ROI - measurement vs. marketers intuition

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ROI – RETURN OF INVESTMENT MEASUREMENT VS. MARKETERS INTUITION Marcel Vašš, CEO, Etarget Budapest, 27.11.2012

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Transcript of ROI - measurement vs. marketers intuition

Page 1: ROI - measurement vs. marketers intuition

ROI – RETURN OF INVESTMENT MEASUREMENT VS. MARKETERS INTUITION

Marcel Vašš, CEO, Etarget Budapest, 27.11.2012

Page 2: ROI - measurement vs. marketers intuition

HOW TO CALCULATE ROI? PROFIT / INVESTMENT = ROI %

profit gross margin or net profit - per sale - in 3 months - recommendation value coefficient

investment to traffic or to visibility (segmentate)

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WHAT TO MEASURE? KEY FACTORS THAT INFLUANCE METHODOLOGY

Size of your business / ambitions Uniqueness of product Complexity of Purchasing process

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1. LAST CLICK SALE AD SALE

Easy to measure Direct advertising cost vs. profit generated on sale •No brand ambition •No uniqueness •Easy to decide •Easy to buy

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2. MULTI CHANNEL SALE AD+AD+AD+AD... SALE

Possible to measure funnel advertising cost vs. profit generated on sale •No brand ambition •No uniqueness •Longer decision process •Easy to buy

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3. BRANDED SALE AD+AD+BRAND SALE

Hard to measure funnel advertising + brand awareness cost vs. profit generated on sale •Branded •High or low uniqueness •Shorter or longer decision process •Easy to buy

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4. MULTI CHANNEL CUSTOMER TO SALE AD+AD+CONTENT CUSTOMER SALE

Hard to measure Investment vs. engagement vs. sale •Branded •High uniqueness •Longer decision process •Complex buying process

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HOW TO MEASURE? BE AWARE OF ONLINE METRIC LIMITS

• technical limits of internet • people are deleting cookies • people are using more browsers witch mean more cookies • people are using more devices witch mean more cookies (work PC, home PC, mobile, tablet)

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TIPS FOR MEASUREMENT METRICS AND TOOL

MEASURING • last click analytics (GA, Etarget conversion) • multi channel clicks analytics (GA, coremetrics, omniture,webtrends) • retargeting analytics (GA, Etarget conversion) • post click engagement (Clicktale, CrazyEgg) • post ad view analytics (Coremetris, omniture)

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TIPS FOR MEASUREMENT METRICS AND TOOL

TESTING • regional tests (or other targeting) • coupon tests, call tests (internal metrics) • brand value analytics (branded vs. non branded store) • on store effect of online campaign (Facebook inspiration with loyalty cards)

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a) think about goals and ambitions b) find key influencers and their power to your success • right time on right place navigation • knowledge • brand Awareness c) define right metrics d) measure Total ROI is sum of partial ROIs. Lets combine it smart!

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THANK YOU!

QUESTIONS?

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