Here's how you could navigate the myriad of digital metrics to demonstrate value of campaign investment to the sales team.
As marketers, we are often challenged to demonstrate value in every investment. With the proliferation of digital media channels, the myriad of metrics to measure success is hard to be defined as well as applied. From old school metrics like CPC and CPM that were an extension of reach and frequency from the TV era to view-through rates, dwell time, and click-to conversion ratio, the list is endless.
So how do you make sense of the jargon books when the media agency throws them at you?
It is important to take a step back and look at your campaign objective that could be to increase sales, generate leads, gain share, build a community, etc. The metrics should reflect the objectives and preferably be easy to understand, consistent, and have a clear link to sales/market share.
I will divide the digital metrics into the following three categories:
1. Brand awareness:
At my company, we do a lot of targeted email marketing to consumers who wear glasses and would like to try contact lenses. Due to the targeted nature of the medium, we get up to 30 to 35 percent open rates for these eDMs. From an open rate standpoint this is considered very high, but my next question is "so what?" What does it mean for our business? What is the optimal level of spend?
These questions become even more serious in businesses like ours where there is an intermediary between the consumers and us. Contact lenses being a medical device are dispensed by optometrists. If optometrists don't see new people walking into their door as a result of the campaign, the whole effort is a waste. Therefore, at times our customers and sales team do not see a direct correlation between our investment in eDMs and generating new leads.
There is a strong need for the development of a 'reliable' leading indicator to forecast the impact of the campaign on sales. Marketers need to work closely with media agencies to develop and validate a regression-based model for their respective categories. This metric will serve to convince key stakeholders about the value of the investment behind these channels.
The metric should reflect the following key elements:
Let me conclude by saying there is no silver bullet as far as digital/integrated metrics are concerned. It's not surprising that we still haven't cracked how to measure the effectiveness of TV advertising after so many years. We have always said that 50 percent of advertising works, hard to know which part. The clearer the link that we can establish between our digital marketing campaigns and sales, the closer we would be to taking marketing from unjustifiable operating expense to a measurable investment.
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Mandeep has over thirteen years experience of building brands with blue-chip organizations like Johnson & Johnson and Pfizer across FMCG & Medical Device categories. His latest assignment is to launch a newly acquired medical technology start-up business across Asia-Pacific.
Mandeep is a recognized expert in integrating emerging media to drive business results. In 2007, he led the launch of one of the first branded apps on Facebook. The app was a finalist at Cannes and won the highest recognition for marketing excellence in J&J. In 2009, he pioneered the launch of the first iPhone app in J&J, which was featured in the Sydney Morning Herald as an example of innovation.
Mandeep has spoken widely on social media, mobile marketing & multichannel marketing at conferences across Asia-Pacific. He writes regularly for ClickZ and has been a judge for the Australian Marketing Institute (AMI) Awards for Marketing Excellence.
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Wednesday, July 23, 2014