how to be a web 2.0 metrics jedi - web 2.0 expo (apr 09)
TRANSCRIPT
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Become a Web 2.0 Jedi:How to Use the Force of Product &
Marketing Metrics to Optimize YourBusiness
Web 2.0 ExpoApr 3, 2009
#w2e#metrics
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Startup Metrics for Pirates:AARRR!
Web 2.0 Expo SFApril 2009
Dave McClure, Founders Fundhttp://www.foundersfund.com/
http://500hats.typepad.com/
http://slideshare.net/dmc500hats/
http://www.foundersfund.com/http://slideshare.net/dmc500hats/http://slideshare.net/dmc500hats/http://www.foundersfund.com/ -
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Startup Metrics: The Basics
Measure Stuff. Keep It Simple.
5 Steps: Startup Metrics for Pirates (AARRR!)
3 Metrics Frameworks + 3 Roles (CEO, Dev/Product, Marketing)
Iterate & Optimize. Feedback Loop. (Loop. Loop.) One Step at a Time. The Ass vs. Face Issue.
Appendix(we wont have time)
Activation
Retention
Acquisition
Referral
Revenue
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Web 2.0: HellYes, Good Times.
1. # Users, Bandwidth = Bigger.
2. Lower Startup Costs = Badder.
3. PPC, E-Com $ Growing = Uncut.
Collect Usage Metrics in Real-Time
Decisions Based on Measured User Behavior
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The Startup Metrics Religion
Progress Features (Less = More)
Focus on User Experience
Measure Conversion; Compare 2+ Options Fast, Frequent Iteration (+ Feedback
Loop)
Keep it Simple & Actionable
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Optimize 4 Happiness(both User + Business)
Define States of User + Business Value
Prioritize (Estimate) Relative Value of Each State
Move Users: Lower Value -> Higher Value Optimize for User Happiness / Business $$$
Achieve Low Cost + High Value @ Scale
$$$
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Discover MeaningKeywords, Images, Call-to-Action
Top 10 - 100 words
Your Brand / Products
Customer Needs / Benefits
Competitors Brand / Products
Semantic Equivalents
Misspellings
Relevant images People
Products
Problems
Solutions
Call-to-Action
Words
Images
Context Button/Link
Emotion
Result
Positive? Negative?
Neutral (= Death)
A/B test & Iterate
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Startup Metrics for Pirates: AARRR!
Acquisition:users come to site from various channels
Activation: users enjoy 1st visit: "happy experience
Retention: users come back, visit site multiple times Referral: users like product enough to refer others
Revenue: users conduct some monetization behavior
AARRR!
(note: If youre in a hurry,
watch 5 min video after slide
23)
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AARRR!: 5-Step Startup Metrics Model
Website.com
Revenue$$
$
Biz DevAds, Lead Gen,Subscriptions,ECommerce
ACQUISITION
SEOSEM
Apps &Widgets
Affiliates
Email
PR BizDev
Campaigns,Contests
Direct,Tel, TV
SocialNetworks
Blogs
Domains
Retent
ion
Emails &Alerts
System Events &Time-based
Features
Blogs, RSS,News Feeds
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Q: Whats My Business Model?
Can be one of the following:
1. Get Users (= Acquisition, Referral)
2. Drive Usage (= Activation, Retention)3. Make Money (= Revenue*)
* ideallyprofitable revenue
Note: eventuallyneed to turn Users/Usage -> Money
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Just Gimme the GOOD Metrics.Users, Pages, Clicks, Emails, $$$...?
Q: Which of these is best? How do you know?
1,000,000 one-time, unregistered unique visitors
500,000 visitors who view 2+ pages / stay 10+ sec 200,000 visitors who clicked on a link or button
20,000 registered users w/ email address
2,000 passionate fans who refer 5+ users / mo.
1,000 monthly subscribers @ $5/mo
thegoodstuff.
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3 Core Models:biz model, conversion dashboard, mktg channels
Define 1-Page Biz Model: customer segments + desired actions / behaviors
Identify critical Conversion Events & Dashboard for each segment & prioritize
Test & develop Marketing Channels; measure Volume (#), Cost ($), Conv (%)
Optimizeproduct & marketing using Fast Iteration Cycles & A/B Testing
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Role: Founder/CEO
Q: Which Metrics? Why?
