How to monetize your data

How to monetize your data

The most valuable commodity on earth

Data recently surpassed oil as the most valuable commodity in the world. The question that we need to ask ourselves is “Why?”; why is data so valuable, and are we making sure that we are getting the maximum value out of our data.

Why is data so valuable?

Data in itself is not particularly valuable. Data is simply a single point of information. The value of data is the actions that you are able to take a a result of the data.

Data Maturity Spectrum
As an example of this, knowing that it is raining does nothing for you in itself. It is simply a point of data. When you begin to merge related points of data together, you get information. By extrapolating your information into patterns, you get knowledge.

Data, information, and knowledge are all powerful tools, but they only help you understand things in hindsight. Taking that knowledge of patterns and using it as a model for the future allows you to gain wisdom. But that wisdom in itself does nothing for you without taking action from it, which is Praxis, or the practical application of wisdom.

Data Maturity Spectrum Example

Data is like a race car. It has limitless potential, but it requires you to put fuel into it before it realizes it’s value. Data requires analysis and action in order to create any value for your company. This brings us to the question of:

How do I make sure that I’m maximizing the value of my data?

There are two ways to make sure that you are getting value out of your data, internal monetization and external monetization.

Internal Monetization

Internal monetization refers to utilizing your data to glean insights to help your company. This can be things like improving your marketing efforts, managing customer experience, or management of your supply chain and equipment maintenance.

Most companies use the internal monetization of data to identify areas of inefficiency. Our client, Digital Marketer, was one of these. We helped them discover a structural issue with their site that was causing a huge SEO issue for them. Upon discovering the issue, they implemented a fix and saw a 50% increase in their traffic. You can read more about that story here: https://praxismetrics.com/success-stories/digitalmarketer/

Another way to monetize internally is to leverage data to expand your product and service offerings. Our client, Danette May, found themselves in a similar position to this. They had been trying to expand a funnel that they had built to offer it to more clients, but they found that they couldn’t increase their ad spend to reach this new market and maintain profitability on the product. They were about to abandon this idea when they came to Praxis to try to figure out what their lifetime customer value was; we helped them discover that their LTV for that funnel was much higher than they initially thought. This allowed them to increase their allowable cost per acquisition by $5, which caused them to experience explosive growth, and now that funnel brings in millions in revenue per year. You can read more about their story here: https://praxismetrics.com/success-stories/danette-may/

External Monetization

Another way to take advantage of your data is to monetize it externally. This can include selling the data that you have on your customers, creating mutually beneficial partnerships with other data-driven firms, and creating new subsidiaries or divisions within your company to take advantage of insights that you have gained. Selling and trading data with other companies is growing more challenging, as data rules and regulations are becoming much stricter across the globe, but these type of partnerships can be extremely lucrative for both parties if done properly.

How can I start monetizing my data?

The most important thing that you need to do before trying to monetize your data is to make sure that your data is accurate and “clean”. Attempting to make decisions off of bad data is like trying to drive that race car, but with a filthy windshield that you can’t see through.

Metrics Mapping

Once you have confidence in your data, the next thing you need to do is start to figure out what numbers are actually important to you an your business. We recommend a process called “Metrics Mapping”. Metrics Mapping helps you to understand exactly what you should be tracking, and what actions you should be taking based off of your numbers.

Metrics Mapping starts with determining your business goals and objectives. So if your goal is to double your revenue by 2021, then what questions do you need answered in order to get there? An example question would be “How do we increase the revenue from our website?”. From there, you can determine the metrics that would help answer that question. “How many conversions are we getting per day/month?” “What is our average order value?” “What are our repurchase rates?” “Where do we get our highest converting traffic?” would all be good questions that can help lead you to the metrics that you need to be tracking.

Metrics Mapping Process

Once you know what you want to track, the next step is to figure out where your “source of truth” is for each of these metrics. Revenue per day/month should be tracked by your accounts (Paypal, Stripe, bank), average order value should be tracked through your sales system, highest converting traffic can be found in Google Analytics, etc. Once you have your “source of truth” selected for each of the metrics that you need to track, you know where you need to check in to see your progress.

Once you know your metrics and where they live, you need to assign someone to manage them. Even if it’s yourself, it’s critical that someone be specifically responsible for these metrics. This person needs to keep an eye on the metrics and know exactly what’s going on with them at any given time. Whether improving or worsening, this person should be aware of why they’re changing.

Dashboarding

Once you have your metrics mapped out, the next thing that you should do is start aggregating and visualizing your data in business intelligence dashboards. These dashboards will help you track your important metrics over time, and at a glance.

At Praxis, we prefer dashboards that go beyond just simple visualizations. We build dashboards that merge multiple sources of data in order to create new, reliable data sets. Our dashboards perform complex analysis and calculations to help you not only understand what has happened in your business, but also help you shape the future of your company.

We’ve built everything from “command centers” where executives and investors can log in to see all of the key metrics that they need, to drill-downs that allow you to see the performance of each of your ads. Through our experience creating these dashboards for our many clients, we have perfected their creation and roll-out. We have more information about these dashboards and what they can do for your business here: https://praxismetrics.com/dashboards/ltv-dashboards/

Next Steps

This article contains a roadmap for data monetization. This may seem overwhelming, but we can help you wherever you are in your journey. We offer services for tracking, dashboarding, and even metrics mapping. All you need to do is follow this link to schedule a call to get a personalized data roadmap for your company from a data expert: https://praxismetrics.com/strategy/schedule/

How to win in the attribution war

How to win in the attribution war

One plus one equals one and a half?

One of the most frustrating aspects of marketing right now is over-attribution when comparing Facebook reports to Google reports.

This occurs when you log into Facebook and it tells you it earned you $100,000 in a period, then Google says it earned you $100,000 in that same period, but you only received $125,000 worth of orders during that same time period.

This, unfortunately, is the new norm in the attribution war. Both Facebook and Google want your advertising money to go to them, so when it comes to tracking and reporting, there are a few things you have to understand:

  • Even though the two platforms integrate with each other, each is entirely separate. They have different goals, definitions, standards, and abilities for tracking.
  • Each platform only owns their own data. That means, when you go into the reporting aspects of Google Ads or Facebook, you will have mathematically biased information. Each platform only sees one variable (their ads) as an impact on your sales. However, there are always multiple variables involved—multi-channel marketing, public relations, organic posts… even the weather and political climate can impact your sales.

So, when you log in and see varying information, they’re not trying to lie, they’re just presenting their side of the story.

Everyone knows that there are three sides to any story. Each person has their version, and then there’s the truth, which is somewhere in the middle. So, when it comes to Facebook and Google reporting, neither is lying, but also neither is showing you the entire picture because they both are inherently biased. Facebook, for example, counts any conversion that has seen an ad on their platform and then converts as a “view-through” conversion; and Google uses last-click attribution by default in their reporting because that favors them.

Then how do I get data that I can trust?

There are two steps to get accurate reporting on your marketing efforts in your systems.

#1: Tracking

Get as much information as possible. Information is simply multiple points of data brought together to allow you to see patterns and gain answers to questions, like:

  • How much overlap do we have in reporting?
  • Are there clients that have been exposed to multiple marketing efforts?
    • If so, are we tying together their customer journey with accurate tracking efforts?
  • What are all the possible impacts on our sales?
    • How have they impacted sales before?
  • Are there correlations?

