Marketers need real-time actionable data concerning the effectiveness of their websites and online marketing campaigns, according to Richard Sheppard, Vice President and General Manager of web analytics firm Coremetrics. With the growth of online video and mobile advertising this becomes even more challenging, he says.

NMK spoke to Sheppard to see how the company helps marketers gain information to adjust their online activity and content to increase customer acquisition, conversion and retention at a time when return on investment is closer scrutinised than ever.

How does Coremetrics’ approach work and how it is different from other online marketing tools?

Coremetrics allows marketers to capture every click of every visitor over time (across web sessions) and enables them to respond to customer demands quickly and profitably. 

There are a number of free but restrictive web analytics packages available that provide weekly updates on the number of visitors a site receives and pages viewed. Obtaining data in real time is critical. Marketers need to adapt campaigns as they run. Simply counting the number of people that visit, rather than the visitor’s journey across activities, means they are unable to segment.

Instead, Coremetrics allows marketers to deliver targeted experiences and identify sales opportunities based on customer behaviour. It can be integrated into websites to automate responses, such as cross- and up-selling opportunities and enable marketers to target consumers with the most relevant message throughout the buying cycle.

What is the challenge presented by online video and mobile analytics and how can companies best monitor and evaluate?

Device fragmentation refers to the numerous mobile handset models available and their different operating platforms. Unlike online marketing, where marketing materials need to be tailored for Macs and PCs, it is no longer simply possible to create two versions of a campaign. Instead, hundreds of mobile devices require a different format and analytics providers must be ready to adapt.

It is also important to note how differently consumers behave on different channels.  Consumers using their mobiles for example, are likely to have a focused objective with their searches so they can find information quickly while on the move. On a PC they might be searching without a specific or time critical purpose.

The challenge that online video presents is that once the video is no longer on your server, it is very difficult to measure. There also lies a problem of how should you measure a video’s effectiveness?  Should it be how many users click on the video, the average time spent watching it, or where a consumer goes afterwards?

Marketers can effectively monitor and evaluate these new channels measuring customer behaviour against campaign objectives as with traditional media. In this way it is possible to identify trends and use the data efficiently. 

You say marketers are struggling to convert real-time analytics data into actions to achieve their marketing goals. Why is this and what is your advice?

Many marketers don’t have access to real time analytics data, as most analytics tools produce weekly or daily reports.  However, in the online arena where communication occurs in real time, speed and timing is crucial to digital marketing success. 

When choosing an analytics provider, marketers should ask the right questions: How do they capture user data? Can they capture data in real time? Can they create a profile of each individual consumer? Can they automate cross sell and up-selling suggestions?   

What are the key issues in the analytics space at the moment?

Identifying which marketing channels are effective is a key issue in this difficult economic climate. With less marketing pounds to spend, it is essential that analytics tools are able to inform marketers which channels are most effective and which compliment each other to provide a high return on investment. 

The rise of mobile following the release of the iPhone and Google Android is also significant as marketers are just beginning to experiment with this channel. Reliable, actionable analytics are essential to its development and to enable them to unlock its marketing potential. 

How can the industry overcome those challenges?

Marketers need to employ tools that provide a holistic view of campaigns and move away from a last click approach to truly understand the scope of conversions and where to assign marketing budget. Traditionally, the last click made before a purchase has been attributed to the sale, but this is simply a snap shot of the consumer’s behaviour over a period of time. A consumer might have touched upon numerous channels before arriving at a purchase decision, the last in the journey, not necessarily the most persuasive. 

What is the worst mistake marketing managers can make when addressing online marketing?

A common mistake of marketing managers when addressing online marketing is not taking advantage of the digital trail of information that consumers leave behind. 

Customers’ needs, and not shiny new technical capabilities, should be central to marketing managers’ strategies. Marketers should not assume, for example, that using online video would be successful simply because it is innovative and only include it if it is the most effective way to communicate with their target audience. 

During the credit crunch, consumer habits are changing. With limited budgets and greater expectations, consumers are trading down, looking for value and switching providers where possible. The key is for marketing managers to constantly measure consumer behaviour and listen and adapt accordingly.