• Thu. Mar 4th, 2021

Marketing Live 2019 Day 1: Breaking through a competitive market with measurement featuring Rothy’s

ByDonna9376

Dec 7, 2020

please welcome to the stage Karen sorda [Music] good afternoon the after lunch spot we're here today to talk about a simple topic measurement and we have a great guest a customer that's gonna join me up here Matt from Rafi's it's gonna share with us his customer journey on measurement and some of the lessons he's learned along the way but first I want to tell you a story about my son Jack Jack's a senior in high school he's graduating in a couple of weeks and as some of you may remember high school is a pretty exciting time but senior year can be confusing you have to pick where you want to go to college and it's a lot more complicated than it was when I was a kid there's a lot of choices and so when his father and I were talking to him about where how he was going to make his choice what framework he was going to use to make that choice it became very clear very quickly that he was overwhelmed truth be told he really wanted to stay in my basement play video games for the rest of his life it was familiar and it was comfortable and here we were asking him to make a choice that he thought had to be the right choice the one choice for the rest of his life he was clearly afraid to make the wrong decision so when we started talking about this idea that maybe college is just a first step on his journey he could go to a different school after a year he could change his major or he could go to grad school right it's not a choice that has to be made for life and so there is a happy ending to this story by relieving some of that pressure jack was able to make a choice and he is going to leave my basement come fall I share this story because I think there's times when we might all get a little stuck with measurement or people in your organization when you think about it measurement is changing very quickly we spent time this morning on the keynote stage talking about all the complexity that's happening and there's a you know when you think about measurement there's a it's a very strong concept it's a black-and-white scientific way of working your business and the reality is in today's world you may need to bring a little bit of art to that science you may need to become a little more comfortable with the shades of grey again as we talked about this morning this the market is changing and what used to be very visible to us is becoming less visible oftentimes I see people relying on outdated methodologies because they're very precise and you might have validated them for years and they could get head nods around the meeting room and that's very rewarding but it might not actually be giving you the holistic view of your customer that you need tools like brand lift studies incrementality tests data-driven attribution they rely on third-party cookies they're gonna be less visible to you than they have been in the past and like Jack you and people in your organization might be feeling a little stuck one thing we know to be true the status quo is no longer an option the world has changed and so we need to think about measurement maturity in new ways there's a widening gap between brands who are moving forward and adjusting and working toward measurement maturity than those who aren't in Beynon company's latest research they found that those that are were four times more likely to reach their business goals increase market share and increase revenue when they leaned in to new measurement maturity it's clear that brands focused on measurement rarity are the ones turning their competitive advantage their measurement into a competitive advantage this is a huge wake-up call for all of us thinking about measurement as a competitive advantage so let's acknowledge two things one there's no one size that fits all to better measurement is possible today there are cost there are partners out there willing to help you and it's not impossible in fact it's not that it's not impossible it's also maybe the perfection that we've all been seeking for so long is maybe not even necessary in today's privacy centric world I would argue that measurement and perfection could be a fruitless pursuit and instead we want to think about how to advance our measurement maturity almost like a road map we're in the early stages of thinking about the best way to do that so that you can move with your broader organization towards a measurement maturity that will lead you to business outcomes that will drive your business results partners like Bain and BCG are already helping their clients improve in this way so when Matt comes up from Rafi's he's going to share with us where he is on his measurement journey and some of the lessons he's learned along the way it'll be very useful for you as you think about your own measurement journey there but before we do that there's three simple things you can walk away with today one measurement measure what matters to value what's working three-act on what's important measure value act those are simple and in measuring what matters it's easy to get distracted by short-term metrics that provide a quick return some quick information it's okay to use proxy metrics I'm not saying that's a mistake just make sure those proxy metrics are things that actually drive your business results ultimately so you can start with a media metric just don't stop there move to these business objectives think about linking direct measurement and don't just use proxy metrics that are simplistic like a viewable impression equals brand awareness maybe a proxy metric for you could be something more like 10 million viewable impressions drives a 5% sales lift so therefore each viewable impression is worth X to my business again equating back to the business objective that's really going to drive your business next value what's working what do I mean by that don't look at performance metrics according to the traditional funnel think about your customers and more holistic ways we've often used touch points devices channels in isolation