Measuring Marketing Spend:

Transcription

1 Measuring Marketing Spend: Multi-Stage Marketing Mix Modeling Doug Jensen VP, CRM & Corporate Marketing Analytics Estée Lauder Companies October 2018

2 Marketing Objective: Accurately Measure Marketing Across the Consumer Decision Journey Challenge / Opportunity: Measure marketing objectives when sales isn t the only outcome Measure the tactics contribution on each stage of the journey: awareness, consideration / engagement, conversion Understand how upper funnel tactics contribute to each stage of the journey Determine how digital & e-commerce marketing efforts drive upper funnel activity Measure e-commerce marketing halo onto brick & mortar 2

3 Consumer Decision Journey We conduct consumer research to determine the important touch points on the consumer s journey with our brand in a key category Answers questions such as: What are the purchase journeys for a brand in a given category? In-store Experts The counter experience Advertising What tactics or touch points are important for awareness, consideration, conversion? In-store Displays and assortments Word of Mouth What does this mean for our brands? Online reviews Promotions Social Media ( Owned and Earned ) 3

4 Consumer Decision Journey / Funnel = Many Tactics There are many choices! Awareness Create Demand & Drive Traffic Consideration & ENGAGE Engagement CONVERT Conversion & Loyalty Traditional Tactics Traditional Paid Media Editorials, PR mentions Sampling Events Word of Mouth Retail Events Retail Windows In-store Navigation Product demostration In-store Samples Direct Mail Demo Loyalty Programs (Brand and Retail) Direct Mail Online Brand-Owned Retailer Influencer Non-Branded Search Paid / Non-Paid Social Awareness Display Prospecting (Look-a-like Targeting) Native Content Tutorials/How-to Videos Paid Social / Paid Video Brand Social Posts Live Chat Branded Search Performance Display Retargeting Display Live Chat Online Sampling Online Exclusives Loyalty Programs Live Chat Ratings & Reviews Tutorials/How - to Videos Co-op Awareness Display Content / Visibility on Retailer sites Co-op Performance Display Sampling GWP Retailer Loyalty Programs Repurpose influencer UGC and cultivate influencer relationships Influencer-led retail meet-up events Partnerships with influencers for promotions or discount codes (if appropriate) Product collaborations with Influencers 4

5 Marketing Mix Modeling Multi-Stage Approach Multi-stage approach is a cascade model that measures the direct and indirect effects of marketing performance at each stage of the consumer journey / purchase funnel Multi-stage approach allows to measure impact of both offline and online media investments on awareness, consideration, and conversion to sales Offline Media TV 1. AWARENESS 2. CONSIDERATION 3. CONVERSION Print Radio OOH Direct impact Direct impact Direct impact Online Media Display Search QUERIES (GOOGLE) Indirect impact WEBSITE TRAFFIC Indirect impact IN-STORE-SALES ECOMM-SALES Social In-Store Promotions Worker Hours Other actions, etc. STEP 1: IMPACT OF BOTH ONLINE & OFFLINE MEDIA ON SEARCH QUERIES STEP 2: IMPACT OF BOTH ONLINE & OFFLINE MEDIA ON WEBSITE TRAFFIC STEP 3: IMPACT OF BOTH ONLINE & OFFLINE MEDIA ON B&M AND ECOM SALES 5

6 Marketing Mix Modeling Multi-Stage Approach Estimate a total ROI per marketing lever by funnel area by integrating online to store effect Identify differences of efficiency between lever at each step of customer purchase Contribution 1. AWARENESS Queries 2. CONSIDERATION Website Traffic 3. CONVERSION Sales Illustrative ROI 6

7 Google & Facebook Actively Partner on Measurement 7

8 Marketing Mix Vendors Source: Forrester Research, Marketing Mix Modeling Landscape Overview by Luca Paderni, 2011 (classifications), updated with additional vendors listed in Forrester Wave, Q

9 My Perspective on Marketing Mix Modeling vs Multi- Touch Attribution Multi-Stage Marketing Mix Multi-Touch Attribution Strategic vs. Tactical Strategic Tactical Areas of Spend Evaluated Areas of Consumer Journey Evaluated Traditional, Digital & Social Media; In-store; E-commerce Awareness, Consideration/ Engagement, Conversion E-Commerce Conversion Halo to Total Business Yes No Endorsed by Google & Facebook Yes No 9

10 Conclusion on Marketing Mix Marketing Mix Modeling is a standard method for measuring overall marketing effectiveness and endorsed by Google and Facebook Multi-stage modeling allows us to measure all parts of the consumer decision journey and have a good integration of ecommerce investments: Having an un-siloed measure: same ROI scale for online & offline tactics Understanding impact of digital & social media levers at each step of the consumer decision journey Measuring the Online to store effect: how e-commerce investments are impacting B&M directly and indirectly through halo and cross channel effects 10