activation, retention & engagement strategy

@eric3000

Activation, Retention & Engagement Strategy

@eric3000

@eric3000

Where You Can Find Today’s Slides

http://www.bit.ly/emetelka

@eric3000

Introductions

☐ Name

☐ Where you work/what you’re working on

☐ Goals for today

@eric3000

I'm Eric Metelka, founder and CEO of Full Stack Marketing, a full featured digital marketing consulting firm for startups. I am a former management consultant and the former digital marketing manager at BestVendor.

@eric3000

My Goals for Today

You know how to choose the one metric that matters to your product or brand

You are able to guide and construct a usability test

You can align user behaviors and motivations to create engagement

You understand the tactics to increase referrals in your product

@eric3000

What I Am Going to Cover

☐ Introduction & Definitions – 30 mins

☐ Matching Metrics - 30 mins

☐ Activation – 30 mins

☐ Engagement – 30 mins

☐ Referral & Virality – 30 mins

☐ Recap/Evaluation/Questions - 15 mins

@eric3000

Definitions

@eric3000

Acquisition – noun /ˌækwɪˈzɪʃ(ə)n/• The process of buying something or

obtaining it in some other way• When a customer comes to the site from

various channels or downloads an app

@eric3000

Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Examples of Acquisition(note: not actuals)

@eric3000

Activation – noun /ˌæktɪˈveɪʃ(ə)n/• Making a piece of equipment or a process start

working• Starting the use of a product, often by creating a

login • In ecommerce, starting the shopping process by

completing at least transaction• In Mobile, using the basic features of the app• Customer enjoys 1st visit: "happy" user

experience

@eric3000




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

Examples of Activation(note: not actuals)

@eric3000

Engagement - noun /ɪnˈɡeɪdʒmənt/• The feeling of being involved in a

particular activity• The period of time during which a user

such stays involved with your product• Customers come back and visit site

multiple times

@eric3000




70% $.05


30% $.25


5% $1


2% $3

Engagement Email Open / RSS view -> Clickthru 3% $2

Engagement Repeat Visitor (3+ visits in first 30 days)

2% $5

Examples of Engagement(note: not actuals)

@eric3000

Virality- noun /vʌɪˈralɪti/• The tendency of an image, video, or piece

of information to be circulated rapidly and widely from one Internet user to another

• Customers like product enough to refer others

@eric3000




70% $.05


30% $.25


5% $1


2% $3

Engagement Email Open / RSS view -> Clickthru 3% $2

Engagement Repeat Visitor (3+ visits in first 30 days)

2% $5

Virality Refer 1+ users who visit site 2% $3

Virality Refer 1+ users who activate 1% $10

Examples of Virality(note: not actuals)

@eric3000

Matching Metrics to Your Business

@eric3000

Types of Metrics & Measurement

• Qualitative: Usability Testing / Session Monitoring– Watch what users do, figure out problems & solutions from small # of

users

• Quantitative: Traffic Analysis / User Engagement– Report what users do, track usage & conversion %'s for all or empirical

sample # of users

• Comparative: A/B, Multivariate Testing– Compare what users do in one scenario vs another, see which

copy/graphics/UI are most effective

• Competitive: Monitoring & Tracking Competitors– Track competitor activity & compare against yours; if possible compare

channels, keyword traffic, demographic targeting, user satisfaction, etc.

@eric3000

Measurement Tools

• Qualitative: Usability Testing / Session Monitoring– Qualtrics (surveys), CrazyEgg (heatmap), TechSmith Morae / UserVue

(ux recording), RobotReplay, TapeFailure.

• Quantitative: Traffic Analysis / User Engagement– Google Analytics (free), Mixpanel, Kissmetrics, Flurry, MyBlogLog,

ClickTracks, Index Tools, Visual Sciences / Webside Story, Omniture, WebTrends.

• Comparative: A/B, Multivariate Testing– Google Website Optimizer, SiteSpect, Optimost, Offermatica, Vertster,

Kefta.

• Competitive: Monitoring & Tracking Competitors– Quantcast, Compete.com, Alexa, Hitwise, Comscore, Nielsens.

