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A long term engagement: Is engagement marketing valuable or is it bunk?

July 16th, 2008 by Jim Cain

I had a good chat this morning with my colleague Larry (Manager, Corporate Training) about a term he has been bumping into in the last few weeks called ‘Social Conversion’. It all seems to stem from a nice blog-post that was written last month by Justin Talerico, CEO of ion Interactive, about the importance of monitoring, understanding and optimizing the micro-conversions associated to social media marketing.

Loved the blog, agreed with the concepts, but not sure we need to coin any new terms. Social Conversion is just another way of saying conversion. According to the WAA Standards Committee, Conversion is “The number of times a desired outcome was accomplished.” So let’s try and really nail down the basic definitions before we throw them out the window and come up with new ones. (Still, it’s a great piece, specifically the landing page and whitepaper examples)

Wondering what my intro has to do with the title yet? Here we go.

Just as the term ‘social conversion’ has been doing the rounds in the last few weeks regarding its relevance and veracity (or truthiness), the concept of engagement in digital marketing has done the rounds for almost two years, and has been the subject of heated debate and scrutiny.

The ongoing dialog (or should I say blogalog? Yet another new term) has revolved around two primary questions:

Is engagement an important concept?
If it is important, how can it be quantified.

To learn more about the topic, here are a number of great posts on the subject. I specifically recommend checking out the recent flamewar between Omniture and Eric Peterson, both industry heavyweights with very differing opinions.

I myself blogged on the issue back in February, and my take is that being able to understand and manage visitor engagement to/from/within a given web property is the first major step towards ‘analytics 2.0’. Standardizing what metrics are used however is much more difficult.

If you work with a company like ion Interactive, engagement will have a strong landing page/social media focus. If you are a multi-channel marketer, engagement might have strong online/offline ties.

Having helped some of Sitebrand’s customers directly identify engagement related KPI’s in their business for the purposes of Optimization, I know it works. As for the ‘philosopher’s stone’ of engagement equations that work for every site, the jury is out.

In a fairly new industry like internet marketing, new terms will be coined at the speed of….internet. But some terms stick and have a profound impact on our discipline.

Engagement is one of these important terms.

Do some homework and form an opinion. If you think it’s bunk so be it. But if you think engagement monitoring and management could be a core aspect of your job in the coming years, start applying some of the concepts now so you don’t miss the boat.

Cheers,

Jim

PS. Larry heard I was referencing him in the blog today and wanted to make sure all our customers knew that he is available for all training requests/questions at training AT Sitebrand.com. Go team go!

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Social Media, Uncategorized, Web Analytics, eCommerce | 3 Comments »

Small starts equal (visible and long term) big results

July 7th, 2008 by Jim Cain

For our customers, working with Sitebrand is pretty exciting. Frankly, any site specific optimization initiative is exciting, because most marketers have historically been blocked out of the website by technical/political barriers, and optimization allows them much greater control over their conversion rates and sales. Because of this excitement (and the associated results) there has been rapid growth in visibility and adoption of optimization as an online marketing practice.

In my last post I referenced a few points on Online Optimization, specifically goal setting and the difference between optimizing the look of the store and the dialog with the visitor.

Because of discussions I have had about this particular post, I thought I would add another ‘best practice’ point that is critical to the longterm success of any optimization initiative.

Don’t boil the ocean.

While this is a straightforward and somewhat obvious statement, it can get lost in the initial excitement of optimization. (Note: if you work in eMarketing and don’t think site optimization is exciting, you will soon)

Per point one in my last post, you need a defined goal to start an optimization initiative. Alongside that goal, you need to start with a tightly defined plan to achieve that goal. So for example if you want to minimize the bounce rate of California visitors on your homepage, you can run a targeted piece of content to 50% of your Cali. Visitors for a one month period, and compare the two bounce rates.

Will an entire California page work better? Maybe, even probably, but how can you really prove which message on the page had the most impact? This will be important when you are showing your results to the top of the org chart and asking for additional optimization budget.

