Analytics, Dictionary

Dictionary of Marketing Questions

Creating Content for Your Marketing Funnel

funnel and attributed marketing behavior

For each stage of the funnel, you’ll need to answer the following questions:

  • How will customers at this stage find me?
  • What kind of information do I need to provide to help them move from one stage to the next?
  • How will I know if they have moved from one stage to another?

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In Awareness stage, keeping track of lead* analysis metrics (include program investment, percent of new names, total successes, total targets, investment per target, and average demographic score), answer the following three questions:

  1. Which programs bring in targets or leads most cost-effectively?
  2. Where are we exhausting our lists?
  3. Which programs are bringing in the highly qualified leads?

*”lead” in this context means “leading” as in “leading or lagging indicators” and not “lead”as in “lead nurturing”


Customer Response Models

  • Are you assessing customer response models for statistical as well as business validity?
  • Are you applying ““haircut method”?
    • A naïve application of an incrementality percentage derived from market-level models indiscriminately to all customer histories will bias attribution substantially. In these methodologies, highly effective digital marketing treatments will be penalized while ineffective ones will be favored. As a result, differentiation will be dampened and reallocation opportunities might be squandered.

Marketing Allocation

  • What econometric methods have you applied (as such log-log multi-regression models, Bayesian approaches, diffusion models) to identify causal relationshipsbetween outcome (e.g., consumer purchase funnel and sales) and marketing and other business drivers based on observed behaviors?
    • Traditional mix models, test/control experiments and judgmental attribution methods are not comprehensive enough to provide timely and credible answers to questions regarding marketing allocations, impact and trade-offs.
  • What were your hypotheses on the expectation of the direction of impact; the magnitude of the impact; and the lag between the cause and effect?
  • How did you identify and test the impact of intermediate outcomes (as organic search queries, own-site web traffic, online video viewing, social media exposure, brand awareness, etc) have on marketing tactics?
  • What control variables did you take into account?
    • To account for external factors that are impacting customers such as economy, competitive landscape, and seasonality

Statistical Analysis

General Statistics Questions

Today people have to deal with up to terabytes of data and have to make sense of it and glean the important patterns from it.  Statistics can help greatly in this process by helping to answer several important questions about your data:

  • What patterns are there in my database?
  • What is the chance that an event will occur?
  • Which patterns are significant?
  • What is a high level summary of the data that gives me some idea of what is contained in my database?

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p-value

Besides p-value, what statistical test have you conducted to ensure your hypothesis is correct?

  • One of the most important messages is that the p-value cannot tell you if your hypothesis is correct. Instead, it’s the probability of your data given your hypothesis.
  • A common misconception among nonstatisticians is that p-values can tell you the probability that a result occurred by chance. This interpretation is dead wrong
  • Nor can a p-value tell you the size of an effect, the strength of the evidence or the importance of a result.

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marketing, Uncategorized

Definition of Marketing

As legendary coach Lombardi pointed out, excellent (presumably being the best one can be) requires reinforcement and utmost ability to execute the fundamentals. Below are outline of the fundamental concepts of marketing. The key element of this blog is not to all-encompassing inventory of marketing terms but highlight of the simple concepts that we all use. With the new data and technology, the businesses realized that customer have not separate marketing from the product—it is the product.

 

Definition

The introduction and selling of your company’s products and services to past, present and prospective customers by first optimizing and leveraging all of your company’s marketing assets[i].

 Function of Marketing

Marketing is the company[ii].

 Non-Marketing Functions

All non-marketing functions of any business are subservient to marketing and innovation, paraphrasing Drucker. Analytics is tracking (including using description, predictive, and prescribed method) the firm’s hints of its relationship with past, present, or potential customer irregardless if purchase took place. [iii]

Marketing assets[iv]

Past customers, current customers, marque customer (ex, turning them into a celebrity), testimonials, salespeople, company’s advertising (ex logo, tag line), referral programs, current sales and marketing processes, location, reputation, time in business, relationships with other businesses, E-books, guides and handbooks, apps, studies, cheat sheet, videos, mix media posts, employees, suppliers, company’s culture, brochures, blogs, corporate website, social media sites, SEO.

Two phases of Marketing

There are two phases of marketing requiring different approaches. The first is getting attention in the marketplace of your offering. The channels of engagement include advertising, tradeshows, web marketing, direct mail, salespeople prospecting, etc. Real marketing begins when a prospect expresses interest in the product or service. They enter into the gravitational pull of the company. Just like in any team, the strength is measured by the weakest link. Most companies, at this stage, lose their customers because of the internal inefficiency to create, nurture, sustain, and elongate relationship.

