Good Afternoon everyone, my name is Nicole Penn and I am a senior consultant with IBM. I work within the Enterprise Marketing Management Group in which IBM Coremetrics is a part. Today I’m going to be discussing with you the ways in which web analytics can be used in the every changing and growing digital age. My industry of expertise is retail so most of this presentation will be focused around this, however I will cover a few areas around the travel industry.Can I just get a quick show of hands from the audience as to who has used web analytics before? And any Coremetrics users out there?Great.
Well lets start by having a little reminisce about 2006 and how the online world differed.This was a time when online transactions were mostly performed on laptops and desktops, making website optimisation a little easier. It was also a time when smart phones where mostly owned by business users and where smart because you could check your email, and possibly read the news, ONLINE! Email campaigns where also simpler, with personalisation of emails often simply thought of as adding the customers name.Social Networking wasn’t for businesses yet, and Myspace and Bebo still we’re tops, but not for long, as Facebook came along and all but squished themTwitter was only a hatchling and the world had no idea how things would develop
And here we are, in 2012, Smart phones are now owned by 30% of the UK population and are truly smart. Not only can you send & receive email but you can watch videos, movies, share photos instantly over social networks, browse the web at top speed, order from your favourite shops and read reviews of products before you by items in store. You can check for your flight from your mobile and book your car parking while on route. These little devices make being online when ever where ever really possible. But it’s not just smart phones that have changed the way we interact with websites, there are now other internet ready devices such as tablets, tv’s and even fridges which make your online experience different and easy, where ever you are in your house. And all these devices now need to be optimised to ensure your customer has the best Smart experience possible.But it’s not just the devices that companies now need to consider. It’s the marketing strategies that have changed too. Social media marketing and personalisation also now need to be considered in the full web analytics and online strategy in order to reach as many customers as possible.
So although that was a brief summary of the last 6 years, those are the key areas of change which I have seen since I started with IBM. And today I’d like to go through some of these hot topics which customers are now focusing on.So i’ll be covering what some of our clients are doing in terms of optimisation, in particular around Social, Multi-Channel marketing, mobile as well as personalisation and how web analytics fits into these areas.
Lets first look briefly at what IBM Coremetrics is
IBM Coremetrics is the leader in web analytics, and I can say that because we really did rank as leader overall in The Forrester Wave™: Web Analytics, Q4 2011, with the highest scores in corporate strategy and application usability and administration.IBM Coremetrics have a large suite of products all focused around helping clients gain a 360° view of their customers. This is achieved by the LIVE profile data, or Lifetime Individual Visitor Experience, which we store for each visitor using cookies. Their interactions on the site, and across devices, online marketing campaigns, advertising and social media can all be attributed back to that LIVE profile and conversions on the site can accurately be attributed to the correct referral source.The suite of products range from pre-built web analytics reporting, to customer specific, more advanced reporting, benchmarking, targeted email and recommendations, search and social reporting. But I’m not here to give a product pitch, so let’s move onto what areas our clients are currently interested in.
Social media has been a slightly complicated area for our clients. Everyone wants to do, some are doing it well, some not so much, but there are key questions which clients ask us about it.
Most clients want to know what the top performing Social Media Sites are and how they perform both generally as well as seasonallyClients are also looking at their strategy and how they fit social media into their current online and web analytics strategiesHow to measure your social media campaigns is complex, and a big question. First you have to have a strategy with goals to measure and then establish the KPI’s after which we can help determine which reporting is best and how to track your site and campaigns to get the data.But some of the biggest questions we are seeing around social media, are how does it affect user behaviour? Who are our customers that are using it? What are their demographics? Do they act differently on the site if they come from social media versus other channels?We wont have time to answer all these questions today, but lets have a look at a few.
With the IBM Coremetrics Benchmark application, which hundreds of top retailers are part of, we can see what the UK Retail industry is currently looking like in the world of Social Media.The average conversion rate on a UK retail site is 3.5%, but how does that compare when sessions come to the site from Social channels?Conversion is almost doubled nearly at 7%!This is already starting to show how closer engagement with the customer and a more interactive method of driving customers to the site, really can pay off. The only thing is, getting visitors to the site. Social Sites made up less than 1% of the total site traffic, but it’s clear that this was well qualified traffic, so increasing this figure should be looked at.
