With the digitisation of consumption, consumers are leaving traces of their consumer journey and consumption preferences for marketers to analyse every bit of data and information to make more informed choices in their marketing strategies. However, do marketers know whether or not they are using the right metrics for the right measurement?
Andy Dubickas, VP of global solutions consulting at Nielsen, opened up on his insights in measuring consumer engagement.
This article was done in conjunction with Nielsen, a sponsor for Marketing’s Digital Marketing Asia Singapore.
What kind of metrics are a top priority for marketers today?
Dubickas: Today, much of the industry still relies on metrics such as CPM and CPC. Yet, marketers are under more pressure than ever to prove the business impact of their efforts and the value of their team.
To be truly effective, marketers need to focus on metrics that impact their bottom line such as revenue, conversions or purchases.
If marketers are measuring branding marketing efforts, they should select a brand engagement metric such as landing page visits, content downloads, video views or other meaningful interactions a consumer has with a brand that will ultimately drive future bottom-funnel outcomes.
What are the aspects marketers need to be aware of when it comes to last-touch measurement?
Dubickas: In a last-touch model, the last touch point in the consumer journey receives 100% of the credit for a conversion event such as a sale or lead. Due to its history as the default marketing measurement methodology, this model is often used as a baseline to compare other multi-touch attribution models. It’s also easy to implement and use.
The problem is that it ignores the contribution of all previous interactions with a brand that influenced a consumer to act. Last-touch may seem straight forward, but it’s deeply misleading.
Marketers who only look at the last interaction simply can’t plan or allocate budgets properly.
What are some common client concerns when it comes to measurement?
Dubickas: Each client’s concerns tend to vary based on their measurement goals, business requirements and level of marketing sophistication. However, there are some commonalities we see across our client base, particularly as it relates to speed, coverage and comprehensiveness. Consumer behaviour changes by the day, if not faster, so clients want access to the most up-to-date performance metrics so they can keep pace with their customers and make the most effective optimisation decisions every day.
At the same time, new channels continue to emerge that clients want to jump on before the competition crowds in. So, they are also looking for performance visibility into these new and influential channels so they can broaden their advantage.
Finally, they worry about comprehensiveness. Today’s marketers are using more and more tools to plan, execute and measure the impact of their efforts, yet this vast number of technologies has created a paradox.
Marketers have access to more performance and audience data to inform their efforts than ever before, but the technologies they’re using produce different reports, using different metrics and taxonomies that make it difficult to see the whole picture. So there’s a fundamental need in the marketplace for a more holistic view of performance, as well as the strategic and tactical guidance to optimise efficiency and effectiveness across all marketing and media investments.
How can they determine what kind of KPIs fit the nature of their organisation?
Dubickas: Companies in which marketers have both clearly defined goals and executive-level support thrive. For this reason, it’s critical that marketing teams and management align on the business objectives and the KPIs that track progress toward achieving them. Establishing agreement on KPIs not only facilitates a holistic and integrated view of marketing performance, but also consolidates the strength and expertise of the full team across shared objectives.