Three Data Points on The Horizon
Director of global marketing, Crimson Hexagon
What It Means
Mary Meeker’s 2016 Internet Trends Report notes that we’re sharing more than 3 billion images to Facebook, Facebook Messenger, Instagram, Snapchat and WhatsApp every day. And there are over 3 billion smartphones in use with hardware and software that make it easier than ever to share images. Analyzing those images to identify not just things like logos and faces, but categorizing image components like an activity being performed (that man is swimming) or objects (that man is swimming with his goggles), will give brands an amazing opportunity to have a more complete picture of the perception of their products, identify new uses for their products and more.
ROE² (Return on Experience x Engagement)
What It Means
As marketers are hoping to learn even more about how effective their marketing is and its impact on customer relationships, a new metric is required in today’s complex ecosystem. I call it ROE², or Return on Experience x Engagement. This idea came about because ROI is a short-term measure of specific, individual campaigns – and it’s too limited. ROE² represents a longer-term, holistic measure of consumers’ total brand experience and their level of engagement.
A lot of marketing has been focused on engagement – getting people to click on a banner ad, walk into a store, open a piece of direct mail, etc. And this is important because it leads to people buying. But through proprietary research conducted at Epsilon, we found that while engagement is still critical, the way you activate engagement is through experience, or emotion. If you can find people who are emotionally connected with your brand, where they aspire to be part of the brand and it aligns to their values, there’s a multiplicative effect on business outcomes.
ROE² gives marketers a new way to create, nurture and ignite customer connections. There’s a point at which a customer’s positive or negative experience is so strong that it can transcend the rational aspects of a brand (e.g., quality, price, service). That’s why creating and guiding the customer experience is so important. Experience creates emotion, emotion fuels engagement and both together impact brand and business outcomes.
Cofounder and CEO, Pyze
Composite User Value
What It Means
Most data points like usage, engagement, retention, and revenue aren’t adequate to make decisions because they provide a limited perspective. Further, metrics that work for one client, usually do not work for other clients. With the advances in artificial intelligence and machine learning, a composite metric can be determined for specific services based on metrics that make sense for a service.
We propose the “Composite User Value” metric. Clients should look to the “Composite User Value” to understand the characteristics of their user base. The composite value could be based on engagement, life time, value, and retention for one service, referrals, net total of positive/negative experiences and location for another service or app.
We use a number of behavioral attributes to arrive at a “Composite User Value” which is individualized to a specific app. We use machine learning on a combination of app-defined and auto-discovered attributes. This enables us to develop a custom definition of Composite User Value for each app and gives app publishers a roadmap of the specific areas of focus to make their app successful.