Finding More Value in ROI Analysis
The best data is data your team can be confident in. No second-guessing, or doubting the outcome, but knowing. A recent study from Strala reports that only 11% of marketers feel very confident in the accuracy of their current attribution model. It also notes that 72% of marketers use last touch/click attribution and 46% of marketers measure channels in isolation. Beyond a lack of confidence that most marketers feel when it comes to their data, these numbers also show that marketers are not getting the most value from an ROI analysis with their current tactics.
So how can marketers find more value in their ROI analysis?
Establish a Measurement Analytics Strategy that matures alongside the marketing strategy as it is defined, not tacked on afterwards. Defining the business and media objectives — or KPI goals — is an important first step in order to know where dollars should be focused. At the end of the campaign, the overall goal is to see if those dollars were well spent. In order to accomplish that, measurement objectives must be able to be tracked; data must be available for the KPI goals set in place. Defining what gets measured — channels, tactics, metrics, etc — is essential, and it’s even more important to establish and plan these measurements ahead of time to ensure they actually happen. Planning ahead ensures consistent UTMs and taxonomy across media channels and websites.
Consolidate all data together, whether it is paid, organic, online, or offline data. With the right analytics strategy, Paid Media data will reveal how customers are interacting with different channels, how quickly they take an action (conversion), and how traditional media is playing a role during the consumer journey. For example, a good analytics strategy will be able to show how TV or Connected TV is driving the consumer’s intent to search for a brand through correlation statistical analyses. It is also possible to connect offline data with online data to track how digital media is helping to drive in-store traffic. This can be accomplished through a tracking website button (store locator, specific promo codes for each channel/tactic, or even based on location), utilizing a POS survey, online survey, and foot-traffic data. Mapping online and offline data will allow marketers to better understand the consumer journey and act on data in a more timely manner. Consolidating all data together, rather than limiting it to a first touch or last touch model, will allow marketers to evaluate ROI using custom attribution models. For example, a 30-40-30 model can see the impact of all touchpoints throughout the conversion journey.
Incorporating a Measurement Analytics Strategy and consolidating data in one place will enable marketers to achieve a holistic view of all their efforts, as well as equip them to grow their business in the right direction. Contact our RADaR team with any questions on how to get the most value out of an ROI analysis.