Why tying efficiencies to dollars becomes important during an economic downturn.
In the column, "Online Marketers Can Weather the Financial Crisis," I offered action items for dealing with the economic downturn.
My goal is never to be a doomsayer, but rather to be prepared for the reality of the market -- good or bad. And that includes recommending common sense actions to shore you up and provide a bullet proof vest for more difficult times.
Reality is, when down times arrive, most companies first look to the marketing department to trim costs. This is not because marketing has the least value; it's typically because marketers usually do a poor job of tying marketing to direct revenue. This is easily fixed.
Conversion rate optimization should be the last thing you should consider trimming. Here is why.
Shot Across the Bow
We are already beginning to see signs of the economy slowing, "The New York Times" reports on brick-and-mortar sales:
And, here is Heather Daugherty, research director at Hitwise, discussing the Web economy:
The number above that is causing online marketers to lose sleep is the 5 percent decline in visits. For most of us, a decrease in traffic means an equal decrease in sales.
So what happened to this traffic? Did all of these retailers decide they needed less traffic? Did they stop buying ads? A few perhaps, but not all 500 retailers. This is direct result of consumer's behaving differently due to economic concerns.
Could your company survive a steep decline in traffic? A 10 percent or 20 percent decline?
Take Control of What You Can
For starters, marketers must acknowledge they have far less control than they think. They must also get a firmer grasp on what they do actually control.
You do not have control of the economy. While you may have some influence on the search engines, they are not under your control either.
So now is a good time to get serious about what you do control: the customer experience. By optimizing the experience you reduce the risk of taking a steep incline.
If you need to understand the math or you are trying to get buy in from your organization have them read this column.
Tying Efficiencies to Dollars
Last but not least, you should not be using traffic or even conversion numbers exclusively. Everything you do should be tied to a dollar value. Not only will this show the value of your work, it could also help you sort out priorities.
What are you doing differently in light of the economy? Let me know.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Bryan Eisenberg is coauthor of the Wall Street Journal, Amazon, BusinessWeek, and New York Times bestselling books "Call to Action," "Waiting For Your Cat to Bark?," and "Always Be Testing." Bryan is a professional marketing speaker and has keynoted conferences globally such as SES, Shop.org, Direct Marketing Association, MarketingSherpa, Econsultancy, Webcom, SEM Konferansen Norway, the Canadian Marketing Association, and others. In 2010, Bryan was named a winner of the Direct Marketing Educational Foundation's Rising Stars Awards, which recognizes the most talented professionals 40 years of age or younger in the field of direct/interactive marketing. He is also cofounder and chairman emeritus of the Web Analytics Association. Bryan serves as an advisory board member of SES Conference & Expo, the eMetrics Marketing Optimization Summit, and several venture capital backed companies. He works with his coauthor and brother Jeffrey Eisenberg. You can find them at BryanEisenberg.com.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
October 23, 2014
1:00pm ET/10:00am PT