Turbotodd

Ruminations on IT, the digital media, and some golf thrown in for good measure.

Archive for the ‘web metrics’ Category

Gladly Pay You Tuesday…

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We’re finally getting some rain in central Texas.  We’ll see how long it lasts!

And on the topic of rainmaking, this just in from our friends at Nucleus Research.

Nucleus conducted an analysis of 21 of IBM Smarter Commerce case studies and their ROI, and discovered that for every dollar spent, companies realized an average of U.S. $12.05 in returns.

According to the research, this payback occurred in an average of 9 months (with a high of 23 months, and a low of two).

The cases Nucleus analyzed included U.S. and European companies and government agencies which had deployed IBM Smarter Commerce technologies.

All the case studies were developed independently by Nucleus, following their standard ROI methodology, and IBM was privy to the results only after the research was completed.

In their analysis, Nucleus also observed some summary conclusions, finding that Smarter Commerce projects delivered both top-line and bottom-line benefits, with roughly 60 percent of returns coming from indirect benefits such as productivity, and the rest from direct savings such as reduced operational costs or hires avoided.

Specific key benefits included the following:

  • Increased productivity. In many cases companies were able to accomplish more work with fewer staff or avoid additional hires as they grew by automating previously manual processes and increasing employee productivity.
  • Reduced costs. Smarter Commerce customers experienced cost reductions in areas such as customer call handling costs, technology costs, and other costs associated with supply chain transactions.
  • Improved inventory management. Greater visibility into customer demand and inventory levels enabled Smarter Commerce customers to gain better control over their inventory, reducing inventory carrying costs and increasing inventory turns.
  • Improved decision making. Greater agility and rapid insight into data for decision making enabled companies using Smarter Commerce to more quickly make decisions and act on them with confidence.
  • Reduced customer churn and increased customer satisfaction. Companies using IBM Business Analytics were able to more rapidly understand customer satisfaction and retain more profitable customers by proactively addressing customers’ propensity to churn. For example, one telecommunications customer was able to reduce customer churn by 8 percent in the first year and 18 percent in the second year by further refining its churn analysis.

Customers Leverage Prepackaged Functionality

Nucleus indicated that the $12.05 average return from Smarter Commerce was at the high end of the range of returns Nucleus had seen from other assessments of deployments such as analytics and CRM, and many IBM Smarter Commerce clients indicated they had achieved high returns by taking advantage of the investments IBM has made in providing integrated solutions, more intuitive user interfaces, and prepackaged industry functionality.

By way of example:

  • Integrated solutions and prepackaged industry functionality accelerate time to deployment and time to value while reducing overall project risk.
  • Usability improvements drive more rapid adoption and make it easier for companies to drive adoption of technologies such as business analytics to casual and business users beyond the data expert specialists that have historically been the primary users of analytics.

Industry-specific functionality and expertise were particularly important in the success of customers adopting Smarter Commerce technologies in the government sector, such as social services agencies and police departments, where IT often has limited resources.

You can go here to download the full report.

Live @ IBM Smarter Commerce Global Summit Madrid: IBM Product Manager Mark Frigon On Smarter Web Analytics & Privacy

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Mark Frigon is a senior product manager with IBM’s Enterprise Marketing Management organization, a key group involved in leading IBM’s Smarter Commerce initiative. Mark’s specialties are in Web analytics (he joined IBM as part of its acquisition of Coremetrics) and Internet privacy, an issue that has come to the forefront in recent years for digital marketers around the globe.

Effective Web metrics are critical to the success of businesses looking to succeed in e-commerce and digital marketing these days, and IBM has a number of experts who spend a lot of their time in this area.

One of those here in Madrid at the IBM Smarter Commerce Global Summit, Mark Frigon, is a senior product manager for Web analytics in IBM’s Enterprise Marketing Management organization.

Mark sat down with me to discuss the changing nature of Web analytics, and how dramatically it has evolved as a discipline over the past few years, including the increased focus by marketers on “attribution,” the ability to directly correlate a Web marketing action and the desired result.

Mark also spoke at the event about the importance for digital marketers around the globe to be more privacy-aware, a topic we also discussed in our time together, calling out in particular the “Do-Not-Track” industry self-regulatory effort that intends to put privacy controls in the hands of consumers.

If you spend any time thinking about Internet privacy or Web analytics, or both, this is a conversation you won’t want to miss.

