Waggener Edstrom Worldwide

While in San Francisco recently before the Webtrends Engage (#WTEngage) digital marketing measurement conference, I did some “touristy” things I’d never done despite countless visits there. I rode the cable cars (and marveled at the clever 100+-year-old technology), toured Alcatraz (who knew the most notorious prison was set among such wild beauty?), and even strolled to Fisherman’s Wharf (discovering on its fringe the one-of-a-kind Pier 23 Cafe). It was a good reminder that experience trumps assumption every time. Sure, I still think crooked Lombard Street is overrated, but it was exhilarating to walk up (up, up!) to it and see the city splayed out before me. Of course, I was reminded, doing is more rewarding than presuming!

This awareness perfectly frames the top three Aha! moments I had at the conference:

1. Data scientists rule the communications industry.

In a time when a surprise Super Bowl power outage lets brands’ tweets compete with $3.8-million-dollar commercials, we must continually reimagine customer engagement. Data — the right data, right now, analyzed right — is the Holy Grail for communicators. But it’s not easy:

• When you look at your data it isn’t all your data but just the data being tracked. We must rethink what we’re measuring. For example, Nielsen research has found no correlation between click-through rates and ROI; likewise, Facebook found that 99% of buyers bought even without actually clicking on ads they were exposed to.
• Metrics are bad for business if you don’t look at right metrics, e.g., week-one sales tell a misleading story compared with long-term profits when it comes to coupons.

2. Cross-platform strategies will determine the winning brands of the near future.

Tablet and smartphone usage is skyrocketing, and we’re using them to shop and broadcast these experiences (good and bad) ever more frequently. 25-40% of traffic to sites is mobile on average, but for many sites it tops 50%. A recent study found a 500% revenue increase realized from cross-platform customer engagement strategies. Consider:

• The average person looks at 12 sources before making a purchase, and 80% of customers won’t buy a thing they’ve read a bad review of. Content must be optimized and targeted to reach your prospects (with the right message) wherever they are in the customer journey, on whatever device.
• 76% of shoppers in one study said they use a smartphone when shopping. By 2017 there is estimated to be $90 million worth of annual mobile commerce, but 63% of companies admit to flying blind in mobile measurement currently. Those with savvy mobile measurement/optimization strategies are reaping big rewards.

3. Testing and optimization programs are nice to have today but mandatory tomorrow.

Amid the pressure of the “splinternet,” where paid, earned and owned channels are duking it out for precious marketing dollars, site testing and content optimization programs are springing up, but nearly half of them are under two years old. Companies that don’t implement and strategically expand testing and optimization programs soon will be left behind. The good news is quick wins pave the way for ongoing success:

• According to Marketing Sherpa, 89% of companies called optimization a priority for 2012 but had no plan for it. Brands that establish a clear testing process, identify resources or employ an experienced vendor, and use bespoke technology have a big advantage.
• You are optimizing experiences, not channels. Start with a hypothesis and test against it. Test to confirm what’s best for the user experience and what keeps them coming back.
• Optimization is ongoing – a slow drip of rice will eventually fill a bowl.
• A simple test can demonstrate ROI to justify ongoing testing. A small control test of the airline KLM’s landing page resulted in a 3.8-million euro increase in sales.

One boon of repeat visits to a vibrant city like San Francisco is the chance to take in so many different experiences and discern the marvelous from the meh. As digital communicators, we must inspire our clients to attain the business value of a data-driven, cross-platform culture of digital content optimization that will boost the trust of potential customers throughout their ongoing journeys as well. (Even if they don’t include a perfect martini at the Top of the Mark, fish tacos on the waterfront, or a pineapple full of rum at the tiki paradise of the Tonga Room!)