How are you going to answer these questions to get the insights you desire? You must have the data in order to be able to analyze the data to get insight.

That means, tracking is the first and primary component of accuracy in your reporting:

Are you tracking your client’s journey?

As we discussed earlier, Google uses last-touch attribution to assign credit to conversions. This slants credit towards Google, as by the end of a customer’s journey they tend to be aware of your brand, and therefore more likely to search for your name and click on a search ad or organic search result.

Google Analytics has many attribution models that you can try out to see which one works best for you. From position based (Which assigns 40% of the conversion value to the first and last touch, and then distributes the remaining 20% across all other touch points) to time decay (which assigns credit based off how close to the conversion date it was), it’s important to make a conscious choice of which attribution model you want to use. Each attribution model has its pro’s and con’s, but by staying aware of how the model affects your reporting, you can reduce bias in your reports.

Are you using pixels?

Tracking pixels have exploded in popularity. Many popular advertising platforms now use tracking pixels in order to track conversions and user interactions with the ads. Pixels provide amazing reporting because you can install them almost anywhere, from emails to landing pages, and, as of now, they can’t be disabled by a browser.

Pixels can help you gain greater understanding over how users interact with your advertisements and your website. Providing granular data about user’s behavior based off the platforms that they visit your site from.

Do you have unique identifiers for your clients that allow you to see their customer journey?

Specifically, you need a way to assign a user-id to your clients so that you can track their behaviors across devices. If you don’t have this set up, then when a user changes devices, you will lose all of the data from their initial visit. This can lead to incomplete customer journey’s and skew your attribution data.

Do you have organized UTMs setup?

The very best solution for the attribution problem is to utilize UTMs in all of your marketing efforts. UTMs allow you to tell Google Analytics exactly how you would like to categorize your traffic. Every external link that directs to your site should have UTM parameters appended to them in order to help assign credit to the proper source.  You can even add in campaign data in order to track which of your campaigns drives the best traffic to your site.

UTMs can be one of the most powerful tools available to marketers, or they can be their downfall. UTMs need to be standardized and utilized consistently, or they will make the data even more convoluted and confusing. You need to implement standardized rules for your UTM usage across the organization in order to make sure that your data remains as accurate and clean as possible.

If you don’t already have these things in place, that is your top priority.

By organizing your tracking efforts, you can start gathering the data you will need in the future. If you need help with your tracking, we have a variety of services that can help you get your tracking in order: https://bit.ly/2NtT9kt

#2: Reporting

Once you have tracking in place, you can typically manually create Excel reports that give you a much more accurate depiction of your marketing efforts (including lift effects and other variables). However, over time, that becomes tedious and time consuming and allows for too much human error.

The next logical step is to automate via ETL (extracting, transforming, and loading the information from these systems into a singular place) and then to visualize the combined, clean data with a dashboard.

This enables you to eliminate wasted time, effort, and give you insights in a quick and digestible manner. This process can be very intense and require the help of a data scientist.

Fortunately, we specialize in exactly this type of process and can help you revolutionize your data reporting. If you’d like to learn more about how we can help you with ETL and visualization, visit us here: https://bit.ly/2VYgKZq

Bonus #3: Democratize your data

This one may seem out of the blue, but it can change the way that your entire organization interacts with data.

Democratizing data means providing access to data to everyone in your company. Not just information that pertains to their specific corner of the business, but the business as a whole. We have clients who have walls of TVs dedicated to displaying their data for the entire company. Everyone from entry-level employees to C-suite officers has access to the same data.

You may be asking yourself, “How on earth would that help my business?” Everyone has different backgrounds and experience, so when one person looks at a metric they will see one thing and come up with an action item based off their experience; but if you bring in another set of eyes, that person may see something totally different and come to a different conclusion. Democratizing data and making it accessible to more people will lead to greater insights and more options for ways to proceed.

Accountants can be creative, and marketing people can help solve operational issues. Democratizing your data can help you gain a myriad of insights and give you an edge over your competition.

You have tons of data; but data alone will not grow your business. It’s the insights from the data that will inform your team on how to grow. Companies that focus on causation will scale. Those that don’t, will fail.

Financial Marketing Summit

Financial Marketing Summit Keynote Speech

Data is a lot like teenage sex-

Everyone talks about it, but nobody really knows how to do it. Everyone thinks that everybody else is doing it though, so they pretend that they are doing it too.

– Dan Ariely

 

Now that we have your attention, we can get into the meat of the content. This lecture was initially presented to a group of financial marketers, but it’s applicable to businesses in any sector.

Why do I need to know the lifetime value of my customers?

Lifetime Value (LTV) may be one of the most important metrics that a business can measure. Everything from cash-flow to ad spend relies almost exclusively on this number. If you know the lifetime value of your customers by source, and you know the amount of margin that you need to make off that customer, then finding the maximum acceptable Cost per Acquisition (CPA) is a simple equation. Likewise, with cash-flow calculations. If you know when customers who purchase item A will likely return to purchase item B, then you can forecast your revenues pretty accurately.

Our client Danette May has the perfect example of these pieces coming together. They had a funnel that wasn’t converting to the level that they needed it to, and they were about to cut it. They came to Praxis Metrics to find out what their average LTV was for customers who came through the funnel. We supplied them with that data, and armed with that new information, they found that they could afford to spend more on acquiring those customers than they previously thought.

By increasing their acceptable CPA by just $5, they increased from 15 sales per day to 350 sales per day within two weeks. The trend continued upward to hit 615 units per day off this single funnel. With an average value per order of roughly $97, they now make more than $30,000 per day in sales. Across the year this funnel alone accounts for more than $10,000,000. If you would like to hear more about their story, you can see more of what they have to say here: https://praxismetrics.com/success-stories/danette-may/

How can you get a leg up in your business?

There is more noise and competition for clients than ever before. Anyone with a laptop and an internet connection can now start a business and possibly disrupt entire industries. How do you compete in a landscape like this? Information.

Information is at the heart of most of the problems faced by businesses today. Either you wander around blindly because you have too little information; or you have too much information stored in information silos. These silos may contain valuable insights, but since they don’t communicate with the other systems, you have to rely on humans to extract the valuable information and make it usable.

Taking action from data is the new competitive advantage.

The only difference between a successful online marketer and a failure is that the successful marketer knows why they were successful and can replicate that success.

Data does not solve problems.

Data is never the solution to a problem. Data merely guides you to information. Information leads to knowledge. Knowledge transforms into wisdom, and wisdom when applied to your actions, creates Praxis.

The major dividing line in this system is the transition from knowledge to wisdom. Everything that comes before wisdom is based off past observations, and makes no statements on the future. Wisdom allows you to make predictions about things to come. Praxis requires taking those predictions and then doing something about it to better your life.

Not taking action from data is like owning a race car, but then never putting fuel into it.

Data contains the what. Information tells you the when or the where. Knowledge teaches you how. Wisdom guides you to why. Praxis is the actions that you take based off the data, information, knowledge, and wisdom that you gain.

Where do I begin?

Your outputs are only as good as your inputs.

Therefore, you need to begin by tracking your data. This forms the base of everything that you build later, so you need to make sure that your tracking is in order.

Meaghan and AJ provide a personal example of taking data all the way through Praxis beginning at 19:10 if you are interested in hearing more about that.

