Use Market Research to Tie Brand Awareness and Purchase Intent to Sales

For years, I’ve been saying direct marketers are their own worst enemy when it comes to measurement. Direct marketers are good at measuring the things they’ve traditionally measured—response rates, cost per lead, cost per acquisition, etc.  But they’re not good at measuring the effect that their communications have on the non-responders; when, in fact, the effect of consistent branding in direct communications is what makes direct marketing powerhouses like Omaha Steaks and 1-800-flowers.com top of mind when consumers are ready to purchase (not to mention Amazon).

For years, I’ve been saying direct marketers are their own worst enemy when it comes to measurement.

Direct marketers are good at measuring the things they’ve traditionally measured—response rates, cost per lead, cost per acquisition, etc. But they’re not good at measuring the effect that their communications have on the non-responders; when, in fact, the effect of consistent branding in direct communications is what makes direct marketing powerhouses like Omaha Steaks and 1-800-flowers.com top of mind when consumers are ready to purchase (not to mention Amazon).

Even though consumers engage with brands on their own terms across multiple platforms, many marketers are stuck measuring the results of individual tactics rather than taking a holistic view of measurement. So when a single email or display ad fails to achieve the target level of attributable sales within a specific period of time, then they consider it a failure. Even though the communication has made an impact on those who didn’t respond, they can’t measure it, so they don’t count it.

And while many direct marketing practitioners now embrace the idea that their advertising has a cumulative effect of building a brand over time, most fall short of being able to quantify that ROI with meaningful metrics.

That’s where market research can help.

Consider the following word equations in light of how awareness contributes to sales for the top direct marketing companies:

Top of mind awareness + brand reputation + need = purchase intent
Top of mind awareness + brand reputation + immediate need = purchase

So it follows that if we can monitor awareness and reputation over time and index it to sales, then we can quantify the effects of those elements on sales revenue.

Start by surveying your prospects blindly—either through mail, email or search ads using relevant keywords. Offer an incentive that’s consistent with your product offering, e.g., “Save $$$ on cell phone accessories.” Ask respondents the following questions to determine the levels of unaided and aided awareness:

  • Which brands first come to mind when thinking of “category X”? (unaided awareness)
  • Which of the following brands (list) have you ever heard of? (aided awareness)

Get a better picture of the respondents’ product usage by asking:

  • Which brand(s) within category X do you “regularly” purchase?
  • Which brand is your favorite?
  • Which brand did you last purchase?
  • How often do you purchase this type of product?
    (Light, medium, heavy user?)
  • What percentage of “category X” purchases that you’ve made (within a certain timeframe) were “brand A”? (your share of customer)

For those who have used your brand, quantify purchase intent with the following question:

  • The next time you need this product, how likely are you to purchase “brand A”?

Next, index awareness levels to sales to sales revenues. Be sure account for category sales within the same time period. Your actual sales may have gone down, but the entire category may have gone down as well, and you may in fact have gotten more than your previous share of the category sales.

As you track these metrics over time, you will be able to quantify what a point of unaided awareness is worth in sales revenue. It’s one tool that will help you understand the effect that your communications have on sales beyond the responses that you can count directly.

Reinventing Direct Marketers

Staying relevant requires reinventing your skills and marketing approaches. That’s why today we’re launching Reinventing Direct, a new blog where we share what we’re learning about new direct marketing approaches in practical, easy-to-understand recommendations, all geared toward direct marketers, so you can reinvent yourself and become a catalyst for change in your organization

Staying relevant requires reinventing your skills and marketing approaches. Just over a decade ago, many direct marketers moved beyond direct mail and reinvented their approach by creating basic websites, using email marketing and more. But now a decade later, reinventing direct marketing core competencies requires understanding and using even more tools.

As we have evolved and reinvented our traditional direct marketing skills over the years, the editors of Target Marketing have invited us to evolve from our online video marketing blog to broader topics.

Today we launch Reinventing Direct, a new blog where we share what we’re learning about new direct marketing approaches in practical, easy-to-understand recommendations all geared toward direct marketers, so you can reinvent yourself and become a catalyst for change in your organization.

(If the video isn’t just above this line, click here to view it.)

We’ve chosen online competitive analysis as our first blog topic. Why? Because every thoughtful new business plan and marketing plan includes an analysis of the competition. In addition, at least once every year you should investigate what your competitors are doing online. It will make you sharper and more competitive.

Today you’ll learn about 10 tools you can use to compare how you stack up with your digital direct marketing efforts compared to your competitors. The tools we share in today’s video will give you data points on several areas of online marketing including:

  • Where to get a grade for your website’s overall effectiveness
  • Where you stand with SEO
  • Inbound link comparisons (with domain authority)
  • How your website performs on mobile devices
  • Traffic to your website compared to competitors
  • Engagement and reputation metrics
  • Demographic data comparisons of the age, presence of children, income, education and ethnicity of those going to your site versus your competitors
  • Social media comparisons
  • How your site ranks for keywords compared to competitors
  • Competitor’s daily pay-per-click budgets, average paid position, and the estimated value of daily organic traffic
  • How to know when your competitor has new information posted on the Web
  • The source where you can go back in time to check what was on a competitor’s website in the past

There are many online analysis tools available, and we encourage you to search for them and check them out. We also invite you to share your recommendations of other services that you have successfully used. Please post your recommendations in the comments section below.

The Adobe/Omniture Merger: What It All Means

It’s not often that the geeky world of web analytics gets some sexy news, but that was the case on Sept. 15, when content creation tool provider Adobe Systems announced its intent to acquire Omniture, the web analytics vendor, for $1.8 billion.

