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.

Chatbot KPI's

4 Fantastic KPI’s that you should be using in your chatbot marketing

How do I measure the effectiveness of my chatbot marketing?

We decided to have a “chat” with the king of Facebook marketing: Curt Maly.

Curt is a social marketing expert, owner of multiple online marketing businesses, consultant and national speaker joins us today with his vast knowledge of all things marketing data related.

What are the benefits of chatbots?

People generally react faster to the notifications from a Facebook message than to notifications about an email. Not every customer responds positively though, most people tend to the extremes in their feelings towards these messages: they either love them or they hate them.

Another benefit of using chatbots in marketing is that they help to automate out customer service. Chatbots essentially create auto-responders within an AI platform, allowing you to dedicate your time and resources elsewhere.

Chatbots also help decrease the necessity of traditional funnels. You can utilize chatbots to move your clients from one point of the traditional funnel to the next without needing to set up traditional stages. Rather than segmenting people into phases like a traditional funnel, chatbots allow you to just have a conversation with the client and naturally progress them through their journey.

How hard is it to set up chatbots?

Just like funnels, you can make chatbots as simple or as complex as you would like. Creating a basic chatbot requires minimal knowledge, and only needs a few options for auto-response. Essentially you just need to think through a standard conversation that happens on a sales call or customer service call, and input the different variables into the chatbot.

KPI #1- Cost per Acquisition

This is the amount of money that it takes for someone to engage with your message. You can find this information by dividing your ad spend across the total number of new messages that you get. Facebook will try to conflate this data with Cost per Reply, but that will give you an inaccurate picture of your actual cost per acquisition.

KPI #2- Cost per Reply

Facebook will track this metric automatically for you. It’s a very important metric to keep top of mind, because it can help you understand the cost of re-engaging a lead that you fell out of contact with.

KPI #3- Cost per Open

This metric matches up nicely to open rates on email, with one difference: most people see at least an 80% “open rate” on Facebook messages. This happens because if someone browses Facebook on their browser, the message will automatically open, inflating the open rate.

KPI #4- Click Through Rate

Click through rates on Facebook messenger generally align very closely with email click through rates. Most people will see between 6-10% click through rates on Facebook messages. Many people mistakenly claim that they get better click through rates through Facebook messenger. In reality, they are generally getting more leads than from email, due to the increased open rate of Facebook messages.

How dashboards can double your revenue

Could you be one smart data-driven decision away from doubling or tripling revenue?

How can data visualization help my business?

Most companies have tried out some sort of data visualization or dashboarding solution. And lots of those companies feel like they have not gotten their money’s worth.

In this video, we sat down with Alex Brown to talk about how to: grow your eCommerce revenue now, increase lifetime customer value, and have accurate data you can trust.

As we discussed in the video, we came up with a refined list of KPIs that every eCommerce company SHOULD have insights into, but most don’t.

We built this “command center” that combines your top of funnel marketing efforts with your entire customer purchasing journey, so that you can see patterns and anomalies otherwise unknown to you, like:

Which marketing efforts are yielding the highest 30, 60 or 90 day LTV?
Which affiliates are bringing you customers who come back and purchase again and again?
What funnels are yielding the highest or lowest customer retention rates?

Knowing the accurate LTV of your customers is crucial for exponentially growing your eCommerce business.

Once you know how much you make per customer and how long it takes you to collect that money from each customer, you can adjust your budget to acquire them.

We had a client that grew from 15 leads per day to 350 leads per day using just this one metric. Check out their story here: https://bit.ly/2DpkdKd

Knowing the LTV of your customers allows you to answer a litany of business questions.

This dashboard gives you the EXACT insights into what your customer is worth at 30, 60, and 90-days. In addition to this, it also answers several other business questions you are probably already asking; but aren’t getting instant answers to, such as:

What variables in my business and my marketing efforts yield higher LTVs?
Does customer LTV change when customers based off their traffic source? Does it change based off what product they purchased first?
Are my marketing efforts increasing my LTVs, or making them worse?
What products are people coming back to purchase after their initial sale?
How many customers are repurchasing from us, and when can I expect that revenue?
Am I speeding up my customer’s journey to purchase? Is it somehow slowing down over time?

