presentation from Cassie Lancellotti-Young at NY Internet Week 2013

1. Cassie Lancellotti-Young
VP Client Analytics, Sailthru
May 2013
@dukecass
Metrics that Matter:
The 360-Degree Customer
Transcending Data Silos for Holistic Marketing

2. About Me: The “Reader‟s Digest” Version
media/tech banker at Citigroup
acquisition and subscription analytics at TheLadders
independent analytics consultant while MBA‟ing
marketing and analytics at Savored (exited to Groupon)
intrapreneurship at Gerson Lehrman Group (GLG)
2013
2005
client optimization/analytics at Sailthru

3. to get metrics, we need data
…and that data has become big

4. big data proliferation:
the good, the bad and the ugly

5. the good:
data is everywhere
CUSTOMER
mobile
CRM
website
emailPOS
support
social

6. more of the good:
meet the “always addressable” customer

7. the bad:
with big data come big silos

8. the ugly:
the ignorant marketer
“Cassie, check out our updated mobile app”
 Cassie‟s account is
already linked to an
iPhone app
 No options to upgrade
AMEX app in App Store,
so Cassie likely already
has this version

9. 39% of marketers
can‟t turn data into action
Stat Source: Columbia Business School: “Marketing ROI in the Era of Big Data,” 2012.
Image Source: Dilbert, 29 July 2012.

10. 360-degree marketing =
“big data alchemy”
Image Source: Cambridge in Colour, 2013.

11. how to become an alchemist?

12. the API economy is key

13. API aggregation example: SumAll

14. API aggregation example: GoodData

15. and of course, there are tools to
let you try this at home

16. this is precisely what sailthru‟s
“smart data” is all about

17. …but hacks can work, too
(e.g. bringing user level into GA)

18. as can clunky “scrappy” excel files!

19. thought this talk was about metrics?
well, here we go.

20. give yourself a sanity check!
(b2b vs. b2c, price point, etc.)

21. measurement happens via 3 lenses
 user level – what are users doing?
 product/transaction level – when is site
conversion highest? which products yield
the strongest repeat rates?
 relationships/ratios – how do certain
experiences impact user behaviors (e.g.
first purchase type vs. NPS)?

22. cohort analysis vs. vanity metrics

23. always have a pulse on
what happens on downstream
Source: Monetate

24. just say no to “elevator” analysis
understand the why?
 product/marketing: deliberate changes to
messaging, site, etc.
 business ecosystem: i.e. inventory issues,
technical problems
 “macro” factors: i.e. industry trends,
economic climate, press

25. relationship analytics, you say?

26. live chat usage vs. conversion
TheLadders saw a fairly immediate 13%
increase in premium conversion for a test group
that live-chatted with a representative.

27. feedback vs. subsequent use cases
Some Savored restaurants were absolutely
horrid for driving repeat usage.

28. account management vs. spend
Does more time spent on account management
yield upsells? Higher contract value?
Does it reduce churn?

29. tying together online/offline behaviors
Customers who try the brand offline will
oftentimes have higher AOVs (average order
value) online downstream.

30. “magic” numbers
define tipping point for engagement
Facebook considers a user to be “engaged” if
s/he gets 7 friends within 10 days of signup.

31. understanding relationships is as easy as 0,1
(0=no, 1=yes)
 Data science/predictive
models are most ideal, but
you can get started
(directionally) on your own
with simple binomial
regressions.
 e.g. Savored regressed
restaurant churn propensity
against reservations in first
30 days.

32. McClure‟s Startup Metrics for Pirates
Acquisition
Activation
Retention
Referral
Revenue
link to pre

33. Acquisition
Where do we get new users and how
much does it cost us to get them?

34. key to acquisition is understanding
scale/efficiency trade-off

35. efficiency is a function of
spend, creative, multiple conversions

36. (understand what‟s causing these gaps)

37. resulting in two CPAs: CPAR + CPAC
…and efficiency is really about the latter
 CPAR: cost per registrant (or CPL/lead)
$100 spend / 20 signups = $5 CPAR
 CPAC: cost per customer (or engaged user)
20 signups >> 1 buyer = $100 CPAC

38. can‟t predict the future?
enter the “intake curve”

39. use the intake curve to predict CPAC
>

40. what kind of conversion
are you trying to drive?

