4 Attribution Models in the Age of Big Data

For marketers, attribution is the Holy Grail. For those unfamiliar with the term, attribution means determining what marketing channel or budget was responsible for generating a particular action. Without proper attribution, it’s pretty darn difficult to perform any kind of meaningful ROI calculations on your marketing spend. In fact, I wrote another post about attribution earlier this year or so ago titled “The ‘A’ Word—Learn It, Love It, Live It!,” which pointed out that in today’s marketing world, attribution isn’t always what it’s cracked up to be.

For marketers, attribution is the Holy Grail. For those unfamiliar with the term, attribution means determining what marketing channel or budget was responsible for generating a particular action. Without proper attribution, it’s pretty darn difficult to perform any kind of meaningful ROI calculations on your marketing spend. In fact, I wrote another post about attribution earlier this year or so ago titled “The ‘A’ Word—Learn It, Love It, Live It!,” which pointed out that in today’s marketing world, attribution isn’t always what it’s cracked up to be.

Now it’s no secret that attribution analysis is rather difficult to perform in an age of proliferating media, multichannel customers and, drum roll … Big Data. Think about it, how do you gauge which marketing channel was responsible for generating a sale when a customer was sent and read an email, received a direct mail piece and visited a microsite, Googled the company name and found the homepage, but clicked on a sponsored link leading to a landing page, went to and Liked a Facebook page, became a follower on Twitter, tweeted about it to his friends … and ultimately made a purchase using an App on an iPhone. Which channel gets credit? Email, direct mail, organic SEO, mobile, social? All of them? None of them? Some of them? It’s enough to make your head spin.

Now enter Big Data. In this column, I’ve written extensively about the challenge to marketers posed by Big Data. I know, it’s the meme du jour … seems like you read about it everywhere you go these days. Basically, Big Data is the massive accumulation of information that’s taking place across organizations as they market and engage with their customers and prospects across an ever-expanding proliferation of channels.

As customers and prospects interact with firms across different channels, the data continue to pile up. It’s this deluge of information and how to make sense out of it that is being referred to as Big Data. But, as I’ve written before, Big Data is really the problem—not the solution, per se. The fact that organizations are collecting all of this information is great. It’s what they are doing (or not doing, as you’re about to see) with it that’s most important.

I recently read a study done by the Columbia Business School and the American Marketing Association titled “Marketing ROI in the Era of Big Data.” The study was a survey of 253 corporate marketing decision-makers, director-level and above, at large companies. The results were striking.

They found that 91 percent of senior corporate marketers believe that successful brands use customer data to drive marketing decisions. OK, fair enough … couldn’t agree more. But, among those who are collecting data, a measly 39 percent admit they’re actually unable to turn this information into actionable insight. Pretty surprising, huh?

That’s not all. A whopping 65 percent of marketers admitted that comparing the effectiveness of marketing across different digital media is “a major challenge” for their business. An astounding 57 percent of marketers are not basing their marketing budgets on any ROI analysis whatsoever. And to add insult to injury, 22 percent are using brand awareness as their sole measure to evaluate their marketing spend. That’s right, as their sole measure. A direct marketer by trade, I almost spit out my coffee when I read that last stat.

But the shocking thing is based on my experience, I do not find this to be out of the ordinary. In fact, I met with one client recently and was shocked to learn that the client had basically thrown in the towel when it come to defining attribution, and had created hyper-simplistic ROI analysis by using a control customer group to whom the client didn’t market at all, and compared how much this group bought against the rest. Sounds pretty wonky, right? The crazy part is that even the simplistic model is astronomically better than the 57 percent who don’t even bother with ROI in the first place.

So, what are some solutions to the attribution conundrum? Well, there are several popular models that marketers are experimenting with, and each one of course has its plusses and minuses.

1. First-click attribution—credits the channel where a customer first engaged with the firm. On the plus side, this model actually attempts to discern where the customer journey actually began. The downside is that in today’s environment where marketing is often run in silos, it can be challenging to track customer engagement in a multichannel manner.

2. Last-click attribution—credits the channel where the last action took place (i.e., where the conversion occurred). On the plus side, this model is super easy to track. The downside is that it only measures the channel that’s best at generating the sale itself, and completely disregards how the prospect was initially brought into the fold.

