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In his 2-part blog article, management consultant Christian Endres explains why data has the power to create a winning momentum for the performance marketing of any company. In the first part of the blog post, you will learn how meaningful data can give you a better, more transparent overview. The second part of the article explains precisely how this data has the potential to achieve higher sales with the same budget.
Today's marketeers have to grapple with complex questions such as: which data analyses can help me to spend my budget more effectively? And what similarities in my data can help me create reliable and meaningful performance metrics?
A good data structure is fundamental to success in digital marketing. You will never be able to successfully future proof your marketing strategy unless you give top priority to measuring and optimizing your data. You must also know how to compare and synchronize different data sources. If a marketeer adopts a data-driven approach that is accurate and consistent and aligns his strategy to the needs of his customers, he will achieve higher sales with the same budget, or the same level of sales for a more modest budget. To achieve an optimum outcome, however, the right measures must be in place at the outset.
Greater insight – thanks to "research online - purchase offline"
The tendency of many of today's buyers to "research online - purchase offline" affords advertisers greater scope for analyzing customer behavior more precisely. Even if all the necessary data is available from the POS system, the CRM system and the online campaign, there will still be further organizational complications to deal with before you can process the data. An impartial data service provider who meets the regulatory, technical and procedural requirements and carefully complies with data protection requirements can be a great help here.
The comparability of key figures
Each channel follows its own metrics rules, whether it's point-of-sale, social networking or email marketing. Detailed reporting usually shows all the key metrics at a glance, but it doesn't take long for problems with the available data sources to come to light. For example, any marketeer will want to know whether the metrics are consistently defined and whether the results are therefore really comparable with each other.
For direct marketing, what matters most are the open rates. Brand managers using video ads, on the other hand, are interested in unique visitors, or ad impressions, and viewership. It is therefore essential that you develop a reporting system that enables consistent statements to be made and that establishes a close link with the performance metrics of the core business.
Better analysis for greater budget efficiency
Standardizing terminology and measurement methods can be an extremely difficult task. Within any single transaction there are very different "snapshots":
a) Point in time of action - customer places an order
(b) Point in time at which the transaction cannot be cancelled
It is essential to standardize measurement values such as time and dates, especially if several systems are supplying the raw data. When the quality and consistency of the data is satisfactory, and the analysis is meaningful, it becomes much easier to judge the effectiveness of the budget employed.
When you create a clear picture of the potential customer in advance, it is easier to determine who exactly should be targeted and recruited, with what budget, and with what creative and call to action. It is also easier to predict the behavior of your customers, i.e. those spending time in your online shop and on your website. As a result, you can also measure customer lifetime value relatively accurately.
How do I create a consistent and cross-channel picture of the customer and how do I optimize my media budget? Find out in the second part of Christian Endres' blog post.
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