SlideShare a Scribd company logo
1 of 27
Download to read offline
Designing & Optimizing
the DNA of a Killer App
Dan Olsen, CEO & Founder, YourVersion
Startonomics ∙ San Francisco ∙ Oct 2, 2008 
                            Copyright © 2008 Olsen Solutions LLC
Building the DNA of a Killer App with 
      Metrics and Optimization
How to integrate metrics & optimization
Using metrics to optimize value creation
  Business Value
  Customer Value
  UI Design
Illustrate with real world examples



                          Copyright © 2008 Olsen Solutions LLC
Adding Metrics and Optimization to 
             your Product Process
                                                                       Site Level
           Business     Product       Prioritized 
Plan      Objectives   Objectives    Feature List


                                                          Scoping         Feature 
                                                                           Level

                                    Requirements 
Design                                & Design


                                        Code                Test          Launch
Develop

                                    Metrics & User 
Optimize                              Feedback
                                                      Copyright © 2008 Olsen Solutions LLC
Optimization through Iteration:
  Continuous Improvement
                   Measure
                  the metric


                                       Analyze
       Learning                       the metric
         Gaining knowledge:
         • Market                    Identify top 
         • Customer                 opportunities
                                      to improve
         • Domain
         • Usability             Design & develop  
                                 the enhancement


                 Launch the
                enhancement
                               Copyright © 2008 Olsen Solutions LLC
Optimizing
Business Value Creation 
     with Metrics



                Copyright © 2008 Olsen Solutions LLC
Approaching Business as an 
    Optimization Exercise


Given reality as it exists today,
optimize our business results
subject to our resource constraints.




                         Copyright © 2008 Olsen Solutions LLC
Define the Equation of your Business
          “Peeling the Onion”
Profit = Revenue ‐ Cost

   Unique Visitors x  Ad Revenue per Visitor

                           Impressions/Visitor x  Effective CPM / 1000

                           Visits/Visitor  x  Pageviews/Visit  x  Impressions/PV

   New Visitors + Returning Visitors

   Invited Visitors + Uninvited Visitors

   # of Users Sending Invites  x  Invites Sent/User  x  Invite Click‐through Rate



                                                     Copyright © 2008 Olsen Solutions LLC
How to Track Your Metrics
Track each metric as daily time series
           Unique     Page       Ad      New User 
                                                           …
  Date     Visitors   views    Revenue   Sign‐ups
 4/24/08    10,100    29,600        25         490
 4/27/08    10,500    27,100        24         480
   …

Create ratios from primary metrics:  X / Y
  Example: How good is your registration page?
  Okay:    # of registered users per day
  Better: registration conversion rate =
           # registered users / # uniques to reg page
                                          Copyright © 2008 Olsen Solutions LLC
Sample Signup Page Yield Data
                                                Daily Signup Page Yield vs. Time
                                 New Registered Users divided by Unique Visitors to Signup Page

                          100%

                          90%

                          80%
Daily Signup Page Yield




                          70%

                          60%

                          50%

                          40%

                          30%                                                               Started requiring
                                                                                              registration

                          20%
                                                  Changed                     Added questions
                                                 messaging                     to signup page
                          10%

                           0%
                             1/31 2/14 2/28 3/14 3/28 4/11 4/25 5/9 5/23 6/6 6/20 7/4 7/18 8/1 8/15 8/29 9/12 9/26 10/1
                                                                                                                    0



                                                                                         Copyright © 2008 Olsen Solutions LLC
Using Metrics to Optimize the 
           Equation of your Business
  What are the metrics for your business?
  Where is current value for each metric? 
  How many resources to “move” each metric?
         Developer‐hours, time, money
  Which metrics have highest ROI opportunities?

           Metric A                Metric B                    Metric C
           Good ROI                Bad ROI                     Great ROI




                                                  Return
                         Return
Return




           Investment             Investment                 Investment

                                               Copyright © 2008 Olsen Solutions LLC
Case Study:
                Optimizing Viral Loop Metrics
   % of users
    sending = 15%     Invites per                     Invite
     invites            sender = 2.3           click-through rate

             Active   Invite    Prospective   Click     Registration         Fail
             Users                 Users                 Process
% of users
 who are                                                          Succeed
                                   Don’t
  active                           Click                          Conversion
                                                                     rate    = 85%
             Users



• Multiplied together, these metrics determine your viral ratio
• Which metric has highest ROI opportunity?

