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Analytics Transformation
Why Analytics doesn’t make a difference
with Gary Angel
Page 2 Transforming the digital channel with analytics
A story
Here’s a story about how digital decisions get made and
work gets done.
Page 3 Transforming the digital channel with analytics
Where budgets get made
As CMO, I decide
marketing budgets and
overall strategy.
Gillian
We need to be more customer focused and better at
serving customers outside the store. For both we
need to invest in digital.
What she says:
I’m growing digital marketing budgets by 10% this
year. I’m doubling the size of our Mobile effort, and
I’m making improving our Net Promoter Score (NPS)
a top KPI for my team.
What she decides:
What’s wrong with this picture
Gut rules. Gillian is
just making up
budget numbers
because they feel
right.
Bad KPIs are set. NPS
is a dangerous and
incomplete metric in the
digital world.
No walking the walk.
Gillian talks customer first
but isn’t using ANY voice
of customer data.
Page 4 Transforming the digital channel with analytics
Channels get selected
Digital Channel Manager
– I decide how digital
budgets get deployed.
Michael
Gillian’s got the right idea, but 10% just isn’t enough.
We’re wasting all that money on mass media. The
ROI on paid search was two times any other digital
channel. In last year’s POC, I invested $10,000 in
Twitter and got 30 million impressions. Mobile? We
need to be responsive like everyone else.
What he says:
I’m adding the new budget to PPC and Twitter. I’m
investing my mobile dollars in responsive design.
What he decides:
What’s wrong with this picture
No understanding of
success. Michael’s
metrics are partial and
conflicting.
Best-practices not
data drive decisions.
Michael has no idea if
responsive will drive
business.
Strategic priorities get
lost. Michael isn’t thinking
customer at all!
Page 5 Transforming the digital channel with analytics
Specific initiatives are formed
I create our campaign
strategy in brainstorming
sessions with our agency.
Janet
I’ve got to find some way to spend this budget on
Twitter and Paid Search. My agency says branded
search converts at a high rate. Twitter tells me
dedicated experiences work best.
What she says:
Buy branded search, and maybe I can create a
youth campaign for Twitter that drives to a microsite
with videos.
What she decides:
Every campaign is a
one-off. Past campaign
learnings aren’t
accessible and aren’t
shaping future plans.
The agency wears the
pants. Agencies lack
the data and are too
self-interested to drive
measurement.
Customer isn’t driving
creative. Janet lacks a
comprehensive customer
journey map AND any real
VoC.
What’s wrong with this picture
Page 6 Transforming the digital channel with analytics
Content is developed and deployed
I design creative that is
clean and beautiful.
Jay
What he says:
What he decides:
Building a microsite is no problem. I’ll lay it out with
a main video, some content blocks and then a link to
more videos. All these videos I have are boring
product stuff except this one from YouTube about
our involvement in rebuilding neighborhoods.
I’ll feature the cool video on the main page – that’s
what younger Twitter users will want.
Data? What data? Jay
isn’t using data to
inform his creative at
all! “Young” isn’t a
creative brief.
Performance? Jay
doesn’t have any past
performance data on
video and has no idea
what success looks like.
Testing? Jay isn’t thinking
about how testing
can/should be part of the
design strategy.
What’s wrong with this picture
Page 7 Transforming the digital channel with analytics
Success is measured
I look at site and campaign
performance and generate
reports for stakeholders.
Byron
What he says:
What he decides:
Janet and Jay can’t even tell me what this Twitter
campaign is supposed to accomplish – how am I
supposed to measure it? There’s not even a call to
action on the microsite to start an account.
I’ll just use “played a video” or non-bounce as the
success. I guess the best measure of this Twitter
stuff is reach – but it doesn’t make a lot of sense.
Byron’s KPIs are one-
offs. Every project
determines it’s own
success metrics.
Made-up metrics.
Byron picks success
metrics with no
evidence they indicate
success, value, etc.
Reporting isn’t analytics.
Byron isn’t shaping
decisions or setting best-
practices. He’s just cutting
down trees.
What’s wrong with this picture
Page 8 Transforming the digital channel with analytics
And digital properties are optimized
I manage site experience
and conversion rate
optimization.
Todd
What he says:
What he decides:
It’s a good thing these campaigns drive to
microsites; otherwise, they would kill my conversion
rates.
The microsites are marketing’s concern. My job is to
optimize the funnel.
Stupid siloes.
Marketing, site
experience, conversion
rate optimization and
testing are all part of
the same thing.
