You’ve got 3 minutes.Write down 3 reasons to love metrics.    Then 3 reasons to hate them.          One per post-it.When y...
@FARRAHBOSTIC
PROMISES WERE MADE.DIGITAL WAS GOING TO MAKE EVERYTHINGEASIER TO MEASURE.THAT MEANT IT WAS GOING TO BE EASIER TOTARGET AUD...
TITLEMain Idea•Bullet•Bullet
TITLEMain Idea•Bullet•Bullet
TITLEMain Idea•Bullet•Bullet     GOOGLE BING
“BIG DATA”
VANITY METRICS                       “Number                  make us       s that                           look goo     ...
I notice increasing reluctance onthe part of marketing executivesto use judgment; they are comingto rely too much on resea...
MEASURE WHAT MATTERS
1. WHY YOU SHOULD MEASURE
MEASUREMENTIS FOR LEARNING
METRICS ARE GOOD!   1. Metrics reduce arguments based on opinion.   2. Metrics give you answers about what really works.  ...
YOU’VE BEEN ON A JOURNEY
YOU’RE ALL START-UPS NOW.THE PURPOSE OF A STARTUP IS TO SEEK AVIABLE BUSINESS MODELWITH LIMITED TIME AND MONEYSOUND FAMILI...
START-UPS HAVE TO FIGURE OUT:WHETHER TO GO FORWARD WITH AN IDEAHOW TO OPTIMIZE THE IDEAWHEN TO PIVOTHOW TO SCALE
DON’T PLAY METRICS BINGO                           TIME               SIGN-    KPI         UPS                            ...
YOUR METRICS WILL BE ASUNIQUE AS YOUR BUSINESS.IF METRICS AREN’T ACTIONABLE,THEY AREN’T WORTH USING.DON’T TRY TO MEASURE E...
2. WHAT YOU SHOULD MEASURE
USE ‘PIRATE’ METRICSAcquisition: users from channels cometo site, landing page, widget, etcActivation: users enjoy 1st vis...
FOR A CREDIT CARD BRANDAcquisition is a qualifiedlead completing anapplication - the resultof smaller conversions:• A large...
YOUR GOAL IS TO GROW YOUR BRAND.Brand growth comes fromcustomer acquisition.Marketing should bedeveloped for Acquisition.P...
BUT WHAT ABOUT THE OTHER STUFF?Brand attributes?Loyalty?Share of wallet?Media mix modeling?
THERE ARE SOME INCONVENIENT TRUTHSUser bases seldom vary:Rival brands sell to very similar customerbases.Attitudes and bra...
THE LAWS OF MARKETING SCIENCEDouble Jeopardy Law: the lower market sharebrands in a market have far fewer buyers in atime ...
THE OTHER LAWS OF MARKETING SCIENCELaw of Buyer Moderation: Heavy buyerssometimes buy less often, light buyerssometimes bu...
THE LESSON:Set up metrics that:Reflect critical steps on the way to your business goal.Are relevant to the experience/produ...
You’ve got 3 minutes.Write down 3 business objectives        for your concept.   Be as specific as you can.    (and hold on...
3. HOW TO GET STARTED
FRAMING THE CONTEXT FOR MEASUREMENT  Setting Goals   Accountability   Transparency   Assessing                   Optimizin...
INSTALL THE BASICS, AND SET A BASELINE             I NEVER FELT LIKE I                WAS LEARNING            ANYTHING IMP...
GET OUT OF THE BUILDING
WHAT YOU NEED TO LEARNDo you need to seek other customers that are a better fit?Do you need to rethink your positioning?Wha...
THEN: SET A FEW REASONABLE KPI’SWhat are the business objectives?What are the campaign objectives?What are the channels/to...
You’ve got 3 minutes.     Write down 3 KPIsyou might set for your concept.      Make them relevantto both your business ob...
4. TOOLS YOU CAN USE
PINTEREST PROJECT CHARTERWhy we’re            What is the objective?doing this:          • e.g., Drive pre-orders of a new...
SETTING THE RIGHT FRAMEWORK,    BASED ON CONVERSATIONS WITHTHE WHOLE TEAM, AND YOUR CUSTOMERS,       WILL HELP YOU DETERMI...
measurebuild                            Learn        respond
SITE ANALYTICS:ONGOING TRACKING + CAMPAIGN EVALUATION
A/B TESTING:     WHICH ONE IS MORE EFFECTIVE?                                                           @37SIGNALShttp://w...
FUNNEL METRICS:     WHEN/WHERE DO WE CONVERT USERS?                                      EXTENDED SIGN-UP FUNNELhttp://www...
COHORT METRICS:     WHERE IS SUCCESS COMING FROM?                                      COHORT METRICS - CREATED           ...
HACK THE METRICSUse unique links - You don’t always own your own commercesystem. Using services like Bit.ly, a URL shorten...
REMEMBER:DON’T MEASURE EVERYTHING  [WE’RE LOOKING FOR MEANINGFUL DIFFERENCES]
You have 5 minutes   to break into 5 or 6 teams      and select a concept   you’ve been working on.     Then you get 15 mi...
