• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Designing and Optimizing the DNA of a Killer App by Dan Olsen - Startonomics
 

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

on

  • 9,596 views

Best practices in applying metrics to optimizing your product and your business by Dan Olsen from the Startonomics Conference in San Francisco, October 2, 2008

Best practices in applying metrics to optimizing your product and your business by Dan Olsen from the Startonomics Conference in San Francisco, October 2, 2008

Statistics

Views

Total Views
9,596
Views on SlideShare
7,220
Embed Views
2,376

Actions

Likes
20
Downloads
182
Comments
2

17 Embeds 2,376

http://www.webproductblog.com 1096
http://www.olsensolutions.com 722
http://olsensolutions.com 470
http://www.mattcollins.net 21
http://localhost 18
http://product-jobs.com 16
http://www.mulogy.com 9
http://buildinggreatproducts.com 6
http://www.olsensolutions.com. 4
http://500hats.typepad.com 3
http://www.spokenword.org 2
https://twitter.com 2
http://www.linkedin.com 2
http://blog.slideshare.net 2
http://static.slidesharecdn.com 1
http://www.slideshare.net 1
http://curso18.ccmc.climantica.org 1
More...

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

12 of 2 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • If you like my presentation, I'm excited to tell you about an all-day workshop I'm hosting on Jun 12th in Palo Alto. It's called 'Toolbox', and we'll be covering best practices in product management, UI design, and marketing with an emphasis on startups.

    Learn more at http://toolbox.eventbrite.com. Please use promo code 'slideshare' for a big discount! Thanks!
    Are you sure you want to
    Your message goes here
    Processing…
  • Hi everyone,

    My startup YourVersion http://www.yourversion.com launched to the public on Sep 14 at the TechCrunch50 Conference where we won the People's Choice Award. I've developed YourVersion using the product management principles that I talk about in my SlideShares.

    YourVerson is a real-time discovery engine that continuously discovers new, relevant tailored to your interests and makes it easy to bookmark and share that content. In addition to the website, we have a free iPhone app and Firefox toolbar.

    Please check it out at http://www.yourversion.com

    Thanks!

    Dan Olsen
    CEO & Founder, YourVersion
    http://www.yourversion.com
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

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

    • 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