VANITY METRICS “Number make us s that look goo don’t re d but ally hel p make decision s.” Eric Ries The Lean , Start-up
I 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
METRICS ARE GOOD! 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. Managers love metrics.http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
FOR A CREDIT CARD BRANDAcquisition is a qualiﬁedlead completing anapplication - the resultof smaller conversions:• A larger prospect pool• Prospects to qualiﬁed leads• Qualiﬁed leads to applicants• Cardmembers to active spenders• Cardmembers to advocates
YOUR GOAL IS TO GROW YOUR BRAND.Brand growth comes fromcustomer acquisition.Marketing should bedeveloped for Acquisition.Product & service designshould be optimized forActivation & Retention.
BUT WHAT ABOUT THE OTHER STUFF?Brand attributes?Loyalty?Share of wallet?Media mix modeling?
THERE ARE SOME INCONVENIENT TRUTHSUser bases seldom vary:Rival brands sell to very similar customerbases.Attitudes and brand beliefs reﬂectbehavioral loyalty:Consumers know and say more aboutbrands they use often, and they think andsay little about brands they do not use.Usage drives attitude:Consumers like what they buy.
THE LAWS OF MARKETING SCIENCEDouble Jeopardy Law: the lower market sharebrands in a market have far fewer buyers in atime period and also lower brand loyalty.Retention Double Jeopardy: All brands losesome buyers; this loss is proportionate withmarket share.Pareto Law is 60/20 (not 80/20): Slightly morethan half of a brand’s sales come from the top20% of customers.
THE OTHER LAWS OF MARKETING SCIENCELaw of Buyer Moderation: Heavy buyerssometimes buy less often, light buyerssometimes buy more often, non-buyerssometimes become buyers.Law of Prototypicality: Image attributes thatdescribe the product category score higherthan less prototypical attributesDuplication of Purchase Law: A brand’scustomer base overlaps with the customerbase of other brands, in line with their marketshare.
THE LESSON:Set up metrics that:Reﬂect critical steps on the way to your business goal.Are relevant to the experience/product being measured.And are built to help you continuously learn about yourcustomers.
You’ve got 3 minutes.Write down 3 business objectives for your concept. Be as speciﬁc as you can. (and hold on to those)
WHAT YOU NEED TO LEARNDo you need to seek other customers that are a better ﬁt?Do you need to rethink your positioning?What would you have to change to create value?Is it possible to give people what they want?Should you make something else?
THEN: SET A FEW 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?
You’ve got 3 minutes. Write down 3 KPIsyou might set for your concept. Make them relevantto both your business objectives and your concept. (and hold on to those)
PINTEREST PROJECT CHARTERWhy we’re What is the objective?doing this: • e.g., Drive pre-orders of a new title • e.g., Aid discovery of other books in the imprint • e.g.., Engage readers with additional content/ activitiesWhat we’re What are the tasks?doing: • Who will manage the pinboard? • Which account will it be on? • What will the board’s theme be, how does it connect to the book/ author/ imprint? • What assets will you create/use as pins v. content you re-pin? • Whose approval/review do we need?What success What is the goal?looks like: • Establish measurable goals: followers, likes, re- pins, other shares, comments, click to purchase, traﬃc referral • Set up preferred tools for measurement: Google Analytics, Reachly, Pinalytics • Establish milestones for measurement
SETTING THE RIGHT FRAMEWORK, BASED ON CONVERSATIONS WITHTHE WHOLE TEAM, AND YOUR CUSTOMERS, WILL HELP YOU DETERMINE WHICH TOOLS TO USE
SITE ANALYTICS:ONGOING TRACKING + CAMPAIGN EVALUATION
A/B TESTING: WHICH ONE IS MORE EFFECTIVE? @37SIGNALShttp://www.slideshare.net/stueccles/lean-startup-metrics
FUNNEL METRICS: WHEN/WHERE DO WE CONVERT USERS? EXTENDED SIGN-UP FUNNELhttp://www.slideshare.net/stueccles/lean-startup-metrics
COHORT METRICS: WHERE IS SUCCESS COMING FROM? COHORT METRICS - CREATED PROJECThttp://www.slideshare.net/stueccles/lean-startup-metrics
HACK THE METRICSUse unique links - You don’t always own your own commercesystem. Using services like Bit.ly, a URL shortener, you can trackthe behavior that a social mention or display ad or site/page leadsto by tracking the unique link associated with each source.Stop paying for CPMs - Pay for conversions! But deﬁne clearlywhat a ‘conversion’ is, and design ad units & digital experiencesfor conversion moments.
REMEMBER:DON’T MEASURE EVERYTHING [WE’RE LOOKING FOR MEANINGFUL DIFFERENCES]
You have 5 minutes to break into 5 or 6 teams and select a concept you’ve been working on. Then you get 15 minutesto create a measurement charter,focusing on business objectives, measurement tasks, and success indicators.
MEASUREMENT CHARTERWhy we’re What is the objective?doing this:What we’re What are the tasks?doing:What success What is the goal?looks like:
Use the easel paper topost your measurement charter around the room. Each team gets 2 minutes to tell us how it went.
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.