By Paul Morris
Everyone knows digital marketing is a great marketing medium for accountability of ROI (Return on Investment) and LTV (Life Time Value).
However whilst ‘everyone’ knows about digital marketing accountability they often do not make tracking and attribution as toight as a tiger (see the video above from the great marketing guru that is Goldmember from Austin Powers).
Tips for making your digital marketing as toight as a tiger:
Ensure you use your tracking software as effectively as possible. Hence make sure you track all KPI’s (Key Performance Indicators), report back on them and analyse.
De-duplicate sales. No point counting a sale twice due to incorrect cross channel attribution or because you simply forget to account for the 90% return/ cancellation rate.
Ensure you utilise phone tracking by employing a tool such as AdInsight or MediaHawk in tandem with a decent CRM system such as Sales Force and a well trained work force to help implement the initiatives.
Tracking on a last click methodology only tells you half the ROI story. Hence utilise multi click attribution by starting with a system such as Google multi channel funnels and moving on to TagMan, Search Ignite, Core Metrics, Marin Software or Double Click. Look at my Mr Messy and realise the messed up route consumers take from the start to the end of the Search –> Conversion journey!
Go Micro and utilise trackable parameters in query strings so you can track to marketing medium/ keyword level/ banner/ call to action message.
Do not foget about LTV. Do not just focus on ROI of the initial sale. Start to understand and model LTV. Two of the best sectors I have worked in for LTV analysis are the magazine industry (when i was agency side) and the debt management industry (when i was client side). Both industries would have closed down by now if they relied on initial ROI and instead understand the benefit of LTV and modelled this per acquisition channel and customer type. You need to do the same.
Paul Morris Customer Warning: Remember though that despite everything I say above; Digital Marketing tracking is not perfect.
Tracking systems are not 100% accurate due to leakage such as ROPO (Research Online Purchase Offline), the messed up way we search across different mediums (showcased in my Mr Messy logo above) and across different platforms (mobile, laptop, desktop and tablet at work and home). The very nature of how we track (cookies, phone attribution, call centre questioning, sale reporting software, etc) can also cause problems; not insurmountable ones but ones that cause +/- variances in our calculations and it’s your job as a marketer to minimise these +/-
My last piece of advice is to employ the best analyst and LTV modeller you can afford to make use of all the great systems you employ!