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Optimize your conversion with
engagement metrics and segmentation




Remco van der Beek
Senior Consultant

Relationship Marketing Congress, 7 May 2009
About Nedstat
• European leader web analytics services
• Founded in 1996
• Amsterdam, Antwerp, Frankfurt, London, Paris, Madrid
• 150 people
• 25% turnover invested in R & D
E-commerce in Belgium



  3500
  3000
                 3100
                         + 4 web shops every working day
  2500
  2000
         2100
  1500
  1000
  500
    0
          2007    2008


                                                           Source: BeCommerce
E-commerce in Belgium

• Quality of data & information systems

• Lack of customer knowledge

• Integration of marketing in the organisation

• Lack of quality measurement tools

• Lack of marketing skills
A-Z insights

Advertising    Entry   Behaviour   Action
campaigns
Web Scorecard
• Method based on Balanced Scorecard (Kaplan/Norton)
• Balanced performance overview of internet strategy / website
• Translates internet strategy to concrete goals and targets
• Enables continuous improvement proces: measure, analyse,
  improve
Web Scorecard dimensions



          Financial    Customer


                Internet
                strategy



         Website      Organisation
Dimension Financial


   Success factor            Indicator     Target

 Revenues              Turnover              ?

 Cost of acquisition   Cost per visitor      ?

 Cost of               Cost of resources     ?
 organisation
 Profitability         Profitability of      ?
                       campaigns
Web Scorecard
Continuous improvement process

         Reaction                                                      Reporting
Monitor visitor reaction to                                            Results vs goals
      each improvement




           Action                                                        Analysis
 Deploy and evaluate                                                     Data analysis to identify
      improvements                                                       items for improvement




                                         Decision
                              Rational decision on improvement items
Visitors are not the same

Visitor A                       Visitor B
• Types a keyword in a search   • Types a keyword in a search
 engine                          engine

• Clicks to your site           • Clicks to your site
• Leaves after 5 seconds        • Reads 5 information pages
                                • Subscribes to your newsletter
Web analytics today is about identifying your most valuable visitors
using engagement measures and segmented approaches
Measuring engagement

    OLD                NEW

    • Visitors         • Events
    • Visits           • Contributions

    • Pageviews        • Starts, stops
Measuring engagement

“Engagement is an estimate of the degree and depth of visitor
 interaction against a clearly defined set of goals.”



           (C1 + D1 + R1 + B1 + F1 + I1 + L1 + S1)
 VISITOR
Measuring engagement
Visitor Engagemetn            C1             R1            D1            L1             B1             F1            I1            S1


                     19.20%        57.80%         0.00%         6.70%         33.30%         51.10%         0.00%         4.40%          0.00%


                     26.80%        66.70%         0.00%         15.70%        50.00%         70.60%         0.00%         11.80%         0.00%


                     16.40%        47.30%         0.00%         24.30%         0.00%         39.20%         6.80%         13.50%         0.00%


                     24.00%        100.00%        0.00%         0.00%          0.00%         91.70%         0.00%         0.00%          0.00%


                     39.60%        80.50%         0.00%         2.40%         100.00%        97.60%         0.00%         26.20%         0.00%


                     29.10%        65.20%         0.00%         6.50%         100.00%        56.50%         0.00%         4.30%          0.00%


                     25.00%        50.00%         0.00%         33.30%         0.00%         83.30%         16.70%        16.70%         0.00%


                     16.30%        52.20%         0.00%         4.30%          0.00%         65.20%         0.00%         8.70%          0.00%


                     46.10%        50.90%         0.00%         25.50%        100.00%        66.70%         2.00%         17.60%        100.00%


                     32.90%        52.20%         8.30%         4.50%         100.00%        95.50%         0.00%         3.00%          0.00%


                     29.10%        75.50%         28.10%        3.80%         50.00%         73.60%         0.00%         1.90%          0.00%


                     17.20%        75.00%         0.00%         25.00%         0.00%         25.00%         0.00%         12.50%         0.00%


                     32.50%        76.70%         16.70%        17.90%        100.00%        66.70%         0.00%         10.30%         0.00%


                     44.60%        70.90%         0.00%         17.90%        100.00%        87.50%         0.00%         8.90%         100.00%


