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Measurement in Marketing
 The Ugly Truth

 American Chamber of Commerce
 October 19th 2010
fanatic@f5dc.com   +65 9111 6849   WWW.F5DC.COM
WHAT IS THE
R O L E O F
MARKETING
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C R E EFFI
ATIV CIEC
I T Y NCY
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- F A C E B O O K
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                                                                           –   T W I T T E R -
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                                                                                                 Y O U T U B E   -
Are we
measuring our
 campaigns ?
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§ Sales conversion

 Event       § Cost of Acquisition
             § Impact after event
    5k       § Profile audience

participants § Follow up message
                                                                                         § Recruitment efficiency
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Home work
                                   Scared
Time / Budget
                Knowledge
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The beauty of digital
                    DIGITAL
THE BIGGEST MARKETING OPPORTUNITY ?
                                                  EVERY MARKETER’S DREAM




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TRACKING                                                                         LIVE INFORMATION




                                                                      REACTION
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195
                                                      TOOLS
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“Helpful but Incomplete;
    Interesting but not useful;
    W a s t e    o f t i m e ”
 Q : Please rate the effectiveness of each social media measurement tool.
                 Poll of Social Media                                         Freebuzz monitoring                                      Tracking Tweeter click           Scientific Control



       87.8% 87.1% 81.6% 79.9%
                Fans, connection, effectiveness                           (tweedeck, FB stream search, Google Alert)                                                               Survey


                               Paid Buzz Monitoring                                                      Free Analytics software                                Paid Analytic software



                      77.4%                                                                           71.9%                                                     66.3%
                           Nielsen Buzz Metrics, Cymphony, Radian 6                                     Google analytics, Quantcast, Youtube analytics                  Omniture




 Source: MarketingProf Fall 2009 Survey
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SO WHAT ?

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Wrong focus

                            WRONG
                                      FOCUS


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Reports…Reports…Reports…DATA




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Measure the right thing
                                                                          CPP                                 CPC




                                                                                Sales Impact / Brand Impact
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✗ One time exercise
✗ Data
✗ Reports
✗ Page views
✗ Number of Fans
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DATA
REPORTS
INSIGHTS
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Not linked to sales info
                                                                                         § Insights are difficult
                                                                                         § Limited learning
                                                                                         Clickstream information
                                                                                         § CTR
                                                                                         § Page views
                                                                                         § # Fans
                                                                                         Digital tactics
                                                                                         § Banner
                                                                                         § Website
                                                                                         § Facebook
© F5 Digital Consulting – The pyramidal metrics                                          § Search
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Why did it happened ?
What is the business
conclusion / action ?
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Understanding the reason




                                                                               Drive business action




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Campaign
efficiency
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I do not care if
 we have zero
 person going
  to our event
  but I want to
     know it
         Azhar Azib
 former CMO Microsoft APAC
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All numbers
   should
contribute
   to sales
 But how ?
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You can not change
                     the result
                   of a campaign
              You can only change its
                       cause
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                                                                          Especially on digital
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§  Target Audience
                                                                                         §  Message
                                                                                         §  Creative
                                                                                         §  Tactic
                                                                                         §  Contact Strategy
                                                                                         §  Metrics
© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM   §  Call to Action
Measurement
     is
  Planned
  Leads to
 conclusion
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Measurement
     is
   Phase
  specifics.
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Measurement
     is
   Tactic
  specifics.
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We need
 to go back
   to the
 basic sales
    funnel
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All link back to sales
                                    How many should I contact ?




                                    Knowing I will loose some in the
                                    process
                                        • Past campaign
                                        • Expectations
                                        • Industry standards




                                    What is my expected end result ?
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Target for our agency. Define tactics to generate…

                                Required delivered impression on page                                    20,000,000
                                where banners are placed

                                Projected CTR                                            1%
                                #UV Landing page                                               200,000
                                Projected CTR to Newsletter page                         10%
                                #UV Newsletter subscription page                                20,000

                                Projected Subscription rate                              5%

                                End TARGET # subscribers                                                     1,000


                                Our Job as Marketer
                                            CTR : ClickThrough Rate
                                            UV : unique Visitors
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Total Campaign budget                                                                                  $10,000
         Required delivered impression on page                                                     20,000,000
         where banners are placed
         Cost per Delivered impression                                                                          $0.0005
         Projected CTR                                                      1%
         #UV Landing page                                                                200,000
         Cost per UV                                                                                              $0.05
         Projected CTR to Newsletter page                                 10%
         #UV Newsletter subscription page                                                 20,000
         Cost per Newsletter visitor                                                                               $0.5
         Projected Subscription rate                                        5%
         End TARGET # subscribers                                                                      1,000
         Cost per newsletter subscriber                                                                            $10

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Calculate
    value of
  responsive
     group
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How to measure which group is more
  responsive ?


                                                                          sub segmentation + INDEX
                                                                                                                              Which group is the most
                                                                                                                            responsive to our message /
                                                                                                                                     product ?

                                                                                                     § Step 1 : Start from the base
                                                                                                     § Step 2 : Calculate their distribution
                                                                                                     § Step 3 : How many of them acted ?
                                                                                                     § Step 4 : Acting distribution
                  Age group ?                                                                        § Step 5 : Comparison of distribution , not
                                    Sex                                                                 values
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Compare
         campaign
         efficiency

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Gathering Media from the campaign




       How much money do we spend by channel to generate how many
                              contacts ?
                      CTA (event, registration, visit)
                                                   How many of those performed the last action ?
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ROMI : Comparable measure of campaigns
                    Contacted                                                 Value of Incremental
                                                                                                                          Initial Contact
                                                                          Brand and Product Awareness
                    Prospects
                                                                              Value of Incremental
                    Visit Website                                             Product Awareness                    Initial Response

                                                                              Value of Incremental
                    Apply for Seminar                                          Product Evaluation               Initial Action

