Metrics for Measuring Internet Marketing ROI

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18 Νοε 2013 (πριν από 3 χρόνια και 8 μήνες)

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Metrics for Measuring

Internet Marketing ROI

Pete Kever

Principal & Co
-
Founder

GHI Internet Services

Agenda

1.
GHI Corporate Overview (3 minutes)

2.
What Is Internet Marketing? (5 minutes)

3.
Why Internet Marketing Matters (5 minutes)

4.
Creating an ROI Plan (2 minutes)

5.
ROI Metrics: Processes & Tools (10 minutes)

6.
ROI Metrics: Tactics & Examples (10 minutes)

7.
Next Steps (2 minutes)




GHI is holding company comprised of seven privately
-
held firms in
eight industries serving more than 5,200 clients worldwide.


With
staff on four continents and 400 business partners distributing GHI’s
90+ products and services …


GHI Mission

Helping Companies

Connect Smarter




with their customers, people, products, and processes to
improve clients’ brands and grow revenues.

GHI Recognition & Awards

Small

Business

of

the

Year

Award

Entrepreneur

of

the

Year


Weatherhead

100

Award

Distinguished

Marketing

and

Sales

Award

Who’s

Who

in

Technology

Award

Cascade

Capital

Business

Growth

Award

GHI Recognition & Awards

Total

Quality

Management

Gold

Medal

Award

Team

NEO

Success

Award

Telly

Award

for

Film

/

Video

Top

25

Internet

Design

Firms

Top

30

Largest

Telecom

Brokers



Success Stories




Tire retailer grew web site traffic 600%; orders into call
center grew 300%



Online furniture store grew revenues 900% within 24
months



Logistics firm attributed 70% growth to internet sales



Non
-
profit increased unique visitors from 600,000 to
3.2M



Major clothing retailer landed at the top of the Search
Engine results pages in less than 2 months



Manufacturing client increased sales leads by 1000%



Distributor client achieved $250,000 in new sales
within 2 months



Industrial manufacturer of arc furnace electronic devices
generated $1M in internet sales within first 9 months.

By the numbers…



First Client 1997: Early Adopter



Managed more than 650 SEM Campaigns



Largest Competitive Web Firms in town


Outsource 100% of their SEO Projects



200+ SEM Partners worldwide & growing



SEM represents 60% Internet Revenues



7 Staff Members dedicated to SEM



The best way to find new customers…

is to simply let them find you!


SEM Experience / Success Stories



Air Enterprises

American Coffee Services

A Schulman

Ashland University

AtomicBox Logistics

Atromick

Auburn Environmental

Bacons Information

Brilliant Learning Centers

Calfee, Halter & Griswold

Callos Companies

Cardinal Commerce

Catan Fashions

CBIZ

Charter One Bank

Chico’s

Coldwell Banker Realty

Computer Sciences
Corporation

Conrad’s Tire Express

Copperloy

Coral Company

Ellin LaVar Textures

Encompix

Ganaden Bio

GBS

Gerspacher Real Estate

Great Lakes Computer

Greater Medina Chamber
of Commerce


Guardian Industries

HomeOfficeDirect.com

HH Greg

Hoffman Group

Honeywell Corporation

IHomeSchool.com

Interlake Stamping

Jetdock

Martindale Electric

National City Bank

NCLB Tutors

Reich & Binstock

Rick Santorum, US
Senator

RICO Equipment, Inc.

Rocky Outdoor Gear


Speith, Bell, McCurdy &
Newell

Stanley Proctor

Taft Law

Tape Rental Library

The Coral Company

Time Warner Cable

Tradesman International

Trillium Creek

Valley City Supply

Vernon Law

Watteredge

White Hat Management

Worthington Precision Metals


Over 650 SEM
Engagements since 1997

The best way to find new customers…

is to simply let them find you!


