When looked at from the “helicopter perspective ” there seems to be three points of threshold competitive activity that you simply have to get right, or all else is irrelevant. Having a few meaningful measures at those three points is essential to understanding the effectiveness of a marketing investment, and testing ways to improve.
- Share of attention of your target market
- Share of engagement from your target market
- Share of wallet from your target market.
Traffic to a site is a useful measure, but really is not all that important, it is what happens then that is important. Just counting traffic is like counting people walking past a pet shop, they may even see the dog in the window, but that does not mean they are in any way likely to buy one. Your conversion rate to sale of this casual traffic would be miniscule. The challenge is to get the attention of those who for some reason are in thinking about how nice it would be to have a dog. When those people walk past, and see your doggies, you have a chance of getting their attention, which is why there are always some cute pups in the window, to grab the attention.
Having seen your doggies, those who walk into the shop for a closer look have given you a share of their engagement, you have the opportunity to talk to them, find out what sort of dog they may like, a pet for the kids, companion for an older relative, or something to keep the bikies away. Whatever it is, you need to know in order to be able to make an offer that meets their needs. They may also be looking elsewhere, so the share of engagement is important, are they serious buyers, or just filling in 5 minutes to look at some cute pups?
To get a share of their wallet, you need to be able to make an offer that persuades them to buy from you. There are many alternatives to a pet shop, breeders can deliver a very specific dog that will fill a purpose, with all the vetinary stuff done, or you can go to the kid down the road whose dog is just about to have a litter after a night of indiscriminate passion with some unknown stray, and comes with all the risks of the unknown. Alternatively, you could just go to the pound and find something that takes your fancy and needs a home. Share of wallet can also include the share of the ongoing costs of having the dog, food, accessories medicines, vet services, even in time a replacement. Measuring each of these situations delivers knowledge you can use not just for this sale, but on an ongoing basis.
Back to our e-marketing challenges from the doggie shop. Following are some simple metrics that you could consider.
Share of attention.
- Social shares, from any social platform
- Bounce rate and visit time. These two go together, how long the landing page hold attention, and what did the visitor do then, leave, or go to another page, followed by another…
- Pages per visit. Clearly if just one page was visited, there is less attention given than if the visitor had gone to 3 or 4.
Share of engagement
- Click through rates for your call to action tags.
- Comments made, on the blog, and/or in conjunction with the social shares. It is easy for someone to click the twitter share button on a website, but it takes a greater level of engagement to click the button, then take the time to add an endorsing comment, and this social proof can be marketing gold.
- Downloads of information from your site
- Questions that come back seeking information and clarification
Share of wallet.
SOW is one of the most powerful measures on the success of revenue generation efforts, and almost always requires qualitative input. How you define the wallet shapes the numbers that will be generated. Our pet shop owner may choose to define his wallet simply as the share of sales of pets he generates, in his area, or he may include the accessories and food after the initial sale, and if he has a vetinary surgery service as part of the enterprise, he may or may not include that, depending on what is important to his understanding of the returns coming from the investments made.
- revenue per customer, or “basket” size
- Purchase “basket” contents,
- Customer return visits that deliver a transaction
E-marketing is the shiny new thing, different and potentially seductive, but in the end it is only the set of tools that is new, the principals of marketing still apply, the toolbox is just bigger and more complex. When you need help sorting the complexity, the experience of the StrategyAudit team is at your disposal.