Shane Atchison of ZAAZ speaks directly to this concept in his great “Web Analytics intervention” series on ClickZ. Look at Point 5 in part 2 of the series. (Click here for column)

Lily Chiu at Omniture speaks to this issue as well in a recent post. As a real estate optimization vendor, Omniture knows the importance of transparent results and encourages starting with small changes that show clear impact, like changing a green button to a red one.

As a vendor that optimizes dialog with a targeted visitor segment, Sitebrand makes similar recommendations. If you say fifty different targeted messages to fifty different segments, some of which overlap mid-session, how will you know which ones work well? Moreoever, how will you know which ones work well together?

The purpose of starting small in the initial short term is not to minimize your results, it is to provide the required clarity in a murky web metrics world to ensure that you can grow your optimization plans in the long term. The upside is that your initial requirements are smaller, and your long term payoff is larger.

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Web Analytics, eCommerce | No Comments »

A few points on Online Optimization

June 20th, 2008 by Jim Cain

There is a lack of tested business practice when it comes to website optimization. This is because it is a brand new aspect of the (in itself young) discipline of eMarketing. That said, one of the most compelling aspects of optimization is that there is no right way or wrong way to do it. Given the cyclical nature of an optimization initiative, if you make a change to your website and get lousy results, you are that much more likely to do better on the next pass.

Given that Sitebrand is a personalization company, we spend all of our time assisting customers in getting their own conversion optimization efforts off the ground. Because of that, I have a few points that I think should be considered by any marketer about to get started in this space. If you follow the first point, and remain aware of the second, you should be off to the races in optimizing the desired outcomes of your web property.

POINT 1: You can’t score if you don’t know where the goal is.

Don’t bother tinkering with the zeros and ones that make up your website unless you are aware of and educated on your traffic and the goals you have for them. Let’s say you want to rebuild your home page to grow your conversion rate (for simplicity, let’s assume conversion equals making a shopping cart purchase:

• How many page views does the home page have?
• What is the bounce rate for this page?
• How many home page views were the entry pages for a session?
o What is the conversion rate of this visitor type?
o How does it compare to the overall site average?
o If it was 10% higher, how much money is that worth?
o How does it trend for the last year?

These questions will allow you to see a rough revenue opportunity for your optimization, and provide some baselines to show if your changes have created a noticeable lift in goal outcomes over time. The end-game of optimization is not a feeling, it’s a number. Make sure you have clarity about what the number is and where it comes from before you start trying to play with it.

(If you want to get really into it, start drilling down a little and looking at the conversion rates of homepage visitors by source, geographic location and new or returning visitor status. Give each one an opportunity cost, and alter your page to speak to the one worth the most money. When you are done drop me an email, I would love to hear about the results)

POINT 2: There is a difference between optimizing the medium and the message. (sorry Mr. McLuhan)

An important consideration when considering online optimization is that it is delivered in two key pieces, what you say and where you say it.

Sounds Obvious huh? However most of the current discipline around site optimization focuses on where things are said. Look at some of the case studies online, where you see that moving the ‘buy now’ button two inches on the screen has an impact on conversion, or making a green menu blue decreased bounce rates by 52%….

I’m not at all saying the numbers are wrong, but I am saying that changing the shopping isles and front door of your store is only part of the equation. Moreover, it the most easily automated. Someday soon a software tool will be announced and:

• it will have a really cool sounding algorithm
• it will take every element of your site and shuffle them in real time to optimize your store layout.

Proper site optimization takes what is being said in equal (or perhaps more) consideration with where it is being said. The better your dialog with a visitor, the better your goal outcomes. The better your dialog with a visitor, the better your goal outcomes. Look at the messaging, the incentives, the calls to action and the relevance to the visitors you are targeting. You need as much Eisenberg as you do Taguchi.

Map out your goals properly, remember that the message is important too, and have fun growing your business.

“Obstacles are those frightful things you see when you take your eyes off your goal” – Henry Ford

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Web Analytics, eCommerce | 1 Comment »

Online marketing Suites, Standardization, and Irony 2.0

June 13th, 2008 by Jim Cain

The traditional website is becoming de-centralized, as most traditional websites are fragmenting into hundreds of micro-footprints through blogs, social networks, newsgroups and multiple wholly owned properties.

At the same time, the market at large is calling for online marketing management software to become centralized (see Forrester), so that more cohesive campaigns can be built, and disparate datasets can be merged together for better visibility.