SEM Partial Client List

Internet Marketing Overview

Web Design

Online
Advertising

Search Engine
Marketing (SEM)

Email Marketing

Social Media
Marketing (SMM)



Branding



Content



Navigation



Usability



POD
-
Casting



VOD
-
Casting



Rich Media



Monetized Content



RSS Feeds



Banner Ads



Affiliate Marketing



Online


Marketplaces



Forum Sponsorships



Local Advertising



Online Yellowpages



Shopping


Comparison Sites



HTML Creation



Newsletters



E
-
Zines



Viral Campaigns



Surveys



Endorsed Emailings

Market Research

Search Engine
Optimization
(SEO)

Pay Per Click
Advertising
(PPC)



Analytics



Code Optimization



Content Development



Link Building



Social Network Profiles



Blogs



Online Advocacy / Reputation


Management



Social Bookmarking



Video Search



Viral Marketing



User Review Sites

Conversion Optimization


PPC Ad Optimization


Search Term Research


Local Search



Clickstream Analysis



Origination Analysis



Landing Page Development


Multivariate Testing


Usability


Graphic Design

Why is Internet Marketing Important?

The Internet is still growing! In fact, the Internet is one of the few retail areas of

the current economy that is still experiencing double
-
digit growth.



$165.9 billion
:
Total U.S. Internet retail sales in 2007.



1.5 billion
: The estimated number of Internet users worldwide.



190 million
: The estimated number of American Internet users.



12 billion:

The number of searches performed
per month

on the Web.



85%:

The number of web users that start their web experience using Search.



172 Billion:

The number of email messages sent per day.



210 Million:

The number of combined Facebook and MySpace users.



96 million:

The number of blogs tracked by Technorati.

Source: ClickZ

Why is Internet Marketing Important?

Estimated Quarterly U.S. Retail E
-
commerce Sales as a Percent of Total Quarterly Retail Sales:

4th Quarter 1999

4th Quarter 2007

Percent of Total


Source: U.S. Census Bureau

Why is Internet Marketing Important?

Internet Marketing, specifically SEM is
targetable

and
trackable
.


Targetable


you can target and reach exact markets with your

message, at the point in time they are willing to make a purchase

decision.


Trackable


you can get “instant” market intelligence from your

campaigns that is either impossible or too costly to obtain

in other media.

Creating Your ROI Plan

Define the Plan

Define Goals & Objectives

Establish Budgets

Create Project Plans

Identify Key Metrics

Analyze, Repeat

Plan

{

Build

{

Measure

{

ROI = R
esearch
, O
ptimization
, I
ntelligence

ROI Metrics Measurement Process

R
esearch

Data discovery


O
ptimization

Improving your website to capitalize on the
data


I
ntelligence

Learning about the results

ONGOING


R
esearch


1. Empirical, timely, specific data about search behavior

patterns is available online, at your fingertips, revealing the

exact words your potential customers are searching with, and

how much competition you face.

ROI Metrics Measurement Process

R
esearch


2. Today’s site traffic analysis software allows you to mine rich

information about your site visitors:



How a visitor found your site; what keyword they used, and when


The exact path they took through your site


How long they stayed


At what point they left your site


Their geographic location


Whether they fulfilled one of your goals


This data can be aggregated to give you a well
-
rounded picture of your

overall site traffic, and whether you are attracting visitors that are likely to

become customers.

ROI Metrics Measurement Process


O
ptimization


1.
We are no longer only a nation of sellers

We are becoming a
nation of buyers.


Hunters have become the hunted



The best way to find new customers

is to simply let
them find you!



ROI Metrics Measurement Process


O
ptimization


2. One of the largest most profitable companies in

the world


Google


is working to bring business to you. If

Google doesn’t help you succeed…they don’t succeed.


Optimize your site to drive search engine traffic to it. Then

optimize your site to convert those visitors to buyers.

ROI Metrics Measurement Process


I
ntelligence


1. Know how to interpret your web site traffic data. Keep

making changes to your web and internet marketing plans.

