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Pirate Metrics - Manly Entrepreneurs
The document outlines the customer lifecycle and conversion metrics for a website, emphasizing the importance of various stages: acquisition, activation, retention, referral, and revenue. It discusses specific metrics and estimated values at each stage, including user engagement and conversion rates, to guide entrepreneurs in measuring performance and optimizing their marketing strategies. The text also highlights effective marketing channels and stresses the need for testing and iteration in landing page designs.
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Pirate Metrics - Manly Entrepreneurs
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- 8. PICK THE RIGHTMETRICS 8
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- 11. POPULAR STARTUPS YOUSAID? 11
- 12. IF A METRICWON’T CHANGE THE WAY YOU BEHAVE THEN IT’S A BAD METRIC Ben Yoskovitz @byosko, author lean Analytics 12
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- 15. Customer Lifecycle: 5Steps to Success ‣ Acquisition: users come to the site from various channels ‣ Activation: users enjoy 1st visit: "happy" user experience ‣ Retention: users come back, visit site multiple times ‣ Referral: users like product enough to refer others ‣ Revenue: users conduct some monetization behavior AARRR!
- 16. Customer Lifecycle /Conversion Behavior Website.com Emails & widgets Campaigns, Contests Biz DevAds, Lead Gen, Subscriptions, etc Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts Blogs, Content System Events & Time-based Features
- 17. Example Conversion Metrics (note:*not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
- 18. I KNOW THAT HALFMY AD DOLLARS ARE WASTED, I JUST DON’T KNOW WHICH HALF John Wanamaker 18
- 19. Customer Lifecycle /Conversion Behavior Website.com Marketing Channels: • largest-volume (#) • lowest-cost ($) • best-performing (%) 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
- 20. Example Conversion Metrics (note:*not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
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- 22. Customer Lifecycle /Conversion Behavior Website.com Activation Criteria: • 10-30+ seconds • 2-3+ page views • 3-5+ clicks • 1 key feature usage Do LOTS of landing page tests & A/B tests - just make lots of dumb guesses & iterate QUICK Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
- 23. Example Conversion Metrics (note:*not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
- 24. PRACTICAL EXAMPLE Sells package $400/mth Maxspend per cust. $ 500 Assume: Sydney accountant (9,900/Mo) 3% of Search clicks ads 3% x 9,900 searches = 297 Cost per $3,53 x 297 = $1,048 3% of clicks generate enquiry 3% x 297 searches = 9 Cost per lead =$116 20% of enquiry Convert 20% x 9 leads = 2 Cost per cust =$524 24 Search Click Enquire Convert ACTIVATION
- 25. PRACTICAL EXAMPLE Sells package $400/mth Maxspend per cust. $ 500 Assume: Sydney accountant (9,900/Mo) 3% of Search clicks ads 3% x 9,900 searches = 297 Cost per $3,53 x 297 = $1,048 5% of clicks generate enquiry 5% x 297 searches = 15 Cost per lead =$70 20% of enquiry Convert 20% x 15 leads = 3 Cost per cust =$349 25 Search Click Enquire Convert ACTIVATION
- 26. Customer Lifecycle /Conversion Behavior Website.com Automated emails are simple & easy retention feature • lifecycle emails @ +3, +7, +30d • status emails weekly/monthly • event-based emails as they occur Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts Blogs, Content System Events & Time-based Features
- 27. Example Conversion Metrics (note:*not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
- 28. Customer Lifecycle /Conversion Behavior Website.com Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10 Homepage / Landing Page Product Features Emails & widgets Campaigns, Contests 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts Blogs, Content System Events & Time-based Features
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- 30. Example Conversion Metrics (note:*not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
- 31. UNDERSTANDING THE DATA- CONVERSION 31 http://www.youtube.com/watch?v=3Sk7cOqB9Dk
- 32. Customer Lifecycle /Conversion Behavior Website.com Biz DevAds, Lead Gen, Subscriptions, etc Homepage / Landing Page Product Features This is the part *you* have to figure out… I don’t know jack about your business Emails & widgets Campaigns, Contests 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts Blogs, Content System Events & Time-based Features
- 33. Example Conversion Metrics (note:*not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
- 34. Quantitative & ComparativeMeasurement ‣ Conversion Criteria: ‣ best-performing (%) channels / campaigns / copy ‣ largest-volume (#) channels / campaigns / copy ‣ lowest-cost ($) channels / campaigns / copy
- 35. Quantitative & ComparativeMeasurement ‣ Conversion Criteria: ‣ best-performing (%) channels / campaigns / copy ‣ largest-volume (#) channels / campaigns / copy ‣ lowest-cost ($) channels / campaigns / copy ‣ Measurement Components: ‣ Audience Segment (young women, regional metro, older singles) ‣ Channel Source (social network, SEM, organic, PR, etc) ‣ Campaign Theme / Brand Promise (“find a job”, “learn to cook”) ‣ Landing Page & CTA ‣ Copy & Graphics
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