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Eric Ries   Engagement Loops   The Levers And Metrics Of Engagement
 

Eric Ries Engagement Loops The Levers And Metrics Of Engagement

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Talk to be presented at Facebook Developer Garage SF

Talk to be presented at Facebook Developer Garage SF
http://www.facebook.com/event.php?eid=23439274966
Wednesday, March 25, 2009

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    Eric Ries   Engagement Loops   The Levers And Metrics Of Engagement Eric Ries Engagement Loops The Levers And Metrics Of Engagement Presentation Transcript

    • Engagement Loops The Levers and Metrics of Engagement Eric Ries Blog: startup lessons learned http://www.facebook.com/event.php?eid=23439274966
    • PHAME • Problem – customers don’t always stick • Hypothesis – we can do something about it • Action – by pulling the three levers of engagement • Metrics – and measuring the engagement factor • Experiments –find the points of highest leverage; iterate, iterate, iterate
    • Levers of engagement • Synthetic notifications • Organic notifications • Positioning (the battle for your mind)
    • Positioning > Organic > Synthetic • Warhammer Online vs. World of Warcraft
    • Engagement Loop • A customer decides to return to your product • They decide to take some action • This action may have side effects, such as sending out notifications • These side effects affect other customers, and some side effects are more effective than others. • Some affected customers decide to return to your product...
    • Engagement Loop example • synthetic message: quot;upload some photos!quot; Some percentage of customers click through. (C) • Some percentage of those actually upload. (D) • Those customers get prompted to tag their friends in their photos. Some percentage of them do (A), and these result in a certain number of emails sent (B). • Each friend that's tagged gets an email. Some percentage of them click through. (C) • Of those, some percentage are themselves convinced to upload and photos. (D)
    • Engagement Loop actionable metrics Messages Message Conversion to Sent Per Conversion Action Engagement synthetic message Receive Send Action Message Message organic messages
    • Engagement Factor • Engagement Factor (per event)  msgs sent/action * message conversion * conversion to action * messages sent * message conversion • Engagement Factor (per user)  engagement factor (event) * events/user
    • Integrating with the Viral Loop Engagement Engag Invite loop ement Viral Viral/Engagement Loop
    • SuperPoke Engagement Loop Invite Page Send invite Send Message New users notification/invite Viral loop Viral loop 2 Engagement Message Loop Receive Message
    • SuperPoke Engagement Loop Invite Page Send invite Send Message New users notification/invite Conversion to Action Viral loop Viral loop 2 Engagement Messages Message Loop Sent Per Engagement Message Conversion Receive Message
    • Friends for Sale Engagement Loop Invite Page Action • Buy Send Message • Do New users • Favor notification • Gift /invite Engagement Viral loop 1 Viral loop 2 Loop Receive Message
    • Friends for Sale Engagement Loop Messages Sent Per Invite Page Action Engagement • Buy Send Message • Do New users • Favor notification • Gift /invite Engagement Message Viral loop 1 Viral loop 2 Conversion Loop Conversion to Action Receive Message
    • Split-testing all the time • A/B testing is key to validating your hypotheses • Has to be simple enough for everyone in the company to use and understand it • Make creating a split-test no more than one line of code: if( setup_experiment(...) == quot;controlquot; ) { // do it the old way } else { // do it the new way }
    • The AAA’s of Metrics • Actionable • Accessible • Auditable
    • Measure the Macro • Always look at cohort-based metrics over time • Split-test the small, measure the large Control Group (A) Experiment (B) # Registered 1025 1099 Downloads 755 (73%) 733 (67%) Active days 0-1 600 (58%) 650 (59%) Activedays 1-3 500 (48%) 545 (49%) Active days 3-10 300 (29%) 330 (30%) Activedays 10-30 250 (24%) 290 (26%) Total Revenue $3210.50 $3450.10 RPU $3.13 $3.14
    • Thanks! • Blog: http://startuplessonslearned.blogspot.com/ • Web 2.0 Expo: April 1st, 2009 “The Lean Startup: a Disciplined Approach to Imagining, Designing, and Building New Products.”