The Business Case for Analytics…
Getting Stakeholders on Board
Marco Bailetti: Momentum
Max Tremblay: Consultant/Digital Fusion Strategist
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draftAgenda
Real World Case Study & Challenge• Eco-system• Traffic Source/Flow• The Boardroom
Getting Buy-in• Overview• 5 Keys to buy-in• Top obstacles for buy-in• Tips on Success• Questions
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Home Page
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Web Eco-System – What does your site do or want to be?
Tool(Workopolis)
Revenue Channel(EBAY, Indigo)
Lead Gen(Dell, B2B sites)
Brochure(Canadian Tire)
Traffic Ad PlayPortals/Social Media
Basic
Needs
Expectations
Unarticulated Needs
Your Web Site
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
Realities of your web business
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential4
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential 5
Affiliate
Mobile
Social Media
Display Ad
Distribution Partnership
Other competitive sites
SEM
SEOCo-Brands/White Labels
Base Direct Traffic
Source flow of referring visitors – Building block
Conversion RateFuture
High
Growth
Sources
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Visitor action/activity flow pathing
Browse & Bounce
Search
Write text/email
Upload or download stuff
Sign up to email
Shop on ecom
Buy
Conversion Rate
Transactional Behavior
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
The dreaded boardroom roasting…
CTOCEO
CFO
draftWeb Analytics…• Costs money. (People & technology)
• Doesn’t sell itself.
• Scares People.
• Requires longer term buy-in to be successful.
• Really, really nerdy.
AND IS:
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A powerful tool that will enable you to make better business decisions.
draft5 keys to buy-in1. Identify the 4 Stakeholders
2. Meet with stakeholders individually & listen.
3. Deliver the 1 pager
4. Recruit evangelists, show the sizzle
5. Show the ROI, over and over and over.
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draft4 stakeholders
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THE MONEY GUY:•Approves the $. Only one. Final approval
THE COACH•Influence internal stakeholders, navigates the politics, drives the agenda
THE CONSUMER•End user of new application
THE IT GUY•Screens suppliers, ensures compatibility/standards
draftDeliver the win, get the buy-in
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THE MONEY GUYLow cost of ownershipROI, increased productivityGood budget fit
THE COACHRecognitionVisibilityPromotion
THE IT GUYReliability & supportIntegration & compatibilityTimely delivery
THE CONSUMERDo job better/faster/easierEasy to learn/useUpgrades their skills
draftMeet with Stakeholders & Listen1. Learn about their business
– How does change impact?
2. Learn about their pain points
– What are the top 2 challenges?
3. Discuss scenarios (what if?)
– What if we did something that would help address challenges?
– What could that something be?
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Build credibility. Earn trust.
Discover what is relevant & actionable
Plant a seed. Make it their idea
draftDeliver the 1-pager
• Objective: what you want to do & why.• Overview: provide background & non-debatable
facts. Include business challenges.• Strategy: short and longer term strategy• Execution: details on how the application works,
who will lead, cost & timeline.• The Benefits: Why do this now? Highlight
benefits that specifically address the pain points highlighted by the stakeholders
• Next Steps: What needs to happen & when.
13Source: based on P&G 1-page memo format.
The 1 pager delivers a concise business case targeted decision makers & prompts short term action.
TIP Get signatures from stakeholders
draftRecruit Evangelists & Show the Sizzle
• Passion is contagious. Passion sells.
• Enlist evangelists to sell for you
– Get suppliers to do the heavy lifting
– Share the ‘sound byte’ internally
– Create accounts, get people to use it
• Show the sizzle. Yes, it works.
– The Executive Dashboard
– The cool animations, features & gadgets
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Example 3 - e-commerce Purchase Funnel – (all numbers are examples)
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Conversion Rate: XX%
Return Visits: XX% New Visits: XX%
Identifying % abandon to
other sections of the site
& may reengage in the
funnel
Identify leakage or top 5
next pages exiting funnel1. Product : XX%
2. Exited Site: XX%
3. Home Page: X%
4. Login In (time out): X%
5. Unknown (error): X%
Provide estimate of
annual revenue impact
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
draftShow the ROI, over and overROI case needs to be positioned around how web analytics has:
increased revenue, reduce time or reduce costs.
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BENEFIT ROI Web Analytics Tools
Increased Revenue •increased paid search ROAS by 25%•Increased conversion 2% &generated incremental 1MM•Increased advertising revenue by 20%
•Campaign tracking•Funnel abandonment•Searched keywords•Content consumed
Reduced Costs •Reduced CPA (cost per acquisition) by 45%
•Campaign tracking•Referring sources
Reduced Time •Reduce time to market by 4 weeks•Reduced research time by 30%
•Multivariate , A/B testing•Path analysis
draftShow the ROI, over and over
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Make other people look good too as much as you can.
