Startup metrics-for-pirates

Startup metrics-for-pirates

• 1.
  * reminder: NationalTalk Like a Pirate Day is Sept 19th! Startup Metrics for Pirates: AARRR!!! (Startup Metrics for Product Marketing & Product Management) Dave McClure Master of 500 Hats blog: http://500hats.typepad.com/ website: http://www.500hats.com/ slides: http://slideshare.net/dmc500hats/
• 2.
  Customer Lifecycle: 5Steps to Success • Acquisition: users come to the site from various channels • Activation: users enjoy 1st visit: "happy" user experience • Retention: users come back, visit site multiple times • Referral: users like product enough to refer others • Revenue: users conduct some monetization behavior AARRR!
• 3.
  Customer Lifecycle /Conversion Behavior 4. REFERRAL Ads, Lead Gen, Biz Dev Subscriptions, etc Website.com Campaigns, Contests Emails & widgets 5. Revenue $$$ 2. Activation Homepage / Landing Page Product Features SEO 1. ACQUISITION SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts System Events & Time-based Features 3. RETENTION Blogs, Content
• 4.
  Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 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 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
• 5.
  Customer Lifecycle /Conversion Behavior SEO Website.com Marketing Channels: • largest-volume (#) • lowest-cost ($) • best-performing (%) 1. ACQUISITION SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
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  Customer Lifecycle /Conversion Behavior Website.com 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 2. Activation Homepage / Landing Page Product Features SEO 1. ACQUISITION SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
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  Customer Lifecycle /Conversion Behavior 1. ACQUISITION Website.com Automated emails are simple & easy retention feature • lifecycle emails @ +3, +7, +30d • status emails weekly/monthly • event-based emails as they occur 2. Activation Homepage / Landing Page Product Features SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts System Events & Time-based Features 3. RETENTION Blogs, Content
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  Customer Lifecycle /Conversion Behavior 4. REFERRAL Website.com Campaigns, Contests Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10 2. Activation Homepage / Landing Page Product Features Emails & widgets SEO 1. ACQUISITION SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts System Events & Time-based Features 3. RETENTION Blogs, Content
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  Customer Lifecycle /Conversion Behavior Campaigns, Contests Ads, Lead Gen, Biz Dev Subscriptions, etc 5. Revenue $$$ Website.com 2. Activation Homepage / Landing Page Product Features SEO Emails & Alerts System Events & Time-based Features This is the part *you* have to figure out… I don’t know jack about your business 4. REFERRAL Emails & widgets 1. ACQUISITION SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains 3. RETENTION Blogs, Content
• 10.
  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. (see slide notes for links to tools & vendors)
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  Quantitative & Comparative Measurement • Conversion Criteria: – best-performing (%) channels / campaigns / copy – largest-volume (#) channels / campaigns / copy – lowest-cost ($) channels / campaigns / copy
• 12.
  Quantitative & Comparative Measurement • Conversion Criteria: – best-performing (%) channels / campaigns / copy – largest-volume (#) channels / campaigns / copy – lowest-cost ($) channels / campaigns / copy • Measurement Components: – Audience Segment (young women, regional metro, older singles) – Channel Source (social network, SEM, organic, PR, etc) – Campaign Theme / Brand Promise (“find a job”, “learn to cook”) – Landing Page & CTA – Copy & Graphics
• 13.
  Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 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 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
• 14.
  Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 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 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
• 15.
  Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 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 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
• 16.
  Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 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 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
• 17.
  Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 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 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
• 18.
  Marketing Q: whatchannels / who do you market to? • Design & Test Multiple Mktg Channels • Select & Focus on Channels with: – High Volume – High Conversion – Low Cost • Measure *deeper* down the conversion funnel, not just to website / landing page • Segment & Select channels & customers by conversion @ deepest possible level (ideally $$$)
• 19.
  Product Q: howdo you choose what to build? • Choose features for conversion improvement – 80% on existing feature optimization – 20% on new feature development • Just guess, then A/B test… A LOT • Measure conversion improvement • Rinse & Repeat
• 20.
  Founder/CEO Q: Whatmetrics do you choose to watch? • Hypothesize Customer Lifecycle & Refine – Choose 5-10 conversion steps – Less, not More is better • BUT measure & iterate • Focus on conversion improvement • Delegate each Metric to someone to OWN