Live @ IBM Smarter Commerce Global Summit Madrid: OgilvyOne Chairman & CEO Brian Fetherstonhaugh Speaks About The CMO Hotseat

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Brian Fetherstonhaugh, as the chairman and CEO of OgilvyOne Worldwide, has a unique vantage point on how brands are built, how corporate cultures are created, and what happens as the world goes digital. In the course of the past 25 years, Brian has worked hands-on with many of the world’s leading brands including, IBM, American Express, Cisco, Coca-Cola, Motorola, Unilever, Nestlé, Kodak, and Yahoo! Today, Brian leads OgilvyOne Worldwide, the interactive marketing and consulting arm of the Ogilvy Group. With more than 4,000 staff in 50 countries, OgilvyOne is at the forefront of the digital revolution. In 2007 and 2009, the Forrester Report ranked Ogilvy as a leading U.S. interactive agency.

OgilvyOne Worldwide Chairman and CEO Brian Fetherstonhaugh started our Q&A today here at the IBM Smarter Commerce Global Summit in Madrid by revealing who his favorite character on the 1960s-era AMC show about advertising, “Mad Men,” was.  Drum roll, please….It’s…JOAN.

Mainly, Brian explained, because Joan “gets things done.”

We then turned our discussion to the vast evolution IBM’s own marketing culture has endured the past two decades, and the opportunities and challenges presented by the changing marketing landscape for CMOs, whose tenures these days last an average 27 months.

Brian also discussed other key issues facing chief marketing officers during this time of great change, including the need for CMOs to focus on new talents and skills development. Before he jetted off to another city somewhere in the world, Brian left the IBM Smarter Commerce Global Summit, and you, with some valuable marketing advice.

And when you watch the video, never mind the Spanish waiter who entered the frame for just a moment: He was simply doing what we wish to see companies everywhere do best, servicing their customers!

IBM ImpactTV 2012 Instant Replay: IBM’s Mike Rhodin On Big Data, Smarter Commerce, And The Emerging LOB Tech Buyer

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Our first interview at IBM Impact 2012 this year was with IBM senior vice president, IBM Software Solutions Group, Mike Rhodin.  This was also our first ever opportunity to interview Mike, so we were especially excited about this particular interview.

Mike leads an organization which focuses on delivering integrated offerings that target high-growth opportunities, including business analytics, collaboration, and industry solutions.  As a senior vice president, Mike is responsible for a $5 billion business portfolio which represents one of the fastest growing and most acquisitive.

In our interview, Mike explained that his business is reaching more of a non-traditional technology buyer, the senior “line of business” executives who have played a much more dominant role in tech acquisition through the economic downturn, and who are looking for solutions that can help their organizations differentiate themselves in the marketplace, and and even more readily empower front-line executives and decision makers.

He also brought us up to date on what IBM’s Watson has been up to over the past year, explaining that Watson finally got a “real” job — actually, a couple of them!

In his former IBM lives, Mike has served as the general manager of IBM’s Northeast Europe organization, as well as the GM of IBM’s Lotus Software division, a stint in which he led a team to create the “human side” of IBM’s software strategy by developing IBM’s collaborative technology and solutions which integrate people, data, and business processes.

Santa’s E-Commerce Play

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Ho ho ho!  Merry Christmas!

IBM Benchmark data revealed that online shopping jumped 16.4 percent on Christmas Day, compared to last year, and the dollar amount of those purchases that were made using mobile devices leaped 172.9 percent!

And apparently, it was.

I didn’t try to track Santa via Santa Norad, but apparently Santa didn’t need nearly the help he might have.

According to some more IBM Benchmark e-commerce tracking numbers from the holiday shopping season, lots of folks were ready for more virtual commerce even on Christmas Day.

I count myself among the guilty.

The IBM data discovered that online shopping jumped 16.4 percent on Christmas Day, compared to last year, and the dollar amount of those purchases that were made using mobile devices leaped 172.9 percent.

IBM tracks shopping at more than 500 websites (other than Amazon.com, which is where *I* was shopping!).

It also found a huge increase in the number of shoppers making their purchases via iPhones, iPads and Android-powered mobile devices. In fact, nearly 7 percent of all online purchases were made using iPads, just 18 months after the tablet computers were released by Apple Inc..

The online shopping increase continued on Monday. As of 3 p.m. Eastern time, shopping was up 10 percent over Dec. 26, 2010, and the expectation was that the pace of buying would increase as the day wore on and consumers clicked on sales at various retailers.

The data did not show what portion of purchases was made using gift cards, which typically see a big bump just after holidays as folks start cashing those gift cards in and make purchases (online and off).

