7 Steps to Web Metrics Success

Kristine Kelley from Motorola facilitated this session, entitled “Metrics Framework for the Web and Interactive Marketing: How to Successfully Build/Deploy/Execute”

The goals for our session were to develop:

  1. An approach to determine key metrics and KPIs
  2. A process to define, capture and manage metrics taxonomy and reporting
  3. A governance model to support metrics framework

While others are B to B or B to C, we at Mayo Clinic are B to P (Patients), so that’s kind of a blend between the two. Kristine is concerned with measuring both B to C (buy that cell phone now) and B to B (with longer sales cycles, which make it harder to get the direct ROI from the web site.)

Here’s a synthesis of all of the breakout groups (and if I left important things out, please chime in:)

  1. Identify “Owner” of the project and what they want to accomplish.
  2. Begin with the end in mind. Define success and identify the steps involved in getting to the successful end.
  3. Identify Stakeholders within the company and an ambassador for each stakeholder group.
  4. Identify the universe of what could be measured (likely through a survey of each stakeholder group). Also define each measure so all stakeholders understand what each measure means and does not mean so they can judge relevance.
  5. Map the possible indications against the strategic goals and determine which ones are critical success factors. How meaningful is each particular measure in contributing to the overall goal.
  6. Measure against current sales and web data and benchmark against competitors.
  7. Establish a governance board for the measurement project that reports back up through the organization’s leadership to ensure that the data are collected and that the initiative has staying power.

John Kendig from VWR International also schooled me a bit on the high-level performance indicators for web marketing sites:

Clicks – how many people visit your site
Conversion – How many people buy something
Spend – How much do they spend

Typically, increasing any of those three factors leads to stronger sales, so you want to look for metrics related to these three categories if you are in the BtoC web marketing world.

As someone who spends most of my time in media relations and new media, this discussion was very helpful to me. Thanks to Kristine for facilitating!

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Joe Batista Keynote: The Last Three Feet

Joe Batista, Chief Creatologist at Hewlett Packard, gave the second keynote. He spoke about creating new markets based on what your company has as resources or assets.

His Key Principles:

  • Inventory of Assets: Discover, unleash and reorient everything!
  • Dialogue −Open dialogue creates opportunities to channel company assets, resources and energy around client’s business challenge
  • Alignment of business interests −Example: Personalized Medicine project HP has with Harvard (Mayo Clinic has something similar with IBM)
  • Synchronizing business assets −Example: Memory Spot (HP) is RFID technology that can be used to validate pharmaceuticals to prevent import of counterfeits.

To Summarize, he emphasized:

  • Creating business conversations for results− Create forums for dialogue
  • Aligning talent & company franchises with client business objectives− Focus on projects not products, develop team of value added agents, build “net new”value streams
  • Synchronizing assets− Discover, Unleash and Reorient suite of hidden assets within your organization for client success
  • Intersection of Marketing & Sales− Look to build upon your products and services you currently offer, look at your ecosystem, IP portfolios, business processes, business policy and practices and create new value streams to be marketed.

Joe says, “Seeing growth is not a matter of selling more of what you produce, but expanding the domain in which you can respond to your clients.”

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Customer-Centric Organizations Keynote

Liveblogging the first Frost & Sullivan keynote by Pamela T. Miller, Esq. She is Vice President, Market Strategy and Development, Medco Health Solutions, Inc. Her presentation is entitled “Creating a Consistent Customer Experience and Driving Customer-centric Thinking throughout the Organization.”

Pamela defines customer-centrism as “Focusing a company’s strategies and operations around customers rather than products, services, markets or internal structure.” She says customer-centric strategies can increase customer satisfaction, loyalty, retention and ultimately, the bottom line. (This is in keeping with Dr. William Mayo’s dictum that “The best interest of the patient is the only interest to be considered.”)

In a study of 2,500 telecom customers, a 10 point increase in satisfaction increase retention by 2 percent. In a study of 200 Fortune 500 firms, one percent increase in customer satisfaction was associated with a similar increase in market value. This seems pretty intuitive and common sense, but it’s nice to have hard data to confirm.