@eric3000

Customer Funnel

@eric3000

Metric Funnel

@eric3000

Your Business Model Your Business Stage

(Monetization) (Lifecycle)

• Ecommerce• 2 sided market• SaaS• Mobile app• User-generated content• Media

• Empathy• Stickiness• Virality• Revenue• Scale

@eric3000

Inventory, listings

SEM, sharing

Engagement, churn

Inherent virality, CAC

Downloads, churn, virality

WoM, app ratings, CAC

Content, spam

Invites, sharing

Traffic, visits, returns

Content, virality, SEM

Loyalty, conversion

CAC, shares, reactivation

Transactions, Commission

Other verticals

Upselling, CAC, CLV

API, magic #, marketplace

CLV, ARPDAU

Spinoffs, publishers

Ads, donations

Analytics, user data

CPE, affiliate %, eyeballs

Syndication, licenses

Transactions, CLV

Affiliates, white-label

Interviews, qualitative results, quantitative scoring, surveys

E-commerce

2 Sided Market SaaS

Mobile app

User-gen content Media

Empathy

Stickiness

Virality

Revenue

Scale

(Money from transactions) (Money from active users) (Money from ad clicks)

@eric3000

What metrics would you want to look at? What direction do you want the metric to be going in?

@eric3000

Inventory, listings

SEM, sharing

Engagement, churn

Inherent virality, CAC

Downloads, churn, virality

WoM, app ratings, CAC

Content, spam

Invites, sharing

Traffic, visits, returns

Content, virality, SEM

Loyalty, conversion

CAC, shares, reactivation

Transactions, Commission

Other verticals

Upselling, CAC, CLV

API, magic #, marketplace

CLV, ARPDAU

Spinoffs, publishers

Ads, donations

Analytics, user data

CPE, affiliate %, eyeballs

Syndication, licenses

Transactions, CLV

Affiliates, white-label

Interviews, qualitative results, quantitative scoring, surveys

E-commerce

2 Sided Market SaaS

Mobile app

User-gen content Media

Empathy

Stickiness

Virality

Revenue

Scale

(Money from transactions) (Money from active users) (Money from ad clicks)

@eric3000

Choose one actionable metric to

follow

Understand your product market

and stage

@eric3000

Activation

@eric3000

Website.com

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz DevCampaigns,

Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Customer Funnel

@eric3000

Website.com

Marketing Channels:• Largest volume (#) • Lowest cost ($)• Best performing (%)

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email


Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Customer Funnel

@eric3000

Website.com

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email


Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Customer Funnel

2. Activation

Homepage / Landing Page

Product Features

@eric3000

Website.com

Illustrative Activation Criteria:

• 10-30+ seconds

• 2-3+ page views

• 3-5+ clicks

• 1 key feature usage

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email


Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Customer Funnel

2. Activation


Product Features

@eric3000

Website.com

Illustrative 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

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email


Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Customer Funnel

2. Activation


Product Features

@eric3000

How to Test Activation

• Performance - an objective measure of how well a particular website works. It is strictly utilitarian, and it is concerned primarily with effectiveness and efficiency.

@eric3000

Performance Metrics

Task Test - observing the steps testers take to complete task actions

@eric3000

How to Test Activation II

• Satisfaction - a subjective measure of how users feel while interacting with a website. It is concerned with how the information looks, how the content is organized, and how the user feels navigating around the site.

@eric3000

Satisfaction Testing

Open-Ended Test – monitoring tester exploration of the site without specific instructions

@eric3000

Implementing Testing

@eric3000

Diagnosing Your Site

@eric3000

Activity: Google “Jeans”

@eric3000

@eric3000

Raise your hand when you bounce from the page

@eric3000

Testing is crucial to activating new

customers

Understand the difference between

performance goals and satisfaction

goals

@eric3000

Engagement

@eric3000

Website.com

2. ActivationHomepage / Landing

Page

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel

3. ENGAGEMNETAutomated

Emails

Blogs, Content

System Events & Time-based Features

@eric3000

Website.com


Page

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel

Automated emails are simple & easy retention feature. Lifecycle emails @ +3, +7, +30d


Emails

Blogs, Content


@eric3000

Website.com


Page

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel



Emails

Blogs, Content


Event-based emails as they occur

@eric3000

Website.com


Page

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel



Emails

Blogs, Content


Email newsletters weekly/monthly

Event-based emails as they occur

@eric3000

Community Building - Yelp

@eric3000

Citysearch had a 28-month head start and had collected more than 112,000 restaurant reviews by the time Yelp had its first restaurant review

@eric3000

Yelp Members Write More Reviews

@eric3000

How Did Yelp Build Community?

