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Become a Web 2.0 Jedi: How to Use the Force of Product & Marketing Metrics to Optimize Your Business Web 2.0 Expo Apr 3, 2...
Startup Metrics for Pirates: AARRR!  Web 2.0 Expo SF April 2009 Dave McClure, Founders Fund http://www.foundersfund.com/  ...
Startup Metrics: The Basics <ul><li>Measure Stuff.  Keep It Simple. </li></ul><ul><li>5 Steps: Startup Metrics for Pirates...
Web 2.0: Hell  Yes , Good Times. <ul><li># Users, Bandwidth =  Bigger. </li></ul><ul><li>Lower Startup Costs =  Badder. </...
The Startup Metrics Religion <ul><li>Progress ≠ Features ( Less   =  More ) </li></ul><ul><li>Focus on  User Experience </...
Optimize  4  Happiness  (both User + Business) <ul><li>Define  States of User + Business Value </li></ul><ul><li>Prioritiz...
Discover Meaning Keywords, Images, Call-to-Action <ul><li>Top 10 - 100 words </li></ul><ul><ul><li>Your Brand / Products <...
Startup Metrics for Pirates:  AARRR! <ul><li>A cquisition:   users come to site from various  channels </li></ul><ul><li>A...
AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION...
Q: What’s My Business Model? <ul><li>Can be one of the following: </li></ul><ul><ul><li>Get Users  (= Acquisition, Referra...
Just Gimme the GOOD Metrics. Users, Pages, Clicks, Emails, $$$...? <ul><li>Q: Which of these is best?  How do you know? </...
3 Core Models: biz model, conversion dashboard, mktg channels <ul><ul><li>Define  1-Page Biz Model : customer segments + d...
Role: Founder/CEO <ul><li>Q: Which Metrics? Why? </li></ul><ul><li>A: Focus on  Critical Few Actionable  Metrics </li></ul...
The 1-Page Business Model (Users + Conversions + Priorities) <ul><li>Q1: What  types  of people use your website?  </li></...
TeachStreet Metrics v1: Eye Chart Madness
TeachStreet 1-Page Business Model: Teachers & Students Teachers Students Activation <ul><li>Claim Profile </li></ul><ul><l...
TeachStreet: 45-day Claim Rates ( Seattle ,  Portland )
Role: Product / Engineering <ul><li>Q: What Features to Build?  Why?  When are you “Done”? </li></ul><ul><li>A:  Easy-to-F...
Example Conversion Dashboard (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv.  % Est. Value (*no...
Role: Marketing / Sales <ul><li>Q: What channels?  Which users?  Why? </li></ul><ul><li>A: High  Volume  (#), Low  Cost  (...
Example Marketing Channels <ul><li>PR </li></ul><ul><li>Contest </li></ul><ul><li>Biz Dev </li></ul><ul><li>Direct Marketi...
M AARRR keting Plan <ul><li>Marketing Plan = Target Customer Acquisition Channels </li></ul><ul><ul><li>3 Important Factor...
One Step at a Time. <ul><ul><li>Make a Good Product : Activation & Retention </li></ul></ul><ul><ul><li>Market the Product...
Summary <ul><li>Measure Stuff.  Keep It Simple. </li></ul><ul><li>5 Steps: Startup Metrics for Pirates ( AARRR !) </li></u...
Links & Resources <ul><li>Additional References: </li></ul><ul><li>“ Influence: The Psychology of Persuasion ”, Robert Cia...
Dan Olsen CEO, YourVersion Web 2.0 Expo Apr 3, 2009 How to Use the Force of Metrics to Optimize your Web 2.0 Product
The Force of Metrics is Real The Force of Metrics? Really?
Approaching Your Product and Business as an Optimization Exercise <ul><li>Given reality as it exists today, </li></ul><ul>...
<ul><li>Profit =  Revenue  - Cost </li></ul>Define the Equation of your Business “Peeling the Onion” Unique Visitors   x  ...
<ul><li>Need third-party analytic tools PLUS home-grown metrics </li></ul><ul><li>Track each metric as daily time series <...
Analyzing the Value of Product Ideas   Importance and Satisfaction <ul><li>To offer a good customer value proposition: Mee...
Prioritizing Product Ideas by ROI Copyright © 2009 Olsen Solutions LLC Investment (developer-weeks) Return (Value Created)...
Marrying UI Design with Metrics <ul><li>Think of “Ease of use” as distinct from the functionality </li></ul><ul><li>User I...
Improving Signup Page Conversion Copyright © 2009 Olsen Solutions LLC
Improving Sign In/Registration Flow Copyright © 2009 Olsen Solutions LLC Open Account Sign in Account Selection Register 5...
Redesigned User Flow Improved Registration Conversion Rate Copyright © 2009 Olsen Solutions LLC 37% improvement in convers...
Optimization through Iteration: Continuous Improvement Copyright © 2009 Olsen Solutions LLC Measure the metric Analyze the...
Summary: Using the Force of Metrics <ul><li>Define what success means </li></ul><ul><ul><li>Equation of your business </li...
[email_address] @danolsen www.yourversion.com May the Force of Metrics be with you!
Dogster, Inc. Case Study Ted Rheingold blog.dogster.com /  @tedr   How actionable metrics informed us we were chasing our ...
 
