In a perfect world, we'd know the source of every penny of revenue we receive.
For those of us who don't live in a perfect world have to make assumptions. One of our challenges occurs when we have to allocate "uncoded demand" to the source that theoretically drove the demand.
Nowhere is this a bigger challenge than in online orders that appear to have been generated out of thin air.
Catalogers love to create a vast array of business rules to attribute orders to one of a veritable plethora of prior catalog mailings. Catalogers frequently take too much credit for online orders.
E-mail marketers completely miss the boat here, by and large. Open rates and click through rates and conversion rates, via e-mail analytics tools and web analytics software seriously over-count or under-count orders.
Search marketers also fail to attribute orders properly. A Google query resulting in a paid search visit on a Monday that results in a purchase on a Wednesday is seldom attributed properly in the online marketing world.
This brings us to the topic of Multichannel Forensics.
Orders are categorized into theoretical "micro-channels". The phone order attributed to a catalog is a micro-channel. The online order with a catalog key code is a micro-channel. The e-mail order is a micro-channel. The paid search order is a micro-channel. The natural search order is a micro-channel. The affiliate order, shopping comparison site order, the banner advertisement order --- they're all separate micro-channels.
And yes, uncoded online orders are a separate micro-channel.
The key is to see what customers using one micro-channel do next. What is the behavior of customers who placed uncoded online orders? Do they use paid search next? Do they use a catalog key code next?
Subsequent behavior can help you understand how uncoded orders are really being sourced. If you find that subsequent orders are attributed to e-mail marketing, you have a strong sense that e-mail marketing is playing a role in the generation of uncoded orders.
It's common for folks to measure cost per new customer. Total Marketing Cost = $10,000. Total New Customers = 130. Cost per New C...
RFM is great for targeting one catalog to one customer. However, RFM is tough to manage in a multichannel environment. This becomes clear ...
If you don't like geeky math, please skip this post, because I am about to show you how the sausage is made! I have eight variables in...
Remember our e-commerce customer from yesterday ... 50% organic, 50% catalog driven? We mail a catalog, and the $3.00 matchback outcome is ...