Data Driven : Multichannel Challenges

Conquering analytics in a world of multiplying media

Measuring the impact of marketing campaigns has become both complicated and enhanced in a multichannel world. Traditional methods of looking at cause and effect relationships between a set of activities and a set of behaviors no longer give marketers a complete or accurate picture of events.

Conquering the world of multichannel marketing analytics isn't as daunting as climbing K2. But if you are looking for an easy way to the top, you will be greatly disappointed.

With the right framework, however, you can make the most of this marketing challenge. By following this step-driven approach, you will be well on your way to mastering the art and science of the multichannel world.

• Make it a priority. Considerable effort goes into fully tackling multi-channel analytics. Having a clear sense of its importance may be vital to justifying the time and resources necessary to be successful. A 2009 McKinsey & Co. report highlighted two points that put this in perspective.

First, by 2011 the Internet will be used either as a research tool or as a sales channel in more than 45 percent of all retail sales in the United States. And second, consumers who shop across multiple channels (Internet, catalog, bricks-and-mortar stores, etc.) spend on average four times more annually on purchases than those who shop only one channel. That fact alone demonstrates why in today's world, multichannel analytics is important and relevant to every marketer.

• Inventory available data. The primary purpose behind tackling multichannel analytics lies in an ability to accomplish some seemingly simple tasks. These include the ability to successfully track, measure and analyze the impact of marketing activities over time and to provide the set of analytics that gives you or your organization intelligence that can be acted upon.

To accomplish this, first inventory all available data. Don't be afraid to think small here. While it is easy to focus on the most obvious data (sales revenue, conversion rates, call volume, Web traffic, etc.), there could be additional and less obvious data points that support the "why" behind the these numbers. Data also may come from sources that you have not previously explored.

A critical part of your inventorying of available data is to identify gaps or holes in your list of data points. By identifying missing data, you greatly enhance the ability to tell an effective story.

• Align data with business needs. Mapping data to the overall goals and performance needs of the organization is an important step. Fully understanding what data you need in order to guide key business decisions starts by answering the following:

• What are the primary and secondary goals of the organization or effort?
• What is the specific, quantitative measurement of these goals?
• What are the individual activities or actions associated with each measurement?
• What are the key drivers or indicators of the success or failure of each activity?

As you answer each question, identify which elements of your data inventory correspond to each point.

• Get your hands on it. The actual physical collection of data into one centralized place sounds like such a simple task, but an inability to do so defeats the effort before it has even begun.

By definition, multichannel marketing relies on data coming from multiple systems, people or resources. These multiplicities imply an innate level of complexity. If you rely on others to provide the information, be very specific as to your data needs and how data will be used. Put these needs in writing. Create a date for data collection, and schedule subsequent data delivery in advance.

And while the goal here is to assemble all of the data necessary to tell a complete story, don't let what might be temporary missing data points hold up the entire effort. If other people or missing systems are the culprits behind missing data, use the analysis and reporting process to further clarify needs and motivate others to make data collection a priority.

• Know your data. Know where it came from and what it is truly measuring. Understand the systems or processes that impact the data. Know what the data does and does not tell you.

This is not to suggest the data needs to be pristine or perfect. Let's face it, data rarely is. But you need to know the quality on the front end. For right or wrong, this allows you to understand how best to use the information and fully explain it to others.

• Organize the data. Assemble the data in ways that allow you to properly interpret it and tell a story. High-level summaries of key details work well. Numbers and graphics are good partners. Such representations help show relationships between various data points. Automated dashboard systems are popular tools used to organize and present multichannel analytics. Customized or off-the-shelf systems are available to meet nearly every need.

• Communicate, educate, repeat. Data has little or no value if it is not shared with others. While information may be "king," you don't want to be the only one with the key to the castle. Get into a set routine or reporting cycle for sharing the information.

Early in the process, schedule time with those who provide the data and those who receive the information. Use these opportunities to fact-check and create a clear understanding of your data sources, including how they came together and how the intelligence is being used.

Ongoing communication can change what and how you are reporting. Such redirection can help establish clarity and provide a better track to the success of your efforts. Circumstances and the opinion of others can result in just the right set of data or analysis necessary to be truly successful.

• External perspective. It may be very helpful to get an external point of view on your data and analytics. There may be outside resources that have benchmarked some of the same analytics you are looking at. They also may be good resources for helping you model the information and deciding what to do with it.

• Attitude is everything. Like most challenges (professional and personal), a proper attitude can make or break a situation. Multichannel analytics can present a complex challenge. But a well-orchestrated approach to the task, the ability to properly gather and interpret your data, and a thorough understanding of the needs of your organization are fundamental to achieving your goals.

Multichannel marketing is here to stay. The ability to track, measure and optimize it over time is driven by data plus the ability to analyze it and act upon it. Good luck climbing to new analytic heights.

Chad Giddings is executive vice president of marketing and planning at the Mission, Kan., direct marketing agency J. Schmid & Associates. He can be reached via e-mail at chadg@jschmid.com.

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