3. Equal-weighting attribution—tracks all of the touchpoints where the customer engaged with the firm, and gives them all equal weight in terms of generating the conversion. The advantage of this model is that it takes a holistic view of the customer-vendor relationship. At the same time, this model overlooks the disproportionate role one channel may play over another.

4. Custom-credit attribution—a hybrid model created by the marketer based on its marketing strategy, customer base, and so on. If done right, a custom model can be highly effective, as it’s designed based on facts on the ground. The only downside is, well, you’ve got to create and test it—which is often easier said than done!

Okay, guess I’m out of room for this post, so I’ll end it here. In any event, I’d love to hear about what if any attribution model you’re been using, how it has worked out, and so on. Let me know in your comments.

— Rio

6 Steps to Building the Perfect Landing Page

Today, I’ve decided to go back to basics. And in the world of direct response marketing, nothing is more basic than the landing page. Having worked in the industry for many years, I can tell you from firsthand knowledge that no campaign can succeed without a Landing Page that converts. This is an indisputable fact. Try launching an email or direct mail campaign with a kick-ass creative that sends people back to the homepage of your wesbsite and see what happens. Inevitably, almost all of your hard-fought leads will evaporate into cyberspace, lost forever, destroying any chance of achieving ROI.

Today I’ve decided to go back to basics. And in the world of direct response marketing, nothing is more basic than the landing page. Having worked in the industry for many years, I can tell you from firsthand knowledge that no campaign can succeed without a landing page that converts. This is an indisputable fact. Try launching an email or direct mail campaign with a kick-ass creative that sends people back to the homepage of your wesbsite and see what happens. Inevitably, almost all of your hard-fought leads will evaporate into cyberspace, lost forever, destroying any chance of achieving ROI.

Don’t believe me? Want to know how big of a difference a kick-ass landing page makes? Huge. Think about it like this. I’ve seen top-performing landing pages convert upwards of 10 percent to 20 percent of visitors into leads or sales. By contrast, a generic Contact Us page on a plain-vanilla website will typically convert anywhere from 1 percent to 3 percent. I’ll save you the time by doing the math for you: This means you’ll covert anywhere from three to 20 times more visitors. Do those numbers turn your head? If so, read on for some tips on how to build a landing page that kicks butt.

  1. KISS, or Keep It Simple Stupid—Generally, when it comes to landing pages less is more. Essentially, keeping visitors focused on the key message is the name of the game. This means eliminating all extraneous details not directly related to the campaign at hand. Links to other pages? Delete them. Fancy and distracting design. Change it. Lots of extra content about your firm? Gone.
  2. Headline—When visitors arrive on your landing page, you’ve got at most 15 seconds (and probably a lot less) to grab their attention. And nothing grabs someone’s attention better than a catchy and hard-hitting headline. According to Jeff Ginsberg (@mktgexperiments), landing page headlines should “emphasize what the customer gets rather than does and be customer-focused.” Couldn’t agree more. If you’re new to the headline game, don’t try to reinvent the wheel. Check out successful campaigns and see what they used. Get a sense of what other marketers are doing, and remember that imitation is sometimes the sincerest form of flattery.
  3. Call-to-action—If you spent your hard-earned marketing bucks to drive someone to your landing page in the first place, bet your bottom dollar it’s because you want them to do something—express interest in your products or services by filling out a Web form, buy your product by whipping out a credit card and clicking submit on a shopping cart, etc. With that in mind, make sure your landing page contains a clear, concise and effective call-to-action that encourages the prospect to follow through and close the loop.
  4. Form—Unless you’re running a branding campaign—in which case you wouldn’t even need a landing page, right?—at the end of the user-engagement process you want to visitor to fill out some sort of Web form. Call it what you will—lead form, shopping cart and so on—but the act of filling out or not filling out this one vital page element is what will ultimately be used as a Key (if not the Key) Performance Indicator (KPI) that determines how well your campaign performed. When it comes to Web forms, the shorter the better. Fact is, nothing turns off or scares away Web visitors more than a long and imposing Web form. So make it short, sweet and to the point. Oh, and if possible, using technology such as Personalized URLs (PURLs) that pre-fills as many of the form fields as possible. Remember, the less there is to do, the greater the chance it gets filled out in the first place.
  5. Advertise security—Nobody likes to submit information on a website they don’t trust. In other words, flaunt your security credentials. If your page is secure and encrypted (SSL), make sure the security certificate is displayed prominently on the landing page. And if there are other security features your firm follows, darn right you should display them, too.
  6. Build credibility—Similarly to the last point, prospects fill out forms on landing pages because they trust the vendor. This means that it’s your job to tell your brand’s story in a clear, concise and compelling manner. The trick to this point is that because we’re talking about a landing page, you don’t have too much real estate in which to tell your story. In other words, talk about what make your firms and its products unique, but don’t waste too much space or verbiage doing so. If you want to tell a customer testimonial or testimonials, make them short and to the point.

