonal impact   Agree upfront how to   attribute credit 14

A New Way To Index Performance 12 Month Google Search Index: WIDGET  3  Understand the Context of your 2.5  environment – use Google Trends 2  as a proxy for Demand. 1.5  1   1.40   0.5   1.20   0   1.00    0.80    0.60   Show your RELATIVE performance by indexing your  0.40   \"Google Trends ‐ 30 Day Index\"  results vs. Google Trends \"Online Leads ‐ 30 Day Index\"   0.20    ‐     Jan 3 2009  Jan 10 2009  Jan 17 2009  Jan 24 2009  Jan 31 2009  15

Communicate in a Way that Works Daily and Cumulative LeadsCommunicate Information, not data Executives LOVE Campaign Summary Dashboards! # Leads by Outlet Cost per Lead by Outlet 16

ROI 101 (warmup slide) Campaign assumptions: Investment $10,000 Impressions ($5 cpm) 2,000,000 Visits (direct and indirect) 10,000 Registration (lead) rate 3% Lead Close rate 10% Revenue per customer $2,500 Expected Results: Another way to view it: • 300 leads • Value per visit: $7.50 • 30 customers • Cost per visit: $1.00 • $75k in revenue • $7.50 ROAS* *Direct ROI captures only part of the value. Brand value of 2mm impressions plus 9,700 visits that did not register is of equal if not greater value. 17

How Do We Value Engagement? Determine how Actions  Intent (retailer example) Action Value Visits Indicates awareness Registrations Indicates consideration Store lookups Indicates preference Coupon Downloads Indicates action Tell A Friend Indicates loyalty Forecast how Intent  $$$  Some % of those who show Intent will buy  Do the math and apply across each set of actions  Use common sense to normalize results 18

ROI Methodology Project Value Normalize Divide by Deﬁne Assign Close for each (average) Cost or Metrics Rates action Values investment Such as: Forecast: Project: Strengthen by: Net it out: •  Visits •  What % will •  Revenue, •  Eliminate •  Return on purchase? Margin, NPV outliers Spend •  Registrants •  Based on •  Based on action •  Separate by •  Return on •  Friend invites actions audience Investment •  Based on •  Customers •  Based on audience •  Prospects •  Based on •  Coupon D/Ls audiences •  Customers audience •  Customers •  Prospects •  Customers •  Store lookups •  Prospects •  Prospects 19

Online / Ofﬂine Purchase Funnel / ROI Awareness   (Visits) Consideration   (Product Page Views) Preference   (Add to Cart) Action (Purchase) 20

Ofﬂine Purchase Funnel / ROI Awareness   (Visits) Consideration  (Product views,   long visit, etc.) Preference  (Register) 21

Top 10 Worst and Best Practices Worst Practices Best Practices Make big bets before testing Test, test, test… then invest One-off tests Strategic planning Overly-Ambitious Expectations Under-promise, Over-deliver Measuring each buy based on Attributing credit for assists, not directly attributable results just scores Silo-based approach to assessing Holistic view: understand role of performance each media channel. In-house call center (phone leads) Outsource call center operations Expecting perpetual success Understanding diminishing returns Chasing shiny new objects Business case before investing Insourcing specialized roles Hire experts Hording information Sharing information with agency 22

In Closing… When managed properly, nothing beats Online for demand generation Success requires…   Strategic approach to planning   Creativity   Common sense   Willingness to fail (as long as you learn!) Letʼs stay in touch!   Check out our blog http://blog.spurinteractive.com   Follow me on Twitter www.twitter.com/stevelatham   Find me on Facebook and LinkedIn. 23

About the Presenter Steve Latham is the founder and CEO of Spur Interactive, a strategic interactive marketing agency. In this role, Steve has planned and managed successful campaigns for leading brands, including ConocoPhillips, FedEx Kinko's, Southwest Airlines and The Scooter Store, to name a few. Steve is an accomplished industry lecturer and an active member of the business and non-proﬁt community. Steveʼs articles on interactive strategies have been published by MediaPost, iMedia Connection and Marketing News. He has been quoted in PR Week, Fortune and CNN.com. Steve received an MBA from Harvard Business School and a BBA from the University of Oklahoma. You can ﬁnd Steve on Facebook and on Twitter (stevelatham) 24