                                                 Copyright © 2008 Olsen Solutions LLC
Maximum Upside Potential of a Metric
                                                                           ?




               100%                 100%
                85%



                                     15%                           2.3
                  0                     0                           0
                 Registration      % of users sending             Avg # of invites
                conversion rate        invitations                sent per sender

Max possible   0.15 / 0.85 = 18%   0.85 / 0.15 = 570%               ? / 2.3 = ?%
improvement

                                                 Copyright © 2008 Olsen Solutions LLC
Doubling Number of Invitations Sent per Sender by 
         Adding Address Book Importer




                                Copyright © 2008 Olsen Solutions LLC
Optimizing
Customer Value Creation 
     with Metrics



               Copyright © 2008 Olsen Solutions LLC
The Fuzzy Math of Customer Value
 You create customer value with a product that
   Satisfies customers’ needs
   Is easy to use
   Has a good price
   Is better than other alternatives
 Customer value = customer satisfaction
 Not fuzzy: # of users and frequency of use
 Understanding user needs and satisfaction
   Quantitative: site analytics, usage metrics, surveys
   Qualitative: support emails, usability sessions (best)
                                   Copyright © 2008 Olsen Solutions LLC
What is Your Value Proposition?
  Which user benefits are most important?
  How well does your product deliver?
                Importance     Current User                               Upside
User Benefit      to User      Satisfaction                              Potential
               Low      High   –                    +
Benefit 1                                                                  High

Benefit 2                                                                  High
Benefit 3                                                                  Low ?
                                                          opportunity

Benefit 4                                                                  Med

Benefit 5                                                                  Low ?
                                                           opportunity

Benefit 6                                                                  Low
                                   Doesn’t matter
                                                        Copyright © 2008 Olsen Solutions LLC
Return (Value Created)   Analyzing Product Ideas by ROI

                                        ?
                         4
                                               Idea D
                         3
                             Idea A   Idea B
                         2
                                      Idea C
                         1
                                               Idea F


                               1     2     3    4
                               Investment (developer-weeks)
                                                        Copyright © 2008 Olsen Solutions LLC
Return (Value Created)   Prioritizing Product Ideas by ROI

                                                 Idea C
                         8
                         7             Idea B
                         6
                         5
                         4   Idea A
                         3
                         2
                         1

                               1   2    3     4   5
                               Investment (developer-weeks)
                                                          Copyright © 2008 Olsen Solutions LLC
The UI Design Iceberg
  What most
  people see
  and react to                       Visual
                                     Design                             What good
                                                                        PMs and
                                                                        Designers
                                   Interaction                          think about
                                     Design

                                  Information
                                  Architecture

                                  Conceptual
                                    Design

Recommended reading: Jesse James Garrett’s
“Elements of User Experience” chart, free at www.jjg.net   Copyright © 2008 Olsen Solutions LLC
Approaching UI Design Analytically
 Typical UI design question:
 “When using web pages, do users scroll down?”
   ‐ Yes
   ‐ No

 UI questions are never yes/no! (not binary)
 Should ask: “What percentage of users …?”
 UI changes impact your metrics
   Impact can be positive, negative, small, large
   Seek high‐ROI UI changes
                                   Copyright © 2008 Olsen Solutions LLC
Put Key Conversion Actions Above The Fold
          Landing Page A                 Landing Page B




                            The Fold
Key conversion action
is above the fold
                 Key conversion action
                 is below the fold

                                          Copyright © 2008 Olsen Solutions LLC
The Fold Isn’t Binary Either

                                               768 px

                                                        The chrome steals 
% of Users



                                                         about 170 pixels


                                 600 px                      1024 px




             Data courtesy of ClickTale
             Free trial at www.clicktale.com              Copyright © 2008 Olsen Solutions LLC
Case Study: Account Signup Process Redesign

                    100%
             100%
                             Biggest 
             80%
                              drop
% of Users




                                62.3%
                                               58.8%
             60%
                                                                  50.9%



             40%                                                                  34.4%          32.7%



             20%



              0%


                        Sign in /       Account        Cash vs.       5 Partner       3 Partner
                      Registration       Type          Margin           Pages           Pages
                                                                          Copyright © 2008 Olsen Solutions LLC
Analysis of Sign In/Registration Flow
 Open
Account
                                                           55%
    44%   Register                    Registration     (24% of Total)
                                        Process