41. use downstream metrics to
inform/optimize your acquisition strategy
Image Source: Kaushik.net

42. that said,
the tighter the tracking, the better

43. Activation
Do users do as we ask them to do?
If so, how quickly do they do it?

44. define what actually qualifies as
“USAGE”

45. so your customers don‟t pay you?
not a problem…
 Develop proxies for revenue – a post, a
Tweet – but make sure those proxies
are truly valuable behaviors.
 For advertising-driven businesses, still think
about key value – i.e. PV/user yields $X in
ad revenue?

46. know if you‟re dealing with a
“bow-tie” marketplace…

47. what„s a marketplace?
it„s about balancing supply and demand

48. health of the marketplace ecosystem has a
material impact on the metrics

49. is restricted access precluding
eventual activation?

50. important to have realistic
expectations for customer behavior
Image Source: Max Woolf

51. …don„t jump the gun!
Image Source: Max Woolf

52. when you can‟t activate via email,
leverage other channels!

53. even picking up the phone works
(for both b2b and b2c!)
Image Source: SalesNexus

54. please, just be careful with discounts!
Cost of First Month Month 1 Renewal Rate
$40 (full price) 70%
$36 70%
$32 65%
$28 55%
∙ ∙
∙ ∙
∙ ∙
$0 (free trial) 40%

55. (random aside)
use your customers to get ideas

56. Retention
How do we keep users engaged with
our product/content over time?

57. the democratization of 1:1;
mass messaging no longer cuts it

58. case study: seamless.com
and movable ink‟s device targeter
Source: Movable Ink

59. case study: scoutmob
app win-back email

60. old school segmentation has evolved
(because customers aren‟t segments)
MANY PEOPLE
Recency
Frequency
Monetary Value
“80% of your revenue
comes from 20% of
your customers”
CASSIE‟S MODEL
Behavioral
Usage
Situational
“what else do we
know about that 20%
segment?”

61. quickly, some easy retention tactics
(email-centric)

62. “win-backs” for good customers
who are MIA

63. recommendations
(measure by CTR, engagement and lift)

64. inventory updates
(how many disengaged can you recapture?)

65. urgency will always move product

66. page or user flow abandonment

67. leveraging outside APIs for
social proof

68. promotion
(but be strategic about it)

69. big data vs. big brother
“your friend Amanda dined at Zengo with Savored”
Disengaged Segment
10% open rate
15% CTR
Dormant Segment
30% open rate
10% CTR

70. email measurement

71. open rates are dead.
metrics such as RPM, PVM define success

72. understand how email impacts
on site/in app behavior

73. again, the right metrics are
often more of an art than a science
Twitter‟s success
metric for this email is
likely something like
“incremental follows”

74. make it easy: which ONE thing
do you want the user to do?
?!?!?!?

75. this is pretty straightforward
(probably optimized for day1 buyers?)

76. don„t forget about
creative optimization
Savored – increase from 4-15 restaurants
per email increased RPM by over 300%

77. even creative is about relationships!
component CTR vs. revenue

78. product retention

79. watch conversion closely

80. data-driven product optimization
(GA click map)
Source: Kaushik.net

81. Referral (and “Social,” “Viral,” etc.)
sharing = traffic = $$$

82. understand which types of content
produce highest sharing lift
Source: AddThis

83. make it easy for people to invite others
(and incentivize them to do so)

84. Revenue
How do we make money (and lots of it)?

85. everything we‟ve already said,
plus one more thing…

86. understand which factors
underpin revenue propensity
Source: betashop, 16 March 2011.

87. …and then drive
behavior in those directions

88. to summarize?
the 360-degree customer is nothing
without situational understanding
(relationships!)

89. questions?
cyoung@sailthru.com