MarketingSherpa Blog

“The best research is when individuals pull out their wallet and vote with cold, hard cash.” – my first boss

My first experience in marketing was working with a specialized publishing company. I had the privilege to work on exciting products with sexy topics such as “human resource compliance regulations.” Trust me when I tell you there is no better ice-breaker at a party than talking about a ground-breaking court ruling that will change how your company meets compliance of the Fair Labor Standards Act (FLSA).

As a publisher, we used direct-response marketing to drive sales, with an aggressive program of direct-mail, email and telemarketing. And when it came to new product development, we were big believers in research. From customer surveys to industry research to focus groups, we used it all to make the best possible decision. At least, that was the general assumption…

Out of focus

You always have to test because many research tactics just help you achieve a best guess. And while a best guess is often closer to the truth than a random guess, it’s sometimes widely off the mark. In fact, I learned a valuable lesson one day when our company performed a focus group.

The members of this particular focus group were subscribers of a paid newsletter, and we knew that each person had subscribed by responding to a specific direct mail piece. That mail piece was extremely effective, with a powerful but somewhat provocative subject line and letter. Many people loved that direct-mail piece, but many hated it, so we wanted to get the opinion of the focus group members. When we showed the group the direct-mail piece and asked them if they would respond to that piece, 40 percent said they would never respond (if they only knew what we knew). Wow, we were shocked!

So, should we conclude that those 40% were bold-faced liars? Not necessarily. What we can conclude is that what people say they will do and what they actually do may be totally different. That is why research is only part of the equation, but if you want to sleep well at night, you have to take the next step…

Voting with their wallets

At the end of the day, the best research was when we tested the product and let the customers in the marketplace determine with their wallet if it was a viable product. We would test critical elements, like book title and price, and very quickly we would know if we had a winner or not.

Yes, all of the surveys and research were necessary to get started, but the most critical research was in our testing program. Testing is an amazing research tool. Regardless of the conversion you are trying to achieve, when your prospect takes (or doesn’t take) an action, you a have a valuable piece of information. Your conversion goal may be an event ticket sale, a white paper download, an email newsletter signup, or hundreds of other possible actions, but one thing never changes – the action you are seeking to drive can be tracked.

And if you’re ready to measure when your prospect engages with you, that is when the learning begins.

So, I’m thankful for that boss early in my career telling me repeatedly that the best research is when individuals pull out their wallet and vote with cold-hard cash. Over the years, I’ve had many experiences when individuals tell me they are going to do something but until they actually do it, I’m a little skeptical. (Editor’s Note: It’s true. Todd told me he was going to write a blog post for quite awhile. Now, I believe it.)

So gather as much research as possible, but always remember that cold, hard cash is a pretty sweet piece of research.

Related resources

Are Surveys Misleading? 7 Questions for Better Market Research (Members Library)

Marketing Research and Surveys: There are no secrets to online marketing success in this blog post

Focus Groups Vs. Reality: Would you buy a product that doesn’t exist with pretend money you don’t have?

Never Pull Sofa Duty Again: Stop guessing what your audience wants and start asking

A new report from ExactTarget and CoTweet reveals interesting differences in consumers’ motivations and habits when connecting with brands via email and social media. Take a look to find out more about why your customers are listening to you.

The report (you’ll be asked for an email address and phone number) is the result of three types of focus groups conducted with 44 people, and a 1,506-person survey (see methodology). It is loaded with interesting stats, such as:
o 38% of U.S. online consumers are fans of a brand on Facebook
o 5% follow at least one brand on Twitter
o 93% receive at least one permission-based email per day

The report offers plenty of other great metrics, and touches on useful topics, such as the motivational differences between consumers who first check email in the morning and consumers who first check Facebook. Check out the report for more.

The report also offers great best-practice advice for communicating with customers via social channels. However, there was one piece of advice I want to offer a different opinion on.