Who are my best customers? Where did they come from and what are their purchasing behaviors?
How much revenue am I getting from different products?
How’s this month’s revenue compare to the same month last year, or last month?

This is just one of several pre-built dashboards that we have ready for your business. Our platform integrates with thousands of analytics tools to help you get the most out of your data.

Do you want to learn more about this pre-built LTV revenue and subscription dashboard?
Be sure to watch our more in-depth video and apply to see if you qualify for this awesome dashboard then schedule a call with one of our data experts! https://bit.ly/2Zpwx6o

Improve sales using data

How can I use data to improve my sales?

Do you have more data than you know what to do with?

Most businesses do. In today’s world, everything is tracked, and it produces an overwhelming amount of information. Today, most professionals have a harder time sifting through irrelevant data than they do collecting data.

That’s a problem that we wanted to address in this podcast. We wanted to tackle the question: “Now that I have the data that I want, what do I do with it?”.

It’s not about how much data you have, it’s about asking the right questions and then letting the data tell it’s story.

Time is the most valuable asset that we have, yet we don’t keep very good track of it. Most people go through their days not really thinking about how they spend their time, and not realizing all of the time that they waste in a day. You should spend as much time monitoring your time budget as you do your fiscal budget.

If you want to maximize your effectiveness and happiness, you need to find ways to maximize your time. We all want to increase our productivity and optimize the effectiveness of our time, but eventually we all reach our “optimal level”. At that point, if we want to keep progressing, the only thing left to do is to eliminate waste.

Whether or not we want to admit it to ourselves, wasting time is a huge part of our lives. By decreasing the time that we spend on non-income producing tasks, we can further optimize our time, increasing our time spent on actually valuable tasks. By refusing to track your time as carefully as you track your money, you often lie to yourself. You convince yourself that you spent your time wisely, when in reality, you could have done so much more.

Track your time for 24 hours a day across 2 weeks, and see the story it tells.

Break down your day into 15 minute increments and see exactly how you spent your time across those 2 weeks. Often times it paints a picture that you don’t want to see; but that’s the picture you need to see. By seeing exactly how much time you spend doing things that aren’t worth it, you can see how much more you are capable of.

One client found that they spent only 2.5 hours per day producing actual income for themselves. They spent the rest of the day doing tasks that they considered productive, but on further examination, they found that they had much more pressing things to deal with.

We can automate, delegate, or eliminate so many of the tasks that fill our days; making us more productive, or allowing us the freedom to follow a new passion.

We have data in our CRM’s, data coming from social media, data from our website; how do we sift through it and find the things that actually make a difference?

We found that most small to medium businesses have 15-18 different sources of data. We also found that those sources of data rarely talk to one another. This turns into a huge drain on your effectiveness and time, having to go between all the sources of data to find the information that you need.

The first thing that you need to do in order to get out of the rut of going through all of those disparate pieces of data is a process called metrics mapping. Metrics mapping requires you to start with a high level view of your business and ask the questions that you want answers to. Most people want to know things like, “How much money am I making?” “Which products are driving the most revenue?” “Where am I losing money?”. After asking the questions, it’s time to figure out what metrics, or KPI’s (Key Performance Indicators) answer that question.

After you know what metrics you want to measure, it’s time to find what system tracks that data, and which one you trust the most. If you want to know how much money your business has, your Paypal, Stripe, or bank account is probably a good place to use as where you pull that metric from. If you want to know how many visitors came to your site yesterday, you would probably turn to Google Analytics. Once you have picked out that “source of truth” for each metric, you can begin to track that information and start answering your business questions.

Almost every company has holes in their data, generally because people don’t recognize the value of that data.

Many organizations have problems with incomplete or inaccurate data. There are several potential solutions to this, but the best ones generally are to either automate out the data collection or to train everyone in the organization in the value of the data. Automation represents a long-term and scalable solution to the problem, but it also generally requires a large up-front investment in the technology. For that reason, many businesses would rather just train everyone in their organization on the importance of the data, and how it can actually make a difference for both the individual and the organization over time.