A: Focus on Critical Few Actionable Metrics(if you dont use the metric to make a decision, its not actionable)
Hypothesize Customer Lifecycle
Target ~3-5 Conversion Events (tip: Less = More)
Test, Measure, Iterate to Improve
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The 1-Page Business Model(Users + Conversions + Priorities)
Q1: What types of people use your website? Visitor= Average User / Buyer
Contributor= Content Contributor / Seller
Distributor= Passionate Fan (unpaid) / Affiliate (paid)
Q2: What actions could they take to help you orthem ?
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TeachStreet Metrics v1:Eye Chart Madness
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TeachStreet 1-Page Business Model:Teachers & Students
Teachers Students
Activation
Claim ProfileAdd Class
Contact TeacherView 3 Pages
Retention
Visit 1x/mo for 3mos
Visit 1x/mo for 3mos
Referral Request Review Suggest Teacher
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TeachStreet: 45-day Claim Rates(Seattle, Portland)
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Role: Product / Engineering
Q: What Features to Build? Why? When are you Done?
A: Easy-to-Find, Fun/Useful, Unique Features that
Increase Conversion (stop iterating when increase decelerates)
Wireframes = Conversion Steps
Measure, A/B Test, Iterate FAST (daily/weekly)
Optimize for Conversion Improvement
80% on existing feature optimization
20% on new feature development
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Example Conversion Dashboard(note: *not* actuals your mileage may vary)Stage Conversion Status Conv.
%
Est. Value
(*not* cost)
Acquisition Visitors -> Site/Widget/Landing Page(2+ pages, 10+ sec, 1+ clicks = dont abandon)
60% $.05
Activation Happy 1st
Visit; Usage/Signup(clicks/time/pages, email/profile reg, featureusage)
15% $.25
Retention Users Come Back; Multiple Visits(1-3x visits/mo; email/feed open rate / CTR)
5% $1
Referral Users Refer Others
(cust sat >=8; viral K factor > 1; )
1% $5
Revenue Users Pay / Generate $$$(first txn, break-even, target profitability)
2% $50
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Role: Marketing / Sales
Q: What channels? Which users? Why?A: High Volume (#), Low Cost ($), High Conv (%)
Design & Test Multiple Marketing Channels + Campaigns Select & Focus on Best-Performing Channels & Themes Optimize for conversion to target CTAs, not just site/landing page Match/Drive channel cost to/below revenue potential
Low-Hanging Fruit: Blogs
SEO/SEM Landing Pages Automated Emails
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Example Marketing Channels
PR
Contest
Biz Dev Direct Marketing
Radio / TV / Print
Dedicated Sales
Telemarketing
Email
SEO / SEM
Blogs / Bloggers
Viral / Referral
Affiliate / CPA
Widgets / Apps
LOLCats ;)
http://www.flickr.com/photos/500hats/2236563985/in/set-72157600787878946 -
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MAARRRketing PlanMarketing Plan = Target Customer Acquisition Channels
3 Important Factors = Volume (#), Cost ($), Conversion (%)
Measure conversion to target customer actions
Test audience segments, campaign themes, Call-To-Action (CTAs)
[Gradually] Match Channel Costs => Revenue Potential Increase Vol. & Conversion, Decrease Cost, Optimize for Revenue Potential
Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime Value (CLV)
Design channels that (eventually) cost
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One Step at a Time.
1. Make a Good Product: Activation & Retention
2. Market the Product: Acquisition & Referral
3. Make Money: Revenue & Profitability
You probably cant save yourAss and yourFace
at the same time choose carefully. DMC
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Summary
Measure Stuff. Keep It Simple.
5 Steps: Startup Metrics for Pirates (AARRR!)
3 Items: Biz Model, Conversion, Mktg Channels Iterate & Optimize. Feedback Loop. (Loop. Loop).
One Step at a Time.