Tie Identity & Reputation to

Product

Encourage Quality with Signals

On-line and Off-line Rewards

Empowering Users

Member reviews rated as intelligent, fair, knowledgeable, public- spirited, and cool

Yelp members have a public profile page that records their activities

Members rewarded with “elite” status in profile Exclusive access to offline parties and events

Some members are hired as community managers

Discussion forum for further adding to the site’s social aspects

@eric3000

@eric3000

Rewards

@eric3000

Notifications of New Content

@eric3000

Email Newsletters Curate Content

InterestingPersonalizedTimely

@eric3000

Lifecycle Emails Re-engage Lapsed Customers

@eric3000

Align user motivation, behavior, and long-

term value

Reward members for their contribution

Re-engage your customers via the

appropriate channel (Email today)

Listen to your customers and understand

how they are using your product

@eric3000

Referral & Virality

@eric3000

Website.com2. Activation


Product Features

4. REFERRAL

Emails & widgets

Campaigns, Contests1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networ

ksBlogs

Domains

3. RETENTIONEmails &

Alerts

Blogs, Content


Customer Funnel

@eric3000

Website.com

Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10

2. Activation


Product Features

4. REFERRAL

Emails & widgets

Campaigns, Contests1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networ

ksBlogs

Domains

3. RETENTIONEmails &

Alerts

Blogs, Content


Customer Funnel

@eric3000

iK Conversion %

= X

Calculating Growth

@eric3000

Number of Invitations

SentViral coefficient

(K)

Invitations Accepted

= X

Number of Users

Number of Invitations

Sent

Calculating Growth

@eric3000

Viral coefficient

(K)

Invitations Accepted

=

Number of Users

Calculating Growth

@eric3000

Math

You have 2000 customersThose customers invite 5000 of their

friendsOf those invitations, 500 are accepted

@eric3000

Math



How fast are you growing?Are you viral?

@eric3000

Math



How fast are you growing? K = .25Are you viral? No

@eric3000

Trend to Zero

2000

2100

2200

2300

2400

2500

2600

2700

@eric3000

Math



How fast are you growing?Are you viral?

@eric3000

Math



How fast are you growing? 1.25Are you viral? Yes!

@eric3000

Viral Growth

2000

12000

22000

32000

42000

52000

62000

72000

82000

92000

@eric3000

iK Conversion %

= X

How to Increase K

@eric3000

iK Conversion %

= X

How to Increase K

Make invites central to the product Network effects

Reward for invites Dropbox Gamification

Make sending invites easy Social sharing

@eric3000

iK Conversion %

= X

How to Increase K

Test invite creative Test invite format

Social? Email? SMS?

Test sign-up incentives Dropbox

@eric3000

The Actual Formula Is a Bit More Complicated…

@eric3000

The Actual Formula Is a Bit More Complicated…

TIME!

@eric3000

How to Increase Speed

@eric3000

So Should I Put Like Buttons Everywhere?

@eric3000


How can a customer create content that reaches non-customers?

@eric3000



How does a customer’s experience get better when they are connected to more users?

@eric3000




How does a customer benefit from reaching out to a non-user?

@eric3000




How does a customer benefit from reaching out to a non-user?

What percentage of growth comes from this channel versus others?

@eric3000

Conclusion

@eric3000

Choose One Actionable Metric to Follow

@eric3000

Testing is crucial to activating new customers

@eric3000

Align user motivation, behavior, and long-term value

@eric3000

Determine if and how viral growth aligns with your value proposition

@eric3000

Questions?

@eric3000

Digital Marketing Reading List

Kissmetrics Blog -http://blog.kissmetrics.com/ Andrew Chen – http://andrewchen.co Rand Fishkin – http://moz.com/rand SEOMoz blog – http://SEOmoz.org/blog Inbound – http://inbound.org Conversion Rate Experts -

http://www.conversion-rate-experts.com/blog/ Slideshare - http://www.slideshare.net/

http://blog.kissmetrics.com/



http://andrewchen.co/

http://andrewchen.co/

http://moz.com/rand

http://SEOmoz.org/blog



http://inbound.org/

http://www.conversion-rate-experts.com/blog/

http://www.conversion-rate-experts.com/blog/

http://www.slideshare.net/

http://www.slideshare.net/

@eric3000

Email: [email protected]

Twitter: @eric3000

LinkedIn: /in/emetelka

Facebook: /e.metelka

Download Slides: www.slideshare.net/emetelka/

Please fill out evaluation forms

activation, retention & engagement strategy

Business

valueacquisitionvisit

mins engagement

mins activation

external widget100

mins recapevaluationquestions

visitviews x pages

mins referral virality

site multiple times