The sales team is the most important team to communicate this to. As one of the first groups that has contact with the clients, they have access to massive amounts of data that often falls by the wayside because they don’t view it as important. Allowing them access to the data and the insights that come from that data is one of the easiest ways to show them the true value of the data that is being collected. If they can see the direct correlation between their data collection efforts and the insights that allow them to make more money, they will never again willingly let data slip through the cracks.

Reward the habits and not the results.

In sales we have lead indicators and lag indicators. The lead indicators are the things that you have complete control over, i.e. contacting x number of leads per day, making x number of cold calls, making at least x number of sales pitches. Lag indicators are the results that follow the lead indicators, i.e. number of sales, amount of revenue, etc. What’s truly powerful about harnessing the power of data is that once you know your lead indicators well enough, you can shift the focus from rewarding lag indicators to rewarding the lead indicators. A system like this allows you to reward the behaviors that drive results, rather than just the results themselves.

How to scale in the modern business landscape

How to Scale in the Modern Business Landscape

All that it takes to scale your business is the proper data. In the following video and blog post, we’ll take you through how to take advantage of the information that you already have and use it to scale your business, no matter the industry.

 

Data, Information, Knowledge, Wisdom, and Praxis

Let’s simplify and redefine your views and definition of data. Data is simply the path to information. And information is your road map to knowledge, knowledge guides you to wisdom, which ultimately leads you PRAXIS, which is the ACTION you should take based on the knowledge and wisdom you have.

Data is simply events or outcomes, information is when you understand the relationships between those isolated events, knowledge is understanding the patterns- looking at trends over time and correlations in what is and is not working over time, wisdom is understanding the underlying principles and CAUSES, while PRAXIS is the action you take once you have that wisdom.

Data is an event or outcome without any context or true value by itself. Something like: IT IS RAINING. In and of itself, that would not be a revolutionary.

Information, however, is being able to connected multiple pieces of data together to see correlations and relationships: “the temperature dropped 15° and then it started raining”

Knowledge is then understanding the patterns between the variables: “Knowing that when humidity is high and temperature drops, the atmosphere is often not able to hold the pressure and so it rains”

Then wisdom is where we able to stop looking at the past, and we are now able to extrapolate and forecast what WILL happen rather than what HAS ALREADY happened:  “UNDERSTANDING ALL INTERACTIONS BETWEEN EVAPORATION, TEMPERATURE CHANGES, AIR CURRENTS, AND BEING ABLE TO PREDICT RAIN NEXT WEEK”

Lastly, Praxis is the practical application of all this wisdom in order to get positive results: It’s being able to predict that it will rain on your vacation next week, and that you need to pack boots and an umbrella to prepare for your trip.

The ultimate goal and outcome we are looking for is a result of the actions we take based on the wisdom we extrapolated from the raw data.

So here is a quick side note for you:
“Not taking action from data is like owning a race car and never putting fuel in it”
There is a ton of data available to you, but data itself will not grow your business.
Data itself will not give you the results that you want,
The knowledge you gain from data will help guide you and your team to make the best informed decisions on what actions they should and should not take throughout the day.

So let’s simplify this one last time before moving on to your action steps and road map to scaling.

Data is WHAT HAPPENED in your business, information is understanding the relationship between WHAT happened and WHERE and WHEN it happened, knowledge is understanding the patterns that tell you HOW that happened, wisdom is understanding the principles and mechanics of WHY that happened, which leads you to be able to predict when it might happen again in the future, and at each stage in this journey, Praxis is taking ACTION based on the data, information, knowledge and wisdom you’ve gathered.

Becoming Data Rich

By taking those actions, you are getting NEW valuable data. This is the path that the leaders in your industry are taking, this is what helps them grow and scale, it tells them exactly what is and isn’t working, and how to increase their revenues and profits… this is THE PATH ….. To becoming DATA RICH

Now you understand the road map on how to use data to scale. Up to this point in history, BIG DATA was only accessible to enterprise mega giants because collecting data and hiring data scientists for extracting and analyzing data could cost millions in Technology and Human Resources.