because they're precise but again no longer as a and when we think about that customer and their overall journey this will list a consumer journey can help us understand how to connect and benefit from a connected measurement platform ad platform data platforms we can they can live in the cloud the you know certainly Google Cloud solutions but other clouds as well and think about how to bring in your CRM data your marketing and sales data your ad platforms your email all of the great data sources that you have and your individual businesses can live in the cloud and then you can get to a place where you can action on that data acting on what is important is truly what sets apart the most advanced group of marketers they act on what's important and they use automation to do it so it can be very challenging to distill all this data and information out there and to add to that complexity depending upon the browser that your customer is using and what consents they've granted you could have available signals could change with every single impression you have really good teams I'm confident of that but this is a lot of different data and a lot of signals pulling all at once and it's been too difficult to really action on until now so with the benefit of Technology and machine learning you can bring that to bear much faster and get to market and drive your business results this is a key differentiator between those that are advanced in maturity and those that are laggards so measure value act we can all do that but what happens when you run into a bump in the road what do you do then so I mentioned before this idea of a road map so working with partners like Boston Consulting Group and Bain we brought to the marketplace a new way to think about measurement maturity with BCG we looked at marketing maturity across all digital marketing and created a journey a road map and then we worked with Bain directly to look at measurement to think about okay what does this mean for how we get to more sophisticated measurement how do we think across all of the types of measurement that we use and how do we bring that to bear for an entire organization you'll have an opportunity to review this new diagnostic tool at the end of our presentation today and your GML app will send you a an invitation but this measurement maturity curve is a broad diagnostic that will help you understand across all of your measurement and tools how to how to get to more solutions based roadmap how to compare yourself to your peers how to learn from one another this maturity curve is a way to think about moving down that path I think Jack could have used a little bit of a college roadmap so okay what happens if your business is one where you don't have all the data you need Estee Lauder Companies is a global beauty brand they have they sell a lot of products and stores like Nordstrom down the street but they also have a giant ecommerce business they have 300 sites in over 50 countries and so they were pretty excited and satisfied with a lot of data around their e-commerce business but then they knew that it wasn't enough right a lot of their business was still happening offline and they didn't have real-time data to bring to bear to compare and contrast with their online date on so they worked with their partner their search agency iProspect and they used Google's store sales to bring to bear the all the information that they needed in order to measure this was a great way to think outside of the box around proxy metrics so proxy metrics may be a big part of what you do just be creative about how you get to ones that are meaningful to your overall business that was their way of measuring what matters when you think about valuing what's working sometimes your business could have data and lots of silos I'm sure that's none of you but at discover they found they had a lot of bit silos with data in all different places and so they used a conversion API and brought clean and consistent data to the party they were able to then look across all of the work that they were doing and video and search and display they were able to bring that together and come see the consumer behavior holistically they were then able to attribute that and bid against those more high-value audiences and that drove their business is such a degree in the credit card business that they're now expanding this to their student loan business when you think about acting on insights what if your entire company were built around this idea of insights and measurement as a leading competitive advantage at Airbnb you may be familiar with them six million homes and experiences a 191 countries they actually are rooted in this kind of behavior the way they think about your insights and measurement driving their business is basically through experimentation they have data scientists sitting next to their marketers they work together consistently to look at experimentation frameworks to bring in sales lift data and attribution and try to understand what's happening and enhance their customer experience it's worked so well that it drives the c-suite behaviors entire value of marketing and the team there and how they think about expanding their business overall so did I make you nervous anybody excited about measurement maturity I hope I showed you that there is an opportunity to improve regardless of where you are on that curve there's a chance for you to move forward and take the next step well you won't get to best-in-class measurement overnight we can learn from one another about what's working and how to think about new ways to go to market after you hear from Matt at Roth ease you'll be able to take the diagnostic in your app as I mentioned but before you do that I want to share three things I share a big secret that all these brands already know that I've shared with you today and that is the secret of getting ahead is getting started so get started on your next step on the measurement maturity journey after this I do want to welcome Matt to the stage Matt Garin is for the Rafi's team he's in charge of experimentation and