Module 3: How to measure and maximize your Investment in the Addressable Platforms. Peter Vandre

Transcription

1 Module 3: How to measure and maximize your Investment in the Addressable Platforms Peter Vandre 1

2 Agenda Platform tracking innovation and impact on measurement Our integrated measurement framework How to measure Getting started 2

3 Infrastructure New competencies and addressability at scale extend the CCRM framework to capture a great opportunity Addressability at Scale The CCRM Framework Enterprise segmentation, which includes value and lifecycle dimensions, forms the foundation of CCF Customer Strategy Segmentation Value Planning Measurement and attribution at the segment level then drives macro-level media and channel budgeting allocation What data, systems, tools and technologies will be necessary? Experience Delivery Media Planning Channel Planning Targeting & Personalization This creates a complete optimized customer experience that drives increased LTV, efficiencies and shareholder value Organization How do we organize and what capabilities and business processes will be necessary? Financial Management Measurement & Attribution Budget Allocation Integrated targeting and customization across media and channels are optimized at the segment and individual level The Platform Marketer Competencies Identity Management Addressability Optimization Audience Management Platforms Organization Targeting Personalization Measurement Tech Stack Utilization 3

4 How do we measure all of this stuff? Both 4

5 Good news! The addressable nature of these platforms is opening up better measurement options Conversion pixels Track conversions on your site (Cookie) Tracking pixels Track who sees your ads (Cookie) Bring your own customer file Holdout groups (PII) Persistent platform IDs Cross device measurement, longer purchase cycles (Customer ID) 5

6 These innovations help us build consumer event streams We expect this to increasingly affect owned media interactions as well as paid media DM Delivered 2/1/2013 Shown Display Ad 2/2/13 3:05pm Calls 800 for property availability 2/2/13 3:06 pm Sent 2/2/13 5:05pm Opens 2/2/13 9:30 pm Clicks Paid Search Ad 2/6/13 Reads FB Post 9:00 pm 2/6/13 9:02 pm Completes Purchase Online 6/2013 9:15 pm User Event Table User ID Date Time Event ID Event Desc /1/2013 DM437 DM Delivered /2/2013 3:05 pm DI9076 Display Impression /2/2013 3:06 pm CC068 Inbound Call Center /2/2013 5:05 pm EM087 Sent /2/2013 9:30 pm EM438 Opened /2/2013 9:30 pm EM089 Clicked /6/2013 9:00 pm PS674 Clicks Paid Search /6/2013 9:02 pm Q8740 Reads FB post /6/2013 9:15 pm Q8740 Purchase Event Meta Data Event ID EM438 Creative Offer E 2014 Orlando Vacation Stay a night free with package purchase Audience Call center callers 6

7 Applying advanced analytics we can fractionally assign credit to each touch prior to a conversion (Attribution) 15% 20% 40% 20% 5% This scenario represents success in that the predicted customer value is realized/confirmed and there is a strong program ROI. Next step is to operationalize this scenario for maximum impact. User Level Attribution Predicted Customer LTD: $2,000 Event Cost Credit Attributed Value DM Delivered $ $300 Display Impression $ $400 Inbound Call Center Experience $ $800 Sent $ $400 Paid Search Ad $ $100 Program Level Attribution Campaign Display-DSP Spend $10,000 Impressions 102,504,000 Calls 320 Sales 45 Cost Per Activation $222 Total Value $45,000 ROI 350% 7

8 We need both top down and bottom up measurement methods Top-down (Aggregated Data) National media (TV & radio) $140 Local media (TV & radio) $200 Direct mail $180 Digital $83 All measurement dimensions (Customer segment, product, geography) Integrated measurement All measurement levels (Media, platform, campaign, placement) Display $60 Video $80 Search $91 Direct mail $75 Social $113 Remarketing - $12 Video 1 - $121 Branded - $87 DM 1 - $11 Social 1 - $50 Programmatic - $80 Guaranteed - $130 Video 2 - $35 Video 3 - $213 Video 4 - $23 Not branded - $99 DM 2 - $93 DM 3 - $210 DM 4 - $235 Social 2 - $163 Social 3 - $456 Bottom-up (Customer Level Data) 8

9 But, biggest measurement innovations are within bottom-up methods Customer/ micro geo level modeling and testing means we can measure smaller programs and tactics within programs drive accountability for owned media through financial metrics learn faster Are you doing this? Integration of paid and owned customer touches into bottomup attribution solutions Consumer/geolevel controlled testing within platforms Consumer-level simulation frameworks 9

