Customer Conversion

Customer Conversion

Conversion Learning Objectives.

you will know about what is considered the most important outcome of any marketing activity conversion. you will be able to define what is conversion, discuss macro conversion and the metrics used for its measurement. Discuss how marketing touchpoints play a crucial role in evaluating channel effectiveness and explore conversion for various scenarios like non e-commerce or subscription models.

The top marketing strategies for Customer conversion

remarketing, conversion rate optimization in merchandising and personalization

Macro conversions

macro conversions are clearly defined and goals that can actually impact the bottom line of your business. Some examples, customer conversions could be completing a purchase, generating a qualified lead, contacting you for support, or applying for a job. Those are measured with metrics like goals, completions, transactions revenue, average order value, and conversion rate. In short, the only end goal of any website is to create value along with one of the ultimate goals we have seen earlier, increase revenue, reduce cost, increase satisfaction, which in turn will lead to profitability and long-term sustainability and survival.

In this respect, subscribing to a mailing list or sharing on social media are usually considered to be micro conversions. They are too far away from the real desired business outcome. What is your campaign leans toward brand marketing or direct response? It is very likely to use we will have multiple touchpoints across multiple channels before actually converting.

the role of marketing touchpoints in evaluating channel effectiveness,

Assisted Conversions

Assisted conversion is a concept that focused on touchpoints a customer goes through in the buying process. By default, the last touchpoint the last click will be credited for conversion. This can obviously lead to an inflation of some channels to the detriment of others, obfuscating the fact that some marketing activities happen early on. And we’re the ones that entice the user to come back again.

Ad cross-device the equation users using multiple devices like desktop, tablet, and mobile, and you end up with a complex mesh of channels and devices across any period of time. Looking at assisted conversion tells us if a given channel is most effective early in the process, doing brand awareness or if it is the last touchpoint before conversion, the result of a direct response.

Now that we understand how certain channels assist conversion, we can look at the more sophisticated concepts of attribution.

Channels and their impact on Business Outcome

Remember, we started with acquisition then engagement? A campaign might be good at bringing new eyeballs on your website, but do they convert and generate value for your organization? attribution is the science of assigning credit or allocating the value of a business outcome to the marketing touchpoint that a customer was exposed to prior to their customer conversion.

Ultimately, marketers want to understand the effectiveness of their campaigns. bringing traffic to your website will only get you so far in your optimization process. Thus, we need to know which activities are more effective at converting. We have a good definition of attribution, but it can take many forms.

Attribution Models

There are various attribution models. If you look at first interaction, it means your tactics are aimed more ad awareness or peripheral activities to attract new audiences. If you look at the last interaction, it means your marketing tactics are focused on lower-funnel activities where maybe only a little incentive is required to convince the customer to make a customer conversion.

Then there are variations. There’s time decay, which is good where when you want to customize based on your customer lifecycle duration, position base allows you to give more credit depending if they were early on in the process or later on in the process. Custom models are based on one of the default ones, but you can adjust the loopback window, to the number of days that you want to look back. You can adjust based on user engagement like time on site or page depth or even apply complex rules have your own.

Those solutions are typically fairly expensive in terms of investment, resources, and they also require more historical data. solutions like Google Analytics 360 include the past, creating data-driven models. Even with a data-driven model, attribution might seem closer to data exploration than merely picking one model and sticking with it.

Example

Let’s see an example of that. With the help of the attribution model compression tool, we can compare and contrast various attribution models and refine or our marketing mix.

This is what it looks like for a given eCommerce website. In this example, we are using first interaction and last nondirect click for E-commerce transactions showing the conversion in value sorted by changing customer conversion value. We see that display is much more effective as a direct response channel than a brand awareness one.

Conversely, paid search is slightly more effective as a brand awareness channel. Of course, we don’t have to work at the abstract channel level. We could drill down into specific source and medium campaigns and medium or dimensions to answer such questions as is Google or Bing better to do a paid search campaign aiming to increase revenue.

You can also create your own custom attribution model. Even for a pure-play e-commerce website. There are many things to consider before you trust any attribution data.

Attribution challenges

When you want to do attribution, you have to watch out for a number of challenges as muting return on investment of a specific touchpoint doesn’t really reflect the customer lifetime value. Doing attribution also requires a perfect marketing campaign taxonomy and tracking any failure will impact your attribution.

Driven attribution models like the shoemaker, his children who sometimes go barefoot proverb goes, even the Google merchandise store might have issues with their attribution, even for a pure-play. E-commerce website.

There are many things to consider before you trust any attribution data. When you want to do attribution, you have to watch out for a number of challenges as computing the return on investment of a specific touchpoint doesn’t really reflect the customer lifetime value. Do doing attribution also requires a perfect marketing campaign taxonomy and tracking any failure will impact your attribution.

It requires a way to identify the user as they use different devices or different browsers. Online-to-store transactions are more difficult to track. We could say assisted is quick under spot check. While attribution works at the campaign level and customer lifetime value would be at the customer level.

The type of campaign also plays a role in how it affects attribution. flighting versus continuing to launch your quick short campaign versus having a long-running campaign all the time. You want to run ads at specific moments or run those ads at all time. Given the environment keeps changing the user behavior, the technical tools, the competition is evolving. Even your own website keeps changing. Some experts are now talking about attribution impossible.

Media Mix Modeling

media mix modeling is the optimal combination of communication channels to meet marketing objectives of customer conversion. media mix modeling answers the following questions. How much media is enough? When do you need to start advertising on a specific channel to a specific audience? Which medium is most effective? Is it better to use flighting or continuously when our ads wear out? When do people don’t pay attention to your ads?  Conversion seems easier to track when it’s an E-commerce site but what about non-e-commerce or subscription-based models.

Conversion scenarios

Not every site is a pure e-commerce one. The concepts are actually surprisingly similar. So let’s look at an example of this nonprofit organization called nitric anzia. It doesn’t sell anything and has no revenue source online. no ads, no sponsorship, no eCommerce. They simply offer high-quality content and receive money from A fund created by a local media mogul. What do they do? Right?

Extensive Segmentation

They do extensive segmentation of their audience based on the month of pregnancy or baby’s age. Also, uses a variety of channels including the web, Facebook, YouTube, Twitter, and Pinterest. It gives a voice to their audience through polls surveys. comments and ratings. They track users and instead of simply tracking sessions, they leverage their webinar text platform to truly measure user engagement.

They use a marketing mix that caters to new and existing users across different channels and the majority of their traffic is coming through mobile and tablets. And all of these doesn’t cost millions of dollars. It only requires a willingness to adopt new marketing models and be creative. In this case, this site even uses e-commerce features to measure what they consider to be their product. Their articles.

Subscription Model

Now let’s look at subscription best practices. A business model where customers must be a subscription price to gain access to a product or service is a subscription model.

Think of Netflix, Spotify, or suffer as a service in general.

The digital economy has enabled more subscription models, your internet connection, your cell phone, listening to music on Spotify. For example, the five P’s are still very important in the customer lifecycle would probably be slightly different. Conversion becomes a subscription. And the concept of retention is even more important now.

Key Points of Customer Conversion

  • The conversion step of your customer lifecycle is where they finally agreed to do business with you.
  • The macro conversion Better make it an easy and delightful experience.
  • Macro conversions are clearly defined and goals that can actually impact the bottom line of your business.
  • Understanding the various touchpoints through assisted conversion spots, and attribution will help you adjust your marketing mix accordingly.
  • Regardless of the business model, the fundamentals of digital marketing remain the same.

 

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