BINGO TIME SIGN- KPI UPS ON CPM IMPRESSIONS SITE CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT PAGE LTV SENTIMENT ANALYSIS ROI VIEWS FOLLOWSMENTIONS CTR DOWNLOADS BRAND MEDIA MIX ATTRIBUTES MODELING SHARESALIENCE LIKEABILITY RECALL OF ?? WALLET
A WORD OF CAUTIONI notice increasing reluctance onthe part of marketing executivesto use judgment; they are comingto rely too much on research, andthey use it as a drunkard uses alamp post: for support, ratherthan for illumination.David Ogilvy
WHY DO METRICS MATTER? 1. Metrics reduce arguments based on opinion. 2. Metrics give you answers about what really works. 3. Metrics show you where you’re strong. 4. Metrics allow you to test anything you want. 5. Clients love metrics.http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
WHAT ELSE CAN MEASUREMENT HELP YOU DO? UNDERSTAND CONTEXT OF BRAND & PRODUCT DETECT DEMAND EXPLORE CONSUMER SENTIMENT MENTIONS Now we can easily assess pre- Spontaneous product comments Digital makes it is easier toexisting demand among our target: and mentions reveal sentiment detect problems or possiblehow easy is user acquisition going around them, and help us areas for improvement related to be? overcome existing boundaries for products/service use. product adoption. DEFINE CONSUMERS’ OBSERVE SOCIAL GESTURES & CONTENT UNCOVER CONSUMER MOTIVATION MULTIPLE IDENTITIES INTERACTION Digital traces reveal important Understanding different Our targets’ gift-giving of content drivers of human behavior that identities our audience assumes gives us insights into where we we can use in shaping brand’s lets us help them in their role- can insert brand into their social online actions. playing and is also useful in exchanges. targeting.via @andjelicaaa
THERE ARE ONLY 3 RULES OF MEASUREMENTYour metrics will be as UNIQUE as your business.If metrics aren’t ACTIONABLE, they aren’t worth using.DON’T TRY TO MEASURE EVERYTHING.
MEASURE WHAT MATTERS... TO WHOM? To your To your BUSINESS PROSPECT
IT’S EASY TO FOCUS ON VANITY METRICS “Numbers that make us look good but don’t really help make decisions.” Eric Ries, The Lean Start-up
WHAT’S A VANITY METRIC? A lot of the time, we measure for a show reel, instead of for business results.http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
WHAT MATTERS IS VALUE CREATION To your To your BUSINESS PROSPECT CONVERSION ENGAGEMENT
WHAT ARE SOME ‘VALUE’ METRICS? To your To your BUSINESS PROSPECT CONVERSION ENGAGEMENT
Acquisition - drawing people into the brand experienceTo yourBUSINESS Revenue - converting visitors into customers Referral - converting customers into advocates CONVERSION
BEWARE THE CTR...The starting metric for Acquisition isn’t CTR or “SiteVisits”...It’s CPA: Cost Per Acquisition(e.g., how much did you spend to get a new user)But this by itself is irrelevantIf the CPA is higher than the lifetime value (LTV) of a newuser, you’re in trouble
Activation - people enjoyed theexperience... To yourRetention - enough to come PROSPECTback more than once...Referral - and recommendedthe experience to others ENGAGEMENT
HOW DO YOU MEASURE RETENTION & REFERRAL? Returning Visitors Registered Users Likes, +1s, RTs Frequency Mentions Time on Site Email referrals Daily Active Users
VALUE CREATION =CREATING CUSTOMERS To your To your BUSINESS PROSPECT CONVERSION ENGAGEMENT
SO WHAT’S MORE IMPORTANT?Brand growth comes from Acquisition.Contrary to popular belief, acquisition is actually cheaper,and more beneﬁcial to the brand, than retention.Marketing should be geared toward Acquisition.Product & service design should be geared towardActivation & Retention.
BUT WHAT ABOUT THE OTHER STUFF?Brand attributes?Loyalty?Share of wallet?Media mix modeling?
THERE ARE MARKETING LAWSDouble Jeopardy Law: the lower market share brands in a markethave far fewer buyers in a time period and also lower brand loyalty.Retention Double Jeopardy: All brands lose some buyers; this loss isproportionate with market share.Pareto Law is 60/20 (not 80/20): Slightly more than half of a brand’ssales come from the top 20% of customers.Law of Buyer Moderation: Heavy buyers sometimes buy less often,light buyers sometimes buy more often, non-buyers sometimesbecome buyers.Law of Prototypicality: Image attributes that describe the productcategory score higher than less prototypical attributesDuplication of Purchase Law: A brand’s customer base overlaps withthe customer base of other brands, in line with their market share.
AND SOME INCONVENIENT TRUTHSUser bases seldom vary:Rival brands sell to very similar customer bases.Attitudes and brand beliefs reﬂect behavioral loyalty:Consumers know and say more about brands they use often,and they think and say little about brands they do not use.Usage drives attitude:Consumers like what they buy.
3. TOOLS YOU CAN USE FOR DIGITAL EXPERIENCE MEASUREMENT
APPS & SITES HELP ANSWER QUESTIONS... I NEVER FELT LIKE I WAS LEARNING ANYTHING IMPORTANT
WHICH ONE IS MORE SUCCESSFUL? @37SIGNALShttp://www.slideshare.net/stueccles/lean-startup-metrics
WHEN DOES SUCCESS HAPPEN? EXTENDED SIGN-UP FUNNELhttp://www.slideshare.net/stueccles/lean-startup-metrics
WHERE IS SUCCESS COMING FROM? COHORT METRICS - CREATED PROJECThttp://www.slideshare.net/stueccles/lean-startup-metrics
DON’T HAVE ACCESS TO GOOGLE ANALYTICS?First -get access. :)Second -try QuantCast:Gives high-levelinsight into trafﬁcsources, frequencyand volume to site,and basicdemographic andsocio-economic dataabout your visitors.And it’s free.
OR THERE’S CHARTBEATFor $10/month, tryChartBeat. It providesreal-time tracking andengagement metrics likeuser paths, time spentwith content, and micro-actions like clicks,downloads, and scrollsthat show whether peopleare actively engaging withthe site content.
HACK THE METRICSUse unique links - through services like Bit.ly - totrack the behavior that a social mention or displayad or site/page leads to.Stop paying for CPMs - pay for conversions (butdeﬁne clearly what a ‘conversion’ is, and design adunits & digital experiences for conversionmoments).
REMEMBER RULE 3 - DON’T MEASURE EVERYTHING -[WE’RE LOOKING FOR WHAT MAKES MEANINGFUL DIFFERENCES]
HOW TO TALK TO CLIENTS & COLLEAGUES ABOUT METRICS Setting Goals Accountability Transparency Assessing Optimizing Learning Effectiveness Good measurement practices improve: client-agency relationships insight design results
SETTING REASONABLE KPI’SWhat are the business objectives?What are the campaign objectives?What are the channels/touchpoints?What is the campaign experience & message?What do we expect people to do?
SUMMING UPMeasure what will teach you the most and help you make themost important decisions.Use bespoke, not off-the-shelf, metrics and measurementtools.Focus on ‘metrics’ that connect to value creation for thebusiness and drive brand growth.Don’t measure everything.