Not for you, analytics amateur
The purpose of this posting isn’t to talk about adoption, it’s not to discuss the fact that many organization who have purchased analytics solutions aren’t using them, it’s not to point out the fact that if you are involved in on-line commerce you should have a dedicated web analytics resource (at least part time). This is an article for the rest of you.
Many of my retail brethren “get it”. You are looking at your reports…you are deciphering the difference between top product viewed and top product purchased, you are looking at and optimizing cross sell placement within your product detail pages, you are calculating GROAS on your search marketing spend. In short, you are turning your investment in analytics into a finely tuned money making machine. This posting is for you…because even you, my high end web analytics gurus – adopters and embracers – have one more step left…an opportunity tucked away in the minds of the industries big gun consultants, concepts usually reserved for those willing to pay top dollar to take their business to another level.
Before we understand where we are going, let’s look at where we have been. Like the first fish that flopped its way onto land, sprouted legs, and walked off to launch the Starbucks brand, Web Analytics is evolving. In just 6 short years web analytics has gone from being a tool that simply counted visitors and hits, into being the life blood for many merchants.
If you haven’t looked at web analytics solutions lately, you will be shocked. I have clients using web analytics to do product demand analysis, support product soft launches, assess ALL acquisition efforts (across the web, print, radio, tv), I’ve even got one customer who has laid their web analytics solution over their data warehouse to leverage cross channel purchase activity in the context of their web analytics strategy (or visa-versa). They can even count how many hits they had to their homepage!! (yes, that’s a joke. The jokes are bad, but at least there are a lot of them).
Welcome to the Galapagos – here is your long tail
The most important result of web analytics Darwinian transformation from basic reporting into complex data analysis was the move from aggregate level reporting into a visitor centric data model. Meaning, web analytics (starting with Omniture) started building a “visitor database”, where profiles started to be generated on individuals, persona’s started to take shape, and suddenly it wasn’t simply about “what” was happening on your site, it was “who” did that “what”.
The other players in the space have all begun to catch up. Every major analytics platform can now tell me that a specific person saw a specific product, on a specific date, and that they added it to their basket, but didn’t purchase. The volume of data is great, but how do we bridge the gap between insight on the individual level, and the action that we should be taking?
We must first understand the data. The most critical thing to keep in mind is that while web analytics data is amazing valuable, it is by design limited in it’s visibility. Huh? Alright, most of you reading this are multi-channel…you have an extensive print operation, brick and mortar storefronts, you have loyalty programs, you have a lot of data. This is where your understanding of your shopper’s TRUE LIFETIME VALUE resides. It’s the fact that despite the fact that Leslie purchased $3,000 worth of product on-line last year, she returned $2500 worth of it and called customer server 36 times. Your web analytics platform will have her flagged as a high value customer, but you know better.
We’ve been dating for a while, let’s get engaged
So, what is the value of web analytics? Engagement. Say it one time with me…E-N-G-A-G-E-M-E-N-T! When someone visits your website, it’s for a reason, they have become engaged with you due to a product you carry, a promotion you are running, or brand loyalty. Your job, Mr./Mrs. Retailer, is to use the fact that your customer has contacted you and to take an action (not literally contacted you, figuratively – a metaphorical “contact” based on the customer electing to visit your site). Action is the key…action is where the dollars are hiding. To define action, you guessed it, we are going to look to the data.
Recognizing that your website is a vehicle for not simply transactional process, but shopper engagement, let’s look towards the data we should be exploring:
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Data Point
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What are we looking for
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What does it mean to you
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Cart/Basket
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We want to see not only who abandoned, but who purchased. As importantly, what was in the basket/cart
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Re-marketing fodder, a chance to put product back in front of customers/visitors in a relevant manner based on conversion.
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SKUs
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What were the top viewed SKUs for non-purchasing shoppers?
What were the top viewed SKUs viewed but not purchased by customer who completed an order?
What were top viewed SKUs vs. top purchased SKUS (indicating potential ship rate issues, or availability issues especially for you soft goods merchants carrying stylized products)
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With the Cart/Basket abandonment we have identified the “who” we are targeting, the details give us the “what” are we going to put back in front of them.
