The Experience Business: How Do You Measure Success?
by Kevin Lindsay
posted on 03-22-2017
The experience business. Not to be overly simplistic or obvious, but the term “experience business” is made of two important words: experience and business. Of course, you want to provide your customers with amazing experiences wherever they touch your brand — on your app, website, kiosk, and even with your customer-service representatives or in-store salespeople. Doing a good job creating those customer experiences? That’s a point of pride for you. You want people to like your company and probably have multiple ways of determining where you stand with your customers — everything from ratings and surveys to evaluating their willingness to recommend you to their friends. You’re not immune to the need for recognition.
All that goes without saying.
But, as a business, you know you can never take your eye off what sustains your business and moves it forward. Let’s face it — at the end of the day, we’re usually talking about money. The type of business you’re in determines how you make money. For example, retailers sell goods, hotel companies book rooms, banks approve credit, and many nonprofits generate revenue through donations. So, while companies like US Bank, Marriott, and Australia Post — as well as many other brands who are with you at Adobe Summit this week — all make money in different ways, what they have in common is a strong desire to optimize those all-important experiences they deliver against their most vital financial-success metrics.
The Adobe Target Payoff Infographic
So, how does Adobe Target — the experience-optimization technology behind Adobe Marketing Cloud — help you succeed? Well, just like you, those of us on the Adobe Target team take experience optimization very seriously. Target helps you deliver personalized experiences, as well as experiment with them, and then it ensures that those experiences pay off. What measures point to this success other than the conversion-rate lift you see associated with an experiment variation?
To give you just a hint at how much of a payoff companies stand to gain from Target, we looked at the aggregated figures across our user base and created the Adobe Target Payoff infographic — an infographic that is simply chock full of interesting stats and numbers, all based on data from the Adobe Target system.
Following are a few examples of what this infographic highlights.
Experiences and Revenue
In 2016, Target delivered experiences to over 18 billion people — that’s 2.5 times the world population! And, through those experiences, we had a hand in generating over $99 billion for our customers.
But, let’s dig down into the success of Adobe Target’s users, focusing on a few key industries.
If you’re in retail, you’re seeing big payoffs with Target. Our own research shows that the retail industry’s average conversion rate is 2.3 percent — Target retail users are beating that rate by 6 percent. So, hypothetically, if each conversion leads to a $30 sale, and you have 20,000 visitors — that’s an additional $36K in your pocket compared to those who are just hitting the industry average.
Media and Entertainment Industry
If you work in the media and entertainment industry, you’ve also seen massive returns from Target, increasing your revenue per visitor (RPV) by 60 percent just in the last year alone. That’s easy math. If you had 20,000 visitors, and the RPV was $5 last year, then you made $100K last year. And this year, you’ll make $160K.
If you’re in financial services, you’re using Target to experiment more and learn what makes visitors tick. What you’ve learned has helped your company double the number of conversions from each visitor in 2016 compared with 2015. That’s big progress.
Travel and Hospitality Industry
Similarly, travel and hospitality companies delivered 28 percent more experiment variations in 2016 compared to the previous year. As a result, your visitors took almost one-hundred million more actions that you wanted them to take — such as booking rooms or joining customer-loyalty programs. If you tie even a fraction of those actions to revenue, it’s clear you’re significantly increasing your bottom line.
From Experimenting — to Experiencing — With Adobe
As part of the Adobe Target team, we get to take part in these really creative ideas that can be put to the test through experiments — to become experiences. So, how do you measure the value of an idea? Let’s consider a real example — adding an anxiety clock to a website to let visitors know when Black Friday deals ended. The clock generated an additional $209K for a retailer on Black Friday. A brilliant idea — and, as it turns out, a highly profitable one as well.
When you look at these types of successes across many customers in many industries, you can imagine the impact that these experiments and experiences have. Experimenting with Adobe Target pays off for our customers in big ways.
We’re privileged to work with you and other amazing brands across industries — brands that continually stretch the bounds of how to express ideas, make experiences richer, and experiment with new things in digital that will continue to offer even more ways to realize business payoffs down the road. And, all from the experiences that you already enjoy giving your customers.
Take a look at the Adobe Target Payoff infographic to see where your business contributed to these exciting measures.
The Adobe Target Payoff from Adobe Marketing Cloud