                                      45% drop off
                                                                                     64%
                                      (20% of total)
                                                                                   of Total   Account 
                                                                                 36% overall  Selection
                                          83%               30%                  drop off for 
    56%                               (46% of Total)    (14% of Total)            this step
          Sign in


                       Forget                  70%              Change             80%
                      Password             (32% of Total)      Password        (26% of Total)


                      17% drop off                            20% drop off
                     (10% of total)                           (6% of total)


                                                                   Copyright © 2008 Olsen Solutions LLC
Redesigned User Flow Improved 
                                                           Registration Conversion Rate
                                                                                           Abandonment Rate (7 Day Moving Average)
                                                                                                                               Steps 1-2
                                          80%


                                          70%
Abandonment Rate (7 Day Moving Average)




                                          60%


                                          50%


                                          40%


                                          30%                                                                                             Released                        37% improvement
                                                                                                                                         New Design                       in conversion rate
                                          20%


                                          10%


                                          0%
                                                          10/14/02



                                                                     10/21/02



                                                                                10/28/02




                                                                                                        11/11/02



                                                                                                                   11/18/02



                                                                                                                              11/25/02




                                                                                                                                                               12/16/02



                                                                                                                                                                           12/23/02



                                                                                                                                                                                      12/30/02
                                                10/7/02




                                                                                              11/4/02




                                                                                                                                         12/2/02



                                                                                                                                                   12/9/02




                                                                                                                                                                                                          1/13/03



                                                                                                                                                                                                                    1/20/03
                                                                                                                                                                                                 1/6/03
                                                                                                                                                             Copyright © 2008 Olsen Solutions LLC
Summary: Building the DNA of a Killer App
  Define what success means
    Customer value proposition
    Equation of your business
  Instrument your site and track key metrics
  Identify opportunities and prioritize by ROI
  Launch, learn, and iterate



                             Copyright © 2008 Olsen Solutions LLC
Questions?




     www.yourversion.com
     dan@yourversion.com
               Copyright © 2008 Olsen Solutions LLC

More Related Content

Viewers also liked

How to Create Products for Growth by Dan Olsen
How to Create Products for Growth by Dan OlsenHow to Create Products for Growth by Dan Olsen
How to Create Products for Growth by Dan OlsenDan Olsen
 
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...Dan Olsen
 
Lean Product Management for Web 2.0 Products
Lean Product Management for Web 2.0 ProductsLean Product Management for Web 2.0 Products
Lean Product Management for Web 2.0 ProductsDan Olsen
 
From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...
From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...
From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...Dan Olsen
 
Lean Product Management at Silicon Valley Product Camp by Dan Olsen
Lean Product Management at Silicon Valley Product Camp by Dan OlsenLean Product Management at Silicon Valley Product Camp by Dan Olsen
Lean Product Management at Silicon Valley Product Camp by Dan OlsenDan Olsen
 
Ten Nuggets of Advice for Tech Startups
Ten Nuggets of Advice for Tech StartupsTen Nuggets of Advice for Tech Startups
Ten Nuggets of Advice for Tech StartupsDan Olsen
 
How to be a Lean Product Ninja by Dan Olsen
How to be a Lean Product Ninja by Dan OlsenHow to be a Lean Product Ninja by Dan Olsen
How to be a Lean Product Ninja by Dan OlsenDan Olsen
 
How to Achieve Messaging-Market Fit by Dan Olsen
How to Achieve Messaging-Market Fit by Dan OlsenHow to Achieve Messaging-Market Fit by Dan Olsen
How to Achieve Messaging-Market Fit by Dan OlsenDan Olsen
 
Lean Product Analytics by Dan Olsen
Lean Product Analytics by Dan OlsenLean Product Analytics by Dan Olsen
Lean Product Analytics by Dan OlsenDan Olsen
 
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...Dan Olsen
 
Product Lessons from the Early Days at Friendster by Dan Olsen
Product Lessons from the Early Days at Friendster by Dan OlsenProduct Lessons from the Early Days at Friendster by Dan Olsen
Product Lessons from the Early Days at Friendster by Dan OlsenDan Olsen
 
How to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product Camp
How to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product CampHow to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product Camp
How to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product CampDan Olsen
 
Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...
Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...
Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...Dan Olsen
 
Mobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & RetentionMobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & RetentionEmmanuel Quartey
 
The 7 Metrics of Highly Effective Marketers by Dan Olsen
The 7 Metrics of Highly Effective Marketers by Dan OlsenThe 7 Metrics of Highly Effective Marketers by Dan Olsen
The 7 Metrics of Highly Effective Marketers by Dan OlsenDan Olsen
 
Measuring the Right App Metrics - Guide for Beginners
Measuring the Right App Metrics - Guide for BeginnersMeasuring the Right App Metrics - Guide for Beginners
Measuring the Right App Metrics - Guide for BeginnersDeepak Abbot
 
Die zehn Gebote des Interaction Design
Die zehn Gebote des Interaction DesignDie zehn Gebote des Interaction Design
Die zehn Gebote des Interaction DesignStefan Nitzsche
 
Creating A Compelling Brand Story
Creating A Compelling Brand StoryCreating A Compelling Brand Story
Creating A Compelling Brand Storysolaia
 

Viewers also liked (18)

How to Create Products for Growth by Dan Olsen
How to Create Products for Growth by Dan OlsenHow to Create Products for Growth by Dan Olsen
How to Create Products for Growth by Dan Olsen
 
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...
A Playbook for Achieving Product-Market Fit by Dan Olsen at Lean Startup Conf...
 
Lean Product Management for Web 2.0 Products
Lean Product Management for Web 2.0 ProductsLean Product Management for Web 2.0 Products
Lean Product Management for Web 2.0 Products
 
From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...
From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...
From Product Zero to Product Hero: How to Build a Great Web 2.0 Product by Da...
 
Lean Product Management at Silicon Valley Product Camp by Dan Olsen
Lean Product Management at Silicon Valley Product Camp by Dan OlsenLean Product Management at Silicon Valley Product Camp by Dan Olsen
Lean Product Management at Silicon Valley Product Camp by Dan Olsen
 
Ten Nuggets of Advice for Tech Startups
Ten Nuggets of Advice for Tech StartupsTen Nuggets of Advice for Tech Startups
Ten Nuggets of Advice for Tech Startups
 
How to be a Lean Product Ninja by Dan Olsen
How to be a Lean Product Ninja by Dan OlsenHow to be a Lean Product Ninja by Dan Olsen
How to be a Lean Product Ninja by Dan Olsen
 
How to Achieve Messaging-Market Fit by Dan Olsen
How to Achieve Messaging-Market Fit by Dan OlsenHow to Achieve Messaging-Market Fit by Dan Olsen
How to Achieve Messaging-Market Fit by Dan Olsen
 
Lean Product Analytics by Dan Olsen
Lean Product Analytics by Dan OlsenLean Product Analytics by Dan Olsen
Lean Product Analytics by Dan Olsen
 
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...
How to Lead Customer Value Creation by Dan Olsen at Leading the Product Melbo...
 
Product Lessons from the Early Days at Friendster by Dan Olsen
Product Lessons from the Early Days at Friendster by Dan OlsenProduct Lessons from the Early Days at Friendster by Dan Olsen
Product Lessons from the Early Days at Friendster by Dan Olsen
 
How to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product Camp
How to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product CampHow to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product Camp
How to Be a UX Design Army of One by Dan Olsen at Silicon Valley Product Camp
 
Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...
Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...
Product Management by Numbers: Using Metrics To Optimize Your Product by Dan ...
 
Mobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & RetentionMobile App Benchmarks: Engagement & Retention
Mobile App Benchmarks: Engagement & Retention
 
The 7 Metrics of Highly Effective Marketers by Dan Olsen
The 7 Metrics of Highly Effective Marketers by Dan OlsenThe 7 Metrics of Highly Effective Marketers by Dan Olsen
The 7 Metrics of Highly Effective Marketers by Dan Olsen
 
Measuring the Right App Metrics - Guide for Beginners
Measuring the Right App Metrics - Guide for BeginnersMeasuring the Right App Metrics - Guide for Beginners
Measuring the Right App Metrics - Guide for Beginners
 
Die zehn Gebote des Interaction Design
Die zehn Gebote des Interaction DesignDie zehn Gebote des Interaction Design
Die zehn Gebote des Interaction Design
 
