This document discusses metrics-driven marketing strategies and focuses on three key factors for marketing channels: volume, cost, and conversion. It emphasizes measuring conversion as deep down the conversion funnel as possible and estimating customer lifecycle, conversion, and revenue potential when designing marketing plans. Three scenarios are presented as examples to brainstorm marketing channel strategies based on factors like target customers, customer lifetime value, company funding, and marketing budgets.

1. Metrics-Driven Marketing Strategy (+ a little Product Strategy too) Dave McClure Visiting Lecturer Stanford Facebook Class (CS377W) 11/15/07

5. Facebook App / User Conversion Your App 3. RETENTION Emails Feeds, Profiles 4. REFERRAL Passive: Feeds & Profiles Active: Initial App Invites Invites App Directory Feeds App Cross-Marketing Profile Ads 5. Revenue $$$ Ads, Lead Gen, Subscriptions, etc Canvas Pages App Cross-Marketing 2. Activation CTA, Copy & Graphics 1. ACQUISITION

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

12. Example Marketing Channels disclaimer: these estimates of vol, cost/user, time & effort are highly subjective & very dependent on your specific business med/hi (reports, co-branding) Med/hi med/hi (capture metrics, generate reports) med-high depends on partner, size of customer base, conversion Biz Dev / Partner low/zero (med = prof contest site) Med low/med (depends on contest, site, campaign) low/med small unless big prize $ (don’t, keep it under $5K) Contest low/zero if no system; Med/hi if integrated SFA High med-high med-high depends on target demographics Telemktg low/zero Med/hi medium Med/hi depends on geography Direct / radio Med/hi (production cost) High Med-high High Potentially large (if you spend) TV low/med low Low for FB social networks; med/hi for normal sites low/zero depends on CTA; size of accessible social networks / # users Viral / Referral low/med (landing pages = med) Low/med Low/med (depends on your marketing) Depends depends on your keywords SEM med/hi (depends on complexity) med Low/med low/med Depends on CTA; size of accessible sites, level of adoption + bloggers Widget med/hi (depends on rqd tracking & reporting) med/hi med/hi (need to build affiliate program, capture metrics, generated reports) Med/hi depends on economics Affiliate / Lead Gen low/zero med medium (develop story, build contacts) Med/hi depends on your business & audience & news PR Low (redirects/co-brand?) low low depends depends on keywords, domain costs domains med/hi low/zero Medium (depends on your search geeks) Low/zero depends on your keywords SEO low/zero (med = CMS, prof design) low/med Low (if just you blogging); med (if you're setting up big CMS / evangelizing to other bloggers) low/med Depends on # blogs in your segment, competitive scenario Blogs / Bloggers low/med (med = create templates) low/med Low low/med depends on CTA, size of your house lists, email signups Email Prod Effort Mktg Effort Time to implement Cost/user Volume Channel