The report suggests that marketers avoid promoting exclusive, channel-specific offers in social media, and that “tone and content should be the primary differentiators in our channel strategies, not promotions.”

In general, this is sound advice. Integrating campaigns through multiple channels always drives stronger performance. And you do not want to condition followers to receiving special deals.

However, I feel like marketers should throw their social media followers an occasional treat. They are often truly fans of your brand. I do not think it could hurt to make them feel special, say, once every six months.

The “treat” does not have to be a discount or offer, either. For example, it could be a hint of a product launch sent to the audience two days before a press release is issued. And if it is a deal, it does not have to be exclusive to social media followers. Maybe, just once, they receive a coupon code a few days before your email subscribers.

How do you feel about occasionally giving social followers and fans special treatment? Waste of time? Vital display of gratitude? Let us know…

Many marketers have yet to explore mobile webpages as a marketing opportunity. If you are putting off tests because you think they are too complicated, take a look at this case study on mobile page testing we published today.

Mike Brown, VP, Internet Optimization, Vegas.com, and his team tested if catering to a mobile audience could improve site performance. The team showed mobile visitors a homepage and category pages designed for their devices. The test was a proof-of-concept on whether to invest in an end-to-end mobile experience for Vegas.com.

The tests successfully improved site metrics such as bounce rate and conversion rate (see the case study for details), and Brown’s team plans to rollout more mobile pages this fall.

Brown said these tests were easier than his team anticipated. From our conversation, I understood two criteria the team met to successfully run them:

– Mobile traffic present

Testing mobile pages only makes sense if your website receives mobile traffic. The team looked at its site analytics and noticed mobile visitors accounted for 7% of traffic, and growing rapidly.

– Testing and page design expertise

The team had extensive testing experience with Brown as the head of Internet Optimization. Also, the team used SiteSpect‘s multivariate and A/B testing tool to run tests. SiteSpect team members helped Brown’s team learn to create mobile pages, which Brown noted was surprisingly easy.

So if your team has capable developers, some mobile traffic and good testing experience, there should be little preventing you from running similar tests. And remember: you don’t have to dive in with a full investment. Brown’s team only dipped its toe and is now comfortably moving forward.

There is an array of webpage testing solutions available, helping marketers improve their landing pages, homepages and other online real estate. With so many options, it’s easy to get wrapped up in selecting tools, setting them up and testing them.

The problem is some marketers will spend months selecting and deploying a tool only to A/B test button colors, or different images on the same layout, says Lance Loveday, CEO, Closed Loop Marketing.

“To me, that feels like running 25 miles of a marathon and walking the last one.”

Time is much better invested in researching page data and designing tests that have the strongest likelihood of success, Loveday says.

“90% of your time should be in the planning and actual analysis and coming up with insights, and 10% should be in the technology.”

We spoke with Loveday for an upcoming MarketingSherpa article on how to select better landing page tests. One key to Loveday’s strategy is gathering thorough research, including:
o Analytics data
o Click-tracking analysis
o Qualitative usability studies
o Expert reviews

“We try to marry up quantitative analytics data with qualitative user experience and user profile information to develop some hypotheses for what the problem areas [on a page] might be,” Loveday says.

By digging through this information, your team can identify areas for improvement, attempt to diagnose problems and test solutions. Furthermore, you can estimate tests’ potential impact and prioritize those expected to bring the greatest benefit. Keep an eye on our Great Minds newsletter for more information.

People who follow your social media updates are likely fans of your brand. Their motivations may vary, but if they’re reading and responding to your content, then they know who you are and they like hearing from you.

“It’s not really surprising that, like search traffic, social media traffic tends to be very qualified,” says Maura Ginty, Senior Manager, Search and Social, Autodesk. “It can be small in volume, but it’s really qualified.”

Ginty’s team uncovered this insight by monitoring social media traffic to Autodesk’s website and analyzing the actions visitors took after arrival. Obtaining data around social media is not difficult, Ginty says. The hard part is using it.

