Josh Braaten - How to Build a Data-Driven Company

You have more data today than ever before, but creating insights and driving action can still be far from easy. Josh will demonstrate where traditional analytics processes fall down and how to find or create the right data to drive your company towards better insights and outcomes. Get ready to learn about both short-term and strategic steps to help your company make better decisions and be more data-driven.

Transcript

1. How to Build a Data-Driven Company Josh Braaten CollegisEducation.com @JLBraaten
2. Josh Braaten • Director of Inbound Marketing, Collegis Education • Vice President of Minnesota Search Engine Marketing Association • Co-Founder of Glass en Masse
23. 1. Internet Math is Business Math
24. Data-driven companies are… Three times as likely to execute decisions as intended Source: Forbes,The Big Data Boom: Is Your Company Ready? October, 2013
25. Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Revenue – Expenses = Profit Internet Math is Business Math
26. Sent Emails * Open Rate = Opens * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Revenue – Expenses = Profit Internet Math is Business Math
27. # of Tweets * Avg Retweet Rate = Twitter Impressions * Twitter Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Revenue – Expenses = Profit Internet Math is Business Math
28. Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Average Revenue per Quarter * Number of Quarters – Quarterly Expenses = Profit Internet Math is Business Math
29. 2. If You Don’t Have a Metric, Make One
30. Data-driven companies are… Twice as likely to use data very frequently when making decisions Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013
31. Netflix and User Preferences
34. 3. Tie Issues to Revenue
35. Without a System, All Issues Look the Same Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 sue 10 Issue #1 e Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 #8 #9 Issue #10 Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue #6 Issue Issue #4 Issue #1 #7 Issue #3 Issue #9 Issue #6 Issue #7 Issue #3 Issue #5 Issue #7 Iss # Issu #5 #3 Issue #7 Iss # Issue #7 Issue #2 Issue #10 Issue #4 Issue #1 Issue #4
36. Creating a Metric Was Helpful Issues Reported by Students Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
37. We Can Also Tie Issues to Lost Customers Issues Reported by Students with Drops Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
38. Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11 Opportunities to Improve Look Different Issues Reported by Students with Drops Public Enemy #1
40. New Priorities Emerge Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
41. Walmart, Beer and Pop Tarts Source: The New York Times, What Wal-Mart Knows About Customers’s Habits November, 2004 “Start predicting what’s going to happen, instead of waiting for it to happen.” -Linda Dillman, Walmart, 2004
42. 4. Store and Structure Your Data
43. Target Knows Kids Better Than Parents Do Source: Forbes, How Target Figured Out a Teen Girl Was Pregnant Before Her Father Did February, 2012
44. Guest ID # Credit Card Name Email 1000000001 xxxx-xxxx-xxxx-4243 Josh Braaten jlbraaten@gmail.com 1000000002 xxxx-xxxx-xxxx-3053 John Doe johndoe@gmail.com 1000000003 xxxx-xxxx-xxxx-1836 John Smith john@aol.com Tying Everything Together
45. Getting Systems in Order is Both Easy and Hard Unique Customer ID
46. Jawbone Stores 60 Years’ Worth of Sleep Data Every Night Source: Fast Company, Jawbone Tracked Hundreds of Thousands of Up Users to Find the Most Sleep-Deprived States December, 2013
47. Without It, Everything Looks Like This Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 sue 10 Issue #1 e Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 #8 #9 Issue #10 Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue #6 Issue Issue #4 Issue #1 #7 Issue #3 Issue #9 Issue #6 Issue #7 Issue #3 Issue #5 Issue #7 Iss # Issu #5 #3 Issue #7 Iss # Issue #7 Issue #2 Issue #10 Issue #4 Issue #1 Issue #4
48. Or At Best This Issues Reported by Students Issue 1 Issue 2 Issue 3 Issue 4 Issue 5 Issue 6 Issue 7 Issue 8 Issue 9 Issue 10 Issue 11
49. But Never This Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6
50. 5. Analytics, Insights and Iteration
51. Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6 Public Enemy #1
52. Continuous Improvement and Iteration Source: Wired, Mark Zuckerberg’s Letter to Investors: “The Hacker Way” February, 2012 “The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.” - Mark Zuckerberg, Facebook, 2012
53. An Analytics Swiss Army Knife Provides Insights
54. An Analytics Swiss Army Knife Provides Insights Segment Traffic CR(%) Goal Completions Products 80,000 4% 3,200 Locations 50,000 6% 3,000 Home 225,000 1% 2,250 New Customers 10,000 10% 1,000 Service 15,000 5% 750
55. An Analytics Swiss Army Knife Provides Insights
56. An Analytics Swiss Army Knife Provides Insights
57. An Analytics Swiss Army Knife Provides Insights
58. An Analytics Swiss Army Knife Provides Insights
59. An Analytics Swiss Army Knife Provides Insights
60. An Analytics Swiss Army Knife Provides Insights
61. An Analytics Swiss Army Knife Provides Insights
62. An Analytics Swiss Army Knife Provides Insights
63. An Analytics Swiss Army Knife Provides Insights
64. Five times as likely to make decisions much faster than their market peers Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013 Data-driven companies are…
65. 6. Test, Test, Test
66. Controlled Testing Verifies Hypotheses and Understanding
67. 7. Use Data to Empower Action
68. Issues Reported by Students with Drops Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6 Public Enemy #1
69. Q1 Q2 Q3 Q4 No Social Media 72% 70% 73% 72% Facebook Users +26% +27% +15% +14% Community Users +24% +21% +5% +14% Retention and Social Media Participation
70. Source: Harvard Business Review, When to Act on Correlation, and When Not To March, 2014 Correlation and Action
71. Help Everyone Have a Say in KPIs
72. Help Everyone Have a Say in KPIs 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Original V1: Blue V2: Olive Satisfied Neutral Dissatisfied Qualaroo NPS Ratings by Background Color
73. 8. Hire Someone Good at Math
74. If You’ve Made It This Far, Hire For Math
75. 9. Don’t Forget to Turn Data Collection Into Marketing and More
78. 10. Give People Data and They’ll Grow to Depend on It
79. Source: Forbes, The Big Data Boom: Is Your Company Ready? October, 2013 Data-driven companies are… Twice as likely to be in the top quartile of financial performance within their industries
80. When More Companies Can See Where Issues Affect Revenue Impressions * Click-Through Rate = Clicks = Visits * Conversion Rate = Conversions * Average Transaction Value = Average Revenue per Quarter * Number of Quarters – Quarterly Expenses = Profit
81. Where Issues Seem Less Like This Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 sue 10 Issue #1 e Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 #8 #9 Issue #10 Issue #1 Issue #3 Issue #2 Issue #7 Issue #5 Issue #6 Issue #4 Issue #8 Issue #9 Issue #10 Issue #2 Issue #7 Issue #9 Issue #6 Issue Issue #4 Issue #1 #7 Issue #3 Issue #9 Issue #6 Issue #7 Issue #3 Issue #5 Issue #7 Iss # Issu #5 #3 Issue #7 Iss # Issue #7 Issue #2 Issue #10 Issue #4 Issue #1 Issue #4
82. Issue 4 Issue 1 Issue 2 Issue 7 Issue 3 Issue 5 Issue 8 Issue 9 Issue 10 Issue 11 Issue 6 And More Like This Issues Reported by Students with Drops
83. When Ideas Are Vetted With These
84. And Tested With This
85. To Produce Wins Like This
86. v To Produce Wins Like this
90. Thank You