Presentation at the Web Summit 2014

1. UNDERSTANDING
FUNNELS AND
ANALYTICS

2. Sofia
Quintero
Head of Growth
@sofiaqt
Customer experience |Digital Marketing
Client side| Agency |Freelance| Startups
BA Business Studies and Marketing
MA Mass Communications
Data Driven

3. AGENDA 3
Basic Concepts and Foundational Stuff:
• Funnels
• Vanity Metrics Vs Actionable Metrics
Tactics, Tools and resources

4. 4
Your user base
Your data
Your mindset

5. 5
Hidden Genius of Donald Rumsfeld

6. THE FUNNEL
A funnel is a way of
visualizing the journey
your visitors will go
through in order to
complete a desired
action…
…from complete
strangers to raving
followers

7. THE CUSTOMER JOURNEY 7
MEASURE YOUR CUSTOMER
JOURNEYAARR
R ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL

8. THE FUNNEL
…from complete
strangers to raving
followers

9. .
One minute audit Draw your funnel

10. Tools 1100

11. Lean Analytics
Analytics is the
measurement of movement
towards your business
goals.

12. 12
Your metrics

13. Vanity Actionable
HHeellppss yyoouu ppiicckk aa
ddiirreeccttiioonn..
vs.
MMaakkeess yyoouu ffeeeell ggoooodd,,
bbuutt ddooeessnn‘‘tt cchhaannggee
hhooww yyoouu''llll aacctt..
Kill these. Find these.

14. .
If a metric won’t change how
you behave, it’s a
bad
metric.

15. 15
Empathy
Stickiness
Virality
Revenue
Scale
Mobile
app
User-gen
content
2-sided
market
E-commerce SaaS Media
Interviews; qualitative results; quantitative Interviews; qualitative results; quantitative ssccoorriinngg;; ssuurrvveeyyss
Loyalty,
conversion
Loyalty,
conversion
CAC, shares,
reactivation
CAC, shares,
reactivation
(Money from transactions)
Transaction,
Transaction,
CLV
CLV
Affiliates,
white-label
Affiliates,
white-label
Engagement,
Engagement,
churn
churn
Inherent
virality, CAC
Inherent
virality, CAC
(Money from active users)
Upselling, CAC,
Upselling, CAC,
CLV
CLV
API, magic #,
mktplace
API, magic #,
mktplace
CCoonntteenntt,, ssppaamm
Invites,
sharing
Invites,
sharing
(Money from ad clicks)
AAddss,, ddoonnaattiioonnss
Analytics, user
Analytics, user
data
data
Inventory,
listings
Inventory,
listings
SSEEMM,, sshhaarriinngg
Transactions,
commission
Transactions,
commission
OOtthheerr vveerrttiiccaallss
Downloads,
churn, virality
Downloads,
churn, virality
WoM, app
ratings, CAC
WoM, app
ratings, CAC
CCLLVV,, AARRPPDDAAUU
Spinoffs,
publishers
Spinoffs,
publishers
Traffic, visits,
Traffic, visits,
returns
returns
Content
Content
virality, SEM
virality, SEM
CPE, affiliate
%, eyeballs
CPE, affiliate
%, eyeballs
Syndication,
licenses
Syndication,
licenses

16. Some vanity metrics to watch out for 16
Number of hits
Unique visitors
Number of visits
Page views
Emails collected
Number of follower/likes

17. .
One minute audit Write down the top 4 metrics
that you should be tracking

18. 18
Think
Micro
Conversions

19. Why is my conversion rate so low? 19
Maybe you are selling features Vs. benefits
Maybe your ads suck
Maybe your landing page sucks (http://fivesecondtest.com/)
Maybe your UX sucks
Maybe your drip campaign sucks
Maybe your on-boarding process sucks
Maybe you don’t really know your customers
Maybe your segmentation/targeting sucks
Maybe your activation tactics suck

20. Product manager in his own habitat 20

21. Resources 21

22. Resources 22
http://goodui.org/

23. Resources 23
http://blog.optimizely.com/2013/04/30/71-things-to-ab-test/

24. Resources 24
http://www.quicksprout.com/landing-page-optimization/

25. 25
Q&A
@sofiaqt

26. COHORT ANALYSIS 26
• Understand events which happen with a time-lag, or continue over time
• Compare improvements over time
• Collect data for these in your database
Cohort analysis is a
way of dissecting
your user base.
You want to
compare groups of
users and see
changes over a
period of time

27. COHORT ANALYSIS 27
Month of use
Cohort 1 2 3 4 5
January $5.00 $3.00 $2.00 $1.00 $0.50
February $6.00 $4.00 $2.00 $1.00
March $7.00 $6.00 $5.00
April $8.00 $7.00
May $9.00
Averages $7.00 $5.00 $3.00 $1.00 $0.50
WHAT IS HAPPENING HERE?

28. COHORT ANALYSIS 28
Month of use
Cohort 1 2 3 4 5
January $5.00 $3.00 $2.00 $1.00 $0.50
February $6.00 $4.00 $2.00 $1.00
March $7.00 $6.00 $5.00
April $8.00 $7.00
May $9.00
Averages $7.00 $5.00 $3.00 $1.00 $0.50
WHAT IS HAPPENING HERE?
We need
some
hypothesis!

29. Assumptions & Hypothesis
Customers are spending less money in month #2 because:
They don’t know we have more products
Because we don't communicate with them ..enough..
Because we don’t offer enough incentives
Because they don’t perceive value after the first purchase
TAKE TIME TO BREAKDOWN THE
PROBLEM BEFORE YOU GO TESTING
SOLUTIONS

30. Assumptions & Hypothesis
Customers will spend money in month #2 if we:
Send them an email reminder
Add notifications functionality in the app
If we call them at the beginning of the month
If we offer a X% discount coupon

31. A/B Testing! Choosing the right solution
Hypothesis:
Customers will spend more in
month #2 if they received a
reminder
Cohort
All new customers from 01/03 to30/03
A/B Experiment
50% will receive email reminder
50% will not received email reminder
Measurement
Open rate
CTR
Average spend month #2 for both groups
Validation
60% of customers who opened and clicked the email reminder
spent 35% more in the second month in comparison to the
group who did not receive an email.

32. A/B Testing!
Hypothesis:
Customers will spend more in
month #2 if they received an
email reminder
Cohort
All new customers from 01/03 to30/03
A/B Experiment
50% will receive email reminder
50% will not received email reminder
Measurement
Open rate
CTR
Average spend month #2 for both groups
Validation
60% of customers who opened and clicked the email reminder
spent 35% more in the second month in comparison to the
group who did not receive an email.