Exactly how much do your online and offline channels contribute to your sales?

Do you really know exactly how much each of your online and offline channels are contributing to your sales?

The blunt truth is that the great majority of marketers don’t!

Google for instance claims that businesses make an average of $2 for every $1 spent on Google Ads, but this is just a blatant case of Google marking its own homework. Are they saying that $1 Google Ads caused the $2 worth of sales, or just that there is some form of observed correlation? And how do they account for the impact of all the other forms of advertising from TV to outdoor to press to email?

Given the billions that hang on decisions about how to allocate marketing budgets across different online and offline channels, we felt that it was essential to work on giving our clients the tools and the knowledge to properly support these important decisions.

We started with some key assumptions:

– That decisions to purchase are necessarily complex and driven by multiple factors. Many of these factors like brand awareness cannot be recorded in the context of an individual sale, but many can be, and for those that are, we should look at all the known recordable events before a sale, and certainly not just online events, or worse still, just last clicks.

– What we call recordable events are activities like receipt of a catalogue, opening an email, visiting a website from a social media advert, or using Google Ads to find a website. Some of these events are driven by the customer like natural search, and some are driven by the vendor like receiving a catalogue.

– That we would assemble all the recordable online and offline events before each sale and use these as the dataset from which to analyse the true impact of different channels and different time intervals between an order and an event.

– That having overcome the challenge of collecting all the online and offline events together, we would focus our analysis on the central question of how to weigh the different types of events. Intuition tells us that an event 60 days before an order may have played a smaller role in the decision to purchase than one on the same day as the order, but the question we needed to answer was by how much? Also, should we give different weightings to different types of event? Is an opened email more or less important than a website visit happening as a result of a click through from a Google Ad?

– We do not want to suggest that marketers should ignore unrecordable events such as TV viewing or driving past an outdoor lightbox. Rather that their effects need to be analysed using different techniques like time series analysis, and that in so far as credit is given to recordable events it should be shared with the credit due to unrecordable events.

We have used orders and recorded events from two very different retailers to provide the data sets for our analysis. The first and surprising discovery was to find just how many recordable events actually happened. One reason for this is that customers may make multiple visits to a website before purchasing or open an email multiple times. The following table shows the number of recorded events that preceded each order in a 90-day time window:

The analysis is ongoing, and we are aiming to publish a white paper on it in August, but there are three important initial findings that we can share:
– different channels should carry different overall weights, and we can analyse what they should be
– that each channel has its own time decay curve. In other words, the impact of events in one channel will wear off more quickly than for another channel.
– that the set of weightings used for new recruits should be different to those used for existing customers

The final results will include quantification of these findings.

If you would like us to share the white paper with you when it is ready please email us. It will be free for our newsletter recipients who order it in advance, but will be sold to others.

And if you would like meanwhile to have a chat to us about how to solve your own marketing mix attribution problem, we would be delighted to discuss, so please get in touch.

 


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


Do you really know whether your company should install a customer data platform?

Customer Data Platforms (CDPs) are taking the marketing world by storm – the Customer Data Platform Institute projects that marketers will spend $1.3 billion on them in 2020.

But the important question for your company is whether you would really benefit from having one?

So, what do CDPs really do? At a very high level they:
– ingest all available sources of online and offline customer data and build a deduplicated single customer view
– provide the capability to profile and segment customers
– enable personalised and consistent communications to take place across all channels by connecting your marketing technology
– support you in visualising customer performance

We have devised a simple 10-point questionnaire to help you understand whether your company could benefit from a CDP. It won’t be telling you whether should definitely should have one, as you will need a business case for that, but it will tell you whether CDPs are worth investigating.

QUESTIONNAIRE

If you want to start to find out more about what a CDP could do for your company then please order our free e-book CLICK


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


Just how personal do you want to get?

There is a lot of interest amongst marketers in personalisation. And yes, we all like to be recognised for what we are. But we suspect that people are becoming wary of trivial personalisation or ‘personalisation lite’.

For example, recognising what I last looked at on a website is reminding me of the blindingly obvious.

However, telling me about a local retail event in the near future that is connected to what I was looking at on a website is much more likely to catch my attention.

And, for a full version of personalisation, understanding that I am a longstanding and loyal customer, rewarding me for my loyalty, and telling me about something that is actually of interest to acquire, really does hit the spot.

So, what is required to make this deeper level of personalisation actually work in practice?