However, nowadays millions of rows of DATA can be found in our cell phones, in the back end of our email systems, and tracking on our websites, so raw data is now accessible to any small business owner.

So the question is, how can you take the raw data that is already available to you and use it gain knowledge and insight to scale your revenues and increase your profits?

That’s what we will be covering in the next part of this blog, what ACTIONS TO TAKE, no matter WHERE YOU ARE on the spectrum, to move to the next stage of data maturity.

Becoming Data Mature

So let’s start at the beginning: your outputs are only as good as your inputs. The foundation for growth is first HAVING data.
When small companies come to us and ask us how to scale, they typically do not have a foundation for success.

Data Foundation Stage

Here are some quick questions to ask yourself to see if your company is in the data foundation stage:

Do you have tracking in place at all stages of your customer’s journey? Including a basic Google Analytics set up?
Are you not using advanced tracking like UTMs, Custom Conversions, event tracking or pixels?

Do you know what KPIs your team should be monitoring?
Do you have standard operating procedures that everyone follows for naming conventions in your systems?

Are you or your team members MANUALLY creating excel or google sheets for your reporting because it’s all stored in a bunch of different technologies and is disparate?
Or are you simply logging into each of your systems to look at the native reports?

If you answered YES to most of these questions, then you are in the FOUNDATION stage.

Data maturity stage one

Your main action step in order to become more mature is to focus on TRACKING and MONITORING.

Remember, your outputs are only as good as your inputs, so we need you to HAVE data first. That’s the foundation for you to be able to scale.
In order to progress, you need to:

  • Implement tracking procedures in GA and UTMs
  • Define what metrics are important for you and your team to know
  • Implement SOPs to make sure the data is clean and consistent

Even if you don’t have the resources right now to do anything with this data, you need to start GATHERING it so that later, when you can afford to look back for patterns and hidden areas of opportunity, you have something to review… you can’t RETROACTIVELY pull data if the data wasn’t being tracked… so PLEASE, make sure you do this now… you will thank yourself later.

Automation Stage

Once that foundation of data collection exists, you can move on to the next phase: Automation

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

Let’s chat about this for a second:

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

It’s exponential leverage to scale
It’s reduction in overhead, it’s focus on what’s important – the ANALYSIS of the information, rather than the collection of data.

Data maturity stage two

To advance higher and to scale, the focus is on 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).

In addition, setting up this automation lays the foundation for visualized reports or DASHBOARDS. Dashboards allow you to quickly see the highs and lows of your business, and let you quickly see patterns and anomalies of success, as well as those areas of wasted time, money and valuable resources.

Finally, it also allows you 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 this data allows your team to bring valuable insights to the table and different perspectives that you might not have seen. We call this the LIFT EFFECT.

Optimization Stage

So once you have the foundation of all your data tracking, and after that data has been gathered to one place, and you have automated reporting in dashboards,

THEN you can focus on optimization and analyzing really fun CAUSATIONS between your internal data and EXTERNAL factors…

For those of you who aren’t TOTAL nerds like I am, let’s define this because there is an extremely important principle in statistics that states: CORRELATION does not imply CAUSATION.

As a simple example: Polio rates and Ice Cream sales from 1949. Although they are CORRELATED, that does NOT mean that Ice Cream is the CAUSE of polio. It is very simple to see here, but how many of you make these assumptions in your business when you see trends or relationships like this?

The more data you have, the more accurate picture you can paint among it’s relationships. The more data points you have, the better you can tell which one is most accurate.

You have a ton of INTERNAL data, but there is ALSO a ton of incredible PUBLIC data that you can integrate with in order to gain a more robust understanding of your business, your ideal customers, and their purchasing behaviors.

 

Imagine knowing that when temperatures rise above 75º, your return on ad spend for your Sunscreen company increases by 15%…
or imagine KNOWING that your customers with the highest lifetime values have certain demographics or political affiliations?
Or that you have the best sales when certain economic factors align?