                                                                                    Product
                    Participate in Seminar                                         Education                 End Action
                                                                                     Sales
                                                                                    Target
                    Sales Leads                                                                          Value of Incremental Sales Lead
                                                                                                         Acquisition
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ROMI Example – Event
                                       Total Campaign Costs                    $ 100,000

                                       Total Event Participants                   10,000

                                       Total Incremental Sales               $ 2,000,000

                                       Sales Margin                                  60%

                                       Incremental Margin                    $ 1,200,000

                                       Sales ROMI                         = $ 2,000,000 : $ 100,000   = 20

                                       Margin ROMI                        = $ 1,200,000 : $ 100,000   = 12


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ROMI Example – By Channel
                                                                          by Direct Mail   by Online Banner    by Print AD

   Cost for Event Invitation                                                  $ 10,000             $ 2,000       $ 20,000

   Event Participants                                                            3,000               1,000          6,000

   Event Cost (Participants)                                                  $ 20,400             $ 6,800       $ 40,800

   Total Costs                                                               $ 30,400             $ 8,800       $ 60,800

   Incremental Sales                                                         $ 600,000          $ 200,000     $ 1,200,000

   Incremental Margin                                                       $ 360,000           $ 120,000      $ 720,000

   Sales ROMI                                                                      19.7               22.7           19.7

   Margin ROMI                                                                     11.8               13.6           11.8

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Key Performance Indicators - Campaign                 
                                                            Total Contacted Targets                                   5,840       ROMI 1
                                                            Total Contacts                                           15,869
                                                            Average Contacts per Customer                                2.7
                                                                                                                               




                                                            Unique Site Visitors Identified                             677
                                                            Response Rate - Targets to Site Visitors                  11.6%
                                                            Response Rate - Contacts to Site Visitors                  4.3%
                                                            Total Unique Visitors                                     1,968       ROMI 3
                                                                                                                               




                                                            Total Event Reservation                                     189
                                                            Response Rate - Site Visitors to Reservations             27.9%
                                                            Response Rate - Targets to Reservations                    3.2%
                                                                                                                               




                                                            Total Invitations sent                                      135
                                                            Total invited Event Participants                             89
                                                            Total "walk-in"                                              59
                                                            "Walk-in" Rate                                            39.9%
                                                            Total "No-Show"                                              46
                                                            "No-Show" Rate                                            34.1%
                                                            Total Event Participants                                    148       ROMI 4
                                                                                                                               




                                                            Key Performance Indicators - Qualified Sales Leads
                                                            Sales Leads - Qualified as HOT (80% Sales Chance)            11
                                                            Sales Leads - Qualified as Warm (60% Sales Chance)            8
                                                            Total Generated and Qualified Sales Leads                    19       ROMI 5
                                                                                                                               




                                                            Conversion Rate Participants to Sales Leads              12.84%
                                                                                                                               




                                                            Total Campaign Costs                                     30,000
                                                            Costs per Qualified Sales Lead                            1,579

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Philips LED - Campaign Metrics                                                                               China              Module                                                                              Update:        2010-03-31
         Generating Site Traffic                                                                                                       Consumer Profile
                                          Voucher Management                                Campaign Response                          Male Consumers
         Road Shows
                                         Created   Distributed                  Registered     Free Sign-up           Pre-Order        < 20 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     20 - 29 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     30 - 39 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     40 - 49 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     > 49 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     unknown age                          8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     Total                                8,888    100%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     Female Consumers
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     < 20 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     20 - 29 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     30 - 39 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     40 - 49 Years                        8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     > 49 Years                           8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     unknown age                          8,888    1.0%
         Name and Location                 8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%     Total                                8,888    100%
         Subtotal                          8,888   8,888     1.0%               8,888    1.0%   8,888    1.0%         8,888   1.0%
                                                                                                                                       Total Acquired Consumers
                                                   Delivered                                                            Unique Site    < 20 Years                           8,888    1.0%
         Other Traffic Drivers                                      Click Through        CTR          Site Visits
                                                Impressions                                                                 Visitors   20 - 29 Years                        8,888    1.0%
         Philips.Com                             888,888,888              888,888,888   1.00%       888,888,888         888,888,888    30 - 39 Years                        8,888    1.0%
         Media 1                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    40 - 49 Years                        8,888    1.0%
         Media 2                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    > 49 Years                           8,888    1.0%
         Media 3                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    unknown age OR gender                8,888    1.0%
         Media 4                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Total                                8,888    100%
         Media 5                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888
         Media 6                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Family Profile
         Media 7                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Single                               8,888    1.0%
         Media 8                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Married - No Children                8,888    1.0%
         Media 9                                 888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Married - Yes Children               8,888    1.0%
         Media 10                                888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Others or unknown                    8,888    1.0%
         Subtotal                                888,888,888              888,888,888   1.00%       888,888,888         888,888,888    Total                                8,888    100%

                                                     Site Traffic                               Response Mechanics
         Total Site Traffic                 Unique Visitors        Site Visits            Free Sign-up       Pre-Order
                                                                                                                                       Campaign Key Performance Indicators
         Road Shows                            888,888,888        888,888,888              888,888,888    888,888,888          1.0%    Total Pre-Ordered LED Products                                                                           888,888
         Other Traffic Drivers                 888,888,888        888,888,888              888,888,888    888,888,888          1.0%    Total Redemption Vouchers Sent                                                                           888,888
         Total Traffic                         888,888,888        888,888,888              888,888,888    888,888,888          1.0%    Total Vouchers Redeemed for Purchase at Retail-POS                                                       888,888
                                                                                                                                       Redemption Rate                                                                                           1.00%

         Engagement and Sales Conversion                                                                                               Total Unique Site Visitors                                                                               888,888
                                            Sent       Delivered                 Opened           Site Visits         Pre-Order        Total Site Visits                                                                                        888,888
         Sorry E-Mail                    888,888     888,888   1.0%          888,888    1.0%    888,888     1.0%    888,888   1.0%     Estimated Site Re-Visitation Rate                                                                         1.00%

