A webinar hosted by Smart Insights: Break down the jargon, and understand the concepts needed for a solid data driven approach for your marketing. Learn how to build a KPI dashboard with the right metrics, with insights from key industry influencers, for you to find nuggets of insights that drive your business in a profitable direction. To hear the accompanying audio: https://www.brighttalk.com/webcast/8551/220651

1. Digital Marketing Priorities 2016
Brought to you by:
Digital Marketing: Key Metrics
Jill Quick
Data Driven Digital Marketing
Consultant and Trainer
Break down the jargon, and understand the concepts needed for a solid
data driven approach for your marketing. Learn how to build a KPI
dashboard with the right metrics, with insights from key industry
influencers, for you to find nuggets of insights that drive your business in
a profitable direction.

3. Recommended resources
for Expert members

4. Coming soon…
Google Analytics API – Google Sheets
dashboard for Expert members

6. 6
 We need to get better at this data-drive-metrics-malarkey
 A framework for your digital metric planning:RACE
 What key metrics should you use?
 The good, bad, lagging, leading and casual metrics
 Why is this hard work?
 Where to go from here, next steps and tips to create your
KPI dashboard
Agenda

7. 7
About Me
 Digital Marketing Consultant and Trainer
 Data Driven Approach supporting established brands, start
ups and small businesses to make the most out of digital
 Lead Instructor at General Assembly
 Author for Smart Insights
 Loves finding that ‘aha moment’ that drives growth
@jillquick
https://uk.linkedin.com/in/jillquick01
jill@quick-marketing.co.uk
www.quick-marketing.co.uk

8. 8
You are not the colouring in department
 The ability to track ROI gives marketing respect
 Finding insights backed up by data gives you a
competitive edge

9. 9
Stages of Accountability
Denial
marketing is
an art not a
science
Fear
what if my
marketing
doesn't impact
revenue?
Self promotion
hey come see all
my charts
Confusion
i know i should
measure, i just
don't know how
Accountability
revenue starts
with
marketing

10. 10
What stage are you?
Where would you say you are in terms of
your stage of marketing accountability?
1 – Denial
2 – Fear
3 – Confusion
4 – Self-Promotion
5 – Full Accountability
NOTE: There is one answer only per vote

11. 11
The Lingo
 A metric is a number that gives you information about an
aspect if your business.
 Dimensions are attributes that give context to what your
metrics are measuring. More formally: dimensions are
qualitative characteristics, identifying the who, where, and
when of a particular metric
Dimensions
Metrics

12. 12
What is a KPI?
A KPI is a “promoted metrics”
unique to your business

13. 13
What are you trying to achieve?
CurationMe Content SaaS Business
Business Objectives
Sell more online
subscriptions
Keep more
customers
Up sell basic
users to next
package
Goal More Sales
Reduce churn
by 20%
Upgrade
packages
KPI MMR Churn Rate
Purchased
Upgrades
Best Case
Worst Case
£20,000
£10,000
25%
15%
50 accounts p/m
20 accounts p/m

14. 14
Micro Goals
 Share content via social media
 Subscribe to newsletter
 Watch video
 Play game
 Use calculators
 Livechat
 Customise a product
 Add product to cart
 View special content
 Store location
 Property search

15. 15
Are you tracking everything?
RACE Macro & Micro Goals Tracking/Goal Type Tracking
Reach Scroll Read Event Tracking
Bounce Rate Dimension in GA
Act Read Blog Dimensions in GA
Watch Video Event Tracking
Live Chat Event Tracking
Social Share Event Tracking
Convert Create Account Destination URL Goal
Activate Account Destination URL Goal
Free Trial Destination URL Goal
Engage Buy Subscriptions Destination URL Goal
Repeat Purchase Destination URL Goal
Upgrade Package Event Tracking

16. 16
What do these guys say?

17. 17
If you could take 5 to the board?
 Customer Lifetime Value
 Cost of Customer Acquisition
 Churn/Retention Rate by Cohort
 Growth Rate (of customers and revenue)
 Traffic & Customer Acquisition by Channel
Rand Fishkin
Wizard of Moz

18. 18
Metric Overview
CUSTOMER LIFETIME
In marketing, customer lifetime value (CLV or often CLTV),
lifetime customer value (LCV), or life-time value (LTV) is a
prediction of the net profit attributed to the entire future
relationship with a customer.

19. 19
Metric Overview
LIFETIME VALUE (LTV)
Roughly defined, LTV is the projected revenue that a
customer will generate during their lifetime. This is just
looking at Simple LTV
Annual profit contribution per customer x average number
of years that they remain a customer - the cost of customer
acquisition.