To quote a great Ottawa personality: Isn’t it ironic.

I think the answer to this ironic situation is in another quote (and source of online flame wars) - “Web analytics is hard”.

While it is definitely a legitimate hot-button and market requirement, a centralized online marketing suite is not a silver bullet. There is no doubt that it is impossible to make decisions about current successes and future plans if you have fifteen sets of reports from fifteen disparate tools.

We deal with this on a day to day basis at Sitebrand. If a customer uses us to personalize messages to a visitor from a particular affiliate with the goal of growing conversions, they now have three reports from three vendors, none of which connect, and all of which have different numbers. Yikes.

Given the aggressive adoption (and evangelization) of 2.0 technologies and marketing methods however, no online marketing suite will ever be able to solve problems out of the box.

In five years from now, it might be effective to push a viral video out through RSS specifically to mobile browsers, with the hope that they click through the video to a Facebook widget created to have friends push coupons to your products to each other, which can be used online or in store.

And I can promise you, even in five years there won’t be enough Red Bulls and developers in the world to build transparent reporting around that initiative.

All that is going to happen is that the leading thinkers in the space are going to say “Online Marketing Suites are hard”. And they will be right.

Build a plan, work the plan, show the plan worked. We are still struggling with it as we come to the end of Commerce 1.0, and we will keep struggling with it until we standardize on ‘what should be done’.

Perhaps this is a job for the WAA standards committee. They are doing a great job in standardizing the common terms in analytics so that the industry stays on the same page.

An interesting next step for them might include a practical document standardizing what a team of web practitioners should be doing for procedures, tools usage, documentation etc. Better yet, including a scoring system so that readers could self-evaluate. Think Gartner maturity model, but for eCommerce.

The moral of the story is that there is no piece of software, in present or future, that will help execute on a plan when no plan has been built. I think if more web teams knew where they ranked based on holistic best practices, they could take some of the ‘hard’ out of web 1.0, and be prepared to reap more value than hype from the next generation of technologies and practices.

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, RSS Marketing, Social Media, Viral Marketing, Web Analytics, eCommerce | 1 Comment »

Personalization: Fall in love again for the first time.

May 28th, 2008 by Jim Cain

Per my Shop.org blog post a few weeks ago, I see an eCommerce market that is still getting ready to fully embrace personalization, but still focusing more on the plans behind inputs (traffic) and outputs (customer retention/upsells).

Based on the recent analyst reports, thought leaders in the blogosphere, and topics covered at trade events however, web site optimization (of which personalization is a part) will be the number one focus of online business in the coming years.

With that in mind, I did a Google search this morning that was a total headscratcher. Click here to see the results.

The fourth link down is a CNET article from 5 years ago explaining the failure of web personalization.

” Companies trying to get personal with their Web site visitors in hopes of increasing sales are wasting more money than they’re earning.”

The third link down is a blog post from over 4 years ago discussing the steps required to build an actionable plan around web personalization. This blog was well written, insightful, and would work just as well today as it would have in 2004 (advances in technology notwithstanding). That said, it discussed the concept of personalization in terms that imply everyone is doing it, something almost all current practitioners will disagree on.

This is my favorite quote from the piece:

“It’s a tired old yarn, but if you hope to implement a web personalization strategy, the first and most important step is to develop and mature your business goals and requirements”

Wasting Money? Tired old yarn? How can the ‘next big thing’ in eCommerce have this kind of historical background?

I blame Google. (in a tongue-in-cheek kind of way)

If you look at the writing trends in 2004 about eMarketing, you see a fairly equal split between traffic generation and website optimization. With the increased competition that emerged online in recent years, traffic generation became so important that it completely dominated. The chart below is a Google Trends report for “PPC” vs “Personalization” to illustrate this point.

PPC is in blue, Personalization is in red

So…after a brief lapse, the hottest concept of 2003 is gearing up to be the hottest concept of 2009. Everything old is new again.

Now don’t get me wrong. There have been some major changes in the personalization space in the last 5 years. There are some great vendors out there to power different aspects of personalization (I know a great company called Sitebrand), and the analytics space has matured to the point where it is possible to reap great rewards from a properly executed personalization initiative.

