ROI

Agile Marketing Must Haves

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It’s difficult to find a development team that hasn’t embraced the agile method—an iterative approach to software design focused on smaller projects, shorter cycle times and lots of testing and learning. The fundamental assumption of the agile method is that project requirements change on a daily basis so being nimble matters. The old waterfall method of gathering requirements, designing, writing code, testing and releasing looks cumbersome, slow, and outdated by comparison. Not to mention more expensive and less effective.

Yet time and again, when technology-driven companies go to market, they often fail to translate their highly effective agile mindset to their marketing practice. Oddly enough, when it comes to marketing, they tend to over-think. As if they have one chance and one chance only to get it right. Their marketing practice becomes slow and cumbersome, more expensive than they’d like, and the results disappoint.

A Brief History of Optimization

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The practice of marketing optimization is founded upon a number of disciplines - some old, some new, and some emerging. Like marketing optimization, many of its foundation disciplines are sciences that have historically been developed to reduce risk while maximizing the chances for success.

Whether 'success' is winning at cards, winning a war or maximizing conversion in a PPC campaign, 'optimization' put simply is the practice of finding optimal methods for driving objectives. Probability theory, management science, statistics, economic theory, experimental design and technology all converge in marketing optimization to provide marketers with the tools and processes for finding optimal methods for executing the marketing function such that risk is reduced and the chances of success are maximized.

Social Media ROI in Product Innovation

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A wonderful illustration of social media ROI in AdAge. Something marketers have needed - not just the tools, but the process and the objectives needed to derive value from the crowd.

Surfing Social Media

surfing social mediaBack when Zuckerberg was a but a tween and Twitter was yet a twinkle in anyone’s eye, the customer of a multivariate testing SaaS vendor ran an interesting promotional test: 20% off any purchase against buy one refrigerator and get another free. To everyone’s surprise, refrigerators flew out the door. Turns out, the Joneses found out about the deal and told the Smiths who came in on it with them. Each family went home with a half price fridge.

What a testament to the power of testing, we all said. Who knew you could move such a large item with such a promotion? What we all thought we learned was that you never know what you don’t know. And you’ll never know unless you test.

Data: The New Black

data-driven marketingThe NYT makes data-driven marketing look like the hottest new trend. The article title, Put Ad on Web. Count Clicks. Revise. puts to mind one of the first pieces of marketing copy I worked on for an optimization SaaS provider several years ago: Test. Adapt. Repeat. or somesuch was our pithy copy describing what we helped marketers to do.

Love the piece’s Wall Street meets Madison Avenue description of the future of data-driven marketing. Perhaps we geeks who get giddy over data will soon have our time in the limelight!

Customer Experience Optimization: Technology + Metrics + Culture

customer experience optimization While the Industrial Revolution ushered in the era of the celebration of product, the Digital Revolution now celebrates the consumer.

Because today's consumers initiate and control the conversation, the sooner marketers shift from a product to a customer experience focus, the sooner they will reap the benefits of adapting properly to the changing marketplace.

More than ever, today's marketers are increasingly interested in building optimal customer experiences that drive long-term profitable relationships than they are in driving revenue from widget sales. As they should be. In the age of the empowered consumer, marketing optimization is quickly becoming a function of managing the customer experience.

Shifting from product to customer experience marketing indeed seems a daunting task for enterprises with multiple lines of business operating across multiple channels. Exactly how is it done? Where do we begin?

The Elusive Social Media Marketing ROI

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The latest Ad Age article attempting to define social media marketing ROI drew a lot of negative remarks, most of which were all about hair splitting on the ROI calculation.

Only one commenter rightly points out that none of this really matters if you don't measure customer lifetime value. Couldn't agree more.

MVT in the NYT

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I love catching clips about the Internet marketing arena in mainstream media. Last week's Economist had a few encouraging words on the current state and future of online advertising. And this a few days ago from the NYT on Internet marketing -- a fascinating description of multivariate testing and optimization without ever mentioning the words multivariate testing or optimization.

Optimization

Marketing Optimization

In a phrase, marketing optimization is the practice of simultaneously maximizing customer lifetime value, and minimizing costs per acquired and retained customer.

Setting objectives around hard metrics like revenue and cost, marketing optimization is a highly accountable, data-driven discipline. With the infrastructure to properly define, track, measure, test and analyze the interactions with your customers in-market, we can expect returns for our optimization efforts in the following ways:

  • Increased customer acquisition and retention rates
  • Reduced customer acquisition and retention costs
  • Increased customer life time value

To learn more about how Site might can help you optimize your marketing practice,
download our >> free white paper: Integrated Marketing Optimization

Search Engine Marketing ROI: Real-World Examples

If you haven't put a critical eye to your search efforts, a little attention will go a long way. Unoptimized search traffic is often a marketer's lowest hanging fruit. Here's an example of the ROI from a recent in-market paid search campaign:

    • Keyword and benefits-driven ad copy was introduced and CTR increased 73%
    • CPC was increased to achieve better ad positioning and drive more qualified traffic
    • Keyword groups were expanded and campaigns more tightly consolidated and overall spend was reduced by 14.9%
    • Unique, keyword-driven landing pages and a tighter, more controlled registration flow were introduced and conversion rose by 54.5%
    • During the 3 month period, paid search cost per conversion decreased by 15.82%

SITE-SIDE ACQUISITION

Same thing goes for optimizing your website with a value-driven messaging framework that corresponds to your search campaign. Impressive results from a recent on-site ad campaign:

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