Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Conversion Day Brussels 2014 - Monetization (Online Focus)

1,004 views

Published on

Become a data driven organisation, and turn your KPIs into Euro's. Through monetization you are able to measure the real value of each digital channel, each online behavior and each audience segment.

Published in: Business, Technology
  • Be the first to comment

Conversion Day Brussels 2014 - Monetization (Online Focus)

  1. 1. MANAGE ✪ MEASURE ✪ MONETIZE
  2. 2. BUILDING A MARKETING ROI ORGANIZATION THROUGH MONETIZATION
  3. 3. FROM ANALYSIS TO OPTIMIZATION Take Action Share Data & Insights Measurement & Analysis Business Goals & KPIs
  4. 4. GUT FEELING? OR DATA DRIVEN? 1 • No decisions based on data 2 • Very few decisions based on data 3 • Decision making is sometimes guesswork and sometimes backed with data 4 • Most decisions are based partially on data 5 • We don’t make decisions without seeing if there is data we can leverage
  5. 5. • USES BUSINESS GOALS TO DRIVE DECISIONS • AVOIDS GUT FEELINGS • EMPLOYS DATA DRIVEN STANDARDS SUCH AS ROI • SEGMENTS VISITORS ACCORDING TO NEEDS AND VALUES • LISTENS TO ITS CUSTOMERS A DATA DRIVEN ORGANIZATION…
  6. 6. FROM ANALYSIS TO OPTIMIZATION Take Action Share Data & Insights Measurement & Analysis Monetization & Prioritization Business Goals & KPIs
  7. 7. BECAUSE WE WANT TO BE ABLE TO ANSWER: 1. WHICH CUSTOMER BEHAVIOURS PROVIDE MOST VALUE? 2. WHAT IS THE VALUE OF AN NON TRANSACTION ACTION? 3. WHAT IS THE VALUE OF THE EARN, BOUGHT, OWN MEDIA TO OUR BUSINESS? 4. HOW SHOULD WE PRIORITISE OUR MARKETING INITIATIVES?
  8. 8. A BUSINESS METRIC FOR ALL STAKEHOLDERS Stakeholder 1: Measures success based on KPI completions Stakeholder 2: Measures success based on Impressions Stakeholder 3: Measures success based on CPA Stakeholder 4: Measures success based on qualitative data monetized € values a common success metric
  9. 9. ONLINE SALES OWNED BOUGHTEARNED ONLINE OFFLINE
  10. 10. ONLINE SALES COST REVENUE ROI OWNED BOUGHTEARNED ONLINE OFFLINE
  11. 11. ONLINE SALES COST PROFIT ROI OWNED BOUGHTEARNED ONLINE OFFLINE
  12. 12. OFFLINE SALES OWNED BOUGHTEARNED ONLINE OFFLINE
  13. 13. OFFLINE SALES OWNED BOUGHTEARNED ONLINE OFFLINE COST PROFIT ROI
  14. 14. ONLINE INDIRECT Product Demos, Onsite Search, Facebook Likes, … Difficulty: Medium ONLINE DIRECT Online Purchases Difficulty: Easy OFFLINE INDIRECT Store Locator Usage, Product Detail Views, … Difficulty: Hard OFFLINE DIRECT Leads Difficulty: Medium
  15. 15. OFFLINE SALES OWNED BOUGHTEARNED ONLINE OFFLINE ?
  16. 16. INDIRECT VALUE POINTS • PROPENSITY TO BUY (PTB) * • = [Interest(s) – Interest(c)] x [Real(c) / Interest (c)] • Example: • Survey: 10% • Control: 4% • Real: 2% • [10 - 4] x [2 / 4] => PtB = 3% * Source: Steve Jackson – Cult of Analytics
  17. 17. INDIRECT VALUE POINTS • POTENTIAL VALUE • = [PtB x #Visitors] x [Average Profit] x [Market Share] • Example: • PtB: 3% • Visitors: 100.000 • Average Profit: € 1.000 • Market Share: 10% • ((3% x 100.000) x (1.000) x (10%) = € 300.000 * Source: Steve Jackson – Cult of Analytis
  18. 18. OFFLINE SALES OWNED BOUGHTEARNED ONLINE OFFLINE
  19. 19. * Source: ZAAZ – Actionable Analytis
  20. 20. NORMALIZE AGAINST COMPARIBLES * Lead Value = € 8.000 * * * * *
  21. 21. MONETIZATION HELPS YOU UNDERSTAND THE SALES INFLUENCE OF THE DIGITAL ACTIONS YOUR CUSTOMERS PERFORM
  22. 22. • Monetization is: a modelling methodology for estimating the financial impact of selected digital actions • With the objective to: prioritise marketing initiatives based on their financial value (€) and ROI MONETIZATION MODEL * Source: ZAAZ – Actionable Analytis
  23. 23. RETURNONINVESTOMENT (revenue,cost-savings,riskofnot doing,...) COMPLEXITY OF IMPLEMENTATION (time, effort, risk, complexity, ...) EXECUTE CONSIDER CONSIDER (decide, simplify or split) AVOID PRIORITIZATION
  24. 24. ROI IN CONTEXT OF YOUR INITIATIVES Initiative Project Score Weighted Score Contribution Margin ROI Business Priority Landing Page Development 1 11,5 5 5,8 Product Detail Page Update 2 8,3 3 4,3 Video Media Enhancement 4 6,6 7 6,0 Secure User Area Update 6 5,1 9 6,9 Weight 30% 30% 40%
  25. 25. MONETIZATION MODEL OUTPUTS Dynamic Prioritization Monetisation Scorecard Key digital reporting scorecard ROI Tools Web Analytics Integration Database Integration Monetisation Dataset
  26. 26. THE 5 STAGES OF MONETIZATION No Guess • There is no knowledge on how to estimate a € value for an action Educated Guess • Guess the value of an action Transaction % • Evaluate only transactional actions Sales Influence % • Evaluate all purchase funnel actions based on their sales impact Sales Influence % on segment/source basis • Estimate the financial value of an action based on a customer segment or traffic source
  27. 27. MONETIZATION BENEFITS 1. MEASURE TOTAL VALUE OF THE PURCHASES FUNNEL 2. UNDERSTAND THE RELATIVITY IN VALUE OF THE DIGITAL ACTIONS 3. SEE ROI IN CONTEXT OF YOUR INITIATIVES 4. DYNAMICALLY PRIORITIZE YOUR STRATEGIES AND TACTICS 5. ESTABLISH A BUSINESS METRICS FOR ALL STAKEHOLDERS
  28. 28. KEY TAKEAWAYS
  29. 29. MONETIZATION IS AN ONGOING PROCESS Define the Business Goals Quantitative and Qualitative Research Build/Update Model & gain insights Correlate with sales and marketing activities Revise Assumptions and Optimise model Process * Source: ZAAZ – Actionable Analytis
  30. 30. BECOME A DATA DRIVEN ORGANIZATION 1. ANALYZE DATA BASED ON OVERALL BUSINESS GOALS 2. MONETIZE ALL KEY SITE BEHAVIOURS 3. FOCUS ON OPPORTUNITIES AND RECOMMENDATIONS – NOT JUST REPORTING 1. PRIORITIZE BASED ON GREATEST IMPACT TO THE BUSINESS 2. ONGOING OPTIMIZATION PROCESS 3. MAKE SOMEONE ACCOUNTABLE
  31. 31. CONTACT: SIEGERT DIERICKX - FOUNDER & DIGITAL ANALYTICS LEAD SIEGERT.DIERICKX@ONLINEFOCUS.BE - @SIEGERTD WWW.ONLINEFOCUS.BE

×