ROI Metrics Measurement Process


I
ntelligence


2. As you learn more about your site visitors, keep

testing variations of your pages and content. Unlike other

media, you can develop many versions of your ads and

content quite easily and inexpensively. And you can

get instant feedback on the results for comparative analysis.

ROI Metrics Measurement Process


You will repeat the ROI cycle forever
…why?



Market research data changes as user behavior shifts.


Thus, optimization tasks never stop.


And, you learn more every day as your gain more
intelligence.

Metric Measurement Process


The good news about this never ending ROI “cycle”:


It all starts with
facts

during the market research, works

alongside the
mathematical science

of search algorithms,

and is improved upon by the
creative minds

of marketing

people like you!

ROI Metrics Measurement Process

How To Carry Out “ROI”


R
esearch
:
Market Research



Think about how your company “goes to market.” What do you sell
and to whom?


Research
why

people search for what you sell. Are they looking for a
product? Are they solving a problem?


Study your site’s visitors. How many visitors do you get now? Where
do they come from? If they use search engines to find you, what
words are they using and what pages are they landing on?


Research web sites in your vertical market spaces, including blogs,
message boards, periodicals, directories, social media sites and
content aggregation sites. Do your customers use these resources?

ROI Metrics Measurement Tools

R
esearch
:
Keyword Research for Search Marketing


Creating an effective search engine marketing campaign means

attracting visitors to your site with keywords that are most likely to

convert them into a customer!


Never assume

the keywords your potential customers will use.

Invest in an SEM campaign using the wrong keywords


and all of

your efforts are in vain.

ROI Metric Measurement Tools

R
esearch
:
Keyword Research for Search Marketing


Keyword research tools:



Google


use the free Keyword Tool at
www.google.com/keywords

and
Google Trends at
www.google.com/trends
.



Wordtracker



subscription
-
based web site that contains samples of
searches:
www.WordTracker.com



Keyword Discovery



subscription
-
based web site that contains samples of
searches along with geographic data:
www.KeywordDiscovery.com


ROI Metric Measurement Tools

R
esearch
:
Keyword Research for Search Marketing


Google’s

free Keyword Tool at www.google.com/keywords



ROI Metric Measurement Tools

R
esearch
:

Competitors



Learning

what

your

competitors

are

doing

can

help

in

formulating

your

own


Internet

marketing

strategy
.

Competitive

research

tools

include
:



Competitors’

Web

Sites



study

their

site

for

keywords

and

phrases

they

use
.

These

might

be

effective

keywords

for

you

to

use

in

your

SEM

campaign
.

After

listing

these

keywords,

use

the

keyword

analysis

tools

to

determine

their

popularity
.



Google



conduct

a

back
-
link

lookup

to

see

what

sites

are

linking

to

your

competitors
.

Type

link
:
www
.
YourCompetitor
.
com

into

the

Google

search

box
.



Compete.com and Quantcast



shows traffic trends for competing websites
and demographic data.



SEODigger.com


find out for which keywords a site ranks high enough to be
in Google’s Top 20.

ROI Metric Measurement Tools

O
ptimization
:

Search

Engine

Marketing

(SEM)


SEM

is

comprised

of
:



Organic

Search

Engine

Optimization

(SEO)

attempts

to

improve

rankings

for

relevant

keywords

in

search

results

by

improving

a

web

site's

structure,

content,

and

relevant

back

link

count
.


Pay Per Click (PPC)

advertising uses sponsored search engine listings to
drive traffic to a web site. The advertiser bids for search terms, and the search
engine ranks ads based on a competitive auction as well as other factors.

ROI Metric Measurement Tools

ROI Metric Measurement Tools

ROI Metric Measurement Tools

O
ptimization
:

Conversion

Optimization


Conversion

Optimization
:

CRITICAL


Improves

specific

web

pages

to

increase

the

likelihood

that

a

site

visitor

will


convert

to

a

customer

or

a

qualified

prospect
.