customer experience at Roth ease it's got a great story about how they continue to grow this incredible line of shoes right here in San Francisco so Matt's going to show us how you use data and analytics and customer experience to identify growth opportunities and this growing business please join me in welcoming Matt to the stage thanks Karen um hello everybody I'm excited to be here in a mad Giri and run the growth team here at Rafi's and I spent the last 20 years or so now getting grey but in the online consumer space essentially kind of working out who the customers are what makes them tick how to find them at the right place at the right time and then craft this ideally perfectly orchestrated by an experience and then once they purchased get them to come back again and again I'm gonna spend a little bit of time talking about Rafi's a little bit about our story and how we kind of think about measurement attribution customer lifetime value and those types of things so Rafi's what our focus really is is around creating beautiful comfortable shoes made from recycled plastic water bottles we offer a range of stylish flats for the woman on the go who wants to look put together from the boardroom to the soccer field available in four silhouettes from $125 one hundred and sixty-five dollars our seamless 3d mitting process makes them comfortable straight out of the box with no break-in period and lastly they're machine washable so that adds durability they're built to last through hundreds of wares back in 2012 our founders set out to create a shoe that was stylish comfortable versatile sort of this front of a closet shoe they also wanted to eliminate the massive amount of waste created in the fashion industry they spent four years getting it right in research and development to create the sustainable product and supply chain before going and going to market in 2016 so for us thinking about sustainability it's it's not add-on marketing its core to who we are we think about it in four main ways one is how we produce we knit our shoes to shape that means we reduce the material waste that typically is seen in the shoe industry from in the thirty to fifty percent to two and a half percent durability while most shoes up end up in landfills because ours are mean machine washable and built to last we avoid that or short supply chain we own our factory and supply chain which allows us to move very quickly limit overproduction and results in zero waste and finally our materials and packaging no box in box we ship our shoes in a very compact box that the shoes can come in and if by chance that consumer needs to return or exchange they can go right back in that same box back to us using non-toxic and vegan adhesives and we've reused some plastic along the way we've repurposed over thirty million plastic water bottles have been reimagined repurposed as Rafi's so kind of now in my world the growth side of things so we knew we had a great product something that we were really incredibly proud of producing and women who had them were telling others over half of our customers were coming in via word-of-mouth a friend family coworker somebody telling him this story of this shoe and how it's changed their life they've ditched their heels there they have something that they don't worry about as much as their there's you know wandering around throughout their day yet for us still the majority of my target customer had no idea who we were so the problem to solve was sort of how do we get in front of that person as efficiently as possible so as we started listening to our customers seen what she was saying we knew she loves to share with each other they want to help one another to the as we're listening we're seeing things around washable Italy sustainability big shareability factors and also this sort of wink and nod that was happening when you spot somebody on Rafi's with the street I mean creating like testimonials like this where you know we're creating friendships this connection though with our consumer was really key to how we thought about getting our message out so early on it was PR it really helped to spread the word the early coverage we got from Vogue was huge Time magazine coming out the issue and more press Continue to come on after that and in my world kind of thinking about sort of growth loops PR is great it is a growth loop it's a singular loop and what happens is you get that press hit the user comes to the site hopefully they convert and then that's it you wait for that next press hit to get that loop going again but for us because we had this share ability it was creating another loop out of that and so this new user hears of Roth ease she comes to the site she purchases and potentially starts that again and you get this kind of viral effect from it so we knew we had the share ability and multiplier effect but with any individual hit early on it wasn't really enough for us to kind of break through there was lift but not at the speed and scale that we needed we needed more insights more options and so as we started to think about the customer journey we knew it wasn't you know it's not a linear path it's about kind of how all these different channels interact with each other and create those other loops and for us as a team it was important as we looked at our strategy to figure out how we can look at this from something that's measurable helps us find our next customers and while we were still very small still are those marketing dollars weren't infinite we had to figure out how do we do this as efficiently as possible so we kind of went back to the data we started listening to her tell she tells us what she needs we listen we adjust we make it we started surveying we started looking at social listening what is she saying in the market what is she saying across the internet what are we seeing from our reviews that we have and collecting all that information to kind of better round out that customer profile as we looked more and more at the data and kind of started shifting a little bit into the kind of geo kind of where she's at space we started