The initial phase of your journey is all about getting clean, accurate data. The number one mistake that small to medium businesses make is that they are not using UTM’s in all of their marketing efforts, and they don’t have their Google Analytics set up properly.

What the devil is a UTM, and why does it matter?

You can track your marketing campaigns uniformly across most analytics tools utilizing UTM parameters. UTMs work with Google Analytics and many other tracking tools.

UTM is an abbreviation for “Urchin Tracking Module”. “Urchin” came from one of the very best website analytics tools that used on-page scripts to collect visitor data.

Like a lot of great web software, Google eventually acquired Urchin.

A UTM has five variants of URL parameters used by marketers to track the effectiveness of online marketing campaigns across traffic sources and publishing media. UTMs contain an encoded suffix that you append to a URL (A URL being a website link). The suffix is generally quite long and is made up of various ‘parameters.’

Each parameter provides specific information about the link in question. And by stringing parameters together, you can track your online marketing campaigns with a tremendous amount of detail and granularity.

UTM’s are one of the most powerful tools that you have in your analytics arsenal, but they can also be very daunting to get started with. We have written several blog posts on the subject matter, which can help you understand them much better. You can read more of those here: How to increase revenue with one simple tweak, and here: Why UTM’s are so important, and we even set up a course that will teach you from start to finish how to create UTM’s and even has a spreadsheet that will automatically create them for you here: https://datarich.thinkific.com/

After UTM’s, what’s next?

Once you have control of your UTM parameters, you need to start a process called Metrics Mapping. Metrics Mapping allows you to gain clarity on what metrics you should track, and what those metrics do for your business.

Metrics Mapping starts with your business goals. You need to know where you want to go before you can create a map to get there.

From there, you need to figure out what questions you have to answer in order to accomplish that goal. You could ask questions like, “Where do my sales come from?”, or “How many sales have I averaged over the last 30 days?”.

Once you have the questions that you need to answer, you need to find the metrics that answer those questions for you. You need to hunt down where the most accurate information on the topic lives, and then work to connect all of the most accurate data sources together.

Once we have pulled all of the data together, you have to validate the data to make sure that it is accurate.

After you have all of your accurate data in one place, you can apply formulas and filters to make sure that it’s showing you just what you’re looking for, and then it’s time to plug that data into a data-visualization tool.

OK, I am done with tracking, everything looks good. What now?

Congratulations on making it through the tracking stage! You’re now ready to move into the fun stage: automation.

What compound interest is to your money, automation is to your time.

Automation takes your business to the next level, it allows you to scale your business in ways that most people don’t even imagine. By removing manual reporting and human errors, you not only save your company money, but time. Automation allows you to free up some of the smartest people in your organization to do what they do best rather than fetching data and compiling reports.

The automation stage allows your team to no longer have to look at raw data, but now they can look at actionable KPI’s that they can easily glean insights from. The automation stage rapidly progresses people out of the information and knowledge stages and allows you to begin to focus on the wisdom and Praxis stages exclusively. That is one of the primary reasons that companies who get to this point are able to rapidly scale and expand their business.

Businesses that reach automation can focus on what they do best and let machines do the rest.

That covers the first two steps of data maturity.

The action steps that you need to take in order to get past these stages are:

  1. Start tracking now
  2. Organize your tracking
  3. Map out your most valuable KPI’s
  4. Begin to track those KPI’s
  5. Automate as much as possible.

If you would like to see more of the path of data maturity, be sure to check out our presentation of the entire process of data maturity here: https://praxismetrics.com/blog/data-rich/how-to-scale-in-the-modern-business-landscape/

How to make sure your data is trustworthy

How can I make sure my data is trustworthy?

How much do you trust your data?

When you see information displayed, are you skeptical of it, or do you believe that it is telling you the truth?

Today we wanted to go over why most businesses don’t trust their data, and how to increase your confidence in your data.

Assume nothing

One of the top 5 mistakes that businesses make is assuming that everything is tracking properly. Your output is only as good as your input. If your tracking software isn’t set up properly, then all of the insights that you get from that data are tainted.

Google Analytics is a very powerful, robust tool that helps businesses gain insights into their customers and their behaviors. It is also the number one most underutilized and error-prone tool used by small and medium businesses.

Analytics tools are notoriously difficult to set up properly, and unless you have an expert come in to set it up for you, or you invest the time to truly understand how to set it up properly, it can quickly turn from a bucket full of data to a bucket full of holes. Many businesses know that their tracking is not correct, but they don’t know how to fix it; so they take the incomplete or inaccurate data that they have and they do their best with what they have.

If you take anything away from this, do not assume that everything is set up properly, or tracking properly. Make sure that you have an expert set up and validate as much as possible.

People also make the mistake of assuming that once they have Google Analytics set up properly that they can leave it and it will track everything perfectly. Your business is constantly evolving, and your website also is going through constant tweaks, updates, and changes. You need to make sure that everything that you do is tracked in Google Analytics properly, from your goals to your ecommerce, you need to make sure that any changes that you make are reflected in your tracking.

Set up a Data Dictionary

Another big thing that you can do to help increase your trust in your data is to set up a data dictionary for yourself. A data dictionary is a place where you have a source of truth for all of your systems. This will act as a reference point and a description for where that data is generated (Like a phone book for your data). Having a data dictionary helps you know exactly where all of your numbers come from, and it also helps you keep your naming conventions consistent across the board.

Data dictionaries are awesome, but in order to get the most out of them, you need to keep them constantly updated and make them accessible to everyone. Data works best when it is democratized across an organization, rather than in one person’s head or computer. By democratizing the data, you can gain insights and perspectives from everyone across the organization, helping propel your entire company to be more data driven.

Track your data over time

If you want to increase your trust in your data, you need to track it over time. Tracking your data over time lets you pinpoint what works and what doesn’t work with your measurements and reporting. Having a finger on the pulse of your data lets you know when something seems wrong or out of place. This can protect you from making decisions based off bad data.

Do you have a hard time trusting your data? Would you like to have someone check up on your Google Analytics? We perform a 64 point Google Analytics audit to make sure that everything is set up and tracking properly. Contact us here and we can help you trust in your data again.

Data driven marketing

Data-Driven Marketing for the Entrepreneur Who Failed Math Class

Data doesn’t have to be a scary thing.

In this video, we will simplify data, as well as talk about how to use data in your marketing, and how to use it in your life.

Going from a stable job at a power company to starting your own educational company teaching people beer brewing and beer tasting online doesn’t seem like a common career trajectory, but that is exactly what this entrepreneur did. Why? Because the data told him that he could.

What does being data driven mean?

Being data driven begins with knowing the numbers that are important to your business, and knowing what will drive growth in your business. There are only three ways to grow your existing business: you either need to get more customers, get larger order values from those customers, or you sell more things to existing customers. Every action that you take needs to tie back to one of those metrics.

It’s very easy to get lost in the weeds with data, but if you always tie each of the metrics back to those three objectives, then you will always be in good shape.

How can you think about your data to make it more manageable?

Start by asking yourself questions. Don’t start by looking at tools that you think that you might need, start by figuring out what drives your business forward.

One question that every business needs to figure out early on is: how much can I afford to pay to acquire a new customer? Once you figure out the questions like that, the questions that will drive your business forward, then you can start looking for platforms that will allow you to track the information that will drive you to those answers.

