Why You Should Have Paid Attention in Math

Why You Should Have Paid Attention in MathUnderstanding Online Marketing Numbers and Data Tracking

SFU Summer 2011 Book Immersion July 22, 2011 Twitter @boxcarmarketing

Not everything that counts can be measured.

Albert Einstein

Not everything that can be measured counts.

Monique Trottier@BoxcarMarketing

There are 2 things we like to measure:

Things that lead to sales

Sales

Monique Trottier@BoxcarMarketing

Sales

Monique Trottier@BoxcarMarketing

What is a Conversion Rate

• Number of visitors who perform a desired action / Number of visitors to a page

• Desired action: buy a product, complete a form, etc.

• If there are 100 visitors to a particular web page and 5 people buy a book, then the conversation rate is 5%

• (5/100) * 100 = 5%

• Abandonment Rate is calculated in the same way, but it’s the number of people who do not complete a task divided by the total number of visitors

Sales

Setting Up Goals

• Admin Access

• URL Destination

Monique Trottier@BoxcarMarketing

Things that lead to sales

SalesMonique Trottier

@BoxcarMarketing

Website Visitors

Twitter Followers

Facebook Fans RTs

Press Mentions

Email Opens

Customer Feedback

Did we make money means what is the ROI?

• Return on Investment

• Did I make more money than I spent?

• Actually a tricky question: (Gross Profit - Marketing Investment) Marketing Investment

• Gross Profit = Gross Revenue - Cost of Goods Sold <OR>Gross Profit = Gross Revenue * Profit Margin (% of revenue that is actually profit)

• Invest $3,000 on marketing campaign and generate $30,000 gross revenue (1,000 copies sold at $30), if profit margin is 10%, then Gross Profit is $30,000 * 10% = $3,000

($3,000 - $3,000) / $3,000 = 0%

Things that lead to sales

Sales

Acquisition Website Visitors, time on site

ActivationNumber of pageviews, repeat visits, subscription (email, blog), account sign-up (profile data), Fan/Follower

Retention Email Opens, Click-throughs, Repeat visits

ReferralPress Mention, RT,

Refers 1+visitors to the site; Refers 1+ visitors who activate

Monique Trottier@BoxcarMarketing

What is Click Through Rate?

• CTR = Number of clicks on an ad / number of times the ad is shown

• Applies to ads, buttons, banners, etc.

• If banner ad is delivered 100 times (100 impressions) and receives 1 click, then the CTR = 1%

If you don’t know where you’re going, any road will get you there.

Misquote from Alice in Wonderland

Monique Trottier@BoxcarMarketing

A simple Contest

• Reach a new audience or reinforce our connection to an existing audience

Goal Lifecycle Action Reaction Metrics

Reach a new audience

AcquireActivateRetain

ListenIntroduce

ResponseVisit to the site

SubscribeReturn

@ / RT / CommentVisitors

Subscriptions (email/RSS)Fan/Follower

Account sign-upReturn Visits

Reinforce our connection to

existing audience

RetainReferralRevenue

Talk Pitch

Thank

ResponseVisit the site

ActRefer

@ / RT / CommentRepeat visitsEmail opens

CTR / Goal FunnelMentionsReferrals

Referrals who convert

Google Analytics: Annotations

Monique Trottier@BoxcarMarketing

Google Analytics: Title- or Author-Specific Searches

Google Analytics: Audience Segments

A simple campaign to increase Online Sales

• Use Twitter or Facebook to inform prospects about special promotions. • Exclusive, limited-customer/limited time offers.

Goal Metrics

Increase monthly sales monthly sales attributable directly to SMM

Increase % value from new customersSegment & Funnel: new customers

attributable directly to campaign

Increase conversions from Twitter traffic

Segment & Funnel: monthly revenue generated from customers from Twitter

Retain X% of new customers Repeat customers from that groupUnsubscribe rates

Cost per Lead > Cost per Conversion

• Cost per Lead = How much do I need to pay in order to get a visitor to my site who will take one of those micro actions that lead to a sale

• Cost per Conversion = What does it cost me to acquire a customer?Total cost of a campaign / Number of Conversions

Social Media Measurements

Monique Trottier@BoxcarMarketing

Platform Ratio of Posts to X Peak ConversionContent

Resonance

Email OpensDay

Time of Day

OpensCTR

Unsubscribes

Twitter RTsDay

Time of Day

RTs@

Recos

Facebook InteractionsDay

Time of Day

LikeShare

Comment

Things that lead to sales

Sales

Acquisition Website Visitors, time on site

ActivationNumber of pageviews, repeat visits, subscription (email, blog), account sign-up (profile data), Fan/Follower

Retention Email Opens, Click-throughs, Repeat visits

ReferralPress Mention, RT,

Refers 1+visitors to the site; Refers 1+ visitors who activate

Monique Trottier@BoxcarMarketing

$$$Investment

$$$FinancialImpact

Monique Trottier@BoxcarMarketing

MarketingActions

CustomerReactions

Non-financialImpact

Ask me about this stuff.

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Monique Trottier@boxcarmarketing

monique@boxcarmarketing.com