Metrics Driven Design by Joshua Porter

Metrics-Driven Design by Joshua Porter Twitter: bokardo bokardo 52weeksofUX performable microcopy designing for the social web make them care! by Joshua PorterSaturday, March 12, 2011

Saturday, March 12, 2011

“Unfortunately for me, there was one small problem I didn’t see back then.”Saturday, March 12, 2011

Doug Bowman on Design at Google “ Yes, it’s true that a team at Google couldn’t decide between two blues, so they’re testing 41 shades between each blue to see which one performs better. I had a recent debate over whether a border should be 3, 4 or 5 pixels wide, and was asked to prove my case. I can’t operate in an environment like that. Metrics-Driven Design Daring. Decisive. Conviction. SXSWSaturday, March 12, 2011

41 Shades of Blue Test link color Gmail Google Search 41 Bucket Split Test: ~2.5% of users each got a shade for 2 weeks.Saturday, March 12, 2011

#2200C1 #0044CC Google BingSaturday, March 12, 2011

“ That blue was worth at least $80 million. Paul Ray, UX Manager, Bing Metrics-Driven Design Microcopy SXSWSaturday, March 12, 2011

Doug Bowman on Design at Google “ When a company is ﬁlled with engineers, it turns to engineering to solve problems. Reduce each decision to a simple logic problem. Remove all subjectivity and just look at the data. Data in your favor? Ok, launch it. Data shows negative eﬀects? Back to the drawing board. And that data eventually becomes a crutch for every decision, paralyzing the company and preventing it from making any daring design decisions. Metrics-Driven Design Daring. Decisive. Conviction. SXSWSaturday, March 12, 2011

Spectrum of Design Intuition-Driven Data-Driven Make best-guesses Every design choice is tested Rely on previous experience Takes others experience with a grain of salt Study what others are doing Design is a logic problem Use best practices, principles & patterns Rely on data for decision-making Aesthetics are integral Aesthetics are secondary Rely on our gut Never trust your gut Creative, visionary Cold, calculating Inherently risky Risk-averse Doug’s words: Assumed: instinctive, subjective, daring deliberate, objective, safeSaturday, March 12, 2011

Imagine that your design is a mountain... Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Imagine that your design is a mountain... EXISTING DESIGN Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Imagine that your design is a mountain... Now EXISTING DESIGN Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Imagine that your design is a mountain... Optimized (local maxima) Now EXISTING DESIGN Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Imagine that your design is a mountain... Potential Improvement Optimized (local maxima) Now Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Imagine that your design is a mountain... Goal BETTER DESIGN Current Design EXISTING DESIGN Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Imagine that your design is a mountain... Goal Potential Improvement BETTER DESIGN Now EXISTING DESIGN Metrics-Driven Design The grass is always greener on other mountainsides. SXSWSaturday, March 12, 2011

Optimization asks: What works best in the current model? Design innovation asks: What is the best possible model?Saturday, March 12, 2011

What are Metrics?Saturday, March 12, 2011

DEFINITION Metrics are simply numbers that measure the eﬀectiveness of your business.Saturday, March 12, 2011

5 Reasons why Metrics are a Designer’s Best FriendSaturday, March 12, 2011

1. Metrics reduce arguments based on opinion.Saturday, March 12, 2011

2. Metrics give you answers about what really works.Saturday, March 12, 2011

3. Metrics show you where you’re strong as a designer.Saturday, March 12, 2011

4. Metrics allow you to test anything you want.Saturday, March 12, 2011

5. Clients love metrics.Saturday, March 12, 2011

PRINCIPLE Your metrics will be as unique as your business.Saturday, March 12, 2011

Vanity Metrics Metrics-Driven Design Ego SXSWSaturday, March 12, 2011

The Usage LifecycleSaturday, March 12, 2011

Interested Trial/beta User Customer Passionate CustomerSaturday, March 12, 2011

Acquisition Conversion Engagement Satisfaction Interested Trial/beta User Customer Passionate CustomerSaturday, March 12, 2011

With metrics you are essentially just measuring how well you move people along the lifecycle!Saturday, March 12, 2011

Acquisition MetricsSaturday, March 12, 2011

CPA - Cost per Acquisition If your CPA is higher than your LTV then you’re in trouble.Saturday, March 12, 2011

Acquisition vs. Referral: Dropbox Ran Google Adwords campaigns to drive traﬃc to dropbox.com The traﬃc that completed the lifecycle: 1) Searched on a keyword 2) Visited their site 3) Signed-up for service 4) Became a customer cost them $233-$388 per person! (for a $99 product) Metrics-Driven Design LTV = Lifetime value SXSWSaturday, March 12, 2011

Dropbox Lifecycle 30 days prior to April 2010, Dropbox users sent 2.8 million direct referral invites. Dropbox’s referral program with 2-sided incentive increased sign-ups by 60% permanently. Metrics-Driven Design Referral = Word of Mouth SXSWSaturday, March 12, 2011

