How to develop a micro-conversions measurement environment

It’s normally easy to achieve a long term objetive if you can break it into short term goals. There’s a big different in arriving to your office with the idea you have to increase your company revenue in 20 percent and arriving to your office with a list of 5 tasks you have to perform in order to drive the company 5% closer to its objetive. Right?

It’s great having a long term vision, but that’s for the C level, they are in charge of the company vision. Once that the future is clear enough it’s time to complete the blank spaces that drives the company from point A to Point B with the available resources. It’s important to point out that when I talk about available resources, I mean that you have to plan how to get from A to B without increasing the quantity of the resources or investment, means current people, current technology, current information, etc. If you, at least, don’t try, you wont be producing a stretch your structure, then you wont learn and you wont become more efficient. More money wont make you more efficient, actually it normally does the opposite.

Breaking apart the system into subsystems: Another point we need to know before starting a Micro Conversion process is what’s a System and a Subsystem. A system is a set of pars interacting together with a common objetive.

micro_conversions_models

So is the biggest set of parts that we can take that has a very specific objetive to get accomplished in our case the “Company” (or holding). Some parts of the systems can behave as systems itself with their own inputs, operations and outputs towards a particular goal (and not objective). The following is an example of the break down procedure (a very simplified one) for a Micro Conversions project.

1. Level 1: GM.

Input -> Information + Money.

Operation -> Market decisions.

Output -> More money.

2. Level 2: Chevy, Buick, GMC and Cadillac.

Input -> Raw material + Information + Processes + R&D.

Operation -> Vehicles.

Output -> More money.

So basically this subsystem is reaching a goal that helps the organization as a whole reach a bigger objetive.

3. Level 3: Marketing Department at Chevy.

Input -> Information + Money.

Operation -> Communication + persuasiveness.

Output -> Demand.

Through this activity the marketing department is generating demand, that will generate sells that will help the subsystem Chevy to achieve its goal, ergo, helping the system GM achieving its Objetive.

4. Level 4: Digital Marketing Department.

Input -> Traffic.

Operation -> persuasiveness.

Output -> Demand.

The digital marketing department generates demand on the digital arena. Through this it helps the subsystem Marketing Department to achieve its goal, helping the subsystem Chevy achieving its goal, ergo, driving the System GM to its Objective.

Level 5: Customize your car and run race with it app.

Input -> Gamers.

Operation -> Select car, customize it, try it in a race track, race with others online, etc.

Output -> Engaged gamer.

From all the engaged gamers a share will be interested in getting a car in a period of not more than a year. From those, some of them will finally become part of the Chevy demand (all this has to be supported with information, something very simple but extremely important, otherwise this worth nothing. Remember to check this post about metric connectors), helping the Digital Marketing subsystem generating demand, which helps the Marketing department generating demand, which helps Chevy Generate more money, driving GM to increase its value.

As you see it’s a very straight relationship between an specific conversion action and how that specific conversion impacts in the entire system (company).

Why don’t just measure the specific conversion? The problem with defining the conversions without analyzing the relationship with the bottom line is that we can be chasing a conversion that wont drive your company closer to its objetive. We have to be very carefully on choosing the right conversions, otherwise we will finishing measuring everything as a conversion. Micro conversion activities are not about measuring everything, but about simplifying the process of bringing the company closer to its objetive by chasing very specific activities that if they get done, will impact on the bottom line.

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