Wanted to share a very thorough Performance Marketing Audit that gets to the ROI that good marketing systems drive.
The Marketing Ops Audit: Why It Matters and How to Do It Well
http://www.business2community.com/marketing/marketing-ops-audit-matters-well-01924870#4IRRpjYKrUA5Svsh.03
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chuckg2036@yahoo.com shared this using Po.st
5 Things For Canada Goose's Online Business
Today Retailer Canada Goose decided to take business online in addition to it's current wholesale and brick and mortar strategy. This is good news for them and probably not a moment too soon!
In the article (click here) the message is that they hope to close a 15-point margin gap between its rivals by selling online. This is all well and good, but here are some other points to consider:
> Shipping Costs - customers will be willing to pay a limited amount for shipping. This is one of the reasons Amazon's model is so effective....low cost delivery! They'll need to run plenty of testing in this area to see what works.
> Return Policy - do research in this area to understand the impact of potential returns on the business. Implement a good policy and watch closely as it could weigh on margin and feed negative publicity on social sites.
> Social Sharing - evaluate how this can be incorporated into the new website, if possible, so that existing customers "word of mouth" can help do the selling. In this process, and with the right tools, they could also find brand ambassadors to push the message in new markets.
> Analytics - some investment must go to both E-commerce and Consumer analytics so they can quickly see how the online customer differs from Wholesale and Brick and Mortar customers. There will without a doubt be distinctions in the products customers chose and their shopping habits, not to mention that there could be big demographic swings. Analytics will get them on top of these issues so adjustments can be made quickly.
> Automation - there's usually not much marketing automation required in a brick and mortar or wholesale business. But for E-commerce, it can make a significant difference in conversion as they evaluate the sales funnel.
This an exciting time for Canada Goose as they bring their business forward and onto the digital landscape. Making sure that shipping and returns, analytics and automation and social are all given the proper review and investment will be the key to their success.
In the article (click here) the message is that they hope to close a 15-point margin gap between its rivals by selling online. This is all well and good, but here are some other points to consider:
> Shipping Costs - customers will be willing to pay a limited amount for shipping. This is one of the reasons Amazon's model is so effective....low cost delivery! They'll need to run plenty of testing in this area to see what works.
> Return Policy - do research in this area to understand the impact of potential returns on the business. Implement a good policy and watch closely as it could weigh on margin and feed negative publicity on social sites.
> Social Sharing - evaluate how this can be incorporated into the new website, if possible, so that existing customers "word of mouth" can help do the selling. In this process, and with the right tools, they could also find brand ambassadors to push the message in new markets.
> Analytics - some investment must go to both E-commerce and Consumer analytics so they can quickly see how the online customer differs from Wholesale and Brick and Mortar customers. There will without a doubt be distinctions in the products customers chose and their shopping habits, not to mention that there could be big demographic swings. Analytics will get them on top of these issues so adjustments can be made quickly.
> Automation - there's usually not much marketing automation required in a brick and mortar or wholesale business. But for E-commerce, it can make a significant difference in conversion as they evaluate the sales funnel.
This an exciting time for Canada Goose as they bring their business forward and onto the digital landscape. Making sure that shipping and returns, analytics and automation and social are all given the proper review and investment will be the key to their success.
Top 5 Data Hygiene Issues
CRM Systems are becoming increasingly more important in today's information and digital age. Companies rely on them to help provide the Who, What, When and Where of sales, marketing and communication. But without good and clean data, it would be challenging to for Marketers to find their answers and effectively drive engagement.
In my experience, roughly 15-20% of CRM Database records go bad each year. And here are the Top 5 reasons:
1) Movers - people have physically changed address and have not provided forwarding information.
2) Deceased - some will have lost their lives over the year.
3) New Accounts - some will have created new accounts with updated information.
4) Data Entry Errors - sales people, data entry clerks and even the customer can enter bad info.
5) Missing Data - some records will be partially entered at POS (Point-Of-Sale) for many reasons.
CRM users use the term "course data" to describe information that is broken and inaccurate. And we use the term "data scrubbing" as the process for evaluating data for inaccuracies and subsequently cleaning it. Companies that fail to identify course data and scrub it will find their marketing costs rising and campaign effectiveness dwindling.
A large mail house, CRM Vendor or your Technical team can help with data hygiene. And, it may actually require some input from all 3 in order to get the job done properly. As well, I wouldn't be surprised if some Big Data companies also provide data scrubbing services (see data cleansing cycle below).
No matter who does the job, it's important to be sure the cleansed data flows into connected systems such as Email, Ecommerce, SMS and the like.....where ever there are marketing touch-points. Failure to make this connection will cause the issues to be further perpetuated. I should also note that any address information should be standardized in the "cleansing" process so that it's consistent with the USPS and ensure delivery.
Having bad data in your CRM and related systems can cause the following issues:
a) Undelivered Mail - each bad address in your mail file will cost you postage, printing and paper.
b) Reduced Engagement - missing name, suffix and or salutation information will reduce your ability to personalize marketing messages and thus grab the customer's attention.
c) Erroneous Segmentation & Targeting - partial records can impact customer segmentation, especially if it causes multiple records to be created for a single customer. Sales can be scattered across multiple accounts.
All of the above issues will substantially impact customer engagement, conversion and campaign ROI. This can be a perpetual campaign if scrubbing systems aren't setup and maintained on a regular basis.
In my experience, roughly 15-20% of CRM Database records go bad each year. And here are the Top 5 reasons:
1) Movers - people have physically changed address and have not provided forwarding information.
2) Deceased - some will have lost their lives over the year.
