Marketing Engineering: A systematic approach to harness data and knowledge to drive effective marketing decision making and implementation through a technology-enabled and model-supported decision process.
Market response models
- Inputs: actions that the marketer can control + environment
- Response model
- Objectives: monitor/measure, etc.
Value = Benefits – Price
- function (does the job)
- psychological (status)
- economic (saves money)
- Perceived risk
- subject and importance of need
- temporal aspects of need (urgency, frequency and duration)
Measuring Customer Value
- Objective Customer Value
- Internal engineering assessment (internal estimate)
- Indirect survey questions (pay for better quality, etc.)
- Field value-in-use assessment (economic benefit): Not only marginal costs but initial investment, etc.
- Perceptual Customer Value
- Focus groups
- Direct survey
- Importance ratings
- Conjoint analysis
- Behavioral Customer Value
- Choice Models
- Statistical models / Data mining
Segmentation -> Targeting -> Positioning
- how does the segmentation fit into the strategy
- which variables can be used
- exclusive segments?
- how many segments?
- Traditional segmentation
- reduce data (PCA)
- develop measure of association
- identify and remove outliers
- form segments (cluster analysis): are they clear and robust?
- profile segments & interpret
- Attribute-based perceptual maps
- identify other products & attributes
- get data from questionnaires
- Preference Maps
- Joint-Space Maps
Translating Preference to Choice
- first choice rule: infrequent, expensive
- Share of preference rule: often, cheap, etc.
For [target segment], the [offering] is [positioning claim], because [single most important support].
- Judgmental Methods
- Sales force composite estimates: let the sales force forecast
- Jury of executive opinion: different stakeholders
- Delphi method: anonymous and iterative
- Chain ratio method: split up in its factors
- select attributes of product
- develop bundles
- do survey
- segment customers based o part-worth function
- design market simulation
- select choice rule
- adj market shares
Top 10 Lessons
- Marking Engineering is Marketing
- ME is a means to an end
- frames the opportunity costs for alt. actions
- requires judgment
- whole greater than the sum of its parts
- data & info do not automatically result in value
- rapid prototyping
- every model has its downside
- ME requires lifelong learning
- be a coach rather than a teacher
Insights for better Implementation
- Be opportunistic
- Start Simple; Keep it Simple
- Work backward
- score inexpensive victories
- develop a program, not just a project
I really liked Principles of Marketing Engineering. The book gives a great overview over the topic and different approaches. It’s written like a textbook, so it can be a bit lengthy in parts but otherwise, a nice book.
Avoid “anticipointment”: bridging the gap from ad to site
- Ads and web site work together – don’t just invest a ton in one medium
- Marketeers fall easy into the ad trap because it’s easier than creating an usable, engaging web site
- People expect that the click from the ad will be of even more value than the ad
- Online Marketing Value Chain: Basically Customer Lifetime Cycle
Most of these steps will be on the web site!
- Click ad, engage deeper in the landing page
- Make their way through conversion opportunity
- Become loyal customer
Creating a Successful Lead Nurturing Strategy, Part III: When Should I Call?
- Call within 5 minutes of the initial contact
- Call early at morning or late in the afternoon
- Call on Wednesday or Thursday – I personally tried this against Monday and Friday and it was highly effective
- Call them up to four times and send one email in the first 24h
- Test these tactics
Creating a Successful Lead Nurturing Strategy, Part IV: Your Long-Term Strategy
- The main is not to sell but to maintain a relevant conversation
- Offer relevant and personalized content – recent study showed that most content simply sucks, so watch out
- Email – automated, personalized and relevant; reports, tips, guides, best practices
- Phone – Follow up; provide deeper information, answer questions
- Direct mail – reinforce what you’ve talked about; again personalized and relevant
- This process should be repeated maybe once a month
Optimization Is Greater Than the Sum of Its Parts
- Testing & Targeting are greater than just once
- however often they are siloed
- Start with testing and segment the results
- This helps you to find better content for targeting
Building a Business Case for Optimization
- Biggest problems are processes and politics
- They hadn’t ownership over the site
- Testing generates positive ROI!
- Optimizing landing pages increases off-site ROAS (Return On Ad-Spending)
- Test to fail faster – some of your assumptions are probably wrong
- Dig into analytics, segment and provide insights
The Collaboration of Testing Ideas
- Include other people and departments in your testing
- Often people in development, IT, creative, etc. have ideas – just ask them
- Test Ideas:
- Test different landing pages: home page, product page, internal search, etc.
- Reinforce ad text/graphics on the landing page/multipage setup
- Test ads
- Test incentives for submitting to your email database
- Test emails
- Build a story with the ad and following pages
- Test different viral/referral elements: coupons, vouchers, …
- Test different forms
- Test % Off vs. $ off
- Test your CTA copy, size, color, style
- Test scarcity on offers
- Test different copy approaches: informative, funny, benefits oriented, etc. and analyze segment behavior
- Test signs of trust: security message, shipping info, return policy, etc.
- Test geographical targeting
- Test simple content vs. rich media
- Test content vs. no content
- Test free shipping vs. % off vs. $ off vs. guarantee vs. …
- Test promotion tresholds: 10% on $50 vs. 15% on $100
- Test different internal search results – hand picked, automated, editor picks, big brands, cheapest first, best selling first, highest rating first, etc. and segment(!)
