Tag Archives: Consulting

Little Data First

One of the more interesting experiences is my first trip through a new client‘s analytics. Much of the time I will have asked them before I look what conclusions they are drawing from what they’re seeing. They are often very detached from the reality of what’s going on, usually because of a couple of reasons. Given the emphasis on data these days, this is a problem, so let me mention a few things and hopefully you can ask yourself if they’re true about your data.

The first reason is faulty setup. One client was all excited about their volume of traffic and the depth of visiting until I told them that they weren’t filtering out visits from their own office. Once we did that the traffic declined quite a bit (but was obviously more indicative of what was going on). Another reason is that there is no filtering in place for spam links. I’m not sure why these companies (whose names I won’t cite here to give them any more visibility) refer traffic to so many sites, but it has the effect of ballooning bounce rates, decreasing time on site, and distorting a few other things.

Another reason the data is less useful is that they haven’t set up site search to report. Most sites of any size have a built-in search box. Analytics can report on what is searched for. This can help spot problems in navigation or topics that need to be given more prominence – maybe promoting them to a main navigation tab, etc.  Sometimes the client has an app that replaces their mobile web experience but they’ve failed either to install analytics or to link them to their web reporting.  Both are huge data fails

Finally, and this one is a bigger problem than most of the others, clients fail to figure out why they have a website in the first place.  What is it that they want users to do?  Buy something?  Fill out a form?  Visit a particular page?  Those should be set up as goals and successful completions should be counted. They fail to link all their other tools such as Webmaster Tools or their paid search such as AdWords into the analytics suite.  All of these things allow you to figure out the most cost-effective ways to use marketing and your site to drive revenues.

It’s funny to hear people talk about big data when the reality is that they still haven’t figured out the little data.  Once you’ve got the little data under control, you’ll be well-prepared to add additional layers to the complex views that result.  Got it?

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Not Actionable Or Not Able?

Marketing Executives Network Group

(Photo credit: Wikipedia)

We discuss the need to measure the results of what you’re doing here on the screed fairly often.  As you’ve probably figured out by now, I’m a big believer in applying data to decision-making, especially after decisions are taken and tactics are deployed.  As it turns out, my views about that part are fairly typical within the marketing community.

In a survey of marketing executives, The Conference Board and the Marketing Executives Networking Group found 75% of the respondents in agreement with the statement that “A primary responsibility of marketing professionals is to generate data-driven insights about prospects and customers, and then create a brand or sales story based on those insights.”   I especially like that language because it is inherently customer focused.

Two other findings, however, disturbed me quite a bit.  Only 39% agreed with the statement that “Most information available from monitoring social media is not actionable” 56% agreed that “Most of the members of my marketing team are not as skilled in the use of digital marketing as they need to be.”   Those two statements are probably related and let’s think about why.

First, if you’re having trouble taking action on your social analytics, maybe you’re measuring the wrong thing.  I totally agree that “likes” is a useless number, but using conversion pixels to measure assisted conversions from social media can provide a wealth of information about how your customers come to buy.  Maybe you’re not doing sentiment analysis (that’s not baked into the standard analytics packages but readily available). You should be. Putting aside sentiment, we can focus on trending topics among your user base as well as feedback on your brands and those of your competitor.  Those are all highly actionable data points.

With respect to the second point.  If your team is lacking in some critical skill, whether it’s digital marketing, writing, or sandbox, your job as a leader is to help them improve that skill until it meets the organization’s needs.  If not getting them training is a “resource issue”, think about what it’s costing you in missed opportunities.  Flip that to the positive:  if you’re getting good results now, how much better would they be if you could agree with the statement on your team’s abilities?  Maybe that’s why the data doesn’t seem to be actionable.  Is it “not actionable” or are you just not able?

If the results of the survey resonate with you, get some help to improve your results.  I’d love to be that help but there are lots of qualified people who understand how to help your company live up to the promise that digital holds. I don’t think that dismissing it as “not actionable” is the answer.  Do you?

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All Wrong Is Right

There is a truism in gambling that you don’t need an indicator that’s right all the time to help you predict winners.  You do just as well betting using an indicator that is wrong all the time as long as you remember to bet the opposite of what the indicator predicts will happen.  Consistency and accuracy are what you’re after, and something that is wrong all the time is very accurate, albeit in the wrong direction.

12 pack of Crystal Pepsi cans

(Photo credit: Wikipedia)

I thought of that when I read about a study to be published in the Journal of Marketing Research.  It dubs certain consumers “harbingers of failure,” because they are people whose tastes lead them to buy new products that are doomed to failure on a very regular basis.  In other words, if one of these folks buys your new to the market product, kiss it goodbye:

A study of retail purchases from about 130,000 consumers at a national convenience store chain found that 13 percent of them had purchasing habits that predicted failure of a new product, defined as surviving less than three years. Specifically, half or more of the products they bought flopped.

So, customers who bought Diet Crystal Pepsi are more likely to have bought Frito Lay Lemonade. Both failed. Further, not only is their early adoption of a new product a strong signal that the product will fail, but “the more they buy, the less likely the product will succeed,” the researchers wrote.

That’s from the Chicago Tribune report on the study.  So what does this have to do with your business?  We often get way too focused on what’s a straight line; the indicators that confirm a positive relationship between what we’re doing or marketing and a growth in revenues.  What this study points out is that we need, instead, to focus on ANY indicator that has a demonstrable correlation to our success or failure no matter what form it takes.  Finding 15,000 consumers who always seem to purchase products that fail is fantastic.  While it puts you in the unenviable position of rooting for certain people NOT to buy your new product, it also allows you to take action.  In this case, the recommended course is to ask people not only whether they would buy the new product but what other products they buy — to judge whether they have mainstream tastes.

And that should help you make more winning bets!

 

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