Online Marketing and Metrics Presentation at UEIA, 2012

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Presentation of Product Strategy, Online Marketing and Metrics at Social Startup Accelerator, UEIA. December 2012

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  • Features: concreteBenefits:subjectivetothecustomer
  • People don't want to buy a quarter-inch drill. They want a quarter-inchhole!
  • “Feelthepain”: a los clientes les puede resultar muy complicado el articular sus necesidades.
  • Reposicionamiento: de champú para bebés a champú suave para todos
  • Online Marketing and Metrics Presentation at UEIA, 2012

    1. 1. Online Marketing and Metrics:because everything counts Justo Hidalgo jhidalgo@24symbols.com @justohidalgo
    2. 2. Hi!■ Co-founder,■ Data Integration and Management, Product Strategy and Innovation■ Ph.D. in Computer Science on Data Integration and Web Automation■ Ergo: Love Data ■ @justohidalgo
    3. 3. 24symbols is a service to read digital books on the Internet based on a subscription model = cloud + social + freemium@justohidalgo
    4. 4. 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12@justohidalgo Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12
    5. 5. My goals today Basic marketing and product strategy • The Whole Product • Segmentation, targeting and positioning Online marketing 101 • Two big realities (not trends anymore!) • SEO, SEM, Social media Metrics A/B Testing
    6. 6. What I won’t talk about Qualitative measurement • Competitive landscape, UX quality, … Standard financial metrics • Revenue, Balance, Burn rate, Runway, … All possible metrics in the world • As many as asses
    7. 7. Strategic PlanningSource: Tony Seba’s High Tech Marketing course @ Stanford U.
    8. 8. What’s aproduct?
    9. 9. The dude that invented the wheel was an idiot. The one that invented the other three was a genius! Sid Caesar
    10. 10. What if youwant to“productize” a“Hello World”program?
    11. 11. The Whole Product Potential Product Augmented Product Expected Product Producto Producto Potencial PRODUCT Aumentado
    12. 12. Product Potential Product Augmented Product Expected Product Producto Producto Potencial PRODUCT Aumentado
    13. 13. Expected Product Potential Product Augmented Product Expected Product Producto Producto Potencial PRODUCT Aumentado
    14. 14. Augmented Product Potential Product Augmented Product Expected Product Producto Producto Potencial PRODUCT Aumentado
    15. 15. Potential Product Potential Product Augmented Product Expected Product Producto Producto Potencial PRODUCT Aumentado
    16. 16. Segmentación
    17. 17. (and I don’t wanna cook!)
    18. 18. People don’t want to buy a ¼’’drill.They want a ¼’’ hole!!! Theodore Levitt, Professor of Marketing @ Harvard
    19. 19. Valuecreation: theproductbenefits bringsomethingnew to theuser
    20. 20. Valuecapture:someonepays for thegeneratedvalue
    21. 21. What’s a market segment■ Group of clients or potential clients of a set of product/services that posess a series of needs, behavioral patterns and common characteristics, and that communicate among each other when deciding upon a purchase decision.
    22. 22. Tipos de segmentos■ Geography (e.g. Per region)■ Size (e.g. Per income, revenue, growth rate, …)■ Industry (e.g. Per SIC code)■ Purchase type (e.g. Centralized vs decentralized)■ Personal (e.g. Risk profile)■…
    23. 23. TargetingEvaluation and prioritization of the market segmentsBased on how creative a market is, and how it can be served by our product Bullseye, © Marvel Corp.
    24. 24. Positioning = Differentiation
    25. 25. ■ Product must be positioned w.r.t. two elements: • Client needs • Competitors
    26. 26. How to position■ Relative to technologies, products o processes■ Relative to competitors • Avis: “We’re #2, that’s why try harder”■ Finding a unique niche • Genentech: “small” ($300M-$600M) oncology markets■ Becoming a category leader
    27. 27. There are two earthquakesgoing on
    28. 28. One: your users are not playing at YOURHOUSE … and that means that…
    29. 29. … they are PLAYING ELSEWHERE…
    30. 30. … so you need to be where conversationhappens…
    31. 31. This means…1. Listen, pulse 2. Analyze 3. Establish conversations… almost always
    32. 32. Two: whatever you do, it will be recorded
    33. 33. The BIG mistakeCisco just offered me a job! Now I have to weigh the utility of a fatty paycheck against the daily commute to San Jose and hatingthe work.
