This document contains the slides from a presentation about measurement marketing. It discusses the importance of properly defining key performance indicators (KPIs) and metrics in order to accurately track behaviors and calculate conversions rates. It provides tips on tracking all measurable behaviors, establishing benchmarks, and using numbers to forecast future performance and identify areas for optimization. The presentation cautions against solely using lifetime value and recommends also considering velocity of return. It emphasizes building dashboards to answer specific questions rather than just reporting data.

1. KNOW YOUR
NUMBERS!
What Numbers You Should Be Tracking, and How To Use Them In
Your Marketing To Unlock Hidden Revenues, Instantly Increase
Conversion Rates, and Ultimately Your Grow Profits.
CHRIS MERCER – CO-FOUNDER, MeasurementMarketing.io

2. #TCS2018 | @mercertweets
• Google Analytics, Google Tag Manager,
Google Data Studio, Etc…
• Helping Marketers Know Their Numbers &
Grow Their Numbers
• Measurement Marketing
HI, I’M MERCER…
Chris “Mercer” Mercer
Co-Founder,
MeasurementMarketing.io

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Measurement Marketing Is…

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Measurement Marketing Is…

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Measurement Marketing Is…

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Measurement Marketing Is…

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(ie… your goal today)

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In This Session…
What Numbers
You Must
KNOW
(Your KPI’s)

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In This Session…
Unique Tip To
Guarantee You
Can TRUST
Your Numbers

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In This Session…
How Basic
Math Leads
to Better
Conversion
Rates

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In This Session…
Using Your
Numbers As
Guides To
Hidden
Revenue

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In This Session…
Why Your
Dashboards
Don’t Work

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In This Session…
One Number
You’re
Probably
Already Using
That’s
Poisoning Your
Business

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In This Session…
The Power to
Predict The
Future

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Why Should You Care?

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First Tip…
Numbers
Don’t Matter

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First Tip…
People
Do

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First Tip…
Just Kidding!
People
Don’t Matter
Either

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“Numbers People” Don’t See Numbers
Behavior
Matters

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Second Tip…
Track Every
Measurable
Behavior You
Can

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Second Tip…
Track Every
Measurable
Behavior You
Can

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Second Tip…
100 10
10% CVR(Your Conversion Rate)

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Second Tip…
100 1020
50%
CAR(Cart Abandonment Rate)

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Track Every Measurable Behavior

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Formula To Calculate Conversion Rate…

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Formula To Calculate Conversion Rate…
Finish / Started
(Then multiply by 100)

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Formula To Calculate Conversion Rate…
10 Finish /
100 Started
(Then multiply by 100)

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Formula To Calculate Conversion Rate…
10 / 100 = .1 x 100 = 10%

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Here’s Where It Goes Terribly Wrong…

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Numbers, KPI’s, Metrics, Oh My!
100
People Enter
(“Start”)

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Numbers, KPI’s, Metrics, Oh My!
10
People Buy
(“Finish”)

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Numbers, KPI’s, Metrics, Oh My!
10
100
= 10%

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What’s The Important Data Here?
100
Enter
10
Buy

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Definitions Matter Most!
100
Enter
10
Buy

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Definitions Matter Most!
Define:
Enter
Define:
Buy

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Definitions Matter Most!
Define:
Entrance
Define:
Thanks Page

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How To Double Your Conversions
100
Entrances
10
Thanks Pages

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How To Double Your Conversions
Let’s DOUBLE
Your Conversions!

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How To Double Your Conversions
50
Unique
Entrances
10
Thanks Pages

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How To Double Your Conversions
10
50
= 20%

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages

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How To Double Your Conversions
So… What’s
the real CVR?

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages
?

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages
5
Unique Thanks Pages

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages
5
Unique Thanks Pages

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How To Double Your Conversions
100
Entrances
50
Unique Entrances
10
Thanks Pages
5
Unique Thanks Pages

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Here’s Where It Goes Terribly Wrong…

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Bad Decisions Come From Bad Numbers

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Bad Decisions Come From Bad Numbers
If “normal” is
10% but someone
else is getting
20%...
What are you
thinking?

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Bad Decisions Come From Bad Numbers
If “normal” is
20% and you’re
getting “20%”...
What are you
thinking?