If we keep digging into Benchmark data we’ll be able to see how individual social media sites perform and some of the results are interesting. Most clients only really look at FB, Twitter and Youtube and as you can see the % of traffic coming to the site from these channels, is still low, but Facebook is tops. But if we then look at the conversion rates facebook conversion, whilst still over 100% more than the site average, is considerably less than Twitter and YouTube. Clients want to then dig into this more and try to understand what campaigns where driving the twitter and Youtube conversions and how can they replicate those to drive more sales on the site.
As I mentioned majority of our clients are using facebook, Youtube and Twitter as their Social media Channels, but each of these has a very different target audience and different objectives.Let’s look at Screwfix as an example. They have a large following on these key social media sites, with nearly 32,000 fans on facebook, over ½ million video views on you tube and over 7,500 followers on Twitter. Both Facebook and Twitter show deals and products which drive customers to the website, but their facebook page is more graphically driven, where Twitter does seem to be the main place for quick customer support queries. Customers can “like” or comment on products on their website during the purchase process and there is even a live twitter steam which displays on the product pages. Screwfix TV, the YouTube channel, is more focused on how the products work, but still drive traffic back to the website.All of these interactions within the social media campaigns can be tracked and measured, from the top tweeter to the user reviews, giving Screwfix a full understanding of who the different visitors are on each channel, in order to target appropriate content, to find out what products they are interested in and what conversations and videos drive higher conversionsClients are getting creative with Social, and some are now doing things like getting their customers to “check-in” on facebook when they go instore in order to get a discount and they are also venturing into F-commerce. Not many are doing it full yet, but It does appear to be a trend within the beauty industry. a few customers have category type pages on their facebook page, showing all the Shoes they sell for example, This looks like somewhere you can make a purchase, but you are inevitably taken back to the main site to complete your purchase. Of course the key things with this are 1) ensure you take your visitor to the correct point in their purchase process when they arrive at your site, 2) Make sure you are accurately tracking the purchase to show as a conversion from Facebook.
It’s not just retail doing this though, one of our travel clients, gives facebook users the ability to make a booking for a hotel from their facebook page. Well to check for availability anyway. You can start the booking process on Facebook and then continue through to their website to complete it.
Another big trend we are seeing is mobile optimisation and the usage of web analytics to track performance
This has to be one of the hottest topics at the moment with lots of our clients asking questions around the performance of individual mobile devices as well as how smart phones compare to tablets in the performance ranks.But a lot of clients are only now starting to understand the importance of mobile measurement with web analytics and so we are getting a lot of clients who may have had a mobile site for a little while but it’s been untracked, so they want to try and get it tagged up as quickly as possible to start understand their mobile ROI. Other clients are still designing their site, and deciding between mobile site vs app, and questions arise around how visitors behaviour across these areas differs and whether they should opt for mobile site, app, both and also do a tablet optimised site.It really is a minefield with clients wanting to get up and running as quickly as possible, but needing to slow down to understand what will work best for them.
Let’s have a quick look at some more Benchmark data this time around how different mobile devices convert. We know that the biggest war is between Apple and Android, but who does better in converting customers. As you can see the iPhone is keeping up with the site average and converting sessions at a slightly higher rate. Android phones are slightly ahead with an 11% increase over iPhone...but we havent looked at iPad yet! Tablets in general have a higher conversion, but iPad takes apple into the winning corner with over 5% conversion. That’s a 46% increase in conversion over the site overage.
Now as mobile is such a hot topic and a competitive one at that, many of our clients are keeping their cards close to their chest externally, but I can give you a rough idea of the main things clients are looking at now.The first thing is tracking. In order to understand the performance of mobile devices / mobile site/ apps and tablets, each of these need to be tagged in the correct way. Before this can begin clients have to fully understand what their mobile strategy is, what their goals are, and what KPI’s they want to be able to analyse. They also need to understand what the general behaviour of visitors on these sites is like so that they can track accordingly. This is where they benefit from working with one of our consultants as we have the industry knowledge and expertise to guide them in the right direction, based on their business objectives. Clients need to start to think about whether they want to consider their mobile site as a separate entity / site or part of their main site. Whether they want to see how visitors interact with their mobile site and main site in the same session and whether visitors are using their mobile site as a research or buying tool.Once all the accurate tagging is in place and data is being collected we work with our clients to understand these key questions. And to really know how the mobile site / app / tablet is performing and what changes are required to optimise them to be more effective.