Performable Acquisition Metrics Comparative Metrics Revenue by Channel Revenue by Keyword Metrics-Driven Design Microcopy SXSWSaturday, March 12, 2011

Conversion MetricsSaturday, March 12, 2011

Trials / Conversions = Conversion RateSaturday, March 12, 2011

Conversion Funnel Analysis A A 100% B B 60% C C 20% Metrics-Driven Design SXSWSaturday, March 12, 2011

Sign-up Conversion Funnel Original Flow 1 2 3 4 conﬁrm personal info add your friends invite others getting started Original Conversion Funnel 1 100% of the 100% of people who started the sign-up process, only 2 63% 14% made it to the getting started screen. 3 26% 4 14% Metrics-Driven Design SXSWSaturday, March 12, 2011

Sign-up Conversion Funnel New Flow 2 4 add your friends getting started New Conversion Funnel 2 100% of the 100% of people who started the sign-up process, 86% made it to the getting started screen. 4 86% Metrics-Driven Design Removing stuﬀ is a quick way to improve your funnel SXSWSaturday, March 12, 2011

Engagement Matters: Twitter http://www.lukew.com/ff/entry.asp?1039 Metrics-Driven Design Speed without context is wasted. SXSWSaturday, March 12, 2011

Engagement MetricsSaturday, March 12, 2011

• Hits • Page views • Visits • Unique Visitors • Returning Visitors • Registered Users • Customers • Frequency • Time on Site • Daily Active UsersSaturday, March 12, 2011

Cohort Analysis Engagement over time Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 (Joined in) 100% 20% 19% 13% 13% 10% 12% 11% 7% 7% 7% ? January 100% 21% 16% 13% 11% 9% 9% 7% 7% 7% ? February 100% 24% 20% 17% 15% 13% 11% 10% 10% ? March 100% 31% 27% 24% 19% 15% 12% 12% ? April 100% 31% 27% 25% 21% 18% 16% ? May 100% 39% 28% 24% 20% 19% ? June 100% 40% 33% 27% 23% ? July 100% 47% 41% 32% ? August 100% 52% 43% ? September In this case engagement is improving nicely. 100% 53% ? Of the January cohort, only 20% were engaged in month 2. October Of the October cohort, 53% were engaged in month 2. 100% ? November ? December http://redeye.ﬁrstround.com/2008/01/after-the-techc.htmlSaturday, March 12, 2011

Prevention: Facebook Deactivation Design changes to the deactivation page accounted for 1 million members not leaving the service. Julie Zhou, Facebook http://www.readwriteweb.com/archives/what_happens_when_you_deactivate_your_facebook_acc.php Metrics-Driven Design I will miss you after my talk today. SXSWSaturday, March 12, 2011

Satisfaction MetricsSaturday, March 12, 2011

Referral: Net Promoter Score How likely is it that you would recommend our company to a friend or colleague? 0 1 2 3 4 5 6 7 8 9 10 Metrics-Driven Design Do you know what your net promoter score is? SXSWSaturday, March 12, 2011

Net Promoter Score How likely is it that you would recommend our company to a friend or colleague? 0 1 2 3 4 5 6 7 8 9 10 Detractors Passives Promoters Score = % Promoters - % Detractors Metrics-Driven Design Do you know what your net promoter score is? SXSWSaturday, March 12, 2011

Mint.com & Net Promoter Score “ Maybe we didn’t have a high viral coeﬃcient but we had a great net promoter score. Jason Putorti, Lead Designer, Mint.com Metrics-Driven Design SXSWSaturday, March 12, 2011

Emergent MetricsSaturday, March 12, 2011

Emergent Metrics: 5 Friends The magic number is 5. Once a FriendFeed user found ﬁve friends, they became active users. Bret Taylor, Friendfeed Metrics-Driven Design SXSWSaturday, March 12, 2011

Is there one metric that drives others? “ At Blogger, we determined that our most critical metric was number of posts. An increase in posts meant that people were not just creating blogs, but updating them, and more posts would drive more readership, which would drive more users, which would drive more posts. Ev Williams founder of Blogger & Twitter Metrics-Driven Design Once you’re lucky, twice you’re good. SXSWSaturday, March 12, 2011

Principles of Metrics-Driven Design 1. Optimize in small steps; innovate with daring leaps. 2. No design survives contact with the user. 3. Small improvements, taken together, yield amazing results. 4. Testing is empowering, reversion is cleansing. 5. Metrics are not creative: human beings are. 6. All team members are responsible for the user experience. 7. If metrics aren’t actionable, they aren’t useful. 8. Design is never done. Metrics-Driven Design Reminder: Principal = Person & Principle = Thing SXSWSaturday, March 12, 2011

This Talk. http://bokardo.com/talks/metrics-driven-design/Saturday, March 12, 2011

My Life. http://performable.com http://oneﬂightbooks.comSaturday, March 12, 2011

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Metrics Driven Design by Joshua Porter

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