Digital Marketing - UCD Dublin - Session 9 PDF

DIGITAL MARKETING MKT30120 Digital Marketing Session 9 SESSION 9 Dr. Katie Nguyen  Administrative class Only Participation in class DIGITAL MARKETING...

DIGITAL MARKETING MKT30120 Digital Marketing Session 9 SESSION 9 Dr. Katie Nguyen  Administrative class Only Participation in class DIGITAL MARKETING 01 discussion counts 02 Email: Name + Questions that you answered SESSION 9  Final Quiz April 22nd DIGITAL MARKETING 01 In-class exam DSS students Multiple choice questions 02 Open-ended questions SESSION 9 03 All Materials (Week 1 – Week 11)  Session 9: Agenda 01 User experiences DIGITAL MARKETING UX research Analytics 02 Return on Investment Customer Lifetime Value Common KPIs (Web SESSION 9 Analytics) Social Media KPIs Search Engine KPIS  Usability testing Research that works directly with users, letting them test your UX. This gives you an opportunity to learn where there are DIGITAL MARKETING challenges and areas for improvement. It is define by 5 components: - Learnability: It is easy to do basic tasks the first time? - Efficiency: how quickly you can perform tasks? - Memorability: is it easy to remember? SESSION 9 - Errors: How many errors users do (level, intensity)? - Satisfaction: How pleasant is it to use?  Ethnographic models Ethnography is the study of people and cultures, observing society from DIGITAL MARKETING the subject's perspective. It provides a unique view from individuals themselves. Helps understand not only behaviors but also underlying needs and motivations. Strengthening Expanding into high- customer engagement Methods include participant observation, interviews, diary studies, and growth markets. through personalized experiences. SESSION 9 scrapbooks. Provides deep insight into what individuals are doing and why. SESSION 9 DIGITAL MARKETING Ethnographic models  Web analytics is the process of analyzing the behavior of visitors to a Website. The use of Web analytics is said to DIGITAL MARKETING Web Analytics enable a business to attract more visitors, retain or attract new customers for goods or services, or to increase the SESSION 9 dollar volume each customer spends SESSION 9 DIGITAL MARKETING Web Analytics SESSION 9 DIGITAL MARKETING Web Analytics – User flow  SESSION 9 DIGITAL MARKETING Web Analytics – User flow  KPI KPIs (Key performance metrics) measure the success of your campaign. Ensure your reporting and dashboards DIGITAL MARKETING align with business KPIs. Business models, objectives, visions, and Customer retention rates, monthly active users cultures determine KPIs. SESSION 9 Customer acquisition, market Carbon footprint reduction, waste reduction, share, and revenue growth or sustainable product sales  KPI Your strategy must deliver what the company needs to gain decision maker approval. Be adaptable to changes in company KPIs (e.g., shift from customer acquisition to profit maximization). DIGITAL MARKETING KPI changes can result from market conditions, shareholder demands, or competition. o Economic downturn o New regulatory changes o Supply chain disruption o Pricing pressure from competitors SESSION 9 o Innovation or new products from competitors ….  ROI: THE MOST INFLUENTIAL KPI ROI (Return on Investment) is so powerful because it is closely tied to business profits. Regardless of business DIGITAL MARKETING objectives, the bottom line for a business is to maintain profitability. Marketing Profits ROI = —------------------ X 100 Marketing Costs SESSION 9  ROI: THE MOST INFLUENTIAL KPI 100% ROI: For every $1 DIGITAL MARKETING invested, you receive $1 ROI can be an elusive metric to calculate. Profits back in profits earned as a direct result of a marketing initiative, 0% ROI?? marketing profits, must be parsed out in order to calculate ROI. Negative ROI?? SESSION 9  REPEAT AND LONG-TERM CUSTOMERS IMPACT ROI Profits from marketing initiatives often are actualized over long periods of time. DIGITAL MARKETING Using the current profits from business operational data works in cases of short-term customer relationships and immediate SESSION 9 payments. SESSION 9 DIGITAL MARKETING Return on Ad Spend  Customer lifetime value Customer Lifetime value (CLV): the calculation of the average DIGITAL MARKETING profits per customer over the entire span of the relationship between business and customer CLTV = Lifetime × Avg Margin On average a donut shop collects $25 in profits per SESSION 9 customer each month. On average its customers remain loyal to the business for 15 months. What is the customer lifetime value?  Customer lifetime value CRM programmes Length of Member-get-member schemes DIGITAL MARKETING Customer Lifetime Loyalty schemes Service levels Factors to improve CLTV Repeat purchases Cross-selling and up- selling Average Margin Returns and refunds SESSION 9 per Customer Pricing and discounts Operating costs Conversion rates Segmentation  CALCULATING ROI USING CUSTOMER LIFETIME VALUE DIGITAL MARKETING A company invests $50,000 in a marketing campaign. As a result, they acquire 500 new customers. The Customer SESSION 9 Lifetime Value (CLV) for each customer is $200. Calculate the Return on Investment (ROI) of the marketing campaign using the given formula.  