Speaking of online gifts, IBM has been making some pretty heavy duty investments in Santa’s e-commerce play, what we’re calling “smarter commerce.”  Between the numerous acquisitions and continued organic investment, IBM’s smarter commerce effort recognizes that the final sale is just one aspect of the overall commerce experience.

Last year, IBM researchers surveyed more than 500 economists worldwide and estimated that our planet’s system of systems carries inefficiencies totaling nearly $15 trillion, or 28 percent of worldwide GDP.

Much of this waste is found in our systems of commerce — in inventory backlogs, failed product launches, wasted materials and ineffective marketing campaigns.

Today’s customers have no patience for this kind of waste. They will not remain loyal to products or brands while the cost of inefficiency is passed along to the buyer. And it will not take them long to find the same product or service from a competitor.

These customers are empowered by technology, transparency, and an abundance of information. They expect to engage with companies when and how they want, through physical, digital and mobile means.

They want a consistent experience across all channels. They compare notes. And they can champion a brand or sully a reputation with the click of a mouse.

Nowhere is this shift more visible than in the retail industry, where companies are rapidly adapting to this new reality, integrating their  marketing efforts and using analytics to better understand their new, more fickle customers.

But retail is only the beginning. It is merely the front line of a customer revolution that will eventually reshape the entire value chain, from the way raw materials are sourced to the way they are manufactured, distributed and serviced.

Keeping up with today’s customer will take more than an email marketing campaign and a Facebook page.

It’s going to take a better system of doing business. It’s going to take smarter commerce.

Just as with traditional commerce, the customer is at the center of all operations, and smarter commerce turns customer insight into action, enabling new business processes that help companies buy, market, sell and service their products and services and, in the process, make for happier customers.

Smarter commerce reaches deep within the businessto-business supply chain, integrating business partners, suppliers, and vendors, enabling the entire value chain to anticipate customer needs, not react to them.

And it identifies and addresses the unsustainable inefficiencies of our global systems of commerce.

Visit here if you’d like to learn more about IBM’s smarter commerce strategy.

In the meantime, we’ll be sure to keep an eye on Santa’s post Christmas holiday sales!

Written by turbotodd

December 27, 2011 at 4:53 pm

From Black Friday To Cyber Monday: It’s All In The Clicks

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Well, that day of the year has finally arrived.

That day where we all slink into our offices after four nice, long, official holidays where (mostly, we hope) people stay away from their computers and mobile phones and tablets and God knows whatever other else connected devices just long enough to make it feel like you got some real rest (even though many of you were probably dealing with unrelated, but similarly frustrating, realities —you know, like screaming kids and antagonizing in-laws).

And all you could do was think about how nice it would be to come back into the nice peaceful and quiet office on Monday so you could get back to…shopping.

Yes, boys and girls, cyber Monday has arrived.

But judging from the results of the IBM Coremetrics Benchmark Black Friday e-retailing analysis, you really need not worry about coming into the office anymore just so you can get yourself an extra slurp of broadband.

This is 2011, yo, all you gotta do is break out that iPad and you’ll be standing in front of Macys women’s wear or Best Buy’s electronics section in seconds!

But while you’re out there figuring out your Cyber Monday strategy, I’m going to hit the highlights reel for the weekend in e-shopping.

E-Retail Shopping: Hit ‘Em Early and Often

U.S shoppers apparently took great advantage of early sales this holiday, driving a 39.3 percent year-over-year increase in online Thanksgiving day spending while setting the stage for 24.3 percent online growth on Black Friday compared to the same period last year.

Here’s a quick snapshop of the other key trends:

  • Consumer spending increases. The aggressive shopping we witnessed on Thanksgiving Day this year carried over into Black Friday, with online sales increasing 24.3 percent annually.
  • Mobile Bargain Hunting. Black Friday also saw the arrival of the mobile deal seeker who embraced their devices as a research tool for both in-store and online bargains. Mobile traffic increased to 14.3 percent (compared to 5.6 percent last year).
  • Mobile Sales On the Getgo. Sales on mobile devices surged to 9.8 percent (a tripling from last year’s 3.2 percent).
  • Apple’s One Stop Shop. Mobile shopping was led by Apple, with the iPhone and iPad ranking one and two for consumers shopping on mobile devices (5.4 percent and 4.8 percent respectively). Together, the iPhone and iPad accounted for 10.2 percent of all online retail. Apparently, it ain’t easy bein’ an Android on Black Friday.
  • The iPad Factor. Shoppers using the iPad led to more retail purchases more often per visit than other mobile devices, leading one to wonder about the real estate to deal closing ratio. The bigger the device, the larger the average order value?  Possibly, but this number can’t lie: Conversion rates for the iPad were 4.6 percent, compared to 2.8 for all other mobile devices. The iPad was this weekend’s e-shopping mobile king.
  • Social Influence. Shoppers referred from Social Networks generated 0.53 percent of all online sales on Black Friday, with Facebook leading the pack and accounting for a full 75 percent of all social network traffic.
  • Social Media Chit Chat. Boosted by a 110 percent increase in discussion volume compared to 2010, top discussion topics on social media sites immediately before Friday showed a focus on the part of consumers to share tips on how to avoid the rush. Topics included out-of-stock concerns, waiting times and parking, and a spike in positive sentiment around Cyber Monday sales.
  • Surgical Shopping Goes Mobile: Mobile shoppers demonstrated a laser focus that surpassed that of other online shoppers with a 41.3 percent bounce rate on mobile devices versus online shopping rates of 33.1 percent.