         Monthly Newsletter 1            888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors)                    888,888     1.00%
         Monthly Newsletter 2            888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors)               888,888     1.00%
         Monthly Newsletter 3            888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors)             888,888     1.00%
         Total Newsletter                888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Completed Consumer Surveys (Percentage based on Total Unique Site Visitors)                   888,888     1.00%

         Reminder E-Mail                 888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Total Campaign Costs - EUR                                                                               888,888
                                                                                                                                       Total Number of Sales                                                                                    888,888
         Stock Available E-Mail          888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Average Net-Profit per Sales - EUR                                                                       888,888
         Total Engagement                888,888     888,888       1.0%      888,888    1.0%    888,888    1.0%     888,888    1.0%    Return on Invest (ROI) / Return on Promotion (ROP)                                                        1.00%


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Master the
                                                                                             process
                                                                                                to get
                                                                                            to proper
                                                                                         measurement
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7 steps measurement

        Project                                               Measured      Testing and             Process      KPI          Apply
        planning                                              objectives   Improvements             mapping   Dashboards   measurement




        Improve



                                                                           Start your campaign




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Phase 1
                         Project
                         planning
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Planning campaign is the only way to succeed
                                                                                    Consumer needs
                                                                                        Strategy
               Where are                                                                                        What do I expect
             consumer today.                                                                                    from consumers
              Starting point                                                                                       at the end ?

                                                                          What are the steps I expect from him ?
         §  Key opportunity from each Media : Include or not                                             §  Marketing objectives
         §  How each elements brings me closer to my goal                                                §  Tactics and response time
                                                                                                          §  Promotional Modules
                                                                                                          §  Information category

         §  Each phase has its own objective
         §  Measurement of each steps, how many goes from A to B
         §  As detailed as possible
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Updated marketing sales funnel




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Simplified sales funnel example




   Online banner

                          Social Media

                                                                                         Website
                                                                               DataBase       Conversion
                                                                               acquisition                 Sales   eDM
                                                                                                offer

                                                                                                                    Social Media
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Phase 2
                  Define
                 objectives
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Each Steps

                                                              What to do ?
                                                      What Measure ?

           Simulate Campaign before it
                     starts
      §  From strategy
      § To Objectives
      §  To Metrics
      § To tactics
      §  Channels
      § CTA
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Defining objectives
                                                          Step 4                             Buy


                                                          Step 3                        What to do ?        What Measure ?


                                                          Step 2                        What to do ?        What Measure ?


                                                          Step 1                        What to do ?        What Measure ?

                                                                          What are the steps I expect from him ?
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Phase 3
                                  Testing

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Do you
                         want to
                         gamble
                           your
                         results ?
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§ Creative Concept
§ Copyright Concept
§ Measurement Concept ?


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Test of eDM Before deployment

                                                                             4 Target audience
                             Total Philips Database                             1 Creative
                                            118,318
                                                                          4 customized messages

                                                  10%	

                       3 Headers
                                                                                            Creative

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Results
                                   Creative Test                                                   Launch
§  3 Headers                                                                      §  Selected Headers
§  4 Target Groups                                                                §  4 target Groups
                                                                                   §  Targeted message
                                                            YTD           Target                             YTD
Delivered                                               8,324                      Delivered                74,660
Open                                                32.33%                18%      Open                      42%
CTR                                             13.38% *                   5%      CTR                       14%
Members                                                    438                     Members                  3,134
Total                                             530 (inc 92)                     Total                    3,664
                                                                                                                     Creative

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4 times more efficiency than Average
                          PHILIPS CL Average                                            FAMILY REWARDS PROGRAM


                                                                                       53%                       50%
                                                                          42%
                                                                                                     34%
                                                                                                                        30%
                                                                                             25%
                        18%                                                   14%
                                                                                                        12%

                                                               3%
                                                                          Invitation     April eDM   May eDM         Carnival
                                       Average CLS
                                                                                                                     Creative
                                                                                       Open rate               CTR
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Phase 4
                    Process
                 Contact
                 Strategy
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Mapping every
steps from the
consumer from
s t a r t t o
campaign end
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Example of simple mapping
                                                                                                                      eDM – Follow-
                                                                                        Promotion      Registration
  Search                                                                                                              up



  Banner
                                                                          Website
                                                                                        Experience          DB        eDM – Up-Sell
  eDM                                                                                   Product


                                                                                                       Purchase
  Social Media

                                                                                                                      eDM –
                                                                                        Online Store                  Cross Sell

  Unidentified
  Traffic

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© F5DC 2010 all rights limited, reproduction forbidden without approval             M
A more complicated one     Membership Phase                                                 Week 1                             Ongoing                           1st Month                 Each Months
                                                                                                                                                                                                Contents Targeting
            High Traffic Sites
                                                                                                                                                                                         Member Status
     Online Banners on high Traffic
                                                                                                                                                                 Contents Targeting
     sites                                                                                                                                                                               Interests
                                                                                                                                                          Member Status                  Purchase Probability
                  Search                                                                                                                                  Interests                      Personal Events
     Key Word Search                                                                                                                                      Purchase Probability
                                                                                                                                                                                         Customer Value
                                                                                                                                                          Personal Events
                                                                                                                                                                                         Point Status
                                                                                                                                                          Customer Value
             Philips Website
                                                                                                                                                          Point Status
     Multiple banner placement
     across the Website                                                                                                                                                                     Customize and Assemble
                                                                                                                                                                                                   Contents
                                                                                                                             Transactional E-Mail
           Corporate Program                                                                                                                                 Customize and Assemble      Program News
                                                                                                                        Follow-up of member online
     Access of larger Consumer                                                                                                                                      Contents
                                                                                                                        activities and/or update                                         Sales Offers
     Pools                                                                                                              members about new points          Program News                   Point Status
                                                                                                                        being generated.
                                                                                                                                                          Sales Offers                   Brand and Products
                   Retail
                                                                                                                        Mail leads instantly to website
                                                      New Member                                  Confirmation eDM                                        Point Status                   Personal Events
     Information and Reminder of                                          Customer DB                                   visit.
     Family Rewards                                                                         Confirmation and Welcome                                      Brand and Products             etc.
                                                                                            contact that leads to the
                                                                                                                                                          Personal Events
                                                                                            Program Site.
            Philips Databases
                                                                                                                                                          etc.
     Use of the full potential within
     Philips

