Data

Don’t miss out on what’s in front of you when it comes to measurement.

Many businesses are overwhelmed by data and the metrics available to them, which they could use for measurement. A common trend we see with clients is in trying to measure everything.
5 minute read
By Elena Popov

In doing so there is a desire to excel in measuring and evaluating every single metric that exists. Choosing this approach as a way of reporting can dilute the attention from what are in fact business priorities. With what seems like an endless list of metrics for digital channels, that are also continuously increasing, it is easy to miss the simpler and bigger picture.

Let’s consider a Measurement Framework for your data

If you can’t see the wood of the trees or are losing sight or focus on what should be being measured, then this could be the moment when a Measurement Framework can help you. A good, well thought through and structured Measurement Framework will help you, your stake holders and wider organisation to focus on what’s important, what matters and what can make a different to your decision making, as it focuses on translating a campaign or project’s top-line objectives into metrics and dimensions that facilitate the assessment of your campaign or project’s performance.

Setting up and defining your campaign or project Objectives

A good Measurement Framework starts with the business objectives of the campaign or project that is being developed. This will set the foundation for the performance analysis afterwards and highlight key areas of the evaluation and investigation. The objectives should answer the question:

“What problem is the campaign or project is trying to solve?”

Your target Audience may have an impact or influence on measurement

Selecting the audience for whom the campaign or project will be most relevant too can have an impact on results. Further, budgets and effort are often directed to the audiences with the highest chance of conversion.

Even the same user may be more or less engaged with a campaign at different moments in time. This makes it all the more important to understand how an audience was selected, for example will all users behave the same way as your best customer? The short answer is probably not and this should also be considered when setting benchmarks for your KPI’s.

Even the same user may be more or less engaged with a campaign at different moments in time. This makes it all the more important to understand how an audience was selected, for example will all users behave the same way as your best customer? The short answer is probably not and this should also be considered when setting benchmarks for your KPI’s.

Yellow Arrows graphic

Try and identify individual User Journey in the campaign or project

User journeys represent the path users take to get to the campaign or project end-point or desired action. For example, all the touch points a user may engage with, from seeing or engaging with an initial Ad, through to adding a product to a shopping basket and making a successful purchase, represent unique points in the user’s journey. The more steps and the longer it takes users to get to project’s desired action the lower the conversion rate is likely to be.

Once you have identified your campaign or project’s main components: the objective, target audience and main user journey, you can move on to next phase, defining your metrics and benchmarks.

Customer Journey graphic

Metrics should accurately reflect, campaign or project goals

This can be achieved by creating a hierarchy of actions in a user journey. Typically, a Measurement Framework consists of one or two primary Key Performance Indicators (KPI’s) and then a list secondary KPIs. Primary KPI are usually at the end of a user journey, while secondary KPI’s represents other actions a user may take while on their journey.

For example, if you are advertising a job opportunity, then a primary KPI might be the volume of successful applicants, while metrics like average session duration on application page would be a secondary KPI.

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Evaluating your benchmarks

By having a list of defined metrics that accurately reflect what you trying to achieve, is it imperative to analyse and understand historic progress. Progress encompasses two components: seasonality and trend.

  • Seasonality measures predictable fluctuations over a cyclical period, for example, a week or a year
  • Whereas trend measures the underlying direction, up or down, in which you are heading

You should always try to look at your results within the context of the industry you are operating, macro factors (such as a pandemic!) and any dominant competitor performance. Results should contribute to setting realistic benchmarks for future campaign or project activity. Also, you should keep in mind that benchmarks should be readjusted and calibrated in accordance with any new circumstances that may be observed during a campaign or project.

Why you should adopt Measurement Frameworks as part of your strategy

Having created a robust Measurement Framework as outlined above, you should end up with a list of metrics that can be evaluated against benchmarks, ranked in accordance with a set of objectives. This should provide you and your stakeholders with a fuller picture of campaign and project outcomes and a better understanding of where optimisation is needed.

For more information please contact ekino.

Elena Popov
Junior Data Strategist, ekino London.
Elena is a Junior Data Strategist at ekino London where she advises clients on best practice and how to measure campaign and CX effectiveness.