Many retailers possess high performance analytic tools but at one point they find that these tools are not providing what it required and expected. Higher end solutions like Web Trends, Omniture or Coremetrics have capabilities which may outrun what a basic retailer requires from their sites. No tool would automatically improve site performance right out of the box – marketers have to select and configure as the first step. Some of the reasons some retailers have with their unsuccessful data metrics could be because:
Data using has no methodology
Some of the tools provide more than 4-6 million different views of your site’s website data. Retailers and marketers need to put a methodology in place to analyze the data based on overall site goals, identify opportunities and test solutions using analytics. It’s mandatory to have a team and process in place to keep this moving.
Focus required on KPIs
Metrics has to be clearly defined and prioritized before the KPIs are received to get the maximum data results. Focus is lost when the metrics are not clear and there is no priority levels defined.
Poor implementation tools
Retailers need to ensure that the tools which are set to provide information on key metrics has to be implemented and configured correctly. Otherwise data presentation would not be accurate and misguided patterns will arise.
If incorrect or incomplete data occurs due to poor tool implementations or less focus, then marketers should not act on them. Accuracy issues occur when marketers tent to adopt the incomplete data.
Retailers need to ensure that people who control the tools should communicate with those who are responsible for the site.
Tool training is must
Each tool is unique in how it presents its data and lets you to navigate and acquire the desired metrics. Marketers require to be trained or have the basic understanding of how to exploit the tool and know where to look and which data to focus.
How to promote ROI mindset and mature from an activity-based to a result-driven retailer. There are many suggested options from marketers but the standard things are to build performance metrics, host weekly metrics meet and make the staff accountable for measurable results.
Performance metrics should start with every project having a performance scorecard that includes key performance indicators or KPIs. Weekly metrics meets allows marketing staff to review, discuss and reset direction based on ROI results. And finally ensuring the staff is accountable requires setting personal incentives within individual performance reviews and reward the abilities to meet or exceed the established targets.
Marketers should know that analysis is not an intuitive activity and they need to establish some momentum to infuse the ROI across everything. Some of the processes to initiate measurement within the ROI methodologies are:
Retailers need to focus their reporting on key metrics based on their marketing objectives. If retailers have the primary objective as ecommerce, then standard KPIs would be for average order size and browser to buyer conversion rate. Similarly if the site is geared towards lead generation, then a different set of metrics apply.
Marketers have to analyze data to identify trends and pinpoint areas that needs improvement. Shopping cart conversion funnels helps retailers see what percentage of visitors is lost on the shipping information page as an example. Examining the abandonment paths of the visitors would help further the immediate indication of what needs to be fixed to ensure customers are moving towards conversion stages.
Decision is important
Marketers and retailers after analyzing data are either not too sure of what conclusion to draw from the data and when to decide to make changes. Sometimes all major changes are done at once and results would not be convincing in the later data procured. Multiple changes make it difficult for marketers to know which specific changes had the greatest impact on performance. To avoid this both marketers and retailers need to make one decision at one time so that it can be measured. And action follows decision – you cannot improve results if you do not act upon the analysis.
Retailers measuring the results can plan their next strategies. marketers continue with the strategies and better them if the results are positive and if results are negative then strategies are re-organized and targeted.
So you’ve gotten lots of “likes” and “tweets” for your online store, but business has not really improved that much. Now what? If this were, say, a Soprano family enterprise, you could cozy up to your enemy’s enemy, knowing they could probably be turned into a friend. Instead, it’s just another fraught day at the online store.
Improving business is tied to knowing, not just your friends (and enemies), but their friends…and those friends’ friends. The key for online merchants is to understand both the social networks and online social activities of your site visitors and customers, says the executive of Chicago start-up The Echo System, which focuses on growing “return on social” (ROS), short for “return on social media.”
Sharing on Social Media
ROS riffs off of the phrase “return on investment,” (ROI) that perennial worry of all business owners. And, just like ROI, you need to know ROS to figure out how to improve the bottom line.
Social (at least in the online context) means a lot more these days than just “liking” and “friending” people, all the while tweeting about a one-day-only sale. For instance, it can mean examining the friends of those folks who “like” your store (they all have some), and what those friends of friends like, and whether your tweets are being re-tweeted, and by whom, says Lance Neuhauser, CEO of The Echo System. Read more
With online leading the pursuit of higher marketing ROI and accountability, behavior targeting can connect a backend purchase to the front-end targeting. this improves effectiveness and efficiency and optimize cross and up sell opportunities. From a marketing ROI perspective, there is a consumer journey with an identifiable path that leads to the transaction (purchase or registration) and further.
Retailers should know that when it comes to deploying ROI-focused marketing, brands must clearly define all steps that ultimately contribute to a potential sale and assign a distinct value to each action to ensure ROI metrics are in place every step of the way. In addition to these standard metrics, retailers can also implement a visit quality index which is a weighted composite of measures like key interaction rates, conversions, content paths, visit frequency. The visit quality index gives a snapshot of performance in terms of driving shoppers to the site’s highest value content and tools. Read more
- Organizational mindset, optimization processes, key metrics and technology are key areas for ROI success.
- Get the right analytic tool that will deliver the appropriate ROI analysis based on what you need and not what the tool can provide.
- Infuse ROI across everything to establish momentum since analysis is not an intuitive activity.
- Reporting to focus on key metrics based on marketing objectives
- Pinpoint key areas that need improvement and provide immediate indication of what needs to be implanted for conversion stages.
- Make one decision at one time to measure the impact it has on the performance. and ensure that action follows the decision.
- Behavioral targeting ROI ensures effectiveness and efficiency and optimizes cross and up sell opportunities.
- Build visit quality index metrics which gives snapshot of performance of shoppers to the site’s highest value content and tools.