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My presentation for the Measurement & ROI session at the NYC Hyper Island Master Class in JU
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MEASURE WHAT MATTERSunderstanding measurement & roi for digital experiences
@FARRAHBOSTIC
4 THINGS:WHY
WHATHOW
(AND HOW TO SELL IT)
1. WHY YOU SHOULD MEASURE
BINGO
KPI SIGN-UPSTIME ON SITE
CPM IMPRESSIONS
CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT
LTV SENTIMENT ANALYSIS ROI PAGE
VIEWSFOLLOWS
MENTIONS CTR DOWNLOADS
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 DEMANDEXPLORE 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 MOTIVATION
DEFINE CONSUMERS’ MULTIPLE IDENTITIES
OBSERVE SOCIAL GESTURES & CONTENT INTERACTION
Understanding different 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.
MEASURE WHAT MATTERS... TO WHOM?
To your BUSINESS
To your CUSTOMER
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.
WHAT MATTERS IS VALUE CREATION
To your BUSINESS
To your CUSTOMER
CONVERSION ENGAGEMENT
2. WHAT YOU SHOULD MEASURE
USE ‘PIRATE’ METRICSAcquisition: 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
WHAT ARE SOME ‘VALUE’ METRICS?
To your BUSINESS
To your CUSTOMER
CONVERSION ENGAGEMENT
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 main 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 CUSTOMER
ENGAGEMENT
HOW DO YOU MEASURE ACTIVATION?
A net promoter of +50 or better is a great score.
But it’s not good enough on its own - you have to ask people why they gave that score
And then put that information to use
HOW DO YOU MEASURE RETENTION & REFERRAL?
Returning Visitors
Registered Users
Frequency
Time on Site
Daily Active Users
Likes, +1s, RTs
Mentions
Email referrals
VALUE CREATION = CUSTOMERS BECOME ADVOCATES
To your BUSINESS
To your CUSTOMER
CONVERSION ENGAGEMENT
3. HOW YOU SHOULD MEASURE
APPS & SITES HELP ANSWER QUESTIONS...
I NEVER FELT LIKE I WAS LEARNING
ANYTHING IMPORTANT
@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.
FACEBOOKDashboard for a brand page provides information on traffic, content, user activity.
And starts to give a sense of more than just likes & mentions - the ‘reach’ of the users who are liking & talking about you on Facebook.
FACEBOOKThe advertising dashboard has been updated to focus on social metrics - like ‘social reach’ (the absolute number of people who saw an ad with social context - names/pictures of friends who connected with the ad’s destination) and ‘connection’s (social actions triggered by an ad, like Likes, app installs, event RSVPs)
http://www.secondshares.com/2011/05/10/facebook-advertising-embracing-the-second-internet-ethos/
TWITTERTwitter has not yet released its Analytics tool... So in the meantime - you can use twittercounter.com and tools like hootsuite/tweetdeck to track mentions & conversations
REMEMBER RULE 3 - DON’T MEASURE EVERYTHING -
[WE’RE LOOKING FOR WHAT MAKES MEANINGFUL DIFFERENCES]
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Main Idea
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GOOGLE BING
4. HOW DO YOU ‘SELL IT’
HOW TO TALK TO CLIENTS & COLLEAGUES ABOUT METRICS
Setting Goals Accountability Transparency
Assessing Effectiveness 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?
A CREDIT CARD BRAND
The business objective: add new cardmembers
The campaign objective:use social media to drive new cardmember sign-ups
The touchpoints:Facebook brand page + Foursquare integration + Mobile-optimized Apply site
A CREDIT CARD BRAND
What is the most important KPI/success metric?
What would you measure/track to determine if you are succeeding?
What experiments would you run to find the best route to success?
A CREDIT CARD BRAND
What matters is acquisition - new cardmembers.
Acquisition comes from qualified leads completing applications - the result of smaller conversions:
•A larger prospect pool
•Prospects to qualified leads
•Qualified leads to applicants
Revenue, Retention &
Referral matter too:
• Cardmembers to active spenders
• Cardmembers to advocates
THANK YOU!