Well, the first item needed is an effective personalisation engine. A tool that decides what kind of personal experience I should receive based on the information it knows about me. These engines work by the marketer setting rules or conditions which if satisfied mean that the customer will be sent a specific version of an email, or see a particular image, or offer on a website.

But next you will need to have joined together the online and offline data worlds. That allows the personalisation engine to know both that you are a loyal customer and that you are interested in a particular kind of merchandise or customer experience.

Most personalisation engines deliver ‘personalisation light’ because they ignore the history of your relationship with the company and just focus on what you have been browsing in the last 24 hours or so.

We have teamed up with Fresh Relevance (see www.freshrelevance.com) as our personalisation engine partner to allow you to give your customers full personalisation.

We manage this by sending Fresh Relevance a nightly feed of customers’ characteristics – factors like loyalty, spend, and long-term merchandise category purchases, so that these can be used in combination with their immediate online activities and behavioural triggers.

UniFida and Fresh Relevance can deliver in combination personalisation that really makes a difference.

To find out more, please email us suggesting a time that would be good for you to have a chat.


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


Attaining a multi-touch attribution strategy

‘Attaining a multi-touch attribution strategy that works is like looking for the holy grail’. This is one of the conclusions in a report just published by the CallRail Research Unit (click here to download the report).

A key finding from their survey was that ‘36% of marketers say that lack of insights into the effectiveness of tactics, or an effective attribution capability, is the most damaging factor to their marketing efforts; a further 25% ranked it the second most significant factor’.

It so happens that we have recently completed developing a multi-touch attribution capability and it’s now part of UniFida.

It enables you to understand the relative influence, and ROI, of all your online and offline marketing channels and media.

We would like to give you a live demo and show you how it works. If you can spare us 30 minutes, please send us an email and suggest a convenient time for you.

 


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.


What’s indispensable for your marketing data ecosystem?

What should be the ‘condicio sine qua non’ of all marketing data ecosystems?


The answer is very obvious, but very often overlooked; a marketing data hub or customer data platform that joins together all the front end and back end data.

Underpinning virtually all the multitude of martech applications there is the ever-present need for a solid data hub into which, and off which, they can all feed.

For instance, take website personalisation; it clearly doesn’t make sense to focus the nature and content of a tailored customer experience based just on their recent browsing, when you could also know if that individual was a loyal and steady customer or someone who was only cruising for sale offers.

Or how can you respond to a subject access request under GDPR if your email service provider and order processing system are not in some way linked around individual customer identities.

So what are the key elements in a customer data hub?

  • A means of joining together every data item that relates to an individual using all possible match-keys from cookie IDs to postal addresses
  • Persistent ingestion and storage from all on-line and off-line sources of every item of data from individual transactions to inbound or outbound contacts without summarisation or concatenation
  • Accessibility to other systems both for ingestion and exportation of data that is relevant for that application

There is also the critical organisational element; the data hub is far more likely to be successful, and to provide value, if it is owned and manged by marketeers who get the reason for having it.

This doesn’t mean that the development of a data hub is simple and not needing to be built in collaboration with IT experts. Data is also often untidy or in need of modification like miss-spelt addresses.

There is also a plethora of potential data sources to be fed into the hub, such as:

  • Order processing systems (e.g. for order read donation for charities, and policies for insurers)
  • Website browsers
  • Call center contacts
  • Email service providers
  • Third party data sources like lifestyle overlays or prospect lists
  • Identity resolution tables such as gone-aways
  • Loyalty card applications
  • Appointment booking systems

to name but a few we have encountered.

And then the hub once fed has to drive an ever-growing array of marketing tools. At a very high level these tools either support insights or actions. Typical examples include:

  • Dashboards and data visualisation
  • Digital personalisation
  • Email service providers
  • Campaign selections and response analysis
  • Contact centres
  • DMPs for digital media targetingCustomer research

Our view is that marketeers who plan their technology eco-systems without first planning a customer data hub are giving themselves an ever-growing problem. On the other hand, get the data hub right, and there is no limit to what can grow out of it.


UniFida logo

UniFida is the trading name of Marketing Planning Services Ltd, a London based technology and data science company set up in 2014. Our overall aim is to help organisations build more customer value at less marketing cost.

Our technology focus has been to develop UniFida. Our data science business comes both from existing users of UniFida, and from clients looking to us to solve their more complex data related marketing questions.

Marketing is changing at an explosive speed, and our ambition is to help our clients stay empowered and ahead in this challenging environment.