customer acquisition

CMOs Using Marketing Analytics Sparingly; Most Forgo Formal Evaluation of Quality

source: http://www.marketingcharts.com/wp/topics/financial/cmos-using-marketing-analytics-sparingly-most-forgo-formal-evaluation-of-quality-36312/?utm_campaign=rssfeed&utm_source=mc&utm_medium=textlink

Duke-CMO-Survey-Marketing-Analytics-Trends-Aug2013Worsening trends for marketing analytics in the US, according to the latest CMO Survey [pdf] from Duke University’s Fuqua School of Business. The percentage of projects estimated by CMOs to be using marketing analytics has dropped to 29% from 35% at this time last year, while two-thirds of CMOs now say their company doesn’t formally evaluate the quality of marketing analytics, up from 53.2% last year.

Another measure of marketing analytics’ influence is the degree to which its use contributes to company performance. And CMOs’ responses in this latest installment of the survey again show a declining trend: On a 7-point scale (with 7 being “very highly” and 1 “not at all”), CMOs gave analytics’ contribution a mean rating of 3.5, down from 3.7 in the February 2013 survey and 3.9 in the August 2012 survey.

Currently, analytics are most commonly being used to drive decision-making in the areas of customer acquisition (31.7%), digital marketing (28.5%) and customer retention (27.6%), per the study.

CMOs indicated that they infrequently leverage marketing analytics to answer their most challenging marketing questions. More than 1 in 8 said they weren’t leveraging analytics any of the time to answer such questions, compared to just 4.3% saying they do so all the time. (The mean rating was 3.7 on the 7-point scale, with 7 referring to use “all of the time.”)

Numerous studies (such as this one) have highlighted the difficulties marketers are facing when looking for the right talent for data analysis, and CMOs’ responses support those findings. On a 7-point scale (7=has the right talent), almost 4 in 10 respondents rated their company’s analytics talent as a 1 (12.9%) or 2 (25.4%).

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Friday, August 30th, 2013 news No Comments

Small Businesses Favor Tactics that Balance Customer Attraction, Retention – eMarketer

source: http://www.emarketer.com/Article/Small-Businesses-Favor-Tactics-that-Balance-Customer-Attraction-Retention/1009794

Small business websites widely seen as most effective marketing technology

Small businesses, frequently strapped for both time and cash, often need their marketing dollars to work double time—using the same resources to attract new business and retain loyal customers.

Online marketing service provider Constant Contact conducted a survey in October 2012 of 1,305 small businesses and nonprofits from its customer base to see how different tactics and channels balanced customer acquisition with customer retention.

Respondents were most likely to say that their website struck an effective balance: 77% said the site was well-suited both to engaging existing customers and attracting new ones. A majority of respondents felt similarly about their blog (69% said it was effective at both tasks) and their social media marketing efforts (60%).

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Thursday, August 22nd, 2013 news No Comments

drag2share: Which Digital Channels are Most Effective at Customer Acquisition

source: http://feedproxy.google.com/~r/businessinsider/~3/L5igeZYUM74/social-media-lags-as-direct-customer-referrer-but-could-be-fueling-organic-purchases-2013-7

E-commerce retail sites are acquiring just .18% of their online customers via Facebook and Twitter, according to a study released June 25 by Custora.

The study analyzed Google Analytics data linked to 72 million customers — an online visitor who purchased something — from 86 U.S. online retailers across 14 industries.

(E-commerce sites typically add tags to their links across the Web, in both paid and non-paid placements, in order to track the source of their leads and sales in Google Analytics.)

Organic search continues to grow as a channel, accounting for nearly 17.53% of customers acquired in the first half of 2013, according to the study, led by data scientist Aaron Goodman.

E-mail has more than quadrupled its share of customer acquisition volume over the last four years, making it the fastest-growing among all the channels tracked in the study.

Other search-related channels also performed well.

Social media ranked low as a customer-generation channel. That said, Facebook is showing some potential. In 2009, less than .01% of new online retail customers came from Facebook, compared to .17% so far this year.

Twitter has never accounted for more than .01% of new retail customers during the five-year study. Worse, a Twitter customer’s lifetime value was 23% less than the average across all customer sources.

There is more than one way to interpret Custora’s data.

One could conclude that social! media i s ineffective as an e-commerce customer acquisition tool. But another way to look at it is that online retail sites simply aren’t putting a lot of resources into marketing themselves on social media, and are favoring search and e-mail channels instead.

