Notes from Avinash Kaushik on Brand Measurement: Metrics & Analytics at The Art of Marketing Conference in Chicago.
Avinash Kaushik is the co-Founder of Market Motive Inc and the Analytics Evangelist for Google.
Through his blog, Occam’s Razor, and his best selling books, Web Analytics: An Hour A Day and Web Analytics 2.0, Avinash has become recognized as an authoritative voice on how marketers, executive teams and industry leaders can leverage data to fundamentally reinvent their digital existence.
Avinash puts a common sense framework around the often frenetic world of web analytics and combines that with the philosophy that investing in talented analysts is the key to long-term success. He passionately advocates customer centricity and leveraging bleeding edge competitive intelligence techniques.
Avinash has received rave reviews for bringing his energetic, inspiring, and practical insights to companies like Unilever, Dell, Time Warner, Vanguard, Porsche, and IBM, as well as delivering keynotes at a variety of global conferences, including Ad-Tech, Monaco Media Forum, iCitizen, JMP Innovators’ Summit, MeasureUp and Web 2.0. He also lectures at major universities such as Stanford University, University of Virginia and University of Utah.
Avinash recently received the 2009 Statistical Advocate of the Year award from the American Statistical Association.
- How do you find and influence people?
- How does the business of influence grow?
- In the past, if you were a brand or a company that wanted to find and influence people, you used to go to the newspaper.
- 51 years worth of advertising disappeared in 8.
- Newspapers are dead.
- Consumers spend 40% of their time watching TV; marketers invest about 43% of their money on TV.
- Consumers spend 23% of their time on mobile devices; marketers spend about 1% on mobile marketing.
- Consumers spend about 6% of their time on print; marketers spend 29% on print advertising.
- What is your marketing strategy when it comes to finding people and influencing them on channels where they actually spend time?
- Once we get people to engage with us on our digital existences, what do we do?
- What type of experience do we create when we drive them there?
- Never let your marketing campaigns write checks that your digital experience can’t cash.
- Deliver satisfying experiences that create value.
- Data enables execution of strategies.
Expect More – greatness via better accountability
- We have more data than what we know what to do with it.
- Clicks, Impressions, Visits and Page Views, Video Views, Followers/Fans/Likes are garbage.
- Those are not true measures of influence.
- HITS = How Idiots Track Success
- Unfortunately, we let the data drive our decisions.
- You can do better and should do better.
- We need to change how we measure success.
- Bounce Rate = “I came, I puked, I left.”
- When you look at your bounce rate, you need to figure out why you sucked and fix it.
Measure your Brand Destruction.
- A 1 second delay in page response can result in a 7% drop in a conversation rate.
- Being driven by page views/cpm is a poor way to make money.
- I want you to deliver such a great experience that I want to keep coming back again and again.
- The average account abandonment rate is 70%.
- Fix the problem.
- In the context of everything that is possible, you have to look holistically.
Share of Search
- There were 290 million queries for car insurance in the USA last month. How many of those did you share?
Do you pay attention to the VOC? – Voice of the Customer
- What do you do with the data you get.
- The only 2 questions you need to ask in a customer survey:
- Why are you here?
- Were you able to complete your task?
Today’s Measures of Success :: Loyalty, Recency, Conversation Rate, Days & Visits, Branded Brand Recall, Share of Self, etc.
- Which piece of content makes you the most money?
- A lot of web analytics are garbage.
- What you need to look at is:
- Acquisitions – how well am I doing when people come to my website?
- Behavior – once they come here, how did they behave?
- Outcomes – what was the outcome?
- Put all traffic into three buckets: Owned. Earned. Paid.
- Don’t just obsess about traffic, focus on the conversions.
Embrace Economic Value
- We spend a lot of time trying to acquire traffic.
- The problem is that at the end of it, the average conversion rate is 2% for the country’s top websites.
- What about everyone else?
- What is the one most important thing your website is trying to do? Those are your macro conversions.
- What are the other things you can do that can add value that could become your mico conversions.
- Your economic value is driven from you macro and micro conversions.
- When you obsess about the 2% you say nothing else matters.
- Don’t measure success purely by the one night stands.
- What things are driving a direct response?
- What things are driving your branding?
- Don’t settle for the 2%.
- The process of purchasing and engaging is changing dramatically as the web becomes more sophisticated.
- How do you optimize your digital marketing budget?
- 1 – Think in a more sophisticated way.
- 2 – Drill down.
- Get a more sophisticated understanding how your marketing can deliver delight to your customers.
- 1 – Understand. 2. Test 3. Be less wrong.
- Social media shows a fundamental change in how we market.
- Newspapers, magazines and TV have a disconnected relationship with the person on the other end.
- It’s not about shouting louder or more frequently.
- That’s becoming less effective over time.
- Traditional Marketing put marketing in the center and people on the periphery.
- Internet Marketing Creates relationships between the company and the customers.
- The Social Web Revolution is conversational marketing.
- Marketing is changing from the bullhorn to the cans connected on the strings.
- Followers and Likes don’t matter or measure anything.
- How are you adding value?
- How are you improving the lives of your customers?
- Are you delivering what your customers want?
- Good example = Esquire Magazine on Twitter. Most of their links go to other websites and to their competitors.
- It is possible to use social media to build your business.
- One of the best Facebook Pages… BMW. Add value to the people that love you.
Social. Think Different.
- How do you incentivize the people in your company to think differently?
- You incentivize and influence them with data!
How to Measure Your Social Reach
- 1 – Conversation Rate – #of audience comments [or replies] per post.
- 2 – Amplification Rate – your followers are your first level network.
- Less than 10% of your followers read what you say.
- The size of your second level network is the unique people who follow the people who follow you… 3.7 million people.
- That’s more reach than you can get with most advertising channels.
- # of Retweets Per Tweet
- #of Shares Per Facebook or Google+ Posts
- # of “Forwards” of social contributions
- Applause Rate
- # of positive clicks per social contributions
- Economic Value
- Sum of Short and Long Term Revenue [found by the Conversion Rates driven through social channels]
- TrueSocial Metrics – a tool to measure your social reach.
Information is powerful… but it is how we use it that will define us.
More from Avinash…
Were you at The Art of Marketing? What were some of your favorite quotes from this session or key take-aways?