                                                                                                                                                                                                     Monthly eDM
         Customer Care Center
                                                                                                                                                                                         Monthly eDM that builds a
     Personal Engagement and                                                                                                                                                             strong relationship with the
                                                                                                                                                                      Monthly eDM
     Acquisition                                                                        Program                                                                                          brand and drives program
                                                                                        Website                                                           Monthly eDM that builds a      engagement.
                                                                                                                                                          strong relationship with the
         Experience Showroom                                                                                                                              brand and drives program
     Information and Reminder of                                                                                                                          engagement.
     Family Rewards




     Multiple Touch                                                                      Immediate                       Tangible and                        Diverse                         Ongoing
         Points                                                                         Engagement                       instant Value                    Contents about                    Relationship
                                                                                                                            Delivery                          Brand,                          Building
                                                                                                                                                           Products and
68
© F5DC 2010 all rights limited, reproduction forbidden without approval
                                                                                                                                                             Program
Pre-Campaign                                                            During Campaign                                                                                                                                                  Post-Campaign



                                                                                                    Campaign
                                                                                                    Database
                                                                                                    (one per country)


                                                                                                                                                                                                                        Reporting
      Create Voucher PDFs
             Promo Codes
                                                                                                                    Registration Step 1                                                                                 Metrics on number of                                    Reminder Emails
      F5: Generate one promo code for                                                                                                                                                                                   registrations over time,
      each roadshow location in each                                                                                Consumer enters: Name, IC no., Email,                                                                                                                       Send emails to consumers who
                                                                                                                                                                                                                        demographics analysis, etc.
      country                                                                                                       Presurvey Answers, Promo Code                                                                                                                               have registered but not
                                                                                                                                                                                                                                                                                redeemed their trial bulb


                                                                                                                                          Yes
      Print Vouchers
      Philips CN/KR: Print vouchers and
      promo code stickers                                                                                                                                                              Yes
                                                                                                                                  Does consumer                                                       Is consumer eligible
                                                                                                                                  have a voucher with                                                 for free trial?
                                                                                                                                  a promo code?
                                                                                                                                                                                                                                                Monthly Newsletter
      Distribute Vouchers
                                                                                  Campaign                                                                                                            No
                                                                                                                                          No                                                                                                    Program updates in order to
                                                                                  Landing
      Philips CN/KR: Distribute vouchers to                                                                                                                                                                                                     trigger re-visitations of the
      roadshow locations (all vouchers at                                         Page                                                                                                                                                          campaign site
      one location will have the same promo
      code)                                                                                                                                                                                                                                     Product Information about LED
                                                                                                                                                                                        Sorry Email                                             bulbs and various innovations by
                                                                                                                                                                                        Consumer receives email: Sorry, there                   Philips
      Consumer Gets Voucher                                                                                         Roadshow Info Page                                                  are no more trial bulbs, but you can
                                                                                                                                                                                        pre-order to buy bulbs at a discount.                   Product promotions, etc.
      Consumer gets a voucher from                                                                                  Consumer is asked to go down to a
      roadshow with promo code                                                                                      roadshow and pick up a voucher




                                                                                                                                                Congratulations Email                   Pre-Order Bulbs                                         Stock Availability Email
                                                                               Consumer With Voucher                                            Consumer receives email:                Consumer is brought to pre-order                        F5: Send email to all consumers who
                                                                                                                                                Congratulations! Click here to enter    page on website and enters the                          pre-ordered with printable voucher,
                                                                               Consumer receives voucher from
                                                                                                                                                your delivery address. You can also     number of bulbs to pre-order                            no. of bulbs pre-ordered, and details of
                                                                               roadshow and visits campaign site
      Philips.com                                                                                                                               print this email to buy bulbs at a                                                              retail locations
                                                                                                                                                discount.
      Consumer visits Philips.com and clicks
      on a campaign banner there
                                                                               Consumer Without Voucher
                                                                               Consumer visits campaign site directly
                                                                               or via a link, without a voucher                                 Registration Step 3                     Mail Bulb to Winners
      Other Online Promotions                                                                                                                   Consumer clicks on link to website;     Philips CN/KR: Send trial bulbs to
      E.g. Online banners, emails, search                                                                                                       consumer enters: Address, Contact       winners via registered mail or hand
      engines, friend referral, etc.                                                                                                            Number                                  delivery




          69                            11/10/10
   © F5DC 2010 all rights limited, reproduction forbidden without approval                    @ F5 Digital Consulting - Reproduction forbidden without formal written consent.
Phase 5
                Prepare
               dashboard
© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
AVOID THIS …
                                                                          Dashboard provides
                                                                          §  1 page !
                                                                          § Clear view
                                                                          § Summary of numbers
                                                                          § Key actions
                                                                          § Prepared in advance
                                                                          § Standardize all KPIs
© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
Standardize KPIs
   What can not be compared                                                          What can
   Click through                                                                     Cost per click
   (responses rates)                                                                 Cost per order
   Unique visitors                                                                   Cost per unique visitor
   # fans                                                                            Total incremental sales
                                                                                     Cost per sales

   Review the campaign
   § Collect information                                                           § Standardize methodology
   § Definition and NPS measure                                                    § Development of dashboard
   § Definition of ROI

© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
Philips LED - Campaign Metrics                                                                            China              Module                                                                              Update:        2010-03-31
         Generating Site Traffic                                                                                                   Consumer Profile
                                         Voucher Management                             Campaign Response                          Male Consumers
         Road Shows
                                        Created   Distributed               Registered     Free Sign-up           Pre-Order        < 20 Years                           8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     20 - 29 Years                        8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     30 - 39 Years                        8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     40 - 49 Years                        8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     > 49 Years                           8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     unknown age                          8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     Total                                8,888    100%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     Female Consumers
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     < 20 Years                           8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     20 - 29 Years                        8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     30 - 39 Years                        8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     40 - 49 Years                        8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     > 49 Years                           8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     unknown age                          8,888    1.0%
         Name and Location                8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%     Total                                8,888    100%
         Subtotal                         8,888   8,888     1.0%            8,888    1.0%   8,888    1.0%         8,888   1.0%
                                                                                                                                   Total Acquired Consumers
                                                 Delivered                                                          Unique Site    < 20 Years                           8,888    1.0%
         Other Traffic Drivers                                    Click Through      CTR          Site Visits
                                              Impressions                                                               Visitors   20 - 29 Years                        8,888    1.0%
         Philips.Com                           888,888,888          888,888,888     1.00%       888,888,888         888,888,888    30 - 39 Years                        8,888    1.0%
         Media 1                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    40 - 49 Years                        8,888    1.0%
         Media 2                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    > 49 Years                           8,888    1.0%
         Media 3                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    unknown age OR gender                8,888    1.0%
         Media 4                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Total                                8,888    100%
         Media 5                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888
         Media 6                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Family Profile
         Media 7                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Single                               8,888    1.0%
         Media 8                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Married - No Children                8,888    1.0%
         Media 9                               888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Married - Yes Children               8,888    1.0%
         Media 10                              888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Others or unknown                    8,888    1.0%
         Subtotal                              888,888,888          888,888,888     1.00%       888,888,888         888,888,888    Total                                8,888    100%

                                                    Site Traffic                            Response Mechanics
         Total Site Traffic                Unique Visitors        Site Visits         Free Sign-up       Pre-Order
                                                                                                                                   Campaign Key Performance Indicators
         Road Shows                           888,888,888        888,888,888           888,888,888    888,888,888          1.0%    Total Pre-Ordered LED Products                                                                           888,888
         Other Traffic Drivers                888,888,888        888,888,888           888,888,888    888,888,888          1.0%    Total Redemption Vouchers Sent                                                                           888,888
         Total Traffic                        888,888,888        888,888,888           888,888,888    888,888,888          1.0%    Total Vouchers Redeemed for Purchase at Retail-POS                                                       888,888
                                                                                                                                   Redemption Rate                                                                                           1.00%

         Engagement and Sales Conversion                                                                                           Total Unique Site Visitors                                                                               888,888
                                           Sent       Delivered               Opened          Site Visits         Pre-Order        Total Site Visits                                                                                        888,888
         Sorry E-Mail                   888,888     888,888   1.0%        888,888    1.0%   888,888     1.0%    888,888   1.0%     Estimated Site Re-Visitation Rate                                                                         1.00%

         Monthly Newsletter 1           888,888     888,888      1.0%     888,888   1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors)                    888,888     1.00%
         Monthly Newsletter 2           888,888     888,888      1.0%     888,888   1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors)               888,888     1.00%
         Monthly Newsletter 3           888,888     888,888      1.0%     888,888   1.0%    888,888    1.0%     888,888    1.0%    Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors)             888,888     1.00%
         Total Newsletter               888,888     888,888      1.0%     888,888   1.0%    888,888    1.0%     888,888    1.0%    Completed Consumer Surveys (Percentage based on Total Unique Site Visitors)                   888,888     1.00%

         Reminder E-Mail                888,888     888,888      1.0%     888,888   1.0%    888,888    1.0%     888,888    1.0%    Total Campaign Costs - EUR                                                                               888,888
                                                                                                                                   Total Number of Sales                                                                                    888,888
        Stock Available E-Mail            888,888 888,888          1.0%   888,888   1.0%    888,888    1.0%     888,888    1.0%    Average Net-Profit per Sales - EUR                                                                       888,888
        Total Engagement                  888,888 888,888          1.0%   888,888   1.0%    888,888    1.0%     888,888    1.0%    Return on Invest (ROI) / Return on Promotion (ROP)                                                        1.00%
© F5DC 2010 all rights limited, reproduction forbidden without approval                                                            WWW.F5DC.COM
Phase 6
   Apply
measurement

© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
http://www.fujixerox-transpromo.com

© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
Sales related


SHOW                                                                                      Efficiency measurement



ME THE                                                                                           Listening




MONEY
© F5DC 2010 all rights limited, reproduction forbidden without approval   WWW.F5DC.COM
                                                                                         CTA and business insights

                                                                                                  © LV, the wrong comes up
Thanks.
Do you have any question ?


        http://bit.ly/aEmARR       f5dc   gregbirge
fanatic@f5dc.com   +65 9111 6849                      WWW.F5DC.COM