How to Increase Sales or Profits

Anywhere and anyway, there are only three ways sales or profits can be achieved. There are no other ways

  1. Increase the number of prospective customers contacted or inquiring
  2. Increase the conversion rate of prospective customers to buying customers
  3. Increase the value of worth of each customer

USP

A succinct description of what you company can do better than anyone else[v].

 

 

[i] Dawn Marketer, March 1, 2016

[ii] See Peter Drucker, McKinsey Quarterly

[iii] There are three analytics concepts – data, information, knowledge. Data can never be wrong, information can, and knowledge is built upon the use of the other two. The reports, spreadsheets, databases, etc is information. As such, information is never conclusive, always has assumptions, and is limited. Analytics methods are means of finding hints in the data that a hypothesis is not wrong with current set of available information and knowledge.

[iv] Dawn Marketer, March 1, 2016, Eric Murphy, June 10, 2014, Stanford Smith, Inc Magazine

[v] USP can very within the company depending on the revenue source. A quick paper from Bain that explains why USP is still relevant in today’s crossover market. Although they do not use the words, they do state that the first step is create “propositions that take into account the product features, the brand and a customer’s experience with the company”

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Analytics

Activity, Output, and Outcome: What Is the Difference?

Measuring progress is not a way to find criticism or define business success. Business success is realization of the vision for your customers through your business. Any measuring framework is designed to advise on the health of the actions, processes, and the overall business. It is not the cure or medication. For example in healthcare industry, all of the modern technology is geared to produce the same result that doctors in prior centuries did – prescribed the right drug so the patient lives and/or has a better quality of life. Measuring anything is to find if your hypothesis on realizing the vision is on track or needs modifications. Execution is the medicine but it has to prescribed correctly.

Activity & Output

When measuring, just like in writing a resume, you should concentrate on the outcomes not activity or output. Concentrate on the outcomes you really want. The classic business thought is “activities are basic units of competitive advantage. Overall advantage or disadvantage results from all company’s activities, not only a few” (Michael Porter, Harvard Business Review, Nov-Dec 1996, Website). Analysis paralysis could set in if a business owner creates KPIs for every activity. As my coach told me, any measurement should be a few but distinct. I should not use measures like a drunk men using lamp post – for support not illumination. Here is an example of improper measurements from Anthony Iannarino (thesalesblog.com, 2012, Website) :

Sales managers should have no interest in requiring or measuring the number of cold calls a salesperson makes. It’s irrelevant. The measurement of calls is only useful in determining whether a new salesperson has an efficiency problem (like too little activity) or an effectiveness problem (like the need for more training). But beyond that, the raw number of calls tells you nothing about how the salesperson is doing. The calls are activity, not outcomes. A salesperson can succeed at making the number of required calls and still not succeed in their job.

As a leader, you should also look for the distinction between output and outcomes. Outcomes are the difference made by the outputs (Deborah Mills-Scofield, HBR.com, 2012, Website). Output includes revenue and profit. I would classify the unique selling proposition as an output. Every business should be judged not by its answers but by its question. The output or “the what” of firm should be seen in the context of “the big WHY” – the relationships and the consistent user experience maintained over time.

Outcome

Outcome measures the change that has occurred as the result of your product or service. The underlying assumption of all marketing strategy is the willingness of consumer to pay for the goods. From my experience, a customer need to build a sense of safety with a product or information before they can have trust in the company. Below is a list of suggested questions you should be able to answer with your outcome

  • Are the outcomes related to the “core business” of your organization or program?
  • Is it within your control to influence these outcomes?
  • Are your outcomes realistic and attainable? Are your outcomes achievable within funding and reporting periods?
  • Have you moved beyond client satisfaction in your outcomes?
  • Is there a logical sequence among your short-term, intermediate, and long-term outcomes?
  • Are there any big “leaps” in your outcomes, i.e., gaps in the progression of impacts?

(Strengtheningnonprofits)

Generally speaking, there are five different types of outcome you can adopt – financial (for the clients), behavioral, attitudinal (ex. Express delight with the new product), technical (ex. faster page load), and experiential (ex. customers receive more consistent and accurate information when they need it) (inspired from Jill Purse, ThoughtFarmer, 2014, Website).

Review of Definitions

  • Activity – Any activity that is engaged in for the primary purpose of making a profit.
    • Note: Managing activity is a morale killer (Jim Keenan, asalesguy.com, 2012, Website)
  • Output – The direct and measurable products of a program’s activities or services, often expressed in terms of units (hours, number of people or completed actions); typically designated as the accomplishment or product of the activity (University of Wisconsin-Extention)); enables business to find outcomes: important products, services, profits, and revenues.
  • Outcome – Create meanings, relationships; answers, “What difference does output/activity make?”; user experience.
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