measurement & roi
Post on 20-Aug-2015
3.193 Views
Preview:
TRANSCRIPT
BINGO
KPI SIGN-UPS
TIME ON
SITECPM IMPRESSIONS
CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT
LTV SENTIMENT ANALYSIS ROI PAGE
VIEWSFOLLOWS
MENTIONS CTR DOWNLOADSBRAND
ATTRIBUTESMEDIA MIX MODELING
SALIENCE LIKEABILITY RECALLSHARE
OF WALLET
??
A WORD OF CAUTION
I notice increasing reluctance on the part of marketing executives to use judgment; they are coming to rely too much on research, and they use it as a drunkard uses a lamp post: for support, rather than for illumination.
David Ogilvy
WHY DO METRICS MATTER?
1. Metrics reduce arguments based on opinion.
2. Metrics give you answers about what really works.
3. Metrics show you where you’re strong.
4. Metrics allow you to test anything you want.
5. Clients love metrics.
http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
Now we can easily assess pre-existing demand among our target: how easy is user acquisition going
to be?
Spontaneous product comments and mentions reveal sentiment
around them, and help us overcome existing boundaries for
product adoption.
Digital traces reveal important drivers of human behavior that we can use in shaping brand’s
online actions.
DETECT DEMAND EXPLORE CONSUMER SENTIMENTUNDERSTAND CONTEXT OF BRAND & PRODUCT
MENTIONS
Digital makes it is easier to detect problems or possible
areas for improvement related products/service use.
UNCOVER CONSUMER MOTIVATIONDEFINE CONSUMERS’ MULTIPLE IDENTITIES
OBSERVE SOCIAL GESTURES & CONTENT INTERACTION
Understanding di!erent identities our audience assumes
lets us help them in their role-playing and is also useful in
targeting.
Our targets’ gift-giving of content gives us insights into where we can insert brand into their social
exchanges.
WHAT ELSE CAN MEASUREMENT HELP YOU DO?
via @andjelicaaa
THERE ARE ONLY 3 RULES OF MEASUREMENT
Your metrics will be as UNIQUE as your business.
If metrics aren’t ACTIONABLE, they aren’t worth using.
DON’T TRY TO MEASURE EVERYTHING.
IT’S EASY TO FOCUS ON VANITY METRICS
“Numbers that make us look good but don’t really
help make decisions.” Eric Ries,
The Lean Start-up
WHAT’S A VANITY METRIC?
http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
A lot of the time, we measure for a show reel, instead of for business results.
USE ‘PIRATE’ METRICS
Acquisition: users from channels come to site, landing page, widget, etc
Activation: users enjoy 1st visit, "happy" user experience
Retention: users re-visit multiple times
Referral: users like experience enough to refer others via email, links, likes, blogs, widgets, word-of-mouth, etc
Revenue: users buy, download, sign-up
*
*
http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
Acquisition - drawing people into the brand experience
Revenue - converting visitors into customers
Referral - converting customers into advocates
To your BUSINESS
CONVERSION
BEWARE THE CTR...
The starting metric for Acquisition isn’t CTR or “Site Visits”...
It’s CPA: Cost Per Acquisition (e.g., how much did you spend to get a new user)
But this by itself is irrelevant
If the CPA is higher than the lifetime value (LTV) of a new user, you’re in trouble
Activation - people enjoyed the experience...
Retention - enough to come back more than once...
Referral - and recommended the experience to others
To your PROSPECT
ENGAGEMENT
HOW DO YOU MEASURE RETENTION & REFERRAL?
Returning Visitors
Registered Users
Frequency
Time on Site
Daily Active Users
Likes, +1s, RTs
Mentions
Email referrals
SO WHAT’S MORE IMPORTANT?
Brand growth comes from Acquisition.
Contrary to popular belief, acquisition is actually cheaper, and more beneficial to the brand, than retention.
Marketing should be geared toward Acquisition.
Product & service design should be geared toward Activation & Retention.
THERE ARE MARKETING LAWS
Double Jeopardy Law: the lower market share brands in a market have far fewer buyers in a time period and also lower brand loyalty.
Retention Double Jeopardy: All brands lose some buyers; this loss is proportionate with market share.
Pareto Law is 60/20 (not 80/20): Slightly more than half of a brand’s sales come from the top 20% of customers.
Law of Buyer Moderation: Heavy buyers sometimes buy less often, light buyers sometimes buy more often, non-buyers sometimes become buyers.
Law of Prototypicality: Image attributes that describe the product category score higher than less prototypical attributes
Duplication of Purchase Law: A brand’s customer base overlaps with the customer base of other brands, in line with their market share.
AND SOME INCONVENIENT TRUTHS
User bases seldom vary: Rival brands sell to very similar customer bases.
Attitudes and brand beliefs reflect behavioral loyalty: Consumers know and say more about brands they use often, and they think and say little about brands they do not use.
Usage drives attitude: Consumers like what they buy.
@37SIGNALS
WHICH ONE IS MORE SUCCESSFUL?
http://www.slideshare.net/stueccles/lean-startup-metrics
EXTENDED SIGN-UP FUNNEL
http://www.slideshare.net/stueccles/lean-startup-metrics
WHEN DOES SUCCESS HAPPEN?
COHORT METRICS - CREATED PROJECT
WHERE IS SUCCESS COMING FROM?
http://www.slideshare.net/stueccles/lean-startup-metrics
DON’T HAVE ACCESS TO GOOGLE ANALYTICS?
First - get access. :)
Second - try QuantCast: Gives high-level insight into traffic sources, frequency and volume to site, and basic demographic and socio-economic data about your visitors. And it’s free.
OR THERE’S CHARTBEAT
For $10/month, try ChartBeat. It provides real-time tracking and engagement metrics like user paths, time spent with content, and micro-actions like clicks, downloads, and scrolls that show whether people are actively engaging with the site content.
HACK THE METRICS
Use unique links - through services like Bit.ly - to track the behavior that a social mention or display ad or site/page leads to.
Stop paying for CPMs - pay for conversions (but define clearly what a ‘conversion’ is, and design ad units & digital experiences for conversion moments).
HOW TO TALK TO CLIENTS & COLLEAGUES ABOUT METRICS
Setting Goals Accountability Transparency
Assessing E!ectiveness
Optimizing Learning
Good measurement practices improve: client-agency relationships
insightdesignresults
SETTING REASONABLE KPI’S
What are the business objectives?
What are the campaign objectives?
What are the channels/touchpoints?
What is the campaign experience & message?
What do we expect people to do?
SUMMING UP
Measure what will teach you the most and help you make the most important decisions.
Use bespoke, not o!-the-shelf, metrics and measurement tools.
Focus on ‘metrics’ that connect to value creation for the business and drive brand growth.
Don’t measure everything.
top related