Will critchlow, meaningful metrics

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SES London 2013 - my talk on meaningful SEO metrics

Transcript of Will critchlow, meaningful metrics

London| 18–21 February

Meaningful SEO metrics

Will CritchlowDistilledwww.distilled.net

London| 18–21 February 2013 | #SESLON

London| 18–21 February 2013 | #SESLON

LTVLifetime Value

London| 18–21 February 2013 | #SESLON

RevenueCustomers

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Designed to recognise the

ways a customer is worth more

than their first purchase

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ROIReturn on Investment

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Total profitTotal campaign costs

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Designed to

measure the

effectiveness

of a campaign

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CPACost Per Acquisition

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Total campaign costsNumber of conversions

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Designed to compare the

costs of different channels

They are all broken or hard to measure for SEO

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LTVLifetime Value

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Pitfall:

Easy to double-count

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Analytics packages don’t track people, they track

cookies

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ROIReturn on Investment

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Pitfall:Assumes

costs scale with success

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Would you rather:Spend $1, make $1,000

orSpend $100, make $2,000

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No easy way to spend even $100 on this

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CPACost Per Acquisition

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Pitfalls:Hard to get fully-loaded cost

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SEO:should development costs be included?

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Pitfall:Assumes

costs scale with success

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There is no one metric

My process

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Understand how the business makes money

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Build a simple model

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Remember:The best metrics guide behaviour

KPIs guide executive behaviour: this is doing fine - go think about something else

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We don’t do what we wanted to

blog posts shipped, contacts made, pages updated,

development tickets completed

Campaigns have two failure modes

What we do doesn’t work well

not enough people read our posts, too many people ignore

our emails, bugfixes don’t move the needle

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MeasureACTIVITY & OUTCOMES

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Only worry about costs sometimes

Always consider the margin on an incremental sale

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Make up estimate numbers you don’t know

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Here’s an example output for DistilledU

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…with actuals

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Measure somethingEven before there are any outputs to measure

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Readthe lean startupAnd check out Dave

McClure on AARRR metrics

Build two metrics packs

Build a KPI packTotal LTV by channel, %growth, YoY traffic and revenue growth, 2+ year

forecasts

Build a project steering pack

e.g. …

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OutreachTotal new contacts attempted, responses, successful outcomes

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Conversion Rate Optimisation

Tests run, traffic to each variation, conversions for each variation, number of successful tests run, total improvement in conversion rate

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User satisfaction% of signups who upgrade to paid, % of engaged users, churn rates

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Focus on cohorts

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Focus on cohorts

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Focus on cohorts

Will Critchlow

Founder, Distilled

will.critchlow@distilled.net

@willcritchlow

London| 18–21 February 2013 | #SESLON

Image creditshttp://www.flickr.com/photos/mharvey75/374461497/

http://www.flickr.com/photos/mrsmagic/5848849468/

http://www.flickr.com/photos/drew_anywhere/3736287440/

http://www.flickr.com/photos/mk1971/1348204498/

http://www.flickr.com/photos/anned/6916165944/

http://www.flickr.com/photos/59937401@N07/5929622407/

http://www.flickr.com/photos/dunechaser/125929149/

http://www.flickr.com/photos/madison_guy/6075857102/

http://www.flickr.com/photos/sportsandsocial/2944659915/ http://www.flickr.com/photos/abbyladybug/1253054966/

http://www.flickr.com/photos/rhinoneal/5633001128/ http://www.flickr.com/photos/chickpokipsie/6785991390/in/photostream

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http://www.flickr.com/photos/chmoss/4142167488/ http://www.flickr.com/photos/cristiano_betta/2119577657/