Marketing

The Power of a Single Source of Truth

Marketing
5 mın to read

The power of a single source of information

Single source of truth

Yep, we’ve all been there. You need to understand the power of all your marketing efforts. Is your ROAS where it should be? Did your spending outpace your profit? Which channels are really performing best? These big questions keep marketers and brand owners up at night (if it hasn’t yet and now you are thinking about it, I am truly sorry). 

These questions are inherently hard to answer given the digital age of marketing and its ability to spread across markets and channels. So how do you understand the real effects you have as a marketer and where to increase spend/efforts? The first step is creating a single source of truth. With the complexity of marketing efforts, trying to track all your information using a mix of on platform data and manual compilation is not going to cut it. In this post I will cover:

  • What a single source of truth is (S.S.O.T.)
  • The benefits of a company wide SSOT
  • How to set up a SSOT 

What is a single source of truth?

Simply put, a single source of truth in e-commerce is an aggregation of your data in one place. For this to be truly powerful, a single source of truth is the most trusted level of reporting for metrics such as ad spend, ROAS, inventory, revenue, and/or costs. Imagine a single place to see all your marketing data instead of the manual lift of reporting in each platform where you run marketing content. 

Many companies we have interacted with have told us the problems they face with understanding their data. Too much time is spent digging through dashboards and on top of the time there are often arguments of which platform or source of data is correct. Let’s say you have a report on Facebook ad manager saying your ROAS was 4:1 but your internal reporting says 3:1. Which do you trust? This issue is what a single source of information solves. Your brand can create a trustworthy place for all your information. 

Benefits of a company wide Single Source of Truth

As mentioned above, a single source of truth for your marketing data is powerful when used in a company wide motion. When everyone trusts your reporting it is significantly easier to make informed decisions. As well as these benefits, a SSOT will:

  1. Remove bias from ad platforms
  2. Give you a broader view of the full marketing funnel
  3. Increase ROAS and decrease costs

Remove inherent ad platform bias

It is widely agreed upon that on platform ad reporting is generally inaccurate and skewed to be more positive than actual performance. Platforms like Facebook ad manager, Google ad manager, etc. will often over report success because they are incentivized to keep you spending your marketing dollars on their platform. By creating a single source of information you can start to see where platforms are over reporting with metrics such as overall marketing efficiency, and actual order numbers. 

Broader Marketing Funnel View

When using one off reporting from each platform you start to lose a broader marketing funnel view. Most e-commerce brands are simultaneously running ads and promotions across multiple channels such as Instagram, email campaigns, and organic tik tok content. When looking at a single platform at a time it often becomes hard to compare across these different channels. You may think your Instagram ads are performing the best because they drove the most sales, but they could have a much higher CPA vs ads run on Tik Tok. Using those insights it may make sense to shift budget to more tik tok campaigns. When you are empowered by a single source of truth these broad comparisons can be much easier and faster to make.

Increase ROAS and Cut Costs

Return on ad spend is the most commonly used metric to define the cost of running over the profits driven by an ad campaign. Similar to what I mentioned in the full funnel view a single source of truth can give you the tools to compare campaigns across channels. You can glean insights into which campaigns are performing the best and where you should shift market spend. 

How to create a single source of truth

Now that we have talked about what is a single source of truth and the benefits of using a single source of truth you may be asking this all sounds great but how do I set this up?

Fair question - let me explain the 2 main options you have. 

  1. Manual lift with internal reporting (aka the Google Sheets Method). 
  2. Use an e-commerce partner to simplify and aggregate your data for you

The “Google Sheet Method” is what many brands start with. In this methodology you export data from each of the platforms that you run marketing communications on and compile the data in one place. This process works when you are starting out, and is much better than doing nothing but it is very labor intensive and can be hard to view your data in a meaningful way. 

The best method to create a truly powerful single source of information is to partner with an e-commerce brand that specializes in making this possible. Some companies will pay large amounts of money to have this type of data created in-house with a data partner such as Domo or Tableau. Here at Luz we decided that these options weren’t good enough so we built our own. 

Luz marketing tools are built to empower DTC brands to quickly and easily create a single source of truth. We created a one of a kind pixel that gives you an unprecedented level of attribution, a data hub to see channel performance quickly and easily, and tailored insights from your data to understand where to move from here. If you are a D2C brand and this sounds interesting to you, learn more here, or reach out to our team now. 

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