20. 20
Metric Overview
EXAMPLE
Average subscriber is 14 months
based on your churn rate
CPA is £50
They spend £14.96
Your lifetime value is
14.96 * 14 = £209.44 - cost to acquire £50 = £159.44

21. 21
If you could take 5 to the board?
 Commitment / Brand Love
 Share of wallet
 Channel preference
 Spend/Frequency
 Coverage (what proportion of spend the top x% of
customers account for)
Edwina Dunn
CEO Startcount

22. 22
Metric Overview
How do you calculate Purchase Frequency?
You can work out your purchase frequency by using this simple
calculation. You can define your time periods to one that best fits with
your business model, here I have just gone ahead with a 1 year period.
This metric is going to tell you the average number of times
that your customers are making a purchase with you over
your chosen time period.
Your Total Orders (365 days) / Unique customers (365 days) = Purchase
Frequency
If you want to understand the time between your customers purchased use this
formula to see how long a typical customer takes before making a repeat
purchase.
365 days / purchase frequency = time between purchases

23. 23
If you could take 5 to the board?
 Sales Made
 Cost of Acquisition
 Monthly Recurring Revenue
 Church Value in £ and # of clients
 Sales Pipeline / Forecast with Dates
Tink Taylor
Founder Dot Mailer

24. 24
Metric Overview
How quickly are your customers leaving you. It is cheaper and easier to
retain customers than it is to get new ones. Monitor churn to understand
how good you are at keeping your customers.
Customers Lost during x period/starting customers = churn rate %
CHURN

25. 25
If you could take 5 to the board?
 Increased Revenue
 Lowered Costs
 Improved Customer Satisfaction (NPS)
 Increased Capabilities
Jim Sterne
Founder eMetrics Summit &
Digital Analytics Association

26. 26
Metric Overview
The NPS system gives you a percentage, based on the
classification that respondents fall into—from Detractors
to Promoters.
NET PROMOTOR SCORE
https://www.netpromoter.com/

27. 27
Metric Overview
NET PROMOTOR SCORE
So to calculate the percentage, follow these steps:
Enter all of the survey responses into an Excel spreadsheet.
Now, break down the responses by Detractors, Passives, and Promoters.
Add up the total responses from each group.
To get the percentage, take the group total and divide it by the total number of
survey responses.
Now, subtract the percentage total of Detractors from the percentage total of
Promoters—this is your NPS score.

28. 28
Metric Overview
NET PROMOTOR SCORE
(Number of Promoters — Number of Detractors) /
(Number of Respondents) x 100
Example: If you received 100 responses to your survey:
10 responses were in the 0–6 range (Detractors)
20 responses were in the 7–8 range (Passives)
70 responses were in the 9–10 range (Promoters)
When you calculate the percentages for each group, you get
10%, 20%, and 70% respectively.
To finish up, subtract 10% (Detractors) from 70%
(Promoters),
www.npscalculator.com/en

29. 29
If you could take 5 to the board?
 Ratio of Daily Average Users: Monthly Average
Users (DAU:MAU)
 CPA: Cost Per Acquisition
 CLT: Customer Lifetime Value
 Customer Referral Rate
 Customer Churn
Matthew Eisner
Global Marketing Manager at
Startup Bootcamp

30. 30
Metric Overview
VIRAL GROWTH FACTOR: K
How likely are your users to send on to a
friend/ referrals ?
I = number of invites sent by each
customer
C = the percent conversion of each invite
K = I*C

31. 31
Metric Overview
WHAT IS VIRAL?
Situation 1
1250 users send 2000
invites (2000/1250) = 1.6
580 convert as customers
(580/2000) = 0.29
1.6*0.29 = 0.464
Situation 2
1250 users send 2000
invites (2000/1250) = 1.6
1250 convert as customers
(580/2000) = 0.625
1.6*0.625 = 1

32. 32
Good and Bad Metrics
VANITY METRICS
Feel good measurements to justify marketing spend
 Facebook likes
 Number of names gathered at a trade show
When metrics go wrong…

33. 33
Good and Bad Metrics
FOCUS ON
QUANTITY, NOT
QUALITY
We have a database of 50,000 people
We created 1 million leads, yadayadayada…..
When metrics go wrong…

34. 34
Good and Bad Metrics
ACTIVITY, NOT
RESULTS
Activity is easy to see and
measure.
Your boss may see this as just
costs going out of the door.
When metrics go wrong…
FINANCE
METRICS
Revenue metrics
Incremental contributions
of individual marketing
programmes.

35. 35
Good and Bad Metrics
LAGGING VS
LEADING
Lagging metrics: Historical, shows you how you are doing, its like reporting
the news, its happened. E.g. sales this month
Leading metrics: Forward looking, number today that predicts tomorrow.
EG pipeline
When metrics go right…

36. 36
Correlated and Casual Metrics
Correlated: Two Variables that
are related - but may be
dependent on something else.
E.g. Ice cream and drowning
Causal: An independent
variable that directly impacts a
dependent one.
E.g. summertime and drowning

37. 37
Find a leading, casual metric…
…Find Your Superpower

38. 38
Paired Metrics
Consider matching your KPI with a paired metric
Eg if your KPI is to shorten time on customer enquiries you
should pair this with customer satisfaction.

39. 39
Remember…
If it won’t change how
you behave,
it’s a bad metric.

40. 40
What To Do
FILL OUT RACE FOR MACRO AND MICRO GOALS

41. 41
What To Do
WHERE ARE YOU GETTING YOUR DATA FROM?
ARE YOU TRACKING THE METRICS YOU NEED TO DO THE MATH?

42. 42
What To Do
WHO ARE YOU REPORTING TO, WHAT DO THEY WANT TO SEE?
Your VP of marketing may
want…
Reach = Events per session
Act = Number of Free Trials
Convert = Return on Investment
Engage = Churn Rate
Your CFO may want…
Reach = Cost per Visitor
Act = Cost per Acquisition
Convert = Return on Investment
Engage = Monthly Recurring
Revenue

43. 43
What To Do…
GET FAMILIAR WITH METRICS AND HOW TO WORK THEM OUT

44. Your questions please?
All members can also ask questions through our ‘Answers’ community