How to Build a Data-Driven Company

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Originally presented at SearchLove Boston on Monday, April 7, 2014.

Description: You have more data today than ever before, but creating insights and driving action can still be far from easy. Josh will demonstrate where traditional analytics processes fall down and how to find or create the right data to drive your company towards better insights and outcomes. Get ready to learn about both short-term and strategic steps to help your company make better decisions and be more data-driven.

Published in: Marketing, Technology, Business

How to Build a Data-Driven Company

  1. 1. How to Build a Data-Driven Company Josh Braaten CollegisEducation.com @JLBraaten
  2. 2. Josh Braaten • Director of Inbound Marketing, Collegis Education • Vice President of Minnesota Search Engine Marketing Association • Co-Founder of Glass en Masse
  3. 3. 1. Internet Math is Business Math
  4. 4. Data-driven companies are… Three times as likely to execute decisions as intended Source: Forbes,The Big Data Boom: Is Your Company Ready? October, 2013
  5. 5. Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Revenue – Expenses = Profit Internet Math is Business Math
  6. 6. Sent Emails * Open Rate = Opens * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Revenue – Expenses = Profit Internet Math is Business Math
  7. 7. # of Tweets * Avg Retweet Rate = Twitter Impressions * Twitter Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Revenue – Expenses = Profit Internet Math is Business Math
  8. 8. Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Average Revenue per Quarter * Number of Quarters – Quarterly Expenses = Profit Internet Math is Business Math
  9. 9. 2. If You Don’t Have a Metric, Make One
  10. 10. Data-driven companies are… Twice as likely to use data very frequently when making decisions Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013
  11. 11. Netflix and User Preferences
  12. 12. 3. Tie Issues to Revenue
  13. 13. Without a System, All Issues Look the Same Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 ue 10 Issue #1 e Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 #8 #9 Issue #10 Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue #6Issue Issue #4 Issue #1 #7 Issue #3 Issue #9 Issue #6 Issue #7 Issue #3 Issue #5 Issue #7 Iss # Issu #5 #3 Issue #7 Iss # Issue #7 Issue #2 Issue #10 Issue #4 Issue #1 Issue #4
  14. 14. Creating a Metric Was Helpful Issues Reported by Students Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
  15. 15. We Can Also Tie Issues to Lost Customers Issues Reported by Students with Drops Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
  16. 16. Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11 Opportunities to Improve Look Different Issues Reported by Students with Drops Public Enemy #1
  17. 17. New Priorities Emerge Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
  18. 18. Walmart, Beer and Pop Tarts Source: The New York Times, What Wal-Mart Knows About Customers’s Habits November, 2004 “Start predicting what’s going to happen, instead of waiting for it to happen.” -Linda Dillman, Walmart, 2004
  19. 19. 4. Store and Structure Your Data
  20. 20. Target Knows Kids Better Than Parents Do Source: Forbes, How Target Figured Out a Teen Girl Was Pregnant Before Her Father Did February, 2012
  21. 21. Guest ID # Credit Card Name Email 1000000001 xxxx-xxxx-xxxx-4243 Josh Braaten jlbraaten@gmail.com 1000000002 xxxx-xxxx-xxxx-3053 John Doe johndoe@gmail.com 1000000003 xxxx-xxxx-xxxx-1836 John Smith john@aol.com Tying Everything Together
  22. 22. Getting Systems in Order is Both Easy and Hard Unique Customer ID
  23. 23. Jawbone Stores 60 Years’ Worth of Sleep Data Every Night Source: Fast Company, Jawbone Tracked Hundreds of Thousands of Up Users to Find the Most Sleep-Deprived States December, 2013
  24. 24. Without It, Everything Looks Like This Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 ue 10 Issue #1 e Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 #8 #9 Issue #10 Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue #6Issue Issue #4 Issue #1 #7 Issue #3 Issue #9 Issue #6 Issue #7 Issue #3 Issue #5 Issue #7 Iss # Issu #5 #3 Issue #7 Iss # Issue #7 Issue #2 Issue #10 Issue #4 Issue #1 Issue #4
  25. 25. Or At Best This Issues Reported by Students Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
  26. 26. But Never This Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
  27. 27. 5. Analytics, Insights and Iteration
  28. 28. Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6 Public Enemy #1
  29. 29. Continuous Improvement and Iteration Source: Wired, Mark Zuckerberg’s Letter to Investors: “The Hacker Way” February, 2012 “The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.” - Mark Zuckerberg, Facebook, 2012
  30. 30. An Analytics Swiss Army Knife Provides Insights
  31. 31. An Analytics Swiss Army Knife Provides Insights Segment Traffic CR(%) Goal Completions Products 80,000 4% 3,200 Locations 50,000 6% 3,000 Home 225,000 1% 2,250 New Customers 10,000 10% 1,000 Service 15,000 5% 750
  32. 32. An Analytics Swiss Army Knife Provides Insights
  33. 33. An Analytics Swiss Army Knife Provides Insights
  34. 34. An Analytics Swiss Army Knife Provides Insights
  35. 35. An Analytics Swiss Army Knife Provides Insights
  36. 36. An Analytics Swiss Army Knife Provides Insights
  37. 37. An Analytics Swiss Army Knife Provides Insights
  38. 38. An Analytics Swiss Army Knife Provides Insights
  39. 39. An Analytics Swiss Army Knife Provides Insights
  40. 40. An Analytics Swiss Army Knife Provides Insights
  41. 41. Five times as likely to make decisions much faster than their market peers Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013 Data-driven companies are…
  42. 42. 6. Test, Test, Test
  43. 43. Controlled Testing Verifies Hypotheses and Understanding
  44. 44. 7. Use Data to Empower Action
  45. 45. Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6 Public Enemy #1
  46. 46. Q1 Q2 Q3 Q4 No Social Media 72% 70% 73% 72% Facebook Users +26% +27% +15% +14% Community Users +24% +21% +5% +14% Retention and Social Media Participation
  47. 47. Source: Harvard Business Review, When to Act on Correlation, and When Not To March, 2014 Correlation and Action
  48. 48. Help Everyone Have a Say in KPIs
  49. 49. Help Everyone Have a Say in KPIs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Original V1: Blue V2: Olive Satisfied Neutral Dissatisfied Qualaroo NPS Ratings by Background Color
  50. 50. 8. Hire Someone Good at Math
  51. 51. If You’ve Made It This Far, Hire For Math
  52. 52. 9. Don’t Forget to Turn Data Collection Into Marketing and More
  53. 53. 10. Give People Data and They’ll Grow to Depend on It
  54. 54. Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013 Data-driven companies are… Twice as likely to be in the top quartile of financial performance within their industries
  55. 55. When More Companies Can See Where Issues Affect Revenue Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Average Revenue per Quarter * Number of Quarters – Quarterly Expenses = Profit
  56. 56. Where Issues Seem Less Like This Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 ue 10 Issue #1 e Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 #8 #9 Issue #10 Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue #6Issue Issue #4 Issue #1 #7 Issue #3 Issue #9 Issue #6 Issue #7 Issue #3 Issue #5 Issue #7 Iss # Issu #5 #3 Issue #7 Iss # Issue #7 Issue #2 Issue #10 Issue #4 Issue #1 Issue #4
  57. 57. Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6 And More Like This Issues Reported by Students with Drops
  58. 58. When Ideas Are Vetted With These
  59. 59. And Tested With This
  60. 60. To Produce Wins Like This
  61. 61. v To Produce Wins Like this
  62. 62. Thank You

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