Digital marketing

Marketing Analytics & Tools

Franck D. NASSIRI
2023
 COURSE OBJECTIVES

• Gain an understanding of the data collection and analysis

methods used by marketing professionals

• Learn how to evaluate and choose appropriate web analytics

tools and techniques for your analysis

• Understand frameworks and approaches to measuring consumer

action
 THE 4 EPOCHS OF DIGITAL

• So far we’ve had 4 epochs of digital

• We’re in the forth epoch by now
• Many did not survive to the 2000 year
bubble where more than $2 trillions value
was destroyed
• Some other recovered, investors regained
confidence and supported them and
became unicorns (reached the the magical
1$B cap)

25 octobre 2023
2005: The 3-step model of marketing by P&G
 2005: the 3-step model of marketing by P&G

• P&G came out with this three-step model of marketing and something
that they called the first moment of truth

• This model of marketing suggests that consumers need some sort of

stimulus first (ad, felt need, word of mouth, ….)
 2005: the 3-step model of marketing by P&G

The first moment of truth: At shelf in-store

• This is the time where the consumers find themselves at the

shelf with a number of different options and they must choose

• So that first moment of truth for P&G in this model becomes the real
first battleground for brands where they have to fight for that
consumer and make themselves noticed over the others
 2005: the 3-step model of marketing by P&G

The second moment of truth: The experience

• The second moment of truth is once the consumer makes a purchase

decision and then gets home with the product

• The question is: does that product live up to expectations?

A DRAMATIC CHANGE BETWEEN 2005 & 2013

2005: installation of
Pope Benedict in
Rome

2013: installation of
Pope Francis, same
place
 THAT IS THE REASON WHY GOOGLE
INTRODUCED THE IDEA OF ZMOT

The zero moment of truth introduced by Google

• The moment consumers are collecting data, information and other inputs
 THE IMPORTANCE OF ZMOT IN MARKETING

• ZMOT is the messy time when consumers:

ü are flying around to different data sources, when they're checking their social
network, sharing and collecting information
ü are producing and exposing a vast amount of information about themselves
ü can still be moved in their decisions

• For a marketing analyst, ZMOT is the most important time to understand a

consumer
 McKinsey Consumer Decision
DM Journey

A FRAMEWORK
 ZMOT

• To make sense of that time, to be able to turn the data that's flying around in
that moment into a useful set of information for analysis, we need a framework
 The McKinsey Consumer Decision Journey

• Start point: Trigger area

(recognition of need)
• Initial consideration set: a
list of brands that pop up in
the consumer’s mind.
Important place to be for a
brand, for sure
Source: McKinsey & Company
• Active evaluation: ZMOT
• Moment of purchase: Consumer makes decision, the P&G’s first moment of
truth
• Post-purchase experience: P&G’s second moment of truth
• Loyalty loop: The consumer goes directly from the trigger to purchase, based
on past experience – on a relationship of trust
 The McKinsey Consumer Decision Journey

The right questions should be

asked (at each step) by the
marketer in order to set or to
improve positioning or
promotional messages:

• Trigger: Source: McKinsey & Company

ü What creates that consumer need?

ü Why do consumers suddenly feel like they need my product or a competitor's
product?
ü Was it an ad that I placed?
 The McKinsey Consumer Decision Journey

• Initial consideration set :

ü Am I part of that list?

ü Do customers recognize my brand?
Source: McKinsey & Company
ü Are they aware of me and my products?
ü How much do they know about me?
To get on that initial consideration set, brands must build great trust and loyalty
with consumers, must have some kind of relationship developed with them.
But if they're not on that initial consideration set, not everything is lost for a brand
because you have the chance during active evaluation to get into the consumers
mindset.
 The McKinsey Consumer Decision Journey

• Active evaluation :

Source: McKinsey & Company

ü What kind of needs do consumers have and do our products satisfy those
needs?
ü Am I positioning them in a way that makes those products, those brands,
attractive to consumers?

Understanding what consumers are evaluating during that process is

vitally important to brands.
 The McKinsey Consumer Decision Journey

• Moment Of Purchase :

Source: McKinsey & Company

ü Am I facilitating sales there so that at the moment of purchase I am winning?

ü And then what can I do to improve the current win percent ?