Creating A Compelling Brand Story
Creating A Compelling Brand StoryCreating A Compelling Brand Story
Creating A Compelling Brand Story
 

More from Dan Olsen

How Product Management plus Design Leads to Product Success by Dan Olsen
How Product Management plus Design Leads to Product Success by Dan OlsenHow Product Management plus Design Leads to Product Success by Dan Olsen
How Product Management plus Design Leads to Product Success by Dan OlsenDan Olsen
 
How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...
How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...
How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...Dan Olsen
 
Harnessing the Power of Product Analytics by Dan Olsen
Harnessing the Power of Product Analytics by Dan OlsenHarnessing the Power of Product Analytics by Dan Olsen
Harnessing the Power of Product Analytics by Dan OlsenDan Olsen
 
Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...
Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...
Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...Dan Olsen
 
How to Define Your Product Roadmap by Dan Olsen
How to Define Your Product Roadmap by Dan OlsenHow to Define Your Product Roadmap by Dan Olsen
How to Define Your Product Roadmap by Dan OlsenDan Olsen
 
How to Optimize Your Product and Business Using Analytics by Dan Olsen
How to Optimize Your Product and Business Using Analytics by Dan OlsenHow to Optimize Your Product and Business Using Analytics by Dan Olsen
How to Optimize Your Product and Business Using Analytics by Dan OlsenDan Olsen
 
How to Build Great Products by Dan Olsen
How to Build Great Products by Dan OlsenHow to Build Great Products by Dan Olsen
How to Build Great Products by Dan OlsenDan Olsen
 
Recruiting a Great Team for your Startup by Dan Olsen
Recruiting a Great Team for your Startup by Dan OlsenRecruiting a Great Team for your Startup by Dan Olsen
Recruiting a Great Team for your Startup by Dan OlsenDan Olsen
 
How to Make Sure Your Product Rocks
How to Make Sure Your Product RocksHow to Make Sure Your Product Rocks
How to Make Sure Your Product RocksDan Olsen
 
Product Management 101 for Startups
Product Management 101 for StartupsProduct Management 101 for Startups
Product Management 101 for StartupsDan Olsen
 
Social Media Marketing on the Real-time Web
Social Media Marketing on the Real-time WebSocial Media Marketing on the Real-time Web
Social Media Marketing on the Real-time WebDan Olsen
 

More from Dan Olsen (11)

How Product Management plus Design Leads to Product Success by Dan Olsen
How Product Management plus Design Leads to Product Success by Dan OlsenHow Product Management plus Design Leads to Product Success by Dan Olsen
How Product Management plus Design Leads to Product Success by Dan Olsen
 
How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...
How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...
How to Achieve Product-Market Fit with Rapid Prototyping and User Testing by ...
 
Harnessing the Power of Product Analytics by Dan Olsen
Harnessing the Power of Product Analytics by Dan OlsenHarnessing the Power of Product Analytics by Dan Olsen
Harnessing the Power of Product Analytics by Dan Olsen
 
Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...
Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...
Mastering the Problem Space to Achieve Product-Market Fit by Dan Olsen at Min...
 
How to Define Your Product Roadmap by Dan Olsen
How to Define Your Product Roadmap by Dan OlsenHow to Define Your Product Roadmap by Dan Olsen
How to Define Your Product Roadmap by Dan Olsen
 
How to Optimize Your Product and Business Using Analytics by Dan Olsen
How to Optimize Your Product and Business Using Analytics by Dan OlsenHow to Optimize Your Product and Business Using Analytics by Dan Olsen
How to Optimize Your Product and Business Using Analytics by Dan Olsen
 
How to Build Great Products by Dan Olsen
How to Build Great Products by Dan OlsenHow to Build Great Products by Dan Olsen
How to Build Great Products by Dan Olsen
 
Recruiting a Great Team for your Startup by Dan Olsen
Recruiting a Great Team for your Startup by Dan OlsenRecruiting a Great Team for your Startup by Dan Olsen
Recruiting a Great Team for your Startup by Dan Olsen
 
How to Make Sure Your Product Rocks
How to Make Sure Your Product RocksHow to Make Sure Your Product Rocks
How to Make Sure Your Product Rocks
 
Product Management 101 for Startups
Product Management 101 for StartupsProduct Management 101 for Startups
Product Management 101 for Startups
 
