A new version of the talk I've given at Hyper Island.

1. You’ve got 3 minutes.
Write down 3 reasons to love metrics.
Then 3 reasons to hate them.
One per post-it.
When you’ve got all 6, bring them up.

2. @FARRAHBOSTIC

3. PROMISES WERE MADE.
DIGITAL WAS GOING TO MAKE EVERYTHING
EASIER TO MEASURE.
THAT MEANT IT WAS GOING TO BE EASIER TO
TARGET AUDIENCES.
AND THAT WAS GOING TO MEAN...

5. TITLE
Main Idea
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Main Idea
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Main Idea
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GOOGLE BING

8. “BIG DATA”

10. 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

11. I notice increasing reluctance on
the part of marketing executives
to use judgment; they are coming
to rely too much on research, and
they use it as a drunkard uses a
lamp post: for support, rather
than for illumination.
David Ogilvy

12. MEASURE WHAT MATTERS

13. 1. WHY YOU SHOULD MEASURE

14. MEASUREMENT
IS FOR LEARNING

15. 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

16. YOU’VE BEEN ON A JOURNEY

17. YOU’RE ALL START-UPS NOW.
THE PURPOSE OF A STARTUP IS TO SEEK A
VIABLE BUSINESS MODEL
WITH LIMITED TIME AND MONEY
SOUND FAMILIAR?

19. START-UPS HAVE TO FIGURE OUT:
WHETHER TO GO FORWARD WITH AN IDEA
HOW TO OPTIMIZE THE IDEA
WHEN TO PIVOT
HOW TO SCALE

20. DON’T PLAY METRICS BINGO
TIME
SIGN-
KPI UPS
ON CPM IMPRESSIONS
SITE
CPA CPC REACH &
FREQUENCY LIKES ENGAGEMENT
PAGE
LTV SENTIMENT
ANALYSIS ROI VIEWS FOLLOWS
MENTIONS CTR DOWNLOADS
BRAND MEDIA MIX
ATTRIBUTES MODELING
SHARE
SALIENCE LIKEABILITY RECALL OF ??
WALLET

21. YOUR METRICS WILL BE AS
UNIQUE AS YOUR BUSINESS.
IF METRICS AREN’T ACTIONABLE,
THEY AREN’T WORTH USING.
DON’T TRY TO MEASURE EVERYTHING.

22. 2. WHAT YOU SHOULD MEASURE

23. USE ‘PIRATE’ METRICS
Acquisition: users from channels come
to site, landing page, widget, etc
Activation: users enjoy 1st visit, "happy"
user experience
*
Retention: users re-visit multiple times
Referral: users like experience enough *
to refer others via email, links, likes,
blogs, widgets, word-of-mouth, etc
Revenue: users buy, download, sign-up
http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

24. FOR A CREDIT CARD BRAND
Acquisition is a qualified
lead completing an
application - the result
of smaller conversions:
• A larger prospect pool
• Prospects to qualified leads
• Qualified leads to
applicants
• Cardmembers to active
spenders
• Cardmembers to advocates

25. YOUR GOAL IS TO GROW YOUR BRAND.
Brand growth comes from
customer acquisition.
Marketing should be
developed for Acquisition.
Product & service design
should be optimized for
Activation & Retention.

26. BUT WHAT ABOUT THE OTHER STUFF?
Brand attributes?
Loyalty?
Share of wallet?
Media mix modeling?

28. THERE ARE SOME INCONVENIENT TRUTHS
User 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.

29. THE LAWS OF MARKETING SCIENCE
Double Jeopardy Law: the lower market share
brands in a market have far fewer buyers in a
time period and also lower brand loyalty.
Retention Double Jeopardy: All brands lose
some buyers; this loss is proportionate with
market share.
Pareto Law is 60/20 (not 80/20): Slightly more
than half of a brand’s sales come from the top
20% of customers.

30. THE OTHER LAWS OF MARKETING SCIENCE
Law of Buyer Moderation: Heavy buyers
sometimes buy less often, light buyers
sometimes buy more often, non-buyers
sometimes become buyers.
Law of Prototypicality: Image attributes that
describe the product category score higher
than less prototypical attributes
Duplication of Purchase Law: A brand’s
customer base overlaps with the customer
base of other brands, in line with their market
share.

31. 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 your
customers.

32. You’ve got 3 minutes.
Write down 3 business objectives
for your concept.
Be as specific as you can.
(and hold on to those)

33. 3. HOW TO GET STARTED

34. FRAMING THE CONTEXT FOR MEASUREMENT
Setting Goals Accountability Transparency
Assessing
Optimizing Learning
Effectiveness
Good measurement practices improve:
client-agency relationships
insight
design
results

35. INSTALL THE BASICS, AND SET A BASELINE
I NEVER FELT LIKE I
WAS LEARNING
ANYTHING IMPORTANT

36. GET OUT OF THE BUILDING

37. WHAT YOU NEED TO LEARN
Do 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?

38. THEN: SET A FEW REASONABLE KPI’S
What 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?

39. You’ve got 3 minutes.
Write down 3 KPIs
you might set for your concept.
Make them relevant
to both your business objectives
and your concept.
(and hold on to those)

40. 4. TOOLS YOU CAN USE

41. PINTEREST PROJECT CHARTER
Why 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/
activities
What 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

42. SETTING THE RIGHT FRAMEWORK,
BASED ON CONVERSATIONS WITH
THE WHOLE TEAM, AND YOUR CUSTOMERS,
WILL HELP YOU DETERMINE
WHICH TOOLS TO USE

43. measure
build
Learn
respond

44. SITE ANALYTICS:
ONGOING TRACKING + CAMPAIGN EVALUATION

45. A/B TESTING:
WHICH ONE IS MORE EFFECTIVE?
@37SIGNALS
http://www.slideshare.net/stueccles/lean-startup-metrics

46. FUNNEL METRICS:
WHEN/WHERE DO WE CONVERT USERS?
EXTENDED SIGN-UP FUNNEL
http://www.slideshare.net/stueccles/lean-startup-metrics

47. COHORT METRICS:
WHERE IS SUCCESS COMING FROM?
COHORT METRICS - CREATED
PROJECT
http://www.slideshare.net/stueccles/lean-startup-metrics

48. HACK THE METRICS
Use unique links - You don’t always own your own commerce
system. Using services like Bit.ly, a URL shortener, you can track
the behavior that a social mention or display ad or site/page leads
to by tracking the unique link associated with each source.
Stop paying for CPMs - Pay for conversions! But define clearly
what a ‘conversion’ is, and design ad units & digital experiences
for conversion moments.

49. REMEMBER:
DON’T MEASURE EVERYTHING
[WE’RE LOOKING FOR MEANINGFUL DIFFERENCES]

50. You have 5 minutes
to break into 5 or 6 teams
and select a concept
you’ve been working on.
Then you get 15 minutes
to create a measurement charter,
focusing on business objectives,
measurement tasks,
and success indicators.

51. MEASUREMENT CHARTER
Why we’re What is the objective?
doing this:
What we’re What are the tasks?
doing:
What success What is the goal?
looks like:

52. Use the easel paper to
post your measurement charter
around the room.
Each team gets 2 minutes
to tell us how it went.

53. SUMMING UP
Measure what will teach you the most and help you make the
most important decisions.
Use bespoke, not off-the-shelf, metrics and measurement
tools.
Focus on ‘metrics’ that connect to value creation for the
business and drive brand growth.
Don’t measure everything.

54. THAT WAS FUN.