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Digital Marketing: Key Metrics with Jill Quick & Dave Chaffey

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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

Published in: Marketing
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Digital Marketing: Key Metrics with Jill Quick & Dave Chaffey

  1. 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.
  2. 2. Recommended resources for Expert members
  3. 3. Coming soon… Google Analytics API – Google Sheets dashboard for Expert members
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. 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
  10. 10. 12 What is a KPI? A KPI is a “promoted metrics” unique to your business
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 16 What do these guys say?
  15. 15. 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
  16. 16. 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.
  17. 17. 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.
  18. 18. 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
  19. 19. 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
  20. 20. 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
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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/
  25. 25. 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.
  26. 26. 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
  27. 27. 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
  28. 28. 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
  29. 29. 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
  30. 30. 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…
  31. 31. 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…
  32. 32. 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.
  33. 33. 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…
  34. 34. 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
  35. 35. 37 Find a leading, casual metric… …Find Your Superpower
  36. 36. 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.
  37. 37. 39 Remember… If it won’t change how you behave, it’s a bad metric.
  38. 38. 40 What To Do FILL OUT RACE FOR MACRO AND MICRO GOALS
  39. 39. 41 What To Do WHERE ARE YOU GETTING YOUR DATA FROM? ARE YOU TRACKING THE METRICS YOU NEED TO DO THE MATH?
  40. 40. 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
  41. 41. 43 What To Do… GET FAMILIAR WITH METRICS AND HOW TO WORK THEM OUT
  42. 42. Your questions please? All members can also ask questions through our ‘Answers’ community

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