Funnels Workshop Web Summit 2014 @geckoboard @GA

UNDERSTANDING FUNNELS AND

ANALYTICS

Sofia Quintero

Head of Growth@sofiaqt

Customer experience |Digital Marketing Client side| Agency |Freelance| Startups

BA Business Studies and MarketingMA Mass Communications

Data Driven

3AGENDA

Basic Concepts and Foundational Stuff:

• Funnels• Vanity Metrics Vs Actionable Metrics

Tactics, Tools and resources

4

Your user baseYour data

Your mindset

5

Hidden Genius of Donald Rumsfeld

THE FUNNEL

A funnel is a way of visualizing the journey your visitors will go through in order to complete a desired action……from complete strangers to raving followers

7THE CUSTOMER JOURNEYMEASURE YOUR CUSTOMER JOURNEY

AARRRACQUISITION

ACTIVATIONRETENTION

REFERRALREVENUE

THE FUNNEL

…from complete strangers to raving followers

.

One minute auditDraw your funnel

1010 Tools

Lean Analytics

Analytics is the measurement of movement

towards your business goals.

12

Your metrics

Helps you pick a Helps you pick a direction.direction.

Helps you pick a Helps you pick a direction.direction.

Find these.Kill these.

Vanity Actionable

vs.

Makes you feel good, Makes you feel good, but doesnbut doesn‘t change ‘t change

how you'll act.how you'll act.

Makes you feel good, Makes you feel good, but doesnbut doesn‘t change ‘t change

how you'll act.how you'll act.

.

badmetric.

If a metric won’t change how you behave, it’s a

15

Empathy

Stickiness

Virality

Revenue

Scale

E-commerce SaaS MediaMobile

appUser-gencontent

2-sidedmarket

Interviews; qualitative results; quantitative scoring; surveysInterviews; qualitative results; quantitative scoring; surveys

Loyalty, conversionLoyalty,

conversion

CAC, shares, reactivationCAC, shares, reactivation

Transaction, CLV

Transaction, CLV

Affiliates, white-labelAffiliates,

white-label

Engagement, churn

Engagement, churn

Inherent virality, CAC

Inherent virality, CAC

Upselling, CAC, CLV

Upselling, CAC, CLV

API, magic #, mktplace

API, magic #, mktplace

Content, spamContent, spam

Invites, sharingInvites, sharing

Ads, donationsAds, donations

Analytics, user data

Analytics, user data

Inventory, listings

Inventory, listings

SEM, sharingSEM, sharing

Transactions, commission

Transactions, commission

Other verticalsOther verticals

(Money from transactions)

Downloads, churn, viralityDownloads,

churn, virality

WoM, app ratings, CACWoM, app

ratings, CAC

CLV, ARPDAUCLV, ARPDAU

Spinoffs, publishersSpinoffs,

publishers

(Money from active users)

Traffic, visits, returns

Traffic, visits, returns

Content virality, SEM

Content virality, SEM

CPE, affiliate %, eyeballs

CPE, affiliate %, eyeballs

Syndication, licenses

Syndication, licenses

(Money from ad clicks)

16 Some vanity metrics to watch out for

Number of hits

Number of follower/likes

Unique visitors

Number of visits

Page views

Emails collected

.

One minute auditWrite down the top 4 metrics

that you should be tracking

18

Think Micro Conversions

19Why is my conversion rate so low?

Maybe you are selling features Vs. benefitsMaybe your ads suckMaybe your landing page sucks (http://fivesecondtest.com/)Maybe your UX sucksMaybe your drip campaign sucksMaybe your on-boarding process sucksMaybe you don’t really know your customersMaybe your segmentation/targeting sucksMaybe your activation tactics suck

20Product manager in his own habitat

21Resources

22Resources

http://goodui.org/

23Resources

http://blog.optimizely.com/2013/04/30/71-things-to-ab-test/

24Resources

http://www.quicksprout.com/landing-page-optimization/

25

Q&A@sofiaqt

26COHORT ANALYSIS

• Understand events which happen with a time-lag, or continue over time• Compare improvements over time• Collect data for these in your database

Cohort analysis is a way of dissecting your user base.

You want to compare groups of

users and see changes over a period of time

27COHORT ANALYSIS

Month of use

Cohort 1 2 3 4 5January $5.00 $3.00 $2.00 $1.00 $0.50February $6.00 $4.00 $2.00 $1.00March $7.00 $6.00 $5.00April $8.00 $7.00May $9.00

Averages $7.00 $5.00 $3.00 $1.00 $0.50

WHAT IS HAPPENING HERE?

28COHORT ANALYSIS

Month of use

Cohort 1 2 3 4 5January $5.00 $3.00 $2.00 $1.00 $0.50February $6.00 $4.00 $2.00 $1.00March $7.00 $6.00 $5.00April $8.00 $7.00May $9.00

Averages $7.00 $5.00 $3.00 $1.00 $0.50

WHAT IS HAPPENING HERE?

We need some

hypothesis!

Assumptions & Hypothesis

Customers are spending less money in month #2 because:

They don’t know we have more productsBecause we don't communicate with them ..enough..Because we don’t offer enough incentivesBecause they don’t perceive value after the first purchase

TAKE TIME TO BREAKDOWN THE PROBLEM BEFORE YOU GO TESTING

SOLUTIONS

Assumptions & Hypothesis

Customers will spend money in month #2 if we:

Send them an email reminder Add notifications functionality in the appIf we call them at the beginning of the monthIf we offer a X% discount coupon

A/B Testing! Choosing the right solution

Hypothesis: Customers will spend more in month #2 if they received a reminder

CohortAll new customers from 01/03 to30/03

A/B Experiment50% will receive email reminder 50% will not received email reminder

Measurement Open rateCTRAverage spend month #2 for both groups

Validation 60% of customers who opened and clicked the email reminder spent 35% more in the second month in comparison to the group who did not receive an email.

A/B Testing!

Hypothesis: Customers will spend more in month #2 if they received an email reminder

CohortAll new customers from 01/03 to30/03

A/B Experiment50% will receive email reminder 50% will not received email reminder

Measurement Open rateCTRAverage spend month #2 for both groups

Validation 60% of customers who opened and clicked the email reminder spent 35% more in the second month in comparison to the group who did not receive an email.