Monday, January 26, 2015

Adobe Uses Conversion Rate to Drive Success

When Adobe Systems launched a new digital marketing campaign for Adobe Marketing Cloud, a collection of integrated online marketing and Web analytics solutions, it used conversion rate as a key metric to measure success. Conversion rate is “the ratio of conversions over a relevant denominator” (WVU, 2015). A conversion happens when a visitor to a website takes an action the digital marketer wants them to take, whether it’s making a purchase or downloading a white paper (Qualaroo, n.d.).
The goal for Adobe’s Marketing Cloud campaign was to convert more visitors to its website into solid leads. Since the campaign launched, Adobe has seen a higher number of inquiries over pre-campaign averages (Adobe Systems Incorporated, n.d.). Perhaps Adobe’s conversion rate is based on the number of visitors that submitted a form to request more information. Company leadership may have decided that in order for this digital campaign to be successful, the conversion rate of this form needed to increase by 10% over pre-campaign averages.
The key performance indicator (KPI) set by the leadership is being reported at the aggregate conversion rate as a 10% increase on form submissions for the site’s entire universe. Adobe also needs to apply conversion rate to a segmented universe as well. A segmented universe is a subset of traffic defined by some period of time, campaign (i.e., banner ad), referrer, etc. Company leadership may measure success by this KPI; however, the digital marketer needs to dive deeper than just the aggregate conversion rate (WVU, 2015).
For example, part of Adobe’s new digital marketing campaign may have included a series of banner ads. Adobe’s digital marketing team would need to know which of the banner ads it is running, converted to the most and least visitors. Adobe may find a banner ad on PCWorld.com converts fewer visitors than a banner ad on CIO.com. Why? Perhaps CIO.com is the better target audience for Adobe Marketing Cloud. Whatever the underlying reason, with limited budgetary resources, a digital market has to be able to spend limited resources wisely. As a result, Adobe may decide to stop advertising with PCWorld.com based on data and not a gut reaction. This money could then be reallocated elsewhere.
To determine the conversion rate for these individual banner ads, a unique URL can be created for each one using tools such as Google’s URL builder (https://support.google.com/analytics/answer/1033867?hl=en). This tool adds custom campaign parameters to your URLs (Google, n.d.). Goal funnels can then be up in an analytics program to report the conversion rate on these URLs (banner ads). Adobe would then be able to see out of the referring banners, identified by their unique URLs, which one had the most and least users submitting the request more information form.
If Adobe is looking to increase or optimize its conversion rate, it can identify trouble spots by looking at and analyzing other key metrics such as bounce rate, exit rate, average time, and average page views. Understanding what’s going on behind these numbers is the first step in devising a plan to improve conversion rate. A high bounce rate means people aren’t finding what they’re looking for; so, they’re leaving immediately. Exit rate is the percentage of people who leave after viewing the page. Therefore, a page with high exit should be a red flag. If average time on site is low, visitors aren’t sticking around long enough to convert. When it comes to average page views, while more page views may mean more engagement, it can also mean a lack of clarity in your conversion funnel if there’s no conversion. By improving upon these metrics, conversion rates will increase (Qualaroo, n.d.).

References
Adobe Systems Incorporated. (n.d.). It’s the ultimate case study: Ourselves. Retrieved from http://success.adobe.com/en/na/programs/ultimatecasestudy.html
Google. (n.d.). URL builder. Retrieved from https://support.google.com/analytics/answer/1033867?hl=en
Qualaroo. (n.d.). What is conversion rate optimization? Retrieved from https://qualaroo.com/beginners-guide-to-cro/what-is-conversion-rate-optimization/
WVU. (2015). Lesson 2: Basic web analytics. Retrieved from https://ecampus.wvu.edu/webapps/blackboard/execute/displayLearningUnit?course_id=_29082_1&content_id=_1454153_1&framesetWrapped=true

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