10 How to add paid and owned social to bottom up attribution Integrating Paid Media Setup separate tracking codes for paid social vs. online display campaigns Update attribution models and reporting to output paid social within its own category Integrating Owned Media Interactions Develop campaign standards for owned social which outlines campaign setup, tracking, and data capture requirements Implement and tag custom landing pages for visitors from 1 st party blogs, FB, other social platforms Leverage native ads to instrument social tracking on third party platforms (ex. Facebook fan page) Update attribution models and reporting to include owned social channels 15% 20% 40% 20% 5% User Level Attribution Predicted Customer LTD: $2,000 Event Cost Credit Attributed Value DM Delivered $ $300 Paid Social Impression $ $400 Inbound Call Center Experience $ $800 Sent $ $400 Paid Search Ad $ $100 Program Level Attribution Campaign Facebook Ads Spend $10,000 Impressions 102,504,000 Calls 320 Sales 45 Cost Per Activation $222 Total Value $45,000 ROI 350% FBX Blog Remarketing Campaign 10

11 How to test in Facebook Leverage Facebook API tools like custom audiences, power editor to holdout random control groups and isolate experimental group CRM database 1 Group 5 Analyze Incremental Sales Customer, Fan Customer, Non-Fan 2 Prospect, Fan Prospect, Non- Fan Random sample 4 Social treatment for experimental groups From control group and 2 nd degree reach From experimental group and 2 nd degree reach Customer, Fan Prospect, Fan Random holdout control Customer, Prospect, Non- Non-Fan Fan 3 NPI 11

12 How to test in Twitter, Tumblr etc Unlike FBX, other social platforms do not yet enable targeting specific audiences by using NPI based social profile matching. Hence, instead of random holdouts, tests need to be set up with splits based on geography etc CRM database 1 Group 5 Analyze Incremental Posttest Sales Level 2 Test Cells 4 Social treatment for experimental groups Pre-test Sales Level From pseudo control group State B From experimental group State A Customers from State A Prospects from State A 3 Customers and Prospects from State B Analyze From pseudo control group State B From experimental group State A 12

13 How to test social channel impact (Owned Media) Native ad unites can be used to stimulate owned media interactions Platform Action to Measure (Test) Paid Media Unit (Control) Examples of potential tests (Random control approach) Incremental revenue from acquiring and engaging with a liker Incremental revenue from publishing posts on owned assets Liker acquisition sponsored story to nonlikers Page post Ad to existing likers Examples of potential tests (Pseudo control approach) Incremental revenue from acquiring and tweeting to followers Incremental revenue from publishing blog posts on Tumblr Promoted Accounts to non-followers In-stream sponsored post ad 13

14 What about other stuff that is hard to measure? Try customer-level simulation frameworks Use Case Establish appropriate comparison baseline to estimate revenue and savings impacts of s social media activities for which other measurement methods break down A Test Customers who posted on forum B Pseudo Control Customers who didn t post on forum How it works Identify sample of consumers impacted by social media action (test) Identify similar group of clone consumers but who lack desired social media test action (pseudo control) Compare key success metrics across two groups Average Sales per customer: $350 A B Modeled clones Average Sales per customer $100 Incremental Sales per customer =$150 14

15 Getting Started: First, shy away from short-sighted platform thinking and measurement We hear many flavors of this What, Facebook? No, it doesn t work for us. We did a test last quarter. 15

16 Next, align on what to measure KPI Definitions Measurement Levels and Dimensions Estimation Methods Enterprise Metric Playbook Measurement Goals: Consistency Comprehensiveness Accuracy Website Metrics 16

17 Know where your gaps are Share of Voice Index Available today Care Volume Resolution Rate % Care Index CSAT % Revenue Savings $ 2,345 $ 5,678 Impressions Conversion Rate Leads Generated 360 MM 34 K CSAT 23 % 88 % Revenue Savings $ 5,678 $ 1,234 Impressions Conversion Rate Revenue Leads Generated 4, CSAT 38 % 65% Savings $ 123 $ 567 N.A. Available partially / Uses assumptions Unavailable now Currently addressing 17

18 and create a roadmap to address those Long-term plan to develop, gather buy-in, implement and evolve marketing measurement Initiatives: Paid Media Q Q2 Q3 Q4 Jan Feb Mar April May June July Aug Sept Oct Nov Dec 1. Tagging guidelines Define On-going updates and edits, as needed 2. Process to implement and manage tags Set up process On-going process execution and maintenance Owned Media 1. Enhance bottom-up attribution Phase 1 Phase 2 On-going execution and maintenance 2. Integrate social and sentiment data in to MMO 3. Controlled Testing 4. Simulation Analysis 5. Customer Research Study Design Design Design Execute tests and maintain holdouts Analyze & Report Collect data Phase 1 Phase 2 Analyze & Report On-going execution and maintenance Always-on test and learn Always-on customer research study deployment 18

19 Summary Develop metric playbook and measurement roadmap If you aren t building cross channel event streams and testing advanced attribution you re behind Don t forget about getting owned platform interactions into your event stream It isn t just test, test, and more testing. We need smarter testing 19

20 Merkle Peter Vandre VP Digital Analytics