Engagement Value: Optimize with metrics that matter
Understand true customer engagement
Lars Birkholm Petersen, Sitecore VP of Business Optimization
Hi and welcome to another Sitecore Session. My name is Lars Petersen, VP of Business Optimization at Sitecore. Today I’m going to talk about digital performance and optimization. What are you optimizing for? When you look at your digital analytics, what are you looking for? Is it visits? Conversions? Engagement? And what is engagement? Many refer to engagement as page views and time on site, but is that true engagement that helps you deliver on your business objectives?
Why your boss loses sleep
So let’s say you are in a B2B organization and your most important strategic objective is to increase revenue. That’s what keeps your executive up at night. Now, the next step is to identify how that funnels down to your marketing objectives. If you want to increase revenue as a strategic objective, what should marketing be focusing on? In this case, getting leads and getting contact acquisitions is important because the more contacts you get, the more will become customers and the more revenue you will get as an organization.
Here you fill in the marketing objectives: increased contact acquisition—and not just increase contact acquisition, but also get more intelligence about your customers. Different behaviors, better data, so you can better understand who they are and their specific needs.
From objective to goals
Now, the next step is going from marketing objective to specific digital goals. How are you being successful at a marketing objective? What is it that you should be measuring from a digital point of view? If you focus on driving contact acquisitions, getting more leads, then it could be forms where you get people to sign up for a newsletter or request a call, because that drives that marketing objective of contact acquisition, and that will increase the revenue that your executive cares about.
Once you have framed that, the next step is to look at all your different digital goals. And in this example it could be that you have identified nine different digital goals that are important for the business.
Which goals really matter?
What you do next is focus on identifying the most important of these goals. Of course, I think we can agree on that not all of them are of equal importance for driving more revenue for your business. For instance, you can get people to watch a video, but is that really of the same importance as getting people to request a call, when they’re very eager to learn more about your organization—and may eventually take a quick step into becoming a customer?
So the next step you can do is take all those identified different digital goals where you are focusing on getting more conversions, and then weight them according to what’s most important for your business: the strategic objective of increasing revenue.
So in this case, what you can build is what we call an “Engagement Value Scale.” If you have access to data, then you can look at the data and begin to correlate the different weightings between the identified digital goals.
Weighing the value of each goal
For instance, it could be that you have 100 signups for “request a call.” Out of those 100, ten end up becoming customers. Now compare that to “sign up for a webinar.” For every 100 converting to that goal, only one converts to become a customer. Now the difference between them is a factor of 1:10. And that’s what we have represented here since the “request a call” ones have an Engagement Value of 100—10 times more important than the Engagement Value of ten for “signing up for a webinar.”
So, effectively here you are building an Engagement Value Scale that correlates to your strategic objective of increasing revenue. Once you have set up your Engagement Value Scale, it’s a matter of using that insight to drive better insight in terms of performance of the different digital channels. But also focus on where to optimize, where you can go even further. And increase the revenue, which is what your executives care about.
Real value behind basic metrics
Once you begin to dive into the digital analytics using Engagement Value, you can have different charts like this. In this case, we have visits on the chart. The visits are showing the different periods of time. And then we overlay that with value. So in most cases when you just look at visits, it might seem, “Oh, we’re doing good,” and then we are not doing that good anymore. Typical example. When we overlay it with value, we can actually see that where we thought we were doing good, in terms of driving more visits, we are actually not increasing value. Meaning that we don’t get enough business value out of our marketing campaigns that are driving these increased visits. So effectively, we should adjust those marketing campaigns. We should do more optimization based on those marketing campaigns and look at the marketing campaigns that perform even better.
On the other side, we can see that the value is increasing. That means you are much more effective in terms of getting visitors to convert to the different digital goals that matter for the business. You are driving more value to the business. And that is correlated to increasing revenue.
So that’s an example about how you can identify what matters for your business, building your Engagement Value Scale and deriving the right insights based on the Engagement Value. I hope you found this useful. If you have any questions or comments, please feel free to reach out or watch any of the other Sitecore Sessions. Thank you so much for watching.