Dogster, Inc. <ul><li>Sites & Services </li></ul><ul><ul><li>Dogster.com, Catster.com, Snuzzy.com </li></ul></ul><ul><ul><...
Marketing Initiative Feb ‘07 Goal: 2,000 New Registrants a Day <ul><li>Marketed sites via AdSense and BlogAds </li></ul><u...
LANDING PAGE Welcome
Landing Page Cute Overload
LANDING PAGE Daily Candy
LADING PAGE Dog Info
REGISTRATION PAGE -Activate
Quantitative Success Doesn’t  Mean Qualitative Success <ul><li>We hit key result of 2k registrants a day </li></ul><ul><li...
Actionable Results <ul><li>Within 3 months we halted all ad spending. </li></ul><ul><li>We were sitting on a treasure trov...
HOMEPAGE - Current
CRAZY EGG Searchers
Dogster Search Traffic
Ted Rheingold   Top Dog, Dogster, Inc. blog.dogster.com twitter: @tedr Web2Expo - 2009
Questions?  #metrics @davemcclure  @danolsen  @tedr
Appendix
Startup Metrics Activation
Website.com <ul><li>Activation Criteria: </li></ul><ul><li>10-30+ seconds </li></ul><ul><li>2-3+ page views </li></ul><ul>...
Activation What do users do on their first visit? <ul><li>Example Activation Goals </li></ul><ul><ul><li>Click on somethin...
Activation What do users do on their first visit? <ul><li>Key Metrics to Track </li></ul><ul><ul><li>Pages per visit </li>...
Activation <ul><li>Tools </li></ul><ul><ul><li>Crazy Egg (Visual Click Mapping) </li></ul></ul><ul><ul><li>http:// crazyeg...
Startup Metrics Retention
Website.com <ul><li>Automated emails: </li></ul><ul><li>lifecycle emails @ +3, +7, +30d  </li></ul><ul><li>status / “best ...
<ul><li>Cohort Analysis: </li></ul><ul><li>Distrib of Visits over Time </li></ul><ul><li>Rate of Decay </li></ul><ul><li>E...
<ul><li>Example Retention Goals </li></ul><ul><ul><li>1 - 3+ visits per month </li></ul></ul><ul><ul><li>20% open rate / 2...
Retention How do users come back? How often? <ul><li>Key Metrics to Track </li></ul><ul><ul><li>Source </li></ul></ul><ul>...
Retention <ul><li>Tools </li></ul><ul><ul><li>Campaign Monitor / MailChimp (email newsletter software) </li></ul></ul><ul>...
Startup Metrics Acquisition
Website.com <ul><li>Marketing Channels: </li></ul><ul><ul><li>largest-volume (#)  </li></ul></ul><ul><ul><li>lowest-cost (...
Acquisition Where are users coming from? <ul><li>Acquisition Methods </li></ul><ul><li>SEO / SEM </li></ul><ul><li>Blogs <...
Acquisition Keyword Vocabulary <ul><li>Top 10 - 100 words </li></ul><ul><ul><li>Your Brand / Products </li></ul></ul><ul><...
Acquisition Where are users coming from? <ul><li>Key Metrics to Track </li></ul><ul><ul><li>Quantity (#) </li></ul></ul><u...
Acquisition <ul><li>Tools </li></ul><ul><ul><li>Google Analytics (web analytics) </li></ul></ul><ul><ul><li>google.com/ana...
Startup Metrics Referral
Website.com Focus on driving referrals * after * users have a “ happy ” experience; avg score >=  8 out of 10 Referral Acq...
Referral How do users refer others? <ul><li>Referral Methods </li></ul><ul><li>Send to Friend: Email / IM </li></ul><ul><l...
Referral Viral Growth Factor <ul><li>Viral Growth Factor =  X  *  Y  *  Z </li></ul><ul><li>X = % of users who invite othe...
Referral <ul><li>Tools </li></ul><ul><ul><li>Gigya (social media distribution & tracking tool) </li></ul></ul><ul><ul><li>...
Startup Metrics Revenue
Website.com Revenue This is the part *you*  still have to figure out…  (we  don’t know jack  about your business) R evenue...
Revenue How do you make money? <ul><li>Revenue Tips </li></ul><ul><ul><li>Don’t Rely on AdSense (only) </li></ul></ul><ul>...
Revenue <ul><li>Resources & Tools </li></ul><ul><ul><li>Revenue Metrics (Andrew Chen) </li></ul></ul><ul><ul><li>http://ti...
Be Bold.  Be Humble. <ul><li>Stuff That Matters: </li></ul><ul><li>Passion  for Problem/Solution  + Hypothesis of  Custome...
Passion  vs.  Precision <ul><li>“ Solve a Problem” =  Passion </li></ul><ul><li>“ Optimize the Solution” =   Precision </l...
Types of Measurement <ul><li>Qualitative : Usability Testing / Session Monitoring </li></ul><ul><ul><li>Watch users,  gues...
Design, Optimize for  Conversion
Kano Model: User Needs & Satisfaction Copyright © 2008 Olsen Solutions LLC User Satisfaction User Dissatisfaction Performa...
Olsen’s Hierarchy of Web User Needs (adapted from Maslow) Copyright © 2008 Olsen Solutions LLC Is the site up when I want ...
Adding Metrics and Optimization to your Product Process Copyright © 2008 Olsen Solutions LLC Plan Design Develop Business ...
Using Metrics to Optimize the Equation of your Business <ul><li>What are the metrics for your business? </li></ul><ul><li>...
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Website.com <ul><li>Marketing Channels: </li></ul><ul><ul><li>largest-volume (#) How to be a Web 2.0 Metrics Jedi (Web 2.0 Expo, April 2009)

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Website.com Marketing Channels: largest-volume (#) lowest-cost ($) best-performing (%) Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

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