                     29.20%        77.80%         0.00%         44.40%         0.00%         55.60%         11.10%        44.40%         0.00%


                     28.10%        75.00%         0.00%         12.50%         0.00%         100.00%        0.00%         37.50%         0.00%


                     24.40%        48.10%         25.00%        18.50%         0.00%         92.60%         0.00%         11.10%         0.00%


                     26.90%        50.00%         25.00%        13.30%         0.00%         96.70%         0.00%         30.00%         0.00%


                     10.70%        35.70%         0.00%         21.40%         0.00%          7.10%         0.00%         21.40%         0.00%


                     12.50%        50.00%         0.00%         0.00%          0.00%          0.00%         0.00%         50.00%         0.00%


                     24.80%        28.10%         25.00%        15.60%        100.00%        23.40%         0.00%         6.30%          0.00%
Deploying segmentation

Defining visitor groups based on common characteristics or behaviour
Neckermann.com

• Leading home shopping company
• BeCommerce awards
• Netherlands and Belgium
• 700 employees
• EUR 226 mio turnover
Neckermann.com

• Big shift from offline to online in 2006
• Sitestat deployment in 2008
• Online turnover 2008: +14%
Neckermann.com

• Measuring engagement
• Navigation design
• Order process analysis
• Identifying cross-sell opportunities with segmentation
Order funnel analysis

• 20% improvement
• Funnel continuation 89,9%   91,1%

• ± 300 K / year
Internal search conversion
Visitors who bought this item, searched for   ?
Visitors who bought this item, also searched for these items
Visitors who searched for this item, also searched for these items
Visitors who searched for this item, bought these items
Segmentation advantages


• Instant focus on behaviour of specific visitor groups
• Better respond to visitor preferences
• Advanced targeting of campaigns and content
Segmentation with visitor data
Segmentation via mobile
Optimise any conversion process

• Order process
• Lead generation
• Newsletter subscription
• Subscription to RSS feeds & podcasts
• Content downloads
• Any kind of form
•
using engagement and segmentation metrics

• SEO keywords
• SEA keywords
• Email newsletters / promotions
• Bannering
• Navigation paths
• Internal search
• Visitors with a specific profile
Conversion dashboard
Questions?


Remco van der Beek
Mobile: 0479 / 98.12.25
E-mail: r.van.der.beek@nedstat.be

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Optimize your conversation with engagement metrics and segmentation