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Links & Resources
Additional References:
Influence: The Psychology of Persuasion, Robert Cialdini (book)
Putting the Fun in Functional, Amy Jo Kim (etech 2006 preso)
Futuristic Play, Andrew Chen (blog)
Dont Make Me Think, Steve Krug (book)
Designing for the Social Web, Joshua Porter (book, website)
Startup Lessons Learned, Eric Ries (blog)
Customer Development Methodology Steve Blank (presentation, blog)
Startup-Marketing.com, Sean Ellis (blog)
http://www.amazon.com/Influence-Psychology-Persuasion-Robert-Cialdini/dp/0688128165http://www.slideshare.net/amyjokim/putting-the-fun-in-functionahttp://andrewchenblog.com/http://www.amazon.com/Common-Approach-Usability-Circle-Com-Library/dp/0789723107http://www.amazon.com/Common-Approach-Usability-Circle-Com-Library/dp/0789723107http://bokardo.com/archives/designing-for-the-social-web-the-book/http://startuplessonslearned.blogspot.com/http://www.slideshare.net/venturehacks/customer-development-methodology-presentation/http://steveblank.com/http://startup-marketing.com/http://startup-marketing.com/http://startup-marketing.com/http://startup-marketing.com/http://steveblank.com/http://www.slideshare.net/venturehacks/customer-development-methodology-presentation/http://startuplessonslearned.blogspot.com/http://bokardo.com/archives/designing-for-the-social-web-the-book/http://www.amazon.com/Common-Approach-Usability-Circle-Com-Library/dp/0789723107http://www.amazon.com/Common-Approach-Usability-Circle-Com-Library/dp/0789723107http://andrewchenblog.com/http://www.slideshare.net/amyjokim/putting-the-fun-in-functionahttp://www.amazon.com/Influence-Psychology-Persuasion-Robert-Cialdini/dp/0688128165 -
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Dan OlsenDan OlsenCEO,CEO,YourVersionYourVersion
Web 2.0 ExpoWeb 2.0 ExpoApr 3, 2009Apr 3, 2009How to Use the Force ofHow to Use the Force of
Metrics to Optimize yourMetrics to Optimize your
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The Force of Metrics is Real
The Force of Metrics?Really?
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Business as an OptimizationBusiness as an Optimization
ExerciseExercise
Given reality as it exists today,Given reality as it exists today,
optimize our resultsoptimize our results
subject to our resource constraints.subject to our resource constraints.
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Profit =Profit = RevenueRevenue - Cost- Cost
Unique VisitorsUnique Visitors xx Ad Revenue per VisitorAd Revenue per Visitor
Impressions/VisitorImpressions/Visitor x Effective CPM / 1000x Effective CPM / 1000
Visits/Visitor x Pageviews/Visit xVisits/Visitor x Pageviews/Visit xImpressions/PVImpressions/PV
New VisitorsNew Visitors + Returning Visitors+ Returning Visitors
Invited VisitorsInvited Visitors + Uninvited Visitors+ Uninvited Visitors
# of Users Sending Invites x Invites Sent/User x Invite# of Users Sending Invites x Invites Sent/User x InviteConversion RateConversion Rate
Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
BusinessBusiness
Peeling the OnionPeeling the Onion
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Create ratios from primary metrics: X / YCreate ratios from primary metrics: X / Y Example:Example: How good is your registration page?How good is your registration page? Okay:Okay: # of registered users per day# of registered users per day Better:Better: registration conversion rate =registration conversion rate =
# registered users / # uniques to reg page# registered users / # uniques to reg page
Need third-party analytic tools PLUS home-grownNeed third-party analytic tools PLUS home-grownmetricsmetrics
Track each metric as daily time seriesTrack each metric as daily time series
Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
How to Track Your MetricsHow to Track Your Metrics
DateDateUniqueUniqueVisitorsVisitors
PagePageviewsviews
AdAdRevenueRevenue
New UserNew UserSign-upsSign-ups
4/24/084/24/08 10,10010,100 29,60029,600 2525 490490
4/25/084/25/08 10,50010,500 27,10027,100 2424 480480
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Ideas
Importance and Satisfaction To offer a good customer value
proposition:Meet High Importance needs with HighSatisfaction
98
8784
8679 847055 80
7280
75
41
50
55
60
65
70
75
80
85
90
95
100
40 50 60 70 80 90 100
Satisfaction
Importance
See Anthony UlwicksWhat Customers Want
BadBad
GreaGreatt
Prioritizing Product Ideas byPrioritizing Product Ideas by
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Prioritizing Product Ideas byPrioritizing Product Ideas byROIROI
Investment (developer-
weeks)
Retur
n
(Value
Crea
ted)
Idea C
Idea B
Idea D
Idea A
Idea F
1
1
2 3 4
2
3
4?
