Your Customers Aren’t Siloed and Your Measurement Shouldn’t Be Either

by Ovative Group
May 2, 2016

What’s inside:

  1. Enterprise Measurement: What is it?
  2. Enterprise Measurement: Why is it important?
  3. The first type of Enterprise Measurement: Offline-to-Online

Executive Summary

Let’s face it, your customers are multi-faceted, complex, and are experiencing both the ecommerce and brick-and-mortar segments of your business to varying degrees, often simultaneously. Why then, is measurement of you marketing channels relegated to silos? In this blog, we’ll define Enterprise Measurement and introduce you to a specific type of Enterprise Measurement, Online-to-Offline. Finally, we’ll give you the 10,000 foot view on how you can create your own Online-to-Offline capability.

This blog is the first part of a multi-part series we took from our first white paper on Online-to-Offline. Can’t wait to read the whole story? Download the white paper here.

Enterprise Measurement – what’s that?

From Amazon’s move to open bookstores, to apparently seamless omni-channel experiences of companies like Starbucks and REI, viewing a company as separate silos, online and brick and mortar segments, isn’t just antiquated, it’s bad for business.

How the customer sees it

With the ongoing shift of customer engagement and marketing budgets to digital channels across industries, C-Suites are demanding the ability to measure the impact of digital based on a holistic view of enterprise results.

This, is where we come in.

At Ovative/group, we define Enterprise Measurement capabilities as the data, technology, people, & process necessary to stitch together the holistic customer path-to-purchase to unlock financial value at an enterprise level.

Typically, we break Enterprise Measurement into four types:

four types enterprise

  1. online to offline1. Online-to-offline (O2O): connect customer behavior across online and offline touch points to inform product and marketing buying decisions and develop content that considers the omni-channel impact on decision making.


  1. multi touch attribution2. Multi-touch attribution & cross-device: allocate and optimize your marketing budgets based on customer interaction across all marketing channels and devices rather than each in a silo or based solely on the last event.


  1. full media mix3. Full media mix: apply both customer-level and regression-based statistics to measure your complete media investment across both digital and traditional marketing and inform macro budget decision making and shifts across channels.


  1. Customer lifecycle4. Customer lifecycle: develop customer value metrics and insights that go beyond the initial lead or purchase by analyzing behavior over longer time periods and what start as indicators become actual sales.

We know what it is, now why is Enterprise Measurement Important?

  1. 1. Business strategy has changed. The rapid integration of offline and digital experiences and the demolition of the walls between internal teams creates the need for more sophisticated measurement. Channel centric strategies and organizations are being integrated to form an Omni-channel approach, but measurement has lagged behind. In fact, 70% of marketing executives polled said they would increase their spending on mobile, digital and social platforms if there were better ways to measure return on investment.1 This trend has slowed progress and prevented multi-channel organizations from competing with single channel (pure play) businesses.
  2. 2. Customer behavior has changed. Exponential growth in the number and type of possible digital interactions – mobile-based in particular – along the path to purchase has led to greater need and investment to understand the impact of digital.  According to a study by Google on Digital’s impact on in-store shopping, 87% of shoppers are gathering information before entering a store. Those customers who gathered information electronically don’t seem to rely on one single source, but rather use many different resources to conduct their research. 1

digital impact on in-store shopping

  1. 3. Customer experiences have changed. Growth in digital touch points has inspired new online tools that help facilitate the cross-channel purchasing and exploration process, causing the role of online versus offline on consumer decision making to become blurred. In retail, for example, digital interactions are expected to influence 64 cents of every dollar spent in retail stores by the end of 2015, or $2.2 trillion, according to Deloitte Digital’s latest study.  This dynamic makes customer-level trackability much more complex, but even more essential to understand.
  2. 4. Technology has changed. Related, we’ve observed unpresented growth in enabling emerging technologies over the past decade.  According to a new “Ad Tech Vendor Benchmark” report from Technology Business Research (TBR), advertising technology revenue is set to grow over 300% by 2020 — up from $30 billion in 2015 to $100 billion by 2020.  This rapid innovation will continue to make customer behavior more trackable, addressable, and measureable in ways never possible before.
  3. 5. Financial focus has changed. Digital spend continues to rapidly grow causing CFOs to ask for a reliable measurement tool to understand if this shift makes financial sense. According to PWC Global Entertainment and Media Outlook, Internet advertising will outpace TV by 2019 and continue to dwarf all other traditional marketing channels, putting more pressure on Mr. CFO to make sense of it all.

market size

These motivators are quickly forcing an industry transformation where sophisticated forms of data manipulation and measurement are being considered “must have” tools as opposed to more “holy grail” achievements as they were not too long ago. Unlocking the value from these tools has the potential to drive more return for your business than any other investment in your queue of strategic projects.  And become a competitive differentiator that few will be able to match any time soon.

In this upcoming series we’re going to delve deeply into the first component of Enterprise Measurement, Online-to-Offline (O2O). Not only will we help you to more fully understand O2O, but we will also uncover the questions that O2O can solve, as well as provide a roadmap for building out a successful O2O capability.

More Details on Online to Offline

Above, we defined Online-to-Offline as a way to, “connect customer behavior across online and offline touch points to inform product and marketing buying decisions and develop content that considers the omni-channel impact on decision making.”


So what is Online-to-Offline expected to do? Solve the universe’s biggest problems? Probably not.  At least not day 1.  But it will address many of your businesses most complex problems by allowing you to answer questions such as: What is the impact of an online visit on offline sales?  Does this impact vary by category or product type? What marketing channels influence offline most?  Can I use them to drive offline acquisition? And by doing so, unlock the potential for digital and marketing ROI on a level no other form of optimization can offer.


Taking steps to solve this disconnect can unlock amazing potential.  However, in order to build and activate an O2O capability as well as navigate the organizational disruption that comes with such an endeavor, it will take top down support at every step and multiple people at all levels of the organization to be involved.

At Ovative/group, successful O2O capability development is made up of three phases:

  1. 1. Create the plan: Successful O2O capability adoption hinges on having an aligned view on what you’re trying solve, the priority of it, and that it’s directed towards the agreed upon macro needs of your business. Given there are likely many competing initiatives for resources and budget, it’s also essential that you understand what related tools you already have in place today and the expected value that would come from O2O, before making any substantial new investments.  The Create the Plan phase is about getting the alignment you need by proving the business case for an O2O capability and creating a data-driven roadmap that helps your business achieve its top objectives.  Due to the excitement around getting to action or desire to go straight to implementation of a new “cool” technology, more often than not, it’s this phase that is often under-scoped, ultimately leading to failure.
  1. 2. Build the solution: With business objectives documented, interfering gaps identified, and the business opportunity for resolution quantified, we move from prototype to forming a full-functioning solution. Due to the variety of gaps that may limit your ability to take action on O2O insights, resolutions may involve actions in any one of the four areas that makeup a complete O2O capability – data, technology, people, process, and always require customizations that are specific to your company.  However, there are common threads of requirements that we see across organizations and steps to take to satisfy them.
  1. 3. Activate the insights: As defined at Ovative/group, Activation is the process of unlocking the potential of your data and measurement capabilities to realize business value. It can take many forms, some of which reviewed already, and always requires significant behavior change to identify and take advantage of business opportunities. Activating the insights is all about the methodical process of unlocking and capturing your new O2O capability’s potential.

Each of these individual phases are filled with its own complexities and custom nuances at any given company.

In the next few posts, we will be diving deeply into each one of these phases as well as providing links to case studies where the phases are illustrated in detail using real examples.

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