This data came from findings of the IBM Coremetrics fourth annual Black Friday Benchmark, which tracks more than a million transactions a day, analyzing terabytes of raw data from 500 retailers nationwide.

With this data, IBM helps retailers better understand and respond to their customers — across the organization — improving sourcing, inventory management, marketing, sales, and services programs.

You can get more background on the study here.

IBM Leads New Forrester Wave For Web Analytics

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Yesterday I wrote a detailed post about the recent IBM 2011 Global CMO study, which offered a variety of interesting findings.

The first of the four key challenges mentioned that CMOs believe they will be facing moving forward was the massive explosion of data, and how they as CMOs reckon with that.

As the study mentioned, we create 2.5 quintillion bytes of data a day — so much that 90 percent of the world’s data today has been created in the last two years alone.

Put your head around that piece of data.

Hence, the increasing volume, variety and velocity of data available from new digital sources like social networks, in addition to traditional sources such as data and market research, tops the list of CMO challenges.

The challenge, of course, is how to analyze these vast quantities of data to extract meaningful insights and then use them to improve products, services or the customer experience.

Web Analytics Leads To Market Intelligence

One way to help with corporate Web sites is through Web analytics.  IBM has invested in this space through its acquisitions of both Coremetrics and Unica (which had an enterprise Web metrics solution entitled “NetInsights”).

Forrester Research recently placed IBM at the head of the Web Analytics pack in its most recent Wave report on the subject.

Forrester Research recently published their Wave report for Web Analytics, and in so doing named IBM has one of the Leaders and, in fact, putting IBM in the lead position on its Wave chart.

Not to say that IBM didn’t have some solid competition. Forrester noted four vendors lead the market, including Adobe, comScore and Webtrends.

Yet while the other three vendors had their own unique attributes, it was IBM which “viewed web analytics as a key component of its enterprise marketing management portfolio.”

In the Wave, IBM had perfect scores in corporate strategy and a top rating on current offering. This validation comes at less than 12 months following the acquisition of Coremetrics and Unica (forming the Enterprise Marketing Management portfolio), and provides further market recognition of IBM’s  Smarter Commerce initiative.

The Digital Marketing Optimization Suite is a key solution supporting this initiative.  While this Wave focused specifically on web analytics, IBM’s real strategic commitment is in helping organizations respond to shifting consumer and business trends.

In this way, IBM’s web analytics offerings are considered a critical component of the Smarter Commerce initiative, designed to transform how companies manage and adapt to customer and industry trends such as online, social and mobile shopping.

Leadership ratings for IBM’s Digital Marketing Optimization Suite come as a tribute to the powerful combination of capabilities from Coremetrics and Unica NetInsight, now a single on-demand offering that fuses customer profiles, web analytics, and digital marketing execution to enable marketers to turn site visitors into repeat customers and loyal advocates by orchestrating a compelling experience throughout each customer’s digital lifecycle.

Here’s what Forrester had to say about IBM’s enterprise marketing management capability:

IBM. Since our previous evaluation, IBM acquired both Coremetrics and Unica in 2010. IBM has consolidated these companies into its Enterprise Marketing Management software division, and product portfolio integration is under way. IBM is incorporating the complementary and notable features of Unica NetInsight into a merged web analytics solution based on the Coremetrics platform. To stay ahead, IBM must execute on its vision for enterprise marketing by completing the product integrations in progress, gaining market traction for major initiatives such as Smarter Commerce, and creating synergies between web analytics and other IBM assets such as eCommerce, business intelligence, and predictive modeling.

Go here if you’d like to learn more about this report and to learn more about IBM’s enterprise marketing management strategy.

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