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Manly Entrepreneurs Meetup

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Slides

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Slides

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PICK THE RIGHT METRICS 8

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POPULAR STARTUPS YOU SAID?
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IF A METRIC WON’T
CHANGE THE WAY YOU BEHAVE
THEN IT’S A BAD METRIC
Ben Yoskovitz
@byosko, author lean Analytics
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THE PIRATE METRICS
AARRR!!!
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THE PIRATE METRICS
AARRR!!!
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Customer Lifecycle: 5 Steps to Success
‣ Acquisition: users come to the site from various channels
‣ Activation: users enjoy 1st visit: "happy" user experience
‣ Retention: users come back, visit site multiple times
‣ Referral: users like product enough to refer others
‣ Revenue: users conduct some monetization behavior
AARRR!

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Customer Lifecycle / Conversion Behavior
Website.com
Emails &
widgets
Campaigns,
Contests
Biz DevAds, Lead Gen,
Subscriptions, etc
Homepage /
Landing Page
Product
Features
1. ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Emails &
Alerts
Blogs,
Content
System Events &
Time-based Features

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Example Conversion Metrics
(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. Value
Acquisition Visit Site
(or landing page, or external widget)
100% $.01
Acquisition Doesn't Abandon
(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit
(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup
(anything that could lead to repeat visit)
5% $1
Activation Acct Signup
(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor
(3+ visits in first 30 days)
2% $5
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25

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I KNOW THAT
HALF MY AD DOLLARS
ARE WASTED,
I JUST DON’T KNOW
WHICH HALF John Wanamaker
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Customer Lifecycle / Conversion Behavior
Website.com
Marketing Channels:
• largest-volume (#)
• lowest-cost ($)
• best-performing (%)
1. ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains

20.
Example Conversion Metrics
(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. Value
Acquisition Visit Site
(or landing page, or external widget)
100% $.01
Acquisition Doesn't Abandon
(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit
(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup
(anything that could lead to repeat visit)
5% $1
Activation Acct Signup
(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor
(3+ visits in first 30 days)
2% $5
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25

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Customer Lifecycle / Conversion Behavior
Website.com
Activation Criteria:
• 10-30+ seconds
• 2-3+ page views
• 3-5+ clicks
• 1 key feature usage
Do LOTS of landing
page tests & A/B tests -
just make lots of dumb
guesses & iterate QUICK
Homepage /
Landing Page
Product
Features
1. ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains

23.
Example Conversion Metrics
(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. Value
Acquisition Visit Site
(or landing page, or external widget)
100% $.01
Acquisition Doesn't Abandon
(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit
(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup
(anything that could lead to repeat visit)
5% $1
Activation Acct Signup
(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor
(3+ visits in first 30 days)
2% $5
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25

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PRACTICAL
EXAMPLE
Sells package $400/mth
Max spend per cust. $ 500
Assume: Sydney accountant (9,900/Mo)
3% of Search clicks ads
3% x 9,900 searches = 297
Cost per $3,53 x 297 = $1,048
3% of clicks generate enquiry
3% x 297 searches = 9
Cost per lead =$116
20% of enquiry Convert
20% x 9 leads = 2
Cost per cust =$524
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Search
Click
Enquire
Convert
ACTIVATION

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PRACTICAL
EXAMPLE
Sells package $400/mth
Max spend per cust. $ 500
Assume: Sydney accountant (9,900/Mo)
3% of Search clicks ads
3% x 9,900 searches = 297
Cost per $3,53 x 297 = $1,048
5% of clicks generate enquiry
5% x 297 searches = 15
Cost per lead =$70
20% of enquiry Convert
20% x 15 leads = 3
Cost per cust =$349
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Search
Click
Enquire
Convert
ACTIVATION

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Customer Lifecycle / Conversion Behavior
Website.com
Automated emails are simple & easy
retention feature
• lifecycle emails @ +3, +7, +30d
• status emails weekly/monthly
• event-based emails as they occur
Homepage /
Landing Page
Product
Features
1. ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Emails &
Alerts
Blogs,
Content
System Events &
Time-based Features

27.
Example Conversion Metrics
(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. Value
Acquisition Visit Site
(or landing page, or external widget)
100% $.01
Acquisition Doesn't Abandon
(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit
(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup
(anything that could lead to repeat visit)
5% $1
Activation Acct Signup
(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor
(3+ visits in first 30 days)
2% $5
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25

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Customer Lifecycle / Conversion Behavior
Website.com
Only encourage users to
refer *after* they have
“happy” user experience;
avg score >= 8 out of 10
Homepage /
Landing Page
Product
Features
Emails &
widgets
Campaigns,
Contests
1. ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Emails &
Alerts
Blogs,
Content
System Events &
Time-based Features

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Example Conversion Metrics
(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. Value
Acquisition Visit Site
(or landing page, or external widget)
100% $.01
Acquisition Doesn't Abandon
(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit
(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup
(anything that could lead to repeat visit)
5% $1
Activation Acct Signup
(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor
(3+ visits in first 30 days)
2% $5
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25

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UNDERSTANDING THE DATA - CONVERSION 31
http://www.youtube.com/watch?v=3Sk7cOqB9Dk

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Customer Lifecycle / Conversion Behavior
Website.com
Biz DevAds, Lead Gen,
Subscriptions, etc
Homepage /
Landing Page
Product
Features
This is the part *you*
have to figure out…
I don’t know jack about
your business
Emails &
widgets
Campaigns,
Contests
1. ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz
Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Emails &
Alerts
Blogs,
Content
System Events &
Time-based Features

33.
Example Conversion Metrics
(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. Value
Acquisition Visit Site
(or landing page, or external widget)
100% $.01
Acquisition Doesn't Abandon
(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit
(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup
(anything that could lead to repeat visit)
5% $1
Activation Acct Signup
(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor
(3+ visits in first 30 days)
2% $5
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25

34.
Quantitative & Comparative Measurement
‣ Conversion Criteria:
‣ best-performing (%) channels / campaigns / copy
‣ largest-volume (#) channels / campaigns / copy
‣ lowest-cost ($) channels / campaigns / copy

35.
Quantitative & Comparative Measurement
‣ Conversion Criteria:
‣ best-performing (%) channels / campaigns / copy
‣ largest-volume (#) channels / campaigns / copy
‣ lowest-cost ($) channels / campaigns / copy
‣ Measurement Components:
‣ Audience Segment (young women, regional metro, older singles)
‣ Channel Source (social network, SEM, organic, PR, etc)
‣ Campaign Theme / Brand Promise (“find a job”, “learn to cook”)
‣ Landing Page & CTA
‣ Copy & Graphics

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