.
Editors Note: The HSMAI Internet Marketing Advisory Board and TIA�s
eCommerce committee joined together to explore the important topic of online
metrics. Although driven by an interest in developing benchmarks for online
metrics, all participants were also eager to define a broader scope of
online data for common reference in the travel industry.
By Cindy Estis Green
The objective of The Online Metrics Handbook for Travel Marketers was
to get the pieces of the travel industry online metrics puzzle laid out
clearly. There are many anomalies and variations in terminology and methodology
that make a discussion of metrics challenging. Throughout the data collection
process, there were several themes that emerged to help inform and impact
the role metrics plays for travel marketers:
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Trends in online travel marketing
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Consumer trends in online usage
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Differences to other online-dominant industries
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The impact of company culture on the use of metrics
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The limitations of available data sources
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Best practices in the use of metrics
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The value of benchmarking
There are a few principles that jumped out from the interviews:
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Reporting does not equal analysis.
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Data does not equal business intelligence.
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Having reams of slick reports does not make you a better web marketer or
mean you have a better web analytics package.
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Although essential, there is far more to online metrics than a web analytics
package.
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The costs of perfection are far too high relative to the benefits of achieving
�an acceptable level of inaccuracy�.
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Online metrics are marketing data and should not be confused with financial
data.
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Some metrics are much better than no metrics.
The report illustrates many different types of metrics and helps explain
some concepts in online metrics including:
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Web analytics for traffic, transaction and campaign tracking
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Consumer online attitudes and behavior
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Key Performance Indicators (KPIs)
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The value of benchmarking
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The role of industry wide data
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The role of profiling Web visitors
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Emerging new metrics based on social media
The report provides guidance and explanations about the following aspects
of travel Web marketing:
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Translating technical details into meaningful marketing information.Travel
marketers need to learn about the nuances of their online data. They cannot
delegate this to a technical team since these details affect the quality
of the data. Many of the underlying files that describe online activity
are coded in a way that can be difficult to understand when transferred
to marketing reports. By establishing meaningful coding, the resulting
marketing reports will yield useful.
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Online data is messy. So its users must learn how to gain
benefit from it which will mainly come from the trend information, specific
tactical reporting such as campaign-specific data and customer survey data.
There are many aspects of online analytics that may prove inconsistent
or less reliable than a marketer would want. In spite of this, the trend
lines will always prove helpful when analyzed over time.
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Limiting the scope of the metrics. A practical method of analysis
is to limit the number of metrics reviewed regularly and organize them
into meaningful reports around the organization�s key performance objectives.
This will create a greater benefit because it will be possible to create
a greater focus for the analyst that maintains a better connection between
the data collected and the actions planned.
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Building bridges to customer-centric data is key. Knowing that the
scope of metrics goes well beyond the web analytics package into more customer-centric
data sources is important. Most web analytics packages track a website�s
direct usage but when this data is combined with attitudinal and behavioral
data collected through direct customer feedback (usually surveys), a powerful
foundation is built for consumer intelligence.
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Segmented information can be more useful than the aggregate. There
can be more benefit from filtering data than from looking at the aggregate
so the findings reflect on specific actions for specific market segments.
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Integration of data from different sources is essential. Understanding
that the integration of travel data is crucial and that this integration
might include online/offline (reservation/call center), behavioral and
attitudinal data and external industry data. If the travel executive is
not examining a full picture of the customer experience throughout all
distribution channels, the organization is more liable to reach inaccurate
judgments skewed by partial input. Some analytics vendors are equipped
to assist in this regard, some travel organizations can handle this internally,
many tap outside specialized resources.
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Travel is unique. While every industry has anomalies and nuances
that distinguish it from the others, those interacting with travel organizations
should recognize that the travel industry is different from other major
online marketers such as retail, financial services, automotive and wireless.
There are many issues that will make adoption of all forms of web analytics
different. Some relate to underlying reservation systems, others are driven
by the nature of consumer behavior in this sector and others are driven
by the financial and/or organizational structures within some sectors of
travel.
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Everyone loves a horse race. But appreciating the value of benchmarking
between travel organizations, and when comparisons can be meaningful and
when it is best not to pursue them is important. These comparisons may
not always be apples vs. apples. Internal benchmarking is always a good
practice. Comparing an organization�s performance against its objectives
will always be effective. Comparing to organizations that are presumed
to be similar can be riskier because the underlying differences may result
in inconsistent metrics. When comparable though, this practice can be useful.
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Continuous improvement is the best policy. The approach needed for
online metrics is one of continuous improvement. A marketer needs to have
goals, assess results, make changes and examine the effect of the changes
until there is gradual and systematic improvement in the Web site performance.
.
Online Metrics Data Model
This model (above) developed through interviews with travel organizations
and analytics vendors illustrates the many data types used for the purpose
of online marketing. It also shows the data sources used for each type.
Although there should be a connection between the data categories, these
links depend entirely on the online marketer. Being an emerging new field,
online metrics analysis is part art and part science. Some organizations
are more integrated in their interpretation of data than others. The goal
should be to move toward a higher level of integration.
There are additional internal data sources often used by travel marketers
that, although important to marketing decision making, are not shown in
this model since they are not specifically online in nature (e.g. frequent
traveler program data, offline reservation data).
Web analytics is usually defined to be the study of clickstream, behavioral
and attitudinal data, although the majority of web analytics software packages
on the market in 2007 focus mainly on clickstream data with some basic
behavioral components (like limited content and navigation analysis). The
Online Metrics Handbook extends beyond the web analytics data sources to
illustrate how the marketplace data fits into a travel marketer�s analysis.
It also extends beyond the typical purview of the web analytics software
to explain how in-depth behavioral and attitudinal measures can inform
the marketing strategy and tactics. Some web analytics vendors are equipped
to help in the comprehensive analysis of data. This skill set is important
whether it is tapped from within a travel organization or through the use
of outside consultants and vendors.
This is a summary of a report that will be available for sale by www.tia.org.
© Hospitality Upgrade, 2007. No reproduction or transmission without
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