Social Media Marketing on the Real-time Web
Social Media Marketing on the Real-time WebSocial Media Marketing on the Real-time Web
Social Media Marketing on the Real-time Web
 

Recently uploaded

Shravan Kumaran and sanjay kumaran.pdf..
Shravan Kumaran and sanjay kumaran.pdf..Shravan Kumaran and sanjay kumaran.pdf..
Shravan Kumaran and sanjay kumaran.pdf..ranjithapriya2
 
Presented by Sabri international .......
Presented by Sabri international .......Presented by Sabri international .......
Presented by Sabri international .......SABRI INTERNATIONAL
 
14 march 2024-capital-markets-update eni.pdf
14 march 2024-capital-markets-update eni.pdf14 march 2024-capital-markets-update eni.pdf
14 march 2024-capital-markets-update eni.pdfEni
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loansujat8807
 
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptxStreamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptxPaulBryant58
 
unfinished legacy it is a clothing brand
unfinished legacy it is a clothing brandunfinished legacy it is a clothing brand
unfinished legacy it is a clothing brandakashm530190
 
Strategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateStrategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateAdnet Communications
 
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)CXO 2.0 Conference
 
Green Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly ProductsGreen Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly ProductsWristbands Ireland
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxBonano Insurance
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"Adharsh45
 
HOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGHOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGNATHAN SPEAKS
 
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAYLouis Malaybalay
 
PHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 FinalPHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 FinalPanhandleOilandGas
 
How The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K SubscribersHow The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K SubscribersFlyyx Tech
 
Benihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdfBenihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdfjavenxxx01
 
Olympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeOlympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeStephenKim86
 
Young Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianYoung Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianCDEEPANVITA
 
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...Khaled Al Awadi
 

Recently uploaded (20)

Shravan Kumaran and sanjay kumaran.pdf..
Shravan Kumaran and sanjay kumaran.pdf..Shravan Kumaran and sanjay kumaran.pdf..
Shravan Kumaran and sanjay kumaran.pdf..
 
Presented by Sabri international .......
Presented by Sabri international .......Presented by Sabri international .......
Presented by Sabri international .......
 
14 march 2024-capital-markets-update eni.pdf
14 march 2024-capital-markets-update eni.pdf14 march 2024-capital-markets-update eni.pdf
14 march 2024-capital-markets-update eni.pdf
 
Wallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loanWallet Pitch for startup fintech and loan
Wallet Pitch for startup fintech and loan
 
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptxStreamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
Streamlining Your Accounting A Guide to QuickBooks Migration Tools.pptx
 
unfinished legacy it is a clothing brand
unfinished legacy it is a clothing brandunfinished legacy it is a clothing brand
unfinished legacy it is a clothing brand
 
Strategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 UpdateStrategic Resources Corporate Presentation - March 2024 Update
Strategic Resources Corporate Presentation - March 2024 Update
 
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
CXO 2.0 Conference (Event Information Deck | Dec'24-Mar'25)
 
Green Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly ProductsGreen Innovations: Wristbands Ireland's Eco-Friendly Products
Green Innovations: Wristbands Ireland's Eco-Friendly Products
 
Importance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptxImportance of Commercial Vehicle Insurance.pptx
Importance of Commercial Vehicle Insurance.pptx
 
"InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age""InShorts: A Game-Changer in the Digital News Age"
"InShorts: A Game-Changer in the Digital News Age"
 
HOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETINGHOW TO START EARNING WITH AFFILIATE MARKETING
HOW TO START EARNING WITH AFFILIATE MARKETING
 
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
3BBE: THE FUTURE OF ECOMMERCE PRESENTATION - LOUIS MALAYBALAY
 
PHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 FinalPHX Corporate Presentation March 2024 Final
PHX Corporate Presentation March 2024 Final
 
How The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K SubscribersHow The Hustle Milestone Referral Program Got 300K Subscribers
How The Hustle Milestone Referral Program Got 300K Subscribers
 
Benihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdfBenihana of Tokyo case study11111111.pdf
Benihana of Tokyo case study11111111.pdf
 
Olympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness GaugeOlympus 38DL Plus Ultrasonic Thickness Gauge
Olympus 38DL Plus Ultrasonic Thickness Gauge
 
WAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdfWAM Corporate Presentation Mar 12 2024_Video.pdf
WAM Corporate Presentation Mar 12 2024_Video.pdf
 
Young Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya CherianYoung Woman Entrepreneur - Kaviya Cherian
Young Woman Entrepreneur - Kaviya Cherian
 
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...NewBase  14 March  2024  Energy News issue - 1707 by Khaled Al Awadi_compress...
NewBase 14 March 2024 Energy News issue - 1707 by Khaled Al Awadi_compress...
 

