But How Am I DoingCompared to Other Companies?Insights from the KISSmetrics customer baseCindy AlvarezWeb 2.0 Expo • March...
I don’t know if this is good.
“All you have to do is hit      this number...”                  Numbers are like          the latest diet craze          ...
Not everyone gets the same results from     12,000 calories per day
About the KISSmetrics dataObservations from 300+ web businesses  Social/community sites • Content businesses • Consumer  s...
General observationsA/B tests are like baseball• ...your batting percentage won’t ever approach 100%• Over half of KISSmet...
General observationsMultiple signup sources• Many customers have multiple signup flows (not just for  testing)• “Tradition...
General observationsYou will lose people whenyou introduce friction• One conversion % never tells the whole story• Does it...
By business model  Indirect               Daily DealMonetization                 SaaS /E-commerce               Subscription
Indirect MonetizationCustomer does not paySite types:Content and review sitesGames and community sites
What are they measuring: SignupHomepage > Facebook Connect > Signed UpHomepage > Viewed Signup > Submitted Signup FormSoci...
What are they measuring: SharingSignup > Shared / Liked / CommentedSignup > Started Configuration > Completed Configuratio...
Conversion = homepage -> signed up                 9.6%              median signup conversion                     13.2%   ...
Results may not be typical*• Self-selected audiences (professional, niche sites) have  higher conversion rates• Aspiration...
Questions you should ask: authentication• Am I losing customers before or after Facebook Connect?• Does offering multiple ...
Daily DealCustomer “pays” with their email address;might pay later for a dealSite types:Limited-time deal
What are they measuring: Subscriptions Homepage > Entered Email Address Individual Deal Page > Entered Email Address Socia...
What are they measuring: Deals Bought Email > Purchased Deal Homepage > Purchased Deal Individual Deal Page (via social) >...
Conversion = homepage > subscribed to list                7.6%            median subscription conversion            lowest...
Conversion = viewed deal > deal bought              17.6%           median purchase conversion                    18.4%   ...
Results may not be typical*• Self-selected audiences (professional, niche sites) have  higher conversion rates• A single “...
Questions you should ask: order of events• Is purchase completion rate affected by whether customers  come in via homepage...
E-CommerceCustomer pays, highly variable intentSite types:Electronic and tangible goods
What are they measuring: FindabilityHomepage > Browsed > Viewed Single ProductHomepage > Searched > Viewed Single ProductV...
What are they measuring: PurchasingViewed Single Product > Added to Cart > PurchasedViewed Single Product > Added to Cart ...
Conversion = purchase completed             5.9%          median purchase conversion                 9.3%          average...
Results may not be typical*• Don’t even try to compare general consumer commodity,  professional, and niche sites. Just do...
Questions you should ask: findability• Are customers who browse able to proceed and view an  individual product?• Are cust...
Questions you should ask: checkout steps• How does requiring customers to create an account affect  purchase completion?• ...
SaaS / SubscriptionCustomer may or may not payUsually enters under a free plan or limited free trialBilling information ma...
What are they measuring: SignupHomepage > Signed Up for FreeHomepage > Started Free TrialHomepage > Viewed Pricing > Signe...
What are they measuring: UpgradeSigned In > UpgradedViewed Upgrade Prompt > UpgradedSigned In > Viewed Pricing > UpgradedC...
Conversion = homepage -> signed up              2.3%         median signup conversion                   3.3%           ave...
Conversion = upgraded         2.3%     median subscription conversion     lowest 0.3% - highest 8.9%SaaS (37 sites, full m...
Results may not be typical*• B2C services have a higher signup rate than B2B services• B2B services have a higher upgrade ...
Questions you should ask: free-ness• How does ‘sign up for free’, ‘free trial’, or ‘buy now - free for  first X days’ affe...
Questions you should ask: signup source• How do signups via a third-party partner differ from signups  via your homepage?•...
Questions you should ask: onboarding• Do customers who viewed a product tour complete initial  onboarding/configuration mo...
Huge dropoffs    More likely toduring Facebook    buy a dealConnect process   than sign upCan’t compare     Least variable...
Thank You!      @cindyalvarezcalvarez@kissmetrics.com
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How am I doing compared to other companies?

