Issues addressed in the material:
- What is cross-cutting analytics and why is it needed
- What are the pros and cons of implementing end-to-end analytics?
- Who needs end-to-end analytics
- How to set up end-to-end analytics
A marketer is like a detective: he monitors a potential buyer, finds out what drives him, and offers a solution based on the logic of customer behavior. The real deductive method! But a modern specialist differs from a detective in that he does not need to trust only his logic. Now in Internet marketing, many tools allow you to receive customer data. Cross-cutting analytics is one of them. What information does it include and how does it increase conversion from the site? About this – in our article.
What is end to end analytics?
Cross-cutting analytics is a tool that has been used in business for a long time. It arose several years ago in connection with the distribution of Big Data. At that time, a system was needed that could process a huge layer of information about the wishes of users and combined all the data on advertising costs and subsequent sales. Not even 10 years have passed, but we can already say for sure: the advertising industry has seriously changed under the influence of a large amount of information, and end-to-end analytics continues to gain momentum.
At first, new and yet imperfect technology was treated with caution. The financial costs and human resources for its implementation were sometimes huge, but the business performance was not always pleasing. Also, only large enterprises could afford to add another item to the advertising cost line.
Today, the market has changed dramatically. Mary Meeker, a legendary analyst, noted that more than 50% of the world’s people use the Internet. From year to year, the Internet market is becoming more saturated: there are new users, information, data. Now any advertising campaign should be personalized – only, in this case, it will be successful. This encourages various areas of the business to increasingly turn to analytics, which gives more opportunities for the development of innovations in the collection and analysis of information.
In general, cross-cutting analytics helps to trace the client’s path from the first contact with the company to the transaction, from the first penny spent to all the profits he brought to the business. In end-to-end analytics, the most important thing is the ability to measure ROI (return on investment).
What is the principle of cross-cutting analytics? It takes into account the sources of all customer requests: advertising on social networks, contextual advertising, offline advertising, media companies, TV, radio, and others. It also takes into account the costs of attracting a client (investments in a particular source of advertising to receive an order). Besides, they collect analytical data on the client – the profit that he brought with his orders. In this case, it is necessary to take into account both the first and subsequent orders throughout the entire period of his relationship with the enterprise (LTV – lifetime value, the company’s profit for the period of cooperation with the client). Consider the cost of customer service.
And here is a simplified diagram:
Profit earned from the client – costs per client = profitability
In this case, we can build on real profits per client and manage all the processes in the organization, sources of advertising and staff, taking into account the net profit. The circuit is really simple. But for it to be effective, you need to use several tools. Besides, you should have access to several other indicators to make assumptions and conclusions based on them about profitability or loss-making and monitor correlations.
Why end to ent analytics is needed
From clicks, impressions, and clicks, it’s impossible to understand how much money is spent on advertising. Traditional analytical methods do not provide the amount of information that can show an objective picture. You know how much money was spent on advertising. And at the same time, you want to know how much profit you got thanks to her.
Traditional analytics do not take into account ROI (return on advertising investments), sales conversion, LTV (profit that the company receives during the entire period of cooperation with the client), bid price and visitor, and so on.
Thanks to end-to-end analytics, we can examine in detail all cost channels and understand where the advertising budget goes. Cross-cutting analytics provides a cohort analysis of site visitors and collects all the information – from the first click to LTV. Thanks to this, you get complete data about each stage of the client’s passage and expenses on your and his part.
You know how much the client spent on you and how much it cost you. To understand how effective one or another advertising source is, it is necessary to calculate and compare these costs. Calculation and analysis of expenses help to control the targeted use of funds.
End-to-end analytics allows you to:
- find out the cost of one client;
- collect all data on advertising costs, information from web analytics and call tracking, from CRM and profit, as well as
- combine all indicators into a single report;
- save time on combining advertising data;
- Manage your marketing budget based on ROI, not randomly.
The scale of the company and its requirements for end-to-end analytics are directly related. For example, a small business owner wants end-to-end analytics to help them quickly decide which advertising is best for investing in – is there a return or not. Small companies do not always need to track the effectiveness of each advertising channel. Especially if there are only 2-3 advertising channels.
Big business needs to track analytics across the entire volume and variety of advertising channels. Before buying, the average client can come into contact with the product more than 10 times: on the website, on social networks, click on targeted advertising, call the company, etc. It is important for large enterprises to see how advertising channels penetrate each other and understand what the conversion is at the stage of transition of the appeal to the client.