No integrated customer
journey. Everyone owns
their little piece of the
experience. No one owns
the customer.
What’s wrong with this picture
Page 9 Transforming the digital channel with analytics
Is this you?
I generate reports based
on KPIs set by the
business.
I create our campaign
strategy in brainstorming
sessions with our agency.
I allocate dollars by
channel. PPC drives
more conversions, so I
spend more there.
I design creative that is
clean and beautiful. I like
this video to feature.
I manage site experience,
but I’m not much involved
with marketing campaigns.
I decide how much to
spend on digital
marketing. I’m growing
digital by 10% this year.
Page 10 Transforming the digital channel with analytics
Because here’s the simple truth
If you want to be good at something, you have to be able to
make consistently good decisions about it.
When it comes to digital decision-making, the vast majority
of traditional enterprises
Fail.
Page 11 Transforming the digital channel with analytics
Here’s why
They “do” analytics, but they don’t use it.
They “test,” but they don’t learn.
They “talk” customer first, but they don’t listen.
They “do” agile, but they aren’t.
Page 12 Transforming the digital channel with analytics
Getting digital right requires fundamental
change
Integration of
CRO, testing and
Marketing with a
single customer-
based framework
Continuous
controlled
experimentation
embedded in
decision-making
Optimization at
every juncture – no
exceptions
How to make a difference
Analytics for the
truly strategic
decisions
Customer-driven
framework built into
every aspect of
measurement and
optimization
Objective and
proven
measures of
success
Page 13 Transforming the digital channel with analytics
The key ingredients
Comprehensive
and continuous
experience
engineering
Fully integrated
analytics
Controlled
experimentation
Continuous
improvement
Constant
customer
research
Journey mapping that never
stops, is finely segmented, is
truly multi-channel and drives a
shared enterprise understanding
of the experience the enterprise
needs to provide.
Analytics integrated at every step
of the digital process. From
strategic decisions around product
and price, to channel investments,
to content development, to specific
marketing decisions.
Controlled experimentation at every
juncture to constantly explore decision
points, enforce agile methods and
deliver continuous improvement.
No project ever stops. If it’s
important to do, it’s important
enough to keep improving. No
timelines. No end points. Just
continuous measurement,
change and improvement.
You listen to customers. You
learn about them. You make
customer focus and constant
customer research a part of
every project, every decision
and every measurement.
Page 14 Transforming the digital channel with analytics
Tackling the C-Suite
Keep in Mind:
You aren’t always (or maybe ever)
going to be a top priority.
Even senior execs have a limited
amount of political capital – help
them use it wisely.
Behavior trumps words. If you can
get Execs USING data you’ll be
much better off than if you have
them talking about it.
Strategies:
C-Suite Analytics Advisor: Can’t get a CAO?
Having an analytics advisor may be easier and
more practical and will keep analytics in the ear of
your executive team.
Focus on Strategic Analytics: Are you really
answering important questions? So much of what
we do is tactical we shouldn’t expect Execs to be
interested. VoC is a particularly strategic analytics
channel – but only when you take it beyond
Scoreboard metrics like NPS.
Provide Questions not just Answers: Executives
asking good questions can be a powerful driver of
analytics in the organization. Arm executives with
the right questions and they can drive the
organization to better answers.
Page 15 Transforming the digital channel with analytics
A Quick Detour into Voice of Customer
VoC is the single biggest strategic opportunity in analytics.
Why doesn’t it do more?
Page 16 Transforming the digital channel with analytics
Key systems are often too narrow
â–ș Online survey research is significantly
under-utilized:
− Site-side metrics like ACSI and NPS are
used as the primary barometers of success
and little attention is paid to what DRIVES
success.
− Surveys are too long, leading to low take-up
rates and survey fatigue.
− Surveys are stuffed with questions about the
site rather than the customer. This example
survey lacks questions about real drivers of
customer decision-making.
− Survey sample rates are too low to support
behavioral integration.
− Questions are siloed from offline tracking,
making comparability impossible.
Page 17 Transforming the digital channel with analytics
From online surveys to social media
â–ș Social media measurement is
often limited:
− Most social media systems are set up
without thought to sampling issues and
with improper governance. The result is
a mishmash of paid
opinion and noise.
− Statistics like brand mentions and
sentiment lose meaning
when aggregated across source and type, yet are routinely populated in enterprise
dashboards.