Common KPIs DIGITAL MARKETING Digital Marketing media Traffic Metrics SALFORD9& CO. Conversion Metrics SESSION Revenue per Session  Traffic Metrics User: Each unique individual who accesses a digital marketing media platform DIGITAL MARKETING such as a website is reported as one user. New User: Indicates whether the website is generating traffic from new potential buyers or whether the SESSION 9 website is generating repeat sessions from previous users  Traffic Metrics Session: Reports the DIGITAL MARKETING number of website sessions broken down by source channel Pageview: SESSION 9 An instance of a web page being loaded (or reloaded) in a digital marketing media platform; sometimes referred to as "screen view" on mobile apps Each pageview, or "hit," represents a request to the server. However, pageviews alone are a weak performance indicator, as higher counts don’t always lead to more conversions, unlike users or sessions  Conversion/ DIGITAL MARKETING Engagement Metrics Event Counts: Tracks how often an event is recorded by analytics. It is SESSION 9 mostly useless since events vary greatly in importance  Conversion/ DIGITAL MARKETING Engagement Metrics Conversion: Any event recorded that has been indicated as a high SESSION 9 priority for consumers to complete  Conversion/ DIGITAL MARKETING Engagement Metrics Average Engagement: The amount of time each user spent actively engaging with the website during a selected time period This metric thus measures website SESSION 9 "stickiness" in both its ability to keep users engaged and its ability to bring users back for additional sessions. SESSION 9 DIGITAL MARKETING SESSION 9 DIGITAL MARKETING SESSION 9 DIGITAL MARKETING  Revenue per Conversion Revenue per session (RPS) is an important KPI, but one that is often overlooked or misunderstood. Below is, first, a simple example of the RPS calculation with hypothetical revenue and session figures DIGITAL MARKETING RPS calculation: Original Variant 1 Variant 2 Sessions 60,000 7,000 33,000 SESSION 9 Revenue $81,400 $14,000 $50,490 Revenue per Session ? ? ?  Conversion Rate: Conversion rate indicates the percentage of pageviews or clicks that result in a conversion. This number helps determine the effectiveness of digital experiences driving conversions. The higher the conversion rate, the better. DIGITAL MARKETING Revenue per Conversion SESSION 9 Average Order Value: Average order value indicates the average amount of revenue resulting from one purchase conversion transaction. The higher the average order value, the better.  Revenue per Session Alternative RPS calculation: DIGITAL MARKETING Original Variant 1 Variant 2 Conversion Rate 4.0% 5.0% 4.5% SESSION 9 AOV $34 $40 $34 Revenue per Session ? ? ?  Applying RPS- Activity 1 OR DIGITAL MARKETING What’s your move? Sessions 10,000 Conversions 100 Revenue $20,000 Cost of Goods $8,000 Sold SESSION 9 (PPS= profit per session) CPC $0.45  Applying RPS- Activity 2 OR DIGITAL MARKETING What’s your move? Sessions 3,850 Conversions 104 Revenue $3,210 Cost of Goods $0 Sold SESSION 9 CPC $0.90  Applying RPS- Activity 3 OR DIGITAL MARKETING What’s your move? Conversion rate 3% AOV $125 CPC $2.20 SESSION 9  Original Variant 1 Variant 2 Sessions 60,000 7,000 33,000 Conversions 2,400 350 1,485 Conversion Rate 4.0% 5.0% 4.5% DIGITAL MARKETING AOV $34 $40 $34 Revenue $81,400 $14,000 $50,490 A/B Test Revenue per Session $1.36 $2.00 $1.53 Results Emails Collected 12,000 500 6,000 Email Value $60,000 $2,500 $30,000 SESSION 9 Value per Session $1.00 $0.36 $0.91 Total Value per $2.36 $2.36 $2.44 Session  Social Media DIGITAL MARKETING KPIs Like media sites, social media platforms rely on advertising and prioritize user SESSION 9 engagement.  Engagement Metrics Differ: The best indicators of engagement vary for social media sites. New Account Sign-ups (Conversions). Social A social media platform needs a large Media KPIs DIGITAL MARKETING user base Growing the user base is crucial Posts/X/Pins/etc. Most social media sites are driven by user-generated content, so a KPI for a social media site is any measure that reflects the amount of content being SESSION 9 created by users. Ideal engagement involves widespread user participation rather than a few users generating excessive content.  Likes/Re-posts/Re-Pins/etc. Social media sites need users to not only create content but also consume it No single metric will work for all social media sites Social Each site needs to determine its own Media KPIs DIGITAL MARKETING measure to use as a KPI on this dimension Average Time on Site: The amount of time spent on the site SESSION 9 Total daily time spent per user better reflects engagement than session duration  Search Engine KPIs A search engine aims to Searches. Rather than measuring DIGITAL MARKETING provide the best content list sessions or users, a search engine for users. wishes to generate searches. Its goal is to help users find content quickly and leave. Unlike other sites, a search SESSION 9 engine prioritizes user exits  Search Engine KPIs Conversion rates: Google and Bing will forego this DIGITAL MARKETING KPI, because they typically do not try to generate a conversion of any kind Travel-related search engines prioritize conversions for SESSION 9 commissions. They aim to maximize conversion rates.  Search Engine KPIs Pages per Session. DIGITAL MARKETING A search engine wants to track pages per session, not to maximize it, but to minimize it If a searcher needs to navigate to the second or third page of search results, the search engine is not doing a good job ordering the search results Ideally, users find what they need on the first page. SESSION 9 SESSION 9 DIGITAL MARKETING Thank you