It’s not often that the geeky world of web analytics gets some sexy news, but that was the case on Sept. 15, when content creation tool provider Adobe Systems announced its intent to acquire Omniture, the web analytics vendor, for $1.8 billion.

The goal of the merger, according to Adobe CEO Shantanu Narayen, is to create a holistic way to develop creative content and measure the value of that content — be it video, web pages, mobile or social media — to “close the loop” in the content creation and content measurement worlds.

With optimization capabilities embedded in Adobe’s creation tools, designers, developers and online marketers will have an integrated workflow that’ll streamline the creation and delivery of content and applications, according to an Adobe press release. The optimization capabilities also will enable advertisers and advertising agencies, publishers, and e-tailers to realize greater ROI from their digital media investments, and improve their end users’ experiences.

While mergers happen every day, this one appears to be game-changing, at least according to the myriad of comments from vendors in the space that appeared in my inbox right after the announcement was made.

Russ Mann, CEO of Covario, said the merger is “a brilliant strategic move for Adobe, one that could change the rules of the game for digital media — from creation to measurement to monetization.”

He also offered specific examples about what the Adobe media world would be like. They include the following scenarios:
• Video developers and agencies will be able to build Adobe Flash creative with Omniture tracking codes implanted from the beginning, enabling them to track the views of creative across the web.
• Web design firms and e-commerce companies can create dynamic landing pages and rich internet ads via Adobe that have tracking and multivariate testing codes via Omniture. These codes will allow marketers to create pages and new forms of user-customized content.
• PDFs could be tracked, providing valuable metrics for the creators of such content.

Blaine Mathieu, chief marketing officer of Lyris — and former executive at Adobe Systems — said the acquisition demonstrates that the online marketing space is heating up.

“While the large enterprises that Adobe and Omniture serve will have the money and experience to understand the ROI of an integrated suite,” he said, “we believe this deal will also trigger marketers in midsized businesses to better understand the value of an integrated online marketing tool set.”

What do you think it all means? How will it affect your interactive marketing programs and strategy? Let us know by posting a comment here.

The Adobe/Omniture Merger: What It All Means

It’s not often that the geeky world of web analytics gets some sexy news, but that was the case on Sept. 15, when content creation tool provider Adobe Systems announced its intent to acquire Omniture, the web analytics vendor, for $1.8 billion.

It’s not often that the geeky world of web analytics gets some sexy news, but that was the case on Sept. 15, when content creation tool provider Adobe Systems announced its intent to acquire Omniture, the web analytics vendor, for $1.8 billion.

The goal of the merger, according to Adobe CEO Shantanu Narayen, is to create a holistic way to develop creative content and measure the value of that content — be it video, web pages, mobile or social media — to “close the loop” in the content creation and content measurement worlds.

With optimization capabilities embedded in Adobe’s creation tools, designers, developers and online marketers will have an integrated workflow that’ll streamline the creation and delivery of content and applications, according to an Adobe press release. The optimization capabilities also will enable advertisers and advertising agencies, publishers, and e-tailers to realize greater ROI from their digital media investments, and improve their end users’ experiences.

While mergers happen every day, this one appears to be game-changing, at least according to the myriad of comments from vendors in the space that appeared in my inbox right after the announcement was made.

Russ Mann, CEO of Covario, said the merger is “a brilliant strategic move for Adobe, one that could change the rules of the game for digital media — from creation to measurement to monetization.”

He also offered specific examples about what the Adobe media world would be like. They include the following scenarios:
• Video developers and agencies will be able to build Adobe Flash creative with Omniture tracking codes implanted from the beginning, enabling them to track the views of creative across the web.
• Web design firms and e-commerce companies can create dynamic landing pages and rich internet ads via Adobe that have tracking and multivariate testing codes via Omniture. These codes will allow marketers to create pages and new forms of user-customized content.
• PDFs could be tracked, providing valuable metrics for the creators of such content.

Blaine Mathieu, chief marketing officer of Lyris — and former executive at Adobe — said the acquisition demonstrates that the online marketing space is heating up.

“While the large enterprises that Adobe and Omniture serve will have the money and experience to understand the ROI of an integrated suite,” he said, “we believe this deal will also trigger marketers in midsized businesses to better understand the value of an integrated online marketing tool set.”

What do you think it all means? How will it affect your interactive marketing programs and strategy? Let us know by posting a comment here.

Google Analytics Gets More Robust

Last month, many online marketers got just what they were waiting for: news that new functionalities representing a major upgrade to Google Analytics were coming.

Last month, many online marketers got just what they were waiting for: news that new functionalities representing a major upgrade to Google Analytics were coming.

In an Oct. 22 blog post, Google said it has been speaking with its customers, Web analytics experts and customers of other analytics tools about additional functionality they’d all like added to Google Analytics. The company said it wanted to make Google Analytics “as powerful, flexible, and useful as a Web analytics tool can be.”

The new features include advanced segmentation, custom reports, a data export application programming interface, integrated reporting for AdSense publishers, multi-dimensional data visualizations and an updated user and administrative interface. Some of these features are still in beta test mode.

While all of this functionality is good news to Google Analytics users, the big news here is the application programming interface, says Jim Sterne, president of Target Marketing, a Santa Barbara, Calif.-based Internet marketing strategy consultancy. He’s also the founding director and president of the Web Analytics Association.

“The major complaint about Google Analytics was that the data were inaccessible,” Sterne says. “Now, with the API, people can download their data and slice and dice it all they want with whatever tools they like. This is a big step forward. Google Analytics was a wonderful tool for the price — now it’s an astonishing tool.”

In effect, Google has created a more robust Web analytics tool that will undoubtedly help online marketers improve their competitive edges and marketing optimization programs.