"to marketing optimisation and beyond!"

“To Marketing Optimisation and Beyond!”

Neil MasonApplied Insights

Forces at work

Internet Adoption & Usage Curve

Source: Net Poll/QXL

Assessment

Scepticism

Trepidation

Orientation

Wanderlust

Confidence

Maturity

Event Driven Usage

Online One Month Three Months Six Months Nine Months One Year Two Years

Act

ivit

y

Time

Propensity to Transact

Internet User E-commerce Development

Up to 12 to 24 months

Exp

erie

nce/

Con

fiden

ce

Information & Research

On-line Retail

Transactions

Auctions

+veGood dealsEfficient ExcitingSmart

-ve:SafetyAnonymity of seller

+veRare/usual itemsFun/excitement(Easy)

-ve:SafetyConfidence about product deliveryWhether it’s a good dealLack of relevance

TransactionalSystems

Sales Reports

Site Reports

Board Reports

Yesterday….

Today….

TransactionalSystems

CountryManagement

InformationFactory

Extracts

GroupManagement

FunctionalManagement

Tomorrow….

TransactionalSystems

CountryManagement

KnowledgeRepository

Extracts

Rules GroupManagement

FunctionalManagement

Third PartyData

Site

LiveTrading

CustomerService

Financials

Analysts

Managers

Partners

Data Warehouse

An

aly

sis

To

ols

Re

po

rtin

g E

nvi

ron

me

nt

Business and Customer Intelligence Strategy

Phase 1- Integrated Reporting

Implementation Approach

Centre

LocalAnalysts

Users

Users

Users

“Centralise Development and Technology - Localise Usage and Support”

Corporate Documents

Localised DocumentsAd-hoc Queries

SupportTraining

Best Practice

DevelopmentAdministration

SecurityExpertise

CRM Technology Framework

Information & Analysis Systems

Transaction Systems

Marketing SystemsData Warehouse

I Wish It Was As Easy As This….

The journey to online marketing optimisation

Performance Tracking

Process Analysis& Optimisation

User Centricity

Insight

Investment

…the right numbers right

It’s about getting….

As Albert said…

The not-so secret approach to getting performance tracking right…

Some simple questions to help you get your KPIs right

• State the online marketing objective• What does that really mean?• What does good look like? What will be

happening differently if you are meeting this objective?

• Can these behaviours or outcomes be measured? How?

• Are these metrics good enough to be KPIs?

Good KPIs are “Übermetrics”…

Organisations need to have thedesire for change…

…to have the ability to execute…

..and to remain focussed

The ingredients for optimisation

The principle of optimisation

Defeat the HIPPO!

HighlyImportantPerson’sPersonalOpinion

Web analytics data

Survey data

Campaign data

Customer data

Get the data out of the silos…

Campaign optimisation

Optimising site processes…

Defining page purposeand measurement

Home page Categorypage

Product list page Product page Basket Checkout

Landing zones Landing zone

EngageRoute Route Engage

Convince

Bounce rate

Promotion space CTR

Process Process

Exit rate

Click to product rate

Exit rate

Cross-sell rate

Add to basket rate

Tool usage

Conversion rate

Conversion rate

Visitor numbers

Multi-variate testing (MVT)• 6 banners• 4 boxes• 5 pictures• 4 sets of links• 3 product lists• 7 copy variations

6 x 4 x 5 x 4 x 3 x 7 = 10,800 permutations!!

Create meaningful segments

A user centric framework…Why do they visit the

site?

?

?

?

?

Who visits the site? What do they do on the site?

Happy Trackers (6%)

Happy Trackers mainly use the site for Track and Trace and little else

In terms of profile they tend to have a stronger business slant and be slightly older than on average

They are not heavy users of the site and their visits are relatively light and narrow – all they do is use Track and Trace

However they are happy with what they do, they rate the site functionality the best out of all the segments

Cottage Industrialists (2%)

Cottage Industrialists are frequent users of the site and they mainly come looking for information on postal prices, delivery services, parcel information and the like.

Half of this segment are involved in some type of online auction related activity and over the course of their lifetime they tend to look at the broadest amount of content on the site. Quite often they will be using the search function to do this

They are reasonably happy with the customer experience on the site and are more likely than on average to recommend the site to others

The user centric framework…in actionWhy do they visit the site and what do they

think of it?

Who visits the site? What do they do on the site?

Most people who visit your website…

Only visit once…Only stay one minute…Generally only look at one page…Most likely only stay for one minute…And probably only transact with you once

Look forward…

Look forward…

Predicting segment membership

Repeat shoppers

Single order shoppers

11 product based segments

Profiled on category purchasing, category browsing, plus opt-in

Profiled on shopping behaviour, purchasing behaviour, category browsing, lifecycles, mosaic, opt-in

75% shoppers

43% items sold

25% shoppers

57% items sold

Repeat Visitor Only

“1 to 2” conversion

Events and triggers

Profiled on category browsing

Probable segment membership

Thank you!Neil Masonneil@applied-insights.co.uk