Module 3:
How to measure and maximize your Investment in
the Addressable Platforms
Peter Vandre
1
Agenda
Platform tracking innovation and impact on
measurement
Our integrated measurement framework
How to measure
Getting started
2
New competencies and addressability at scale extend the CCRM
framework to capture a great opportunity
Addressability at Scale
The CCRM Framework
Enterprise segmentation, which includes value and lifecycle
dimensions, forms the foundation of CCF
Customer Strategy
Segmentation
Value
Planning
Experience Delivery
Media Planning
Channel Planning
Targeting & Personalization
This creates a complete optimized customer experience that drives
increased LTV, efficiencies and shareholder value
Organization
What data,
systems, tools
and
technologies
will be
necessary?
Infrastructure
Measurement and attribution at the segment level then drives
macro-level media and channel budgeting allocation
How do we
organize and
what
capabilities
and business
processes
will be
necessary?
Financial Management
Measurement & Attribution
Budget Allocation
Integrated targeting and customization across media and channels
are optimized at the segment and individual level
The Platform Marketer Competencies
Identity
Management
3
Addressability
Optimization
Audience
Management
Organization
Platforms
Utilization
Targeting
Personalization Measurement
Tech Stack
How do we measure all of this stuff?
Both
4
Good news! The addressable nature of these platforms is
opening up better measurement options
Conversion pixels
Tracking pixels
Bring your own customer file
Persistent platform IDs
5
Track conversions on your site
(Cookie)
Track who sees your ads
(Cookie)
Holdout groups
(PII)
Cross device measurement, longer
purchase cycles (Customer ID)
These innovations help us build consumer event streams
We expect this to increasingly affect „owned media‟ interactions as
well as paid media
DM
Delivered
2/1/2013
Shown Display Ad
2/2/13 3:05pm
Calls 800 for
Sent Email
Completes
Clicks Paid
Reads FB
property
2/2/13 5:05pm Search Ad 2/6/13
Purchase
Online
Post
availability
Opens Email
6/2013
9:15
pm
9:00 pm
2/6/13 9:02 pm
2/2/13 3:06 pm 2/2/13 9:30 pm
User Event Table
User ID
6
Date Time
Event ID
Event Desc
1234
2/1/2013
DM437
DM Delivered
1234
2/2/2013 3:05 pm
DI9076
Display Impression
1234
2/2/2013 3:06 pm
CC068
Inbound Call Center
1234
2/2/2013 5:05 pm
EM087
Sent Email
1234
2/2/2013 9:30 pm
EM438
Opened Email
1234
2/2/2013 9:30 pm
EM089
Clicked Email
1234
2/6/2013 9:00 pm
PS674
Clicks Paid Search
1234
2/6/2013 9:02 pm
Q8740
Reads FB post
1234
2/6/2013 9:15 pm
Q8740
Purchase
Event Meta Data
Event ID EM438
Creative
035586-2E 2014 Orlando
Vacation
Offer
Stay a night free with
package purchase
Audience Call center callers
Applying advanced analytics we can fractionally assign credit to
each touch prior to a conversion (Attribution)
15%
40%
20%
20%
5%
This scenario represents success in that the predicted customer value is
realized/confirmed and there is a strong program ROI. Next step is to “operationalize”
this scenario for maximum impact.
User Level Attribution
Program Level Attribution
Predicted Customer LTD: $2,000
Attributed
Event
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Cost
Credit
Value
Campaign
Display-DSP
Spend
$10,000
Impressions
102,504,000
Calls
320
Sales
45
DM Delivered
$.35
.15
$300
Display Impression
$.001
.20
$400
Inbound Call Center Experience
$10.25
.40
$800
Cost Per Activation
$222
Sent Email
$.02
.20
$400
Total Value
$45,000
Paid Search Ad
$.03
.05
$100
ROI
350%
We need both top down and bottom up measurement
methods
Top-down (Aggregated Data)
National media (TV & radio)
Local media (TV & radio)
Direct mail
Digital
$140
$200
$180
$83
All measurement dimensions
(Customer segment, product,
geography)
Integrated
measurement
All measurement levels
(Media, platform,
campaign, placement)
Display
Video
Search
Direct mail
Social
$60
$80
$91
$75
$113
Remarketing - $12
Video 1 - $121
Branded - $87
DM 1 - $11
Social 1 - $50
Programmatic - $80
Video 2 - $35
Video 3 - $213
Guaranteed - $130
Video 4 - $23
DM 2 - $93
Not branded - $99
Social 2 - $163
DM 3 - $210
DM 4 - $235
Bottom-up (Customer Level Data)
8
Social 3 - $456
But, biggest measurement innovations are within „bottom-up
methods‟
• Customer/ micro geo level modeling and testing means we can
– measure smaller programs and tactics within programs
– drive accountability for owned media through financial metrics
– learn faster
Are you doing this?
