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The main advantage of online advertising is to allow the measurement and deep analysis of the campaigns performance. Via the leading tool, Google Analytics, we will give you advices on how to better measure your ROI and (re)define your goals in terms of conversions. To make it concrete, we will use 3 kinds of business models.
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MEASURE YOUR ROI VIA GOOGLE ANALYTICS
3 BUSINESS MODEL CASES
Digital Marketing First – 17th October 2013
UNIVERSEM: UNIVERSE OF SEARCH ENGINE MARKETING
• Digital Marketing Agency
• Founded in 2010
• A team of 8 people
• References: RTL, Carrefour, UNICEF
B B
MEASURE/TRACKING
“ I know half my advertising isn't working, I just
don't know which half. ” William Lever
(1851-1925)
Before …
B B
MEASURE/TRACKING
Today …
Each click can be measured almost every mouse move!
Link spendings with revenues
And take action based on those information!
B B
DIGITAL MARKETING
Nobody is interested in simple visits
Start by setting goals!
Measure and optimize
ROI on the Long-term is the key
Attract visitors
Convert
Measure Optimize
Repeat business
MEASURE/TRACKING
Facebook Ads LinkedIn Ads B
Segment your visitors and calculate ROI
Identify the most profitable segments
+15% +5%
- 12% +20%
-10%
+40%
10,000 impressions
+30%
B B
MEASURE THE ROI
TRAFFIC SOURCES REVENUES ANALYSIS
Social Media
SEO
B B
IMPACT ON THE BOTTOM LINE !
Define website goals that we measure and configure
Contact Quote request Subscription to newsletter E-commerce transaction ...
Set the value for each of these goals!
B B
MEASURE THE ROI
• Value of a goal completion?
• Maximum cost per visit?
3 business model cases
All data given afterwards are taken as example
and do not correspond to the real values
B B
LEAD GENERATION: SOPRA BANKING SOFTWARE
B B
LEAD GENERATION: SOPRA BANKING SOFTWARE
Total value of customers = 500,000€ * 30% = 150,000€
50,000 Visits 500 Contact forms sent 10 Customers
Value per customer:
150,000/10 = 15,000€
Value per contact form sent:
150,000/500 = 300€
Value per visit: 150,000/50,000 =
3€
1% 2%
B Facebook Ads LinkedIn Ads B
Configure the value of a goal completion Measure the ROI Discover most valuable traffic sources
Optimize the allocation of your marketing budgets Measure Return On Investments
LEAD GENERATION: SOPRA BANKING SOFTWARE
B
E-COMMERCE CASE: MEDIA MARKT
Facebook Ads LinkedIn Ads B
B
E-COMMERCE CASE: MEDIA MARKT
Facebook Ads LinkedIn Ads B
• Average order size: 50€
• Margin on each order: 30%
15 € margin per order
• Online Conversion rate: 3%
• How much can you pay per visit ?
50*0,3*0,03 = Maximum 0,45 €
ROI
B
SAAS BUSINESS CASE: MAILJET
Facebook Ads LinkedIn Ads B
SAAS BUSINESS CASE: MAILJET
Facebook Ads LinkedIn Ads B
Visits
Freemium users
Active users
Paying customers
Recurring customers
10%
50%
30%
70%
1000
100
50
15
10,5
The Conversion Funnel
SAAS BUSINESS CASE: MAILJET
Facebook Ads LinkedIn Ads B
Defining your maximum CPA, parameters:
Monthly Recurring Revenues (MRR): 50€
Gross margin: 75%
Churn rate: 3%
SAAS BUSINESS CASE: MAILJET
Facebook Ads LinkedIn Ads B
Lifetime value = MRR * Gross margin * 1
Churn rate
1
3%
Lifetime value = 50€ * 75% * = 1250€
We can pay up to 1250€ per new customer
TOOLBOX UNIVERSEM
Facebook Ads LinkedIn Ads B
http://toolbox.universem.be/
WEB ANALYTICS IN 3 STEPS
Facebook Ads LinkedIn Ads B
CONCLUSIONS
Facebook Ads LinkedIn Ads B
Determine the value of visitor’s actions
Measure and calculate your ROI depending on your business model
Invest where the ROI is the most profitable
CONTEST
Facebook Ads LinkedIn Ads
B
Contact Leave your business card in the box on our stand E23 and….
Win an Analytics Audit* !
*Worth: 800€
ANY QUESTIONS?
Facebook Ads LinkedIn Ads
B
Contact Sébastien François
Co-Founder & Digital Marketing consultant
+32 (0) 81 713 430
http://www.universem.be/DMF-2013.pdf