Marrying UI Design with
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Marrying UI Design withMetrics
Think of Ease ofuse as distinctfrom thefunctionality
User Interface
elements matter Position Layout Size
Color FontText copy Interaction design
Navigation
Improving Signup PageImproving Signup Page
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Improving Signup PageImproving Signup PageConversionConversion
New Registere
90%
100%
Improving SignImproving Sign
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Open
Account
Sign in
Account
Selection
Register
56%
44%
ForgetPassword
Registration
Process
45% drop off(20% oftotal)
36%overalldrop offfor this
step
70%(32% ofTotal)
17% dropoff (10% of
total)
20% dropoff
(6% of total)
30%(14% of Total)
80%(26% ofTotal)
55%(24% of Total)
64%of Total
Improving SignImproving SignIn/Registration FlowIn/Registration Flow
ChangePassword
83%(46% of Total)
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Abandonment Rate (7 Day Moving Average)
0%
10%
20%
30%
40%
50%
60%
70%
80%
10/7/02
10/14/02
10/21/02
10/28/02
11/4/02
11/11/02
11/18/02
11/25/02
12/2/02
12/9/02
12/16/02
12/23/02
12/30/02
1/6/03
1/13/03
1/20/03
Aba
ndonmentRate(7DayMoving
Average)
Steps 1-2
Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Improved RegistrationImproved Registration
Conversion RateConversion Rate
37% improvementin conversion rate
ReleasedNew Design
Optimization through Iteration:Optimization through Iteration:
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Optimization through Iteration:Optimization through Iteration:Continuous ImprovementContinuous Improvement
Measurethe metric
Analyzethe metric
Identify topopportunitiesto improve
Design &develop theenhancement
Launch theenhancement
Learning
Gaining knowledge:
Market
Customer
Domain
Usability
Summary: Using the Force ofSummary: Using the Force of
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Copyright 2009 Olsen Solutions LLCCopyright 2009 Olsen Solutions LLC
Summary: Using the Force ofSummary: Using the Force ofMetricsMetrics
Define what success meansDefine what success means Equation of your businessEquation of your business
Customer value propositionCustomer value proposition
Instrument your site and track keyInstrument your site and track keymetricsmetrics
Identify opportunities and prioritizeIdentify opportunities and prioritize
by ROIby ROI
Launch, learn, and iterateLaunch, learn, and iterate
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[email protected]@yourversion.com
@danolsen@danolsen
www.yourversion.comwww.yourversion.comMay the ForceMay the Forceof Metrics beof Metrics be
with you!with you!
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Dogster, Inc. Case StudyTed Rheingold
blog.dogster.com / @tedr
How actionable metrics informed uswe were chasing our tail the wrongkey results yet still guided us to the
primary objective bacon makingmoney
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Dogster, Inc.
Sites & Services
Dogster.com, Catster.com, Snuzzy.com
Togethertag.com
5 year old profitable business. No VC, Angel only
Primary Revenue Source
Directly sold ad inventory
Secondary Sources
User subscriptions
Virtual currency
Together Tag (Physical dog & cat ID tags w/ always-on web connectingservice)
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Marketing Initiative Feb 07
Goal: 2,000 New Registrants a Day
Marketed sites via AdSense and BlogAds
At launch we linked ads to our homepages
Quickly made a general landing page with introinfo and big link to register
Then made dynamic landing with relevant textand registration form.
