2. Who are Stream:20?
ABOUT US OUR CORE SERVICES
Digital Sales Digital Sales
1. A digital marketing consultancy, bridging the gap
between agencies, technology providers and clients
Delivery Planning
to optimise online marketing performance
Driving incremental Providing the toolkits
revenue on Desktop/ and resource for sales
2. Work at both ground-level execution and senior- Mobile/Tablet delivery
level strategy and planning – onsite and on demand
Digital Sales Digital Sales
3. Clients work with us in a number of ways, including: Toolkit Organisation
• Traditional strategy and planning retainer across
Ensuring the correct
loyalty & retention and acquisition Optimising your
toolkits are
• Interim resource at both mid and senior level business structure for
implemented for
success
• Short term pilot campaign management success
• Audit and technology/agency selection projects
CLIENT SNAPSHOT
3. The Innovation lifecycle and chasing sales
In the initial stage of innovation lifecycle of an organisation, to drive sales firms tend to
do:
• For first 6-12 months-setting up multiple channels of marketing, getting them up
and running.
• Next 12-36 months-Layering best practices of decision making, best budgeting
practises, analysing and getting in to recent industry channels.
• 3 years+- Trying out new channels, coming up with variations and versions, in short
doing new things that could drive sales.
when everything is in place, well layered and still the management is looking for growth
a question arises what to explore/exploit?
4. The Innovation lifecycle and chasing sales
PUSHING LIMITS
LOW HANGING
BEST PRACTICE
FRUIT
6 -12 months 12 – 36 months 3 years +
Doing new
Getting good Doing current
things that
things done industry
drive
initiatives
incremental
better
sales
5. We have been forced to look for
ways to drive incremental
growth, beyond where you
would normally go
6. Ironically one of the best
metrics seems to be
Conversion Rate
or
Conversion Rate Expectation
7. Conversion Expectation- what is it?
• Conversion expectation is what conversion rate you would expect at any given
point in time, assuming your marketing activities are, what you would normally
do.
• Conversion rate – as you would expect this is the ratio of people visiting your site
or a section of your site compared to sales (or upgrades or leads, or requests
• Any given point in time – Conversion rates are seasonal, and highly correlated
with demand levels. More people have a propensity to convert in peak periods
and less in lower periods. This means that conversion rates vary based on a
point on the seasonal curve.
• Your marketing activities – your marketing actually has a large impact on
conversion. Key factors are (but not limited to):
• Traffic levels – the more traffic you receive, the lower the conversion rate
• Offers – the better the offer, the higher the conversion rate
• Product changes – if your product improves, so does your conversion rate
• Media mix – different media channels deliver different quality of inbound traffic
and hence conversion rate
8. • Conversion rate is used for planning.
• Creating an expected conversion rate (Conversion expectation) is not
about looking at last year’s conversion rate and upping it a bit to account
for improvement in usability.
• It is a metric that opens multi-channel sales analysis up to new areas of
investigation and importantly reveals approaches to drive incremental
sales online.
• It is a robust method to establish what the consistency looks
like, factoring out all of the influences. If you can accurately explain any
movement away from expectation you have a very powerful digital sales
planning tool.
9. We have started using Conversion Expectation
What we would expect conversion to be if you did what
you would normally do
• If you used the same
offers
• If you had the same
products
• You had the same
media mix
• You had the same
volume of traffic
It is such an important indicator – because it is the most consistent
10. It is not as complex as trade analysis
….but there is a lot of work on the curve
to standardise conversion independent
of influencing factors
11. Conversion Expectation – key levers
What we would expect conversion to be if you did
something different
• More traffic you pump
in, the lower it goes
12. Conversion Expectation – key levers
What we would expect conversion to be if you did
something different
• Depending on the
offer you give it goes
up
13. Conversion Expectation – key levers
What we would expect conversion to be if you did
something different
• If your product
improves, it goes up
14. Conversion Expectation – key levers
What we would expect conversion to be if you did
something different
• Improve the
usability, it goes up
(marginally)
16. Conversion Expectation is standardised
Variation from conversion expectation is a standardised
measure, precise and independent of influencing factors
• You observe change
from seasonal
expectation in one
point
• …..and it behaves
consistently at other
points
17. Conversion Expectation is standardised
Variation from conversion expectation is a standardised
measure, precise and independent of influencing factors
• You observe change
from seasonal
expectation in one
point
• …..And it behaves
consistently at other
points
• You can predict
anywhere on the
curve
19. Offer effectiveness & prediction
Once you have predicted an offer impact, you can layer
in traffic – which allows you to estimate sales
20. Creative Effectiveness testing
OBSERVATION CHALLENGE REMEDY
Maybe it was performing
High performing creative
within or below
in peak periods
expectations
Traffic weight so high that
Large campaigns with low conversion expectations Measure against
performing creative actually have to be Conversion expectation
lowered curve to assess success
Is the offer having the
High performing creative
impact and not the
in line with great offer
creative?
21. A predictor of cross channel success - Search
MISSED OPPORTUNITY
PLANNING FOR KNOWN
DEMAND
22. Evaluation of quality of traffic
Channel Conversion Growth Predicted
Channel
Share Expectation Potential Conversion
PPC 30% 2% 2.2%
Display 10% 1% 0.5%
Social Media 5% 1% 1%
Affiliates 20% 1.5% 0.75%
SEO 10% 2% 2.25%
Email 5% 4% 4%
23. Sales Forecasting
• Your base line with
Residual Demand low traffic
• What it looks like in
Traffic Growth higher traffic scenarios
• Cross Channel impacts
Offer Driven • What it looks like with
Growth offers
Other Factors • Strategic growth
projects
24. Conclusions
• Conversion expectation as a metric allows you to
accurately estimate the impact of your initiatives
• It provides rigour to your teams and a method to
judge performance – taking out external factors
• It opens up your ability to plan and take more
measured risks