- Understand your goal – what are you’re trying to improve?
- Start with the bottom in your funnel – it’s easier to get more impact
- Try to understand why alternatives work better
- Try to improve one theme at a time, e.g. decrease registration drop off, copy style, etc.
- Focus on big things: product shown, pricing, primary copy, images, offer, CTAs
Five Times to Test: 1 — When you need to optimize beyond the click
- Data without analysis and communication is not very useful
- Even then without taking action, it’s practically useless
- Often lots of money is invested in driving traffic but less in converting the traffic
- Example: large business $100MM PPC budget, less than $200k for optimizing landing page/website
- Mark Typer, Wunderman: 15% Optimization, 85% Ad spending
Five Times to Test: 2 — To resolve internal disputes
- Do you have a dispute? Just test the idea
- Similar things can work different on different websites, e.g. CTA wording
Another reading session. This time it’s the Adobe Digital Marketing Blog. One of the first posts are from the omniture blog which is now that blog.
Getting your daily dose of dashboards?
- “feel good reporting” = long reports nobody reads
- Instead of reading 50 pages, provide fast 30 seconds overviews
- Daily monitoring helps you to fix problems fast
Industry benchmarks: everything you need to know
- Problem with benchmarks: things are measured differently
- Metrics vary between days, geography, etc.
More on conversion benchmarks…
- How should I act based on trends in benchmarks?
- E.g. conversion rate down – what does this mean?
- CTR for emails up – which mails, which basis?
Got Alerts? Don’t let this happen to you!
- Wanted to buy a new graphics card
- While checkout a message said “your shopping cart is empty”
- Check but couldn’t add anything to the shopping cart
- Activate alerts for your most critical metrics!
The Dark Side of A/B Testing: Don’t Make These Two Mistakes!
- Example: New home page with special offers and cleaner design
- 90/10 split test, i.e. 10% to new design
- KPIs: home page conversion rate and revenue per home page visit
- both increased
- Problem: Which helped increasing the KPIs – Clearer design or special offers?
- Solution: Don’t change more than one element on a page – it helps you understand your customer’s behavior
- Alternatively: use MVT
- Example: tested new thing but CV lowered dramatically
- Look at your customers – are the new or old?
- Especially old, frequent customers can be unreceptive to changes
- Solution: Segment your customers, better on RFM metrics
How to Spend Fewer Dollars, Smarter and Faster, during Tight Times
- Search: real-time, easy measurable
- Email marketing: fast, easy measurable
- Online video: expensive but measurable
The Challenges and Value of Digital Marketing Integration
- Customers are
- Better Connected – more information, can easy switch channels
- Bombarded – tons of information
- Empowered – can publish reviews, write on their blog, etc.
- Savvy – higher expectation for relevant and personalized experience
- Harder to track customers on different platforms but possible
User-generated Content and Word of Mouth Marketing
- Conventional marketing
- Intercept – target and expose your message
- Inhibit – make it difficult to compare your product to other
- Isolate – remove all third parties
- Digital marketing
- Attract – create incentives for people to seek you out
- Assist – be helpful and engage with people
- Affiliate – mobilize third parties to become more helpful
- Analyze – find out what’s working and where you can improve
- Not only conversions matter, they rest of the people do too!
Reaching the Individual: Site Surfers Becoming People
- Each visitor is unique
- Provide relevant content if possible
- Understand the behavior of visitors – how can you improve their experience?
- Personalize as much as possible
Don’t Do This! 7 Pitfalls When Deploying Analytics (Part I)
- Neglecting key stakeholders – websites touch all facets of an organization!
- Focusing on tactical requirements – what are your strategic business requirements?
- Believing data equals requirements – don’t ask for KPIs ask for strategic goals
- Having too many KPIs – select these KPIs that are strongly tied with your goal
Don’t Do This! 7 Pitfalls When Deploying Analytics (Part II)
- Get too much into detail – don’t neglect the global picture
- Multiple versions of the truth – there are differences between measurements in tools. Get over it and start looking at trends!
- Isolate yourself – Start teaching how to use analytics and bring power users into your circle for more innovation
- Analytics success is all about building a baseline for performance (your KPI trend), and trying new things to improve on this baseline. That’s it!
How to Make Testing Successful
- Do it right the first time, so you have accurate data
- Start testing the important stuff and act on your findings
- Start with politically easy things first
- Be excited about testing and evangelize
Answers to Practical Questions about Targeting
- Test site elements, content bits, CTA, etc.
- Targeting helps to feel your customer at the right place
- You can practically target everything
- First-time visitor can be targeted by referrer, keyword, time of day, day of week, geography, browser, OS, etc.
Do You Have an Automated Response and Lead Nurturing Program in Place?
- Strategy for lead nurturing / drip marketing
- Send email from your real sales staff with phone number
- Send relevant content for your prospect – e.g. shopping cart abandonment -> send email with reminder; different emails for different industries in a B2B setting
- The timing should be right – first contacts to leads should be within five minutes(!); try emails for longer periods
- Follow up quickly and then back off slowing – don’t spam your prospect
- Automate everything
The Art and Zen of Testing for Success
- Don’t just take lift as a goal
- Start witch question: e.g. should be button be blue or red? Is the navigation on the left or right more effective?
- Try to answer ‘why’
- Advantage: It isn’t about the goal anymore, it’s about insights