how to build a data driven company - josh braaten - searchlove 2014
TRANSCRIPT
How to Build a Data-Driven Company
Josh BraatenCollegisEducation.com
@JLBraaten
Josh Braaten
• Director of Inbound Marketing, Collegis Education• Vice President of Minnesota
Search Engine Marketing Association• Co-Founder of Glass en Masse
1. Internet Math is Business Math
Data-driven companies are…Three times as likely to execute decisions as intended
Source: Forbes,The Big Data Boom: Is Your Company Ready? October, 2013
Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions *
Average Transaction Value = Revenue – Expenses = Profit
Internet Math is Business Math
Sent Emails * Open Rate = Opens *
Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Revenue – Expenses = Profit
Internet Math is Business Math
# of Tweets * Avg Retweet Rate =
Twitter Impressions * Twitter Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions *
Average Transaction Value = Revenue – Expenses = Profit
Internet Math is Business Math
Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions *
Average Transaction Value = Average Revenue per Quarter *
Number of Quarters – Quarterly Expenses = Profit
Internet Math is Business Math
2. If You Don’t Have a Metric, Make One
Data-driven companies are…Twice as likely to use data very frequently when making decisions
Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013
Netflix and User Preferences
3. Tie Issues to Revenue
Without a System, All Issues Look the Same
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Creating a Metric Was Helpful
Issues Reported by Students
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We Can Also Tie Issues to
Lost Customers
Issues Reported by Students with Drops
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Opportunities to Improve Look
Different
Issues Reported by Students with Drops
Public Enemy #1
New Priorities Emerge
Issues Reported by Students with Drops
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Walmart, Beer and Pop Tarts
Source: The New York Times, What Wal-Mart Knows About Customers’s Habits November, 2004
“Start predicting what’s going to happen, instead of waiting for it to happen.”
-Linda Dillman, Walmart, 2004
4. Store and Structure Your Data
Target Knows Kids Better Than Parents Do
Source: Forbes, How Target Figured Out a Teen Girl Was Pregnant Before Her Father Did February, 2012
Guest ID # Credit Card Name Email
1000000001 xxxx-xxxx-xxxx-4243 Josh Braaten [email protected]
1000000002 xxxx-xxxx-xxxx-3053 John Doe [email protected]
1000000003 xxxx-xxxx-xxxx-1836 John Smith [email protected]
Tying Everything Together
Getting Systems in Order is Both Easy and Hard
Unique Customer ID
Jawbone Stores 60 Years’ Worth of Sleep Data Every NightSource: Fast Company,
Jawbone Tracked Hundreds of Thousands of Up Users to Find the Most Sleep-Deprived States December, 2013
Without It, Everything Looks Like This
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Or At Best This
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But Never This
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5. Analytics, Insights and Iteration
Issues Reported by Students with Drops
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Public Enemy #1
Continuous Improvement and Iteration
Source: Wired, Mark Zuckerberg’s Letter to Investors: “The Hacker Way” February, 2012
“The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.”
- Mark Zuckerberg, Facebook, 2012
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
Segment Traffic CR(%) Goal Completions
Products 80,000 4% 3,200
Locations 50,000 6% 3,000
Home 225,000 1% 2,250
New Customers 10,000 10% 1,000
Service 15,000 5% 750
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
An Analytics Swiss Army Knife Provides Insights
Five times as likely to make decisions much faster than their market peers
Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013
Data-driven companies are…
6. Test, Test, Test
Controlled Testing Verifies Hypotheses and Understanding
7. Use Data to Empower Action
Issues Reported by Students with Drops
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Public Enemy #1
Q1 Q2 Q3 Q4
No Social Media 72% 70% 73% 72%
Facebook Users +26% +27% +15% +14%
Community Users +24% +21% +5% +14%
Retention and Social Media Participation
Source: Harvard Business Review, When to Act on Correlation, and When Not To March, 2014
Correlation and Action
Help Everyone Have a Say in KPIs
Help Everyone Have a Say in KPIs
Original V1: Blue V2: Olive0%
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Satisfied Neutral Dissatisfied
Qualaroo NPS Ratings by Background Color
8. Hire Someone Good at Math
If You’ve Made It This Far, Hire For Math
9. Don’t Forget to Turn Data Collection Into Marketing and More
10. Give People Data and They’ll Grow to Depend on It
Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013
Data-driven companies are…Twice as likely to be in the top quartile of financial performance within their industries
When More Companies Can See Where Issues Affect Revenue
Impressions * Click-Through Rate = Clicks =
Visits * Conversion Rate = Conversions *
Average Transaction Value = Average Revenue per Quarter * Number of Quarters – Quarterly Expenses = Profit
Where Issues Seem Less Like This
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And More Like This
Issues Reported by Students with Drops
When Ideas Are Vetted With These
And Tested With This
To Produce Wins Like This
v
To Produce Wins Like this
Thank You