How to use Web Analytics to measure ROI, better understand your customers and improve your performance?

How to use Web Analytics to measure ROI, better understand your

customers and improve your performance?

CO.STATION – July 10th 2014

P2

DIGITAL MARKETING SOLUTIONS

« DIGITAL MARKETING AS

GROWTH ACCELERATOR »

FOCUS ON ANALYTICS

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DIGITAL MARKETING SOLUTIONS

10 experts

8 certified Google AdWords/Analytics consultants

Multidisciplinary & multilingual team

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DIGITAL MARKETING SOLUTIONS

WORKING LUNCH: AGENDA

1. Web Analytics introduction

Interpret a report in Google Analytics: the basics

2. How to measure the ROI of your marketing actions?

Set-up goals

Determine values for each action

Special business case with a SaaS business

3. Perspective on what the new version of Google Analytics (Universal Analytics) can offer to your business

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DIGITAL MARKETING SOLUTIONS

WEB ANALYTICS INTRODUCTION

DIGITAL MARKETING SOLUTIONS

Source: http://www.youtube.com/watch?v=3Sk7cOqB9Dk

GOOGLE ANALYTICS « IN REAL LIFE »

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DIGITAL MARKETING SOLUTIONS

MEASURE/TRACKING

Each click can be tracked even mouse movements

From numbers to information

… and from information to action!

“ I know half my advertising isn't working, I just don't

know which half. ” William Lever

(1851-1925)

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DIGITAL MARKETING SOLUTIONS

GOOGLE ANALYTICS IN PRACTICE

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DIGITAL MARKETING SOLUTIONS

MEASURE THE ROI OF YOUR

MARKETING ACTIONS

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DIGITAL MARKETING SOLUTIONS

1. Define the goals of the business What’s the role of your

app/website/online presence?

2. Define and set up KPI’s that we want to measure: • Contact form • Quote request • Subscription to a newsletter • E-commerce transaction • …

• For each of these goals, define its value

3. Analyze interactions with each visitors with all channels online and offline

4. Define concrete actions from the analysis

MEASURE WHAT HAS AN IMPACT BOTTOM LINE

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DIGITAL MARKETING SOLUTIONS

TOOLBOX UNIVERSEM

http://toolbox.universem.be

Define maximum CPA (Cost Per Acquisition)

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DIGITAL MARKETING SOLUTIONS

MAILJET: SAAS BUSINESS CASE

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DIGITAL MARKETING SOLUTIONS

Software As A Service – SAAS characteristics for Mailjet:

• Monthly recurring revenues

• Freemium model

• High growth

• 3 currencies and 4 languages

Reminder: all data are only there for illustration

MAILJET: SAAS BUSINESS CASE

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DIGITAL MARKETING SOLUTIONS

From a visit to a good customer: many steps!

1. Lots of visits

2. Freemium users Signed up on Mailjet

3. Active users Sent at least one email

4. First time paying users

5. Holy Grail: Recurring customers !

MAILJET: SAAS BUSINESS CASE

10%

50%

30%

70%

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DIGITAL MARKETING SOLUTIONS

The conversion funnel:

MAILJET: SAAS BUSINESS CASE

10%

50%

30%

70%

Visits

Freemium users

Active users

First time customers

Recurring customers

1000

100

50

15

10,5

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DIGITAL MARKETING SOLUTIONS

Defining your maximum CPA, parameters:

– Monthly Recurring Revenues (MRR): 50€

– Gross margin: 75%

– Churn rate: 3% as opposed to retention rate (97%)

MAILJET: SAAS BUSINESS CASE

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DIGITAL MARKETING SOLUTIONS

Example of a cohort analysis for Mailjet

MAILJET: SAAS BUSINESS CASE

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DIGITAL MARKETING SOLUTIONS

Lifetime value = MRR * Gross margin *

MAILJET: SAAS BUSINESS CASE

1

Churn rate

Lifetime value = 50€ * 75% *

= 1250€

A customer uses Mailjet 33,33 months on average

1

3%

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DIGITAL MARKETING SOLUTIONS

Two key guidelines for SAAS startups:

Lifetime value > 3* CPA

Months to recover CPA < 12 months

Max CPA for Mailjet = 417€

Inspired by http://www.forentrepreneurs.com/saas-metrics/

MAILJET: SAAS BUSINESS CASE

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DIGITAL MARKETING SOLUTIONS

With a global conversion rate of 1%, you should pay

less than 4,17€ for each visit on Mailjet.com

But conversion rates are varying hugely depending

on:

– Traffic source

– Location

– Awareness of your product in the market

– Timing

– …

MAILJET: SAAS BUSINESS CASE

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DIGITAL MARKETING SOLUTIONS

TAKE DECISIONS OUT OF THIS ANALYSIS

Segment your visitors

Identify the actions to optimize your development

+20%

+2%

+50%

+25%

+30%

-10%

-2% +7%

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DIGITAL MARKETING SOLUTIONS

UNIVERSAL ANALYTICS

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DIGITAL MARKETING SOLUTIONS

FUTURE WITH UNIVERSAL ANALYTICS

• Universal analytics

• Focus on Visitors instead of visits

• Measure and understand the

complete funnel from prospect to

customer

• « Multi-screen » & « Multi-channel »

• Custom Dimensions & Metrics

• Offline & Online

Continuous optimizations and understanding

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DIGITAL MARKETING SOLUTIONS

1.Determine how much you can pay for a new

customer/prospect

2.Measure and calculate your ROI depending

on your business model

3.Take actions and enlarge your trafic sources

to find great ideas for your business while

always using data to confirm your new

initiatives.

CONCLUSIONS

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DIGITAL MARKETING SOLUTIONS

Contact

Hubert de Cartier

Partner & Project Director

+32 (0) 81 713 431

hubert@universem.be

@hubcy

Available on Slideshare this afternoon!

LET’S STAY IN TOUCH