Metrics that Matter: The 360-Degree CustomerPresentation Transcript
VP Client Analytics, Sailthru
Metrics that Matter:
The 360-Degree Customer
Transcending Data Silos for Holistic Marketing
About Me: The “Reader‟s Digest” Version
media/tech banker at Citigroup
acquisition and subscription analytics at TheLadders
independent analytics consultant while MBA‟ing
marketing and analytics at Savored (exited to Groupon)
intrapreneurship at Gerson Lehrman Group (GLG)
client optimization/analytics at Sailthru
to get metrics, we need data
…and that data has become big
big data proliferation:
the good, the bad and the ugly
data is everywhere
more of the good:
meet the “always addressable” customer
with big data come big silos
the ignorant marketer
“Cassie, check out our updated mobile app”
Cassie‟s account is
already linked to an
No options to upgrade
AMEX app in App Store,
so Cassie likely already
has this version
39% of marketers
can‟t turn data into action
Stat Source: Columbia Business School: “Marketing ROI in the Era of Big Data,” 2012.
Image Source: Dilbert, 29 July 2012.
360-degree marketing =
“big data alchemy”
Image Source: Cambridge in Colour, 2013.
how to become an alchemist?
the API economy is key
API aggregation example: SumAll
API aggregation example: GoodData
and of course, there are tools to
let you try this at home
this is precisely what sailthru‟s
“smart data” is all about
…but hacks can work, too
(e.g. bringing user level into GA)
as can clunky “scrappy” excel files!
thought this talk was about metrics?
well, here we go.
give yourself a sanity check!
(b2b vs. b2c, price point, etc.)
measurement happens via 3 lenses
user level – what are users doing?
product/transaction level – when is site
conversion highest? which products yield
the strongest repeat rates?
relationships/ratios – how do certain
experiences impact user behaviors (e.g.
first purchase type vs. NPS)?
cohort analysis vs. vanity metrics
always have a pulse on
what happens on downstream
just say no to “elevator” analysis
understand the why?
product/marketing: deliberate changes to
messaging, site, etc.
business ecosystem: i.e. inventory issues,
“macro” factors: i.e. industry trends,
economic climate, press
relationship analytics, you say?
live chat usage vs. conversion
TheLadders saw a fairly immediate 13%
increase in premium conversion for a test group
that live-chatted with a representative.
feedback vs. subsequent use cases
Some Savored restaurants were absolutely
horrid for driving repeat usage.
account management vs. spend
Does more time spent on account management
yield upsells? Higher contract value?
Does it reduce churn?
tying together online/offline behaviors
Customers who try the brand offline will
oftentimes have higher AOVs (average order
value) online downstream.
define tipping point for engagement
Facebook considers a user to be “engaged” if
s/he gets 7 friends within 10 days of signup.
understanding relationships is as easy as 0,1
models are most ideal, but
you can get started
(directionally) on your own
with simple binomial
e.g. Savored regressed
restaurant churn propensity
against reservations in first
McClure‟s Startup Metrics for Pirates
link to pre
Where do we get new users and how
much does it cost us to get them?
key to acquisition is understanding
efficiency is a function of
spend, creative, multiple conversions
(understand what‟s causing these gaps)
resulting in two CPAs: CPAR + CPAC
…and efficiency is really about the latter
CPAR: cost per registrant (or CPL/lead)
$100 spend / 20 signups = $5 CPAR
CPAC: cost per customer (or engaged user)
20 signups >> 1 buyer = $100 CPAC
can‟t predict the future?
enter the “intake curve”
use the intake curve to predict CPAC
what kind of conversion
are you trying to drive?
use downstream metrics to
inform/optimize your acquisition strategy
Image Source: Kaushik.net
the tighter the tracking, the better
Do users do as we ask them to do?
If so, how quickly do they do it?
define what actually qualifies as
so your customers don‟t pay you?
not a problem…
Develop proxies for revenue – a post, a
Tweet – but make sure those proxies
are truly valuable behaviors.
For advertising-driven businesses, still think
about key value – i.e. PV/user yields $X in
know if you‟re dealing with a
what„s a marketplace?
it„s about balancing supply and demand
health of the marketplace ecosystem has a
material impact on the metrics
is restricted access precluding
important to have realistic
expectations for customer behavior
Image Source: Max Woolf
…don„t jump the gun!
Image Source: Max Woolf
when you can‟t activate via email,
leverage other channels!
even picking up the phone works
(for both b2b and b2c!)
Image Source: SalesNexus
please, just be careful with discounts!
Cost of First Month Month 1 Renewal Rate
$40 (full price) 70%
$0 (free trial) 40%
use your customers to get ideas
How do we keep users engaged with
our product/content over time?
the democratization of 1:1;
mass messaging no longer cuts it
case study: seamless.com
and movable ink‟s device targeter
Source: Movable Ink
case study: scoutmob
app win-back email
old school segmentation has evolved
(because customers aren‟t segments)
“80% of your revenue
comes from 20% of
“what else do we
know about that 20%
quickly, some easy retention tactics
“win-backs” for good customers
who are MIA
(measure by CTR, engagement and lift)
(how many disengaged can you recapture?)
urgency will always move product
page or user flow abandonment
leveraging outside APIs for
(but be strategic about it)
big data vs. big brother
“your friend Amanda dined at Zengo with Savored”
10% open rate
30% open rate
open rates are dead.
metrics such as RPM, PVM define success
understand how email impacts
on site/in app behavior
again, the right metrics are
often more of an art than a science
metric for this email is
likely something like
make it easy: which ONE thing
do you want the user to do?
this is pretty straightforward
(probably optimized for day1 buyers?)
don„t forget about
Savored – increase from 4-15 restaurants
per email increased RPM by over 300%
even creative is about relationships!
component CTR vs. revenue