“I think people end up feeling like the data is going to answer their question, but it’s the interpretation of all that data and the filtering of all that volume that really helps provide insight into what to do next,” she says. (Keep an eye on our Great Minds newsletter for an up-coming article on how to improve social media measurement).

Ginty’s team started synthesizing data to uncover the social impact of online marketing campaigns, in part, by using a tool created with Covario. For example, the team can calculate the velocity of a marketing message — the number of people a message reaches in a certain amount of time in social media — and combine it with a sentiment analysis. This information helps the team gauge how quickly messages spread, how people respond, and which efforts have strong social appeal.

“We’ve seen from different areas that a lot of the push of information will end up happening in the first 24 hours,” Ginty says.

Social media is a new channel with unique brand/customer interactions that can be tested and measured. I am excited to see how other industry leaders will start measuring and tweaking their social efforts to improve everything from brand image to conversion rates.

Are you doing any testing in social? Let us know in the comments…

Tracking, integrating marketing channels and smaller budgets are among CMO’s top challenges, according to a recent survey of more than 100 consumer-targeting CMOs. Aprimo and the Argyle Executive Forum conducted the survey on April 29, 2010.

Here are some highlights from the report:

1. More tracking is needed

39% of the CMOs said correlating marketing activities to revenues is the “most broken” area of marketing. 27% reported that the growing requirement for ROI and accountability is driving the most change in their marketing strategies.

Two likely contributors to this situation:
o The recent economy’s pressure on marketers to justify their budgets
o The unprecedented tracking potential offered by digital marketing

2. Multichannel marketing is challenging

Also related to tracking, 37% of the CMOs said their biggest challenge is integrating and tracking multiple channels. 27% said lack of marketing channel integration was the “most broken” area in marketing.

Integrating marketing channels and tracking customer interaction on an individual level can provide tremendous insight — but it’s difficult to achieve. Many marketing systems were not designed to play nicely together.

3. Budget woes continue

28% of the CMOS said “doing more with less” is their biggest challenge today, showing that the rising economy has not yet lifted marketing teams’ budgets and staff numbers to their previous levels.

What do you think of these stats? Are you experiencing something similar? Are you on a totally different page? Let us know…

I spoke with several paid search experts over the last two weeks for an article about timing PPC ads to optimize performance, and an interesting side-topic came up.

Seeing which PPC clicks are helping your bottom line is not always crystal clear. For example, a consumer may click an ad on Saturday and purchase the advertised item on Tuesday. These slow-converting, or latent clicks help drive sales. But by how much?

One way you can help figure this out is by looking to see whether an ad’s search phrase contains branded terms. Branded searches are likely driven by another marketing channel — because the consumer knew your brand name. Conversions on generic, non-branded search terms signal that your PPC ad had a much stronger influence on the sale.

You can track these slow-converting clicks using cookies — but even that can be challenging. Consumers often search the Web at work on one computer, and surf at home on another. Unless you’re able to connect those two machines, you’ll likely be missing some clicks that later become sales.

The lesson here is you should track the behavior of consumers who click your ads as well as you can. Doing so will give you a better idea of which clicks are driving delayed sales, and that information can help you better allocate your spending.

Have you found a good way to uncover slow-converting clicks? Has it helped you much? Let us know in the comments…

Measuring your marketing is the only way to know which efforts are working and which are wasting money. Even if you can’t measure every impact, you should track as much as possible.

After looking at some data from MarketingSherpa’s 2010 Social Media Marketing Benchmark Report, I wonder how many campaigns are only half-measured, with half their impact open to anyone’s guess.

When asked ‘What is your organization monitoring and measuring to quantify social media impact?’ 50% or more respondents said they were tracking:
o Visitors and traffic sources
o Followers, fans and members numbers
o Commentary about brand or product
o Sentiment around brand or product.

