analytics for customer acquisition - presentation at nasscom product conclave 2013

The Digital Analytics Company

www.nabler.com

Web Analytics for Customer Acquisition

NASSCOM Product Conclave 2013

Seby Kallarakkal

@sebyk

CEO, Nabler

Arun Agrawal

@ebizindia

Chairman & MD, Ebizindia Consulting


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Few questions


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~80 Standard reports


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Parallel


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Know what metrics or KPIs matter to you before you open the tool.

Take away #1


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November 2012 Scorecard

25,200 Visits

10%Engaged visits

2.4%Conversion

5020Additional FB likes

7% upvs. last month

0% diffvs. last month

10% upvs. last month

15% upAdditional FB likes

-25%vs. target

-20%vs. target

-15% vs. target

-25% vs. target


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Context matters. Target matters.

Take away #2


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How to design KPIs?


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Introduction to the REAN* Framework

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Reach What methods are used to acquire visitors on the website?

Engage How do visitors interact with the website?

Activate What preferred actions are taken by the visitors?

Nurture How to retain and re-engage with the acquired consumers?

R E A N

* Developed by Xavier Blanc


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• Identify actors – classify them

• Collect business questions from all actors

• Define reach sources

• Define engagement

• Define activation

• Define nurturing methods

• Designing KPIs for reach, engagement, activation and nurture

• Map KPIs to actors

Process for identifying KPIs


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Example – Tally, a software product

Fictional exercise for Tally


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Webmaster

Actors

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Digital marketing manager

Content manager

Business unit heads

Web development managerCMO

CEO

Budget owners Platform owners

Business owners

Campaign managers


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• How are campaigns doing?

• Which channel is performing the best for us in terms of leads?

• Do people register for webinars? Is it worth even organizing webinars?

• How useful is chat?

• How well is our content doing?

• Is our website easy to navigate?

• How come we don’t generate too much revenue from our website?

• What is the main reason for people to come to our site?

• Which pages require rewriting?

Collect business questions


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• What channels / websites / methods will be used to acquire visitors?

– Natural search– Paid search– Display campaigns– Email campaigns– Direct, brand-aware

Identify reach sources

ReachWhat methods are used to acquire visitors on the website?

R


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• What do you think people should do on the website so that they would convert?

– Stick around and not bounce?– Read about products?– Watch videos?– Read about solutions?– Chat with agent?– Read case studies?

• Classify activities into

– High engagement– Moderate engagement– Light engagement

Identify engagement

Engage How do visitors interact with the website?

E


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• Get people to sign up for a demo

• Get people to purchase products online

• Get people to register for a webinar

• Get people to call

• Get people to upgrade

Identify preferred actions

Activate What preferred actions have been taken by the visitors?

A


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• Methods

– Email newsletter– Promotional email

• Activities

– Request for training– Search for partner– Follow on social channels

Identify nurturing methods & activities

Nurture How to retain and re-engage with the acquired consumers?

N


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Now we are ready to design our KPIs


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• What parameter do you want to use to identify your best source?

– Use business questions– Use engagement activities– Use preferred actions

• For the Tally example, the parameters could be

– Traffic– Cost per visit– Cost per highly engaged visit– Cost per preferred action (buy, demo, webinar etc.)

Defining KPIs for Reach


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KPIs for Reach

KPI Name Calculation Explanation Benchmark Actions Actor

Share of visits

Visits from a traffic source / total visits

Shows how each source is doing from a traffic perspective

Historical – 20% YoY for the same month

Optimize channels to get the required traffic within the budget

Campaign manager

Cost per visit (CPV)

Money spent / visits for each source

Shows how much it costs to get a visit from each of the traffic sources

Rs.50 Optimize each channel

Campaign manager

Cost per highly engaged visit (CPEV)

Money spent / highly engaged visits from each source

Shows how much it costs to get a highly engaged visit from each of the traffic sources

Rs.250

Optimize each channel. Segment by landing page / product

Online marketing manager

Cost per order

Money spent / total orders for each source

Shows how much it costs to get an order from each of the traffic source

Rs.1000

Optimize channel / landing page / product / navigation / testing

Online marketing manager


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Quick exercise

Reach sourcesActivities defining high

engagement Preferred actions Nurturing methods


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Two techniques

1. Segmentation

2. Building a model


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• Target – visit to order ratio of 2.5%

• Actual – 2.2%

Segmentation - example

Source / campaign / channel Optimization and realignment of campaigns

Day of the week Customization by day of the week

Landing pageLanding page optimizationSplit Testing

City / State Optimization and realignment of campaigns

Segment by So that


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ModelingExcel model to arrive at targets


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At Rs.25,000 per license, the company needs 200 orders annually or 4 per week. 4 is highlighted since that’s the frequency I’m

suggesting.


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We are building a model and this is a critical assumption – 25% conversion target. This should be watched very closely or the whole

model would fall apart.


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Few more numbers. So it boils down to 1600 web leads in a year

or 33 web leads in a week.


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With the assumption of 2.5% visit to lead ratio, we have now arrived at a weekly target of 1333 visits.


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Let’s say, you take stock and realize you get around 20 visits / day from organic / direct and 5 from social


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More on optimizing

Scenarios

1. Visits too low

2. Conversion too low

3. Campaigns not doing too well


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Traffic

SEO

PPC

Social Media

ContentEmail lists

Media buying

Newsletter advertising

Solving the Low Traffic Puzzle


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Search Engine Optimisation (SEO)

• Organic search traffic

• So-called 0 cost.

• Time consuming, unreliable.