Once you have the platforms chosen, you will need to verify the data that they are passing back to you. You will need to determine a platform that you trust and make that the final word on what data you trust; we call this the single source of truth. You need to have one place that has the final say when it comes to important data points for your business: for your money, it can be your stripe account, for your leads, it can be your CRM. Find that one place that you can turn to and trust whatever it says for each of the important KPI’s that impact those key questions.

You will find as you progress in your data journey that there are redundancies in your data tracking, and sometimes the data will not line up between platforms; that is why it is important to figure out for each one of your most important KPI’s what is going to be your final source of truth.

It’s not about how many metrics you have, it’s about having the right ones and then having an action tied to it.

Whenever there is a data anomaly, you need to figure out what happened to cause it. If it was a good anomaly, you want to figure out how you can replicate it; if it was a bad one, you want to figure out how to avoid it in the future.

The key to finding those anomalies is to be in your data, or to have alerts set up so that you are aware when something changes in your business.

You can’t manage what you don’t measure.

Your output is only as good as your input, so if your data is inaccurate or if you are tracking the wrong things, then you may end up making decisions that will impact the success of your business off faulty information.

If you’re not tracking your data properly from the bottom up, you are not going to be able to have the data that you need.

From relationships to health, data is everywhere.

Data surrounds us in every aspect of our lives, it’s like the Matrix. And like the Matrix, once we learn how to see and understand that data, we can do remarkable things with it.

People and data together can do anything.

My name is AJ Yager at PraxisMetrics.com and thank you for investing your time here with me today. Please connect with Praxis on Linkedin and Facebook for more resources to help you scale. We love to help companies like yours grow and achieve their goals faster, so please reach out to me at my email as well if you have any specific questions.

Good luck on your journey!

Becoming Data-driven

4 vital steps to becoming a data-driven company

Step 1- Remove emotion from the equation.

Your data will always tell you a story; it just sometimes tells a story that you don’t want to hear. Often we find that people stop listening to their data when it gets hard, or right when the details are becoming the most important; but those are the times when you need to listen to the story that it’s telling you even more.

You need to take emotion out of your decision making process if you really want to become a data-driven company. Often the climate of the business has a huge impact on our lives, so it’s often difficult to separate your emotions from the decisions that you make, especially during the hard times. When the times are the toughest are generally when you need to be the most data-driven, and those are the hardest times to take emotion out of the equation; but if you do, it will help you to trust your decision-making process much more.

How do you remove emotion from the equation? The simplest way to remove emotion from the equation is to just let the numbers speak for themselves. No matter how hard things get, they will always get harder if you make the wrong decision.

It’s one thing to make the wrong decision because you went with a knee-jerk reaction; it’s a whole other beast to make the wrong decision because you had bad data. That’s why our next step is:

Step 2- Get your tracking in order.

You can’t make good decisions off of bad data. If your tracking is off, all of the insights that you get from that data are tainted.

One of the top 5 mistakes that businesses make is assuming that everything is tracking properly. Google Analytics is a very powerful, robust tool that helps businesses gain insights into their customers and their behaviors. It is also the number one most underutilized and error-prone tool used by small and medium businesses.

Analytics tools are notoriously difficult to set up properly, and unless you have an expert come in to set it up for you, or you invest the time to truly understand how to set it up properly, it can quickly turn from a bucket full of data to a bucket full of holes.

Many businesses know that their tracking is not correct, but they don’t know how to fix it; so they take the incomplete or inaccurate data that they have and they do their best with what they have.

The end goal of this step is to get you to the point where you have:

  • Organized UTM’s
  • Advanced Pixels
  • Custom Conversions
  • Event Tracking

We’ll go through each of these goals individually:

Organized UTM’s:

UTM’s are one of the most powerful tools that you have in your analytics arsenal, but they can also be very daunting to get started with. That is why we have written several blog posts on the subject matter, which you can find here: How to increase revenue with one simple tweak, Why UTM’s are so important, and we even set up a course that will teach you from start to finish how to create UTM’s and even has a spreadsheet that will automatically create them for you here: https://datarich.thinkific.com/

Advanced Pixels:

Tracking pixels generally have a similar functionalities to cookies. However, as more and more users are blocking cookies using browser functions, cookies provide incomplete data, and are often blocked completely.

Tracking pixels area good alternative to cookies as they cannot be blocked by a normal browser currently. Pixels gather a vast array of user data and pass it along to analytics tools. Some of the most popular advertising platforms use pixels to track user behavior and conversions. In addition to the basic tracking functions, pixels can also track custom events, such as video plays, button clicks, or time spent on a page.

Custom Conversions/ Event Tracking:

As we discussed in advanced pixel tracking, you can track so much more than simply page views and conversions. There is no end to the number of behaviors that you can track on a page. We recommend setting up custom goals, conversions and events within your analytics properties and assigning values to each of these items. While someone may not have purchased through your site, they may have filled out a contact form, or given their email address. If you know the average conversion rate for clients on your email list, and the average order value for them, you can assign a value to each email signup.

It’s just like we always say, your output is only as good as your input. If you can get your tracking in order, you are more than halfway through the journey to become a data driven company.

Step 3- Automate your reporting

Once you have your tracking in order, and you know that you have accurate data; you can move on to the next step: automation

You’ll know you’re ready for this step if you have all the complex tracking in place, but you or your team spends a ton of time gathering valuable insights from different systems and compiling them together into google sheets or into excel and pivot tables.

What compound interest is to your money, automation is to your time.

Businesses that we work with get most excited by this step, because it’s where we begin to focus on scaling the business. Automation leads to a reduction in overhead, increase in productivity, and allows you and your team to focus on the analysis of the information, rather than the collection of data. Automation eliminates the human error component of reporting, further allowing you to have complete confidence in the data that you receive.

To scale your business and progress even more, the focus shifts to integrating your systems together so that they automatically transform the raw data into the insights you need to take action. This allows your team to focus on valuable actions rather than mundane data entry. In technical terms, this is called ETL (automatically extracting, transforming and loading your data into one place). For more information on this process, and how we use it with the companies that we work with, be sure to check out our post on data-driven mistakes even good ecommerce business owners make (and how to avoid them).

Step 4- Democratize the data

The final step that you need to take is to share this information with all the people on your team. You wouldn’t believe the value that democratizing your data can have on your organization. Sharing data allows people to bring their diverse backgrounds and viewpoints to the data to help interpret it.

By allowing your team to access the data, they can bring valuable insights to the table and different perspectives that you might not have seen. We call this the lift effect, and we have seen it happen many times across multiple companies and industries. We recently talked to one of our clients about the value that democratizing data has had for them. Be sure to check out our full interview with Organifi here.

Everyone has their own ideas about what it means to have a data-driven culture. We don’t believe that this list is exhaustive by any stretch of the imagination; but we do believe that if you follow these steps, your business will transform into a data-driven organization. If you follow the steps that we outlined here, we guarantee that you will see a change in your business.

If you have questions on any of these steps, or need help with implementation; we are here to help. We provide comprehensive analytics audits to help see where you may have issues with your data. If you struggle with automation, we have a series of pre-built dashboards that can automate your data for you. If none of those interest you, we can also build out custom dashboards to measure unique metrics for your business.

Increasing Revenue with one simple tweak

Increasing Revenue with One Simple Tracking Tweak

If you are doing business online and want to know how to accurately track return on investment from your online marketing efforts, then you are in the right place!

