Amidst a slew of data from new digital tools, even successful marketers find it hard to know "which half of my marketing is working?" – or to explain to the CFO where they should next invest in digital and why. Instead of searching for a universal ROI solution, marketers need to think strategically about their own customers' path to purchase. By linking audience, engagement, and financial impact to their key business objectives, they can build a model that ensures marketing will matter for their business in the digital age.

1. Which Half of My Digital
Marketing Is Working?
@David_Rogers
Author, “The Network Is Your Customer”
Faculty director, Digital Marketing Strategy,
Columbia Business School
AMA Research and Strategy Summit 2012
Leading Research Transformation

2. 2

3. Companies worked with

4. from IF
to HOW
to WHY

5. Linking digital to business objectives

6. “Half the money I spend on
advertising is wasted.
The trouble is I don't know
which half.”
- John Wanamaker, 19th century department-store
magnate and father of advertising
6

7. Swimming in data

8. “Marketing ROI in the Era of Big Data”
• Use of data
• Use of digital channels
• Measurement across
digital & traditional
• ROI best practices

9. 100% of CMOs agree that
successful brands use customer data
to drive marketing decisions
but
39% of marketers say they can’t
turn their data into actionable insight

11. Speaking different
languages

12. When asked to define “marketing ROI”,
37% of marketers make
no mention of financial outcomes

13. ROI is…
( Return
Investment
-1 ) x 100%

14. 57% are not basing
their marketing budgets
on any ROI analysis

15. Looking for the
silver bullet

16. 70% of CMOs are looking for a
“cross-platform model for
measuring marketing spend and
tying it to ROI”

17. Comparing apples
& oranges

18. Engagement
is not engagement

19. Engagement is NOT a metric
… it is a class of metrics

20. Subscribers Likes Followers Downloads
Views Shares Retweets Time on app
Top Videos Wall posts Klout Data gained

21. Which half
of my
digital is
working?

22. Agile marketing modeling
Objectives 4 Kinds of
first Metrics
Focus on Build your
KPIs own model

23. Start with objectives

25. TECHNOLOGY
FIRST??

26. Brand building?
Customer service?
Sales / direct marketing?
“Influencer” relations?
Social responsibility?
Lead generation?

27. Once you know your objectives…
…the data are no longer overwhelming

28. 4 kinds of metrics

29. 1. Audience metrics

30. 1. Audience metrics
Frequency
Reach
Fans / followers
Views
Monthly uniques

31. 2. Channel engagement metrics

32. 2. Channel engagement metrics
Retweets (Twitter)
Comments (Facebook)
Time on site (website)
Votes cast (forum)
Click-throughs (brand banner ad)

33. Channel-specific metrics are more common in digital

34. 3. Universal engagement metrics

35. 3. Universal engagement metrics
Brand awareness
Brand sentiment
Purchase intent
Customer satisfaction
Net Promoter Score (word-of-mouth)

36. 4. Financial metrics

37. 4. Financial metrics
Revenue
Market share
Customer acquisition
Customer retention
R.O.I.

38. Audience Channel engagement
Financial Universal engagement

39. Build your own
model

40. 3.5m YouTube views
2.7m Twitter impressions
38% pre-launch awareness
in target audience
100k+ test drives

41. Channel Universal
Audience Financial
engagement engagement
Pre-
Social Social launch Sales
media media aware
views inter- ness
action
Test Savings
drives on mkg
(lead spend
gen)

42. Marketing funnel & customer networks
Broadcast Customer Networks
TV, radio, out-of-door Search, buzz, blogs
,
Direct mail, brochure Online research, user reviews
Product test, comparison Social networks, YouTube,
local search
In-store purchase Group discounts, purchase
on-line/in-store/mobile
Reward points “Friending” (FB, Twitter, email),
customized up-selling
Reviews, links, “likes,”
social buzz
42

43. Brand X new product introduction

44. Model for diagnosis
Bad SEO
70-90% of Shaped by Amazon
mkg spend
Display: coupon only
Etail + retail
Very little advocacy

45. Model for planning
New CMS
Partner w/Amazon
Promote 3rd party
reviews
Encouraged
advocacy

46. Focus on KPIs

47. Audience Channel engagement
Financial Universal engagement

48. KPIs achieved
• Top-seller in
category on
Amazon
• Best performer
for the company
in retail stores

49. Customer segment: Cross-border travelers
(US to Mexico)
KPI: Increase share of
wallet vs. cash

50. Marketing plan based on KPI
Visa online
Hotel/site websites
media plan
Airport ATMs (arrival) Onsite Visa
calls-to-
Tourist sites action

51. 7 Habits of agile
marketing modelers

52. 7 Habits of the agile marketing modeler
1. Make it everyone’s job Not “dept of big metrics”
2. Be iterative Don’t wait for the annual survey
3. Be skeptical Don’t accept just any metric
4. Be data-driven Not just hunches & feels-good
5. Be customer-centric Don’t lose yourself in the data
6. Be imperfect Don’t wait for perfection
7. Be decision-driven Never measure just to measure

53. Objectives 4 Kinds of
first Metrics
Focus on Build your
KPIs own model

54. Thank you!
contact@davidrogers.biz
Email me for:
• Slides
• Research study