This talk was given at the AlphaTerra Digital Marketing Conference held on 20 Nov 2012 at Jakarta, Indonesia. The audience consisted of large advertisers who are new to digital marketing. In this talk I outline a 5-step process for setting up an actionable framework for measuring KPIs and goals. The aim is to have an outcome-driven strategy that is backed by a strong foundation of measurement. The role of the analyst is not to simply measure but to also take action based on the insights gleaned on the data. The actions taken should be aligned with meeting and exceeding the organization's strategic (not just marketing) objectives.
Overcoming the Seduction of Data - AlphaTerra Digital Marketing Conference - 2012-11-20
1. Overcomin
a kum
aar
g the
Vino
a j Vij
ey
ics.c
om
Seduction
of Data
t
naly
ark linea
a j@sp
vino
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@vin
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o/v vlink
v njv.c
2. About this presentation
• Presented on Tue 20 Nov 2012 at the AlphaTerra Digital Marketing Conference
2012, in Jakarta, Indonesia.
• PDF copy available at http://vnjv.co/alphaterra
@vinoaj
3. Measurement
More important today than at any
other time in digital marketing
@vinoaj
7. #2. Caught up in vanity metrics
Impressions
Clicks
CTR
Reach
@vinoaj
http://www.flickr.com/photos/centralasian/5829549813/
8. #2. Caught up in vanity metrics
Impressions
So What?
Clicks
CTR
Reach
What difference has this made to my
business?
@vinoaj
http://www.flickr.com/photos/centralasian/5829549813/
9. #3. Where do I start?
Owned media
Data, data, data!
Desktop site
Mobile site
• Clicks
• Visits
Social media • Impressions
Mobile apps
presences
• CTRs
• CPCs
Paid/Earned media
• CPAs
Facebook
Twitter
• Bounce rates
• Exit rates
AdWords
YouTube
• Unique visitors
• Conversions
• …
@vinoaj
11. Who am I?
• Vinny
• 2012 - Chief Consultant /
Founder – Sparkline
Analytics
• 2007-2012 – Senior
Conversion Specialist,
Google Southeast Asia
@vinoaj
12. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
2
What are the KPIs and
KPI & Goals Map
Goals that matter?
3
What are my action
Contingency Plans
plans?
4
How do I measure my Implemented
KPIs and goals?
measurement tools
5
Increase in conversion
Monitor & Action
rates
@vinoaj
13. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
@vinoaj
14. What is your organizational strategy?
• Brand • Brand • Volume
• Cost • Innovation
Recall
Recall
• Product Reduction
• Diversify
• Free Users
• Signups
Development
• Innovation
• Exit
• Paid Users
• Loyalty
• Word of • Brand
Mouth
Recognition
@vinoaj
15. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
2
What are the KPIs and
KPI & Goals Map
Goals that matter?
@vinoaj
16. Too many marketers are preoccupied with
macro goals
Number of sales
Number of items per basket
Average order value
Macro ($)
goals
Source: McKinsey, 2009
@vinoaj
18. Setting Meaningful KPIs & Goals
Awareness
Evaluation
Purchase
Loyalty /
WOM
# impressions
# signups
# paid users
Return visits
# new visits
# referrals
# sales
# mentions
KPIs
# mentions
# likes
# in-app # referrals
purchases
Video
engagement
Time on site User signs up
User upgraded
Referral made
(new visitors)
Referral made
Product Referral signup
Pages /
purchased
Goals
session (new Referral signup
visitors)
In-app
purchase
made
@vinoaj
Macro ($)
19. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
2
What are the KPIs and
KPI & Goals Map
Goals that matter?
3
What are my action
Contingency Plans
plans?
@vinoaj
20. Action is more powerful than
measurement
Impressions
So What?
Clicks
CTR
Reach
What difference has this made to my
business?
@vinoaj
http://www.flickr.com/photos/centralasian/5829549813/
21. Action plan (a branding example)
Strategic Objectives
If KPI or Goal
Drops by
Take these Actions
• Volume
• Cost Reduction
New Visitors
8%
• Shift budgets to channels
delivering high new visitor
Funnel Stage
rates
• Test ad copy
• Awareness
• Broaden targeting
Facebook 3%
• Create new content with
Likes
different tones
• Increase velocity of FB ads
to recover likes
Video 5%
• Re-evaluate viewer
engagement
demographics
• Freshen content
@vinoaj
22. Action plan (an ecommerce example)
Strategic Objectives
If KPI or Goal
Drops by
Take these Actions
• Volume
• Cost Reduction
# Purchases
5%
• Test calls to action
• Test description on landing
Funnel Stage
page
# Purchases
10%
• Modify checkout process
• Purchase
New Visitors
8%
• Shift budgets to channels
delivering high new visitor
rates
• Test ad copy
• Broaden targeting
@vinoaj
23. Also have plans for positive events
Strategic Objectives
Increases
If KPI or Goal
Take these Actions
by
• Volume
• Cost Reduction
# Purchases
5%
• Increase budgets for high-
converting channels
Funnel Stage
• Encourage word of mouth
# Purchases
10%
recommendations
• Purchase
New Visitors
8%
• Ramp up offline advertising
• Implement retargeting /
remarketing
@vinoaj
24. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
2
What are the KPIs and
KPI & Goals Map
Goals that matter?