    34. 34. Dude, you ain’tuploadin’ this toFacebook, right?
    35. 35. … but that’s thedifference…
    36. 36. Cluetrain Manifesto 1. Markets are conversations 2. Markets are comprised by human beings, not demographic sectors 3. Conversation among human being sounds human ■ … and other 92 thesis http://www.cluetrain.com
    37. 37. Basic, basic, basic introductionFor more info, check: ➤http://www.slideshare.net/randfish/introduction-to-seo- 5003433 ➤http://www.seomoz.org/beginners-guide-to-seo ➤http://www.slideshare.net/randfish/fundamentals-of- great-seo ➤http://www.slideshare.net/randfish/the-evolution-of- googles-rankings ➤http://www.slideshare.net/ajaxlogos/meet-panda-seo- google-the-algorithm-and-publishing ➤http://www.slideshare.net/humanlevel/posicionamiento- en-buscadores-seo-y-sem-bsicos
    38. 38. Basic types of promotion■ Sales promotion■ Advertisement■ Sales force■ Public relations (PR)■ Direct marketing
    39. 39. Organic vs Paid Search
    40. 40. Organic vs Paid Search10% of Clicks90% of Clicks
    41. 41. SEO is the practice of improving and promotinga web site in order to increase the number ofvisitors the site receives from search engines.
    42. 42. Marketing in search engines■ Advantages • Top ranking captures 90% of clicks • No cost per clicks • Helps select prospects during discovery stage • Content beats budget (by now!)■ Cons • No guarantee • Takes time (months!) • Difficult to control • Difficult if competitors are already positioned
    43. 43. Reasons to take care of SEO Deep Web • Search • Submission-required forms Links in un-parseable javascript Robots.txt or meta robots tag • Is Google a rogue bot? Frames, iFrames • They *should* work Flash, applets, … 100’s, 1000’s of links on a page • Search engines don’t crawl ALL of them
    44. 44. Keywords
    45. 45. Trends
    46. 46. Don’t look like a Farm siteOld SEO tricks don’t work anymore:• Reciprocal link pages• Keyword-variant abuse• Generic design and layout (watch out CMS tools!)• Anonymous contact forms• Keyword-stuffed titles and pages• …
    47. 47. Marketing in search engines■ SEM: Search Engine Marketing■ PPC: Pay per Click■ Used in paid searches■ E.g. Google AdWords■ Paid per keyword use■ Advantages • Control on ranking, text and “landing page” • Typically uses “auctions”. One can compete • Campaigns can be tested■ Cons • No pay, no exist  • Not so reliable • Expensive • If someone pays more, wins
    48. 48. Marketing in search engines■ Contextual advertisement■ E.g. Google AdSense■ Advantages • Good for branding • Not just in search engines! blogs, facebook, twitter, … • Easy to test■ Cons/Challenges • Do FB users want to click on ads when chatting? • Difficult (i.e. expensive) to test and succeed
    49. 49. Social Media + SEO: big win Facebook shares Twitters tweets, RTs Google +1s Youtube … These are all taken into account by Google, Bing
    50. 50. When to promote and how
    51. 51. Let’s talk about metrics andstartups!
    52. 52. Watch this…500startups’ Dave McClure
    53. 53. … and this!Carsonified’s Ryan Carson
    54. 54. AARRRAcquire Activate Retain Refer Get RevenueSEO Landing Content Campaigns ShoppingSEM Page (blogs, Emails cartCampaigns Product articles, … SubscriptionsEmail Features …) Lead GenBlogs … Emails …… Alerts … traffic social business
    55. 55. Traffic Metrics
    56. 56. Acquisition How do people find your site?
    57. 57. @justohidalgo
    58. 58. 15 seconds in “La 1”
    59. 59. MetricsNumber of visits Distributions (per browser, region, …)Bounce rate Number of page views
    60. 60. AActivation How sticky is your site?
    61. 61. Metrics # Sign ins!!! Recency (time since user did85000 something meaningful)800007500070000650006000055000500004500040000 Time per page Time on site (and churn as well!!!)