Designing and Optimizing the DNA of a Killer App by Dan Olsen - Startonomics

  • 2. Building the DNA of a Killer App with  Metrics and Optimization How to integrate metrics & optimization Using metrics to optimize value creation Business Value Customer Value UI Design Illustrate with real world examples Copyright © 2008 Olsen Solutions LLC
  • 3. Adding Metrics and Optimization to  your Product Process Site Level Business Product Prioritized  Plan Objectives Objectives Feature List Scoping Feature  Level Requirements  Design & Design Code Test Launch Develop Metrics & User  Optimize Feedback Copyright © 2008 Olsen Solutions LLC
  • 4. Optimization through Iteration: Continuous Improvement Measure the metric Analyze Learning the metric Gaining knowledge: • Market Identify top  • Customer opportunities to improve • Domain • Usability Design & develop   the enhancement Launch the enhancement Copyright © 2008 Olsen Solutions LLC
  • 5. Optimizing Business Value Creation  with Metrics Copyright © 2008 Olsen Solutions LLC
  • 6. Approaching Business as an  Optimization Exercise Given reality as it exists today, optimize our business results subject to our resource constraints. Copyright © 2008 Olsen Solutions LLC
  • 7. Define the Equation of your Business “Peeling the Onion” Profit = Revenue ‐ Cost Unique Visitors x  Ad Revenue per Visitor Impressions/Visitor x  Effective CPM / 1000 Visits/Visitor  x  Pageviews/Visit  x  Impressions/PV New Visitors + Returning Visitors Invited Visitors + Uninvited Visitors # of Users Sending Invites  x  Invites Sent/User  x  Invite Click‐through Rate Copyright © 2008 Olsen Solutions LLC
  • 8. How to Track Your Metrics Track each metric as daily time series Unique  Page  Ad  New User  … Date Visitors views Revenue Sign‐ups 4/24/08 10,100 29,600 25 490 4/27/08 10,500 27,100 24 480 … Create ratios from primary metrics:  X / Y Example: How good is your registration page? Okay: # of registered users per day Better: registration conversion rate = # registered users / # uniques to reg page Copyright © 2008 Olsen Solutions LLC
  • 9. Sample Signup Page Yield Data Daily Signup Page Yield vs. Time New Registered Users divided by Unique Visitors to Signup Page 100% 90% 80% Daily Signup Page Yield 70% 60% 50% 40% 30% Started requiring registration 20% Changed Added questions messaging to signup page 10% 0% 1/31 2/14 2/28 3/14 3/28 4/11 4/25 5/9 5/23 6/6 6/20 7/4 7/18 8/1 8/15 8/29 9/12 9/26 10/1 0 Copyright © 2008 Olsen Solutions LLC
  • 10. Using Metrics to Optimize the  Equation of your Business What are the metrics for your business? Where is current value for each metric?  How many resources to “move” each metric? Developer‐hours, time, money Which metrics have highest ROI opportunities? Metric A Metric B Metric C Good ROI Bad ROI Great ROI Return Return Return Investment Investment Investment Copyright © 2008 Olsen Solutions LLC
  • 11. Case Study: Optimizing Viral Loop Metrics % of users sending = 15% Invites per Invite invites sender = 2.3 click-through rate Active Invite Prospective Click Registration Fail Users Users Process % of users who are Succeed Don’t active Click Conversion rate = 85% Users • Multiplied together, these metrics determine your viral ratio • Which metric has highest ROI opportunity? Copyright © 2008 Olsen Solutions LLC
  • 12. Maximum Upside Potential of a Metric ? 100% 100% 85% 15% 2.3 0 0 0 Registration % of users sending Avg # of invites conversion rate invitations sent per sender Max possible 0.15 / 0.85 = 18% 0.85 / 0.15 = 570% ? / 2.3 = ?% improvement Copyright © 2008 Olsen Solutions LLC
  • 13. Doubling Number of Invitations Sent per Sender by  Adding Address Book Importer Copyright © 2008 Olsen Solutions LLC
  • 14. Optimizing Customer Value Creation  with Metrics Copyright © 2008 Olsen Solutions LLC
