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Designing & Optimizing the DNA of a Killer App Dan Olsen, CEO & Founder, YourVersion Startonomics  · San Francisco · Oct 2, 2008
Building the DNA of a Killer App with Metrics and Optimization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC
Adding Metrics and Optimization to your Product Process Copyright © 2008 Olsen Solutions LLC Plan Design Develop Business Objectives Product Objectives Prioritized Feature List Scoping Requirements & Design Code Test Launch Site Level Feature Level Optimize Metrics & User Feedback
Optimization through Iteration: Continuous Improvement Copyright © 2008 Olsen Solutions LLC Measure the metric Analyze the metric Identify top opportunities to improve Design & develop  the enhancement Launch the enhancement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Optimizing Business Value Creation with Metrics Copyright © 2008 Olsen Solutions LLC
Approaching Business as an Optimization Exercise ,[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC
[object Object],Define the Equation of your Business “Peeling the Onion” Unique Visitors   x  Ad Revenue per Visitor Impressions/Visitor   x  Effective CPM / 1000 Visits/Visitor  x  Pageviews/Visit  x  Impressions/PV New Visitors  + Returning Visitors Invited Visitors  + Uninvited Visitors # of Users Sending Invites  x  Invites Sent/User  x  Invite Click-through Rate Copyright © 2008 Olsen Solutions LLC
How to Track Your Metrics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC Date Unique Visitors Page views Ad Revenue New User Sign-ups … 4/24/08 10,100 29,600 25 490 4/27/08 10,500 27,100 24 480 …
Sample Signup Page Yield Data Copyright © 2008 Olsen Solutions LLC
Using Metrics to Optimize the Equation of your Business ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC Return Investment Return Investment Return Investment Metric A Good ROI Metric B Bad ROI Metric C Great ROI
Case Study: Optimizing Viral Loop Metrics ,[object Object],Copyright © 2008 Olsen Solutions LLC Active Users Prospective Users Invite Click Succeed Invite click-through rate Conversion rate Don’t Click Fail Invites per sender % of users sending invites ,[object Object],Users % of users who are active = 15% = 2.3 = 85% Registration Process
Maximum Upside Potential of a Metric Copyright © 2008 Olsen Solutions LLC 0 100% 0 100% 0 ? Registration conversion rate % of users sending invitations Avg # of invites sent per sender 2.3 85% 15% Max possible improvement 0.15 / 0.85 = 18% 0.85 / 0.15 = 570% ? / 2.3 = ?%
Copyright © 2008 Olsen Solutions LLC Doubling Number of Invitations Sent per Sender by Adding Address Book Importer
Optimizing Customer Value Creation with Metrics Copyright © 2008 Olsen Solutions LLC
The Fuzzy Math of Customer Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC
What is Your Value Proposition? ,[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC Benefit 1 Importance  to User Current User  Satisfaction Benefit 2 User Benefit Upside Potential Benefit 4 Benefit 5 Benefit 6 High High Med Low Low Low High – + Doesn’t matter Benefit 3 Low opportunity opportunity ? ?
Analyzing Product Ideas by ROI Copyright © 2008 Olsen Solutions LLC Investment (developer-weeks) Return (Value Created) Idea C Idea B Idea D Idea A Idea F 1 1 2 3 4 2 3 4 ?
Prioritizing Product Ideas by ROI Copyright © 2008 Olsen Solutions LLC Investment (developer-weeks) Return (Value Created) Idea B Idea C Idea A 1 1 2 3 4 2 3 4 5 6 7 8 5
The UI Design Iceberg Copyright © 2008 Olsen Solutions LLC Visual Design Interaction Design Information Architecture Conceptual Design Recommended reading: Jesse James Garrett’s “Elements of User Experience” chart, free at www.jjg.net What most people see and react to What good PMs and Designers think about
Approaching UI Design Analytically ,[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC ,[object Object],[object Object],[object Object],[object Object],[object Object]
Put Key Conversion Actions Above The Fold Copyright © 2008 Olsen Solutions LLC Landing Page A Landing Page B Key conversion action is  above  the fold Key conversion action is  below  the fold The Fold
The Fold Isn’t Binary Either Copyright © 2008 Olsen Solutions LLC 600 px 768 px 1024 px Data courtesy of ClickTale Free trial at www.clicktale.com % of Users The chrome steals about 170 pixels
Case Study: Account Signup Process Redesign Copyright © 2008 Olsen Solutions LLC % of Users Sign in / Registration Account Type Cash vs. Margin 5 Partner Pages 3 Partner Pages Biggest drop
Analysis of Sign In/Registration Flow Copyright © 2008 Olsen Solutions LLC Open Account Sign in Account Selection Register 56% 44% Forget Password Registration Process 45% drop off (20% of total) 36% overall drop off for this step 70% (32% of Total) 17% drop off (10% of total) 20% drop off (6% of total) 30% (14% of Total) 80% (26% of Total) 55% (24% of Total) 64% of Total Change Password 83% (46% of Total)
Redesigned User Flow Improved Registration Conversion Rate Copyright © 2008 Olsen Solutions LLC 37% improvement in conversion rate Released New Design
Summary: Building the DNA of a Killer App ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC
[email_address] Questions? www.yourversion.com
Appendix Copyright © 2008 Olsen Solutions LLC
Taking Optimization to The Next Level ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © 2008 Olsen Solutions LLC
Olsen’s Hierarchy of Web User Needs (adapted from Maslow) Copyright © 2008 Olsen Solutions LLC Is the site up when I want to use it? Is the site fast enough? Does the functionality work? How compelling and easy to use is the functionality? Customer’s Perspective What does it mean to us? Uptime Page Load Time Absence of Bugs Feature Set Usability & Design Decreasing Dissatisfaction Increasing Satisfaction
Kano Model: User Needs & Satisfaction Copyright © 2008 Olsen Solutions LLC User Satisfaction User Dissatisfaction Performance (more is better) Delighter (wow) Need not met Need fully met Must Have Needs & features migrate over time
Importance vs. Satisfaction  Ask Users to Rate for Each Feature Copyright © 2008 Olsen Solutions LLC Recommended reading: “What Customers Want” by Anthony Ulwick Bad Great

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Designing & Optimizing the DNA of a Killer App (Dan Olsen, Startonomics SF 2008)

  • 1. Designing & Optimizing the DNA of a Killer App Dan Olsen, CEO & Founder, YourVersion Startonomics · San Francisco · Oct 2, 2008
  • 2.
