With 2009 almost over, most will agree… Results-driven online marketing will be further justified and business will spend more in 2010. According to the latest 2010 eMarketer forecasting, online marketing will see one of the largest boosts in investment throughout the marketing/advertising industry. Smart spenders will look to further justify any increase in online spending by establishing solid test and respond campaigns. These campaigns will require analytic teams to further sharpen skills that provide accurate data results, as they learn more from customers.
With Adobe’s acquisition of Omniture, and companies like American Express launching new divisions dedicated to analytics and consulting, there is proof that smart investors are gearing up to benefit from analyzing data that is gained from online marketing initiatives.
“Analytics has been the hottest word [in marketing] for the past 18 months,” stated David Frankland, principal analyst at Forrester Research from Chantal Tode’s “AmEx’s new division displays value of data” in DM News. Tode also points out that this “ data value trend” is being supported by economic conditions which are “forcing marketers to analyze their marketing spend more carefully to ensure profitability.”
Working to meet client goals in 2010, without question, involves campaigns that show relative information that we can act on. We will replace marketing tactics that look good with elements that work together to support conversion and provide trending information that helps achieve long-term goals. There needs to be more substance from campaigns that can be applied to support conversion channels in acquisition, retention and winback models.
This continuous trend towards fully integrated analytic campaigns can be successful to almost any marketing department under three conditions:
- Reliable data gathering – tracking, coding, etc.
- Analytic management – resources
- Response capabilities – Now that I know this, how can I use this?
Having these three items, in addition to sufficient traffic, will enable you to explore and understand your customer’s online behavior more than you ever thought. Reporting to upper management or the CMO is going to become an even more daunting task without incorporating good analytics reporting.
As more of your customers go online to interact with your products and services, the marketing campaigns need to consider the wealth of information that increased activity provides. Learning customer behaviors through transactional experiences relates to customer retention. Customer retention tactics will help to provide us understanding about what is or not working when we lose customers and providing us with information that helps tailor effective winback approaches.
Proper analytics reporting will also establish unique user segments that we can use to tailor messaging and experiences that improve brand relationships. Solid analytics management will allow unique, personalized experiences. It will also establish larger test approaches to see what effects different funnels have on KPIs. For example: Will channeling traffic through different funnels increase probability for final conversion? Will certain interactive behavior help us predict lifetime value of a customer? Considering these items will help us focus on how to react and improve experience – all done through extensive analytic disciplines.
Without fully committing to a rigorous analytics management plan, businesses could lose out on the most important information of all – customer wants and needs.