It’s been very popular among marketing types to talk about “the customer” but seek metrics for affirmation other than those based on or derived from the customer. Web analysts have followed their lead, and provided Marketers plenty of awareness, engagement, and campaign metrics. As I’ve said in the past, this is a huge disconnect. Does it make sense (analytically) to have discussions about customer centricity, customer experience, customer service, the social customer, etc. and measure these effects at the impression or visit level?
Is someone who visits or purchases or comments one time really a customer, for the purposes of analyzing “centricity” ideas and concepts? I think not. Visit metrics simply don’t work for understanding these customer concepts, because by definition they unfold over time, not as single events. Add in the fact most web activity is 1x in nature – even buyers – and you begin to realize that analyzing “traffic” yields very little in the way of “customer” insight.
From a Marketing perspective, hey, happy to have the 1x revenue, but these are interactions I’m not really excited about increasing spend on, knowing they will be a one-night stands. This is especially true when you also know re-allocating some of the funds spent on the 90% 1x-ers to the other 10% could double company profits!
If you have followed my writings over the past 12 years, none of the above perspective is new. What might be changing is this: more people in the online world are beginning to think the same way.
Continue reading Marketing to Focus on Customer. Analytics?
Has to be There
I find it really interesting that whenever there is a discussion of measuring the value of social media, there’s such a bias towards believing there is value in social beyond what can be properly measured. See the comments following this post by Avinash for a good example. Speculation is fine, but the confidence being expressed that a new tool or method will uncover a treasure trove of social media value seems un-scientific (as in scientific method) at best.
I don’t doubt there is some value in social media beyond what can be measured, as this has been the case for all marketing since marketing measurement began. These measurement problems are not new to social either: Marketing value created is often situational, it depends on the business model and environment. What works in one situation may not work in another.
To small local businesses who do no other form of advertising, there is a huge amount of relative value to using social media versus no advertising at all. Social advertising is much better than none, and since it’s free, the incremental value created by (properly) using social is huge. It’s also really easy to measure the impact and true value, since the baseline control is “no advertising”. Lift, or actual net marketing performance, can be pretty obvious in his case.
On the other hand, many companies are running lots of advertising designed to create awareness, and the incremental value of social as a “media” may be close to zero for these companies, or at least less than the cost to analyze the true value of it. Possible explanation: Social events such as “Likes” or comments are simply representations or affirmations of awareness already created by other media, so by themselves, create little value. In other words, events such as Likes might track the value of other media spending, but may not create much additional marketing value.
Continue reading “Missing” Social Media Value