  • 15. The Fuzzy Math of Customer Value You create customer value with a product that Satisfies customers’ needs Is easy to use Has a good price Is better than other alternatives Customer value = customer satisfaction Not fuzzy: # of users and frequency of use Understanding user needs and satisfaction Quantitative: site analytics, usage metrics, surveys Qualitative: support emails, usability sessions (best) Copyright © 2008 Olsen Solutions LLC
  • 16. What is Your Value Proposition? Which user benefits are most important? How well does your product deliver? Importance Current User Upside User Benefit to User Satisfaction Potential Low High – + Benefit 1 High Benefit 2 High Benefit 3 Low ? opportunity Benefit 4 Med Benefit 5 Low ? opportunity Benefit 6 Low Doesn’t matter Copyright © 2008 Olsen Solutions LLC
  • 17. Return (Value Created) Analyzing Product Ideas by ROI ? 4 Idea D 3 Idea A Idea B 2 Idea C 1 Idea F 1 2 3 4 Investment (developer-weeks) Copyright © 2008 Olsen Solutions LLC
  • 18. Return (Value Created) Prioritizing Product Ideas by ROI Idea C 8 7 Idea B 6 5 4 Idea A 3 2 1 1 2 3 4 5 Investment (developer-weeks) Copyright © 2008 Olsen Solutions LLC
  • 19. The UI Design Iceberg What most people see and react to Visual Design What good PMs and Designers Interaction think about Design Information Architecture Conceptual Design Recommended reading: Jesse James Garrett’s “Elements of User Experience” chart, free at www.jjg.net Copyright © 2008 Olsen Solutions LLC
  • 20. Approaching UI Design Analytically Typical UI design question: “When using web pages, do users scroll down?” ‐ Yes ‐ No UI questions are never yes/no! (not binary) Should ask: “What percentage of users …?” UI changes impact your metrics Impact can be positive, negative, small, large Seek high‐ROI UI changes Copyright © 2008 Olsen Solutions LLC
  • 21. Put Key Conversion Actions Above The Fold Landing Page A Landing Page B The Fold Key conversion action is above the fold Key conversion action is below the fold Copyright © 2008 Olsen Solutions LLC
  • 22. The Fold Isn’t Binary Either 768 px The chrome steals  % of Users about 170 pixels 600 px 1024 px Data courtesy of ClickTale Free trial at www.clicktale.com Copyright © 2008 Olsen Solutions LLC
  • 23. Case Study: Account Signup Process Redesign 100% 100% Biggest  80% drop % of Users 62.3% 58.8% 60% 50.9% 40% 34.4% 32.7% 20% 0% Sign in / Account  Cash vs. 5 Partner 3 Partner Registration Type Margin Pages Pages Copyright © 2008 Olsen Solutions LLC
  • 24. Analysis of Sign In/Registration Flow Open Account 55% 44% Register Registration  (24% of Total) Process 45% drop off 64% (20% of total) of Total Account  36% overall  Selection 83% 30% drop off for  56% (46% of Total) (14% of Total) this step Sign in Forget  70% Change  80% Password (32% of Total) Password (26% of Total) 17% drop off  20% drop off (10% of total) (6% of total) Copyright © 2008 Olsen Solutions LLC
  • 25. Redesigned User Flow Improved  Registration Conversion Rate Abandonment Rate (7 Day Moving Average) Steps 1-2 80% 70% Abandonment Rate (7 Day Moving Average) 60% 50% 40% 30% Released 37% improvement New Design in conversion rate 20% 10% 0% 10/14/02 10/21/02 10/28/02 11/11/02 11/18/02 11/25/02 12/16/02 12/23/02 12/30/02 10/7/02 11/4/02 12/2/02 12/9/02 1/13/03 1/20/03 1/6/03 Copyright © 2008 Olsen Solutions LLC
  • 26. Summary: Building the DNA of a Killer App Define what success means Customer value proposition Equation of your business Instrument your site and track key metrics Identify opportunities and prioritize by ROI Launch, learn, and iterate Copyright © 2008 Olsen Solutions LLC
  • 27. Questions? www.yourversion.com dan@yourversion.com Copyright © 2008 Olsen Solutions LLC