Revenue Attribution - Ted Stites, Numeric Analytics


Published on

Attributing revenue to online advertising - from click to lease. A presentation by Ted Stites, Vce President of Consulting at Numeric Analytics to the Apartment Internet Marketing Conference 2010 -

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Revenue Attribution - Ted Stites, Numeric Analytics

  1. 1. AIM 2010<br />Revenue Attribution<br />Ted Stites<br />Vice President of Consulting<br />
  2. 2. Objective<br />The purpose of this discussion is to identify the challenges, required data elements and components in answering the question; What is Working?, with Revenue Attribution.<br />
  3. 3. The Tough Questions<br /><ul><li>How many leads did each campaign drive?
  4. 4. How much revenue did a particular ILS drive?
  5. 5. Should I be doing Social Media?
  6. 6. What is working?</li></li></ul><li>Common Challenges<br /><ul><li>Many are wrestling with these questions.
  7. 7. Similar challenges to retail businesses.
  8. 8. Seems like a simple question, but can have some complex answers.
  9. 9. Many approaches to answering these questions. One is applying Revenue Attribution Models.</li></li></ul><li>Sign of the Times<br />What percentage of your program budget (excluding personnel/salaries) is spent on online media today? What percentage of your program budget do you predict will be spent on online media five years from now?<br />Source: “Next-Generation Marketing and Measurement,” a commissioned study conducted by Forrester Consulting on behalf of Omniture, June 2009<br />
  10. 10. 6<br />When & How is Hyper-Complex<br />email<br />Vending<br />Agent<br />@<br />Web<br />Viral<br />IVR<br />Lower Touch<br />Automated Interaction<br />Transaction Ease<br />Agnostic Customers<br />Low Switching Costs<br />Gaming<br />Retail<br />+<br />Social Network<br />Mail / Statements<br />Casts & Txt<br />TV / Mass<br />ATM<br />Mobile<br />Cable<br />
  11. 11. 7<br />When & How is Hyper-Complex<br />Issue / Need More<br />Pay / Assess Value<br />Balance<br />Cost & Ease<br />See<br />Value<br />Commit<br />Need<br />Agent<br />TV/Mass<br />Retail<br />Retail<br />Retail<br />The Baby Boomer<br />Touch<br />Factor<br />Social Network<br />Web<br />ePay<br />Viral<br />Casts & Txt<br />The Millennial<br />Content<br />Factor<br />
  12. 12. Keys to Success<br />Engage in cross-channel measurement and analytics<br />Identify high-value segments<br />Deliver targeted offers <br />2.5X higher revenue growth rates<br />5Xhigher customer conversion growth rates<br />3X higher customer profitability growth rates<br />1“Cross-Channel Campaign Management: Next Generation Multichannel Marketing”Aberdeen Group, October 2008<br />
  13. 13. Yeah… we are doing that<br />"Never confuse motion with action.“<br />~ Benjamin Franklin <br />
  14. 14. Measuring Value<br />Benefit<br />Critical Success Factors<br />Deliverables<br />Marketing effectiveness<br />Rev Increase<br />$1m<br />25%<br />Return on Spend<br />Reducing duplicate spend<br />Customer Profit Mgmt<br />$.2m<br />Campaign effectiveness<br />Reduce Cost<br />$.5m<br />Customer experience<br />$.3m<br />Directly impacts NOI<br />
  15. 15. Others that use Revenue Attribution<br />
  16. 16. Others that use Revenue Attribution<br />
  17. 17. Others that use Revenue Attribution<br />
  18. 18. 1000<br />What we know…<br /><ul><li>I know I added 1,000 leads this week.
  19. 19. I know I wrote 300 leases this week.</li></ul>What we don’t know…<br /><ul><li>Which leases were driven by ILS’s, Search Marketing, Email, CraigsList?
  20. 20. Did we touched them multiple times and if so, how/where?
  21. 21. How did they interact with my ads?
  22. 22. How do I make it better?</li></ul>300<br />Lead<br />Lease<br />
  23. 23. Marketing Channels & Tactics<br />Lead<br />Lease<br />
  24. 24. Marketing Channels & Tactics<br />What’s working?<br />Lead<br />Lease<br />
  25. 25. AIM 2010<br />Revenue Attribution<br />A Complex Question…<br />Platforms<br />Processes<br />People<br />
  26. 26. Understanding Behavior<br />What does real behavior look like?<br />
  27. 27. Advertisements<br />SEO<br />SEM<br />ILS<br />Craigslist<br />TV<br />Print<br />Radio<br />Billboard<br />Responses<br />Phone<br />Click-Through<br />Email<br />Walk - In<br />Lead<br />Left Site<br />Website<br />Mobile<br />Onsite<br />Lease<br />$<br />
  28. 28. The Right Data<br />What data elements should I consider when building a revenue attribution model?<br />
  29. 29. Advertisements<br />Data Elements<br />SEO<br />SEM<br />Channels<br />Touch Order<br />Granularity<br />Responses<br />Phone<br />Click-Through<br />Lead<br />Left Site<br />Website<br />Onsite<br />Lease<br />$<br />
  30. 30. Advertisements<br />SEO<br />SEM<br />Responses<br />Data Elements<br />Phone<br />Click-Through<br />Length of Time<br />Lead<br />Left Site<br />Website<br />Onsite<br />Lease<br />$<br />
