July 7, 2022 – 7:57 am
By Jack Neff, for AdAge*
Beauty, fashion and luxury marketers are as data-driven as any other industry, but a lack of unified metrics and challenges in measuring the success of influencer marketing campaigns are among the factors holding back the industry’s progress in using data effectively.
These are some of the findings of a report by Publicis Sapient and analytics firm Launchmetrics based on a survey of 1,000 marketing, communications and public relations professionals in the US, Europe, Australia and China.
In the survey, 60% of marketers and 70% of data scientists said that a unified view of marketing performance should be a priority. But it’s not easy to find a metric to guide everyone. While sales and customer conversions may be at the forefront of this unifying metric, they’re not the only ones, and it’s not always easy to get a return on marketing efforts in an industry that still does much (or most of its business) on a single job.from ants.
Influencer marketing has become particularly important for beauty, fashion and luxury marketers, and measuring it is a particular challenge, with 40% of marketing respondents saying they trust their influencers or brand partners to report on their influencers’ performance .
‘They follow everything’
One of the main reasons for the difference is the relatively advanced development of e-commerce at all levels of the beauty, fashion and luxury industries in China, according to Stephen Picard, associate managing director at Publicis Sapient.
One advantage of working with data — and just doing business — in China is “for better or worse, you’re doing everything on WeChat,” said Alison Levy, chief marketing officer at Launchmetrics. “You walk into a store and they know who you are. You shop there, whether it’s online or on a website or a WeChat page or … they track everything.”
That obviously raises privacy concerns that are creating resistance in the West, but it also raises the question of how marketers can best build and analyze their primary data, Levy said. “You shouldn’t buy data, but you should figure out what tools you need to really aggregate your own data in a better way.”
While a system of influencers rating their own work, reporting audience numbers, isn’t ideal, moving to measuring and compensating solely through affiliates or social media sales also misses a key point, Levy said.
“We’re starting to see brands looking to create a new metric for long-term customer value,” Levy said — one that relates to broader marketing activities, but also to the “benchmark value” of influencers. Measuring CLV also balances ROI measurement against simple analysis of current sales, as the cost of customer acquisition is predicted early on, while value is realized through repeat sales over the lifetime of the customer.
Another important factor to consider when building analytics capabilities and performance reporting dashboards is the broad democratization of who uses data and analytics, Picard said. Many years ago, analytics, data science, and market research professionals were the primary users of performance dashboards. Increasingly, he said, chief marketing officers and other brand marketers are the ones tracking and making decisions directly based on data.
Coming up with a unifying metric won’t be easy, since every department and every activity has different KPIs, Levy said. However, some retailers are doing better than others – especially those in Asia.
“The main takeaway we’re seeing is the difference between East and West,” Picard said. “Both in e-commerce and digital analytics, you see the Orient faster and faster. And the gap is quite clear. When you interview CMOs, you see that the maturity level is different, which I see as a big opportunity for the West.”
*Translation by Sarah Lidice