Okay, I guess those are my best tips for landing pages. So go out and build some good ones. Trust me, you won’t regret it.

The Nuances of Promoting Your Video via Email and Landing Pages

Email best practices suggest some nuance from the norm when you’re offering a video to be viewed. And the same goes for a landing page. A few changes to both can make a difference in your success. In this educational video, we discuss how to make email and landing pages more effective for online video viewing, and we share with you an example of a campaign using these best practices, along with the results

Email best practices suggest some nuance from the norm when you’re offering a video to be viewed. And the same goes for a landing page. A few changes to both can make a difference in your success. In this educational video, we discuss how to make email and landing pages more effective for online video viewing, and we share with you an example of a campaign using these best practices, along with the results it produced.

In today’s edition, we review how your email and landing page can be presented when promoting a video, how a screen grab of a video with text in an email improves clickthroughs, and a technique to maximize impact for your call-to-action when it appears on a landing page sequenced with your video call-to-action.

As a bonus, we share with you examples along with the results of a campaign using these best practices we’ve described (watch the video to find out how to get access to the case study examples for yourself).

Which Costs More: Video or Direct Mail?

What are the economics of producing and distributing a direct marketing video? And, how does it line up with costs for direct mail? If you’re a traditional direct marketer who has lived and breathed marketing costs, then running the numbers should come naturally. For this discussion, we’ll use direct mail as the comparison because historically it’s the distribution channel of choice

What are the economics of producing and distributing a direct marketing video? And, how does it line up with costs for direct mail? If you’re a traditional direct marketer who has lived and breathed marketing costs, then running the numbers should come naturally. For this discussion, we’ll use direct mail as the comparison because historically it’s the distribution channel of choice for direct marketers.

We’ve created a “Video Budget Checklist” that helps you itemize cost comparisons of creative, production and distribution between video and direct mail. If you’d like a copy, email me using the link in the left column. It’s free for our readers.

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

Direct mail can come in all sorts of configurations. Low-cost postcards. A simple package of a letter and flyer inside an envelope. Or more expensive with multiple enclosures such as a letter, fold-out four-color brochure, lift note, order form, reply envelope and outer envelope. Sometimes the outer envelope is a custom size or has an oversize window, or there are expensive die-cuts on cards or tip-on elements that are outside of typical print configuration.

The fixed costs to create each of these packages by employees, agencies or freelance creative teams are pretty broad, from several hundred dollars to well into the five-figures when using proven, top-flight direct response creative professionals.

A wide range of configurations can apply to video production, just as it can to direct mail.

You can pop out a 45-second video using your Webcam or flip-camera and post it on YouTube. You just have to ask yourself if the poorly lit, distracting background, muffled or echoey sound of that presentation exemplifies your organization. Alternatively, the video could be purely voice-over with words scrolling along on the screen. Or you can make it visually more alive with photography images or stock video footage. At a more costly level, you might shoot testimonials or interviews in a studio or shoot on location to demonstrate your product. Of course, length impacts cost (just as the number of components impacts cost in direct mail). There are a lot of variables that go into video production, just as there are for direct mail.

The point is this: Start with a budget you’re comfortable with, talk with writers (ideally writers experienced in both direct response print, online and video), develop a video script and storyboard, and work with a skilled video editor. Don’t just be wowed by special effects on someone’s demo reel. Dig in and learn what results were produced from some samples or case studies. You might just want voice-over with images on screen. (See our last blog post for an example of a 3-minute video and details of how we adapted it from a direct mail package.)