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Web 2.0 Expo presentation: You know metrics are important. But running a data-driven company can feel like a black-box exercise. Are you measuring the same things that your competitors and peer companies are? How do your numbers stack up? Cindy Alvarez will share benchmark data and insights drawn from looking at anonymized data across the KISSmetrics customer base.

Published in: Technology

How am I doing compared to other companies?

  1. 1. But How Am I DoingCompared to Other Companies?Insights from the KISSmetrics customer baseCindy AlvarezWeb 2.0 Expo • March 29th, 2011
  2. 2. I don’t know if this is good.
  3. 3. “All you have to do is hit this number...” Numbers are like the latest diet craze “All Company X had to do was _____ and they were profitable!”
  4. 4. Not everyone gets the same results from 12,000 calories per day
  5. 5. About the KISSmetrics dataObservations from 300+ web businesses Social/community sites • Content businesses • Consumer services • SaaS / Subscription • E-commerce • Daily Deal • Apps / Games • Professional blogsData from October 2009 - February 2011Benchmark data from February 2011
  6. 6. General observationsA/B tests are like baseball• ...your batting percentage won’t ever approach 100%• Over half of KISSmetrics customers have A/B test reports Landing pages • # of steps in signup • Upgrade CTAs • Billing upfront vs. later • Design
  7. 7. General observationsMultiple signup sources• Many customers have multiple signup flows (not just for testing)• “Traditional” homepage signup vs. mobile signup• Facebook Connect / Twitter• Google App Marketplace / 3rd-party partner
  8. 8. General observationsYou will lose people whenyou introduce friction• One conversion % never tells the whole story• Does it make sense to put the friction before or after signup?• Target market and purpose matter
  9. 9. By business model Indirect Daily DealMonetization SaaS /E-commerce Subscription
  10. 10. Indirect MonetizationCustomer does not paySite types:Content and review sitesGames and community sites
  11. 11. What are they measuring: SignupHomepage > Facebook Connect > Signed UpHomepage > Viewed Signup > Submitted Signup FormSocial Share Landing Page > Social Connect > Signed Up
  12. 12. What are they measuring: SharingSignup > Shared / Liked / CommentedSignup > Started Configuration > Completed ConfigurationSignup > Contributed Content
  13. 13. Conversion = homepage -> signed up 9.6% median signup conversion 13.2% average signup conversion lowest 2.1% - highest 34.5% Indirect Monetization (21 sites, full month of Feb 2011)
  14. 14. Results may not be typical*• Self-selected audiences (professional, niche sites) have higher conversion rates• Aspirational services (finance, health) have higher conversion rates but lower retention rates• Where you put signup and how many steps are involved affects conversions
  15. 15. Questions you should ask: authentication• Am I losing customers before or after Facebook Connect?• Does offering multiple sign-in options help or hurt conversion rate?• Does asking for additional information post-Facebook Connect hurt conversion rates significantly?
  16. 16. Daily DealCustomer “pays” with their email address;might pay later for a dealSite types:Limited-time deal
  17. 17. What are they measuring: Subscriptions Homepage > Entered Email Address Individual Deal Page > Entered Email Address Social Share Landing Page > Social Connect
  18. 18. What are they measuring: Deals Bought Email > Purchased Deal Homepage > Purchased Deal Individual Deal Page (via social) > Purchased Deal
  19. 19. Conversion = homepage > subscribed to list 7.6% median subscription conversion lowest 3.3% - highest 17.3% Daily Deal (12 sites, full month of Feb 2011)
  20. 20. Conversion = viewed deal > deal bought 17.6% median purchase conversion 18.4% average purchase conversion lowest 5.3% - highest 40.5% Daily Deal (12 sites, full month of Feb 2011)
  21. 21. Results may not be typical*• Self-selected audiences (professional, niche sites) have higher conversion rates• A single “killer deal” can skew an entire month of data• Sites covering fewer metro areas have much lower conversion rates due to customer inability to follow through