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Measurement in marketing

  • 1. Measurement in Marketing The Ugly Truth American Chamber of Commerce October 19th 2010 fanatic@f5dc.com +65 9111 6849 WWW.F5DC.COM
  • 2. WHAT IS THE R O L E O F MARKETING © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 3. C R E EFFI ATIV CIEC I T Y NCY © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 4. - F A C E B O O K © F5DC 2010 all rights limited, reproduction forbidden without approval – T W I T T E R - WWW.F5DC.COM Y O U T U B E -
  • 5. Are we measuring our campaigns ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 6. § Sales conversion Event § Cost of Acquisition § Impact after event 5k § Profile audience participants § Follow up message § Recruitment efficiency © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 7. Home work Scared Time / Budget Knowledge © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 8. The beauty of digital DIGITAL THE BIGGEST MARKETING OPPORTUNITY ? EVERY MARKETER’S DREAM © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 9. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 10. TRACKING LIVE INFORMATION REACTION © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 11. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 12. 195 TOOLS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 13. “Helpful but Incomplete; Interesting but not useful; W a s t e o f t i m e ” Q : Please rate the effectiveness of each social media measurement tool. Poll of Social Media Freebuzz monitoring Tracking Tweeter click Scientific Control 87.8% 87.1% 81.6% 79.9% Fans, connection, effectiveness (tweedeck, FB stream search, Google Alert) Survey Paid Buzz Monitoring Free Analytics software Paid Analytic software 77.4% 71.9% 66.3% Nielsen Buzz Metrics, Cymphony, Radian 6 Google analytics, Quantcast, Youtube analytics Omniture Source: MarketingProf Fall 2009 Survey © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 14. SO WHAT ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 15. Wrong focus WRONG FOCUS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 16. Reports…Reports…Reports…DATA © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 17. Measure the right thing CPP CPC Sales Impact / Brand Impact © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 18. ✗ One time exercise ✗ Data ✗ Reports ✗ Page views ✗ Number of Fans © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 19. DATA REPORTS INSIGHTS © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 20. Not linked to sales info § Insights are difficult § Limited learning Clickstream information § CTR § Page views § # Fans Digital tactics § Banner § Website § Facebook © F5 Digital Consulting – The pyramidal metrics § Search © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 21. Why did it happened ? What is the business conclusion / action ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 22. Understanding the reason Drive business action © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 23. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 24. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 25. Campaign efficiency © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 26. I do not care if we have zero person going to our event but I want to know it Azhar Azib former CMO Microsoft APAC © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 27. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 28. All numbers should contribute to sales But how ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 29. You can not change the result of a campaign You can only change its cause © F5DC 2010 all rights limited, reproduction forbidden without approval Especially on digital WWW.F5DC.COM
  • 30. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 31. §  Target Audience §  Message §  Creative §  Tactic §  Contact Strategy §  Metrics © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM §  Call to Action
  • 32. Measurement is Planned Leads to conclusion © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 33. Measurement is Phase specifics. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 34. Measurement is Tactic specifics. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 35. We need to go back to the basic sales funnel © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 36. All link back to sales   How many should I contact ?   Knowing I will loose some in the process • Past campaign • Expectations • Industry standards   What is my expected end result ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 37. Target for our agency. Define tactics to generate… Required delivered impression on page 20,000,000   where banners are placed   Projected CTR 1% #UV Landing page 200,000   Projected CTR to Newsletter page 10% #UV Newsletter subscription page 20,000   Projected Subscription rate 5%   End TARGET # subscribers 1,000 Our Job as Marketer CTR : ClickThrough Rate UV : unique Visitors © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 38. Total Campaign budget $10,000 Required delivered impression on page 20,000,000 where banners are placed Cost per Delivered impression $0.0005 Projected CTR 1% #UV Landing page 200,000 Cost per UV $0.05 Projected CTR to Newsletter page 10% #UV Newsletter subscription page 20,000 Cost per Newsletter visitor $0.5 Projected Subscription rate 5% End TARGET # subscribers 1,000 Cost per newsletter subscriber $10 © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 39. Calculate value of responsive group © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 40. How to measure which group is more responsive ? sub segmentation + INDEX Which group is the most responsive to our message / product ? § Step 1 : Start from the base § Step 2 : Calculate their distribution § Step 3 : How many of them acted ? § Step 4 : Acting distribution Age group ? § Step 5 : Comparison of distribution , not Sex values © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 41. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 42. Compare campaign efficiency © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 43. Gathering Media from the campaign How much money do we spend by channel to generate how many contacts ? CTA (event, registration, visit) How many of those performed the last action ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 44. © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 45. ROMI : Comparable measure of campaigns Contacted Value of Incremental Initial Contact Brand and Product Awareness Prospects Value of Incremental Visit Website Product Awareness Initial Response Value of Incremental Apply for Seminar Product Evaluation Initial Action Product Participate in Seminar Education End Action Sales Target Sales Leads Value of Incremental Sales Lead Acquisition © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 46. ROMI Example – Event Total Campaign Costs $ 100,000 Total Event Participants 10,000 Total Incremental Sales $ 2,000,000 Sales Margin 60% Incremental Margin $ 1,200,000 Sales ROMI = $ 2,000,000 : $ 100,000 = 20 Margin ROMI = $ 1,200,000 : $ 100,000 = 12 © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 47. ROMI Example – By Channel by Direct Mail by Online Banner by Print AD Cost for Event Invitation $ 10,000 $ 2,000 $ 20,000 Event Participants 3,000 1,000 6,000 Event Cost (Participants) $ 20,400 $ 6,800 $ 40,800 Total Costs $ 30,400 $ 8,800 $ 60,800 Incremental Sales $ 600,000 $ 200,000 $ 1,200,000 Incremental Margin $ 360,000 $ 120,000 $ 720,000 Sales ROMI 19.7 22.7 19.7 Margin ROMI 11.8 13.6 11.8 © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 48. Key Performance Indicators - Campaign   Total Contacted Targets 5,840 ROMI 1 Total Contacts 15,869 Average Contacts per Customer 2.7     Unique Site Visitors Identified 677 Response Rate - Targets to Site Visitors 11.6% Response Rate - Contacts to Site Visitors 4.3% Total Unique Visitors 1,968 ROMI 3     Total Event Reservation 189 Response Rate - Site Visitors to Reservations 27.9% Response Rate - Targets to Reservations 3.2%     Total Invitations sent 135 Total invited Event Participants 89 Total "walk-in" 59 "Walk-in" Rate 39.9% Total "No-Show" 46 "No-Show" Rate 34.1% Total Event Participants 148 ROMI 4     Key Performance Indicators - Qualified Sales Leads Sales Leads - Qualified as HOT (80% Sales Chance) 11 Sales Leads - Qualified as Warm (60% Sales Chance) 8 Total Generated and Qualified Sales Leads 19 ROMI 5     Conversion Rate Participants to Sales Leads 12.84%     Total Campaign Costs 30,000 Costs per Qualified Sales Lead 1,579 © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 49. Philips LED - Campaign Metrics China Module Update: 2010-03-31 Generating Site Traffic Consumer Profile Voucher Management Campaign Response Male Consumers Road Shows Created Distributed Registered Free Sign-up Pre-Order < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Female Consumers Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Subtotal 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total Acquired Consumers Delivered Unique Site < 20 Years 8,888 1.0% Other Traffic Drivers Click Through CTR Site Visits Impressions Visitors 20 - 29 Years 8,888 1.0% Philips.Com 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 30 - 39 Years 8,888 1.0% Media 1 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 40 - 49 Years 8,888 1.0% Media 2 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 > 49 Years 8,888 1.0% Media 3 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 unknown age OR gender 8,888 1.0% Media 4 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Media 5 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Media 6 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Family Profile Media 7 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Single 8,888 1.0% Media 8 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - No Children 8,888 1.0% Media 9 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - Yes Children 8,888 1.0% Media 10 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Others or unknown 8,888 1.0% Subtotal 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Site Traffic Response Mechanics Total Site Traffic Unique Visitors Site Visits Free Sign-up Pre-Order Campaign Key Performance Indicators Road Shows 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Pre-Ordered LED Products 888,888 Other Traffic Drivers 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Redemption Vouchers Sent 888,888 Total Traffic 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Vouchers Redeemed for Purchase at Retail-POS 888,888 Redemption Rate 1.00% Engagement and Sales Conversion Total Unique Site Visitors 888,888 Sent Delivered Opened Site Visits Pre-Order Total Site Visits 888,888 Sorry E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Estimated Site Re-Visitation Rate 1.00% Monthly Newsletter 1 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 2 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 3 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Total Newsletter 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Completed Consumer Surveys (Percentage based on Total Unique Site Visitors) 888,888 1.00% Reminder E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Total Campaign Costs - EUR 888,888 Total Number of Sales 888,888 Stock Available E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Average Net-Profit per Sales - EUR 888,888 Total Engagement 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Return on Invest (ROI) / Return on Promotion (ROP) 1.00% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 50. Master the process to get to proper measurement © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 51. 7 steps measurement Project Measured Testing and Process KPI Apply planning objectives Improvements mapping Dashboards measurement Improve Start your campaign © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 52. Phase 1 Project planning © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 53. Planning campaign is the only way to succeed Consumer needs Strategy Where are What do I expect consumer today. from consumers Starting point at the end ? What are the steps I expect from him ? §  Key opportunity from each Media : Include or not §  Marketing objectives §  How each elements brings me closer to my goal §  Tactics and response time §  Promotional Modules §  Information category §  Each phase has its own objective §  Measurement of each steps, how many goes from A to B §  As detailed as possible © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 54. Updated marketing sales funnel © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 55. Simplified sales funnel example Online banner Social Media Website DataBase Conversion acquisition Sales eDM offer Social Media © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 56. Phase 2 Define objectives © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 57. Each Steps What to do ? What Measure ? Simulate Campaign before it starts §  From strategy § To Objectives §  To Metrics § To tactics §  Channels § CTA © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 58. Defining objectives Step 4 Buy Step 3 What to do ? What Measure ? Step 2 What to do ? What Measure ? Step 1 What to do ? What Measure ? What are the steps I expect from him ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 59. Phase 3 Testing © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 60. Do you want to gamble your results ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 61. § Creative Concept § Copyright Concept § Measurement Concept ? © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 62. Test of eDM Before deployment 4 Target audience Total Philips Database 1 Creative 118,318 4 customized messages 10% 3 Headers Creative © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 63. Results Creative Test Launch §  3 Headers §  Selected Headers §  4 Target Groups §  4 target Groups §  Targeted message YTD Target YTD Delivered 8,324 Delivered 74,660 Open 32.33% 18% Open 42% CTR 13.38% * 5% CTR 14% Members 438 Members 3,134 Total 530 (inc 92) Total 3,664 Creative © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 64. 4 times more efficiency than Average PHILIPS CL Average FAMILY REWARDS PROGRAM 53% 50% 42% 34% 30% 25% 18% 14% 12% 3% Invitation April eDM May eDM Carnival Average CLS Creative Open rate CTR © F5DC 2010 all rights limited, reproduction forbidden without approval
  • 65. Phase 4 Process Contact Strategy © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 66. Mapping every steps from the consumer from s t a r t t o campaign end © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 67. Example of simple mapping eDM – Follow- Promotion Registration Search up Banner Website Experience DB eDM – Up-Sell eDM Product Purchase Social Media eDM – Online Store Cross Sell Unidentified Traffic WWW.F5DC.CO © F5DC 2010 all rights limited, reproduction forbidden without approval M
  • 68. A more complicated one Membership Phase Week 1 Ongoing 1st Month Each Months Contents Targeting High Traffic Sites Member Status Online Banners on high Traffic Contents Targeting sites Interests Member Status Purchase Probability Search Interests Personal Events Key Word Search Purchase Probability Customer Value Personal Events Point Status Customer Value Philips Website Point Status Multiple banner placement across the Website Customize and Assemble Contents Transactional E-Mail Corporate Program Customize and Assemble Program News Follow-up of member online Access of larger Consumer Contents activities and/or update Sales Offers Pools members about new points Program News Point Status being generated. Sales Offers Brand and Products Retail Mail leads instantly to website New Member Confirmation eDM Point Status Personal Events Information and Reminder of Customer DB visit. Family Rewards Confirmation and Welcome Brand and Products etc. contact that leads to the Personal Events Program Site. Philips Databases etc. Use of the full potential within Philips Monthly eDM Customer Care Center Monthly eDM that builds a Personal Engagement and strong relationship with the Monthly eDM Acquisition Program brand and drives program Website Monthly eDM that builds a engagement. strong relationship with the Experience Showroom brand and drives program Information and Reminder of engagement. Family Rewards Multiple Touch Immediate Tangible and Diverse Ongoing Points Engagement instant Value Contents about Relationship Delivery Brand, Building Products and 68 © F5DC 2010 all rights limited, reproduction forbidden without approval Program