Apply best practices in web design to help visitors find information that will
help them make a decision.


Study traffic patterns to see which pages or content is performing on your
site, and which are not.


Test various versions of web content to see which performs better (also
known as multi
-
variant testing)

ROI Metric Measurement Tools

O
ptimization
:

Email

Marketing


Email Marketing
involves sending out targeted email communications to warm

market leads or current customers, to improve communication and allow new sales

opportunities:


Setup a newsletter to send corporate communications, promotions, or helpful
information to your current customers or prospects


Capture email addresses from web site visitors by asking them to sign up for
your newsletter, or require it to download a white paper

ROI Metric Measurement Tools

O
ptimization
:

Social

Media

Marketing


Social Media Marketing

promotes your online brand by placing ideas within online

communities with the hope that they will spread virally:



Depending on your target market, your organization or company might have a
Facebook profile, a MySpace profile, or a LinkedIn profile, among others.


Your company should have a blog with specialized “content experts” that post
at least 1 article per week, geared toward helping your potential customers
make decisions.


Businesses and organizations with a local focus should have a local search
engine marketing campaign, be active within local discussion boards, setup
local profiles on community sites, and post testimonials on review sites.

ROI Metric Measurement Tools

I
ntelligence
:

Web

Site

Traffic

Analysis

Software


If you don’t have web site traffic analysis software running on your web

site, get it set up immediately…you are flying blind!


If you host with a third
-
party provider, they can normally install a free or
low
-
cost system.


Some traffic analysis software can run into tens of thousands of dollars.


Google Analytics is free of charge,
www.google.com/analytics

-

and
includes many features found in higher
-
priced commercial systems.


ROI Metric Measurement Tools

Key ROI Metrics

Two types of High Level ROI metrics to track:

Tactical

metrics, such as higher search engine rankings
or more site traffic.

Strategic

metrics, such as REVENUE, topline revenue,
number of qualified leads, number of new name
accounts, new distribution channels obtained, etc.

Key ROI Metrics

Examples of
Tactical

ROI Metrics


Unique Web Site Visitors


Average User Session Length


Average Bounce Rate Per Page, or
For Site


Popularity of Key Conversion Pages


Number of Top 10 Rankings in
Google, Yahoo, MSN


Search Engine Referral Rate


Number of Search Engine Referrals


% Growth in Link Popularity


% Growth in Site Traffic


Top Search Engine Rank for
Company Name


Top Search Engine Rank for
Company Brands


Average % Search Engine Referral
Rate


Number of National / Local Interviews


Number of Pickups / Mentions in
Major Media (Fox, Cleveland Plain
Dealer, Newsweek etc)


Number of Mentions in “Blogosphere”

Key ROI Metrics

Examples of
Client
-
Specific Tactical


ROI Metrics


Rank #1 in Google for brand names


Rank #1 in Google for company principals’ names, or law
firm partner names


Google results page descriptions accurately describe a
specific page on the site


Increase impressions for a PPC campaign


Push negative online press to 2
nd

page of Google


Rank #1 in Google for any keyword related to “Medina,
Ohio”


Rank above competitors for competitor names and brands


Key ROI Metrics

Examples of
Strategic

Based ROI Metrics


Total Sales


usually the most important metric!


Number of New Customers


% Change In Number of Sales


Average Sale Dollar Amount


Top Selling Products


Number of Leads Generated


Featured Promos Conversion Rate


Printable Coupons Conversion Rate


Average % Conversion Rate Vs. Industry Averages


Number of Newsletter Signups


Number of Surveys Taken

Key ROI Metrics

Tactical Metric ROI Examples

Metric: Top Ranking in Google for Keyword “ABC”

Tracking Mechanism: Perform a test search in Google

Value of Metric: Popularity of the keyword, effect on the online brand and
number of potential site visitors:

Number of Monthly Searches
#1 Rank Results in
Traffic to Site
5,000
5,000 new impressions
500 visitors
Key ROI Metrics

Tactical Metric ROI Examples

Metric:
Popularity of Key Conversion Page

Tracking Mechanism: Number of times a key page was viewed in a
month, compared to the rest of the site.