  • 1. Optimize your conversion with engagement metrics and segmentation Remco van der Beek Senior Consultant Relationship Marketing Congress, 7 May 2009
  • 2. About Nedstat • European leader web analytics services • Founded in 1996 • Amsterdam, Antwerp, Frankfurt, London, Paris, Madrid • 150 people • 25% turnover invested in R & D
  • 3. E-commerce in Belgium 3500 3000 3100 + 4 web shops every working day 2500 2000 2100 1500 1000 500 0 2007 2008 Source: BeCommerce
  • 4. E-commerce in Belgium • Quality of data & information systems • Lack of customer knowledge • Integration of marketing in the organisation • Lack of quality measurement tools • Lack of marketing skills
  • 5. A-Z insights Advertising Entry Behaviour Action campaigns
  • 6. Web Scorecard • Method based on Balanced Scorecard (Kaplan/Norton) • Balanced performance overview of internet strategy / website • Translates internet strategy to concrete goals and targets • Enables continuous improvement proces: measure, analyse, improve
  • 7. Web Scorecard dimensions Financial Customer Internet strategy Website Organisation
  • 8. Dimension Financial Success factor Indicator Target Revenues Turnover ? Cost of acquisition Cost per visitor ? Cost of Cost of resources ? organisation Profitability Profitability of ? campaigns
  • 10. Continuous improvement process Reaction Reporting Monitor visitor reaction to Results vs goals each improvement Action Analysis Deploy and evaluate Data analysis to identify improvements items for improvement Decision Rational decision on improvement items
  • 11. Visitors are not the same Visitor A Visitor B • Types a keyword in a search • Types a keyword in a search engine engine • Clicks to your site • Clicks to your site • Leaves after 5 seconds • Reads 5 information pages • Subscribes to your newsletter
  • 12. Web analytics today is about identifying your most valuable visitors using engagement measures and segmented approaches
  • 13. Measuring engagement OLD NEW • Visitors • Events • Visits • Contributions • Pageviews • Starts, stops
  • 14. Measuring engagement “Engagement is an estimate of the degree and depth of visitor interaction against a clearly defined set of goals.” (C1 + D1 + R1 + B1 + F1 + I1 + L1 + S1) VISITOR
  • 15. Measuring engagement Visitor Engagemetn C1 R1 D1 L1 B1 F1 I1 S1 19.20% 57.80% 0.00% 6.70% 33.30% 51.10% 0.00% 4.40% 0.00% 26.80% 66.70% 0.00% 15.70% 50.00% 70.60% 0.00% 11.80% 0.00% 16.40% 47.30% 0.00% 24.30% 0.00% 39.20% 6.80% 13.50% 0.00% 24.00% 100.00% 0.00% 0.00% 0.00% 91.70% 0.00% 0.00% 0.00% 39.60% 80.50% 0.00% 2.40% 100.00% 97.60% 0.00% 26.20% 0.00% 29.10% 65.20% 0.00% 6.50% 100.00% 56.50% 0.00% 4.30% 0.00% 25.00% 50.00% 0.00% 33.30% 0.00% 83.30% 16.70% 16.70% 0.00% 16.30% 52.20% 0.00% 4.30% 0.00% 65.20% 0.00% 8.70% 0.00% 46.10% 50.90% 0.00% 25.50% 100.00% 66.70% 2.00% 17.60% 100.00% 32.90% 52.20% 8.30% 4.50% 100.00% 95.50% 0.00% 3.00% 0.00% 29.10% 75.50% 28.10% 3.80% 50.00% 73.60% 0.00% 1.90% 0.00% 17.20% 75.00% 0.00% 25.00% 0.00% 25.00% 0.00% 12.50% 0.00% 32.50% 76.70% 16.70% 17.90% 100.00% 66.70% 0.00% 10.30% 0.00% 44.60% 70.90% 0.00% 17.90% 100.00% 87.50% 0.00% 8.90% 100.00% 29.20% 77.80% 0.00% 44.40% 0.00% 55.60% 11.10% 44.40% 0.00% 28.10% 75.00% 0.00% 12.50% 0.00% 100.00% 0.00% 37.50% 0.00% 24.40% 48.10% 25.00% 18.50% 0.00% 92.60% 0.00% 11.10% 0.00% 26.90% 50.00% 25.00% 13.30% 0.00% 96.70% 0.00% 30.00% 0.00% 10.70% 35.70% 0.00% 21.40% 0.00% 7.10% 0.00% 21.40% 0.00% 12.50% 50.00% 0.00% 0.00% 0.00% 0.00% 0.00% 50.00% 0.00% 24.80% 28.10% 25.00% 15.60% 100.00% 23.40% 0.00% 6.30% 0.00%
  • 16. Deploying segmentation Defining visitor groups based on common characteristics or behaviour
  • 17. Neckermann.com • Leading home shopping company • BeCommerce awards • Netherlands and Belgium • 700 employees • EUR 226 mio turnover
  • 18. Neckermann.com • Big shift from offline to online in 2006 • Sitestat deployment in 2008 • Online turnover 2008: +14%
  • 19. Neckermann.com • Measuring engagement • Navigation design • Order process analysis • Identifying cross-sell opportunities with segmentation
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  • 33. Order funnel analysis • 20% improvement • Funnel continuation 89,9% 91,1% • ± 300 K / year
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  • 37. Visitors who bought this item, searched for ?
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  • 39. Visitors who bought this item, also searched for these items
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  • 41. Visitors who searched for this item, also searched for these items
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  • 43. Visitors who searched for this item, bought these items
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  • 46. Segmentation advantages • Instant focus on behaviour of specific visitor groups • Better respond to visitor preferences • Advanced targeting of campaigns and content
  • 49. Optimise any conversion process • Order process • Lead generation • Newsletter subscription • Subscription to RSS feeds & podcasts • Content downloads • Any kind of form •
  • 50. using engagement and segmentation metrics • SEO keywords • SEA keywords • Email newsletters / promotions • Bannering • Navigation paths • Internal search • Visitors with a specific profile
  • 52. Questions? Remco van der Beek Mobile: 0479 / 98.12.25 E-mail: r.van.der.beek@nedstat.be