• Landscape is changing very frequently.

• Can’t depend on this heavily.

Solving the Low Traffic Puzzle - 1

Metrics Segment by

Visits Landing page

Share of visit City / State

Revenue Product line

Leads Type of page

Engagement


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Pay Per Click

• Expensive. Costs are rising.

• More reliable. Almost works out as traffic on demand.

• Excellent in short term for testing site conversion etc.

• Great source for steady supply of visitors if the ROI has been worked out as positive.


Metrics Segment by

Visits Keyword

Share of visit Ad group

Revenue Campaign

Leads Landing page

Engagement City / state

Cost per click

CTR


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Social media

• Creative approach needed.

• Build reputation, connect with current and future customers.

• Monitor and engage in conversations.

• Get established as the expert in the industry and subject matter.

• LinkedIN, Facebook, Twitter, Quora, many more.


Metrics Segment by

Visits Landing page



Leads Type of page

Engagement Network

Likes Follower category

Retweets

Comments

Virality


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Content distribution

• Great and evergreen strategy.

• Develop content which answers problems and issues important to the prospect.

• Point to the problem, describe solution (how to solve the problem) and refer to your product as a cost- effective way to do it.

• Distribute in multiple modes like PPT, PDF etc.

• Your blog, Slideshare, Ezinearticles, Blogspot, Facebook, Twitter


Metrics Segment by

Visits Source



Leads Type of content

Engagement


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Email lists

• Contrary to popular belief, it still works very well.

• List building is the challenge.

• Auto-responders and email shots.

• Great for prospect nurturing.

• Need to provide high content to sales ratio (suggest 70-30% or even 80-20%).


Metrics Segment by

Visits Lists

Share of visit Time of the day

Revenue Day of the week

Leads Date

Engagement Subject line

Delivered ratio Message/Offer

Open ratio City / State

CTR


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Media buying

• Best to use targetted messaging and avoid branding in the initial stage.

• Banners on highly targeted sites like Moneycontrol, Lifehacker, Gizmodo.

• Radio, TV, print.


Metrics Segment by

Impressions Source

Visits Offer

Orders Banner/ad design

Subscriptions Day, time

Engagement


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Newsletter advertising / solo-ads

• Study several issues of the newsletter to study approach, content to sales ratio.

• Response rates can be pretty good with a nicely matching message.

• Owner endorsement can boost the response rate very high.

• Watch response rates like a hawk.


Metrics Segment by

List size Newsletter

Visitors Offer

Orders Banner/ad design

Subscriptions Mailing day

Engagement


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Measure. Spot the winners. Repeat.

Solving the Low Traffic Puzzle


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• Example target URL:

– www.domain.com/page.php?utm_source=twitter&utm_medium=social&utm_campaign=whybuyreason31

• Another one:

– www.domain.com/page.php?utm_source=google&utm_medium=cpc&utm_campaign=core-doors

Tracking & Measuring Campaigns


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To get 2x sales (or leads), you can

• 2x the traffic (expensive, recurring cost) or

• 2x the conversion (one time effort, low cost).

Example (Sale Price = $100)

• 100 visitors @ $1 per visitor (total=$100), 2% conversion (2 sales) = $50 cost per sale



Conclusion

• You can afford costlier traffic if you get good conversion rates.

* You can afford costlier traffic if you convert better.

Conversion Optimisation for Higher ROI

Visitors Cost/visitor Total cost Conversion %

Sales Total sales Profit

100 $1 $100 2% 2 200 100

200 $1 $200 2% 4 400 200

100 $1 $100 4% 4 400 300

100 $2* $200 4% 4 400 200


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Landing pages offer the highest ROI for time invested.

• Offer to landing page message match

• Highlight benefits. If you show features, add a bit about how these features benefit the user.

• Credibility boosters – logos, associations, awards, number of users etc.

• Clear call to action – must have. Show what they will get if they click.

• Check with in-page analytics report or heat map.

• Check bounce rate and see how you can reduce this. Focus on high traffic pages first.

Landing Page Optimisation


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Check bounce rate and see how you can reduce this. Focus on high traffic pages first.

• Continue the experience. Match colours, language etc.

• Ensure offer to landing page match.

• Reiterate the promise.

• Don’t bait and switch.

Landing Page Optimisation - 1


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Highlight benefits. If you show features, mention how these features benefit the user.



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Credibility boosters – logos, associations, awards, number of users etc.



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Have a clear call to action. Show what they will get if they click.



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GA allows A/B split testing for FREE.

• What to test?

• Set up different versions.

• Set up the conversion goal.

• Run Test.

Split Testing with GA


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Split Testing with GA - demo


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• Low traffic considerations (micro-conversion)

• Statistical significance

• Part splitting for avoiding risk of a major dip

• Validate results by repeating tests in future

Always Be Testing

A/B Split Testing with GA – watch out


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• Define KPIs. Define targets

• REAN framework

• Segmentation

• Modeling

• Ideas for low traffic situation

• Landing page optimization

• Testing

Summary


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Thank YouSeby Kallarakkal

@sebyk

[email protected]

Arun Agrawal

@ebizindia

[email protected]


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Appendix A


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• Define goals

• Define funnels

• Define goal value

• Create multiple profiles

• Eliminate internal IPs

• Use custom variables

• Create custom reports

• Set alerts

• Tag events

• Tag outgoing links

Best practices for GA tagging & configuration

analytics for customer acquisition - presentation at nasscom product conclave 2013

Business

credibility

digital analytics

landing page

afford costlier

low traffic

creative approach

highly engaged

high traffic