Value of Metric: Percentage of overall site traffic that found the key
conversion page.

Monthly Site Visitors
Monthly Key Page Views
Percentage of Views
1,000
200
20%
Key ROI Metrics

Strategic Metric ROI Examples

Metric:
Total Sales

Tracking Mechanism:
The web visitor reaches the “Receipt” page after
checking out and paying.

Value of Metric: Total Value of Sales.

Sales
Total Value
Average Value Per Sale
10
$1,000
$100
Key ROI Metrics

Strategic Metric ROI Examples

Metric:
Total Sales

from Specific Keyword

Tracking Mechanism:
The visitor reaches your website via a specific
keyword search, and reaches the “Receipt” page after checking out.

Value of Metric: Average dollar per sale TIMES number of sales MINUS
cost of top ranking for that keyword.

Sales
Total Value
Cost of Keyword
Net Profit from
Keyword
10
$1,000
$100
$900
Key ROI Metrics

Strategic Metric ROI Examples

Metric:
Number of Leads Generated


Tracking Mechanism:
The visitor reaches the “Thank You” page after
filling out a Request Form.

Value of Metric:
Number of leads that convert to customers TIMES the
average value of those customers.

Percentage of
Leads That Close
Value of Each
Sale
Value of Lead
25%
$1,000
$250
Key ROI Metrics

Strategic Metric ROI Examples

Metric:
Number of Leads Generated

from SEO Campaign

Tracking Mechanism:
The visitor reaches your website via organic search
engines, then reaches the “Thank You” page after filling out a Request
Form.

Value of Metric:
Number of leads that convert to customers TIMES the
average value of those customers MINUS cost of the SEO Campaign.

Sales
Value of Each
Sale
Total Value
Cost of SEO
Campaign
Net Profit from
SEO Campaign
10
$1,000
$10,000
$1,500
$8,500
Key ROI Metrics

Strategic Metric ROI Examples

Metric:
Number of Sales Generated

from Email Newsletter Subscriptions

Tracking Mechanism:
The email subscriber clicks a link within an email
newsletter, then reaches the “Receipt” page after checking out.

Value of Metric:
Number of subscribers that convert to customers TIMES
the average value of those customers MINUS cost of the Email
Campaign.

% Of Subscribers
That Become
Customers
Value of Each
Sale
Value of Each
Subscriber
10%
$50
$5
Build IM as a core competency:



Hire: $150k for experienced SEM manager, another $40k for each SEM
specialist. Potential $250k direct investment the first year alone plus
sales and marketing costs.



Transfer: Many IM firms like GHIIS have coaching services that transfer
knowledge, best practices, proprietary tools & systems, processes to
you for a much smaller investment.



Partner: Strategically align with an outside internet marketing firm to co
-
own, co
-
brand or simply resell the service.


Next Steps


Clearly define the goals of your site.


Determine what elements within the Internet Marketing world make
sense for the goals you are trying to achieve.


Establish defined metrics that you will use to track each of those goals.


Define, set up and manage the tools to measure the metrics
-

web site
traffic analysis software.


Whether you decide for or against an SEM campaign, we recommend
you conduct strategic market and keyword research to identify, validate
and determine the optimal terms to reach and grow your target
markets. This alone will impact your ROI for your web site and related
IM campaigns.

Next Steps


Start an email newsletter using email marketing software that can track
clicks to your site. Begin by sending it out once per month to your
house list.


Setup a small test Google AdWords or Yahoo Search Marketing PPC
campaign. You can start for as little as $1 per day. Coupled with web
site traffic analysis, you can learn a great deal about your web site
visitors in a short amount of time.


Do “ad hoc” usability testing with clients, partners, even friends &
family. Assign them tasks on your site, watch what they do, and record
it.

Other Steps