This couldn’t be made any more evident by the following point: The CNET article referenced above cites a Jupiter Research article from 2003 called “Beyond the Personalization Myth”. Recent reports from Forrester and Aberdeen are of the opinion that this myth has become a profitable reality.

As a personalization analyst, I would like to welcome you back to the discussion about optimizing your website and growing your business. We missed you.

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Search Marketing, Web Analytics, eCommerce | No Comments »

Three ideas for Google Analytics Goals

May 15th, 2008 by Jim Cain

If you talk to ten different eCommerce sites that are using Analytics, the odds are good that at least five of them are using Google Analytics. If you talk to ten different Google Analytics (GA) users, probably only one of them is using their Goal tracking for anything other than cart conversions. Long story short, an awfully large percentage of retailers aren’t getting a lot of value out of Google analytics.

This is in part due to the fact that most companies using GA don’t tend to have a full time analyst asking specific questions of the website data, and also due to the fact that while GA is great free software, there is no vendor support in terms of best practices for tool usage. (If you want an analytics vendor with a top-notch customer support/analysis team, look no farther than our friends at Coremetrics)

Here are two alternate goals, and one new way to look at them using Google Analytics. They are easy to set up and monitor, they will give you a lot more visibility into website outcomes, and will help you start asking the right questions about what you can be doing to optimize your website for increased conversions.

For additional information about how to set up goals in Google Analytics, click here.

Goal 1: ‘About Us’ page visitor conversion

If a visitor cares enough to want to learn about your business, they are that much closer to converting. Set up a goal funnel with the first page being the About Us page URL, and the last page being the transaction completed page. You now have an report that shows you the conversion rates of people who visit your ‘about us’ page as part of a session. Once you have the results in, you can start applying changes to this page in an attempt to increase conversion outcomes.

Goal 2: Micro Conversion Points

A micro conversion point is a non shopping cart transaction. Examples include newsletter signup, catalog request or wish list signup. Better understanding of how many visitors choose these micro-conversions will give a better understanding of what a visitor really wants from your site. Also if any of these micro-conversion points has multiple steps, you can build a goal funnel and look at step abandonment, just like for your shopping cart.

Goal Tip: Use filters to segment your goal results

By filtering your Google results based on different traffic source segments, you can get a much better understanding of how visitors from different sources convert for different goals. For example, what does the cart abandonment funnel look like for direct type in visitors vs. paid search traffic? Setting up funnels is also fairly straightforward, and you can see a more detailed posting from the team at Lunametrics on how to accomplish this by clicking here.

A better understanding of site outcomes equals an ability to optimize them over time. Taking the steps above will add invaluable marketing insight to your analytics tool.

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Web Analytics, eCommerce | No Comments »

Should Dayparting be a part of your day?

May 6th, 2008 by Jim Cain

Looking at online sales cycles is a Pandora’s box. Once you decide to look into your analytics to truly understand what steps a visitor needs to go through in order to convert, you always end up with more questions than answers. There are a number of ways you can look at what it takes for a visitor to become a customer. You can go the:

Engagement route: Understanding how and why a visitor moves through your site in a given session towards conversion.

Recency and frequency route: Understanding separate sessions and time between sessions as steps towards conversion.

Micro and macro conversions route: Looking at how pre-transactional conversions like newsletters, wishlists and downloads move a visitor towards a conversion.

I could go on for a while with other options, but the purpose of this post was to make things even more confusing by injecting a new term into the mix: Dayparting. (place maniacal cackle here).

Dayparting is a fairly established term in the offline marketing space, used for managing media buys in radio and television. An example of this is selling radio ads against the morning daypart so that you can have the largest audience (people in cars).

Dayparting is now making it’s way into online media buys, and there are some great articles and whitepapers on the web about how to optimize your search spend based on time of day. It makes pretty good sense. Look at your conversion rate based on the hour of the day (one click in Google Analytics by the way), or even the day of the week. Look at where conversion is higher. Plan keyword spend accordingly.