This significantly increased percentage of ad
clickers that became registrants
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LANDING PAGE Welcome
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Landing Page Cute Overload
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LANDING PAGE Daily Candy
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LADING PAGE Dog Info
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REGISTRATION PAGE
-Activate
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Quantitative Success DoesntMean Qualitative Success
We hit key result of 2k registrants a day
BUT only 60% were activatingOnly 8% were making profile pages vs. 80%that found site on their own
Real members were generating a $4 ARPU,these were worth $0.10
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Actionable Results
Within 3 months we halted all ad spending.
We were sitting on a treasure trove of what topicsengaged pet people the most.
We could drive a lot of uniques to our sites andadvertisers love uniques
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HOMEPAGE - Current
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CRAZY EGG Searchers
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Dogster Search Traffic
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Questions? #metrics@davemcclure @danolsen
tedr
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Appendix
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Startup Metrics
Activation
A ti ti
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Website.com
Activation Criteria:
10-30+ seconds
2-3+ page views
3-5+ clicks
1 key feature usage
do LOTS oflanding page& A/B tests
make lots of dumbguesses & iterate FAST
SEOSEM
Apps &Widgets
Affiliates
Email
PR BizDev
Campaigns,Contests
Direct,Tel, TV
SocialNetworksBlogs
Domains
Activation
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ActivationWhat do users do on their first visit?
Example Activation Goals
Click on something!
Account sign up / Emails
Referrals / Tell a friend
Widgets / Embeds
Low Bounce Rate
Activation Tips
Less is more Focus on user experience / usability
Provide incentives & call to actions
Test and iterate continuously
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ActivationWhat do users do on their first visit?
Key Metrics to TrackPages per visit
Time on site
Conversions
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ActivationTools
Crazy Egg (Visual Click Mapping)http://crazyegg.com
Google Website Optimizer (A/B & Multivariate Testing)
http://google.com/websiteoptimizer
Marketo.com (B2B Lead Generation Management)
http://marketo.com
ResourcesExperimentation and Testing: A Primer
kaushik.net/avinash/2006/05/experimentation-and-testing-a-primer.html
Landing Page Design Toolbox: 100 Tips & Toolshttp://tinyurl.com/326co6
Landing Page Tutorials & Case Studieshttp://www.copyblogger.com/landing-pages/
101 Easy Easy to use Google Website Optimizer
http://conversion-rate-experts.com/articles/101-google-website-optimizer-tips/
http://crazyegg.com/http://crazyegg.com/http://google.com/websiteoptimizerhttp://google.com/websiteoptimizerhttp://marketo.com/http://marketo.com/http://www.kaushik.net/avinash/2006/05/experimentation-and-testing-a-primer.htmlhttp://tinyurl.com/326co6http://www.copyblogger.com/landing-pages/http://www.copyblogger.com/landing-pages/http://conversion-rate-experts.com/articles/101-google-website-optimizer-tips/http://conversion-rate-experts.com/articles/101-google-website-optimizer-tips/http://www.copyblogger.com/landing-pages/http://www.copyblogger.com/landing-pages/http://www.copyblogger.com/landing-pages/http://tinyurl.com/326co6http://www.kaushik.net/avinash/2006/05/experimentation-and-testing-a-primer.htmlhttp://marketo.com/http://marketo.com/http://google.com/websiteoptimizerhttp://google.com/websiteoptimizerhttp://crazyegg.com/http://crazyegg.com/ -
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Startup Metrics
Retention
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R t ti
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Cohort Analysis:
Distrib of Visits over Time
Rate of Decay
Effective Customer Lifecycle
Retention Methods
Automated Emails* Track open rate / CTR / Quantity
RSS / News Feeds* Track % viewed / CTR / Quantity
Widgets / Embeds* Track impressions / CTR / Quantity
RetentionHow do users come back? How often?
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Example Retention Goals
1 - 3+ visits per month
20% open rate / 2% CTR
High deliverability / Low spam rating
Long customer life cycle / Low decay
Identify fanatics and cheerleaders
Retention Tips
Email is simple and it works BUT make unsubscribe easy
80% subject line / 20% body text
ACTUALLY 99% subject line / 1% body text
Fanatics = virality + affiliate channel (bloggers?)
