The final webinar in our five-part series, "Data-driven Success: Using Insights to Monitor, Measure and Grow" featured a panel of industry experts who discussed how online brands can use data more intentionally to grow. The live webinar took place on September 19, 2024, but you can watch it in its entirety here:
The panel included David Gray (Head of Product at Finch), Sam Ryan (CEO of Flocksy), and Justin Jefferson (Head of Strategy & Insights at Keen).
The discussion included lots of great insight and tips from the experts on how online brands can get the absolute most out of their data to achieve growth.
We polled the audience to see "What data source does your brand use most often in analysis of growth and success?" and over 80% said they use a healthy mix of site analytics data, conversion data, and channel performance data.
We expected this was the case, but the question still lingers for most brands: Are we using the right data and are we using it most effectively. The panelists provided some great insights on that question.
Let's dig into 5 key takeaways from the webinar.
1. Centralize Data for Better Insights
By centralizing your data, you can get a clear picture of how your marketing efforts are performing. You can see which channels are driving the most traffic and conversions, and identify areas for improvement. Go even further by breaking audiences up into cohorts. Don't be afraid to really dig in.
For example, if you notice that your email marketing campaigns aren't performing as well as you'd like, you can use your centralized data to analyze why. Perhaps your subject lines aren't compelling enough, or maybe your content isn't relevant to your audience.
Centralizing data can also help you make more accurate predictions about future performance. By analyzing historical data, you can identify trends and patterns that can inform your decision-making.
The first step is to get the right data tools in place. Finch uses it's proprietary data tool to bring all data sources together, roll it up into business metrics, and analyze activity. Just having the data in one place won't help if you aren't thoughtful in the analysis.
David gave a great example in the webinar. If you only pay attention to ROAS, then you might drop spend when you see a dip. But that dip may be due to other activity like the launching of an awareness campaign or a new A/B test launch. In that case, you don't want to drop spend, it will just hamper the awareness campaign.
Remember, the goal of data centralization is not just to collect data. It's to use that data to drive results. By focusing on metrics that matter, such as engagement and customer satisfaction, you can ensure that your marketing efforts are aligned with your business goals.
2. Measure Beyond Initial Customer Acquisition
It's easy to get caught up in the thrill of new customer acquisition. But let's face it: keeping those customers around is just as important, if not more so
A study by Bain & Company found that increasing customer retention by just 5% can boost profits by 25-95%. That's a staggering statistic that highlights the power of customer loyalty.
Sure, flashy campaigns and eye-catching ads can bring in a flood of traffic, but are they really delivering the goods? To truly measure the effectiveness of your marketing efforts, you need to look beyond the initial metrics and dive deep into the customer journey.
For example, according to Salesforce Research, 89% of consumers are more likely to make another purchase after a positive customer service experience. This underscores the importance of providing exceptional experiences throughout the entire customer lifecycle.
Think about it: A high-performing ad might snag a bunch of new sign-ups, but if those customers are bailing ship after a few weeks, something's clearly amiss. It's like building a house on a shaky foundation. You can paint it bright colors and add all the bells and whistles, but if the foundation is crumbling, it's only a matter of time before the whole thing collapses.
The key is honesty and transparency. Overpromising and underdelivering is a one-way ticket to customer churn.
Technology can be a powerful ally in this quest for customer understanding. Tools like AI can analyze customer interactions, identify pain points, and help you refine your messaging. Think of it as having a personal assistant who's always listening and learning.
And don't forget the importance of sentiment analysis. By tracking how customers feel about your brand, you can identify areas for improvement and nip problems in the bud before they escalate.
In the end, it's about more than just acquiring customers. It's about nurturing them, building lasting relationships, and ensuring that they're so happy with your product or service that they can't wait to tell their friends.
Measuring Success in the Post-Purchase Phase
The post-purchase phase, often overlooked, is crucial for long-term customer satisfaction and loyalty. Here are some key metrics to measure success:
Customer Satisfaction
- Net Promoter Score (NPS): Ask customers, "How likely are you to recommend [your company] to a friend or colleague?" A score of 9-10 indicates a promoter, 7-8 is a passive, and 0-6 is a detractor.
- Customer Satisfaction Surveys: Directly ask customers about their experience, from product quality to customer service.
- Social Media Monitoring: Track sentiment on platforms like Twitter and Facebook to identify areas of concern or praise.
Customer Engagement
- Repeat Purchases: The frequency of repeat purchases indicates customer satisfaction and loyalty.
- Average Order Value: An increase in average order value suggests customers are satisfied and willing to spend more.
- Customer Lifetime Value (CLTV): Calculate the total revenue a customer generates over their lifetime. A high CLTV is a sign of success.
Retention and Churn
- Customer Retention Rate: Measure the percentage of customers who continue to do business with your company.
- Customer Churn Rate: Calculate the percentage of customers who stop doing business with your company.
Additional Metrics
- Product Reviews: Positive reviews can boost sales and reputation.
- Return Rate: A high return rate can indicate product quality issues or dissatisfaction.