Pamela says a differentiated customer experience is an essential strategy for attracting and retaining customers, and people are willing to pay more for it. She told the story of Starbucks and how someone did a blind taste test with Dunkin Donuts and other coffees, and people couldn’t tell the difference. But the Starbucks atmosphere with quick service, comfortable seating, music, wireless internet and other customer experience differentiators has led to slaes growth and EPS growth that is double the industry average.

Key factors to her holistic approach to creating customer-centric organizations are (and I’m going to relate these to Mayo Clinic as a patient-centric organization):

Leadership – Commitment at the top. See the quote from Dr. William Mayo above. That quote has been boiled down over the years to: “The needs of the patient come first.” Pamela says leaders need to share financials and map them back to customer-centered goals.

Infrastructure – Need customer research and development, to make marketing and branding strategies customer focused. Mayo Clinic’s mission is to give the best care to every patient, every day. Hiring and training are hugely important; that’s why she recommends behavioral interviews in the hiring process (which is something Mayo does.) Other elements include reward and recognition (not necessarily financial), measurement and continuous improvement of key business processes, and analysis of competition and the market. “Once a customer is lost, it’s hard to get him or her back.” Starbucks believes in paying front-line employees well because they are the first line of exper

Process – Design processes to provide consistent branded customer experienceacross the organization.

Culture – This is, she says, the hardest part. People either have the basic behavior of liking to serve others, or they don’t. You have to hire the right kind of people, or as Jim Collins says in Good to Great, get the right people on the bus. Again, this is a Mayo Clinic focus through our behavioral interview process. We also work to “imbue” our vendors and consultants with our culture so they understand how seriously we take patient centricity.
Other companies Pamela used as examples include Commerce Bancorp, Nordstrom, Lexus, and Berkshire Hathaway.

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Frost & Sullivan Sales & Marketing Conference

The Frost & Sullivan Sales & Marketing 2007, East Executive MindXChange starts today in Alexandria, Virginia. Here’s the agenda for what looks to be a highly interactive learning experience. I’m looking forward to participating in a Tuesday afternoon panel moderated by Grier Graham of TechDirt, Inc. Other panelist include Peter S. Mahoney, Nuance Communications, Inc.; David Doucette, Fairmont Hotels & Resorts; Rick Short, Indium Corporation; and Jeremiah Owyang, Podtech.net.

I’ll be sharing highlights and insights from the conference here over the next few days.

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Pyromarketing by Greg Stielstra: Book Review

Pyromarketing by Greg Stielstra was one of the free books I highlighted here, with a promise of a future review.

The future is now.
Pyromarketing
In Pyromarketing, Stielstra exchanges the mass-market metaphor of the flood and the word-of-mouth marketing metaphor of the virus for one that is much more meaningful and useful: lighting a fire.

Stielstra says that while flooding market with advertising worked during the earlier mass media era when TV was new and choices were few, it is increasingly impotent in a time when consumers receive 3,000 or more messages each day (and sometimes it seems I have that many in my email inbox alone.)

Viral marketing likewise misses the metaphorical mark, because many consumers are immune to your messages, and therefore can’t pass them on. To use a non-marketing example, consider computer viruses. Macs have no appreciable problem with viruses not only because of Apple’s superior system software, but also because Apple has in the vicinity of five percent of the computer market. There isn’t a critical mass of potential carriers that makes it easy for a virus to spread.

As Stielstra analyzed the analogy of fire, he found that unlike other metaphors that break down when stretched too far, what he now calls Pyromarketing has great explanatory power.

“Every fire needs fuel, oxygen, heat and the heat from the combustion reaction itself. Heat excites the fuel, breaking its molecular bonds at the ignition point freeing the fuel’s electrons to abandon the fuel and join with oxygen in the surrounding air. Ignition temperatures vary significantly from one fuel to the next. The reaction gives off additional heat which excites neighboring fuel and causes the fire to spread.”
Just as fire depends on fuel, so does marketing. Just as ignition temperatures vary from one fuel to the next, so do the “ignition points” of consumers. And just as fire spreads, so excitement about products spreads. “In PyroMarketing consumers are the fuel and their ignition points also differ widely. There is money stored in their wallets, but there is a very strong bond between consumers and their money. Marketing provides the heat that excites them and, if it can heat them beyond their ignition temperature, it will cause them to exchange their money for your product or service.”