Data maturity stage three

Here at Praxis, we have found:

COMPANIES THAT CAPITALIZE ON CAUSATION
WILL SCALE:

THOSE THAT DON’T
WILL FAIL

Here is a real life example of this in use: Walmart sees a 7x increase in strawberry pop-tart sales when hurricanes are reported off the coast of Florida or Texas. Imagine being a competitive grocery store and not having enough pop-tarts in stock. You would suffer an incredible opportunity cost of potentially millions of dollars.

Can you imagine how many small to mid sized companies are put out of business because they don’t see these patterns? Because they don’t capitalize on these hidden insights that their competitors DO.

What causations are you missing out on in your business?

Mastery Stage

The final stage of data Mastery is for companies that are innovating and modernizing.

At Praxis, we help clients with the most cutting edge resources to help them understand their business better, including natural language processing, machine learning and Artificial Intelligence in order to innovate.

Data maturity stage five

To summarize, here are the recommended steps you can take to advance through each stage on your road to data mastery:

  • Data foundation- Tracking
  • Automation- Integrating
  • Optimization- Analyzing
  • Mastery- Innovating

No matter where your company is currently on this spectrum, these are action steps you should take to move you closer towards information optimization.

That is the definition of PRAXIS – the application of the knowledge you gain from your data.

Taking action from data, is the new competitive advantage. Here is your list of action steps for progressing:

  • Share this with your team
  • Collaborate to see where your business is right now
  • Follow the checklist for how to advance from each stage to the next
  • Assign appropriate team members each action step with a due date
  • Reach out to Praxismetrics.com if you need more information or help.

So, to recap the big rules of scaling:

  • Not taking action from data is like owning a race car and never putting fuel in it.
  • Your outputs are only as good as your inputs.
  • What compound interest is to your money, automation is to your time.
  • Companies that capitalize on causation will scale, those that don’t will fail.
  • Taking action from data, is the new competitive advantage

I’m Meaghan at Praxis Metrics, 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 if you have any specific questions about your unique business.

Good luck on your journey, We are looking forward to helping you scale!

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!

Encompass Health Data

How Encompass Health became data rich

What does data have to do with medicine?

Obviously a lot. Just in practicing medicine, doctors need to examine a multitude of data points; but then they also have to run a business on top of that. Every business has their own set of metrics and KPI’s that they have to track, but compounding that with the difficulty of running a medical practice can be too much. That’s where Encompass Health steps in. They help the doctor’s offload some of the office work so that they can focus on practicing medicine, and we help them in that quest.

How did Encompass Health get involved with Praxis Metrics?

Encompass Health was initially just using Domo for their data visualization, but they wanted to get more training on how to best utilize the program. Seeing as Encompass Health is still a small company, they couldn’t afford to dedicate an employee to learning the platform. Contracting with Praxis allowed them to have an outsourced data team available whenever they need, but at a fraction of the cost of an employee. This also allows them to take control of the platform and learn at their own pace, and then whenever they need help, Praxis can step in to help.

How did Praxis Metrics help?

Praxis helped them with the visualization of their data as well as the ETL (Extract, Transform, Load). The process of ETL is to take data that is formatted, reported, and measured differently in disparate systems and standardizing it so that it can be visualized together.

The team at Encompass knew what they wanted their data to look like, and then the team at Praxis was able to execute on that vision. We set up their data as an executive view, with the option to drill down into specifics. In the healthcare industry, most people focus on the executive level summary. From there, individuals may want to drill down into the details; so we set up their dashboards with that option. The Encompass team could set up the executive view, but the Praxis team also created a drill down path for them as well.

What benefits has Encompass Health seen?

Encompass Health knew that they wanted customization first and foremost. The dashboards that we built allowed them to do just that.

Another benefit was the outsourced data team; as they stated, Austin is a powerhouse of an employee. Austin knows data extremely well, and can create almost anything that the mind can conjure.

Being able to take their data on the go, and view it wherever they need to has also helped them tremendously.

What’s next?

Encompass Health has become data-rich, and now they will help their doctor’s become data rich as well. They plan to start rolling out more advanced features for their clinicians, helping them to make even smarter business decisions.

If you’d like to learn more about the dashboards discussed in this video, visit us here: https://bit.ly/2VYgKZq

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!