− Social measurement lacks customer value or segmentation, leading to questions
such as, “What is the value of a ‘fan’?,” and empty metrics such as, “social media
‘fan’ comparisons.”
− The teams running social media measurement are often PR or social agencies that
lack experience in audience measurement or analytics.
9%
72%
6%
5%
8%
Firm 1 News
Social media #1
Blogs
Comments
Social media #2
5%
84%
3%
4% 4%
Firm 2
Page 18 Transforming the digital channel with analytics
From social media to help desk
â–ș Call-center and Help Desk systems are often very siloed – problems
aren’t surfaced outside the area and classification of problems can be
problematic:
− Data quality standards around operator encoding of call/ query purpose are often
poorly monitored and checked.
− Many organizations lack the necessary strategies for tying web to call-center.
− Call-Center surveys – like site surveys – often focus on top-line satisfaction rather
than drivers of satisfaction.
− Available call-center data is
usually siloed and
lacks integration with other
behavioral streams.
− Call/ Query types are non-standard
and non-comparable to web or other
touch points.
Source: http://semphonic.blogs.com/semangel/2011/12/web-analytics-and-the-call-center-.html
Page 19 Transforming the digital channel with analytics
Re-thinking Your Work
Keep in Mind:
Most of what you do doesn’t matter.
Organizations don’t usually zero-
base budget. Just like marketing
attribution, you should be concerned
about creating lift.
Don’t ignore the packaging. That’s a
tip, kids. Write it down.
Strategies:
Do less work but do it better. Spend more time on
the packaging and storytelling. Find the people
who can package stories and use them
appropriately.
Analytic reporting. Stop building reports and
integrate – don’t ignore – BI. Tell people what will
happen.
Tell your own story. Claim successes. The
importance of an end-of year round up and putting
dollar numbers to what you do.
Page 20 Transforming the digital channel with analytics
Find the right problems
Keep in Mind:
Analytics has to be operationalized
to be useful. Always evaluate the
path to action for an analysis.
Some problems are like the Russian
winter (I’ve had issues with
changing call-centers) – best
avoided by invading armies.
Strategies:
Stakeholder interviews and analytic priorities.
Don’t ask people about data, start with what
decisions people have to make.
Set the background. If the organization is going to
build a new mobile app, publish a report on what
gets used in the existing one.
Experimentation is often a great “political” solution
to resolving organizational debates.
Courage matters. Don’t be afraid to have a point-
of-view. Good execs respect contrary opinions
(even when they don’t listen).
Nobody cares what you think if you
won’t say what you think.
Page 21 Transforming the digital channel with analytics
Contact
Gary.Angel@DigitalMortar.com

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1330 keynote angle

  • 1. Analytics Transformation Why Analytics doesn’t make a difference with Gary Angel
  • 2. Page 2 Transforming the digital channel with analytics A story Here’s a story about how digital decisions get made and work gets done.
  • 3. Page 3 Transforming the digital channel with analytics Where budgets get made As CMO, I decide marketing budgets and overall strategy. Gillian We need to be more customer focused and better at serving customers outside the store. For both we need to invest in digital. What she says: I’m growing digital marketing budgets by 10% this year. I’m doubling the size of our Mobile effort, and I’m making improving our Net Promoter Score (NPS) a top KPI for my team. What she decides: What’s wrong with this picture Gut rules. Gillian is just making up budget numbers because they feel right. Bad KPIs are set. NPS is a dangerous and incomplete metric in the digital world. No walking the walk. Gillian talks customer first but isn’t using ANY voice of customer data.
  • 4. Page 4 Transforming the digital channel with analytics Channels get selected Digital Channel Manager – I decide how digital budgets get deployed. Michael Gillian’s got the right idea, but 10% just isn’t enough. We’re wasting all that money on mass media. The ROI on paid search was two times any other digital channel. In last year’s POC, I invested $10,000 in Twitter and got 30 million impressions. Mobile? We need to be responsive like everyone else. What he says: I’m adding the new budget to PPC and Twitter. I’m investing my mobile dollars in responsive design. What he decides: What’s wrong with this picture No understanding of success. Michael’s metrics are partial and conflicting. Best-practices not data drive decisions. Michael has no idea if responsive will drive business. Strategic priorities get lost. Michael isn’t thinking customer at all!
