The marketing conversion funnel is more or less the same process irrespective of whether its online or offline marketing efforts that have been undertaken. Though different implementations and interpretations may introduce varying degrees of complexity into the process, at its core it requires only three steps. Connections made or the number of contacts effected, finding out the most viable contacts or leads from all connections made, and finally making the sale and remarketing to the most favorable leads.
Traditional marketing has a practice of setting monthly targets, these targets are put in place in order ensure that a certain percentage of sales leads are acquired, resulting in a certain percentage of sales made. Similarly, in online marketing it is also possible to set targets and measure achievements with regard to lead generation and resultant sales. The ability to track every action taken by users online or via application usage data, means that measuring target achievements and value generation can be achieved with a high level of accuracy.
The most important elements of online or app marketing are “Conversion” and “Goal” achievements, explained simply it is about ensuring users or connections made are performing certain actions or demonstrating favorable behavior and intent. It is all about profiling and segmenting your contacts and leads based on the demonstrated behavior. The whole point of this exercise being that once we have identified users into distinctive groups and segments we can assign a monetary value to each group. Identifying groups and segments based on value means that we can then go on to make comparisons as well as direct our marketing budget at the most profitable groups and segments.
So the million-dollar question is how do we assign value, how can we assign a value to a video view, newsletter sign-up, info request or any other action taken by a user online. Without getting too much into the science of how to calculate value, as each situation will be unique and require a varying set of facts and figures taken into consideration, the way forward towards identifying value, would be to estimate the total earnings achievable or targeted during a given period and deduce the total number of sales leads required to reach that level of earnings. This calculation will then reveal the monetary value of a single lead.
Once we have assigned a value to a single sales lead, we can go on to value almost everything else from a segment or groups total value to individual values for every single action taken by users online. If we start valuing everything, then we can also start measuring success and analyze what is working. Analytics merely helps us measure what has happened, value and goal achievements will disclose if our marketing efforts have actually brought a return on investment. The bottom line is if we wish to use analytics to optimize online marketing efforts, then we have to use value indicators to measure success and disclose if we have made more money than what we have spent as well as if we are making progress over time.By Ziyan Ghany