MEASUREMENT CHARTERWhy we’re     What is the objective?doing this:What we’re    What are the tasks?doing:What success What...
Use the easel paper topost your measurement charter       around the room.  Each team gets 2 minutes    to tell us how it ...
SUMMING UPMeasure what will teach you the most and help you make themost important decisions.Use bespoke, not off-the-shelf...
THAT WAS FUN.
Measurement & ROI for Hyper Island
Measurement & ROI for Hyper Island
Measurement & ROI for Hyper Island
Measurement & ROI for Hyper Island
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Measurement & ROI for Hyper Island

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A new version of the talk I've given at Hyper Island.

Published in: Business

Measurement & ROI for Hyper Island

  1. 1. You’ve got 3 minutes.Write down 3 reasons to love metrics. Then 3 reasons to hate them. One per post-it.When you’ve got all 6, bring them up.
  2. 2. @FARRAHBOSTIC
  3. 3. PROMISES WERE MADE.DIGITAL WAS GOING TO MAKE EVERYTHINGEASIER TO MEASURE.THAT MEANT IT WAS GOING TO BE EASIER TOTARGET AUDIENCES.AND THAT WAS GOING TO MEAN...
  4. 4. TITLEMain Idea•Bullet•Bullet
  5. 5. TITLEMain Idea•Bullet•Bullet
  6. 6. TITLEMain Idea•Bullet•Bullet GOOGLE BING
  7. 7. “BIG DATA”
  8. 8. VANITY METRICS “Number make us s that look goo don’t re d but ally hel p make decision s.” Eric Ries The Lean , Start-up
  9. 9. I notice increasing reluctance onthe part of marketing executivesto use judgment; they are comingto rely too much on research, andthey use it as a drunkard uses alamp post: for support, ratherthan for illumination.David Ogilvy
  10. 10. MEASURE WHAT MATTERS
  11. 11. 1. WHY YOU SHOULD MEASURE
  12. 12. MEASUREMENTIS FOR LEARNING
  13. 13. METRICS ARE GOOD! 1. Metrics reduce arguments based on opinion. 2. Metrics give you answers about what really works. 3. Metrics show you where you’re strong. 4. Metrics allow you to test anything you want. 5. Managers love metrics.http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
  14. 14. YOU’VE BEEN ON A JOURNEY
  15. 15. YOU’RE ALL START-UPS NOW.THE PURPOSE OF A STARTUP IS TO SEEK AVIABLE BUSINESS MODELWITH LIMITED TIME AND MONEYSOUND FAMILIAR?
  16. 16. START-UPS HAVE TO FIGURE OUT:WHETHER TO GO FORWARD WITH AN IDEAHOW TO OPTIMIZE THE IDEAWHEN TO PIVOTHOW TO SCALE
  17. 17. DON’T PLAY METRICS BINGO TIME SIGN- KPI UPS ON CPM IMPRESSIONS SITE CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT PAGE LTV SENTIMENT ANALYSIS ROI VIEWS FOLLOWS MENTIONS CTR DOWNLOADS BRAND MEDIA MIX ATTRIBUTES MODELING SHARE SALIENCE LIKEABILITY RECALL OF ?? WALLET
  18. 18. YOUR METRICS WILL BE ASUNIQUE AS YOUR BUSINESS.IF METRICS AREN’T ACTIONABLE,THEY AREN’T WORTH USING.DON’T TRY TO MEASURE EVERYTHING.
  19. 19. 2. WHAT YOU SHOULD MEASURE
  20. 20. USE ‘PIRATE’ METRICSAcquisition: users from channels cometo site, landing page, widget, etcActivation: users enjoy 1st visit, "happy"user experience *Retention: users re-visit multiple timesReferral: users like experience enough *to refer others via email, links, likes,blogs, widgets, word-of-mouth, etcRevenue: users buy, download, sign-uphttp://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
  21. 21. FOR A CREDIT CARD BRANDAcquisition is a qualifiedlead completing anapplication - the resultof smaller conversions:• A larger prospect pool• Prospects to qualified leads• Qualified leads to applicants• Cardmembers to active spenders• Cardmembers to advocates
  22. 22. YOUR GOAL IS TO GROW YOUR BRAND.Brand growth comes fromcustomer acquisition.Marketing should bedeveloped for Acquisition.Product & service designshould be optimized forActivation & Retention.
  23. 23. BUT WHAT ABOUT THE OTHER STUFF?Brand attributes?Loyalty?Share of wallet?Media mix modeling?
  24. 24. THERE ARE SOME INCONVENIENT TRUTHSUser bases seldom vary:Rival brands sell to very similar customerbases.Attitudes and brand beliefs reflectbehavioral loyalty:Consumers know and say more aboutbrands they use often, and they think andsay little about brands they do not use.Usage drives attitude:Consumers like what they buy.
