As the
name suggests, multi-channel analytics is a business process in which data is
aggregated from multiple channels and analyzed together, in order to derive
effective business decisions. Multiple channels imply all the channels that a
user would have traversed before reaching the point of making a conversion. A conversion
is when a user takes a desirable action on your site. For an e-commerce store
conversion would be a purchase.
Some of
the common channels that drive traffic are Online marketing (social media, paid
search, email marketing, banner ads) and offline marketing (newspaper, TV,
banners). Online marketing and offline marketing are not two distinct realms
any more. Usually a mix of online and offline campaigns drive actions that
finally leads to conversion on a site. A new term has been coined by David
Hughes to represent this heterogeneous marketing: nonline marketing. Not being able to track the nonline marketing
channels, would lead to a huge miss out on the actual sources for the profit or
loss.
Why is multi-channel analytics crucial?
Campaigns for our products are not always configured on a
single channel, as with a single click from an ad. The customer might have
hopped through different channels, to arrive at the destination. This video on
Google’s multi-channel funnel tool clearly depicts that.
Offline campaign impacting online conversion:
Consider offline sources that drive traffic to your site. For example, a TV or newspaper ad for your product, which might have spurred some people to search for it online and make a purchase. If there is no way to associate this, you might assume the visitor to have come from a basic search or by directly typing in the URL (if a link to your site was provided). This keeps us from judging the actual value of the ad, or if it is working at all. However, if we have a way to track the conversion, then we can wisely invest our funds.In the above example, if we added a URL specific to the ad campaign (www.xyz.com/tv and www.xyz.com/news), then we can measure the traffic coming from the TV and the newspaper individually and correctly. Now, we know how much traffic we are receiving from the ads in newspaper and TV, and then we can decide where the next ads should go to, based on which was more profitable.
Online campaign impacting offline conversion:
Yet another case is online campaign affecting in-store
sales. Example, consider a promotional mail from Hollister, we follow the link
and browse through the site, but decide to make an in-store purchase. How can
they measure the success of the campaign, if they cannot account for the total
number of people who made purchases, online as well as offline, after viewing
the promotion? Online purchases can be tracked using the link provided in the
mail. But offline purchase?
In this case the simplest thing to do would be to ask the
customers, to whom the promotion was sent, if they were there because of the
mail they received. This is similar to the onexit surveys that we might have
taken many a times. Have you filled up a survey online or offline where a
question was asked on how we reached the place or how we heard about them? This
would be a similar tactic.
Hence, multi-channel analytics calls for a single dashboard
that can track the online and offline analytics which enables a holistic impact
measurement. Without it we only get a partial view of the status of the
campaigns or our activities and hence we are not taking the right
decision.
Challenges of implementing multi-channel analytics:
The challenge here is finding a common key that can be used
to link the online and offline data. In other words, the key aids in
identifying the person when he is online as well as offline. The solutions
suggested for the earlier examples, unfortunately, do not hold for every
scenario or situation. Consider all the folks who browse online for products
and their reviews and make the purchase in store.
I am a person who
does massive research, for product prices available at different stores and
their reviews. And later pin down on a product from a particular store. But
finally when I make this purchase, my research online on this store’s site is
in no way associated. My browsing or research pattern or customer behavior
cannot be finally associated with success or failure, as my final offline
action cannot be associated with the online data. Ex: My browsing behavior
online can be associated with a unique cookie, but there is no way I am going
to produce that at a store checkout.
However, this is not a no solution situation, though it is
hard to implement. Different firms have to identify a primary key, which they
could use to link their online and offline data to get a holistic view. Nonline marketing is prevalent
today, and hence multi-channel analytics is important for any organization that
wishes to stay ahead. I would be going over the 8 simplest ways to track multi-channel marketing in the next post.
One suggestion to identify if a sale in store is a result of non-line shopping is to provide coupons online to use in store. The coupons should give a small discount on the current purchase or a credit for future purchase on other products produced by the same company. The unique coupons will serve as a primary key to identify non-line customers.
ReplyDeleteThanks for leaving a comment Rashmi. Actually I have covered that point in my next post, http://dauofu.blogspot.com/2013/01/8-simplest-ways-to-track-multi-channel.html. Do check that out.
DeleteShiniga
As we've seen before, you can't always reach a perfect measure for conversions, especially when a purchase is made offline. There is a joking addage, "If at first you don't succeed, lower your standards!" In this case, perhaps a "close enough" conversion standard could be tied to a certain depth of online product customization. Making a - sometimes wrong - assumption that if someone delves that deep into your product, they are strongly possibly going to make an in store purchase.
ReplyDeleteKeep up the good posts!
Hello Gordon,
DeleteI agree with you on the point that a perfect measure for conversion is hard to achieve, especially when we have to tie data from different channels. Anyways, thanks for leaving a comment. Hope Google Universal Analytics takes us a step further to a "close enough" conversion standard.My post on Universal Analytics.(http://dauofu.blogspot.com/2013/02/google-universal-analytics.html)