Dma detroit larry freed mar 3 2011

Metrics to Understand the Cross-Channel Customer

Larry FreedPresident & CEO, ForeSee Results

Customer Relationships Forged Across Many Touch Points

The web has given the consumer new powers…

The Super Consumer

The Super Consumer

Stronger Voices

Consumers can share opinions further and wider – as fast as they can type and hit send

The Super Consumer

Powerful Hearing

Consumers can seek out and absorb as many recommendations or negative comments as they want

The Super Consumer

Great Knowledge

Consumers have access to information and greater knowledge than ever before

The Super Consumer

Ability to CloneVisiting another store or company to compare products, services and prices is as easy as opening another browser tab

A New Order

The consumer is in charge• Great knowledge

• More competitiveness – lower barriers to enter

• More channels

• Lower switching costs

The Customer Era

The Customer

The Customer

The Customer

The Customer Era

The customer has the power

The importance of satisfying the customer has never been greater

Why Is Satisfying The Customer Important ?

• Consumers will go where they are satisfied• Traditional metrics don’t measure the total contribution• Scientific satisfaction analytics are predictive, feedback isn’t• You can’t manage what you don’t measure

The Customer Era: A Complex Environment

Channels

Acquisition

Sources &

Influencers

The Art and Science of Measurement Analytics

You cannot manage

what you do not measure

What you measure will

determine what you do

Can you improve

if you don’t measure ?

Metrics and KPIs

Customer Acquisition Cost

cam

pai

gn r

oi

conversion rates

bounce rate

cost-per-clickhome to purchase

search to purchase

spe

cial

off

er

to p

urc

has

e

% of repeat orders

overall traffic

aver

age

tim

e o

n s

ite

Customer Lifetime Value

# of new visitors

% of new visitors

geographic data

Firs

t C

all R

eso

luti

on impressions

Avg Order Size

page views

cost-per-visitor

refe

rrin

g u

rls

keywords

Metrics vary by channel and can be misleading when not used properly

Social Media

A typical scenario

“I just bought an awesome Panasonic 3D TV at Best Buy – on sale!”

Social Media>Search

Panasonic 3D TV Best Buy

Social Media>Search

Panasonic 3D TV Best Buy

Social Media>Search>SEM

Panasonic 3D TV Best Buy

Social Media>Search>SEM>Site

Analysis• Visitor came through our AdWord program

• Visitor came because of a recommendation from a friend on a social network

Social Media>Search>SEM>Site

Social Media>Search>SEM>Site

Social Media>Search>SEM>Site>Cart

Social Media>Search>SEM>Site>Cart>Abandon

Analysis• Visitor came through our AdWord program

• Visitor came because of a recommendation from a friend on a social network

• Item added to cart – different item than recommended

• Cart abandoned

Social Media>Search>SEM>Site>Cart>Abandon

Social Media>Search>SEM>Site>Cart>Abandon>Store>App>Purchase

Analysis• Visitor came through our AdWord program

• Visitor came because of a recommendation from a friend on a social network

• Item added to cart – different item than recommended

• Cart abandoned

• Used Mobile App without purchasing

• Purchased in store

Social Media>Search>SEM>Site>Cart>Abandon>Store>App>Purchase

Analysis• Visitor came through our AdWord program

• Visitor came because of a recommendation from a friend on a social network

• Item added to cart – different item than recommended

• Cart abandoned

• Used Mobile App without purchasing

• Purchased in store

Social Media>Search>SEM>Site>Cart>Abandon>Store>App>Purchase

Cross-Channel Customer Experience

Measure what matters most: Your customers across all touch points

Measuring Success

Not just through the eyes of the organization

Measure Success Through The Eyes Of Your Consumer

Satisfaction

Measure Success

Success = Satisfaction

What You Get

and

What You Expect

Satisfaction: The Measurement of Success

American Customer Satisfaction Index• Leading National Economic Indicator of Consumer Spending

• Founded at the University of Michigan in 1994, published quarterly

• Measures almost half of the U.S. economy: 45 industries, 200+ organizations

• Advanced methodology: Quantifiably measures & links satisfaction to financial performance

The ACSI: Unparalleled Measurement Technology

ForeSee Results 9 years, 70 industries500 customers800 active measures

ACSI 16 years, 45 industries200 organizations

AccuratePreciseReliable

Cause-and-effect methodology provides actionable insights

What Do You Need From Metrics?

Feedback vs. Measurement?

Site feedback Intercept surveymeasurement

Understanding What Metrics Are

Proxies for Customer Experience Metrics Don’t Work

Net Promoter

• Lacks precision, predictability; discards relevant data

Expert Opinion / Research Analysts

• Sample sizes often small, not projectable, not seen through

customers’ eyes

Customer Ratings

• “Popularity contests” are not metrics

Correlation vs. Causation

Correlation:Relationship between two variables

Causation:Relationship between two events• Event 1: The cause• Event 2: The effect - a direct consequence of the first

Predictive Analytics

Cause-and-Effect Methodology

Cause-and-Effect Methodology

Cause-and-Effect Methodology

Cause-and-Effect Methodology

Measuring Each Channel

How engaged are my visitors with social media?

Social Influencer Model: CS SocialPersona

What do they think of the experience on my social media sites?

On-site surveys (controlled social media): CS SiteManager

What do they think of my participation in social media sites?

Posted surveys (sponsored social media): CS SocialMedia

What do they do while engaging with my social media presence?

Social media monitoring tools for behavioral data

What value does social media bring to my business?

Social Media Value Calculation

Measuring Social Media Value & Influence

Social Media Value Calculation

Return on Social Media Investment

Managing Forward

Measure what drives satisfaction at the experience/transaction level

Measure overall relationship

Not All Measures are Created Equal

ForeSee Results

Apply science & technology to the measurement & analysis of customer satisfaction

Founded in 2001• Privately held• Financially stable with positive cash flow since 2005• Growth in every quarter

Heritage of innovation and scientific rigor

Patented technology • American Customer Satisfaction Index• University of Michigan

ForeSee Results Helps You

• Apply science to continuous voice of customer measurement

• Measure satisfaction and drivers of satisfaction and impact on future behaviors

• Profile personas and intents of your customers

• Diagnose strengths, weaknesses, and opportunities

• Predict impact of change on satisfaction and behavior; prioritize improvements ROI

• Provide actionable insights

• Compare against peers, competitors, best-in-class, yourself over time

Some of the Companies We Measure

ForeSee Results: Comprehensive Measurement System

ForeSee Results: Comprehensive Measurement System

ForeSee Results: Comprehensive Measurement System

ForeSee Results: Comprehensive Measurement System

ForeSee Results: Comprehensive Measurement System

Top 5 Takeaways

You cannot manage what you do not measure.

The consumer is multi-channel with unprecedented power.

Measure success from the customers’ perspective – not the organization’s.

Customer satisfaction drives conversion, loyalty, retention and word-of-mouth … and financial success.

To be successful you must do 2 things: satisfy your customer and be fiscally responsible.

Larry FreedPresident and CEOForeSee Results

(734) 205-2555

[email protected]

Twitter: larryfreed

Blog: www.FreedYourMind.com

www.ForeSeeResults.com

Questions?