Also, even if social media still isn’t there yet as a reliable direct source of customers, there’s no way to tell how many customers were in fact influenced by content they saw on social media, and visited retailers’ sites later.

Download the chart and data in Excel.

BII customer acquisition channels


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Wednesday, July 17th, 2013 news No Comments

B2B Marketing Budget Outlook Improves

source: http://www.marketingcharts.com/wp/print/b2b-marketing-budget-outlook-improves-26247/

BtoB-Marketing-Budget-Outlook-2013-v-2012-Jan201348.7% of B2B marketers expect to increase their budgets this year, per findings from a BtoB study. Generally speaking, marketers appear to have a rosier budget outlook this year than last: respondents were 21% more likely this year to say they would increase their budgets (48.7% vs. 40.1%), and 12% less likely to say they would cut them (9.5% vs. 10.8%). Most of that money will be spent on demand generation and customer acquisition, the top goal for 69.3% of respondents.

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Friday, July 12th, 2013 news No Comments

Marketing Teams Employing Growth Hackers “Champion” Measurement Efforts

source: http://www.marketingcharts.com/wp/topics/measurement-analytics/marketing-teams-employing-growth-hackers-champion-measurement-efforts-29037/

Ifbyphone-Growth-Hackers-and-Marketing-Metrics-Apr2013Marketing teams are as likely to employ a growth hacker as a product manager, suggests a new study [download page] by Ifbyphone. The report reveals that 25% of marketers surveyed indicate that their team employs a growth hacker (defined by the researchers as “professionals that combine expertise in marketing, product development and technology to drive revenue”), with these respondents reporting an above-average likelihood to track a variety of marketing metrics including conversion rates (50% vs. 41%), marketing ROI (53% vs. 40%), cost per lead (52% vs. 38%) and customer acquisition cost (59% vs. 34%).

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Friday, July 12th, 2013 news No Comments

Marketing Teams Employing Growth Hackers “Champion” Measurement Efforts

Ifbyphone-Growth-Hackers-and-Marketing-Metrics-Apr2013

Marketing teams are as likely to employ a growth hacker as a product manager, suggests a new study by Ifbyphone. The report reveals that 25% of marketers surveyed indicate that their team employs a growth hacker (defined by the researchers as “professionals that combine expertise in marketing, product development and technology to drive revenue”), with these respondents reporting an above-average likelihood to track a variety of marketing metrics including conversion rates (50% vs. 41%), marketing ROI (53% vs. 40%), cost per lead (52% vs. 38%) and customer acquisition cost (59% vs. 34%).

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Tuesday, April 30th, 2013 news No Comments

report

Source: http://econsultancy.com/us/blog/11198-mobile-marketing-mainly-used-for-customer-acquisition-report

However, as search is second only to email as the most popular smartphone task, there is certainly value in using mobile for customer acquisition and awareness.

The survey also asked respondents which mobile marketing tactics they use.

Reflecting the fact that social media is a hugely popular activity on smartphone, 66% of marketers said they invest in social mobile advertising.

Display was the second most popular activity (44%) followed by mobile web landing pages with promotions and location-targeted advertising (both 37%).

Interestingly, only 22% said they invest in mobile paid search, which suggests advertisers are missing the opportunity presented by this channel. We’ve seen numerous surveys which show that although mobile search spend is increasing rapidly, it’s still a relatively untapped area for marketers.

For example, data from Marin Software revealed that mobile devices accounted for 13% of search spend in June 2012, yet took a 20% share of clicks.

This is despite the fact that separate surveys shows that search spend increased 250% in Q1 and 333% in Q2 2012 compared with the same periods in 2011.

KPIs

Forrester also asked respondents what KPIs they use to assess their mobile marketing initiatives.

The most common answer was web traffic and visitors (63%), followed by CTR (58%), brand awareness (54%) and revenue (44%). 

The report takes this as further evidence that too many mobile advertisers are using desktop marketing tactics and haven’t yet adapted to the opportunities presented by mobile.

It recommends that marketers use mobile to deliver highly contextual, relevant information that directly engage individual consumers.

For further information on this topic check out our blog posts on whether your mobile strategy is fit for purpose and seven best practice tips for mobile marketers.

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Tuesday, December 4th, 2012 news No Comments

Will Groupon Thrive Or Tank In Q4? This Chart Holds The Key (GRPN)

Source: http://www.businessinsider.com/this-chart-tells-you-whether-groupon-will-thrive-or-tank-in-q4-2011-12


groupon girl

Groupon’s Q4 2011 couldn’t be more crucial: Will it see the revenue bump it needs from holiday shoppers to justify its business model? Or will sales collapse following CEO Andrew Mason’s promised pullback on marketing and customer acquisition spending?

