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Analytics: a crystal ball on customer engagement

Sheila Lam (Computerworld HK) | Nov. 8, 2013
Since marketing was invented, businesses have been trying to understand customer behavior. The difference in our data-driven era is the availability to quantify that understanding with analytical tools.

Through integrating third-party data, the tool is able to measure the business potential of different neighborhoods in a geographical display. Dittmann said the tool provides data including the number of shoppers within the region, their annual average expenses on certain products, the number of trips they made to physical stores, as well as projected revenue.

Dittmann added that having a centralized data model protects data integrity and also speeds up the creation process for new ideas and practices across P&G's operations all over the world.

"The discussion is no longer about 'I have this number and you have that number' — it's about 'we have this set of numbers, what are going to do about it'?" he said. "The centralized data model has changed our operations process, speed-to-decision-making, and corporate culture."

Lotte.com turns visitors into buyers
Another successful example in the region is Korean online shopping mall Lotte.com. With 900,000 daily visitors and 15 million members, it's one of the country's more successful online shopping malls. But that success did not come instantly, said Hyo-Hoon Jung, senior manager, business strategic planning at Lotte.com.

The firm had to deal with different sets of "inconvenient truth," including a lack of understanding of Web traffic, ineffective marketing campaigns and low visitor-to-buyer conversion rates.

"For online marketers, the biggest concern was the quality and quantity of Web traffic, as well as real-time access to the data," said Jung. But with investment in Web analytics tools and SAS analytics software, he said Lotte.com built a foundation to transform the company's online marketing strategy.

The tool allows the firm to measure and analyze different Web traffic data across the spectrum, from basic visitor numbers, page-view status and product-popularity, to heavier analytical insights like identifying potential buyers from their Web surfing patterns, calculating visitor-buyer conversion rates, and measuring marketing campaign effectiveness.

By monitoring visitor's surfing habits, Lotte.com was able to identify problems in their Web site's content structure and navigation efficiency. The company then reduced the content on its main page by 20% to allow easier navigation and highlight promotional items.

Jung said the analysis indicated that 60% of the visitors only visit one to two Web pages per visit. To retain visitors on the site and keep them engaged, Lotte.com offers promotion vouchers and coupons.

"We can now see clearly how our visitors move around the Web site," he said. "We monitor the visitor's journey from surfing to purchase and build up the database around it."

The database helps Lotte.com to identify when a regular visitor is seriously researching for a product. With this information available in real-time, a targeted and sophisticated marketing campaign — like sending out product referral promotions — can be delivered to enhance marketing effectiveness and increase the visitor-buyer conversion rate. Jung said Lotte.com achieved KRW2 billion (US$1.9 million) email sales through its product referral database.

 

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