If your personality is a draw, you can record yourself on a small camera that can fit in a pocket with a lav microphone for under $200, total. Make sure you have good lighting and background. Or spring $500 or so and get a green screen and lights. That’s the equipment we use to shoot our video for this blog. Be aware, assembling the right equipment and editing software is the easy part. Knowing how to use it all to your best advantage comes from training and practice—or hiring a pro.

Distribution Costs
For direct mail, you have list costs if you’re renting names, data processing, printing, lettershop and postage. The cost can range widely. If you’re testing in small quantities, you’ll pay more per piece.

Knowing the volume of prospects or prior customers to mail, the marketer calculates how many responses are needed to make a specific profit (or break-even) objective. Translate that number into a required response rate to meet your objectives—your allowable marketing cost—and presto, you can use the test of reasonableness to see if the numbers pan out.

For video, your distribution cost is driving viewers to your landing page. You might email your customer file, or rent a list, and give the reader a compelling reason to click to your landing page to watch the video, possibly opt-in for more information, or attempt to convert to a buyer then. You will need to include the cost to set-up the landing page and related items.

We suggest you begin with a budget where your objective is to create a video for the amount of money it would cost to produce a moderate to elaborate direct mail package (although video production on the cheap is possible—and might work).

Then compare the cost to print and mail a direct mail package versus that of emailing (whether it’s to customers at a low cost to email, or rent an email list at a higher cost). And add in the cost for developing your landing page. Chances are your cost per contact will be less for email and the landing page, but as we all know, it all comes down to the cost per sale or lead so bring your focus back to this metric.

One example worth mentioning is that of the Dollar Shave Club. Perhaps you’ve read about it. A big success for a 1:34 video that reportedly cost $4,500 and after a few days generated over 12,000 orders. The video has now been viewed over 4.6 million times.

Bottom line: just as you’d run the numbers to see if it makes financial sense to use direct mail, you need to run the numbers for video, too. And you just might be surprised how favorable the numbers look to reach out and explore video.

P.S.: Just out: comScore has released its April 2012 online video rankings data with a few notable metrics:

  1. 181 million U.S. Internet users watched nearly 37 billion online content videos in April.
  2. 85.5 percent of U.S. Internet audience viewed online video.
  3. The duration of the average online content video was 6.4 minutes.

Lights, Camera, Action: Video Helps You Stay in Touch With Customers

One problem that plagues B-to-B sales and marketing is coming up with relevant, timely messages for nurturing customer relationships. A territory-based sales rep may be trying to keep in touch with hundreds of contacts at a time, but struggles to find a steady supply of good-quality reasons to use to reach out—without being a pest. I recently ran across a particularly compelling solution to this problem: Personalized email that links to entertaining, but useful, videos.

One problem that plagues B-to-B sales and marketing is coming up with relevant, timely messages for nurturing customer relationships. A territory-based sales rep may be trying to keep in touch with hundreds of contacts at a time, but struggles to find a steady supply of good-quality reasons to use to reach out—without being a pest. I recently ran across a particularly compelling solution to this problem: Personalized email that links to entertaining, but useful, videos.

Here’s where I ran across this: Glenn Diehl, owner of the New York distributor of Skyline Exhibits, has a team of eight sales people selling custom trade show exhibits and portable displays to marketers and trade show managers in New York City and several northern counties. Diehl came up with a program whereby his reps can send to their contact lists emails embedded with a link to an informative video created by Mike Mraz, a trade show marketing expert with a creative knack for video production.

Mraz was already producing his “Today’s Trade Show Minute” videos every three weeks as a way to promote his own consulting and training services. His arrangement with Diehl includes access to fresh “Minute” videos twice a month, plus a custom landing page with a personal introduction from each rep.

Here’s a sample email (see the first image in the media player to the right) from Skyline rep Al Mercuro, who was the first at SkylineNY to adopt the program and make it part of his regular customer outreach. The cover note is in plain text, inviting customers to have a look at the latest “Minute” video.

Customers who click through find themselves at Mercuro’s dedicated landing page, which includes his friendly face, a short message, the “Today’s Trade Show Minute” video and a call to action (see the second image in the media player to the right).