The Wall Street Journal reports that gross billings at the company rose just 1.5 percent from September to October, and not 22 percent as previously estimated.

Has the company reached a plateau before falling of a cliff? Or is it merely taking a pre-Thanksgiving breather before continuing its climb up the Christmas sales ladder?

The company could go either way. Until recently, the company has been dependent on a cash float (and the money it raised in its IPO, of course) to stay in business. Groupon generally makes a loss each quarter. It funds its operations by taking revenues from customers’ credit cards immediately and then delaying for 30 days or so the share of those sales it owes to the merchants who made the offers. As long as there is a greater amount of new money coming in than old money owed, Groupon continues to function.

But what happens if Groupon enters a period in which its revenues decline? At most companies that isn’t too problematic — management can cut expenses to remain profitable. But at Groupon the company’s marketing and customer acquisition expenses are closely related to its revenues. It is not at all clear whether Groupon’s revenues will continue to rise if Mason cuts costs. ! Here’s a chart showing Groupon’s net revenues plotted against its total operating expenses:

groupon

As you can see, in Q3 Mason pulled back on expenses (the green line) in hopes of seeing a profit, but revenue growth (the red line) began to lose steam. The WSJ report suggests it hasn’t regained momentum since, but the October sales period doesn’t include the Christmas run-up.

In Q4, this chart is all you will need to understand whether Groupon can mature into a business that isn’t funded by stock sales. If Mason can get the red line above the green line, or if he can keep the red line moving upward, then he should be congratulated.

If he cannot, then the company — and its investors — will need to do some serious thinking about whether their daily deal business model is viable or not.

SEE ALSO: Groupon Allegedly Hacked Merchant’s Email To Alter Contract

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Monday, December 12th, 2011 news No Comments

CCA – cost of customer acquisition

how do we judge the relative merit and effectiveness of different types of advertising? By finding a common parameter that can be used to compare “apples to apples.” We argue that cost of customer acquisition is a great candidate for such a parameter.

For example, if television advertising cost $50 million to produce and air, and 1,000 people came to the acquisition website, and 10 people applied for and received credit cards then the CCA — cost of customer acquisition would be $5 million ($50 million / 10 people who got the credit card). Of course television advertisers would claim that the “impressions” from TV would have “branded” millions more people and they would eventually get a credit card from the company. That’s possible. But for the purposes of this exercise, if there is no absolute end-to-end tracking, we don’t count it. Because, for example, many other possible scenarios can also occur, like the person saw this ad for a credit card but ended up getting a card from a different bank, they saw and remembered the ad but they already had several credit cards from the company, etc.

With “online” we can easily see lift in search activity around the time that brand/awareness advertising is in-flight. This is one of the best indicators of interest — the person saw the TV ad, and was inspired enough to go online to do more research to inform their own purchase decision. Modern consumers will typically search and then click through. In rare instances, they will type the URL, but it is usually the domain name, not the special URL — domain_name.com/special_url — just because of pure laziness or simply because they forgot the /special_url portion.

Now let’s look at a print example: a print ad cost $5 million to produce and traffic in targeted magazines. About 1,000 people came to the website and 10 people ended up purchasing the advertised product. So the CCA is $500,000 per customer acquired.  There may be more people who saw the ad and eventually came in to buy a product. But again, there is a problem of attribution.

Now a final example from “online” marketing.  Search ads were run using Google Adwords and a $1 CPC (cost per click) was paid. Of those people who clicked through 1 in 20 purchased a product. So it took 20 clicks at $1 each to achieve 1 sale – so the cost of customer acquisition is $20.

OK, so what about prodycts not sold online? We can use a proxy which has a known conversion to sales. For example, once a coupon is printed from the website, from historic data the advertiser knows that 30% end up using the coupon – i.e. redeeming with a purchase. So, again, if we used a $1 CPC and 1 in 20 ended up printing the coupon and 30% of those “converted” to an offline sale, the CCA would be $66.67  ($20/0.30).

So to recap

Television – $5 million CCA

Print – $500,000 CCA

Paid Search – $20 CCA

Paid Search + Offline Sale – $67 CCA

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Saturday, February 21st, 2009 digital, integrated marketing, marketing No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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