Whether you are a seasoned pro or just getting started this training is for you. I am going to show you how to overcome the #1 Mistake 90% of Companies Make When Tracking Revenue and the best part is you can get started right away!

I am AJ Yager, Chief Growth Officer and Co-founder of PraxisMetrics, a business intelligence agency that helps you escape spreadsheet hell, eliminate wasted resources, and get you accurate data you can trust to make better decisions! From tracking to dashboards, we help you scale faster.

We have worked with companies from e-commerce to retail, digital publishing, SAAS, manufacturers, VC Firms, mega churches and investment firms.

I am really excited to share this content with you today but first I want to kick this off with a quote you may or may not have heard before:

This is a very famous saying in business by the one and only Peter Drucker.

“You can’t manage what you don’t measure!” – this is very important to understand, especially when marketing online.

Tracking or “measuring” is the foundation of everything in your business and will allow you to make better accurate decisions. My intention here is to help make sure that you understand this and avoid becoming part of the 90% of companies that keep making this mistake. I want you to grow exponentially from your data and tracking efforts.

So remember, Marketing without data is like driving with your eyes closed.

Ok, let’s dig in.

What you’ll learn-

By the time this video is done, you’ll understand:

  • The biggest mistakes when it comes to tracking
  • Removing the guesswork from ROI (Return on Investment)
  • Exactly what UTM’s are and how they can take your marketing data to the next level
  • Where (and how) to get Started
  • Why proper data tracking is critical to your business (and what valuable insights that data can provide)
  • How to build a UTM link and the most effective way to utilize them

The biggest mistakes when it comes to tracking-

One of the biggest mistakes we see too often is assuming that everything is tracking properly.

What I mean is that most companies and you may be included in this, think that everything is tracking correctly in all of the different tech systems that run their business; this is NOT TRUE.

Here is why: Simply put, many technologies have software limitations. Out of the box software set-up isn’t complete or isn’t robust enough. and many times there is such a learning curve that the person in charge of it didn’t finish setting up to track everything properly.

SOPs not established or practiced by all team members and you may be missing platforms in your tech stack.

The biggest mistake when it comes to tracking

Finally, you may be lacking cross platform UIDs , which are Unique Identifiers that help connect pieces of information in one system to another.

The point is, you simply can’t afford to invest in these technologies, if you don’t take the time to make sure they are set up to track the right data/information for your business.

The #1 most under-utilized and error prone tool we see is Google Analytics; it is very powerful when set up correctly and best of all a FREE tool that should be in your arsenal.

When it comes to Google analytics, most marketing teams don’t set it up correctly to begin with because it takes a google professional or lots of time to research; or they do get it set up but then forget about it; or worst of all, they don’t validate or test to make sure everything is tracking correctly.

They may try to use Google Analytics as a dashboard to visualize their data. There are some cool reports in GA, but it really isn’t an easy way to digest information.

Last but not least, most people simply think GA is too complicated so they don’t even try… which is totally understandable.

Now this video training isn’t focused on teaching you how to set these tools up, there are plenty of free resources out on the web for that or you can contact our team at praxismetrics.com and they can help you out.

Removing the guesswork from ROI (Return on Investment)-

Ok so now that we have covered that mistake and had a quick overview of Google Analytics, let’s talk about ROI…

The best way to start off is to reminisce back to 2005 when Google Adwords was launched. it completely changed marketing and advertising as we know it.

Google Adwords had conversion tracking which removed the guesswork from ROI. It allowed marketers and business owners to pay for online advertisements, know the exact cost of each ad click, AND know whether or not a particular ad click resulted in a sale.

It was game changing … From that moment forward began the demise of most traditional forms of advertising. And it wasn’t that online ads with conversion tracking were better marketing, it was just the simple fact that you could calculate your exact ROI that mattered.

But if you could track your ROI accurately with AdWords, why not other online marketing activities?

What about:

Why Modern Marketing makes ROI Calculation Difficult

  • Blog posts?
  • Display ads?
  • Webinars?
  • Email Marketing?
  • Social media posts?

These are all digital forms of marketing you SHOULD be tracking.

The reality is most marketers either don’t know how to do it or are too lazy to set up the systems required to do the tracking correctly. Fortunately, there’s just one tactic you need to know about to track most of your online marketing activities and own your niche.

We’ll also look at how you can apply this approach to a variety of marketing channels and how you can use various analytics tools to drive insights from your data.

As I mentioned earlier, after watching this video you’ll know how to calculate the ROI of an online marketing campaign with precision, so that you can double down on your wins and quickly cut your losses.

Now let’s talk about Why Modern Marketing Makes ROI Calculations Difficult.
You’d think it’d be easy to track the ROI of an online marketing campaign, there’s a digital “paper trail” for every click, tap, and dollar earned…right? You would think that Advertisers and online marketers already have this stuff figured by now, right?

It turns out, that’s not exactly the case. And when you dig deeper, you quickly learn that calculating ROI isn’t as easy as it seems; which is a shame, because ROI used to be really easy to calculate.

But Let’s take a minute to make sure we understand the basic ROI calculation:
If I spend $100,000 and I make $300,000, I can calculate easily, that I’ve made a 200% return.

Money out minus money in. That’s your typical ROI calculation. But ROI equations just aren’t that simple anymore. Especially when you consider all the marketing channels offered these days.

You’re not just going to do one form of online marketing, like just content marketing. You’re probably already doing SEO, video marketing, and affiliate marketing. You may even throw in some Facebook advertising as well. You’ll likely even give influencer marketing a try. And you should!

With modern online marketing, we have to be able to prove a return on investment for each one of those individual channels, you can’t just bundle everything into one neat figure.

If you’re spending $100 across 3 different marketing channels and you’re generating $200 – it doesn’t mean all marketing channels are ROI positive.

It could just be that one of them is dramatically over delivering, while the rest are losing you money. But if you’re not tracking marketing channels individually, you won’t be able to work out whether this is the case or not. You won’t know which steps you need to take to improve your marketing ROI.

This brings us to the #1 Mistake 90% of Companies Make When Tracking Revenue : Not using UTMs for all online marketing efforts.

Exactly what UTM’s are and how they can take your marketing data to the next level-

With all that being said, now we’re going to focus on a specific tracking model that’ll work with any number of marketing channels and analytics tools: Content marketing, social media, Instagram campaigns, emails, newsletters, drip campaigns, etc. whatever it is.

No matter what channel you’re focusing on and what analytics tool you’re using, this tactic will help you work out how people are reaching your website.

UTM Tracking

This approach works with every single analytics tool, which means that all of your analytics tools will be able to use this approach to collect data. Just remember, we MUST be able to prove an ROI from all of our channels.

UTMs – The Tracking Tweak That’ll Work for Anything and Everything-

UTM parameters (or UTMs for short) are the only way that you can track your marketing campaigns uniformly across most analytics tools. UTMs work with Google Analytics and many other tracking tools.

UTM is an abbreviation for “Urchin Tracking Module”. And “Urchin” happened to be one of the very best website analytics tools that used on-page scripts to collect visitor data.

Like a lot of great web software, Urchin was eventually acquired by Google.

A UTM is made up of five variants of URL parameters used by marketers to track the effectiveness of online marketing campaigns across traffic sources and publishing media. It is simply an encoded suffix that you append to a URL (A URL being a website link). The suffix can be quite long and is made up of various ‘parameters.’