  31. 31. Advertisements<br />SEO<br />SEM<br />Responses<br />Phone<br />Click-Through<br />Lead<br />Left Site<br />Website<br />Onsite<br />Data Elements<br />Lease<br />$<br />Date of Allocation<br />
  32. 32. AIM 2010<br />The Platforms<br />
  33. 33. Advertisements<br />SEO<br />SEM<br />ILS<br />Craigslist<br />TV<br />Print<br />Radio<br />Billboard<br />Ad Serving & Tracking<br />Responses<br />Phone<br />Click-Through<br />Email<br />Walk - In<br />Analytics<br />Lead<br />Website<br />Mobile<br />Onsite<br />Lead Management<br />Guest Card<br />Lease<br />Lease<br />Property<br />Management<br />
  34. 34. AIM 2010<br />The Processes<br />
  35. 35. Processes<br /><ul><li>Tagging for Analytic Data
  36. 36. Capturing Lead Data
  37. 37. Guest Card
  38. 38. Property Management Data
  39. 39. 3rd Party Data
  40. 40. Reporting
  41. 41. Modeling</li></li></ul><li>Attribution Models<br />
  42. 42. AIM 2010<br />The People<br />
  43. 43. Cross Functional Expertise<br />What skills do you predict will be most critical to your marketing organization over the next five years?<br />1st Choice 2nd Choice 3rd Choice<br />*Top 3 Responses<br />Source: “Next-Generation Marketing and Measurement,” a commissioned study conducted by Forrester Consulting on behalf of Omniture, June 2009<br />
  44. 44. Well Rounded People<br />
  45. 45. AIM 2010<br />Now that we know what’s working…<br />How do I make it Better?<br />
  46. 46. Communication<br />
  47. 47. Conversion by Channel<br />What responses, leads, and leases did each channel produce?<br />Craigs<br />Email<br />ILS<br />Walk-In<br />SEM<br />Phone<br />What percent of people are researching via multiple channels?<br />1500<br />1687<br />5897<br />3452<br />5421<br />4158<br />How many channels are they visiting and how long are they researching?<br />Prior Research<br />No<br />Research<br />255<br />207<br />1534<br />750<br />1765<br />962<br />What channel did they visit prior to the converting channel?<br />Visited > 1 50%<br />Visited > 3 30%<br />Average Research 66 day<br />358<br />512<br />448<br />525<br />67<br />74<br /><br />18%<br /><br />26%<br /><br />32%<br />CraigsList<br />14%<br />Other<br />10%<br />
  48. 48. Responses by Type<br />How did people respond to us?<br />Leases<br />How many times are we touching them before converting?<br />What is the average times we touch a customer?<br />Touches > 1 40%<br />Touches > 3 35%<br />Average Touches 2.5<br />One<br />Touch<br />More than 2<br />
  49. 49. Cost Per Lease<br />What is the Cost per Lease of each Channel?<br />What is our average CPL & at what rate are we converting them?<br />What is our CPL trending up over the recent weeks?<br />Average Cost Per Lease $1,900<br />Lead  Lease Rate 28%<br />
  50. 50. AIM 2010<br />Where can we go with this?<br />
  51. 51. How else?<br />Damage Deposits<br /># of Applications vs. # of Approvals<br />Its more than revenue attribution, it also becomes Customer Experience<br />
  52. 52. Progression<br />Different Models<br />Establish the foundation to connect the dots<br />Start Simple and add to it based on learning's<br />
  53. 53. 1500<br />1000<br />500<br />0<br />-500<br />-1000<br />-1500<br />-2000<br />1<br />2<br />3<br />4<br />12<br />13<br />36<br />37<br />38<br />39<br />40<br />41<br />Customer Lifecycle Framework<br />By managing the Customer Lifecycle indicated a company can increase lifetime value and consequently EBITDA by up to 20%*.<br />Up Sell<br />Market<br />Acquire<br />Fulfill<br />Serve<br />Up sell<br />Cash and Costto Serve<br />Maintain<br />Maintain<br />Bad Debt/Churn<br />Churn<br />Market<br />Deposits<br />Acquisition<br />Cumulative Customer Lifetime Value In Dollars<br />RenewalPromos<br />Customer<br />Care Costs<br />Fulfill<br />Months of Life<br />Revenues<br />Costs<br />*McKinsey<br />
  54. 54. How do you leverage segmentation?<br />Relative Customer Value<br />Valuable-Low Touch<br />Customers<br />Valuable-High Touch Customers<br />Retain<br />Develop an understanding of which customers to focus retention efforts<br />High<br />Revenue<br />Most Profitable<br />Grow<br />Average Customers<br />High Touch Customers<br />Low<br />Create initiatives designed to migrate low revenue customers toward being valuable customers<br />Least Profitable<br />High<br />Low<br />Cost to Serve<br />
  55. 55. AIM 2010<br />Yeah, but<br />
  56. 56. Have the ability to Act<br /><ul><li>Budgets
  57. 57. Automation</li></li></ul><li>In Closing…<br />It can be complex, but don’t let that hold you back. There are big opportunities to be had.<br />Identify the data elements and attribution model(s) you want to apply.<br />Assess your current state and capabilities, then create a competency and progression plan.<br />Establish the foundation with a complete data capture strategy.<br />Clearly define the questions that you want to answer, don’t try to measure everything. <br />Ted Stites<br /><br />