Fewer than 50% of respondents said they were tracking:
o Search engine rank
o Lead generation
o Progress toward social media objectives
o Engagement with influential bloggers, journalists, Twitterers, etc.
o Sales conversion and other ROI metrics
o Competitive share of social media coverage
o Criteria to identify and profile audiences

Astoundingly, only 35% of respondents said they were tracking sales conversion and other ROI metrics related to social media.

Getting more website traffic, Facebook fans and comments is very good. But if you’re not sure whether that’s having an effect on lead generation or sales, many executives will ask: what’s the point?

Marketers across the globe are finding use with social media. But if you want the rest of your organization to take it seriously and to invest more in the channel, you should learn as much about its impact as possible. The data talks.

If social media is helping you learn more about your audience, get data on how that knowledge is improving your marketing. If it’s helping your brand’s image, find a way to quantify it. Hypothetical evidence is as solid as a wet paper towel compared to hard data.

Is your team measuring its social media impact? If not, what’s holding you back? Let us know in the comments…

Knowing which bloggers are most likely to embed or link to a video can help focus your pitching strategy. Take a look at a new report from social media business intelligence provider Sysomos to find out which bloggers are sharing videos.

Sysomos analyzed over 100 million blog posts from July to September 2009 to measure bloggers’ video sharing. The report breaks down the bloggers’s demographics and the services they use.

Below is some U.S. data from the report. Check out the full report if you want more detail and international data.

– U.S. Market Share
o YouTube – 81.6% of bloggers use YouTube to embed or link to video
o Vimeo – 10.6%
o Dailymotion – 1.8%

– Top U.S. Cities for Video Sharing Via Blogs
o New York, NY – number one worldwide
o Los Angeles, CA – number six worldwide
o Chicago, IL – number 10 worldwide

– Top U.S. States for Video Sharing Via Blogs
o CA – 19.0%
o NY – 10.9%
o TX – 5.4%
o PA – 5.0%
o FL – 4.8%

– Age of North American Bloggers who Embed Video
o 20 to 35 – 62.7%
o 35 to 60 – 25.9%
o 13 to 19 – 9.5%
o Over 60 – 1.9%
o Under 13 – 0.0%

Worldwide, males (60.33%) are more actively sharing video through blogs than females (39.67%). The most active days are Tuesday, Wednesday and Monday, respectively. The most active hours are 11 a.m. to noon, followed by noon to 1 p.m.

If you’re making viral videos, this data helps show who is most likely to share them on a blog. You can use it to help guide your pitching strategy, and possibly help decide if viral video is the right strategy for your audience.

I was doing some much-needed browsing of the blogs this afternoon when I noticed a post from Steve Rubel pointing out this Internet Stats tool on Google’s UK domain.

The tool lets you search and browse data on:
o Macro economic trends
o Technology
o Consumer trends
o Media consumption
o Media landscape

The topics can be broken into subcategories, and the data is supplied by a few dozen research companies. The tool does not seem to have a ton of data, which gives it a more random than comprehensive quality. But nonetheless, there are some interesting stats, such as:

o Users are 1.5 times more attentive when browsing YouTube than when watching TV.
– Motorola (with Mindshare) and GM, partnered with YouTube, December 2008

o 5% of all time online is spent on Facebook.
– Comscore, April 2009

o 34% of Brits spend a whole day trying to find the best holiday deal online.
– Greenbee.com survey, January 2009

o 50.1% of online shoppers who placed items in their shopping carts did not go on to place an order.
– Core Metrics, March 2009

o Japanese etail giants can make as much as one quarter of their sales via cellphones. Nearly half of Tokyo’s single females are accessing the mobile web more than five times a week, with the peak shopping time between 1pm and 3pm reflecting the part-time employment status of many young Japanese.
– Internet Retailing, May 2009

I do not believe that the tool has enough data to  be useful, yet, but there is plenty of potential. One thing is certain: the data is really, really interesting.