to see that impact pop up differently from a penetration perspective across the US and so understanding kind of how she got to us was the heard of the next the next key so this kind of led us down to attribution now I don't think there is any perfect or exactly right way to measure attribution the important part is kind of to do whatever you can to understand that flow of ad to purchase word-of-mouth to purchase those types of things and figure out what is working there are number ways that you can do this you can look at straight lat last click using something like Google Analytics you can use their other attribution models or first touch and weighted average and linear and all these different ways to kind of figure that out you can use a more expensive multi-touch attribution system you can build your own internal model there's also in platform where you're utilizing you know the platform that you're advertising on and they're sort of more view through data to understand those things but one of the other things that helps us along the way is something like this where it's more of a quick path analysis view and so with this what we're looking at is essentially how do all these channels interact and where are there ones that this is a lis channel for us where one that like if you see those ones in blue for example would be more of an assisted path it's not gonna drive that user to is the first time but it's gonna help move that customer along the way to other approaches that have been really useful for us have been awareness tracking so just setting up if you can afford it a monthly bimonthly survey that goes out to a broad audience to help you understand how your specific tactics are doing in terms of driving awareness how how those can potentially help with understanding penetration within a given market and the other piece that we've used is we call Heidi how this helps really work really well in out-of-home TV podcasts to kind of help understand what that is so a little kind of a side on Heidi how so not sure if you know if this is or heard of it before but Sencha lee it's a post purchase survey to understand how did you hear about us it kind of helps you understand those specific drivers that might not show up the typical online tracking and it's cheap you essentially launch this survey post purchase you fill it with what are your what are your channels you want to measure you can try to run the gamut of everything that you have you can be very specific to a specific Tackett to tactic let's say you're running a new campaign a subway campaign in New York and you specifically want to measure that so you launch this survey post purpose for people who buy in that area and then you're able to kind of understand the nuance of what that specific tactic did to do that one of the other factors that comes with it though is to make sure that you're looking at a multiplier so what this basically does is you're your mapping your responses that you see through your normal attribution data with this survey data and so effectively what you're doing you're comparing two numbers the first of the actual orders that come through the second uses the survey data to estimate the number of orders by that channel and then you look at that fraction of survey folks who said they were driven by that channel and then you from that you create this sort of multiplier and it helps you kind of understand some of those offline elements and did they actually help drive that purchase versus just what you see and say a last click or another model so another approach that we we took at Roth ease was sort of this geo geo based we looked at where we were selling and whether or not that made sense or not we worked to try to under walk key drivers but our dataset was really small it wasn't really enough for us to kind of glean any true insight out of it so we teamed up with our Google team with that we cross-reference penetration data that we had against their kind of product based demand for where people were searching for our category so this idea that sort of now we know where she is we know where she's buying but there's hundreds of options out there for her we had penetration in certain markets but not others so we tried to look at how do we how do we kind of take these two things and meld them together and what we decided to do is sort of go smaller what we did is we identified a select number of markets along those penetration scale and with that figured out kind of which channels could we effectively target in those areas where we knew we could hit that specific audience and if it worked there was significant scale then setting that up from kind of a prediction model so basically like a regression analysis so that we could predict what sales should look like and then had kind of a test and control idea so there are certain markets where you would go in with these with these with these tactics and then there were the markets that you would hold back from that so we set up a two men two-month test to kind of measure these specific strategies and tactics against those kind of hold back markets so when we looked at the results saw positive it was you know this is something I like to see I like charts like this we saw the lift but some of the things that repeat a think about is like it did vary across market why and more importantly was it efficient we got this lift what we were doing additional tactics and we were doing things that we wouldn't normally do was that something that would kind of work at a broader at a broader scale so we did if I identify some wins and it helped us kind of reconnect back to this sort of measurement approach where we can apply specific channel level strategies at the Geo level so one of the areas where we did see some success was in with display we tested every single thing within that area we could think through smart display static remarketing prospecting display dynamic remarketing basically everything that we could throw at it and for us as we've looked at some of those like dynamic remarketing worked really well because we could