Radio promotion launched New product launched PR Release
Marketing loves you IT loves you CommunicationsLoves You
draftTop obstacles to buy-in
1. Status Quo
2. No Business Case
3. Skepticism (data accuracy)
4. Increased visibility
5. Budget
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draft#1. Status Quo
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I like my comfort
zone.
If it ain’t broke, don’t fix it.
We already have
something.
draft#1. Overcoming Status Quo
• Impact of doing nothing short & long term opportunity costs
• Benchmark with competitors
• Align with innovation/product development
• Don’t tell stakeholders their baby is…UGLY
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Remember: Web Analytics is a catalyst for change. Change can be disruptive and uncomfortable
The dreaded boardroom roasting…
Business questions that need answers!#2 No Business Case
• What keeps me up at night?
• What/Where are my sources of leads and revenues
• Who are my best customers? How do increase share of wallet?
• How do I build greater engagement and return business
• How do I get my consumers/customers to the right place FAST.
• Which off/online investments is working? What is the ROI/SAC
on SEM, SEO,Display ad, Social media, Affiliate, email?
draft#3 Skepticism (data accuracy)• Manage expectations:
– Data is not 100%, deal with it– This isn’t a financial tool that hits the GL
• Educate:– Use web analytics as directional tool (+/-10%)– Lunch & Learn to explain metrics (i.e. Visitors)– Understand technical reasons for data anomalies
• Establish credibility:– Benchmark with trusted sources– Robust Implementation & continuous updates– Ensure consistent naming/tagging strategies– Communicate changes
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draft#4. Increased VisibilitySeveral stakeholders, including IT, marketing and
advertising agencies may feel threatened by increased visibility & scrutiny of web analytics
• Position web analytics as an opportunity for them (highlight ROI, increase budget)
• Include them in decision making/usability groups
• Always include them PRE management presentation
• Reassure them that:– they are still the experts, you are a lowly analytical person
– Web analytics is only one of many factors that measure performance
• Don’t tell stakeholders their baby is…UGLY
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draft…Your Baby is Ugly
• Avoid temptation to use analytical tools to pick apart current budget spend, tools and decisions
• Focus on constructive insights AND tell a story
• How can this ENHANCE what they are doing?
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draft#5. Budget
• Share costs with multiple departments (IT, Marketing, Operations)
• Negotiate with suppliers
• Benchmark web analytics spend vs. other tactics/costs
• Reinforce your business case:
– ROI
– Opportunity costs
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Disclosure - What should your web analytical tool do
•Grow revenue , driving millions in incremental $$$
•Save you bazillions of $$$
•Accelerate speed to market & decision making process
Rationale for
Web Analytics
•Track all your online activities
•Easy to use
•Manage all paid search campaigns
•Track all your banner/display ads anyway you want
channel, size, format
•Manage all email/outbound from open rate to conversion
Web Analytical
tool must have
Used & Fell in
love with
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential 27
Tips on leveraging your web analytics measurements to success
1. Web Analytics starts with 1-2 business questions• What are the objectives/goals for my website?
• How can we do better. What is doing well and can we do more/less?
• The type of questions you ask, will determine what is the right solution &
implementation
2. Great People. Everyone has to know and use the tool• Curiosity is vital combined with a genuine LOVE for data
• Evangelize through the org, the more use it, the more love it
3. Beauty of the web Measure, measure and measure
• Build relevant dashboard with relevant KPI’s
4. Constantly challenge your implementation with Tech/Dev• Improve page naming. Ensure that you capture full conversion
• Hire the right help and consultants like Marco
5. Don’t assume it is going to be easy or the panacea for all
your ills
28S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
draft
QUESTIONS?
Marco Bailetti (Momentum)(E) [email protected]
(C):(416) 400-6370
Max Tremblay (Independent Consultant)(E) [email protected]
(C):416-399-0381(Linked-in): http://www.linkedin.com/in/maxtremblay2009
(T) http://twitter.com/maxtremblay100
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draft
Appendix
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Case Studies and Examples
• Example 1 – B2C Visitor KPI Acquisition
– What are the most cost effective sources/channels to drive visitor
action on our site?
• Example 2 – Ecommerce Lead Gen & Purchase
Conversion
– What are the most cost effective sources/channels to drive leads,
then purchase conversion and revenue.
