8-20-13-figure-2-marshall-sponder

The 1 Percent Rubric - 5 Questions Leading to Convergence

  |  August 26, 2013   |  Comments

Business leaders need to understand what they are going to get in return for their efforts and investment - what the structure of success "looks like" before deciding to move forward.

Last month I discussed a new analytics paradigm for a successful 360-degree "convergence" framework that provides deeper and more actionable information than we can get from the various analytics platforms today.

This month let's focus on the primary elements needed to enable the new paradigm to thrive. The expense of setting up and configuring disparate converged solutions places heavy demands upon analysts and support staff. Business leaders need to understand what they are going to get in return for their efforts and investment - what the structure of success "looks like" before deciding to move forward. For example, when business leaders do not understand the value coming from hiring more analysts, or have decided it is more cost effective to outsource analytics to third parties, it's hard to imagine "convergence analytics" ever taking root there.

One way to find out if businesses are ready for convergence analytics is by creating a rubric based on five questions; most of the answers aren't too hard to come up with using Facebook, LinkedIn, and Twitter searches.

5 Questions

  1. Is 1 percent or more of your company's head count made up of analysts/business intelligence? Derived from LinkedIn searches on company name where "analytics" or "analyst" is in an employee's profile. I reasoned that at least 1 percent of an organization should be working in their primary business roles as analysts in order to support a converged analytics implementation. In later columns, I will provide percentages of analysts to overall head count within several specific industry verticals.
  2. Are the analytics/business intelligence team(s) siloed? This is a qualitative answer and needs to be gathered via surveys or interview information, unless it is published elsewhere.
  3. Does the analytics team have high visibility to the executive suite? Derived from IR reports, ORG charts, and third-party sources.
  4. Is there a strong executive presence on emerging media channels? Derived from Followerwonk/Twitter, Facebook Graph Search, and LinkedIn.
  5. Does a significant percentage of employees have a strong interest in marketing analytics? Derived from Facebook Graph Search and Facebook Advertising - this is additional to the 1 percent head count search on LinkedIn.

I used the rubric with the data from the "Multichannel Retail 2013" research from L2 Think Tank (see Figure 1 below), and posted my thoughts about the study here.

8-20-13-figure-1-marshall-sponder
Figure 1: Fashion Retailer Matrix of E-Commerce vs. Brick and Mortar features driving online to offline purchases. Source: Reproduced with permission from L2ThinkTank.com.

8-20-13-figure-2-marshall-sponder
Figure 2: Organizations where the number of analysts is over 1 percent of the total head count. Source: WebMetricsGuru Social Intelligence.

I answered the first question for my rubric by using LinkedIn. Gap, Lacoste, Michael Kors, Nordstrom, and Macy's have large enough analytics departments to support converged analytics solutions (see Figure 2 above).

But finding out how "siloed" the analytics teams are (Question 2) is not as easy, as it requires a qualitative discovery process to get the information and the same could be said for ascertaining how visible analytics teams are to the executive suite (Question 3). Executive presence in emerging media channels is easier to come up with (Question 4) using specific keyword searches in Followerwonk/Twitter or other social listening tools.

8-20-13-figure-3-marshall-sponder
Figure 3: Is the corporate culture analytics driven? Source: WebMetricsGuru INC.

I answered Question 5 (see Figure 3 above) using Facebook Advertising data to calculate the number of employees of each retailer in the L2 study who are interested in some aspect of marketing automation, and who have a college degree (in red - this filters out interns), comparing the former to the number of employees who are identified as analysts, based on their LinkedIn profiles.

Caveat: I used disparate data to try to provide some "convergence analytics" of my own! In an imperfect world, coming up with workable answers often means assembling fragments of data from disparate sources.

8-20-13-figure-4-marshall-sponder
Figure 4: Fashion brands most likely to succeed when implementing a converged analytics solution. Source: WebMetricsGuru INC.

Once the right rubric was applied to the L2 data points, Nordstrom, Macy's, and Bloomingdales emerged as the organizations within that dataset that could benefit and support a convergence analytics platform, if they chose to develop one. Case in point, Nordstrom has its own data Innovation Lab and uses BlueDay platform from The Yacobian Group to increase its in-store profitability by 3 to 7 percent. Macy's has 1.38 percent of its employees involved in some aspect of analytics, and according to L2, Macy's is also very effective at driving in-store sales, though it is less effective than Nordstrom at linking its online to offline e-commerce capabilities.

In closing, the right rubric can help organizations gauge their own readiness for convergence analytics, while, at the same time, vendors can identify the organizations most likely to succeed with converged implementations they propose.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Marshall Sponder

For over a decade Marshall Sponder has influenced the development of the digital analytics industry with his WebMetricsGuru writings that focus on social media metrics, analytics and media convergence. He also possesses considerable in-house corporate experience with roles at IBM, Monster.com, Porter Novelli, and WCG while continuing to work with start-ups. Marshall is a Board Member Emeritus at the Web Analytics Association (DAA) and teaches Web Intelligence at Rutgers University and Baruch Business College. Marshall is the author of "Social Media Analytics: Effective Tools for Building, Interpreting, and Using Metrics," published by McGraw-Hill in 2011.

COMMENTSCommenting policy

comments powered by Disqus

Get the ClickZ Analytics newsletter delivered to you. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

Jobs

    • Customer Service Representative
      Customer Service Representative (Common Sense Publishing) - Delray BeachDo you thrive on chaos? Love to multi-task? Enjoy a fast paced work environment...
    • Business Intelligence and Reporting Analyst
      Business Intelligence and Reporting Analyst (Stansberry and Associates) - BaltimoreStansberry and Associates is seeking a driven individual to fill...
    • Internet Marketing Campaign Manager
      Internet Marketing Campaign Manager (Straight North, LLC) - Fort MillWe are looking for a talented Internet Marketing Campaign Manager to join the...