Part 3 of The Incrementality Battle: The Right Technology
Part 2 of The Incrementality Battle: Regression Analysis
As I discussed in Part 1 of our Incrementality Playbook, creating a model to help drive investment decisions is a great first step. There is a need for marketers to understand where the most efficient next dollar is spent, but more importantly, whether that conversion was truly incremental or would have happened regardless.
Once you have the model in place, the next piece is to take a more mathematically robust step: understanding diminishing returns to allow for even better budget allocation decisions. It is important to note that Part 1 and Part 2 are not mutually exclusive—we can leverage an incrementality model in conjunction with a regression model to understand how our last dollars invested are performing.
Part 2: Regression Analysis
“Regression analysis is the hydrogen bomb of the statistics arsenal.” - Charles Wheelan
The mere mention of regression analysis usually sends a large portion of the population running for the hills, but it is a powerful tool in our toolkit. To make this analysis more digestible, below are some useful tips:
- Run a regression for each tactic separately: Branded search, Non-branded search, Competitive campaigns in search, Facebook/Instagram Prospecting, Facebook/Instagram Remarketing, Programmatic Prospecting, Programmatic Remarketing, Affiliate, etc.
- We have found that, in most cases, forcing a best fit line through 0 at the Y intercept is optimal (see more in the charts below).
- Build and test multiple models for each channel and tactic. Select the models with the best fit to the data.
- Don’t forget to take into account seasonality, trend, and differing spend levels across all channels, or other factors that impacted performance. Remove seasonality, normalize data, or adjust the time period analyzed if needed.
- Identify and remove outliers or noise (e.g., periods of testing).
- Last click attribution, while not ideal, is ok as a starting point! You won’t have a deduplicated total cost to acquire an incremental conversion, but the insights will still allow you to make better cross-channel investment decisions in short order.
For those of you a little further along on your journey, you can work to incorporate a data-driven attribution model as your source of truth for a more unified view of the value of each channel. There are still limitations, especially when dealing with the lack of view-through data from Facebook/Instagram, but a data-driven attribution model will give you a baseline to measure success against as you test and scale.
By bringing Part 1 and Part 2 of the playbook together, marketers are able to better allocate their marketing spend to the tactics which are truly having an impact on their bottom line and bringing in revenue that is incremental to the business.
If you’re interested in learning how to do this for your company, reach out to Rise.
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Collaboration: A Crucial Component to Your Website Redesign
In a Rise-hosted virtual event, Robert Prieto, Manager of Web Marketing at Nicklaus Children’s Hospital, shared how effective collaboration and strong working relationships across the entire organization helped the hospital launch an award-winning website with Rise.
He discussed two important groups for generating buy-in:
- Senior Leadership: Launching a successful redesign requires a lot of pre-work; if your leaders don't understand your pain points and the barriers to conversion on the existing site, they could be resistant to investing the company’s time and resources.
- Stakeholders: Whether it is specific teams, such as your IT team, or all of your organization’s employees, it is crucial to loop every stakeholder in on the plan and keep them accountable for the collaborative efforts on a redesign.
After gaining buy-in from these two groups, it is important to maintain a transparent relationship with them during the whole project. In the case of Nicklaus Children’s Hospital, having weekly status calls with their IT team was one way that the marketing team was able to keep other employees involved throughout the redesign process.
On launch day, people from all over the world were on a Zoom call watching the redesign go live. Not only did the launch run smoothly, the website continues to receive industry recognition to this day. Reach out to Rise to learn more about how company collaboration can serve as an asset to your website redesign.
Empowering Your Team By Updating the Technology Behind Your Website
With the right implementation and prework, a website redesign project can transform the technology behind your current website.
At Rise, building technology that empowers users is the cornerstone of our development work. In a recent virtual event, Lou Amodeo (VP, Digital Strategy) discussed how Rise partnered with American Lung Association to conduct a total redesign of their website, lung.org, and solve a major pain point their employees were facing.
The non-profit’s previous legacy system required them to seek outside help or contact their website development team whenever they needed to make a change. During the website redesign process, Rise held discovery meetings with the organization’s stakeholders to understand what technology was needed to make telling their brand’s story online more accessible and efficient. Rise built a new CMS through Kentico that gave American Lung Association’s team the ability to own the creation and updates of web pages.
As a result of this partnership, American Lung Association’s website has been named one of the best association websites of the year by Gulo, Kentico, dotCOMM, and Hermes. Learn more about Rise’s data-driven web development service by reaching out to us.
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