31S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
Business/Marketing Strategies 101
2010 Business ObjectivesRevenue/Profit Targets
Brand Engagement/Health KPI
2008 Strategic Pillars (Your Company name) is (Your Value Proposition) to (Your Target Market)
Category
Strategy #1..
-Tactic #1…
Competition
Strategy #1..
-Tactic #1…
Consumer
Strategy #1..
-Tactic #1…
Customer
Strategy #1..
-Tactic #1…
Company
Strategy #1..
-Tactic #1…
5 C’s INSIGHTS & Tactics
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential 32
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Example 1– KPI B2C Dashboard (#’s are purely fictional)
Pick
meaningful
KPI’s
Compare vs
previous week,
month, YTD, LY
Compare Channels in
source
Cost per Actions
selected
Best Bang for your
buck but SEO cost
difficult to allocate
Should be able to track
Email, Mobile & Affiliates
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
Main
Source/Media
Sub
Section Visitor
% chg
VYA
Action #1
(Search for)
Visit/
Action #1
Action #2
email sign up
Total Cost/
Investment
CPC
(Visitor) CPA#1 CPA#2
Total 2000 2% 6055Direct Traffic 1000 5% 5000 5.0 250
Google Total 100 2% 300 3.0 26 100.00$ 1.00$ 0.33$ 3.85$
Google SEO 40 10% 200 5.0 20 -$ -$ -$ -$
Google SEM 60 -5% 100 1.7 6 100.00$ 1.67$ 1.00$ 16.67$
MSN Total 200 9% 200 1.0 20 200.00$ 1.00$ 1.00$ 10.00$
MSN Messenger 100 0 150 1.5 10 100.00$ 1.00$ 0.67$ 10.00$
MSN Big Box 100 2% 50 0.5 10 100.00$ 1.00$ 2.00$ 10.00$
Yahoo Total 100 -2% 400 4 40 50.00$ 0.50$ 0.13$ 1.25$
Ad Networks Total 200 3% 50 0.25 50 200.00$ 1.00$ 4.00$ 4.00$
Other Refering Sites 200 -10% 70 0.35 50 -$ -$ -$ -$
Email Total 100 25 0.25 10 5.00$ 0.05$ 0.20$ 0.50$ Mobile 50 50 1 1 -$ -$ -$ -$ Affiliate Total 100 10 0.1 15 10.00$ 0.10$ 1.00$ 0.67$
Example 2– Ecommerce Dashboard (#’s are purely fictional)
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Last Step
Check out
purchase
E-com Flow Step 1
lead generation
Return on Investment
Measure
cost per
lead
Should be able to track Email,
Mobile & Affiliates
Main
Source/Media
Sub
Section
Step 1
Lead
% chg
VYA
Step 5
Check Out
Conversion
Rate Revenue
Total Cost/
Investment
CPL Step
1 Lead
CPA
Step 5 ROI
Total #REF! 2% 334Direct Traffic 5000 5% 250 5.0% 2,500.0$
Google Total 300 2% 45 15.0% 450.0$ 100.00$ 0.33$ 2.22$ 450%
Google SEO 200 10% 15 7.5% 150.0$ -$ -$ -$ 1000%
Google SEM 100 -5% 30 30.0% 300.0$ 100.00$ 1.00$ 3.33$ 300%
MSN Total 200 9% 14 7.0% 140.0$ 200.00$ 1.00$ 14.29$ 70%
Yahoo Total 400 -2% 15 3.8% 150.0$ 50.00$ 0.13$ 3.33$ 300%
Ad Networks Total 50 3% 3 6.0% 30.0$ 200.00$ 4.00$ 66.67$ 15%
Other Refering Sites 70 -10% 1 1.4% 10.0$ -$ -$ -$ 1000%
Email Total 25 3 12.0% 30.0$ 5.00$ 0.20$ 1.67$ 600%
Affiliates Total 10 3 30.0% 30.0$ 10.00$ 1.00$ 3.33$ 300%
Total Paid Total 1355 5% 129 9.5% 1,290.0$ 665.00$ 0.49$ 5.16$ 194%
What
convert best
S.O.R.A – The case for Web Analytics – October 13, 2009 -> Max Tremblay & Marco Bailetti - Confidential
draftNo Business Case• How does this align with organizational
objectives?
• How does this address stakeholders pain points?
• Why do you need this now?
• How does this: make money, reduce time or reduce costs?
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draftOverviewWhat you get:
• Tools to get buy-in for web analytics
• How to overcome common objections
Who this is for:
• Marketers, IT & business professionals that want to implement web analytics to improve their operations and business decisions.
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