Attributing revenue to online advertising - from click to lease. A presentation by Ted Stites, Vce President of Consulting at Numeric Analytics to the Apartment Internet Marketing Conference 2010 - aimconf.com.
1. AIM 2010 Revenue Attribution Ted Stites Vice President of Consulting
2. Objective The purpose of this discussion is to identify the challenges, required data elements and components in answering the question; What is Working?, with Revenue Attribution.
8. Seems like a simple question, but can have some complex answers.
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10. 6 When & How is Hyper-Complex email Vending Agent @ Web Viral IVR Lower Touch Automated Interaction Transaction Ease Agnostic Customers Low Switching Costs Gaming Retail + Social Network Mail / Statements Casts & Txt TV / Mass ATM Mobile Cable
11. 7 When & How is Hyper-Complex Issue / Need More Pay / Assess Value Balance Cost & Ease See Value Commit Need Agent TV/Mass Retail Retail Retail The Baby Boomer Touch Factor Social Network Web ePay Viral Casts & Txt The Millennial Content Factor
12. Keys to Success Engage in cross-channel measurement and analytics Identify high-value segments Deliver targeted offers 2.5X higher revenue growth rates 5Xhigher customer conversion growth rates 3X higher customer profitability growth rates 1“Cross-Channel Campaign Management: Next Generation Multichannel Marketing”Aberdeen Group, October 2008
13. Yeah… we are doing that "Never confuse motion with action.“ ~ Benjamin Franklin
27. Advertisements SEO SEM ILS Craigslist TV Print Radio Billboard Responses Phone Click-Through Email Walk - In Lead Left Site Website Mobile Onsite Lease $
28. The Right Data What data elements should I consider when building a revenue attribution model?
29. Advertisements Data Elements SEO SEM Channels Touch Order Granularity Responses Phone Click-Through Lead Left Site Website Onsite Lease $
30. Advertisements SEO SEM Responses Data Elements Phone Click-Through Length of Time Lead Left Site Website Onsite Lease $
31. Advertisements SEO SEM Responses Phone Click-Through Lead Left Site Website Onsite Data Elements Lease $ Date of Allocation
33. Advertisements SEO SEM ILS Craigslist TV Print Radio Billboard Ad Serving & Tracking Responses Phone Click-Through Email Walk - In Analytics Lead Website Mobile Onsite Lead Management Guest Card Lease Lease Property Management
43. Cross Functional Expertise What skills do you predict will be most critical to your marketing organization over the next five years? 1st Choice 2nd Choice 3rd Choice *Top 3 Responses Source: “Next-Generation Marketing and Measurement,” a commissioned study conducted by Forrester Consulting on behalf of Omniture, June 2009
47. Conversion by Channel What responses, leads, and leases did each channel produce? Craigs Email ILS Walk-In SEM Phone What percent of people are researching via multiple channels? 1500 1687 5897 3452 5421 4158 How many channels are they visiting and how long are they researching? Prior Research No Research 255 207 1534 750 1765 962 What channel did they visit prior to the converting channel? Visited > 1 50% Visited > 3 30% Average Research 66 day 358 512 448 525 67 74 Rent.com 18% RentCarmel.com 26% Apartments.com 32% CraigsList 14% Other 10%
48. Responses by Type How did people respond to us? Leases How many times are we touching them before converting? What is the average times we touch a customer? Touches > 1 40% Touches > 3 35% Average Touches 2.5 One Touch More than 2
49. Cost Per Lease What is the Cost per Lease of each Channel? What is our average CPL & at what rate are we converting them? What is our CPL trending up over the recent weeks? Average Cost Per Lease $1,900 Lead Lease Rate 28%
51. How else? Damage Deposits # of Applications vs. # of Approvals Its more than revenue attribution, it also becomes Customer Experience
52. Progression Different Models Establish the foundation to connect the dots Start Simple and add to it based on learning's
53. 1500 1000 500 0 -500 -1000 -1500 -2000 1 2 3 4 12 13 36 37 38 39 40 41 Customer Lifecycle Framework By managing the Customer Lifecycle indicated a company can increase lifetime value and consequently EBITDA by up to 20%*. Up Sell Market Acquire Fulfill Serve Up sell Cash and Costto Serve Maintain Maintain Bad Debt/Churn Churn Market Deposits Acquisition Cumulative Customer Lifetime Value In Dollars RenewalPromos Customer Care Costs Fulfill Months of Life Revenues Costs *McKinsey
54. How do you leverage segmentation? Relative Customer Value Valuable-Low Touch Customers Valuable-High Touch Customers Retain Develop an understanding of which customers to focus retention efforts High Revenue Most Profitable Grow Average Customers High Touch Customers Low Create initiatives designed to migrate low revenue customers toward being valuable customers Least Profitable High Low Cost to Serve