Please see my other article on “MMM…Tasty /or/ That’s a high quality SKU” – covering the topic on assessing customer behavior activity to quantify the level of engagement the customer has on a SKU by SKU basis…put the product in front of them they are most likely to purchase..
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Categories/
Departments
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What were those top viewed department or categories?
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If I’m not putting a product in front of engaged customers, I’m putting a category.
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Value Added Pages
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What value added pages were viewed? Did they view my loyalty program?
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Identify the level of engagement with my brand, customer looking at ship tables, customer service pages, loyalty programs pages carry a higher level of engagement with my brand..and are inherently more valuable.
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Acquisition Source & key words
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Where did they come from and what drove them to my website.
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If they showed up to my website from Google looking for Nike Running Shoes, what product should I put in front of them to make the buy?
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More
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This is a primer…a blog posting, not a book.
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Hmm…maybe I should write a book? Marketing strategies in free form prose, or haiku…
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So…now that you’ve identified the data, what are you going to do with it? Most web analytics solutions can create a feed.
Feed (Fe-ed verb)- A process resulting in an export of scenario driven data that includes all in the table above, in addition to any information that may have ever been captured about that customer in an conversion process (capturing an order, email sign up, catalog request, contest entry).
Your job? Turn the feed into dollars…so let’s assume that the web analytics company is going to push this data into an eMail Marketing Solutions provider, like ExactTarget. Hey – imagine that…using ExactTarget as the example….hmmm….must mean we already support this!
Bringing a knife to a gun fight
I had the privilege of consulting with a major electronics retailer on their remarketing strategy…their goal was very simple. Put the SKU that the customer was most engaged with, but did not purchase, back in front of them in a monthly email promo.
The email itself was pretty simple. It featured a large primary offer section (free shipping, yadda) and a grid of 8 products below it. Now, this retailer’s strategy was to be a little sly…using dynamic content (a process in which content optimizes itself for the intended recipient)– the email would include product that aligned to general interest capture as demographic data (I like computers and digital photography – I’ll see new cameras photo printers, and multi-media laptops). However one of these 8 featured products was special.
The featured product on the far left was using a new technology called Content Syndication (or Dynamic Merchandising - for our retail clients), which allows me to reach out to the customer website and request a specific product for a specific customer. In this case, the request was very dynamic. If the customer was a new customer (not in the DB as a converted customer – showing as a $0 customer), I would request content that included the SKU and a promotions code good for a 10% discount. The website would return the product, with strike through pricing illustrating the discount, and hard coded message “Hurry, supplies are limited”. If the customer was an existing customer, no promotion code was carried and the targeted product displayed with standard pricing. In either situation if the product was NLA or back ordered, the SKUs would be replaced with a default SKU.
UPDATE: This is one approach of about 6 unique strategies for product inclusion in remarketing emails. Other approaches are far more subtle, others overt…all have merit. Your formula for success is based on your market, your segmentation strategy, and a hand full of other variables.
Is that sorcery…some kind of Voodoo?
No, simply technology. This uses a process that ExactTarget developed called Content Syndication. It allows merchants to use their existing website logic to push products, categories, search results and much more into an email.
Many merchants use Content Syndication to put cross sells into emails, or to power marketing managed transactional emails…really almost anything you want to accomplish. There are some merchants who no longer worry about putting product into their email at all, allowing Content Syndication to reach out to your website to pull an “email specials” department directly …and best of all…your design and product availability rules are all maintained.
The take away?
This is an example (one of 30) on how leveraging data in your web analytics solution, combined with your eComemrce platform, and a robust email solution can be used to dynamically include highly targeted product within your email strategy. The key concept being - don’t guess about what product your customers are interested in, when your customer are telling you every time they visit your website. Remember that your web analytics platform will tell you EXACTLY what products they interested in and, using qualitative/quantities SKUs level analysis, will tell you how interested in those product I am.
And YES…you can do this. Virtually every merchant can. Data feeds are largely supported by virtually every web analytics solution.