Here are Stielstra’s Four Steps to Pyromarketing (and incidentally, he practices what he preaches in the “Touch it with a match” step, by offering a free audio download of Pyromarketing):

  1. Gather the driest tinder: Focus your promotions on those people most likely to buy, benefit from, and then enthusiastically endorse your product or service. They are the only ones whose ignition temperature is within reach of your advertising. They light easily and burn hot. The driest tinder is where word-of-mouth wild fires begin.
  2. Touch it with the match: To the extent you can, give people an experience with your product or service. If you want people to laugh, don’t tell them you’re funny, tell them a joke. Experience is the shortcut to product understanding. It touches people deeply and generates more heat than advertising, igniting even the mildly interested.
  3. Fan the flames: Fanning the flames means giving people tools to help them spread your message throughout their social network. People spread messages more effectively than advertising. The fire is hotter than the match. This is why the process that spreads your marketing message must be different than the one by which it began. Leveraging the power of personal influence is the only way to expand your marketing fire beyond its point of origin (the driest tinder and mildly interested) to the masses. By understanding the process you can equip people with tools to exponentially increase their reach and influence.
  4. Save the Coals: Saving the coals means keeping a record of the people you encounter through your marketing so you can quickly and easily reach them to fan the flames or to tell them about new products that match their interests. This allows your marketing to build equity and keep pace with the needs of your growing business.

I believe this book has much to commend it, and the Pyromarketing metaphor has great explanatory value. He uses the examples of the marketing of The Purpose-Driven Life and The Passion of the Christ. His behind-the-scenes look at the Purpose-Driven marketing of both the Rick Warren book and the Mel Gibson movie does give some insights as to how those became mega-hits. Networking with pastors and churches was clearly an important way to gather a critical mass of those most likely to “buy.”

My only issue is that he applies his metaphor to the growth of Christianity itself, which cannot be explained in natural terms. Jesus’ disciples were not “the driest tinder.” They all abandoned Him on the night He was crucified. Saul, before his conversion on the road to Damascus to become the Apostle Paul, was burning with hatred for followers of Jesus. It was not anything inherent in their character, but rather the call of Jesus, that transformed the apostles. He didn’t choose them because they were the right ones; they were the right ones because He chose them. And Scripture says it was an outpouring of the Holy Spirit on Pentecost that added 3,000 souls to their number (Acts 2:41).

That’s where I think Stielstra takes it a bit too far, in making the growth of Christianity a case study for his Pyromarketing paradigm. If the goal would have just been gathering excited crowds and “touching them with the match” of Jesus’ teaching, that had happened well before the Cross. Jesus fed 5,000 men (plus women and children) because he had attracted large crowds already; then he said some hard things (see John 6), and most of them went away.

Jesus did not describe the Kingdom of Heaven as a fire, but as a farmer going out to sow seed far and wide (Luke 13.) The job of the church is not to identify target markets effectively, but to spread the Word, and to leave the growth in God’s hands (1 Corinthians 3:6). I believe the missing element of Pyromarketing as it applies to Christianity (and what is missing in many church-growth philosophies) is adequate recognition of God’s decisive role.

According to a couple of stories from 2005 (here and here), there was some controversy involving Rick Warren and his discomfort with having his book mentioned in Pyromarketing… and this led to a delay in publishing Stielstra’s book. Apparently it was published in September 2005.

But Greg Stielstra didn’t set out to write a theological treatise, and neither did I in this blog. I’m sure he means well in sharing his faith naturally, as just part of what he does as a marketer. His Pyromarketing metaphor holds together well and provides a useful framework for understanding many social phenomena and buying decisions, including those for items (such as movies and books) of a religious nature. I recommend you read it for yourself (or listen to it for free). It just needs to be understood in the context of a personal God who wills and acts, and is not bound by human psychology and marketing principles to build His Church (and in fact often acts counter to human wisdom to show His power.)

In a future post, I plan to discuss more areas in which I think Greg Stielstra’s Pyromarketing concept applies, and particularly how today’s technologies make it much easier and cheaper to gather the driest tinder, touch it with a match, fan the flames and gather the coals.

I guess this is a little heavier than my Weird Al posts, huh?

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