  • 5. Page 5 Transforming the digital channel with analytics Specific initiatives are formed I create our campaign strategy in brainstorming sessions with our agency. Janet I’ve got to find some way to spend this budget on Twitter and Paid Search. My agency says branded search converts at a high rate. Twitter tells me dedicated experiences work best. What she says: Buy branded search, and maybe I can create a youth campaign for Twitter that drives to a microsite with videos. What she decides: Every campaign is a one-off. Past campaign learnings aren’t accessible and aren’t shaping future plans. The agency wears the pants. Agencies lack the data and are too self-interested to drive measurement. Customer isn’t driving creative. Janet lacks a comprehensive customer journey map AND any real VoC. What’s wrong with this picture
  • 6. Page 6 Transforming the digital channel with analytics Content is developed and deployed I design creative that is clean and beautiful. Jay What he says: What he decides: Building a microsite is no problem. I’ll lay it out with a main video, some content blocks and then a link to more videos. All these videos I have are boring product stuff except this one from YouTube about our involvement in rebuilding neighborhoods. I’ll feature the cool video on the main page – that’s what younger Twitter users will want. Data? What data? Jay isn’t using data to inform his creative at all! “Young” isn’t a creative brief. Performance? Jay doesn’t have any past performance data on video and has no idea what success looks like. Testing? Jay isn’t thinking about how testing can/should be part of the design strategy. What’s wrong with this picture
  • 7. Page 7 Transforming the digital channel with analytics Success is measured I look at site and campaign performance and generate reports for stakeholders. Byron What he says: What he decides: Janet and Jay can’t even tell me what this Twitter campaign is supposed to accomplish – how am I supposed to measure it? There’s not even a call to action on the microsite to start an account. I’ll just use “played a video” or non-bounce as the success. I guess the best measure of this Twitter stuff is reach – but it doesn’t make a lot of sense. Byron’s KPIs are one- offs. Every project determines it’s own success metrics. Made-up metrics. Byron picks success metrics with no evidence they indicate success, value, etc. Reporting isn’t analytics. Byron isn’t shaping decisions or setting best- practices. He’s just cutting down trees. What’s wrong with this picture
  • 8. Page 8 Transforming the digital channel with analytics And digital properties are optimized I manage site experience and conversion rate optimization. Todd What he says: What he decides: It’s a good thing these campaigns drive to microsites; otherwise, they would kill my conversion rates. The microsites are marketing’s concern. My job is to optimize the funnel. Stupid siloes. Marketing, site experience, conversion rate optimization and testing are all part of the same thing. No integrated customer journey. Everyone owns their little piece of the experience. No one owns the customer. What’s wrong with this picture
  • 9. Page 9 Transforming the digital channel with analytics Is this you? I generate reports based on KPIs set by the business. I create our campaign strategy in brainstorming sessions with our agency. I allocate dollars by channel. PPC drives more conversions, so I spend more there. I design creative that is clean and beautiful. I like this video to feature. I manage site experience, but I’m not much involved with marketing campaigns. I decide how much to spend on digital marketing. I’m growing digital by 10% this year.
  • 10. Page 10 Transforming the digital channel with analytics Because here’s the simple truth If you want to be good at something, you have to be able to make consistently good decisions about it. When it comes to digital decision-making, the vast majority of traditional enterprises Fail.
  • 11. Page 11 Transforming the digital channel with analytics Here’s why They “do” analytics, but they don’t use it. They “test,” but they don’t learn. They “talk” customer first, but they don’t listen. They “do” agile, but they aren’t.
  • 12. Page 12 Transforming the digital channel with analytics Getting digital right requires fundamental change Integration of CRO, testing and Marketing with a single customer- based framework Continuous controlled experimentation embedded in decision-making Optimization at every juncture – no exceptions How to make a difference Analytics for the truly strategic decisions Customer-driven framework built into every aspect of measurement and optimization Objective and proven measures of success
  • 13. Page 13 Transforming the digital channel with analytics The key ingredients Comprehensive and continuous experience engineering Fully integrated analytics Controlled experimentation Continuous improvement Constant customer research Journey mapping that never stops, is finely segmented, is truly multi-channel and drives a shared enterprise understanding of the experience the enterprise needs to provide. Analytics integrated at every step of the digital process. From strategic decisions around product and price, to channel investments, to content development, to specific marketing decisions. Controlled experimentation at every juncture to constantly explore decision points, enforce agile methods and deliver continuous improvement. No project ever stops. If it’s important to do, it’s important enough to keep improving. No timelines. No end points. Just continuous measurement, change and improvement. You listen to customers. You learn about them. You make customer focus and constant customer research a part of every project, every decision and every measurement.