  • 69. Pre-Campaign During Campaign Post-Campaign Campaign Database (one per country) Reporting Create Voucher PDFs Promo Codes Registration Step 1 Metrics on number of Reminder Emails F5: Generate one promo code for registrations over time, each roadshow location in each Consumer enters: Name, IC no., Email, Send emails to consumers who demographics analysis, etc. country Presurvey Answers, Promo Code have registered but not redeemed their trial bulb Yes Print Vouchers Philips CN/KR: Print vouchers and promo code stickers Yes Does consumer Is consumer eligible have a voucher with for free trial? a promo code? Monthly Newsletter Distribute Vouchers Campaign No No Program updates in order to Landing Philips CN/KR: Distribute vouchers to trigger re-visitations of the roadshow locations (all vouchers at Page campaign site one location will have the same promo code) Product Information about LED Sorry Email bulbs and various innovations by Consumer receives email: Sorry, there Philips Consumer Gets Voucher Roadshow Info Page are no more trial bulbs, but you can pre-order to buy bulbs at a discount. Product promotions, etc. Consumer gets a voucher from Consumer is asked to go down to a roadshow with promo code roadshow and pick up a voucher Congratulations Email Pre-Order Bulbs Stock Availability Email Consumer With Voucher Consumer receives email: Consumer is brought to pre-order F5: Send email to all consumers who Congratulations! Click here to enter page on website and enters the pre-ordered with printable voucher, Consumer receives voucher from your delivery address. You can also number of bulbs to pre-order no. of bulbs pre-ordered, and details of roadshow and visits campaign site Philips.com print this email to buy bulbs at a retail locations discount. Consumer visits Philips.com and clicks on a campaign banner there Consumer Without Voucher Consumer visits campaign site directly or via a link, without a voucher Registration Step 3 Mail Bulb to Winners Other Online Promotions Consumer clicks on link to website; Philips CN/KR: Send trial bulbs to E.g. Online banners, emails, search consumer enters: Address, Contact winners via registered mail or hand engines, friend referral, etc. Number delivery 69 11/10/10 © F5DC 2010 all rights limited, reproduction forbidden without approval @ F5 Digital Consulting - Reproduction forbidden without formal written consent.
  • 70. Phase 5 Prepare dashboard © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 71. AVOID THIS … Dashboard provides §  1 page ! § Clear view § Summary of numbers § Key actions § Prepared in advance § Standardize all KPIs © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 72. Standardize KPIs What can not be compared What can Click through Cost per click (responses rates) Cost per order Unique visitors Cost per unique visitor # fans Total incremental sales Cost per sales Review the campaign § Collect information § Standardize methodology § Definition and NPS measure § Development of dashboard § Definition of ROI © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 73. Philips LED - Campaign Metrics China Module Update: 2010-03-31 Generating Site Traffic Consumer Profile Voucher Management Campaign Response Male Consumers Road Shows Created Distributed Registered Free Sign-up Pre-Order < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Female Consumers Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% < 20 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 20 - 29 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 30 - 39 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% 40 - 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% > 49 Years 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% unknown age 8,888 1.0% Name and Location 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total 8,888 100% Subtotal 8,888 8,888 1.0% 8,888 1.0% 8,888 1.0% 8,888 1.0% Total Acquired Consumers Delivered Unique Site < 20 Years 8,888 1.0% Other Traffic Drivers Click Through CTR Site Visits Impressions Visitors 20 - 29 Years 8,888 1.0% Philips.Com 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 30 - 39 Years 8,888 1.0% Media 1 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 40 - 49 Years 8,888 1.0% Media 2 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 > 49 Years 8,888 1.0% Media 3 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 unknown age OR gender 8,888 1.0% Media 4 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Media 5 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Media 6 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Family Profile Media 7 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Single 8,888 1.0% Media 8 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - No Children 8,888 1.0% Media 9 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Married - Yes Children 8,888 1.0% Media 10 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Others or unknown 8,888 1.0% Subtotal 888,888,888 888,888,888 1.00% 888,888,888 888,888,888 Total 8,888 100% Site Traffic Response Mechanics Total Site Traffic Unique Visitors Site Visits Free Sign-up Pre-Order Campaign Key Performance Indicators Road Shows 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Pre-Ordered LED Products 888,888 Other Traffic Drivers 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Redemption Vouchers Sent 888,888 Total Traffic 888,888,888 888,888,888 888,888,888 888,888,888 1.0% Total Vouchers Redeemed for Purchase at Retail-POS 888,888 Redemption Rate 1.00% Engagement and Sales Conversion Total Unique Site Visitors 888,888 Sent Delivered Opened Site Visits Pre-Order Total Site Visits 888,888 Sorry E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Estimated Site Re-Visitation Rate 1.00% Monthly Newsletter 1 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Why LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 2 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Discover LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Monthly Newsletter 3 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Unique Visitors "Experience LED" (Percentage based on Total Unique Site Visitors) 888,888 1.00% Total Newsletter 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Completed Consumer Surveys (Percentage based on Total Unique Site Visitors) 888,888 1.00% Reminder E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Total Campaign Costs - EUR 888,888 Total Number of Sales 888,888 Stock Available E-Mail 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Average Net-Profit per Sales - EUR 888,888 Total Engagement 888,888 888,888 1.0% 888,888 1.0% 888,888 1.0% 888,888 1.0% Return on Invest (ROI) / Return on Promotion (ROP) 1.00% © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 74. Phase 6 Apply measurement © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 75. http://www.fujixerox-transpromo.com © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM
  • 76. Sales related SHOW Efficiency measurement ME THE Listening MONEY © F5DC 2010 all rights limited, reproduction forbidden without approval WWW.F5DC.COM CTA and business insights © LV, the wrong comes up
  • 77. Thanks. Do you have any question ? http://bit.ly/aEmARR f5dc gregbirge fanatic@f5dc.com +65 9111 6849 WWW.F5DC.COM