personalize that experience based on what the consumer saw with custom intent campaigns we could take that search behavior for say the past seven days and apply that to what we were actually going to show up in that display campaign at the same time we optimized around geo so places where we weren't seeing penetration we weren't seeing conversions we were able to isolate and pull those out and then as we looked at creative testing a number of different approaches looking at text overlay looking at here owing the shoe versus editorial and taking taking some of those insights that we had back from the consumer around why she was why she was sharing like washability and how can we kind of fold those factors into into our ads so this sort of isolated approach on the display period and over this testing testing time allowed us to grow the channel about 350 percent in six months and you know we really wanted to make sure that we were making taking smart risks you know knowing that we had this finite budget and building these kind of milestones and we're effectively sort of out lighting our budget and goal is to hold ourselves accountable so getting into kind of not every customer is equal so how we think of lifetime value essentially we've we've understand who she is we understand what she's buying we understand how she's getting to us we had a little bit an idea of the efficiency of that spend as we're getting there but we know not every customer is gonna be worth same amount so we started to look at this and in terms of the different sort of cohort proaches you can take and looking at lifetime value we're just looking at first purchase so she is not a customer until she buys and at that point we kind of look at that value and so it's it's the revenue that was generated from a gross margin perspective and that sets your your initial LTV and then you add each month as they come back and make repurchases as you add new products those types of things that helps add to that value and ideally you know the steeper the curve the better and what you're trying to figure out is really how we can look at this and identify trends see things where you have step changes what happened in those periods and can you actually translate it you can break this down a number of different ways we can look at time of year is that our seasonality is that why certain certain cohorts are react in a different way and you might actually go down a path of saying like hey November December is our biggest season but those customers suck from a lifetime value perspective and we need to be more efficient if we're gonna try to capture those purchases in that time other times might be like hey at a past company I was at Easter was a huge holiday because all those people that bought came back at Mother's Day to buy again so like how can you get gather those nuances looking at Channel do you have a do you have a channel that actually is really efficient at finding these best customers versus another and then for us one of the big things has been this your ability factor and all of this data here is based on an individual's purchase what about the fact that this person might be a huge advocate and tell 50 different people about Roth ease or they drive that first piece within that office that all of a sudden the entire office is wearing Roth ease which is a sort of common story we hear which is something I'm trying to figure out how to replicate more of so we look at this and try to figure out like it's important things just thinking about like how do you measure it how do you make sure you're tying back and just thinking about that value and then sort of the whole LTV to CAC ratio and looking at what did that cost to acquire that customer and make sure that we have that efficiency so the last kind of piece for me really in thinking about this and we touched on a little bit is just around the creative elements so we knew we are a visual brand but some of those key shareable moments like comfort like sustainability aren't very visual washability was key and you know our creative team and and my UA team kind of came up with you know something as simple as this to kind of help communicate those things and for us it's about constantly testing testing motion testing movement testing dogs you know trying to figure out what's that thing that's gonna capture their attention and get us to where we can give them that little message enough to get them to the site and kind of move them through my funnel so kind of being enclosing the great thing for us is she's loving our product just three years in last year we posted 140 million in revenue is about three hundred fifty percent growth and we sold over a million pairs of Rafi's and as we kind of go forward and we think through like how do we sustain this how do we break through it it's us for release about starting with a great product something you can stand behind know your customer do everything you can't talk to her or talk to him bring them in do focus groups do usability survey them listen to them what are they saying on social media what are they saying to you what are they doing about your or your reviews talk to your CX team there's all these sources of information to that you can kind of gather and bring in and figure out how to take that get it into your data warehouse build a customer profile so that you know who this is and as you're driving people to the site you're able to kind of expand on that use all that data to drive testing pull every insight what shoes don't like for us you know what shoes says she looked at before what ads has she seen before how does that relate to the product category that she purchased you know measure everything and refine as you go and take risks it's important I mean for us as a very small brand early on with finite budget we had to know that like we're focusing on the right thing and we're trying things we're constantly testing and you know obviously only risk what you can afford and I think that is it thank you all you

Leave a Reply

Your email address will not be published. Required fields are marked *