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TBV – “Trust But Verify”

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TBV – “Trust But Verify”
TRUST you
did it right

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TBV – “Trust But Verify”
VERIFY you
did it wrong

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Benchmarks & Targets

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Benchmarks: CCVR (Cold Traffic)
1 - 3%

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Benchmarks: CCVR (Warm Traffic)
5 - 10%

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Benchmarks: CAR
65 - 85%

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Benchmarks: Upsell CRV
10 - 20%

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Benchmarks: Opt-in CRV (Cold Traffic)
25 - 35%

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Benchmarks: Opt-in CVR (Warm Traffic)
45 - 65%

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Benchmarks: Average Stick
3 - 4
Months

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Benchmarks: Offer to Cart CVR
8 - 12%

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Find The KPI
.5% CCVR

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Find The KPI
10% 10% 50%
.5% CCVR
1000 100 10 5
(5 / 1000) * 100

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Find The KPI
10% 10% 50%
.5% CCVR

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Find The KPI
25% 10% 80%
.5% CCVR
1000 250 25 5
(5 / 1000) * 100

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Find The KPI
25% 10% 80%
.5% CCVR
1000 250 25 5
(5 / 1000) * 100

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Find The KPI
25% 10% 68%
.8% CCVR
1000 250 25 8
(8 / 1000) * 100

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Find The KPI
30% 10% 66%
1% CCVR
1000 300 30 10
(10 / 1000) * 100

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Forecasting Your Future

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Forecasting 101
30% 10% 66%
1% CCVR
1000 300 30 10
(10 / 1000) * 100

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Forecasting 101
30% 10% 66%
$1000
1000 300 30 10 @ $100

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Forecasting 101
1000 300 30 10 @ $100 = $1000
30% 10%
2000 600 60 20 @ $100 = $2000
66%
30% 10% 66%
Past
Results
Next
Week

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Forecasting 101
2000 600 60 20 @ $100 = $2000
30% 10% 66%
Starts Leads Cart Buy AOV $
Plan 2000 600 60 20 $100 $2000
Actual ? ? ? ? ? ?

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Forecasting 101
Starts Leads Cart Buy AOV $
Plan 2000 600 60 20 $100 $2000
Actual ? ? ? ? ? ?

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Forecasting 101
Starts Leads Cart Buy AOV $
Plan 2000 600 60 20 $100 $2000
Actual 2000 600 30 10 $100 $1000

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Forecasting 101
Starts Leads Cart Buy AOV $
Plan 2000 600 60 20 $100 $2000
Actual 2000 600 30 10 $100 $1000

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Forecasting 101
Starts Leads Cart Buy AOV $
Plan 2000 600 60 20 $100 $2000
Actual 2000 600 30 10 $100 $1000

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Now You Know Where To Optimize
Starts Leads Cart Buy AOV $
Plan 2000 600 60 20 $100 $2000
Actual 2000 600 30 10 $100 $1000
Plan = 10%
Actual = 5%

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The Poison Metric
One Number
You’re
Probably
Already Using
That’s
Poisoning Your
Business

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The Poison Metric
LTV
(Lifetime Value)

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The Poison Metric
LTV = $1000
How much
should your
CPA be?

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The Poison Metric
LTV = $1000
CPA = $1000
No profit.
EVER.

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The Poison Metric
LTV = $1000
CPA = $500
$500 Profit

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The Poison Metric
Spend $10,000
Get 20 Customers
(CPA = $500)
LTV = $1000
$10,000 Profit

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A Better Tonic…
VOR
(Velocity Of
Return)

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A Better Tonic…
It’s not about
how much your
spending, it’s
about how fast
your making it
back!

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A Better Tonic…
Spend $10,000/mo
Get 20 Customers
(CPA = $500)
LTV = $1000
VOR = 5 Months
$10,000 Profit

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A Better Tonic…
Spend $10,000/mo
Get 20 Customers
(CPA = $500)
LTV = $1000
VOR = 5 Months
$10,000 Profit
In 5 Months

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A Better Tonic…
Jan Feb Mar Apr May
Spend $10,000
Return $4,000 $4,000 $4,000 $4,000 $4,000
Profit ($6,000) ($2,000) $2,000 $6,000 $10,000

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A Better Tonic…
30
Days
60
Days
90
Days
120
Days
150
Days
Invest $10,000
Return $4,000 $4,000 $4,000 $4,000 $4,000
Profit ($6,000) ($2,000) $2,000 $6,000 $10,000

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A Better Tonic…
30
Days
60
Days
90
Days
120
Days
150
Days
Invest $10,000
Return $0 $6,000 $1,000 $500 $500
Profit ($10,000) ($4,000) ($3,000) ($2,500) ($2,000)

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Why Your Dashboards Don’t Work

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Why Your Dashboards Don’t Work
People Build
Dashboards To
Report Data

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Why Your Dashboards Don’t Work
The Goal:
Just Looking at
the Report
Gives You The
Insight

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Why Your Dashboards Don’t Work
Build Your
Dashboards To
Answer
Specific
Questions

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Why Your Dashboards Don’t Work
Target Avatar CPL Day 0 Day 30
Group A $30 $0 $30
Group B $30 $30 0
Group C $10 $30 $60

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Measurement Marketing Is…
Choice

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• Want Slides?
Text TCS2018 to (512) 540-3068
• Want Free Training?
(Free Facebook Group)
http://measure.tips/essentials
• Want Email?
mercer@measurementmarketing.io
THANK YOU!
Chris “Mercer” Mercer

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THANK YOU!