  • 14. Page 14 Transforming the digital channel with analytics Tackling the C-Suite Keep in Mind: You aren’t always (or maybe ever) going to be a top priority. Even senior execs have a limited amount of political capital – help them use it wisely. Behavior trumps words. If you can get Execs USING data you’ll be much better off than if you have them talking about it. Strategies: C-Suite Analytics Advisor: Can’t get a CAO? Having an analytics advisor may be easier and more practical and will keep analytics in the ear of your executive team. Focus on Strategic Analytics: Are you really answering important questions? So much of what we do is tactical we shouldn’t expect Execs to be interested. VoC is a particularly strategic analytics channel – but only when you take it beyond Scoreboard metrics like NPS. Provide Questions not just Answers: Executives asking good questions can be a powerful driver of analytics in the organization. Arm executives with the right questions and they can drive the organization to better answers.
  • 15. Page 15 Transforming the digital channel with analytics A Quick Detour into Voice of Customer VoC is the single biggest strategic opportunity in analytics. Why doesn’t it do more?
  • 16. Page 16 Transforming the digital channel with analytics Key systems are often too narrow â–ș Online survey research is significantly under-utilized: − Site-side metrics like ACSI and NPS are used as the primary barometers of success and little attention is paid to what DRIVES success. − Surveys are too long, leading to low take-up rates and survey fatigue. − Surveys are stuffed with questions about the site rather than the customer. This example survey lacks questions about real drivers of customer decision-making. − Survey sample rates are too low to support behavioral integration. − Questions are siloed from offline tracking, making comparability impossible.
  • 17. Page 17 Transforming the digital channel with analytics From online surveys to social media â–ș Social media measurement is often limited: − Most social media systems are set up without thought to sampling issues and with improper governance. The result is a mishmash of paid opinion and noise. − Statistics like brand mentions and sentiment lose meaning when aggregated across source and type, yet are routinely populated in enterprise dashboards. − Social measurement lacks customer value or segmentation, leading to questions such as, “What is the value of a ‘fan’?,” and empty metrics such as, “social media ‘fan’ comparisons.” − The teams running social media measurement are often PR or social agencies that lack experience in audience measurement or analytics. 9% 72% 6% 5% 8% Firm 1 News Social media #1 Blogs Comments Social media #2 5% 84% 3% 4% 4% Firm 2
  • 18. Page 18 Transforming the digital channel with analytics From social media to help desk â–ș Call-center and Help Desk systems are often very siloed – problems aren’t surfaced outside the area and classification of problems can be problematic: − Data quality standards around operator encoding of call/ query purpose are often poorly monitored and checked. − Many organizations lack the necessary strategies for tying web to call-center. − Call-Center surveys – like site surveys – often focus on top-line satisfaction rather than drivers of satisfaction. − Available call-center data is usually siloed and lacks integration with other behavioral streams. − Call/ Query types are non-standard and non-comparable to web or other touch points. Source: http://semphonic.blogs.com/semangel/2011/12/web-analytics-and-the-call-center-.html
  • 19. Page 19 Transforming the digital channel with analytics Re-thinking Your Work Keep in Mind: Most of what you do doesn’t matter. Organizations don’t usually zero- base budget. Just like marketing attribution, you should be concerned about creating lift. Don’t ignore the packaging. That’s a tip, kids. Write it down. Strategies: Do less work but do it better. Spend more time on the packaging and storytelling. Find the people who can package stories and use them appropriately. Analytic reporting. Stop building reports and integrate – don’t ignore – BI. Tell people what will happen. Tell your own story. Claim successes. The importance of an end-of year round up and putting dollar numbers to what you do.
  • 20. Page 20 Transforming the digital channel with analytics Find the right problems Keep in Mind: Analytics has to be operationalized to be useful. Always evaluate the path to action for an analysis. Some problems are like the Russian winter (I’ve had issues with changing call-centers) – best avoided by invading armies. Strategies: Stakeholder interviews and analytic priorities. Don’t ask people about data, start with what decisions people have to make. Set the background. If the organization is going to build a new mobile app, publish a report on what gets used in the existing one. Experimentation is often a great “political” solution to resolving organizational debates. Courage matters. Don’t be afraid to have a point- of-view. Good execs respect contrary opinions (even when they don’t listen). Nobody cares what you think if you won’t say what you think.
  • 21. Page 21 Transforming the digital channel with analytics Contact Gary.Angel@DigitalMortar.com