In preparation for the SAP Emarsys Summer Release (arriving on July 13th), I’d like to introduce some of the new features we will be including.
Today’s topic: Value Measurement.
What is Value Measurement?
Value Measurement is a smart way of continuously measuring the uplift in revenue or engagement generated by your automated marketing activities. It gives you a dynamic, up-to-date window on the effectiveness of your automated programs, set against each of your individual marketing objectives.
It’s part of our goal of giving power to you, the marketer, by helping you align with the most successful paths to future growth, rather than solely basing decisions on past metrics.
[Disclaimer: This feature will initially be released on a limited basis only. If interested, please speak to your Success Manager.]
- The Automation Center node
The new node splits your contacts into a treatment group (90%) and a control group (10%). The treatment group continues in the program and participates in whatever journey your program describes; the control group is immediately discarded from the program.
- The Analytics page
The new analytics page lets you select from any (or all) of the programs using this node, and provides both an overview of the scale of your test,
and an AI-based analysis of how effective the selected programs are in relation to specific KPIs, such as average order value, message responses, website visits, etc.
Why have we developed this feature?
We want to provide marketers like you with the opportunity to measure the incremental uplift that you drive on business growth, in the context of the goals that your business has agreed upon. To that end we provide different tools to suit different business needs. One tool is Revenue Attribution, another is Value Measurement.
Both of these are designed to unlock your impact and allow you to make more confident decisions, as well as receive credit for your efforts, but they are fundamentally different (please note that we’re not saying one is better than the other – they are simply different approaches to addressing the same challenge).
- Revenue Attribution
With attribution, you look at the touchpoints involved in a purchase or other engagement goal, and try to identify which one actually triggered the conversion event, using an attribution model that you have agreed on beforehand. You then assign more resources to it and thereby drive growth.
This is a standard model that suits a great many businesses, but it does have a weakness: you can never be entirely sure if your attribution model is the correct one. Is your attribution window fair? Did you assign the right weight to the first touchpoint vs. the last? More importantly, one attribution model most certainly does not fit all needs – the consideration that goes into buying a car, for example, is very different to that for buying a sofa, and even more so for a t-shirt.
- Value Measurement
We developed Value Measurement to cater for those businesses who want to take a more iterative approach, who want to step back and see if their activities are generating any uplift (or negative impact) against a control group. We provide a dashboard for a selected set of marketing activities, with a simple interface that gives meaning to the numbers. This allows for immediate reaction when a program is failing to deliver on a particular metric, and at the same time highlights when you’ve struck gold.
In other words, it looks at impact by causality, allowing you to do much more (and more varied) marketing without changing your overall strategy.
Isn’t this called A/B Testing?
Well, yes, it is A/B testing, but on steroids. And with SAP Emarsys AI behind it. You can use it across all your marketing campaigns, or zero in on specific use cases like abandoned cart, abandoned browse, or even your simplest welcome campaign.
An additional benefit is that, once a contact enters the control group of a program, they are automatically added to the control group of all other programs using this node. This gives us increased statistical confidence in the results when calculating the combined impact of multiple programs at once.
Rather than A/B testing, it’s more like A/X testing, where X can be any value from B to Z, according to the program you have designed. It’s basically a more holistic approach, allowing you to combine more programs in your tests while still focusing on the same goals.
Now you do know, John Wanamaker
It’s not a marketing ROI blog if it doesn’t mention that famous phrase by US marketing legend John Wanamaker (1838-1922): “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
With Value Measurement, you can challenge this uncertainty, at least in the programs which have this node. We show you in the clearest terms which marketing efforts are succeeding and which are not, giving you an opportunity for continuous, ongoing improvement.
Want to learn more about Value Measurement?
That’s about all I can say about this in a single blog, but you can always follow this up.
If you are an SAP Emarsys customer
Please make sure to join one of our two release webinars:
If you are not yet an SAP Emarsys customer