- Customer Support Ticket Volume and Resolution Time: Efficient customer support can enhance satisfaction.
Tips for Measuring Success:
- Set Clear Goals: Define what success means for your business and align your metrics accordingly.
- Use a Customer Relationship Management (CRM) System: A CRM can help track customer interactions and data.
- Analyze Data Regularly: Regularly review your metrics to identify trends and areas for improvement.
- Take Action: Use insights from your data to make informed decisions and improve the post-purchase experience.
3. Business Success Metrics > Vanity Channel Metrics
The most effective marketers know that true success isn't just about vanity metrics like ROAS and ACoS. It's about aligning your marketing efforts with your overall business goals.
Instead of focusing solely on channel-level metrics, it's time to zoom out and take a look at the big picture. What are your business-level goals? Are you trying to increase market share, improve customer satisfaction, or boost profitability? Once you have a clear understanding of your objectives, you can start to measure your marketing efforts against them.
One of the most important metrics to track is unit economics. This involves understanding your ideal customer acquisition cost, lifetime value, and marketing efficiency ratio. By knowing these numbers, you can determine how much you can afford to spend on marketing while still maintaining profitability.
For example, if you're selling a product with a low profit margin, you'll need to be more cautious about your marketing spend. You can't afford to spend more on acquiring a customer than they're worth to your business.
Media Mix Modeling (MMM) is another powerful tool for understanding the impact of your marketing efforts. By analyzing data from various sources, including sales data, marketing activities, and external factors, MMM can help you identify which channels are driving the most value for your business. More on MMM later...
Remember, the goal of marketing is not just to generate leads and sales. It's to drive business growth and profitability. By focusing on the right metrics and using data to inform your decisions, you can achieve lasting success.
4. Collaboration is Key for Contextualizing Data
Again, just because you have a lot of numbers doesn't mean you have a lot of insights. As Finch's CEO, Lee Roquet, always says:
"Data without context is just numbers."
For example, let's say you sell apparel. You have a line of shirts that sell on a pretty predictable basis. But all of a sudden you see a huge spike in sales for a specific shirt in that line. Did it all of a sudden get more popular? You weren't running any additional ads. What happened? Well, maybe an influencer or celebrity happened to be wearing the shirt in a social post and their audience found it. The only way to learn this is through data and collaboration.
- Data visualization tools can be a great way to make sense of your data. But they're only as good as the context you provide. By adding comments, annotations, and discussions to your dashboards, you can help your team understand the story behind the numbers.
- Storytelling is another powerful tool. By combining charts, explanations, and insights into a cohesive narrative, you can help your team see the big picture.
- When everyone understands the context behind the data, it fosters a more collaborative environment. Team members can work together to identify trends, identify opportunities, and make data-driven decisions.
- Remember, data is just a tool. It's the context that gives it meaning. By understanding the why behind the what, you can make better decisions and drive better results.
5. Get Advanced Insights with Media Mix Modeling (MMM)
First, what is Media Mix Modeling?
Media mix modeling (MMM) is a statistical analysis technique used to measure the impact of various marketing channels and tactics on a specific business outcome, typically sales revenue. It helps marketers understand the contribution of each channel to overall performance and optimize their media mix accordingly.
How MMM works:
- Data Collection: Historical data from various sources, such as sales data, marketing spend, and external factors (e.g., economic indicators, competitor activity) is gathered.
- Statistical Analysis: Statistical models, often using regression analysis, are applied to analyze the relationships between marketing inputs (e.g., ad spend, frequency, reach) and the desired outcome (e.g., sales).
- Attribution: The model determines the incremental impact of each marketing channel on sales, taking into account other factors that may influence sales.
- Optimization: Based on the insights gained, marketers can adjust their media mix to allocate budgets more effectively, identify underperforming channels, and maximize return on investment (ROI).
Without a clear understanding of your goals, even the most sophisticated data analysis tools won't help you achieve success.
Justin helped us understand how Keen thinks about MMM.
When it comes to MMM, your objectives are the foundation upon which everything else is built. They determine what data you collect, how you analyze it, and what insights you can glean from it.
Here are some key things to keep in mind when setting your objectives:
- Be specific. Don't just say you want to "increase sales." Be more specific about what you want to achieve (e.g., increase sales by 10% in the next quarter, expand a specific market by 15% this year, etc.).
- Be measurable. Make sure your objectives are quantifiable so you can track your progress.
- Be realistic. Set goals that are challenging but achievable.
- Be aligned with your overall business goals. Your marketing objectives should support your company's broader strategy.
Once you've set your objectives, you can start to collect and analyze data. This data will help you understand the impact of your marketing efforts and identify areas for improvement.
Remember, the goal of MMM is not just to collect data. It's to use that data to drive results. By setting clear objectives, you can ensure that your marketing efforts are aligned with your business goals and that you're making the most of your data.
By harnessing the power of data analysis, brands can make decisions that not only drive growth but also keep customers coming back for more. Throw in some AI and collaborative tools, and you've got a team ready to conquer the ever-changing market landscape.
Explore the Rest of the Series