Each parameter provides specific information about the link in question. And by stringing parameters together, you can track your online marketing campaigns with a tremendous amount of detail and granularity.

This might not seem like a big deal, but it’s one of the most powerful ways to track your marketing, your sales, or any activity you’re doing online.

For a real life example, I have an email campaign from an affiliate of ours named Justin Goff. All the links within that email used specific UTM parameters so that we could measure the effectiveness of that email campaign once the traffic from that email hits the website.

Let’s get into the nitty-gritty of how UTMs work by examining our example URL that has a UTM appended to it.

Initially, this URL might look really complicated, but once you understand the various parts, you’ll find it’s not too difficult to understand.
All in all, this example URL tells us 6 different things:

  1. The URL
  2. The campaign source
  3. The campaign medium
  4. The campaign name
  5. The campaign content
  6. The campaign term

Let’s drill down into more detail:

  1. URL – The website that’s running the campaign
  2. Campaign Source – Where the clicks come from (ex: search engine, specific website, newsletter #202, etc.)
  3. Campaign Medium – How the link was presented to them (in a search engine result, pay-per-click ad, email, etc.)
  4. Campaign Name – The marketing campaign the link belongs to (traditionally, marketing is done in a succession of campaigns, “Black Friday 2018” would be a campaign)
  5. Campaign Content – The specific part of a marketing campaign got them to take action (Optional. Good for testing different ad copy or A/B testing two different emails.)
  6. Campaign Term – The keyword used in a pay-per-click advertisement that generated the click and subsequent visit or what specific words were clicked on in an email (also optional)

This breakdown could possibly make your eyes glaze over the first time around. So stick with me.

This example URL tells us 5 different things.

  1. The campaign source: JustinGoff
  2. The campaign medium: email+send+LTVdashboard
  3. The campaign name: JustinGoff
  4. The campaign content: JustinGoffEmail
  5. The campaign term: N/A

And honestly, there are many ways to design a system of parameters that work for your organization. The trick is sitting down and designing it – and sticking to that design from here on out. We’ll get into more on that later.

The Website URL-

The Website URL is simply the site we’re tracking.

A word of caution: The above URL is an ‘HTTPS’ URL.
Before you start creating UTMs, determine whether or not your website is secure. If it’s secure, then all your URLs will be “HTTPS” by default. If they are not, then your website is not secure (HTTP). Whether your website should be secure or not is a whole other discussion for a different video.

The important thing is whether or not your website redirects from HTTP to HTTPS. If it does, that’s a good thing, but you’re going to want to make sure that you build all your URLs and respective UTMs as secure links. Otherwise, when the redirect happens, the URL might be stripped of the UTMs and this can have a negative impact on your ability to track data.

The Source Parameter-

This parameter is identifying the traffic source sending clicks your way. In the case of the example URL shown, the source is JustinGoff. The parameter happens to be designed for an affiliate of ours, but the source website is the same whether it’s organic traffic, affiliate or paid traffic.

In the particular case of Google AdWords, we sometimes recommend making the source “AdWords” because it will make it easier for you to analyze your analytics reporting later on. If you’re just going to stick to using AdWords as your only online marketing channel, then setting your source to “Google” is fine.

If I posted this link to Facebook, the URL would have Facebook (facebook.com) as the source.

Here’s an example of the different ‘source’ parameters you can use.

  • CPC
  • Tweet
  • Post
  • Email
  • Banner ad
  • Article Link

The Medium Parameter-

This, in essence, is how the person got to the website in question. Or in what medium the link was presented to them.

Let’s say you’re spending money on cost-per-click ads (CPC for short). The CPC ad then becomes the medium. In our example here it is email.

Here are some more examples of mediums:

  • Google
  • Facebook
  • Twitter
  • Mailchimp
  • Reddit

The Campaign Parameter-

Campaign name generally refers to your overall marketing focus that day, week, month, season, etc. This nomenclature is derived from the fact that traditional marketing is thought of in terms of campaigns. – something that the world should know about or even an idea your marketing team would like to test.

Let’s say you’re having a summer sale. Every link you create related to that campaign should have the campaign name “summer-sale-2019.” If you have a new product release, the campaign name could be something like ‘vitamin-drink-special-2019.’UTM Campaign Parameter

A slight word of caution:
There are two routes to go down when naming your campaigns. For seasonal campaigns, you might want to be somewhat specific and use a date based format like “summer-sale-2019”.

However, for a webinar series, you might want to keep it simple like “praxis-webinar-series” and not use a date based convention.

The reason why is because when you go back to review your data in your analytics tools, it can be helpful to see ongoing campaigns in one reporting batch instead of having them spliced up into smaller campaigns.

Going back to the Summer Sale example, you could be posting the summer sale on Facebook, Twitter, Pinterest, and even on LinkedIn. You might send out emails promoting this sale. You may even publish different pieces of blog content for it as well.

Any method you use to promote this sale online, it will all be grouped under the same campaign.

Having strict campaign names is important because it allows you to segment your data in Google Analytics via campaign names (and in other analytics tools). You can then easily assess the success of a specific campaign and gather insights for future campaigns. Most importantly, you can begin to understand the ROI of your marketing campaigns!

The Content Parameter-

This parameter identifies the specific content or written copy used in a campaign that led to someone clicking on your link and engaging with your brand.

The obvious benefit here is that it allows you to identify which copy is performing best for an individual campaign. Any conversion rate expert will tell you that testing copy alone can have the biggest performance insights when it comes to improving future marketing campaigns.

Additionally, the content parameter is helpful if you’re running a webpage A/B test. If you’re sending out multiple emails for a specific campaign, the content parameter can help you figure out which email converted better.

Suppose you send out two different emails, for the same campaign, each of which has a unique subject line. We could use the parameter ‘utm_content=a’ for all links within one email and the parameter ‘utm_content=b’ for all the links in the other email. In doing so, we can see which one of those subject lines drove the most conversions for a particular campaign. In my case here we just used JustinGoffEmail which was repetitive but it our own system.

Here are some examples of ‘content’ parameters.

  • Email subject lines
  • control or variation
  • content a
  • content b

It’s worth mentioning that this parameter isn’t mandatory, but in certain circumstances, it’s definitely worth using. The above example, representing such a circumstance.

The Term Parameter-

The term parameter, again, isn’t mandatory. But it can be helpful in a number of circumstances – notably PPC (pay-per-click / cost-per-click) campaigns.
This parameter can help you understand the word somebody queried which in turned served your online ad to them. In most cases, it relates to the keyword used for a specific advertising campaign.

This is helpful if you’re running a advertising campaign. When people click an ad and come back to your website, you can actually see which keywords are driving the most conversions. This scenario is probably the purest and most ideal tracking process when it comes calculating accurate online marketing ROI there is – so use them!

As mentioned, using utm_term isn’t mandatory. But by having it there, you can make use of even more segmentation and be even more specific with the marketing campaigns you’re running.

For example, you may have several links within an email that you’re promoting. By identifying each link within the email with its own unique utm_term parameter, you can know which link received the most click-throughs. You’d simply make the utm_term parameter the specific link text you’re tracking.

In our situation we didn’t use the TERM parameter so I left it blank.

Important Note regarding Revenue vs. Vanity Metrics-

There are a lot of marketers in charge of email marketing campaigns that’ll say — “hey, I got a 34 percent open rate. I got a 52 percent click-through rate. This email did amazing!!”