For enterprises with a long transaction cycle, this process sometimes takes several months. The conversion depends on many indicators: the communication skills of managers or sellers, the level of process control on their part, and the quality of closing a transaction. Conversion at each stage is a parameter that needs to be monitored.
The set of indicators for end-to-end analytics, the depth of their elaboration, and the provision of data in reports also depend on the scope and specific goals of the enterprise. Some may well only track final transactions, determine how they are associated with advertising campaigns but have no idea about their status – do not understand the way the client moves to this transaction. For others, this is not enough due to the size of the company and the length of the transaction cycle.
Suppose a marketing decision-making cycle is equal to a month. In this case, for analytics, it’s worth choosing the parameters that can be tracked for this period: collect, link with advertising campaigns and view the conversion.
It’s good if sales were conducted during this month. In this case, end-to-end analytics should line up before sales. If the transaction cycle is longer, you should choose the parameter that can be tracked and calculated for the month, so that you can focus on it during the analysis.
If you have already decided for yourself that it is worth focusing solely on numbers, and not on the feelings and experience of others, act!
Pros and cons of implementing end-to-end analytics
Benefits of using end-to-end analytics:
Simplicity and high speed
This sophisticated information system is easy to configure and apply. It can be fully adapted to your needs – understanding which parameters need to be analyzed, for what period of time, for what. If it takes several days to manually prepare a marketing report, then thanks to the end-to-end analytics, this work takes a few minutes.
All information lies on the surface. You know how much money was spent on advertising, how much you managed to earn. In addition, you can identify real growth points, that is, determine which product is in demand, whether seasonal demand is observed, how sales depend on different trends, etc.
Reduce your advertising budget
In this system, the bidder works based on its profit, and not on the cost-per-click. In addition, it is important that you receive a layer of information for the required period in the end-to-end analytics system. In this regard, it is completely optional to carry out or order marketing research and spend money on it.
Now about the shortcomings. The most significant is the price. Although, thanks to a reduction in the advertising budget, the cost of the system fully pays off.
You also need to consider in advance that end-to-end analytics is a complex system that can fail at any minute (calls or actions on the site will no longer be recorded). In order to save valuable information, technical support is required.
Another snag is the work of employees with applications. If the specialist is mistaken when working with the system, the information in it is distorted and as a result, end-to-end analytics does not bring the desired effect. Therefore, before implementing end-to-end analytics, teach staff to clearly follow instructions and explain why this is necessary.
And remember: in cross-cutting analytics, beautiful numbers and reporting are not important in and of themselves, but how you use them. Based on them, you should make rational decisions and solve assigned tasks. Therefore, be sure to formulate the indicators in advance and configure end-to-end analytics directly under them.
Who needs end-to-end analytics setup
Everything is simple. It needs all kinds of businesses working on the Internet. When you launch any advertising channel or connect a number of different sites – the sources of traffic to the site – you cannot decide whether or not to provide quality promotion without a thorough analysis of effectiveness.
First of all, online stores should use cross-cutting analytics – both small and large, using more than two channels to attract customers. It is also useful for service companies, including information business, seminars, pieces of training and coaching, to set up analytical tools integrated with the site.
Analytics will bring less benefit to sites that use one channel for promotion, as well as to those types of businesses that use offline advertising.
End-to-end analytics tools
You need to understand that cross-cutting analytics consists of a set of tools. It is not enough just to run it and wait for the magic result. Let’s say more: end-to-end analytics consists of many different components, and your task is to decide independently whether to connect them or not.
Analytics in Excel. The old method, but still in demand. True, it is better to use it if you are working not with cloud CRM, but with 1C. Periodic reporting is suggested, not online.
CRM system. It allows you to maintain a customer base, calculate the value of transactions, costs, and profits per client. In the CRM-system are cards of customers and transactions with all related information about income and expenses.
Accounting for conversion sources on a website with chat, feedback forms, etc. It is necessary to calculate how and from which sources the applications came from. This problem is solved by Google Analytics and Yandex.Metrica.
Call tracking Designed to monitor calls on the site. It allows you to understand thanks to which advertising source a person decided to make a call.
Offline analytics: static call-tracking, promotional coding. Monitoring actions on the site is important, but you need to remember about offline advertising.
Customized analytical tools: Google Analytics or Yandex.Metrica. You need to track dozens of important indicators that need attention: devices, demographic parameters, time, etc. All of this can be monitored using Google Analytics or Yandex.Metrics.
IP telephony. All call tracking connects to her: she makes audio recordings of telephone conversations, allowing you to control the quality of service.
End-to-end ROI analytics is obtained after integrating all these tools.