Multichannel is another buzz word which clients are going crazy for
So what is multichannel. Well within retail there have always been a few channels where you can reach clients, catalogue, in store or the website, but now there are even more channels. Social media, mobile, apps, tablets, text & reserve, Click & collect, QR Codes, customer support, i think i could go on!But what clients want to gain is this 360° view of how their customers interact with these channels. Consumers now a days can use multiple channels to purchase a product and retailers want to know what happens at each stage. Take this example: Jenny is sitting on the bus looking at Facebook on her mobile, she’s on her way to town to buy a dress and she sees a promotion on her favorite high street store’s facebook page, so she goes to their website, browses around and sees what she likes, she goes to their store locator and when she arrives in town she walks into the store, swipes her loyalty card and buys the item.But tracking all these interactions and then tying them back to the same visitor can be problematical.
And this is what leads our clients to ask the big question, How do we perform multichannel analysis?Well the main thing is ensuring you include all of your channels within your overall strategy. This can sometimes be difficult for clients as different teams can have different strategies, Online can differ to catalogue which differs to Social, but making sure that their is some common measuring ground between all the channels is essential if you are going to measure these accurately.Without tracking these accurately incorrect assumptions could be made, in this example, the assumption could be “social and mobile didn’t convert”. But while in this example we were lucky that Jenny used a loyalty card instore, and that card ID was stored on the website, so we could link the transaction back to her, the reality of it is that not all stores do loyalty cards, nor do visitors enter a store with a visitor ID attached to them. So how do we link up these interactions? Clients have to start getting clever, and looking at store locator use on the mobile, coupon downloads and coming up with ways to join the online experience with the physical in a trackable way.
Let’s have a look at something one of our clients, Halfords, is doing. QR Codes have been a round for a few years now, but we’re seeing more and more of them being used to drive traffic to websites, in the form of competitions and discount codes for example. Halfords though are making clever use of QR Codes within their multichannel strategy. They have posters around the store with QR Codes on encouraging visitors to download the code to their mobile to win vouchers and also to read reviews about products in store, from the website. But another clever way they are using them is to direct customers to the information pages which advise on which products they need. So say John walks into a store and needs to buy replacement mirror glass for car wing mirror, he gets in store and sees a big printed booklet which he has to trawl through to find which glass he should use, OR he sees a QR quote, scans it with his smart phone and is taken to a page on the mobile site where he enters his reg number and ta-da the type of glass he needs.
The final area which, although it’s been around for a while, clients are still very interested in, is personalisation. Both of the website, of emails and of online advertising.Retailers are moving away from the idea that the homepage on the site is all about them and positioning their brand and products and they are starting to realise that this is prime area to start the process of getting into the customers mind. Retailers want to start personalising the whole customer journey, from the homepage right through the browsing and checkout processes and provide the customer with relevant products based on what they have browsed before, what they have purchased before, searched for and abandoned.The vision is to picture a shopping mall. When you enter it for the first time you dont know where any of the shops are that you want to purchase from. You spend hours walking around and browsing. But once you know where the shops are that you like, you can walk straight in there, up to the shop and purchase your items. In the online world, retailers want to make this vision even grander. Imagine, walking up to that store and being greeted at the entrance with all the items you like. So you don’t even have to trawl through the shop! The faster, more relevant the site, the quicker and more likely the purchase!This is where using IBM Coremetrics data, segmenting it based on customer behaviour, and mixing it up in the super smart Intelligent Offer algorithms, really starts to personalise the online shopping experience But personalisation is becoming, well, a lot more personal now...
One of our clients using personalisation via email is L’occiate, They had noticed that Customer engagement through email was declining. So to try and change this they looked to increase the relevancy of their email campaigns through smarter, more effective segmentation and thorough testingThey worked with Coremetrics using our LiveMail application which enables you to segment your data and target your emails to your audience based on specific rule. L’occitane saw amazing improvements with their click rates, conversion rates, and revenue per email message sent.They did a lot of testing around personalisation and then tested emails which contained a gift offer with purchase versus those that didn’tThe results were outstanding with a 2500% increase in revenue per email compared to unpersonalised emails.
So that’s all from me, before we go to questions, please take a note of our Social sites. The IBM Coremetrics consultants are on these and we provide hints and tips for analysis, industry trends and our thoughts on these hot topics you’ve heard about today.
Oh and please dont forget to visit the IBM stand, we’re by the bar!
Content Management & Web Analytics Theatre; Tfma presentation feb 2012final