Integration of paid
and owned customer
touches into bottomup attribution
solutions
9
Consumer/geolevel controlled
testing within
platforms
Consumer-level
simulation
frameworks
How to add paid and owned social to bottom up attribution
Integrating Paid Media
• Setup separate tracking codes for paid social vs.
online display campaigns
15%
• Update attribution models and reporting to output
paid social within its own category
40%
20%
20%
User Level Attribution
Program Level Attribution
Predicted Customer LTD: $2,000
Integrating Owned Media Interactions
• Develop campaign standards for owned social which
outlines campaign setup, tracking, and data capture
requirements
5%
Attributed
Event
Cost
Credit
Value
Campaign
Facebook Ads
Spend
$10,000
Impressions
102,504,000
Calls
320
Sales
45
DM Delivered
$.35
.15
$300
Paid Social Impression
$.001
.20
$400
Inbound Call Center Experience
$10.25
.40
$800
Cost Per Activation
$222
Sent Email
$.02
.20
$400
Total Value
$45,000
Paid Search Ad
$.03
.05
$100
ROI
350%
• Implement and tag custom landing pages for visitors
from 1st party blogs, FB, other social platforms
• Leverage native ads to instrument social tracking on
third party platforms (ex. Facebook fan page)
• Update attribution models and reporting to include
owned social channels
10
FBX Blog Remarketing
Campaign
How to test in Facebook
Leverage Facebook API tools like custom audiences, power editor to holdout random
control groups and isolate experimental group
CRM database
1
Customer, Fan
Group
Analyze
Prospect, Fan
Customer,
Non-Fan
4
Prospect, NonFan
2
Customer, Fan
5
Random
sample
Prospect, Fan
3
Random holdout control
Customer,
Non-Fan
11
Incremental
Sales
Prospect, NonFan
NPI
Social treatment for
experimental groups
From control
From
group and experimental
2nd degree
group and
reach
2nd degree
reach
How to test in Twitter, Tumblr etc
Unlike FBX, other social platforms do not yet enable targeting specific audiences by using
NPI based social profile matching. Hence, instead of random holdouts, tests need to be set
up with splits based on geography etc
CRM database
1
2
5
Group
Analyze
Test Cells
4
Social treatment for
experimental groups
Pre-test Sales Level
Customers
from State A
Prospects
from State A
Customers and
Prospects from State B
12
Incremental Posttest Sales Level
3
Analyze
From pseudo control From experimental
group State B
group State A
From pseudo
control group
State B
From
experimental
group State A
How to test social channel impact (Owned Media)
Native ad unites can be used to stimulate owned media interactions
Platform
Examples of
potential tests
(Random control
approach)
Examples of
potential tests
(Pseudo control
approach)
13
Action to Measure
(Test)
Paid Media Unit
(Control)
Incremental revenue from
acquiring and engaging
with a liker
Liker acquisition
sponsored story to nonlikers
Incremental revenue from
publishing posts on owned
assets
Page post Ad to existing
likers
Incremental revenue from
acquiring and tweeting to
followers
Promoted Accounts to
non-followers
Incremental revenue from
publishing blog posts on
Tumblr
In-stream sponsored
post ad
What about other stuff that is hard to measure?
Try customer-level simulation frameworks
Use Case
Establish appropriate comparison
baseline to estimate revenue and
savings impacts of s social media
activities for which other measurement
methods break down
A
B
Test
Customers who
posted on forum
Pseudo Control
Customers who didn‟t
post on forum
Modeled
clones
How it works
• Identify sample of consumers impacted
by social media action (test)
• Identify similar group of clone
consumers but who lack desired social
media test action (pseudo control)
Average Sales per
customer:
$350
Average Sales per
customer $100
• Compare key success metrics across
two groups
A
14
B
Incremental Sales
per customer =$150
Getting Started: First, shy away from short-sighted platform
thinking and measurement
We hear many flavors of this…
“What, Facebook? No, it
doesn‟t work for us. We
did a test last quarter.”
15
Next, align on what to measure
KPI Definitions
Measurement Levels and
Dimensions
Website Metrics
Enterprise
Metric
Playbook
Measurement Goals:
Consistency
Comprehensiveness
Accuracy
16
Estimation Methods
Know where your gaps are…
Share of Voice Index
Available
today
Care Volume
Resolution Rate
284
94 %
Care Index
CSAT
92
74 %
Revenue
Savings
$
17
2,345
$
5,678
Impressions
360 MM
Leads
Generated
Impressions
34 K
Leads
Generated
4,356
365
CSAT
Conversion
Rate
CSAT
Conversion
Rate
23 %
88 %
Revenue
Savings
$
5,678
$
1,234
38 %
65%
Revenue
Savings
123
N.A.
$
$
567
Available
partially /
Uses
assumptions
Unavailable
now
Currently
addressing
…and create a roadmap to address those
Long-term plan to develop, gather buy-in, implement and evolve marketing measurement
Initiatives:
Paid Media
1. Tagging guidelines
2. Process to implement
and manage tags
Q1
Jan
Feb
Q2
Mar
April
Define
May
2014
June
July
Q3
Aug
Q4
Sept
Oct
Nov
On-going updates and edits, as needed
Set up
process
On-going process execution and maintenance
Owned Media
1. Enhance bottom-up
attribution
Phase 1 Phase 2
2. Integrate social and
sentiment data in to
MMO
Phase 1
Design
3. Controlled Testing
4. Simulation Analysis
5. Customer Research
Study
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Design
Design
Phase 2
Execute tests and
maintain holdouts
Analyze &
Report
Collect
Analyze &
data
Report
On-going execution and maintenance
On-going execution and maintenance
Always-on test and learn
Always-on customer research study deployment
Dec
Summary
• Develop metric playbook and measurement roadmap
• If you aren‟t building cross channel event streams and testing
advanced attribution you‟re behind
• Don‟t forget about getting owned platform interactions into your event
stream
• It isn‟t just test, test, and more testing. We need smarter testing
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Peter Vandre
Merkle
VP Digital Analytics
443.542.4345
[email protected]
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