3) New Accounts - some will have created new accounts with updated information.
4) Data Entry Errors - sales people, data entry clerks and even the customer can enter bad info.
5) Missing Data - some records will be partially entered at POS (Point-Of-Sale) for many reasons.
CRM users use the term "course data" to describe information that is broken and inaccurate. And we use the term "data scrubbing" as the process for evaluating data for inaccuracies and subsequently cleaning it. Companies that fail to identify course data and scrub it will find their marketing costs rising and campaign effectiveness dwindling.
A large mail house, CRM Vendor or your Technical team can help with data hygiene. And, it may actually require some input from all 3 in order to get the job done properly. As well, I wouldn't be surprised if some Big Data companies also provide data scrubbing services (see data cleansing cycle below).
No matter who does the job, it's important to be sure the cleansed data flows into connected systems such as Email, Ecommerce, SMS and the like.....where ever there are marketing touch-points. Failure to make this connection will cause the issues to be further perpetuated. I should also note that any address information should be standardized in the "cleansing" process so that it's consistent with the USPS and ensure delivery.
Having bad data in your CRM and related systems can cause the following issues:
a) Undelivered Mail - each bad address in your mail file will cost you postage, printing and paper.
b) Reduced Engagement - missing name, suffix and or salutation information will reduce your ability to personalize marketing messages and thus grab the customer's attention.
c) Erroneous Segmentation & Targeting - partial records can impact customer segmentation, especially if it causes multiple records to be created for a single customer. Sales can be scattered across multiple accounts.
All of the above issues will substantially impact customer engagement, conversion and campaign ROI. This can be a perpetual campaign if scrubbing systems aren't setup and maintained on a regular basis.
The Great Divide - Marketing vs. Financial Metrics
Oftentimes company divisions are misaligned on Marketing Metrics which could put many of the customer driving programs in jeopardy. In fact, it is quite common for the Sales and Marketing departments to have very different ideas about performance metrics than the Finance department.
Marketing's typical and key metrics are usually as follows:
> ROAS - meaning return on Advertising Spend and calculated as Sales/Advertising Spend
> Impressions - number of people exposed to advertising media
> Click Thru Rate (CTR) - percentage of media viewers who clicked on media or Clicks/Ad Sends
> Conversion Rate (CVR) - percentage of media recipients who placed an order or Orders/Clicks
> Lift - meaning sales or conversion rate above the standard or control group
> Cost Per Impression (CPI) - media cost per impression or ad displayed
> Cost Per (M) Impression (CPM) - media cost per one thousand impressions or ads displayed
> Cost Per Acquisition (CPA) - media costs per customer acquired
> Cost Per Click (CPC) - media costs paid for each click on the advertisement
What becomes clear and predominate in Marketing Metrics is a measure of Cost. Most often Marketers are beholden to a limited budget on which to drive traffic and sales. And the key to managing the budget is to be sure spend is generally customary and reasonable to acquire each new customer or order.
On the other hand, Finance and Accounting departments are primarily concerned with Sales growth and Return on Investment (ROI) as they are charged with being the custodian for all money spent in the company to earn sales.
Finance - higher returns vs. Marketing - lower acquisition cost
This difference in objective I call "The Great Divide" as it can polarize the company where these departments are concerned. With all marketing metrics being considered, if Finance cannot translate sales driven by marketing spend to ROI, it may jeopardize any further spend on those activities and oftentimes can lead to cutbacks.
So what does it take to bridge the "The Great Divide"? Incrementality! Amongst other measures, Marketers must endeavor to calculate the incremental components of their efforts. Whether it be sales, conversion, orders or customers it must be understood how $1 of marketing spend delivers on any other unit of measure which is the basis for ROI analysis. This would help develop a much cleaner path to understanding for Finance and help support Marketing's position on spend and budgets.
Marketing's typical and key metrics are usually as follows:
> ROAS - meaning return on Advertising Spend and calculated as Sales/Advertising Spend
> Impressions - number of people exposed to advertising media
> Click Thru Rate (CTR) - percentage of media viewers who clicked on media or Clicks/Ad Sends
> Conversion Rate (CVR) - percentage of media recipients who placed an order or Orders/Clicks
> Lift - meaning sales or conversion rate above the standard or control group
> Cost Per Impression (CPI) - media cost per impression or ad displayed
> Cost Per (M) Impression (CPM) - media cost per one thousand impressions or ads displayed
> Cost Per Acquisition (CPA) - media costs per customer acquired
> Cost Per Click (CPC) - media costs paid for each click on the advertisement
What becomes clear and predominate in Marketing Metrics is a measure of Cost. Most often Marketers are beholden to a limited budget on which to drive traffic and sales. And the key to managing the budget is to be sure spend is generally customary and reasonable to acquire each new customer or order.
On the other hand, Finance and Accounting departments are primarily concerned with Sales growth and Return on Investment (ROI) as they are charged with being the custodian for all money spent in the company to earn sales.
Finance - higher returns vs. Marketing - lower acquisition cost
This difference in objective I call "The Great Divide" as it can polarize the company where these departments are concerned. With all marketing metrics being considered, if Finance cannot translate sales driven by marketing spend to ROI, it may jeopardize any further spend on those activities and oftentimes can lead to cutbacks.
So what does it take to bridge the "The Great Divide"? Incrementality! Amongst other measures, Marketers must endeavor to calculate the incremental components of their efforts. Whether it be sales, conversion, orders or customers it must be understood how $1 of marketing spend delivers on any other unit of measure which is the basis for ROI analysis. This would help develop a much cleaner path to understanding for Finance and help support Marketing's position on spend and budgets.
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