1. © dunnhumby 2008 | confidential eMetrics to Business metrics Why there are so many unusable websites

2. © dunnhumby 2008 | public 2 Before I start The web is just another channel. The future of the web is to break out of the silo and become just another part of the business. eMetrics analysts can measure in terms of business objectives and become significant to the business as a whole. This is good for the business. It is also good for the analysts.

3. © dunnhumby 2008 | public 3 Agenda ●Strategy & tactics our terms defined –What are brand metrics for? –What are eMetrics for? ●Using tactics to pursue strategy –Requirements for analysis –The steps to combining eMetrics with Business objectives ●The practical differences of a business perspective

4. © dunnhumby 2008 | public 4 Agenda ●Brand metrics and eMetrics our terms defined –What are brand & emetrics metrics for? –Combining the two ●Using eMetrics to pursue brand strategy –Test and learn –Data -> Insight ●Why usability is never actually resourced } Combining the two

5. © dunnhumby 2008 | public 5 Strategy & Tactics

6. © dunnhumby 2008 | public 6 Strategy and Tactics ●Strategy Global ●Tactics Local Long term Short Term All Channels Online

7. © dunnhumby 2008 | public 7 Strategy and Tactics ●Strategy ●Tactics Big Picture Sharp Focus

8. © dunnhumby 2008 | public 8 Strategy and Tactics Tactics are what you do when you know what your are trying to do, strategy is knowing what to do when you do not know what you are trying to do.

9. © dunnhumby 2008 | public 9 eMetrics must match brand objectives ●Emetrics are for measuring strategies not for driving them; this makes them essentially tactical ●Tying the tactics to the strategy is the road to success. Separating them leads to disaster.

10. © dunnhumby 2008 | public 10 Strategic and tactical metrics Brand goals Business metrics Online Goals Customer acquisition Registrations eMetrics Trade driving Brand Perception Clickthroughs Online sales

11. © dunnhumby 2008 | public 11 (Tactics) ●O●G●S●M●O●G●S●M Words Numbers Words Numbers ●Objectives ●Goals ●Strategies ●Measures Pursuing strategies : Using tactics

12. © dunnhumby 2008 | public 12 Pursuing strategies : Using tactics ●Objectives ●Goals ●Strategies ●Measures Drive Trade £s Online sales Transactions eMetrics gives us numbers for our online measures

13. © dunnhumby 2008 | public 13 What do we do that affects our metrics? ●Everything online affects how the site performs either directly or indirectly ●Everything the customer can perceive affects how our business performs, either directly or indirectly

14. © dunnhumby 2008 | public 14 What do we do that can be measured by eMetrics? ●All changes to our online presence can be measured using eMetrics ●The effects of offline changes on online behaviours can be measured using eMetrics

15. © dunnhumby 2008 | public 15 Are you integrated? : A checklist ●Do you have a joined up campaign calendar? ●Do you measure the effects of your offline campaigns on your website? ●Do you measure the effects of your online campaigns in terms of offline sales? ●Do you survey your customers online? ●Do you ask them about your web presence in store? By mail? Through all your channels?

16. © dunnhumby 2008 | public 16 What else should we be doing? ●Actively seeking offline metrics to measure our online effectiveness ●Tying display advertising to in store ●Tying search to in store ●Tying in store to online feedback ●Tying online research to in store ●Incentivising users to integrate online and offline (widgets, floor graphics, etc)

17. © dunnhumby 2008 | public 17 A few examples ●Muller Love Child ●Text for uplift ●Floor Graphics

18. © dunnhumby 2008 | public 18 What you need (The basics)

19. © dunnhumby 2008 | public 19 Underlying necessities ●Good Data ●Good Controls ●Good Analysis

20. © dunnhumby 2008 | public 20 Good Data ●Not misleading (must be representative of the whole) –The measure the things that matter  Sufficient for the analysis you are doing to be robust –Check statistical significance –You do not have to have 13 million users but it helps  Able to produce actionable insights –Knowing is no use unless you act

21. © dunnhumby 2008 | public 21 Good Data ●Good data comes from your customers ●Good data comes from the way you run your business ●Good data can be bought in, but rarely needs to be

22. © dunnhumby 2008 | public 22 Underlying necessities ●Good Data ●Good Controls ●Good Analysis

23. © dunnhumby 2008 | public 23 Good Controls A good control is: ●A group unexposed to/affected by the factor being measured ●Identical in all non measured factors to the experiment sample(s) –Same demographic –Same shopping habits –Same lifestyle –Same age range and distribution –Same external factors (date ranges, campaign exposure, etc) –Same... –Impossible to achieve

24. © dunnhumby 2008 | public 24 Underlying necessities ●Good Data ●Good Controls ●Good Analysis

25. © dunnhumby 2008 | public 25 Good Analysis The difference from the control &/or prediction to the test Comparisons show changes and trends Day-by-day Week-by-week Month-by-month Nationally Regionally By post code, even by individual store Year-by-year The difference from the control &/or prediction to the test

26. © dunnhumby 2008 | public 26 Data  Insight, the pitfalls ●Statistical significance –Select the gender of your baby ●McNamara Fallacy –Killing your top pages ●Rosser Reeves –Pirates prevent global warming

27. © dunnhumby 2008 | public 27 What you do (Also the basics)

28. © dunnhumby 2008 | public 28 The strategic circle Business metrics Action Measurement Information

29. © dunnhumby 2008 | public 29 The tactical flow eMetrics Analysis Data Information Insight

30. © dunnhumby 2008 | public 30 The tactical circle eMetrics with business metrics Analysis Planning eMetrics Information from Data Action and Measurement Actionable Insight

31. © dunnhumby 2008 | public 31 The art of marketing or the science of marketing? The art of marketing is: Taking our intrinsic understanding of what is compelling as being universal The science of marketing is: Measuring our effects as differences from a control and acting accordingly

32. © dunnhumby 2008 | public 32 Why we never do usability

33. © dunnhumby 2008 | public 33 Usability is a stealth problem It hides under the carpet or down the back of the sofa ●People walk for so many reasons that there is always an excuse –Poor product –Irrelevant offer –Customer searching for information not purchase –Poor SEO –Bad affiliate program ●You cannot tell if your site is unusable –When asked 4 out of 10 people who listed their task as purchasing said they failed to complete that task

34. © dunnhumby 2008 | public 34 The usability dilemma Usability is an easy way to make yourself look bad ●When it works you are in trouble Finding an easy win is a sign you have been doing something stupid ●When it doesn’t work you are in trouble Failing to find easy wins means you have been wasting your time To make matters worse a hard win is a risk of scarce resources without any certainty that it will work

35. © dunnhumby 2008 | public 35 Usability, why it matters ●Another site is just a click away But you cannot see why they left ●It doesn't affect clickthroughs it affects sales But eMetrics may not measure the sales ●It affects offline perception (sales) just as much as online But eMetrics are online only ●Finding a problem makes you look bad, but not finding it is worse when you are measuring in terms of business metrics

36. © dunnhumby 2008 | public 36 Conclusions ●Combining eMetrics with brand objectives is possible ●You do have enough information to do real analysis ●Marketing has come of age and can now move from being an art to being a science ●eMetrics has come of age, and is now ready to become a significant part of the science of marketing ●Measuring the web site in terms of its effects on business objectives changes the actions we take in a positive way

37. © dunnhumby 2008 | public 37 Questions?

38. © dunnhumby 2008 | public 38 thank you (Copies of the slides for this presentation will be Available to download via www.retailmedia.org)www.retailmedia.org