Become a data driven organisation, and turn your KPIs into Euro's. Through monetization you are able to measure the real value of each digital channel, each online behavior and each audience segment.

1. MANAGE ✪ MEASURE ✪ MONETIZE

2. BUILDING A MARKETING ROI
ORGANIZATION THROUGH
MONETIZATION

3. FROM ANALYSIS TO OPTIMIZATION
Take Action
Share Data & Insights
Measurement & Analysis
Business Goals & KPIs

4. GUT FEELING? OR DATA DRIVEN?
1
• No decisions based on data
2
• Very few decisions based on data
3
• Decision making is sometimes guesswork and
sometimes backed with data
4
• Most decisions are based partially on data
5
• We don’t make decisions without seeing if there is
data we can leverage

5. • USES BUSINESS GOALS TO DRIVE DECISIONS
• AVOIDS GUT FEELINGS
• EMPLOYS DATA DRIVEN STANDARDS SUCH AS ROI
• SEGMENTS VISITORS ACCORDING TO NEEDS AND VALUES
• LISTENS TO ITS CUSTOMERS
A DATA DRIVEN ORGANIZATION…

6. FROM ANALYSIS TO OPTIMIZATION
Take Action
Share Data & Insights
Measurement & Analysis
Monetization & Prioritization
Business Goals & KPIs

7. BECAUSE WE WANT TO BE ABLE TO ANSWER:
1. WHICH CUSTOMER BEHAVIOURS PROVIDE MOST VALUE?
2. WHAT IS THE VALUE OF AN NON TRANSACTION ACTION?
3. WHAT IS THE VALUE OF THE EARN, BOUGHT, OWN MEDIA TO
OUR BUSINESS?
4. HOW SHOULD WE PRIORITISE OUR MARKETING INITIATIVES?

9. A BUSINESS METRIC FOR ALL STAKEHOLDERS
Stakeholder 1:
Measures success based
on KPI completions
Stakeholder 2:
Measures success based
on Impressions
Stakeholder 3:
Measures success based
on CPA
Stakeholder 4:
Measures success based
on qualitative data
monetized € values a
common success metric

11. ONLINE SALES
OWNED BOUGHTEARNED
ONLINE OFFLINE

12. ONLINE SALES
COST
REVENUE
ROI
OWNED BOUGHTEARNED
ONLINE OFFLINE

13. ONLINE SALES
COST
PROFIT
ROI
OWNED BOUGHTEARNED
ONLINE OFFLINE

14. OFFLINE SALES
OWNED BOUGHTEARNED
ONLINE OFFLINE

15. OFFLINE SALES
OWNED BOUGHTEARNED
ONLINE OFFLINE
COST
PROFIT
ROI

16. ONLINE INDIRECT
Product Demos, Onsite
Search, Facebook Likes, …
Difficulty: Medium
ONLINE DIRECT
Online Purchases
Difficulty: Easy
OFFLINE INDIRECT
Store Locator Usage,
Product Detail Views, …
Difficulty: Hard
OFFLINE DIRECT
Leads
Difficulty: Medium

17. OFFLINE SALES
OWNED BOUGHTEARNED
ONLINE OFFLINE
?

18. INDIRECT VALUE POINTS
• PROPENSITY TO BUY (PTB) *
• = [Interest(s) – Interest(c)] x [Real(c) / Interest (c)]
• Example:
• Survey: 10%
• Control: 4%
• Real: 2%
• [10 - 4] x [2 / 4] => PtB = 3%
* Source: Steve Jackson – Cult of Analytics

19. INDIRECT VALUE POINTS
• POTENTIAL VALUE
• = [PtB x #Visitors] x [Average Profit] x [Market Share]
• Example:
• PtB: 3%
• Visitors: 100.000
• Average Profit: € 1.000
• Market Share: 10%
• ((3% x 100.000) x (1.000) x (10%) = € 300.000
* Source: Steve Jackson – Cult of Analytis

20. OFFLINE SALES
OWNED BOUGHTEARNED
ONLINE OFFLINE

21. * Source: ZAAZ – Actionable Analytis

22. NORMALIZE AGAINST COMPARIBLES
* Lead Value = € 8.000
*
*
*
*
*

23. MONETIZATION
HELPS YOU UNDERSTAND
THE SALES INFLUENCE OF THE
DIGITAL ACTIONS
YOUR CUSTOMERS PERFORM

24. • Monetization is: a modelling methodology for
estimating the financial impact of selected digital
actions
• With the objective to: prioritise marketing
initiatives based on their financial value (€) and ROI
MONETIZATION MODEL
* Source: ZAAZ – Actionable Analytis

25. RETURNONINVESTOMENT
(revenue,cost-savings,riskofnot
doing,...)
COMPLEXITY OF IMPLEMENTATION
(time, effort, risk, complexity, ...)
EXECUTE
CONSIDER
CONSIDER
(decide, simplify or
split)
AVOID
PRIORITIZATION

26. ROI IN CONTEXT OF YOUR INITIATIVES
Initiative Project Score Weighted
Score
Contribution
Margin
ROI Business
Priority
Landing Page
Development
1 11,5 5 5,8
Product Detail Page
Update
2 8,3 3 4,3
Video Media
Enhancement
4 6,6 7 6,0
Secure User Area
Update
6 5,1 9 6,9
Weight 30% 30% 40%

27. MONETIZATION MODEL OUTPUTS
Dynamic
Prioritization
Monetisation
Scorecard
Key digital
reporting
scorecard
ROI Tools
Web Analytics
Integration
Database
Integration
Monetisation
Dataset

28. THE 5 STAGES OF MONETIZATION
No Guess
• There is no knowledge on how to
estimate a € value for an action
Educated
Guess
• Guess the value of an
action
Transaction
%
• Evaluate only transactional
actions
Sales
Influence
%
• Evaluate all purchase funnel
actions based on their sales
impact
Sales Influence
% on
segment/source
basis
• Estimate the
financial value of
an action based
on a customer
segment or traffic
source

29. MONETIZATION BENEFITS
1. MEASURE TOTAL VALUE OF THE PURCHASES FUNNEL
2. UNDERSTAND THE RELATIVITY IN VALUE OF THE DIGITAL
ACTIONS
3. SEE ROI IN CONTEXT OF YOUR INITIATIVES
4. DYNAMICALLY PRIORITIZE YOUR STRATEGIES AND TACTICS
5. ESTABLISH A BUSINESS METRICS FOR ALL STAKEHOLDERS

30. KEY TAKEAWAYS

31. MONETIZATION IS AN ONGOING PROCESS
Define the
Business
Goals
Quantitative
and
Qualitative
Research
Build/Update
Model & gain
insights
Correlate
with sales
and
marketing
activities
Revise
Assumptions
and Optimise
model
Process
* Source: ZAAZ – Actionable Analytis

32. BECOME A DATA DRIVEN ORGANIZATION
1. ANALYZE DATA BASED ON OVERALL BUSINESS GOALS
2. MONETIZE ALL KEY SITE BEHAVIOURS
3. FOCUS ON OPPORTUNITIES AND RECOMMENDATIONS – NOT JUST
REPORTING
1. PRIORITIZE BASED ON GREATEST IMPACT TO THE BUSINESS
2. ONGOING OPTIMIZATION PROCESS
3. MAKE SOMEONE ACCOUNTABLE

33. CONTACT:
SIEGERT DIERICKX - FOUNDER & DIGITAL ANALYTICS LEAD
SIEGERT.DIERICKX@ONLINEFOCUS.BE - @SIEGERTD
WWW.ONLINEFOCUS.BE