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Metrics to Understand Today’s Consumer Dave Lewan VP, Public Sector and Sales Operations ForeSee
Today’s Consumer
The web has given today’s consumer  new powers… The Super Consumer
The Super Consumer Stronger Voices Consumers can share opinions further and wider – as fast as they can type and hit send
The Super Consumer Powerful Hearing Consumers can seek out and absorb as many recommendations or negative comments as they want
The Super Consumer Great Knowledge Consumers have access to information and greater knowledge than ever before
The Super Consumer Ability to Clone Consumers can be in multiple places at the same time
A New Order  The consumer is in charge ,[object Object]
   More channels
   More competitiveness –     lower barriers to enter
   Lower switching costs,[object Object]
Why Satisfaction? Experience and Expectations defineSatisfaction  Satisfaction determines what consumers do next What consumers do drives financial success
You cannot manage what you do not measure Can you improve  if you don’t measure ? What you measure willdetermine what you do How Do We Manage It ?
Today’s Consumer is a Multi-Channel User
Today’s Consumer is a Multi-Channel User Traditional Single  Channel Metrics + A Multi-Channel User
Today’s Consumer is a Multi-Channel User + = A Multi-Channel Consumer Misinterpreted Metrics and Misguided Information Traditional Single  Channel  Metrics
Social Media  A typical scenario… “I just bought an awesome Panasonic 3D TV at Best Buy – on sale!” Follow the bouncing ball:  Social Media
I’m Going to Check it Out Panasonic 3D TV Best Buy Follow the bouncing ball:  Social MediaSearch
I Have Options Panasonic 3D TV Best Buy Follow the bouncing ball:  Social MediaSearch
This Must be the One Panasonic 3D TV Best Buy Follow the bouncing ball:  Social MediaSearchSEM
I’m on the Website Follow the bouncing ball:  Social MediaSearchSEMSite
Why Did He Come to Our Site? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network
Hmmm…Package Options
This Looks Like a Good Option
Distracted!  Abandoned Shopping Cart Follow the bouncing ball:  Social MediaSearchSEMSiteAbandon Site
What Happened to Our Visitor? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network Item added to cart, different from recommendation Cart abandoned
Meanwhile… Follow the bouncing ball:  Social MediaSearchSEMSiteAbandonSiteGo to Store
While at the Store I Search for a Lower Price Follow the bouncing ball:  Social MediaSearchSEMSiteAbandonSiteGo to StoreCheck the App for Lower Prices
I Buy the TV Package in the Store Follow the bouncing ball:  Social MediaSearchSEMSiteAbandonSiteGo to StoreCheck the App for Lower PricesPurchase my New TV
Enjoying my New TV! Follow the bouncing ball:  Social MediaSearchSEMSiteAbandonSiteGo to StoreCheck the App for Lower PricesPurchase my New TVEnjoy!
What does this Tell Us? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network Item added to cart, different from recommendation Cart abandoned Visits Store Uses App and does not purchase Purchases in Store
What’s Wrong with our Analysis? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network Item added to cart, different from recommendation Cart abandoned Visits Store Uses App and does not purchase Purchases in Store
Was this a Good or Bad Customer Experience? Social Experience Search Experience Web Experience Store Experience Mobile Experience     Was The Customer Satisfied ? Behavioral metrics don’t tell us Single channel metrics don’t tell us
Behavior  ≠ Success  Engagement ≠ Success How do we define success ?
Don’t just measure success through the eyes of the organization. Return on Assets # of visits geographic data conversion rates % of repeat orders sales per visitor referring urls bounce rate keywords Customer Acquisition Costs Inventory Turns average time on site cost-per-click % of new orders # of new visitors page views customer lifetime value lead generation
Also measure success through the eyes of your customers
Success = Satisfaction
Managing Forward Measure what drives satisfaction  at the experience/transaction level Measure overall Customer Satisfaction
Social Media Value Calculation Benchmark 250 sites and 350,000+ consumers 1% of site visitors came directly from a social media site (referring URL) 19% were influenced by social media Source: ForeSee Results Social Media Value Calculation Benchmark
About ForeSee Customer experience analytics organization that applies science & technology to the measurement & analysis of customer satisfaction Founded in 2001 Privately held Ann Arbor, Michigan Financially stable with positive cash flow since 2005 Growth in every quarter  Heritage of innovation and scientific rigor  Patented technology  American Customer Satisfaction Index University of Michigan
ForeSee Helps You Apply science to continuous voice of customer measurement   Measure satisfaction and drivers of satisfaction and impact on future behaviors   Profile personas and intents of your customers   Diagnose strengths, weaknesses, and opportunities   Predict impact of change on satisfaction and behavior; prioritize improvements    Provide actionable insights   Compare against peers, competitors, best-in-class, yourself over time

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September 2011 - Marketing Roundtable - David Lewan

  • 1. Metrics to Understand Today’s Consumer Dave Lewan VP, Public Sector and Sales Operations ForeSee
  • 3. The web has given today’s consumer new powers… The Super Consumer
  • 4. The Super Consumer Stronger Voices Consumers can share opinions further and wider – as fast as they can type and hit send
  • 5. The Super Consumer Powerful Hearing Consumers can seek out and absorb as many recommendations or negative comments as they want
  • 6. The Super Consumer Great Knowledge Consumers have access to information and greater knowledge than ever before
  • 7. The Super Consumer Ability to Clone Consumers can be in multiple places at the same time
  • 8.
