Dma detroit larry freed mar 3 2011

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During dmaDetroit's 15th Annual AIMS event, Larry Freed, President of Forsee Results presented on: "Metrics to Understand the Cross-Channel Customer"
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Dma detroit larry freed mar 3 2011

  1. 1. Metrics to Understand theCross-Channel CustomerLarry FreedPresident & CEO, ForeSee Results
  2. 2. Customer Relationships Forged Across Many Touch Points
  3. 3. The Super Consumer The web has given the consumer new powers…
  4. 4. The Super ConsumerStronger VoicesConsumers can shareopinions further andwider – as fast as theycan type and hit send
  5. 5. The Super Consumer Powerful Hearing Consumers can seek out and absorb as many recommendations or negative comments as they want
  6. 6. The Super ConsumerGreat KnowledgeConsumers have accessto information andgreater knowledge thanever before
  7. 7. The Super Consumer Ability to Clone Visiting another store or company to compare products, services and prices is as easy as opening another browser tab
  8. 8. A New Order The consumer is in charge • Great knowledge • More competitiveness – lower barriers to enter • More channels • Lower switching costs
  9. 9. The Customer Era The Customer The Customer The Customer
  10. 10. The Customer EraThe customer has the powerThe importance of satisfying thecustomer has never been greater
  11. 11. Why Is Satisfying The Customer Important ?• Consumers will go where they are satisfied• Traditional metrics don’t measure the total contribution• Scientific satisfaction analytics are predictive, feedback isn’t• You can’t manage what you don’t measure
  12. 12. The Customer Era: A Complex Environment Channels Acquisition Sources & Influencers
  13. 13. The Art and Science of Measurement Analytics You cannot manage what you do not measure Can you improve if you don’t measure ? What you measure will determine what you do
  14. 14. Metrics and KPIsMetrics vary by channel and can be misleading when not used properly impressions First Call Resolution Customer Acquisition Cost geographic data Customer Lifetime Value conversion rates % of new visitors special offer to purchase Avg Order Size keywords % of repeat orders bounce rate average time on site cost-per-visitor campaign roi home to purchase referring urls cost-per-click overall traffic # of new visitors page views search to purchase
  15. 15. Social Media A typical scenario “I just bought an awesome Panasonic 3D TV at Best Buy – on sale!”
  16. 16. Social Media>Search Panasonic 3D TV Best Buy
  17. 17. Social Media>Search Panasonic 3D TV Best Buy
  18. 18. Social Media>Search>SEM Panasonic 3D TV Best Buy
  19. 19. Social Media>Search>SEM>Site
  20. 20. Social Media>Search>SEM>Site Analysis • Visitor came through our AdWord program • Visitor came because of a recommendation from a friend on a social network
  21. 21. Social Media>Search>SEM>Site
  22. 22. Social Media>Search>SEM>Site>Cart
  23. 23. Social Media>Search>SEM>Site>Cart>Abandon
  24. 24. Social Media>Search>SEM>Site>Cart>Abandon Analysis • Visitor came through our AdWord program • Visitor came because of a recommendation from a friend on a social network • Item added to cart – different item than recommended • Cart abandoned
  25. 25. Social Media>Search>SEM>Site>Cart>Abandon>Store>App>Purchase
  26. 26. Social Media>Search>SEM>Site>Cart>Abandon>Store>App>Purchase Analysis • Visitor came through our AdWord program • Visitor came because of a recommendation from a friend on a social network • Item added to cart – different item than recommended • Cart abandoned • Used Mobile App without purchasing • Purchased in store
  27. 27. Social Media>Search>SEM>Site>Cart>Abandon>Store>App>Purchase Analysis • Visitor came through our AdWord program • Visitor came because of a recommendation from a friend on a social network • Item added to cart – different item than recommended • Cart abandoned • Used Mobile App without purchasing • Purchased in store
  28. 28. Cross-Channel Customer Experience Measure what matters most: Your customers across all touch points
  29. 29. Measuring SuccessNot just through the eyes of the organization