If one of my team members in the marketing department said that in my business – I’d look at them and be extremely concerned.

Yes, I do want to know how many people opened the email and I do want to know how many people clicked on the email… but let’s be real, we are in business to make money and deliver great value to our customers, so we MOSTLY care about how many people purchased. How effective was this campaign!?

If I can’t connect email clicks back to actual purchases, that’s a problem. If I can’t connect email clicks back to monthly recurring revenue, I’m even more concerned.

If you take one thing from this video, let it be this:
Make sure you’re using UTMs to measure important business metrics so you can know the actual return on investment from your online marketing activities. Don’t get caught up in vanity metrics.

How to build a UTM link and the most effective way to utilize them-

At a quick glance, UTMs look really complicated; so complicated in fact, that you might be worried about how you’re going to go about creating them.
Fortunately, they’re not that hard to create.

For starters, Google has their own built in tool you can use. There are also some other tools we suggest which you can go check out at praxismetrics.com/tracking-toolsUTM Building Tools

Back to the Google URL builder…. This tool is really easy to use and all you have to do is put your chosen parameters in the relevant fields. Notice all the elements that we talked about are all here ready for you to fill out.

Links that use UTM codes can look pretty messy. UTM links also reveal a lot of information about your marketing, this can mean competitors have access to vital campaign data. Some customers can also be wary of links that are long and complicated. Because of this, it’s a good idea to hide the UTM parameters.

We can do this using a link shortener like Bit.ly. And goo.gl

This is a really simple tool you can use to shorten your URLs. Bit.ly also provides click tracking, which provides further data on your campaigns.
Here’s a simple example of how Bit.ly works:

Once you put a link through Bit.ly, you’ll notice that the links a lot shorter and neater. This is all possible without harming the UTM parameters and your ability to track UTM data within analytics tools.

One of the most often asked questions is… How do you make sure to stay organized so everyone uses the same UTM tagging system?

This is a common problem. Especially if you’re on a team of several people and everyone is working on a specific campaign.

Let’s look at a classic example of where this becomes a problem: Valentines campaigns.
Valentines campaigns are wonderful at driving marketing managers insane. It’s an annual marketing campaign and of course you’re going to want to use UTMs to track your ROI and performance.

Then the inevitable happens: One team member spells the full word “valentines” out for the campaign parameter. Another team member spells it “Valentines”. Another team member spells it “vday”. So you’d have:

Standardized UTM Parameters

utm_campaign=valentines
utm_campaign=Valentines
utm_campaign=vday
All of these would appear as separate UTMs. Meaning the campaign data would be segmented into three different campaigns by your analytics tools. Don’t let this happen.

How do you prevent this?-

What we recommend is to build out an organized spreadsheet that your team uses and follows carefully!

Remember, your output is only as good as your input! – this is where your tracking SOPs really matters!

The end result is reporting or seeing your data in dashboards:
Your dashboards and reporting will NOT BE ACCURATE
Your dashboards and reporting will NOT BE CLEAR

When you shouldn’t use UTMs-

There’s one specific case where you should never, EVER use UTMs: when creating internal links on your website.

Most website analytic tools like Google Analytics are designed to help you understand what’s happening on your website by default. There is no need for you to code up unique UTMs to help you understand what’s going on.

If you start using UTMs to link to various parts of your website, you can artificially multiply session counts and trigger all kinds of negative elements that will corrupt your analytics reporting.

Alright well we have covered a lot of ground so far, now it’s time to wrap up and give you actions to go and do!

UTMs are the only way you can know the true ROI of your online marketing activities. If you’re doing business online, you have no choice but to use them.

And you should be really grateful that UTMs exist! It’s a blessing to be able to finally get this critical information. It doesn’t cost anything really, it’s just a matter of taking the time to create a UTM system that works for you. It can be challenging to design a perfect UTM system that will work for your organization right out of the box. It’s an iterative process.

You may make some mistakes along the way in order to figure out a system that works well for you.
It may take hours looking over your analytics reports and dashboards for you to finally see what conventions make sense for your monthly reporting.

There’s no way around this reality other than getting your hands dirty. So go do it!

We recommend getting a whiteboard and begin mapping out your UTM system with your team.
Determine your sources, mediums, how you want to use the content and term parameters.

Ask yourself, how do you want to incorporate UTMs for running A/B tests? Do you want to use utm_term for specific text within emails?

This will help collaboration will help you chisel out a great ROI tracking system that you can use for years to come.

Get started now and use a UTM link with your next post or in your next email and test it out!

UTMs Can Take Your Marketing to the Next Level-

All channels and all analytics tools work with UTMs.

When you start doing this you’ll have better data on your marketing campaigns.
You can then use this data to track the return on investment for any of your marketing campaigns.

Without UTMs, it’s going to be a lot harder to make definitive claims about your marketing campaigns, I know that for a fact.

Sure, you’ll make some mistakes at first, but once you get the hang of things, you’ll wonder what the heck you were doing before using UTMs.

If you’re interested in learning more about UTM’s and how to build them, we have a wonderful course (https://datarich.thinkific.com/) that will teach you exactly how to create and utilize UTM’s in your marketing efforts.

Again my name is AJ Yager at PraxisMetrics.com and thank you for investing your time here with me today. Please connect with me on Linkedin and Facebook for more resources to help you scale. We love to help companies like yours grow and achieve their goals faster, so please reach out to me at my email as well if you have any specific questions.

Good luck on your journey!

UTM's Demystified

UTM’s Demystified: Why tracking is so important to your business

Want to know the #1 reason most companies can’t attribute where revenue is coming from accurately?

Spoiler alert: It’s all about UTM’s.

Are you using UTM’s for all your marketing efforts? Have no idea what a UTM is?

No matter where you are in your tracking journey, this video can help you learn how to improve your tracking skills. We have also included a transcript of some of the best insights from our conversation below:

How can I make sure that I am being data driven in my business?

You need to take emotion out of your decision making process if you really want to become a data-driven company. Often the climate of the business has a huge impact on our lives, so it’s often difficult to separate your emotions from the decisions that you make, especially during the hard times. When the times are the toughest are generally when you need to be the most data-driven, and those are the hardest times to take emotion out of the equation; but if you do, it will help you to trust your decision-making process much more.

Your data will always tell you a story; it just sometimes tells a story that you don’t want to hear. Often we find that people stop listening to their data when it gets hard, or right when the details are becoming the most important; but those are the times when you need to listen to the story that it’s telling you even more.

What are lead indicators vs lag indicators?

What does lead indicator or lag indicator mean? A lead indicator drives a lag indicator. In sales, a lag indicator would be their revenue, or number of sales made. Sales people really don’t have direct control over how many sales that they make in a day, but they do have control over their lead indicator: how many calls they make that day. Content marketers don’t have direct control over how many website visits they get in a day, but they do have control over how many blog posts or emails they write.

Control what you can control. You almost always have direct control over your lead indicators. Focusing your efforts on improving the things that you have control over will always yield better results than focusing on the things that you have no control over. Everyone wants more leads and more revenue, but you need to drill down and find the things that drive that success.

In order to understand what drives your success, you need to have tracking in place. Once you know that your data is trustworthy, you can drill into it and find exactly what yields results in your business, and those become your lead indicators. By replicating your successes and holding yourself accountable to your lead indicators, you will drive success on your lag indicators. It’s all about accountability. If you hold yourself accountable to your lead indicators, you will drive that success on the lag indicators.