There are three reasons why I like this program:

  1. The content is fresh, lively and relevant to both the recipient and the sales objective of the vendor. The videos deliver a useful trade show success tip in only 60 seconds.
  2. Outsourcing the video content to a third party like Mike Mraz ensures an ongoing supply of new material for Skyline’s customer communications. The relentless challenge of creating new content is one of the most common impediments (PDF) to long-term communications success for B-to-B marketers.
  3. The program is managed by marketing, but goes out over the name of the sales rep, providing tangible help in relationship building with the rep’s key contacts.

I learned from Skyline’s sales and marketing team leader, Frank Cavaluzzi, that the program is scheduled for some fine tuning this year. Currently, it’s up the sales reps to take the initiative to send out the email. Cavaluzzi is planning to streamline the process, make it more automated, so it’s a bit easier for both sales and marketing to execute.

How about you? Are you seeing productive new ways to keep in touch with customers and prospects?

A version of this post appeared in Biznology, the digital marketing blog.

13 Things You Must Do This Year To Boost Your Biz! Part Two

In Part One, I mentioned some great, low-to-no cost tactics to help boost your business this year, including affiliate marketing, content syndication, search engine optimization, online lead generation polls, viral marketing and cost-effective media buying.

[Editor’s note: This is Part Two of a two-part series.]

In Part One, I mentioned some great, low-to-no cost tactics to help boost your business this year, including affiliate marketing, content syndication, search engine optimization, online lead generation polls, viral marketing and cost-effective media buying.

Today, I’m wrapping up the list with even more tips and tricks to get the most out of your marketing efforts (and marketing budget!) this year.

7. Pay Per Click (PPC). Many people try pay per click only to spend thousands of dollars with little results. Creating a successful PPC campaign is an art—one that I’ve had success with. If PPC is new for you, then don’t start out with the big guys like Google or Yahoo, run your “test” campaign on smaller search engines such as Bing, as well as second-tier networks, such as Adbrite, Miva and Kanoodle. In addition, you must make sure you have a strong text ad and landing page and that the ad is keyword dense. You must also have a compelling offer and make sure you do your keyword research. Picking the correct keywords that coincide with your actual ad and landing page is crucial. You don’t want to pick keywords that are too vague, too competitive or unpopular. You also need to be active with your campaign management which includes bid amounts and daily budget. All these things—bid, budget, keywords, popularity and placement—will determine the success of the campaign. And most campaigns are trial and error and take anywhere from three to six weeks to optimize.

8. Free Teleseminars or Webinars. These are a great way to collect names for list building, then cross-sell to those names once they’re in your sales funnel. You can use services like FreeConferenceCall.com, where it’s a toll (not toll free) call. But in my experience, if the value proposition of the subject matter is strong, people will pay that nominal fee. Promote a free teleseminar or webinar to prospects (that is not your internal list). Remember, this is for lead generation. So your goal is to give away valuable information in exchange for an email address. You can have a ‘soft sell’ at the end of the call and follow up with an email blast within 24 hours. But the most important thing is getting that name, THEN bonding with them through your editorial.

9. Free Online classified ads. Using CraigsList or similar high traffic classified sites is a great way to sell a products or get leads. The trick is ad copy that is powerful and persuasive, as well as geo-targeting—picking the right location and category to run your ad in. Hint: think of your ideal audience. Ads are free, so why not test it out.

10. Reciprocal Ad Swaps. One of the best kept secrets in the industry: Some of your best resources will be your fellow publishers. This channel often gets overlooked by marketers who don’t give it the respect it deserves. In the work I do for my clients, I spend a good portion of my time researching publishers and websites in related, synergistic industries. I look for relevant connections between their publications (print and online) and list (subscribers). Let’s say I come across a natural health e-letter that has a list of readers similar in size to one of my clients, who is a supplement manufacturer. Since many of their audience share similar interests, cross-marketing each other products (or even lead gen efforts) can be mutually rewarding. Swapping ads will save you money on lead-generation initiatives. Since you won’t be paying for access to the other publisher’s list of subscribers, you can get new customers for free. The only “cost” is an opportunity cost—allowing the other publisher to access your own list. It’s a win-win situation. This technique also opens the door to potential joint-venture opportunities for revenue sharing (sales).