3
What are my action
Contingency Plans
plans?
4
How do I measure my Implemented
KPIs and goals?
measurement tools
@vinoaj
26. Make life easy with Google Tag Manager
• Replace 100s of lines of JavaScript with:
<body>
<!-- Google Tag Manager -->
<noscript><iframe src="//www.googletagmanager.com/ns.html?id=GTM-VH7G"
height="0" width="0" style="display:none;visibility:hidden"></iframe></
noscript>
<script>(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':
new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)
[0],
j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src=
'//www.googletagmanager.com/gtm.js?id='+i
+dl;f.parentNode.insertBefore(j,f);
})(window,document,'script','dataLayer','GTM-VH7G');</script>
<!-- End Google Tag Manager -->
…
…
</body>
@vinoaj
27. Google Tag Manager – roll out tags from a web
interface
Sign up now:
https://google.com/tagmanager
• Reduce complexity of tag rollouts (no need to beg IT every
time!)
• Speed up page load times
@vinoaj
28. Coming soon: Universal Analytics
Sign up now:
https://services.google.com/fb/forms/
analyticspreview/
• Moving from cookie-centric to user-centric view
• Setup & management a lot less technical
• Faster load times and smaller cookie sizes
@vinoaj
29. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
2
What are the KPIs and
KPI & Goals Map
Goals that matter?
3
What are my action
Contingency Plans
plans?
4
How do I measure my Implemented
KPIs and goals?
measurement tools
5
Increase in conversion
Monitor & Action
rates
@vinoaj
30. Most companies I speak to today
✔"
Are you collecting
data?
Is someone
dedicated to looking
✖" at that data on a
daily basis?
Are they
✖" recommending
actions in response?
Do they have a voice
@vinoaj
✖" within your
organisation?
33. Don’t leave it too late
I must admit, the work you did for us has
helped me understand and appreciate the
importance of landing page testing and
design. This function is lacking on our team,
however I’m planning to bring someone
onboard real soon.
Mark Vozzo
Online Manager - Head of Inbound Marketing (APAC),
Salesforce.com
@vinoaj
39. 10% increase in sales
Speaker Notes
“We knew that their [Polka Dot Bride’s] audience would
be receptive and it was a natural choice to partner with
them,” he says. “Together we ran a competition for
their readers to design and win a pair of wedding shoes
on Shoes of Prey. This helped kick-start the launch of
our range of wedding shoes, and we’re seeing great
sales as a result.” Michael credits the 10% uplift in
sales following the release of the new wedding shoe
range to this intelligent approach.
@vinoaj
40. “So much happens around
us that we don’t always
know, and Intelligence
Alerts allows us to become
aware of these ‘unknown
unknowns’ and make sure
we’re responding
effectively.”
Michael Fox, Co-Founder & Director of
Operations, Shoes of Prey
@vinoaj
42. 1
What matters to my Objectives to anchor
Measurement 101
business?
digital strategy
2
What are the KPIs and
KPI & Goals Map
Goals that matter?
3
What are my action
Contingency Plans
plans?
4
How do I measure my Implemented
KPIs and goals?
measurement tools
5
Increase in conversion
Monitor & Action
rates
@vinoaj
43. 1
Who should I be focusing Customer segments
Measurement 201
on?
defined in your tools
2
Am I viewing my data in a Custom reports and
meaningful manner?
custom dashboards
3
Am I looking beyond last- Frameworks for multi-
touch attribution?
channel analysis
4
Am I giving my customers Usability studies and
what they need?
voice of customer
5
Increase in conversion
Monitor & Action
rates
@vinoaj
44. Don’t get caught up in vanity metrics
Impressions
So What?
Clicks
CTR
Reach
What difference has this made to my
business?
@vinoaj
http://www.flickr.com/photos/centralasian/5829549813/
45. Terima kas
aar
ih!
a j Vij
ey a kum
ics.c
om
Q&A
Vino
t
naly
ark linea
j@sp vinoaj@spa
vino
a
rklineanalyti
@vin
oaj
edin
cs.com
v njv.c
o/v vlink @vinoaj