pave the path to marketing success with forrester + origami logic

Pave the Path to Marketing Measurement Success

Jim NailPrincipal Analyst Serving B2C Marketing Professionals

Steven WastieChief Marketing Officer

© 2016 Forrester Research, Inc. Reproduction Prohibited 4

Agenda

› Two pre-requisites for measurement success

› Four stages of measurement progress

› Getting started


Start right to build a strong measurement journey

Source: “Pave The Path To Measurement Success” Forrester report

Align your measurement approach with

business objectives

Collect relevant and actionable

data

Build the model to align with

business goals

Refine with optimization

and then repeat

Build a collaborative measurement

process

Communicate objectives and insights from

the start

https://www.forrester.com/report/Pave+The+Path+To+Measurement+Success/-/E-RES92342

https://www.forrester.com/report/Pave+The+Path+To+Measurement+Success/-/E-RES92342

Communicate objectives and insights


Why measurement projects fail›Black box syndrome

› “Report card” anxiety

›Fear of loss of control

›Data territoriality

›Omission of known market dynamics


Communication can help on all issues› Early: reassure stakeholders, educate on the approach

›During development: solicit knowledge of what questions are top priority, known factors that affect performance

› Initial results: Critiques, suggestions, buy-in

›Deployment: Quantify effectiveness

Build a collaborative process


Marketers Are Generally The Owners Of Marketing Mix Models

Which departments or functions are involved in managing your marketing mix modeling efforts on an ongoing basis?83%

63%

30%

30%

27%

17%

Mike Carpenter

4-1

Align measurement to business goals


Define scope of measurement project

›Specific channels/media? Digital or traditional?

›Global? National? Regional?

›All brands/products? One business unit? One brand?


Define question to answer› Quantify marketing ROI or identify optimal spend level?

› Strategic budget allocation or tactical channel/placement optimization?

› Which channels and creatives are driving the biggest impact for a campaign?

› How are my marketing campaign results performing against my KPIs?

› Understand the impact of external factors: seasonality, weather, economic conditions, competitive activity, etc.

Collect relevant and actionable data


Complete, accurate, clean data is essential› Measurement scope and business questions define data needs

› Identify sources• Internal Resources: Web, Finance, CRM, POS, etc.

• Paid Media: Paid Search, Display, Sponsored Posts, etc.

• Earned Media: Press Coverage, Social Amplification, etc.

• Adtech vendors

• Agency

› Set up processes, data feeds for future updates

› Clean and normalize data


Mix models span traditional and digital channels…

Mike Carpenter

5 chopped


Base: 71 marketing professionals

…and attribution models are beginning to as well

Mike Carpenter

5 chopped


“Get to the purest source of data you can. We found that we had to get rid of conventions such as how we defined a ‘new’ customer and go back to specific purchase dates. Data is the hardest part of the process and it isn’t sexy.”

Robert WellbornUSAA

Build the measurement model to align with business goals


There is science and art in models


Ensure business and technical alignment›Facilitate discussions between measurement experts and key stakeholders

›For sophisticated models, analytics team and data scientists confer on approaches

›Review early iterations with brand and finance stakeholders

Refine with optimization then repeat


Firms Fail To Fully Exploit Models’ Power

Mike Carpenter

6

Dallas Davidson

6

Dallas Davidson

Replace with more more generic measurement / analytics data


Marketers cite strong optimization resources

Mike Carpenter

9-1


Optimization processes aren’t well developed

Mike Carpenter

9-2

Getting started


1. Raise your analytics / measurement IQ

›Take your analytics colleagues to lunch!

›Become data literate – types, sources, metrics

›Build knowledge of common statistical techniques:• Descriptive: time series, regression• Predictive: Bayesian, neural networks• Prescriptive: Simulations


2. Measurement is a team sport. Who’s on your team? What position do they play?

Source: “Link Insights To Action With A Measurement-Driven Organization” Forrester report


3. Play the long game


4. Move the ball forward› Identify data sources, organize and clean data

›Look at all marketing data holistically

› Include measurement and analytics at the start of your process

›Adopt increasingly sophisticated measurement tools and approaches

forrester.com

Thank you

Jim Nail+1 [email protected]

Marketing was supposed to become easier to measure

Time

DataInsights

Time

Execution Gap

DataInsights

Source: 2016 Marketing Signals Survey Report

Key Challenge: Incomplete visibility of cross-channel data results in time-consuming, ineffective measurement

(1) Brand Activations

Website Display

TV Social

PrintPOSCRM

Print

PPC

OOH

Audience

(2) CustomerSignals

(3) Post-Mortem Reporting

Current State: Silos, fragmentation, and lengthy timelines between activation and insights define the marketer’s reality

Website Display

TV Social

PrintPOSCRM

Print

PPC

OOH

Audience

Brand Activations

CustomerSignals

Unified Measurement

Goal State: Continuous Measurement and Optimization

Current State to Goal State: Key outcomes of continuous measurement and optimization

1:Many, 1:1 1:nSignals (Moments)

Execution Silos Unified and cross-channel

10’s of signals Millions of signals

Post-Mortem Continuous iterations

Linear journeys Complex non-linear moments

Case Study

3/10 3/24 4/7 4/143/313/17

5+ weeks between execution to adjustment

Collect & Refine

Analyze & Present DiscussReporting Period

Collect & Refine

Analyze & PresentReporting Period

Reporting Period

Manual Reporting

3/10 3/24 4/7 4/143/313/17

<1 week between execution to adjustment

Real-Time Tracking

Review and adjustment sessions

Automated Measurement Using Origami

“ With Origami, we stopped asking ‘how did we do’… we could talk through what was happening in real time and move forward with the best course of action. ”Jessica Williams, Director Global Innovation Marketing

Paving your own path to measurement success…

Path to Maturity: Understand the whole before crediting the parts

When to use over time

Mat

urity

Req

uire

d

UNIFIED MEASUREMENT: Understand the whole • Implement multi-channel measurement and governance (collect, cleanse, categorize, structure, enhance, harmonize)• Harness multi-channel data to develop reporting and visualizations, understand marketing performance, and establish org-wide knowledge

necessary for testing, optimization, attribution and MMM• Conduct exploratory analyses

ATTRIBUTION AND MMM: Credit the parts• Understand pros/cons of each approach and employ the one(s) that best address the

questions that need answering • Leverage Origami to drill into deeper dimensions that MMM and Attribution cannot

provide (pre and post)

TESTING & OPTIMIZATION: Establish the baseline / determine lift • Conduct tests within (then across) channels to quantify baseline conversion• Test investment allocations and understand outputs before attempting Attribution or MMM• Leverage Origami to understand what’s occurring across channels and develop new hypotheses for testing

1

2

3

SILOED CHANNEL ANALYTICS: Establish measurement plan / understand data from individual channels• Implement measurement to assess individual channel performance (e.g., display media, PPC, web analytics, etc.) • Expand measurement to additional channels, leveraging tag management and data distribution utilities as needed• Understand data and performance for individual channels on a stand-alone basis (channels may or may not represent silos in your marketing organization)

0

Top brands on the path to marketing measurement leadership

Five steps for marketing measurement success

Step 1: Measure all signals, across all channels

Step 2: Monitor signals daily, at least

Step 3: Eliminate holes in visibility

Step 4: Ensure accurate analysis

Step 5: Act quickly

Download Now: www.origamilogic.com/five-steps

Q&Awww.origamilogic.com | [email protected]