  25. 25. THE LAWS OF MARKETING SCIENCEDouble Jeopardy Law: the lower market sharebrands in a market have far fewer buyers in atime period and also lower brand loyalty.Retention Double Jeopardy: All brands losesome buyers; this loss is proportionate withmarket share.Pareto Law is 60/20 (not 80/20): Slightly morethan half of a brand’s sales come from the top20% of customers.
  26. 26. THE OTHER LAWS OF MARKETING SCIENCELaw of Buyer Moderation: Heavy buyerssometimes buy less often, light buyerssometimes buy more often, non-buyerssometimes become buyers.Law of Prototypicality: Image attributes thatdescribe the product category score higherthan less prototypical attributesDuplication of Purchase Law: A brand’scustomer base overlaps with the customerbase of other brands, in line with their marketshare.
  27. 27. THE LESSON:Set up metrics that:Reflect critical steps on the way to your business goal.Are relevant to the experience/product being measured.And are built to help you continuously learn about yourcustomers.
  28. 28. You’ve got 3 minutes.Write down 3 business objectives for your concept. Be as specific as you can. (and hold on to those)
  29. 29. 3. HOW TO GET STARTED
  30. 30. FRAMING THE CONTEXT FOR MEASUREMENT Setting Goals Accountability Transparency Assessing Optimizing Learning Effectiveness Good measurement practices improve: client-agency relationships insight design results
  31. 31. INSTALL THE BASICS, AND SET A BASELINE I NEVER FELT LIKE I WAS LEARNING ANYTHING IMPORTANT
  32. 32. GET OUT OF THE BUILDING
  33. 33. WHAT YOU NEED TO LEARNDo you need to seek other customers that are a better fit?Do you need to rethink your positioning?What would you have to change to create value?Is it possible to give people what they want?Should you make something else?
  34. 34. THEN: SET A FEW REASONABLE KPI’SWhat are the business objectives?What are the campaign objectives?What are the channels/touchpoints?What is the campaign experience & message?What do we expect people to do?
  35. 35. You’ve got 3 minutes. Write down 3 KPIsyou might set for your concept. Make them relevantto both your business objectives and your concept. (and hold on to those)
  36. 36. 4. TOOLS YOU CAN USE
  37. 37. PINTEREST PROJECT CHARTERWhy we’re What is the objective?doing this: • e.g., Drive pre-orders of a new title • e.g., Aid discovery of other books in the imprint • e.g.., Engage readers with additional content/ activitiesWhat we’re What are the tasks?doing: • Who will manage the pinboard? • Which account will it be on? • What will the board’s theme be, how does it connect to the book/ author/ imprint? • What assets will you create/use as pins v. content you re-pin? • Whose approval/review do we need?What success What is the goal?looks like: • Establish measurable goals: followers, likes, re- pins, other shares, comments, click to purchase, traffic referral • Set up preferred tools for measurement: Google Analytics, Reachly, Pinalytics • Establish milestones for measurement
  38. 38. SETTING THE RIGHT FRAMEWORK, BASED ON CONVERSATIONS WITHTHE WHOLE TEAM, AND YOUR CUSTOMERS, WILL HELP YOU DETERMINE WHICH TOOLS TO USE
  39. 39. measurebuild Learn respond
  40. 40. SITE ANALYTICS:ONGOING TRACKING + CAMPAIGN EVALUATION
  41. 41. A/B TESTING: WHICH ONE IS MORE EFFECTIVE? @37SIGNALShttp://www.slideshare.net/stueccles/lean-startup-metrics
  42. 42. FUNNEL METRICS: WHEN/WHERE DO WE CONVERT USERS? EXTENDED SIGN-UP FUNNELhttp://www.slideshare.net/stueccles/lean-startup-metrics
  43. 43. COHORT METRICS: WHERE IS SUCCESS COMING FROM? COHORT METRICS - CREATED PROJECThttp://www.slideshare.net/stueccles/lean-startup-metrics
  44. 44. HACK THE METRICSUse unique links - You don’t always own your own commercesystem. Using services like Bit.ly, a URL shortener, you can trackthe behavior that a social mention or display ad or site/page leadsto by tracking the unique link associated with each source.Stop paying for CPMs - Pay for conversions! But define clearlywhat a ‘conversion’ is, and design ad units & digital experiencesfor conversion moments.
  45. 45. REMEMBER:DON’T MEASURE EVERYTHING [WE’RE LOOKING FOR MEANINGFUL DIFFERENCES]
  46. 46. You have 5 minutes to break into 5 or 6 teams and select a concept you’ve been working on. Then you get 15 minutesto create a measurement charter,focusing on business objectives, measurement tasks, and success indicators.
  47. 47. MEASUREMENT CHARTERWhy we’re What is the objective?doing this:What we’re What are the tasks?doing:What success What is the goal?looks like:
  48. 48. Use the easel paper topost your measurement charter around the room. Each team gets 2 minutes to tell us how it went.
  49. 49. SUMMING UPMeasure what will teach you the most and help you make themost important decisions.Use bespoke, not off-the-shelf, metrics and measurementtools.Focus on ‘metrics’ that connect to value creation for thebusiness and drive brand growth.Don’t measure everything.
  50. 50. THAT WAS FUN.
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