Think about things you’re doing at shelf, or in store, or even if I have an online
component, my checkout process.
 The McKinsey Consumer Decision Journey

• Post-purchase Experience:
Source: McKinsey & Company

ü Do the experiences I deliver fulfill the expectations that consumers have of

my product and what can I do to help them?

This is where customer service, having a good solid product, a reputable

name behind it come into play.
 The McKinsey Consumer Decision Journey

• Loyalty loop:

Source: McKinsey & Company

ü Do customers advocate for my brand?

If they are advocating for my brand, I know that I've got a loyal strong
customer.
• Further reading:

https://www.mckinsey.com/business-functions/marketing-
and-sales/our-insights/the-consumer-decision-journey
DM

BASICS OF WEB ANALYTICS

 WEB ANALYTICS DEFINED

Web analytics is the assessment of a variety of data to help

create a generalized understanding of the visitor
experience online.
Eric Peterson

Web analytics demystified (2004)

WEB ANALYTICS DATA SOURCES

1. Web traffic data reports

ü Help figure-out who's come to your website and then what they've done
in that online experience
2. Web server performance data reports
ü About volume of consumers that are coming in and reports on the
server's ability to handle that data
3. Web transactional data reports
ü About any kind of actions that you want consumers to take on your
website
4. Usability studies
5. User-submitted information
 HOW ORGANIZATIONS COLLECT DATA?

• How individuals are tracked?

• How to recognize that it was the same person who:

ü saw a Wall Street Journal display ad on their laptop yesterday

ü viewed a Facebook ad on their smartphone yesterday
ü arrived on a website by way of a search click on their desktop
today
ü and then subsequently purchased?
 HOW ORGANIZATIONS COLLECT DATA?
2 ACTORS: COOKIES & TAGS

Cookies: unique identifier stored in browser files that allows the site to
recognize a visitor and adapt content usually has an expiration date and does
not include personal information (it tracks browsing information, not you
personally)
These cookies store information about previous web pages visited, products
or services viewed, and any advertisements viewed or clicked on from
your computer. Companies then use this information to tailor messaging and
experiences specific to what you were interested in.

Tags (some call them pixel tags): small set of javascript code (in your
website) that sends a record to the web log, includes page, user, and action
information and can be programmed to draw out custom information as well.
HOW ORGANIZATIONS COLLECT DATA?
2 ACTORS: COOKIES & TAGS
 PYRAMID MODEL OF WEB DATA
RELATES VALUE TO AVAILABILITY
Individul
users
can be User-submitted information
identified
Usability studies

Web transactional data reports

Web server performance data reports

Web traffic data reports

• Peterson introduces a very interesting concept, and that's this

pyramid model of web data
 ANALYTICS METRICS AS A FUNCTION OF THE
SIZE (BUSINESS)

Small business metrics

• Cost per acquisition: the cost that you are investing as a brand into the
digital programs you're creating, divided by the number of new customers
that you actually acquire

• Click-through rate: effectiveness of web advertising, how many

consumers actually see that ad. Either search ads, search link, or display
ad, and then click on it and do the actions that I want them to

• Percent new visits: basically looking at all the people who are showing
up for the first time
 ANALYTICS METRICS AS A FUNCTION OF THE
SIZE (BUSINESS)

Medium business metrics

• Bounce rate basically looks at what percent of consumers come to my site,
hit my web page but then leave right away and go off to something
else, They don't interact

• Page depth is the opposite. It's measuring how deep consumers go through
my web experience. How many pages did they actually see, a good measure
of how long they stayed with me in my digital experience

• Loyalty another somewhat self-explanatory measure of how frequently are

people coming back to my site. How loyal are they to me and my brand
 ANALYTICS METRICS AS A FUNCTION OF THE
SIZE (BUSINESS)

Medium business metrics

• Events per visit, you probably have a number of actions that you want
consumers to do. Events per visit basically measures how many of those
they do in that session in that time that they are with you

• Check out abandonment rate is another very important measure of

behavior, particularly for someone who's selling things online; it's basically
looking at what percent of consumers begin the checkout process by putting
something into their cart online and then don't finish it, don't actually buy that
product
 ANALYTICS METRICS AS A FUNCTION OF THE
SIZE (BUSINESS)

Large business metrics

• Macro conversion rate; it's basically looking at how many consumers came
in, and how many did I convert into customers. It's my conversion rate at a
very macro sense

• Micro conversion rate takes a finer view of that data. What it's looking at is
not only how many I turned into customers from visitors, but there are
different events that I want them to do that lead along the path to sales, how
many of those events did they actually conduct? How many of those
predefined goals that I've set did I achieve with that consumer?
 ANALYTICS METRICS AS A FUNCTION OF THE
SIZE (BUSINESS)

Large business metrics

• Per visit goal value then is somewhat related. That not only takes a look at
this micro conversion rate, but then assigns a value to the different steps.

