Measure What Matters

From the Measurement & ROI session at the NYC Hyper Island Master Class

Transcript

1. MEASURE WHAT MATTERS understanding measurement & roi for digital experiences
2. @FARRAHBOSTIC
3. 4 THINGS: WHY WHAT HOW (AND HOW TO SELL IT)
4. 1. WHY YOU SHOULD MEASURE
5. BINGO KPI SIGN- UPS TIME ON SITE CPM IMPRESSIONS CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT LTV SENTIMENT ANALYSIS ROI PAGE VIEWS FOLLOWS MENTIONS CTR DOWNLOADS BRAND ATTRIBUTES MEDIA MIX MODELING SALIENCE LIKEABILITY RECALL SHARE OF WALLET ??
6. A WORD OF CAUTION 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
7. 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
8. Now we can easily assess pre- existing demand among our target: how easy is user acquisition going to be? Spontaneous product comments and mentions reveal sentiment around them, and help us overcome existing boundaries for product adoption. Digital traces reveal important drivers of human behavior that we can use in shaping brand’s online actions. DETECT DEMAND EXPLORE CONSUMER SENTIMENT UNDERSTAND CONTEXT OF BRAND & PRODUCT MENTIONS Digital makes it is easier to detect problems or possible areas for improvement related products/service use. UNCOVER CONSUMER MOTIVATION DEFINE CONSUMERS’ MULTIPLE IDENTITIES OBSERVE SOCIAL GESTURES & CONTENT INTERACTION Understanding di erent identities our audience assumes lets us help them in their role- playing and is also useful in targeting. Our targets’ gift-giving of content gives us insights into where we can insert brand into their social exchanges. WHAT ELSE CAN MEASUREMENT HELP YOU DO? via @andjelicaaa
9. THERE ARE ONLY 3 RULES OF MEASUREMENT 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.
10. MEASURE WHAT MATTERS... TO WHOM? To your BUSINESS To your PROSPECT
11. 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
12. WHAT’S A VANITY METRIC? http://bokardo.com/talks/metrics-driven-design-sxsw.pdf A lot of the time, we measure for a show reel, instead of for business results.
13. WHAT MATTERS IS VALUE CREATION To your BUSINESS To your PROSPECT CONVERSION ENGAGEMENT
14. 2. WHAT YOU SHOULD MEASURE
15. 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
16. WHAT ARE SOME ‘VALUE’ METRICS? To your BUSINESS To your PROSPECT CONVERSION ENGAGEMENT
17. Acquisition - drawing people into the brand experience Revenue - converting visitors into customers Referral - converting customers into advocates To your BUSINESS CONVERSION
18. BEWARE THE CTR... The starting 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 irrelevant If the CPA is higher than the lifetime value (LTV) of a new user, you’re in trouble
19. Activation - people enjoyed the experience... Retention - enough to come back more than once... Referral - and recommended the experience to others To your PROSPECT ENGAGEMENT
20. HOW DO YOU MEASURE RETENTION & REFERRAL? Returning Visitors Registered Users Frequency Time on Site Daily Active Users Likes, +1s, RTs Mentions Email referrals
21. VALUE CREATION = CREATING CUSTOMERS To your BUSINESS To your PROSPECT CONVERSION ENGAGEMENT
22. SO WHAT’S MORE IMPORTANT? Brand growth comes from Acquisition. Contrary to popular belief, acquisition is actually cheaper, and more beneficial to the brand, than retention. Marketing should be geared toward Acquisition. Product & service design should be geared toward Activation & Retention.
23. BUT WHAT ABOUT THE OTHER STUFF? Brand attributes? Loyalty? Share of wallet? Media mix modeling?
25. THERE ARE MARKETING LAWS 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. 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.
26. AND 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.
27. 3. TOOLS YOU CAN USE FOR DIGITAL EXPERIENCE MEASUREMENT
28. APPS & SITES HELP ANSWER QUESTIONS... I NEVER FELT LIKE I WAS LEARNING ANYTHING IMPORTANT
29. @37SIGNALS WHICH ONE IS MORE SUCCESSFUL? http://www.slideshare.net/stueccles/lean-startup-metrics
30. EXTENDED SIGN-UP FUNNEL http://www.slideshare.net/stueccles/lean-startup-metrics WHEN DOES SUCCESS HAPPEN?
31. COHORT METRICS - CREATED PROJECT WHERE IS SUCCESS COMING FROM? http://www.slideshare.net/stueccles/lean-startup-metrics
32. DON’T HAVE ACCESS TO GOOGLE ANALYTICS? First - get access. :) Second - try QuantCast: Gives high-level insight into traffic sources, frequency and volume to site, and basic demographic and socio-economic data about your visitors. And it’s free.
33. OR THERE’S CHARTBEAT For $10/month, try ChartBeat. It provides real-time tracking and engagement metrics like user paths, time spent with content, and micro- actions like clicks, downloads, and scrolls that show whether people are actively engaging with the site content.
34. HACK THE METRICS Use unique links - through services like Bit.ly - to track the behavior that a social mention or display ad or site/page leads to. Stop paying for CPMs - pay for conversions (but define clearly what a ‘conversion’ is, and design ad units & digital experiences for conversion moments).
35. REMEMBER RULE 3 - DON’T MEASURE EVERYTHING - [WE’RE LOOKING FOR WHAT MAKES MEANINGFUL DIFFERENCES]
36. •Bullet •Bullet Main Idea TITLE
37. •Bullet •Bullet Main Idea TITLE
38. •Bullet •Bullet Main Idea TITLE GOOGLE BING
39. 4. HOW DO YOU ‘SELL IT’
40. HOW TO TALK TO CLIENTS & COLLEAGUES ABOUT METRICS Setting Goals Accountability Transparency Assessing E ectiveness Optimizing Learning Good measurement practices improve: client-agency relationships insight design results
41. SETTING 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?
42. SUMMING UP Measure what will teach you the most and help you make the most important decisions. Use bespoke, not o -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.
43. THAT WAS FUN.