Using this concept for in-site marketing makes for a very compelling case. We have a few customers at Sitebrand who run personalization campaigns based on the day of the week, but imagine if you tweaked your website so that:

in the mornings you ran your normal site messaging, as people are looking at you as they drink their morning coffee and aren’t buying
during lunch hours and early afternoon your site pushes your wishlist instead of a sale, because people are looking for products on your site that they will buy later at home.
From 5-10 pm you ran aggressive sales messages, knowing that people are on the home computer and much more likely to convert.
From 10pm to 7am you run more discounts and promos, because you might get some ‘midnight special’ bumps to conversion.

Especially if run against a control group, this would make for a very interesting look at conversion from a dayparting perspective. That is, until another way to look at online sales cycles catches my eye….

Cheers,

Jim

PS. Note that I didn’t even TRY to bring time zones into this. Neo, there is no spoon.

Posted in Conversion, Jim Cain, Personalization, Search Marketing, Social Media, Web Analytics, eCommerce | No Comments »

Should Site Optimization fall into your keyword budget?

April 22nd, 2008 by Jim Cain

The blogosphere right now is abuzz with discussions about the current economic downturn and what impact it will have on eCommerce sales, and the associated budgets that eMarketers will be given.

Forrester research sees eCommerce bucking the downturn trend, with online spending actually going up by a predicted 17% in 2008. That said there will still be a tightening of belts as far as spending is concerned, with most of the spending freezes taking place against in-site technologies. Search will continue to grow, as it is both vital to online sales and the most easily provable from a tactical ROI perspective.

According to our friends at Marketing Sherpa, while “38% of marketers are spending more on online tactics, such as paid search, natural search, email marketing and online events” this growth is happening at the expense of in-site technologies as “B-to-B and B-to-C marketers are conserving budget dollars by renegotiating contracts with vendors and agencies”

So let me get this straight. Online stores are spending more money on getting people to walk in the front door of the store, and less money on making sure they walk out of the store with a product in hand. Doesn’t make a lot of sense to me, especially when you listen to an online brand that has a keen grasp of the big picture.

I listened to a great speech at Shop.org by Patrick Byrne, COO of Overstock.com. It would take a series of blog posts to detail all the interesting things that have been done/are being done by the Overstock.com team, but two major points stood out:

While they came late to the party regarding natural search optimization for Google, they have made search a number one priority over the last few years.
They are in the process of rebuilding their marketing programs, customer service programs and website experience around 5 pre-defined visitor segments.

They recognize that while increased eyeballs on website equals increased revenue, the only way to break the vicious cycle of search reliance is though optimization.

I know that most of the people reading this don’t have Overstock.com budgets, but try a simple exercise.

Pull up an analytics report on the conversion rate for one of the product categories that has received budget for keyword buys and search optimization.
Look at the percentage of traffic and conversion rate for the traffic segment.
Compare the conversion rate of this type of traffic to your site average and if it is lower, calculate your potential revenue opportunity.

There is a lot of money that gets left on the table by making traffic generation of any type your primary marketing mechanism. You should be budgeting time and money to optimize visits within your site as a logical component of your search marketing initiatives, especially if you want to take advantage of the 17% growth of the only growing retail market.

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Search Marketing, Web Analytics, eCommerce | No Comments »

Thoughts from Shop.org: Marketing vs. Sales

April 11th, 2008 by Jim Cain

Just got back from the Shop.org regional in Scottsdale with two new insights. The first is that Arizona is MUCH nicer than Ontario as far as weather is concerned, and the second is the purpose of this blog post.

eCommerce marketing should not be treated the same way as traditional marketing.

There is no implied insult in this statement, rather a suggestion that there are much more tangible revenue numbers associated to eCommerce marketing, and in order to be truly relevant, this sales/conversion component must be directly addressed or risk being ignored.

At Shop.org, I sat in on great sessions and panels, had in-depth conversations with some really talented professionals in the eCommerce space, and watched really closely to see what statements and ideas were the most engaging of the overall audience. This was especially easy in the main ballroom sessions, where you could glance at the room and see when people were engaged and taking notes, or bored and playing on their blackberries.

Invariably, the pens came out when the topics were about selling, whether that topic was repeat sales to existing customers, or new customer acquisition through search, affiliate, or email.