• If one of the steps is I want them just to come to my website; if a second step
is I want them to download a piece of literature that I have out there; if a third
step is I want them to sign up for some email marketing program that I run I
can assign a value to each of those different activities, and then this metric
will give me a sense for how much I am maximizing or optimizing that
value when consumers are coming to my site.
 ANALYTICS METRICS AS A FUNCTION OF THE
SIZE (BUSINESS)

Large business metrics

• Days to conversion is sort of a loyalty metric, the amount of time in-

between visits or purchases made by consumers with me online.

• Percent assisted conversions, which looks at all the marketing activity that
I am doing. How are they influencing customers that come to my site and
then make a purchase? Was it my banner ad that drove them there? Was it
the video that I put out online? All the things that I am doing to proactively
reach consumers; how-- what kind of impact are they having on the
customers that I'm interacting with?
DM
ANALYTICS TOOLS:

1. ENTERPRISE PACKAGES
2. POINT SOLUTIONS
3. ANALYSIS GADGETS
 WEB ANALYTICS TOOLS

Depends on needs and data situation:

• Enterprise packages, which are big powerful solutions that handle

lots of data, high capabilities. Point solutions can handle a little
less information density but still very strong in its own right. And
finally, on the low-data density side of the scale, analysis gadgets.
Let’s take a closer look at each:

• The Enterprise packages come from some of the most recognized

names in marketing analytics: comScore, Adobe, IBM, Google
Analytics (with the paid version)
• Downside: High cost (from $25k to $500k)
 WEB ANALYTICS TOOLS

More affordable “Point solutions” to address challenges that

Marketing is facing with:

ü Multivariate, A/B Testing: trying 2 or more creative solutions

and monitoring response
ü Attribution modeling: collecting all interactions for different
channels (Landing page, pricing page, blog, social, …) and
determining relative impact on sales opportunities
ü Site optimization: Tracking site flow and information
architecture to improve customer experience
ü Media optimization: Determining what media work and what
does not

• But these point solutions still not available/affordable to everyone

 WEB ANALYTICS TOOLS

• Analytics gadgets
Basic capabilities of analytics gadgets:

ü Clickstream Analysis: watching consumers on your website, how

they're interacting with you and how you might optimize that flow
o Yahoo! Web Analytics, Googe Analytics, Piwik, Freeburner, Google Webmaster Tools,
Bing Webmaster Tools

ü Outcomes Analysis: Analysis of factors and experiences associated

with any kind of business outcome (sales for instance)
o Mongooze Metrics, ifbyphone (Now DialogTech), LivePerson
WEB ANALYTICS TOOLS

ü Voice of Customers: important analytics technique collecting

information from consumers and their thoughts on your brand or the
products or whatever you may ywant to ask them about
o Qualaroo, UserTesting.com, Loop11.com, Concept feedback, Bounce, Google
Customer Surveys

ü Experimentation testing: similar to A/B testing

o Google Website Optimizer, Optimizely, AdWords Campaign Experiments

ü Competitive intelligence: collecting information on your competitors

o Compete, AdWords Keyword Tool, Google Trends, Google Correlate
 WEB ANALYTICS TOOLS ANY ANALYTICS
PERSON SHOULD KNOW ABOUT

• Google Trends: looks at search topic and volume over time. So you get a
sense for what are -- what consumers are interested in and how those
interests in different terms, search terms, have either fallen or risen over
time.
• Correlate: takes that a step further. It takes a single search term and then
will report what other terms consumers are interested in or curious about in
conjunction with that term. So it gives you a sense for some context around
that search term. And a very important piece of information for you as a
marketer to know how consumers are thinking about a search term or some
topic. Not just how frequently or how much they're thinking about it.
• Think Insights: is a great resource with all sorts of information on
marketing trends, industry data, different insights that have come out of
research from Google. And that's all free.
• Consumer Surveys: is a very intuitive, very powerful voice of customer
collection tool.
DM

Which tool for each step ?