RetentionHow do users come back? How often?
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RetentionHow do users come back? How often?
Key Metrics to Track Source Quantity
Conversions Visitor Loyalty Session Length
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Startup Metrics
Acquisition
A i iti
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Website.com
Marketing Channels:
largest-volume (#) lowest-cost ($) best-performing (%)
Acquisition
SEOSEM
Apps &Widgets
Affiliates
Email
PR BizDev
Campaigns,
Contests
Direct,Tel, TV
SocialNetworks
Blogs
Domains
Acquisition
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AcquisitionWhere are users coming from?
Acquisition Methods
SEO / SEM
Blogs
Email
Social Media &
Social Networks
Domains
Acquisition
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AcquisitionKeyword Vocabulary
Top 10 - 100 words
Your Brand / Products
Customer Needs / Benefits Competitors Brand / Products
Semantic Equivalents
Misspellings
Things to analyze
Sources
Volume
Cost
Conversion
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AcquisitionTools
Google Analytics (web analytics)google.com/analytics
Google Keyword Tool (keyword research tool)
adwords.google.com/select/KeywordToolExternal
SEO Book Tools (SEO related tools)tools.seobook.com
ResourcesSEO Book Blog
seobook.com/blog
The Social Media Manual: Read Before You Playsearchengineland.com/071120-144401.php
Strategies to ruthlessly acquire users
andrewchen.typepad.com/andrew_chens_blog/2007/04/10_obvious_stra.html
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Startup Metrics
Referral
Referral
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75/90
Website.com
Acquisition
SEOSEM
Apps &Widgets
Affiliates
Email
PR BizDev
Campaigns,Contests
Direct,Tel, TV
SocialNetworks
Blogs
Domains
Retent
ion
Emails &Alerts
System Events &Time-based
Features
Blogs, RSS,News Feeds
Focus on driving referrals*after* users have ahappy experience;avg score >= 8 out of 10
e e a
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ReferralHow do users refer others?
Referral Methods
Send to Friend:
Email / IMSocial Media
Widgets / Embeds
Affiliates
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ReferralViral Growth Factor
Viral Growth Factor = X * Y * ZX = % of users who invite other people
Y = average # of people that they invited
Z = % of users who accepted an invitation
A viral growth factor > 1 means an exponential organic user acquisition.
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ReferralTools
Gigya (social media distribution & tracking tool)gigya.com
ShareThis / AddThis (sharing buttons)
sharethis.com / addthis.com
GetMyContacts (PHP contacts importing & invitation software)getmycontacts.com
ResourcesSeven Ways to GO VIRAL
lsvp.wordpress.com/2007/03/02/seven-ways-to-go-viral/
Whats your viral loop? Understanding the engine of adoptionandrewchen.typepad.com/andrew_chens_blog/2007/07/whats-your-vira.html
Metrics: Where Users Come From
slideshare.net/guest2968b8/rockyou-snap-summit-32508
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Startup Metrics
Revenue
Revenue
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Website.com
Revenue$$$
Biz DevAds, Lead Gen,Subscriptions,ECommerce
Acquisition
SEOSEM
Apps &Widgets
Affiliates
Email
PR BizDev
Campaigns,Contests
Direct,Tel, TV
SocialNetworks
Blogs
Domains
Retent
ion
Emails &Alerts
System Events &Time-based
Features
Blogs, RSS,News Feeds
This is the part *you*still have to figure out(we dont know jack
about your business)
Revenue
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RevenueHow do you make money?
Revenue Tips
Dont Rely on AdSense (only) Start Free => 2% Freemium
Subscription / Recurring transactions
Qualify your customers -> Lead generation(arbitrage)
Sell something! (physical or virtual)
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RevenueResources & Tools
Revenue Metrics (Andrew Chen)http://tinyurl.com/47r63a
How to Create a Profitable Freemium Startup (Andrew Chen)
http://tinyurl.com/8z9ygk
2008 Affiliate Marketing Review (Scott Jangro)
http://tinyurl.com/86wak4
Be Bold Be Humble
http://tinyurl.com/47r63ahttp://tinyurl.com/8z9ygkhttp://tinyurl.com/86wak4http://tinyurl.com/86wak4http://tinyurl.com/8z9ygkhttp://tinyurl.com/47r63a -
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Be Bold. Be Humble.