  • 3. Adding Metrics and Optimization to your Product Process Copyright © 2008 Olsen Solutions LLC Plan Design Develop Business Objectives Product Objectives Prioritized Feature List Scoping Requirements & Design Code Test Launch Site Level Feature Level Optimize Metrics & User Feedback
  • 4.
  • 5. Optimizing Business Value Creation with Metrics Copyright © 2008 Olsen Solutions LLC
  • 6.
  • 7.
  • 8.
  • 9. Sample Signup Page Yield Data Copyright © 2008 Olsen Solutions LLC
  • 10.
  • 11.
  • 12. Maximum Upside Potential of a Metric Copyright © 2008 Olsen Solutions LLC 0 100% 0 100% 0 ? Registration conversion rate % of users sending invitations Avg # of invites sent per sender 2.3 85% 15% Max possible improvement 0.15 / 0.85 = 18% 0.85 / 0.15 = 570% ? / 2.3 = ?%
  • 13. Copyright © 2008 Olsen Solutions LLC Doubling Number of Invitations Sent per Sender by Adding Address Book Importer
  • 14. Optimizing Customer Value Creation with Metrics Copyright © 2008 Olsen Solutions LLC
  • 15.
  • 16.
  • 17. Analyzing Product Ideas by ROI Copyright © 2008 Olsen Solutions LLC Investment (developer-weeks) Return (Value Created) Idea C Idea B Idea D Idea A Idea F 1 1 2 3 4 2 3 4 ?
  • 18. Prioritizing Product Ideas by ROI Copyright © 2008 Olsen Solutions LLC Investment (developer-weeks) Return (Value Created) Idea B Idea C Idea A 1 1 2 3 4 2 3 4 5 6 7 8 5
  • 19. The UI Design Iceberg Copyright © 2008 Olsen Solutions LLC Visual Design Interaction Design Information Architecture Conceptual Design Recommended reading: Jesse James Garrett’s “Elements of User Experience” chart, free at www.jjg.net What most people see and react to What good PMs and Designers think about
  • 20.
  • 21. Put Key Conversion Actions Above The Fold Copyright © 2008 Olsen Solutions LLC Landing Page A Landing Page B Key conversion action is above the fold Key conversion action is below the fold The Fold
  • 22. The Fold Isn’t Binary Either Copyright © 2008 Olsen Solutions LLC 600 px 768 px 1024 px Data courtesy of ClickTale Free trial at www.clicktale.com % of Users The chrome steals about 170 pixels
  • 23. Case Study: Account Signup Process Redesign Copyright © 2008 Olsen Solutions LLC % of Users Sign in / Registration Account Type Cash vs. Margin 5 Partner Pages 3 Partner Pages Biggest drop
  • 24. Analysis of Sign In/Registration Flow Copyright © 2008 Olsen Solutions LLC Open Account Sign in Account Selection Register 56% 44% Forget Password Registration Process 45% drop off (20% of total) 36% overall drop off for this step 70% (32% of Total) 17% drop off (10% of total) 20% drop off (6% of total) 30% (14% of Total) 80% (26% of Total) 55% (24% of Total) 64% of Total Change Password 83% (46% of Total)
  • 25. Redesigned User Flow Improved Registration Conversion Rate Copyright © 2008 Olsen Solutions LLC 37% improvement in conversion rate Released New Design
  • 26.
  • 28. Appendix Copyright © 2008 Olsen Solutions LLC
  • 29.
  • 30. Olsen’s Hierarchy of Web User Needs (adapted from Maslow) Copyright © 2008 Olsen Solutions LLC Is the site up when I want to use it? Is the site fast enough? Does the functionality work? How compelling and easy to use is the functionality? Customer’s Perspective What does it mean to us? Uptime Page Load Time Absence of Bugs Feature Set Usability & Design Decreasing Dissatisfaction Increasing Satisfaction
  • 31. Kano Model: User Needs & Satisfaction Copyright © 2008 Olsen Solutions LLC User Satisfaction User Dissatisfaction Performance (more is better) Delighter (wow) Need not met Need fully met Must Have Needs & features migrate over time
  • 32. Importance vs. Satisfaction Ask Users to Rate for Each Feature Copyright © 2008 Olsen Solutions LLC Recommended reading: “What Customers Want” by Anthony Ulwick Bad Great