  • 9. More channels
  • 10. More competitiveness – lower barriers to enter
  • 11.
  • 12. Why Satisfaction? Experience and Expectations defineSatisfaction Satisfaction determines what consumers do next What consumers do drives financial success
  • 13. You cannot manage what you do not measure Can you improve if you don’t measure ? What you measure willdetermine what you do How Do We Manage It ?
  • 14. Today’s Consumer is a Multi-Channel User
  • 15. Today’s Consumer is a Multi-Channel User Traditional Single Channel Metrics + A Multi-Channel User
  • 16. Today’s Consumer is a Multi-Channel User + = A Multi-Channel Consumer Misinterpreted Metrics and Misguided Information Traditional Single Channel Metrics
  • 17. Social Media A typical scenario… “I just bought an awesome Panasonic 3D TV at Best Buy – on sale!” Follow the bouncing ball: Social Media
  • 18. I’m Going to Check it Out Panasonic 3D TV Best Buy Follow the bouncing ball: Social MediaSearch
  • 19. I Have Options Panasonic 3D TV Best Buy Follow the bouncing ball: Social MediaSearch
  • 20. This Must be the One Panasonic 3D TV Best Buy Follow the bouncing ball: Social MediaSearchSEM
  • 21. I’m on the Website Follow the bouncing ball: Social MediaSearchSEMSite
  • 22. Why Did He Come to Our Site? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network
  • 24. This Looks Like a Good Option
  • 25. Distracted! Abandoned Shopping Cart Follow the bouncing ball: Social MediaSearchSEMSiteAbandon Site
  • 26. What Happened to Our Visitor? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network Item added to cart, different from recommendation Cart abandoned
  • 27. Meanwhile… Follow the bouncing ball: Social MediaSearchSEMSiteAbandonSiteGo to Store
  • 28. While at the Store I Search for a Lower Price Follow the bouncing ball: Social MediaSearchSEMSiteAbandonSiteGo to StoreCheck the App for Lower Prices
  • 29. I Buy the TV Package in the Store Follow the bouncing ball: Social MediaSearchSEMSiteAbandonSiteGo to StoreCheck the App for Lower PricesPurchase my New TV
  • 30. Enjoying my New TV! Follow the bouncing ball: Social MediaSearchSEMSiteAbandonSiteGo to StoreCheck the App for Lower PricesPurchase my New TVEnjoy!
  • 31. What does this Tell Us? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network Item added to cart, different from recommendation Cart abandoned Visits Store Uses App and does not purchase Purchases in Store
  • 32. What’s Wrong with our Analysis? Analysis Visitor came through AdWord program Visitor came because of a recommendation from a friend on a social network Item added to cart, different from recommendation Cart abandoned Visits Store Uses App and does not purchase Purchases in Store
  • 33. Was this a Good or Bad Customer Experience? Social Experience Search Experience Web Experience Store Experience Mobile Experience Was The Customer Satisfied ? Behavioral metrics don’t tell us Single channel metrics don’t tell us
  • 34. Behavior ≠ Success Engagement ≠ Success How do we define success ?
  • 35. Don’t just measure success through the eyes of the organization. Return on Assets # of visits geographic data conversion rates % of repeat orders sales per visitor referring urls bounce rate keywords Customer Acquisition Costs Inventory Turns average time on site cost-per-click % of new orders # of new visitors page views customer lifetime value lead generation
  • 36. Also measure success through the eyes of your customers
  • 38. Managing Forward Measure what drives satisfaction at the experience/transaction level Measure overall Customer Satisfaction
  • 39. Social Media Value Calculation Benchmark 250 sites and 350,000+ consumers 1% of site visitors came directly from a social media site (referring URL) 19% were influenced by social media Source: ForeSee Results Social Media Value Calculation Benchmark
  • 40. About ForeSee Customer experience analytics organization that applies science & technology to the measurement & analysis of customer satisfaction Founded in 2001 Privately held Ann Arbor, Michigan Financially stable with positive cash flow since 2005 Growth in every quarter Heritage of innovation and scientific rigor Patented technology American Customer Satisfaction Index University of Michigan
  • 41. ForeSee Helps You Apply science to continuous voice of customer measurement Measure satisfaction and drivers of satisfaction and impact on future behaviors Profile personas and intents of your customers Diagnose strengths, weaknesses, and opportunities Predict impact of change on satisfaction and behavior; prioritize improvements Provide actionable insights Compare against peers, competitors, best-in-class, yourself over time
  • 42. Top 5 Takeaways You cannot manage what you do not measure The consumer is multi-channel with unprecedented power Measure success from the customers’ perspective – not the organization’s Customer satisfaction drives conversion, loyalty, retention and word-of-mouth … and financial success To be successful you must do 2 things: satisfy your customer and be fiscally responsible
  • 43. Thank you Dave Lewan VP, Public Sector and Sales Operations 734.327.3848 Dave.Lewan@ForeSee.com Twitter: @davelewan www.ForeSee.com