[Vietnam Mobile Day 2013] - Business intelligence driven marketing

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Din gi: Alex Sung n v: Cng ty Spicy Cinnamon Pte

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Business Intelligence Driven Marketing

Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Introduction

Alex SungTechnical Lead at eBaySr. Product Manager at GREE InternationalCTO at Spicy Cinnamon

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Focus Today

ContentsIdentifying Key Performance Indicators (KPI)Designing an Analytics PlatformWhats next & other notes

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI

TopicsPurposeOverviewImportant KPIsSegmentation

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Purpose

KPIs evaluate the health of your product and your business. 3 categories:AcquisitionEngagementMonetization

Goal: final cost per user is less than final life time value of user

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Overview

Acquisition

Engagement

Monetization

Cost (per user)Cost-per-impression (CPI)Cost-per-click (CPC)Cost-per-install (CPI)# Impressions# ClicksClick-through-rate (CTR)# Downloads# Installs# ActivationsConversion (CVR) K-factor (Virality Rate)

DAUMAUStickiness (DAU/MAU)Retention Rate (RR)Session LengthLife Time (LT)Product-specific

Spending DAUSpend AmountARPUARPPUARPDAULife-time Value (LTV)

Many KPIsHere is a list of the most standard ones

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Overview (Today)

Acquisition

Engagement

Monetization

Cost (per user)Cost-per-impression (CPI)Cost-per-click (CPC)Cost-per-install (CPI)# Impressions# ClicksClick-through-rate (CTR)# Downloads# Installs# ActivationsConversion (CVR) K-factor (Virality Rate)

DAUMAUStickiness (DAU/MAU)Retention Rate (RR)Session LengthLife Time (LT)Product-specific

Spending DAUSpend AmountARPUARPPUARPDAULife-time Value (LTV)

Due to limit on time, we will concentrate only on a few interesting ones

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - K-factor (Virality)

Value: A measure of how virally effective or social the app isMore viral = less cost to hit # Installs KPILonger app life time

Definition:K = # invites & conversion rate (1 = status quo)

Suggestions:Social network integration (FB, Twitter connect)Competitive or cooperative systems (raids, trading)Friend codesInvitation incentives (HC, speed-ups)

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Retention Rate (RR)

Value: Indication of how well the app keeps users returningMore returns = longer user life = more monetizationHighly targetable cohorts

Definition:Day0 = First time activated users on specific dateDayX RR = # users from Day0 return / # Day0 usersDay0 is constantly rolling (every day is a new Day0)Day1-14 RR most indicative of user behaviorFollowed by Day30, 60, 90View DayX RR as trending or averaged over data pointsAveraging Day30 RR requires 2 months

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Retention Rate (RR) continue

Suggestions:Good product and useful serviceVirality friends are on itNew content (whether by developers or active community)Incentivized returns (HC)Special events (discounts, raids, limited time)Push notification reminders

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Life-Time Value (LTV)

Value: Ultimately, how much revenue each average user provides

Definition:Simple, ARPDAU * LT (estimate LT based on RR)Most popular, usually assume 30-Day LTVStrict, create cohort for first time users for each day for LT # of days. Track & sum up IAP for each user. Average across cohorts.Difficult to define: are users that provide community content or are virally active part of value?

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Life-Time Value (LTV) continue

Suggestions:Improvement to RR & worth paying service / productDiscount events to IAPStrong visual indicators (juicy feedback)Provide enough access points to IAPProvide enough options for IAPThere are high-rollers, provide options for themAllow pay-to-speed-upSpecial expression based VGDo not allow pay-to-win; risk of damaging community

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

KPI - Segmentation

Time

Acquisition

Monetization

First-time usersNew vs Existing (30-days)Cumulative vs Daily

HardwareModelManufacturerOS Version

MarketplaceAd NetworkCampaignCreativeIncentivized vs nonInvitationOrganic

Geo-locationLanguage

Spenders vs non-spendersOne-time spendersSC vs HC vs real-cash

AgeGenderEthnicityOccupation

Platform

Location

Demographic

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Analytics Platform

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Analytics Platform

TopicsData Collection & IntegrationData Engine & Big Data ProcessingVisualizations & Services

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Data Collection & Integration

Ad Networks

Clients

App Engine

Data Collector

Analytics Logger

Raw Data

Ad Network SDK

API Integration

Client SDKClient-side SDKs simpler to integrateSome Ad Networks provide analyticsSDKs must be scheduled in release plan

Server APIAPI provides scheduling flexibilityRequires client to send uniqueness and segmentation data

Data CollectorStore uniqueness, segmentation, & event dataCollect application data via web log scrapingCollect Ad Network raw data for acquisition to engagement mappingSends collected analytics data to Data Engine for processing

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Rules Engine

Job StatusTracker

Scheduling Framework

Validation Framework

Notification Framework

Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Data Engine & Big Data Processing

ETLPig / Hive

Intermediate Events(HDFS)

Segmentation Buckets(HDFS)

Big Data Processing(Hadoop Cluster)

Summary Containers

Aggregated Storage

Data Collector

Workflow Engine

Analytics Data

HadoopIntermediate data storage as filesHDFS custom data miningScheduled ETL to process summarized dataWorkflow Engine to manage Hadoop jobs

Aggregated StorageSummary data stored in RDBMSConnected to Visualization tools

Real-TimeNot everything, identify critical KPI and segmentationsRevenue# SessionsEnterprise solutions: Vertica, Teradata

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Visualizations & Services

DashboardsPictures are worth a thousand wordsTell a storyReporting is only valuable if it is actionable (avoid vanity reporting)Standardized KPI reporting for business health

ServicesFunnel analysis & A/B testing for productAlerts & notifications for engineeringSudden drop in # sessions means app engine may be downVisual data mining

Tools & Tech3rd party: Tableau, MicrostrategyHTML5 for web and mobile support

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Whats Next

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Whats Next

Ad NetworksObtain internal raw dataVendor reporting cannot always be trustedCohort to find channels with high-quality usersStrategize between burst vs consistency marketing campaignsNormalize channel data

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Whats Next continue

EngagementAcquiring users is expensiveFocus on Live Ops for re-engagementProvide fresh contentProvide community and discount eventsIf you support multiple apps / gamesCross-Promote (X-Promo) at end of user lifeBe careful to not self-cannibalize

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Copyright 2013-2014. Spicy Cinnamon Pte. Ltd

Thank You

AiTi-Aptech & Vietnam Mobile Day 2013

We are HIRING!alex@cinnamon.isthao@cinnamon.is

http://tinyurl.com/Seconds-Photo-Chatroom

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