Stuff That Matters:
Passion for Problem/Solution + Hypothesis ofCustomer Lifecycle
1-page Business Model: Prioritized List of (Users + Conversions)
Critical, Few, Actionable Metrics + Dashboard of Measured User Behavior 1-pg Marketing Plan: (Channels + Campaigns) * (Volume, Cost, Conv %)
Velocity of (Product Execution + Cycle Time ofTesting) * Iteration
20% Inspiration+ 80% Perspiration
Long-term: Audacity + Creative Inspiration
Short-term: Humility + Analytic Rigor
Passion vs Precision
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Passion vs. Precision
Solve a Problem = Passion Optimize the Solution =Precision
BUT:
Precision is Illusion; data is fuzzy
Collecting & Interpreting data takes time & effort
Keep Metrics Simple & Actionable
Long-term: Audacity + Creative Inspiration
Short-term: Humility + Analytic Rigor
Types of Measurement
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Types of Measurement
1. Qualitative: Usability Testing / Session Monitoring
Watch users, guess problems & solutions from small # of users
1. Quantitative: Traffic Analysis / User Engagement
Track users, usage, conv %'s for empirical sample # of users
1. Comparative: A/B, Multivariate Testing
Compare what users do in one scenario vs another
Measure which copy/graphics/UI are most effective
1. Competitive: Monitoring & Tracking Competitors Track competitor activity & compare against yours (if possible)
Compare channels, keyword traffic, demographics, user sat, etc.
Design Optimize for Conversion
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Design, Optimize forConversion
Kano Model: User Needs &S ti f ti
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Copyright 2008 Olsen Solutions LLCCopyright 2008 Olsen Solutions LLC
SatisfactionUserUser
SatisfactionSatisfaction
UserUser
PerformancePerformance(more is(more isbetter)better)
DelighterDelighter(wow)(wow)
NeedNeednotnotmetmet
NeedNeedfullyfullymetmetMust HaveMust Have
Needs &Needs &featuresfeatures
migrate overmigrate overtimetime
Needs
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Copyright 2008 Olsen Solutions LLCCopyright 2008 Olsen Solutions LLC
Is the site up when I want to use it?
Is the site fast enough?
Does the functionality work?
Does the functionalitymeet my needs?
Needs(adapted from Maslow)
Customers Perspective What does it mean to us?
Uptime
Page Load Time
Absence of Bugs
Feature Set
Usability & Design
Decreasing
Dissatisfaction
Increasing
Satisfaction
How easy to use is it?
Optimization to your Product
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Copyright 2008 Olsen Solutions LLCCopyright 2008 Olsen Solutions LLC
Optimization to your ProductProcess
PlanPlan
DesigDesig
nn
DevelopDevelop
BusinessObjectiv
es
ProductObjectiv
es
PrioritizedFeature List
Scoping
Requirements & Design
Code Test Launch
SiteLevel
Feature Level
OptimizeOptimize Metrics &UserFeedback
Using Metrics to Optimize theUsing Metrics to Optimize theE ti f B iE ti f B i
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Equation of your BusinessEquation of your Business What are the metrics for your business?What are the metrics for your business?
Where is current value for each metric?Where is current value for each metric? How many resources to move eachHow many resources to move each
metric?metric? Developer-hours, time, moneyDeveloper-hours, time, money
Which metrics have highest ROIWhich metrics have highest ROIopportunities?opportunities?
Retu
r
Retu
r
nn
InvestmentInvestment
Retu
r
Retu
r
nn
InvestmentInvestment
Retu
r
Retu
r
nn
InvestmentInvestment
Metric AMetric AGood ROIGood ROI
Metric BMetric BBad ROIBad ROI
Metric CMetric CGreat ROIGreat ROI