  30. 30. Measure Success Through The Eyes Of Your ConsumerSatisfaction
  31. 31. Measure Success Success = Satisfaction What You Get and What You Expect
  32. 32. Satisfaction: The Measurement of SuccessAmerican Customer Satisfaction Index• Leading National Economic Indicator of Consumer Spending• Founded at the University of Michigan in 1994, published quarterly• Measures almost half of the U.S. economy: 45 industries, 200+ organizations• Advanced methodology: Quantifiably measures & links satisfaction to financial performance
  33. 33. The ACSI: Unparalleled Measurement Technology ForeSee Results Accurate Cause-and-effect 9 years, 70 industries Precise methodology provides 500 customers Reliable actionable insights 800 active measures ACSI 16 years, 45 industries 200 organizations
  34. 34. What Do You Need From Metrics?
  35. 35. Understanding What Metrics Are Feedback vs. Measurement? Site feedback Intercept survey measurement
  36. 36. Proxies for Customer Experience Metrics Don’t Work Net Promoter • Lacks precision, predictability; discards relevant data Expert Opinion / Research Analysts • Sample sizes often small, not projectable, not seen through customers’ eyes Customer Ratings • “Popularity contests” are not metrics
  37. 37. Predictive Analytics Correlation vs. Causation Correlation: Relationship between two variables Causation: Relationship between two events • Event 1: The cause • Event 2: The effect - a direct consequence of the first
  38. 38. Cause-and-Effect Methodology
  39. 39. Cause-and-Effect Methodology
  40. 40. Cause-and-Effect Methodology
  41. 41. Cause-and-Effect Methodology
  42. 42. Measuring Each Channel
  43. 43. Measuring Social Media Value & Influence How engaged are my visitors with social media? Social Influencer Model: CS SocialPersona What do they think of the experience on my social media sites? On-site surveys (controlled social media): CS SiteManager What do they think of my participation in social media sites? Posted surveys (sponsored social media): CS SocialMedia What do they do while engaging with my social media presence? Social media monitoring tools for behavioral data What value does social media bring to my business? Social Media Value Calculation
  44. 44. Social Media Value Calculation
  45. 45. Return on Social Media Investment
  46. 46. Managing Forward Measure what drives satisfaction at the experience/transaction level Measure overall relationship
  47. 47. Not All Measures are Created Equal
  48. 48. ForeSee ResultsApply science & technology to themeasurement & analysis of customer satisfaction Founded in 2001 • Privately held • Financially stable with positive cash flow since 2005 • Growth in every quarter Heritage of innovation and scientific rigor Patented technology • American Customer Satisfaction Index • University of Michigan
  49. 49. ForeSee Results Helps You • Apply science to continuous voice of customer measurement • Measure satisfaction and drivers of satisfaction and impact on future behaviors • Profile personas and intents of your customers • Diagnose strengths, weaknesses, and opportunities • Predict impact of change on satisfaction and behavior; prioritize improvements ROI • Provide actionable insights • Compare against peers, competitors, best-in-class, yourself over time
  50. 50. Some of the Companies We Measure
  51. 51. ForeSee Results: Comprehensive Measurement System
  52. 52. ForeSee Results: Comprehensive Measurement System
  53. 53. ForeSee Results: Comprehensive Measurement System
  54. 54. ForeSee Results: Comprehensive Measurement System
  55. 55. ForeSee Results: Comprehensive Measurement System
  56. 56. Top 5 Takeaways You cannot manage what you do not measure. The consumer is multi-channel with unprecedented power. Measure success from the customers’ perspective – not the organization’s. Customer satisfaction drives conversion, loyalty, retention and word-of-mouth … and financial success. To be successful you must do 2 things: satisfy your customer and be fiscally responsible.
  57. 57. Questions? Larry Freed President and CEO ForeSee Results (734) 205-2555 Larry.Freed@ForeSeeResults.com Twitter: larryfreed Blog: www.FreedYourMind.com www.ForeSeeResults.com

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