  22. 22. Questions you should ask: order of events• Is purchase completion rate affected by whether customers come in via homepage or individual deal page?• Does showing previous deals increase subscription rate?• Can we increase email subscriptions by putting company focus (i.e. niche) first vs. leading with the big deal?• Does “Groupon clone” UX help or hurt conversions?
  23. 23. E-CommerceCustomer pays, highly variable intentSite types:Electronic and tangible goods
  24. 24. What are they measuring: FindabilityHomepage > Browsed > Viewed Single ProductHomepage > Searched > Viewed Single ProductViewed Single Product > Viewed Recommended Product
  25. 25. What are they measuring: PurchasingViewed Single Product > Added to Cart > PurchasedViewed Single Product > Added to Cart > Created Account >Purchased
  26. 26. Conversion = purchase completed 5.9% median purchase conversion 9.3% average purchase conversion lowest 0.2% - highest 32.1% E-commerce (23 sites, full month of Feb 2011)
  27. 27. Results may not be typical*• Don’t even try to compare general consumer commodity, professional, and niche sites. Just don’t.• Sites who use PayPal or another off-site merchant solution have lower purchase completion rates• Purchase price and purchase frequency have a huge impact on completion rates
  28. 28. Questions you should ask: findability• Are customers who browse able to proceed and view an individual product?• Are customers who search able to proceed and view an individual product?• Are “browsers” or “searchers” more likely to complete purchase?• Are customers who enter the site directly on an individual product page more likely to complete a purchase?
  29. 29. Questions you should ask: checkout steps• How does requiring customers to create an account affect purchase completion?• Does offering multiple payment methods help or hurt purchase completion?• If account creation is moved to post-checkout, will customers complete that (now optional) step?• Are customers who drop out of the checkout process returning to other pages on your site?
  30. 30. SaaS / SubscriptionCustomer may or may not payUsually enters under a free plan or limited free trialBilling information may be required upfront or laterSite types:Consumer servicesSmall business services
  31. 31. What are they measuring: SignupHomepage > Signed Up for FreeHomepage > Started Free TrialHomepage > Viewed Pricing > Signed Up
  32. 32. What are they measuring: UpgradeSigned In > UpgradedViewed Upgrade Prompt > UpgradedSigned In > Viewed Pricing > UpgradedClicked Email Link > Upgraded
  33. 33. Conversion = homepage -> signed up 2.3% median signup conversion 3.3% average signup conversion lowest 0.2% - highest 14.5% SaaS (37 sites, full month of Feb 2011)
  34. 34. Conversion = upgraded 2.3% median subscription conversion lowest 0.3% - highest 8.9%SaaS (37 sites, full month of Feb 2011)
  35. 35. Results may not be typical*• B2C services have a higher signup rate than B2B services• B2B services have a higher upgrade rate than B2C services• Aspirational services (finance, health) have higher signup conversion rates• No significant difference in signup rate between sites with or without a product tour
  36. 36. Questions you should ask: free-ness• How does ‘sign up for free’, ‘free trial’, or ‘buy now - free for first X days’ affect initial conversion? Eventual upgrade?• Will changing the length of my free trial increase upgrades?• How does requiring billing information at signup affect initial conversion?• How does showing multiple plans (vs. only showing ‘free’ initially) affect initial conversion? Upgrade rate?
  37. 37. Questions you should ask: signup source• How do signups via a third-party partner differ from signups via your homepage?• Does initial signup via a mobile device affect activation?• Does initial signup via Facebook affect activation?• Do customers acquired via a deal or coupon behave differently in terms of usage or upgrade rate?
  38. 38. Questions you should ask: onboarding• Do customers who viewed a product tour complete initial onboarding/configuration more quickly?• How many new customers complete the minimal required onboarding within a week?• Does including a tour alongside the signup button affect initial signup? Eventual upgrade?• How quickly are customers able to use the core features of your product?
  39. 39. Huge dropoffs More likely toduring Facebook buy a dealConnect process than sign upCan’t compare Least variable niche vs. signup commodity conversion %
  40. 40. Thank You! @cindyalvarezcalvarez@kissmetrics.com

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