How do I make sure that I am tracking my lead indicators properly?

Your output is only as good as your input. Every business wants to know how they can be more effective. We have found that most of them don’t even have the right tracking in place in order to even find their lead indicators though. Most businesses have several systems in place that aggregate data, but then those systems don’t talk to one another, and the company isn’t sure where to go to get answers to their questions. Facebook will tell you that they are getting X number of conversions per day, Adwords will claim that they produced Y result, and Google Analytics will tell you something totally different from each of those.

The best place to start with tracking is at the very beginning. Before you ever create a piece of content, you need to know the intent of that content. Once you know the job of that content, you can hold it accountable to how well it performed the task. If the goal of your ad was to promote awareness, then you don’t need to look at how many conversions it produced. If the goal of the ad was to drive form submissions, then the number of likes on the post isn’t really important.

How does Metrics Mapping help my tracking efforts?

We here at Praxis like to go through a thought experiment known as Metrics Mapping. Metrics Mapping is a process designed to answer fundamental business questions with very specific, actionable data.

  • We start by asking ourselves a business question, such as, “How do we increase conversions on our site?” or “How do we get more qualified traffic to our site?”.
  • Once we know the questions that we want to answer, we decide on 3 key performance indicators that help answer that business question.
  • Then we ask: “Where does that data live?”. For every KPI, we need a source of truth, or a place where we can pull that data from.
  • From there, we validate the data. As much as we would love to just trust what Facebook or Google tells us, there are a million and one ways that your data can be skewed, lost, or misreported along the journey.
  • After that, we apply formulas, set up reporting, and visualize the data.

This process may seem tedious and difficult, but it makes all of the difference in making sure that you don’t waste your time on vanity metrics or tracking things that don’t really matter.

What are UTM’s and what do they have to do with everything that we have talked about?

As we talked about earlier, you don’t have direct control over lag indicators; you can only influence lag indicators through your lead indicators. On the other hand, you have complete control over your lead indicators; but most people don’t know which lead indicators have the most influence on the outcomes of the lag indicators. That’s where UTM’s come in. UTM’s allow you to trace your lag indicators all the way back to the initial lead indicators that generated the result.

UTM’s pass through specific information to help you attribute exactly where traffic came from. Not only do UTM’s help you create accurate source data, they can also contain information such as if it was a paid ad or an organic post that drove the user to your page. They can also contain campaign information, so you can know the effectiveness of your campaigns; they can even help you track your A/B testing efforts within the campaign.

This granularity on the data unleashes the true power of your lead indicators. By knowing exactly what influences your customers to come to you, you can focus on the things that will actually drive the lag indicators, rather than blindly guessing at the most effective use of your time and money.

It all comes down to what works, and tracking is the only way to know what truly works best.

If you want to learn more about UTM’s, their best practices, and how to build them; be sure to check out our course on UTM’s here: https://datarich.thinkific.com/courses/utm-tracking-course

Data-driven mistakes even good ecommerce business owners make (and how to avoid them)

Data-driven mistakes even good ecommerce business owners make (and how to avoid them).

Have you struggled with data discrepancies? Had a hard time figuring out what metrics you should actually track? Tried to use a dashboard service and hated it?

If any of those things apply to you, we feel your pain. This video helps to break down some of the most common mistakes that we have run into across the board with multiple ecommerce businesses, and how to avoid and fix them. If you don’t have the time to sit through the video, or don’t have headphones handy, never fear: we have provided a breakdown of the video below.

Mistake #1: Not automating data extraction

  • Most companies have a HUGE issue with this; they have someone assigned to extract data from multiple data aggregates and put it all together in one place.
  • This causes several problems for businesses, the first being the human error side of things; humans make mistakes constantly, and with a task like data aggregation it’s very easy to misplace a decimal point or to switch two numbers around, which may not seem like a huge deal, but if you take action on the insights gleaned from that data it can lead to catastrophe.
  • The second problem is that humans are expensive. Generally the person in charge of this kind of task is a marketer, and their time is much better spent analyzing data rather than aggregating it; marketers find actionable insights from the data, but very rarely do they have the necessary training to clean data and ensure its accuracy.

Mistake #2: Believing that a dashboard is the solution to your data problems

  • Dashboards are excellent tools for data visualization and data aggregation, but they will not solve any issues that you have with the underlying data.
  • The second issue that people often run into with dashboards is actually connecting the data from the various sources to the dashboard. Many of these data visualization companies talk about how easy their technology is to implement, but going back to the first point, you need to understand how to take all of the different data formats and naming conventions and standardize them across the board so that you can actually get actionable data that you can trust.

Mistake #3: Not making your data actionable

  • According to a Google survey 97% of websites collect data from their customers, but less than 30% actually use that data to make decisions in their business.
  • Many companies get so bogged down with metrics and get lost in the weeds of everything that is measured that they lose sight of their actual goals. It is best to narrow the view down to 7 or 8 actionable metrics  to focus on in the near term, i.e. increasing revenue or decreasing costs, and then once you have those under control, you can begin to add new metrics that you want to measure to further optimize the business.
  • The last part of making sure that your data is actionable is making sure that there is someone assigned to each of the core metrics that you decide to measure. That allows the person to focus on that metric, so they know exactly why that metric went up, down, or sideways, and can explain to the team exactly what happened so that you can replicate that behavior again or avoid it in the future.

Mistake #4: Not democratizing data

  • Many organizations have one nerd who analyzes all of the data and then transmits that data to the team, but that nerd doesn’t know what they don’t know. This flows back to the first mistake that many businesses make, by trusting too much in humans who are extremely prone to errors.
  • Everyone has different backgrounds and experience, so when they look at a metric they will see one thing and come up with an action item based off their experience; but if you bring in another set of eyes, that person may see something totally different and come to a different conclusion. Democratizing data and making it accessible to more people will lead to greater insights and more options for ways to proceed.

Mistake #5: Not focusing on the bottom line

  • This is very similar to not making data actionable, but it is very important to cover as well.
  • Determining the right metrics to measure for your business starts with your big goal: driving more revenue. You need to ask yourself, “what are the primary drivers of revenue for my company?”.
  • After you have determined what the primary revenue drivers are for your company, you need to ask the logical questions as to how you can get more from those customers; that may be, “how do I keep them subscribed to my service for longer?” or “How can I increase repeat purchases?” or even “How do I increase the average order size on my site?”.
  • For each of those questions, you can find one metric that will help you to measure the effectiveness of your efforts. By then focusing on that single metric to measure your results, you can experiment to find what works for your customers.

Mistake #6: Worrying about the chicken vs the egg

  • Many business owners think that they don’t need to start truly tracking these key metrics until they already have success to replicate; this could not be further from the truth.
  • Cleaning and tracking data, especially in the early stages, helps you avoid costly mistakes and also helps you expand rapidly. Businesses that track their data early on can outspend and outmaneuver their competition because they know exactly the type of returns to expect from their investment, allowing them to aggressively expand and claim market share.

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The 5 Devastating Data-Driven Mistakes You May Be Making Right Now

The 5 Devastating Data-Driven Mistakes You May Be Making Right Now

Let me ask you a question. How important is data and reporting to your company? It’s interesting when I ask people this question, which I do almost every day. It varies from “not using data that much” to “we’re data driven masters who implement data discovery into almost every decision we make.”