11. Guest Editorials and Editorial Contributions. Another popular favorite used in the publishing industry is editorial contributions. This is where you provide quality editorial (article, interview, Q&A) to a synergistic publication and in return get a byline and/or editorial note in your article. In addition to an editorial opportunity, this is a marketing opportunity. You see, within the byline or ed. note you can include author attribution plus a back-link to your site. Some ed. notes can even be advertorial in nature, linking to a promotional landing page. Relationship networking and cultivation come into play when coordinating these, as it’s usually someone in the editorial or marketing department that spearheads such arrangements. These are great for increasing exposure to other lists, which can be beneficial for increasing market share, bonding, sales and lead generation efforts.

12. Snail Mail. Direct mail is still a consumer favorite—and another good way to get your sales message out. It can be especially effective used in conjunction with another effort, such as an email campaign. Studies indicate that 70 percent of respondents prefer receiving correspondence via mail vs. email. As with any marketing medium, though, you can end up paying a lot between production costs, list rental costs, and mail shop/postage costs. The most costly direct mail packages are magalogs and tabloids (four-color mailers that look like magazines). However, 6 x 9 postcards, tri-fold self-mailers and simple sales letters are three low-cost ways of taking advantage of this channel. Note that copywriting, list selection and geo-targeting can be crucial for direct mail success, no matter which cost-effective mail format you pick. Although 100 percent ROI (return on investment) is what you should aim for, many direct mailers these days are content with 80 percent returns. This lower figure takes into consideration the lifetime value of the names that come in from this channel, because they are typically reliable buyers in the future and snail mail address are more solid—they don’t change as often as email addresses.

13. Print Ads. This is another channel that gets a raw deal. One reason is because it can be costly. To place an ad in a high-circulation magazine or newspaper, you could shell out serious money. But you don’t need a big budget to take advantage of print ads. If you don’t have deep pockets, consider targeted newspapers and periodicals. Let’s say you’re selling an investment report. Try using the Internet to research the wealthiest cities in America. Once you get that list, look online for local newspapers in those communities. These smaller newspapers hit your target audience and offer a much cheaper ad rate than some of the larger, broad-circulation publications. You end up getting quality rather than quantity. I once paid for an ad in a local newspaper in Aspen, CO, that had a flat rate of less than $500 for a half page ad. My ROI on this effort turned out to be more than 1,000 percent. Most important rule: Know your audience. That will determine placement and price.

Ed Ojdana at LeadsCon

If there truly is a rock star in the world of online lead generation, it is Ed Ojdana.

If there truly is a rock star in the world of online lead generation, it is Ed Ojdana.

Ojdana recently retired as global president of Experian Consumer Direct, a division that was created in 2002 to focus on the consumer credit management market. Experian Consumer Direct combined the operations of CreditExpert, Experian’s consumer credit management group, and ConsumerInfo.com (also known as FreeCreditReport.com), the largest provider of online credit reports and other credit-related information to consumers. Ojdana founded ConsumerInfo in 1995.

At LeadsCon, Ojdana spoke with Jordan Rohan, founder of Clearmeadow Partners, an investment firm that focuses on the Internet space. Previous to founding Clearmeadow, Rohan served as managing director and Internet analyst for RBC Capital Markets.

The two discussed trends in lead generation.

“Going forward, we are going to have to start tying more content to lead generation,” said Ojdana. “The landing page will have to have something more there than just an offer to buy a product or service. People today are looking for information.”

While Rohan thought Ojdana’s point was a good one, he wondered aloud whether or not there is a need for a “full-frontal” approach, where visitors click on a landing page with an offer they can buy immediately.

While Ojdana said there is a time and place for that kind of lead generation, the content play usually leads to better leads.

“If you’d like to just have folks buy an item on a one-time basis, that would work,” he said. “But the key to content is [how it can help build] lifetime value with the consumer, as opposed to the consumer signing up for something on an impulse.”

Rohan asked Ojdana to discuss other things a lead generator should do to generate quality leads.

Ojdana spoke of the importance of good segmentation.

“To do a good job of that, go back to your advertisers and really find out who their customers are,” he said. “ If you are [targeting ads to] a school, and 90 percent of the people who are converting are Hispanic, that means you have to get up there on some Hispanic sites, as opposed to blasting [ads] all over the place.”

He also said that lead generators should “live and die for analytics.”

All true words, indeed.