(of the McKinsey Consumer
Decision Journey)
 The McKinsey Consumer Decision Journey

Trigger:
Clickstream analysis
Source: McKinsey & Company

• Taking a look at how they're interacting with you online, where they're
coming from, what has motivated them to come and check you out
 The McKinsey Consumer Decision Journey

Initial Consideration Set:

Competitive intelligence

Source: McKinsey & Company

• Who are the brand leaders?

• Who are the competitors out there that,
• I as a brand am up against?
 The McKinsey Consumer Decision Journey
Active Evaluation :
Experimentation and testing

Source: McKinsey & Company

• If you're putting in different inputs, different advertising, or different

programs, seeing as consumers are in active evaluation, how they're
reacting and what is working gives you great insight into your ability to
influence them.
 The McKinsey Consumer Decision Journey

Moment of purchase:
Outcomes analysis

Source: McKinsey & Company

• Someone purchased something, what were the factors that led up to that ?
 The McKinsey Consumer Decision Journey

Source: McKinsey & Company Post-purchase experience:

voice of customer (Experience surveys)

• Hearing from the customer through a voice of customer study particularly

around the experience that they've had with that product and crafting some
surveys there, is a great way to get the information that will be vital for you in
a setting consumer expectations, but then also improving your products so
that you deliver a better experience
 The McKinsey Consumer Decision Journey

Source: McKinsey & Company Loyalty loop:

voice of customer (Advocacy surveys)
Social Media is a great space for that

• People will take to Twitter, take to Facebook and talk about the products that
they love.
• Collecting that information in and developing that voice of a customer is a
great way to get a good insight and sense into that advocacy.
WEB ANALYTICS TOOLS

• Analytics gadgets, free or at a quite low cost

Basic capabilities of analytics gadgets & tools:

ü Clickstream Analysis: Yahoo! Web Analytics, Googe Analytics, Piwik,

Freeburner, Google Webmaster Tools, Bing Webmaster Tools

ü Outcomes Analysis: Mongooze Metrics, ifbyphone, LivePerson

ü Voice of Customers: Qualaroo, UserTesting.com, Loop11.com,

Concept feedback, Bounce, Google Customer Surveys

ü Experimentation testing: Google Website Optimizer, Optimizely,

AdWords Campaign Experiments

ü Competitive intelligence: Compete, AdWords Keyword Tool, Google

Trends, Google Correlate
DM

Data sources for Analysts

MARKETERS’ MOTIVATION BEHIND WEB ANALYTICS

• Aberdeen Group 2013 - The major motivator behind

analytics is to improve targeting by first better
understanding consumers
 WAB ANALYTICS FUEL: DATA

• Data might come in 2 different types:

ü Raw data:
Ø Typically the original source of data
Ø Difficult to use in analysis
Ø Analysis requires some degree of data processing
Ø Example: User Generated Content
ü Processed data
Ø Data that is ready for analysis
Ø Processing can include merging, subsetting, transforming, …
Ø Example: Google analytics output, most reported data
 WAB ANALYTICS FUEL: DATA

• Where to find raw data ?

• US:
ü The US Bureau of Census (www.census.gov), Large amount of
dowloadable data on population, demographics and other indicatrs
ü Bureau of Economic Analysis (www.bea.gov), data and information at
national, and international levels as well as by industry
ü Bureau of Labor Statistics (www.bls.gov)

• FR:
ü INSEE, IPSOS, EUROSTAT, …
 WAB ANALYTICS FUEL: DATA

• Where to find processed data ?

ü Gapminder World (www.gapminder.org), the world’s most important
trends for over 200 countries
ü World Resources Institute (www.wri.org/resources/), comprehensive
online database on environmental, social and economic trends
ü FlowingData (flowingdata.com),
ü Information Aesthetics (infosthetics.com),
ü Information is Beautiful (www.informationisbeautiful.net)
ü Good Transparency (www.good.is/departments/transparency/)
ü Visual Complexity (www.visualcomplexity.com/vc/)
ü MarketingCharts (www.marketingcharts.com)
ü Societe.com
ü IDC.com (International Data Corporation)
ü ….
 THE NEW MEDIA ECOSYSTEM

• Marketers have much trouble with the new media ecosystem?

ü They apply the old analog thinking to the new digital era
ü Marketers need to learn a new language to better anticipate