    62. 62. Biggest Apple Reseller in Spain 1-year subscription to 24s per iPad/Mac purchased@justohidalgo
    63. 63. AARetention Why do users come back?
    64. 64. Metrics. The standard ones… Number of unique/returning visitors Visits over time Average session time
    65. 65. … engagement… D/WAU: Daily/Weekly Active Users MAU: Monthly Active Users D/WAU Stickiness = MAU
    66. 66. … but also domain-specific!!! # Active readers # Books read per user Pages read per active reader per month Pages read per paid user per month
    67. 67. Social Metrics
    68. 68. AARReferral Do people talk about your site?
    69. 69. Types of users Visitor Contributor Distributor
    70. 70. ViralityAmplification rate:• (#shares, #RTs, …)K-Factor = AR *conversion rate• = 1: steady state• > 1: growth ➤ 1.4 < x < 2.1 => hot & viral!!!• < 1: decline
    71. 71. The Four Viral App Objectives % viral hosts Contact rate per active host Duration of each active host’s infectious time period Infection conversionSource: http://framethink.wordpress.com/2008/01/15/the-four-viral-app-objectives-aka-social-network-application-virality-101/
    72. 72. @justohidalgo
    73. 73. Business Metrics
    74. 74. AARRRevenue Do you make money?
    75. 75. 3 (main) metrics for SaaS CMRR LTV CACR
    76. 76. Churn
    77. 77. CMRR SaaS = recurring revenues CMRR = Committed Monthly Recurring Revenue • Recurring + new accounts + new upsells – churn
    78. 78. LTV ARPU * 100% Churn rate Lifetime Value =Source: http://blog.kissmetrics.com/how-to-calculate-lifetime-value/
    79. 79. Customer Acquisition Cost gross margin per customer CAC Ratio= sales/marketing costs per customer Bessemer: average ratio of SaaS companies = 0.6
    80. 80. LTV vs CAC Of course, LTV > CAC But, moreover: LTV > 3x CAC
    81. 81. Freemium. Conversion Rate Free Users Delayed subscription Premium (test the service & engage) Conversion Rate Time@justohidalgo
    82. 82. Freemium for Books. Price per page Price/page Profit threshold Growth Consolidation time/conversion rate@justohidalgo
    83. 83. One key question for the whole AARRRcycle■ How effective is a web page compared to another? ?
    84. 84. What’s A/B Testing? Visitors are randomly distributed Version A Version B time 1200 new users 1000 new users Version A is better than B
    85. 85. What should you test? The call to action’s (i.e. the button’s) wording, size, color and placement, Headline or product description, Form’s length and types of fields, Layout and style of website, Product pricing and promotional offers, Images on landing and product pages, Amount of text on the page (short vs. long)… anything that you think it might affect your Key Metrics.
    86. 86. Is A/B testing perfect? Very good for ONE-SINGLE-GOAL projects where the KPI can be measured by counting actions • E.g. Downloads vs Quality perceived Granularity of the A/B test is paramount • If “A” better than “B” or is it just that the headline in B is horrible, but the rest is much much much better than “A”? A/B testing is suboptimal** Recommended:http://untyped.com/untyping/2011/02/11/stop-ab-testing-and-make-out-like-a-bandit/
    87. 87. AnalyticsHeatmapsSocial media
    88. 88. Conclusions
    89. 89. @justohidalgo
    90. 90. 2. Have someone taking care of it
    91. 91. 3. Only measure what you truly care about@justohidalgo
    92. 92. But again, choose right
    93. 93. 4. Beware vanity metrics…
    94. 94. … they may hide an awful truth
    95. 95. Thanks for your time!Justo Hidalgohttp://www.loscuentosdelabuelo.comjhidalgo@24symbols.com@justohidalgo
    96. 96. Credits Olivier Guin, from The Noun Project Dima Yagnyuk, from The Noun Project Redesign from Otl Aicher’s icon, from The Noun Project Axsys, from The Noun Project Monika Ciapala, from The Noun Project Rob Schill, from The Noun Project Martin Karachorov, from The Noun Project Alexandre Mendes, from The Noun Project All other icons from The Noun Project Publishers trademarks, logos and brands belong to their respective companies.

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