Conversely, looking around the room when the topic was pure marketing/branding I saw a lot of people playing brick breaker on their phones. The same with my one on one discussions. Highest interest was always on growing sales and conversions.

If you are reading this as an eCommerce marketing professional, you are rolling your eyes right now. “OF COURSE it’s all about growing sales!” But think about the statement and then answer this question.

Outside of eCommerce, name an industry where people with pure-marketing jobs have defined sales quotas or to use industry parlance, conversion goals.

I can’t think of one, and I have been in sales and marketing for almost a decade. Every other industry has marketing as demand generation (funnel filling) with a separate sales mechanism in place for deal completion. These marketers still have goals and accountability, but they are not the owners of direct revenue targets.

Only in ecommerce do marketers have the job of filling the sales funnel, and then moving people through it. If you can not grow your conversion rate, you will not keep your job. (place Glengarry Glen Ross quote here….”AIDA!”)

In the attached image (Thanks to Darryl and Eric from the Sitebrand marketing team) you can clearly see the additional functions an eCommerce marketing team owns that would traditionally be the domain of a sales department. Click on the image to expand.

Having spent a lot of time in enterprise sales, I can definitely tell you that pure marketing is important and valuable but is secondary to hitting my quota. The same feeling was evident in watching the attendees at Shop.org.

So here is my big Arizona eureka moment, which I encourage people to think about (especially if you plan on speaking at events that eCommerce professionals are attending).

eCommerce is an emerging discipline, and as an industry we need to be sharing best practices and new ideas. Just don’t forget that if it doesn’t help grow sales and hit conversion quotas your ideas will end up at the bottom of an ever-expanding to-do list.

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Tim ‘the Toolman’ Taylor is NOT a good eCommerce person.

March 28th, 2008 by Jim Cain

The purpose of this weeks blog was going to be around the concept of the first time visitor segment and how it can be appropriately marketed to on a given web property. Once I hit the 2000 word mark, I decided to keep going and make it a whitepaper. More will follow on that in coming weeks.

Instead I would like to take a moment to throw in my two cents on a real challenge that I think most eCommerce properties face in regards to site optimization: horsepower vs proper planning.

The purpose of most of my blogs and of the upcoming whitepaper has to do with proper execution, building the right marketing plan to effectively achieve the right sales outcomes. While Sitebrand’s technology will assist in achieving better outcomes, it will not in itself give you a good plan.

This thought runs in parallel to the ’90-10’ rule regarding analytics software coined by Avinash Kaushik. If you spend 90% of your analytics budget on the right people who can make the right plans, and 10 percent on the technology to allow them to do their jobs, you will get the best possible results.

So what do I mean about horsepower vs proper planning? While eMarketers are starting to take more control of the web site, overall ownership is still firmly in the domain of the IT department and the CFO. This is for two reasons:

Websites, despite all the talk of ‘commerce 2.0’, are still considered to be black boxes where traffic is plugged in one end, and revenue comes out the other.
Most marketers have built their plans around this ‘drive traffic-manage customers’ model, and don’t have a sound strategy or plan for insite marketing.

If your site is viewed as a black box, or intelligent catalog, or online sales engine, the only way to optimize it is to bolt on ‘more horsepower’ in the forms of self learning software like merchandising management, site search tools, and multivariate testing engines.

With this thought in mind, re-read the websites for some of the vendors who have cold called you in the last few weeks. While the stated audience will be the marketer, the true stakeholders are finance and IT. The value propositions tend to revolve around the concept that the primary job of the marketer is to get good traffic to the website, and the primary job of technology is to manage the experience of the visitor through self learning databases and patented algorithms.

“More power!”

I could sell a LOT of software to Tim the Toolman. I can also guarantee you that while his website would get the basic value that any good software product will provide, the ‘sales engine’ would never be shifted out of second gear due to the lack of a solid plan.

There is no point in buying a Ferrari to be a grocery getter, and there isn’t much point in putting more horsepower into your website before you have a cohesive plan around how you are going to use it.

Cheers,

Jim

Posted in Conversion, Customer Experience, Jim Cain, Optimization, Personalization, Search Marketing, Web Analytics, eCommerce | No Comments »

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