At a time when marketing budgets are under the microscope, you will be pleased to know that one of your existing assets can make more money for your company. And in most organisations, it's an untapped asset: digital marketing data.
We know how to use our existing data to measure each independent digital marketing channel to optimise the results. We are also well aware that a more complete measurement of our digital marketing would cross channels -- just as customers themselves cross channels -- and provide a more holistic view of our digital marketing hits and misses.
However, there is a widespread fear among marketers that is preventing this from happening: a fear of consolidation and integration. While this reticence may have been acceptable in the past, in 2009 it is no longer sensible. In my view it's positively career-limiting! Recent advances in the technologies and tools available mean we should update our perception of data integration. The significant technical challenges to combing the underlying data from multiple channel systems have been overcome, and there are new sophisticated tools that extend the capabilities of digital marketing technologies. Examples include Coremetrics Connect, Web Trends Marketing Warehouse and Omniture Genesis.
Establishing the technical capability needed for successful data integration requires persistence and commitment to the effort. But I believe the mental energy, minor headaches and set-up budget needed are worthwhile, and I'd like to offer some tips on getting started.
Know where you are heading
The most important criterion for success is to establish the marketing objective that will be enabled by data integration. This will drive the budget, team and results of your data integration project. With a clear marketing objective (and a few months of preparation), you will be able to generate incremental revenue and profits for your company. In our experience, the most impressive payback has come from two types of programs:
- remarketing via email, based on web behaviour
- advanced insight into media results; leading to adjustment in budget allocation
I'll describe an example for each of these types of programs. It should be possible to tailor these concepts and turn them into unique programs that generate incremental revenue for your business.
Remarketing via email, based on web behaviour
Strategy: intervene at a critical success milestone in your sales funnel. Pinpoint the fall-out of a specific desired behaviour -- such as an abandoned shopping cart -- which represents a purchase (desired behaviour) that began but was never completed (fall-out). Examine the timing and characteristics of the completed behaviour. The insight from the data will reveal the typical cycle time of shopping cart behaviour and the web visit patterns that correlate with the positive, completed orders. Your remarketing program can be timed and crafted to address these conditions.
Results: often a relevant, timely follow-up message to the abandoned shopping cart visitors will generate a 5-10 per cent response rate, and can increase the revenue of a campaign by 25 per cent.
Performance measurement: if possible, set up a control group that represents your customer segments, including the 'Big Spenders'. With the control group performance available for comparison, you will be able to continually measure the incremental value of your remarketing program.
Data integration requirement: such a remarketing program is technically enabled through the integration of data in both directions between your email service provider and your web analytics.
Apply advanced insight into media results
Strategy: shift your media budget to the source of your Big Spenders. Take a different approach with your budget considerations. Do not reduce your media budget; rather reallocate it according to the behaviour of your customers.
Here's how: segment your customers according to their average order size. The top 20 per cent of your customers probably contribute 80 per cent of revenue. With your data integrated, you can examine the customers with the highest average order size, and understand which campaigns and placements performed the best. Investigate the options to increase your spending for online advertising with the sources that generated more sales to your Big Spenders. Reduce your spending with the sources that generated lower-value orders with your 'Lightweight Shoppers' and the 'Cancellation Crowd'.
Results: assuming you have not saturated the audience of potential Big Spenders, your average order sizes will increase because you will reach and convert a higher proportion of big spenders. Remember to record the before-and-after metrics: you'll want to promote your success internally (and at your next performance review!)
Data integration requirement: this performance measurement requires that you integrate your ad server information with your e-commerce customer segment data.
Partner for experience and know-how
Finding an experienced and knowledgeable integration partner may seem like an obvious success factor, but during times of budget-cutting it's worth remembering that hiring specialist expertise is also more cost-effective in the long run. Delays are minimised, and the project is more likely to get off on right foot and provide faster payback.
During initial planning, it is important to include the firm you select to help you create a business case that includes the investment and estimated revenue. A strong data integration partner should have:
- knowledge of your digital marketing technology platforms
- a combination of technical and marketing skills
- experience of your category or business model
- data integration experience with remarketing programs and media budget evaluations
- evidence of applying patience, a strong work ethic and good humour -- in other words, the ability to pursue your initiative to its completion!
The tools are now ready to make data integration a reality -- and there's never been a better time to turn them to your advantage and become an online marketing star performer!
Rebecca Ellis is SVP Marketer Solutions at Acceleration.
