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BINGO TIME KPI SIGN-UPS ON CPM IMPRESSIONS SITE CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT SENTIMENT PAGE LTV ANALYSIS ROI FOLLOWS VIEWSMENTIONS CTR DOWNLOADS
A WORD OF CAUTIONI notice increasing reluctance onthe part of marketing executivesto use judgment; they are comingto rely too much on research,and they use it as a drunkarduses a lamp post: for support,rather than for illumination.David Ogilvy
WHY DO METRICS MATTER?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. Clients love metrics.http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
WHAT ELSE CAN MEASUREMENT HELP YOU DO? EXPLORE CONSUMER UNDERSTAND CONTEXT OF DETECT DEMAND SENTIMENT BRAND & PRODUCT MENTIONS Now we can easily assess pre-existing Spontaneous product comments and Digital makes it is easier to detect demand among our target: how easy is mentions reveal sentiment around them, problems or possible areas for user acquisition going to be? and help us overcome existing boundaries improvement related products/service for product adoption. use. UNCOVER CONSUMER DEFINE CONSUMERS’ OBSERVE SOCIAL GESTURES & MOTIVATION MULTIPLE IDENTITIES CONTENT INTERACTION Digital traces reveal important Understanding different identities our Our targets’ gift-giving of content gives us drivers of human behavior that we audience assumes lets us help them in insights into where we can insert brand can use in shaping brand’s online their role-playing and is also useful in into their social exchanges. actions. targeting.via @andjelicaaa
THERE ARE ONLY 3 RULES OF MEASUREMENTYour metrics will be as UNIQUE as your business.If metrics aren’t ACTIONABLE, they aren’t worth using.DON’T TRY TO MEASURE EVERYTHING.
MEASURE WHAT MATTERS... TO WHOM? To your To your BUSINESS CUSTOMER
IT’S EASY TO FOCUS ON VANITY METRICS “Numbers that make us look good but don’t really help make decisions.” Eric Ries, The Lean Start-up
WHAT’S A VANITY METRIC? A lot of the time, we measure for a show reel, instead of for business results.http://bokardo.com/talks/metrics-driven-design-sxsw.pdf
WHAT MATTERS IS VALUE CREATION To your To your BUSINESS CUSTOMER CONVERSION ENGAGEMENT
WHAT ARE SOME ‘VALUE’ METRICS? To your To your BUSINESS CUSTOMER CONVERSION ENGAGEMENT
Acquisition - drawing people into the brand experienceTo yourBUSINESS Revenue - converting visitors into customers CONVERSION Referral - converting customers into advocates
BEWARE THE CTR...The main metric for Acquisition isn’t CTR or “Site Visits”...It’s CPA: Cost Per Acquisition(e.g., how much did you spend to get a new user)But this by itself is irrelevantIf the CPA is higher than the lifetime value (LTV) of a new user,you’re in trouble
Activation - people enjoyed theexperience... To yourRetention - enough to come back CUSTOMERmore than once...Referral - and recommended the ENGAGEMENTexperience to others
HOW DO YOU MEASURE ACTIVATION?A net promoter of +50 or better is a great score.But it’s not good enough on its own - you have to ask people why they gave that scoreAnd then put that information to use
HOW DO YOU MEASURE RETENTION & REFERRAL? Returning Visitors Registered Users Likes, +1s, RTs Frequency Mentions Time on Site Email referrals Daily Active Users
VALUE CREATION =CUSTOMERS BECOME ADVOCATES To your To your BUSINESS CUSTOMER CONVERSION ENGAGEMENT
APPS & SITES HELP ANSWER QUESTIONS... I NEVER FELT LIKE I WAS LEARNING ANYTHING IMPORTANT
WHICH ONE IS MORE SUCCESSFUL? @37SIGNALShttp://www.slideshare.net/stueccles/lean-startup-metrics
WHEN DOES SUCCESS HAPPEN? EXTENDED SIGN-UP FUNNELhttp://www.slideshare.net/stueccles/lean-startup-metrics
WHERE IS SUCCESS COMING FROM? COHORT METRICS - CREATED PROJECThttp://www.slideshare.net/stueccles/lean-startup-metrics
DON’T HAVE ACCESS TO GOOGLE ANALYTICS?First -get access. :)Second -try QuantCast:Gives high-levelinsight into trafﬁcsources, frequencyand volume to site,and basicdemographic andsocio-economic dataabout your visitors.And it’s free.
OR THERE’S CHARTBEATFor $10/month, tryChartBeat. It providesreal-time tracking andengagement metrics likeuser paths, time spentwith content, and micro-actions like clicks,downloads, and scrollsthat show whether peopleare actively engaging withthe site content.
FACEBOOKDashboard for a brandpage providesinformation on trafﬁc,content, user activity.And starts to give asense of more than justlikes & mentions - the‘reach’ of the users whoare liking & talkingabout you on Facebook.
FACEBOOKThe advertisingdashboard has beenupdated to focus onsocial metrics - like‘social reach’ (theabsolute number ofpeople who saw an adwith social context -names/pictures offriends who connectedwith the ad’sdestination) and‘connection’s (socialactions triggered by anad, like Likes, appinstalls, event RSVPs) http://www.secondshares.com/2011/05/10/facebook-advertising-embracing-the-second-internet-ethos/
TWITTERTwitter has not yet released its Analyticstool... So in the meantime - you can usetwittercounter.com and tools likehootsuite/tweetdeck to track mentions &conversations
REMEMBER RULE 3 - DON’T MEASURE EVERYTHING -[WE’RE LOOKING FOR WHAT MAKES MEANINGFUL DIFFERENCES]
HOW TO TALK TO CLIENTS & COLLEAGUES ABOUT METRICS Setting Goals Accountability Transparency Assessing Optimizing Learning Effectiveness Good measurement practices improve: client-agency relationships insight design results
SETTING 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?
A CREDIT CARD BRANDThe business objective:add new cardmembersThe campaign objective:use social media to drive newcardmember sign-upsThe touchpoints:Facebook brand page +Foursquare integration +Mobile-optimized Apply site
A CREDIT CARD BRANDWhat is the mostimportant KPI/successmetric?What would you measure/track to determine if youare succeeding?What experiments wouldyou run to ﬁnd the bestroute to success?
A CREDIT CARD BRANDWhat matters is acquisition -new cardmembers.Acquisition comes fromqualiﬁed leads completingapplications - the result ofsmaller conversions: Revenue,•A larger prospect pool Retention &•Prospects to qualiﬁed Referral matter too: leads • Cardmembers to•Qualiﬁed leads to active spenders applicants • Cardmembers to advocates