SlideShare a Scribd company logo
Why?
Because
Numbers
Don’t Lie.
Cassie Lancellotti-Young
Head of Marketing and Analytics, HighTable.com
What are we here to talk about?

Last 6 months in the life of yours truly
Hint: You can’t spell “customers” without “users”


McClure’s “Startup Metrics for Pirates”
How do you seize the booty?
Where are my opinions from?
      2003
         idiot intern at About.com


         media/tech banker at Citigroup


         online acquisition and subscription analytics at TheLadders


         independent analytics consultant while MBA’ing


         marketing and analytics at Savored


         demolition and reconstruction at HighTable


      2012
Cassie’s Law/Caveat: No Silos

 Always have a comprehensive portrait of
 engagement – email, site, revenue metrics
 all in one place.
 (No more “firing” customers just because they don’t open emails!)
Example: bringing the user into GA
Example: tight revenue tracking




Sailthru
HighTable 1.0 Disaster
Quora for professionals??
6 key site activities:
      1.   ask question
      2.   answer question
      3.   vote on answer
      4.   follow person
      5.   follow topic
      6.   follow question
May 2012: The
“Oh Shit!” Moment
§   low activation          §   85% of activity on day 1
§   minimal product trial   §   many “inherited” users
§   low repeat usage             from GLG’s business
June: Tackling the
usage puzzle…
What information can we get about users
           (and non-users)?
Which site components actually
     drive engagement?
What about customer satisfaction?
July: Road to
Recovery
Step 1: Pushing for wins at the margins…
Prioritize user education – tell the
Reiterate that with a simplified
153% increase in questions/visits
 136% increase in answers/visits
August: Road to
Recovery
Step 2: Big bets with small MVPs
new product concept
test for startup
members

tested willingness to
state business
challenges as well as
to list other people

developed sense for
September:
HighTable 2.0
Growth Hacking with Cassie Lancellotti-Young
68% usage from
membership
(vs. <10% with old product)


Viral coefficient at 0.5+ in
just first two weeks

70% fulfillment in 5 days
or less
The biggest
lesson of all
The biggest
lesson of all

      Keep it simple, stupid.
Decide what actually qualifies
as usage
      Beware of “false engagement” signifiers
Start with ONE thing and layer up

   Think Facebook pre-photos, newsfeed, etc…
On to the pirates…
McClure’s Startup Metrics for Pirates

  Acquisition
  Activation
  Retention
  Referral
  Revenue
Acquisition: invest in infrastructure

Hyper-granular tracking is mission-critical
to marketing investment decisions
Acquisition: CPA(R) vs. CPA(C)
There is fundamentally a huge difference
between a registrant/email subscriber
(CPAR) and a customer (CPAC – credit
card required!).
Acquisition: CPA(R) vs. CPA(C)
There is fundamentally a huge difference
between a registrant/email subscriber
(CPAR) and a customer (CPAC – credit
card required!).

Maybe you think your CPA is $5, but if
there’s only 5% customer conversion,
your CPA(C) is actually $100!
Acquisition: intake curves
You know CPA(R) today; you can use
historical data to forecast CPA(C) today,
too.
Activation – how quickly do they
do what we want them to do?
Know what makes sense for your
business – i.e. B2B vs. B2C, product
pricing

Understand bow-tie marketplaces and
develop “magic numbers.”
It’s about demand AND supply…
More from Savored…
And remember, business is more
than just marketing…
Retention: 3 things to think about

§ Email/mobile (push)
§ Product marketing (pull)
§ Customer satisfaction/NPS
Retention: push marketing
§   Regular updates
     about inventory
     and features
§   Promotions and
     win-backs
§   Abandonment
§   Shameless
     manipulation of
     customer demand!
§   Optimization!
Optimization can be very basic…
§   Increasing number of restaurants in digest from
     4 to 15 increased RPM by over 300%.
And remember,
imitation is the sincerest
form of flattery
And remember,
imitation is the sincerest
form of flattery

 (watch your competitors – and copy them)
Retention: product marketing
§   Is the funnel as simple as it could be?




§   Is your site content relevant to your users?

§   KILL THE DEAD END STREETS!
And be sure not to sacrifice quality…
Retention: delighting your customers




        Use your
 customers as an
    idea factory!
Retention: Know the numbers
Retention: I <3 cohort analysis
Referral (+Social, Viral, Whatever)

sharing = traffic = viral coefficient
               = $$$

Which content is most likely to be
shared; how can you promote that?

How can you incentivize referrals?
Revenue – at the highest level…
§   Know your LTV
     (and have confidence in your calculation)

§   Understand your revenue drivers – and
     what foreshadows them…
     (email vs. social, mobile vs. desktop)

§   Develop some easy hacks
     (prepaid credits, ancillary products, etc.)
Revenue – maximizing WTP




Always start with maximum
willingness to pay (sticker price) and
move along the curve from there
Revenue – cash is still king.
§ Little hacks
   (wording, default
   option, etc.) can
   go a long way
   where revenue is
   concerned.
§ Understand the
   balance sheet.
Revenue – I don’t have any!
§   Develop proxies for revenue – a
     post, a Tweet – but make sure
     those proxies are truly valuable
     behaviors.

§   If revenue comes from
     advertising vs. users, think
     about relationships (e.g. page
     views).
Another note on the numbers…

Remember that you have TWO lenses
for analysis:

 customer lens
 who is the customer and what does he do?


 “transaction” lens
 tags, patterns, time, etc.
…and one more…
Be sure to understand the “why” of what’s
happening – typically one of 3 buckets
  product/marketing
  deliberate changes to messaging, site, etc.

  business ecosystem
  inventory issues, technical problems

  “macro” factors
  industry trends, economic climate, press
…and (of course) make sure those
numbers are significant!
Let’s get (growth) hacking.
Let’s get (growth) hacking.



                 Cassie Lancellotti-Young
                 Head of Marketing and Analytics, HighTable.com

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