Measurement & ROI

MEASURE WHAT MATTERSunderstanding measurement & roi for digital experiences

@FARRAHBOSTIC

4 THINGS:WHY

WHATHOW

(AND HOW TO SELL IT)

1. WHY YOU SHOULD MEASURE

BINGO

KPI SIGN-UPS

TIME ON

SITECPM IMPRESSIONS

CPA CPC REACH & FREQUENCY LIKES ENGAGEMENT

LTV SENTIMENT ANALYSIS ROI PAGE

VIEWSFOLLOWS

MENTIONS CTR DOWNLOADSBRAND

ATTRIBUTESMEDIA MIX MODELING

SALIENCE LIKEABILITY RECALLSHARE

OF WALLET

??

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

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



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 SENTIMENTUNDERSTAND CONTEXT OF BRAND & PRODUCT

MENTIONS

Digital makes it is easier to detect problems or possible

areas for improvement related products/service use.

UNCOVER CONSUMER MOTIVATIONDEFINE 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

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.

MEASURE WHAT MATTERS... TO WHOM?

To your BUSINESS

To your PROSPECT

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.



WHAT MATTERS IS VALUE CREATION

To your BUSINESS

To your PROSPECT

CONVERSION ENGAGEMENT

2. WHAT YOU SHOULD MEASURE

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



WHAT ARE SOME ‘VALUE’ METRICS?

To your BUSINESS

To your PROSPECT


Acquisition - drawing people into the brand experience

Revenue - converting visitors into customers

Referral - converting customers into advocates

To your BUSINESS

CONVERSION

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

Activation - people enjoyed the experience...

Retention - enough to come back more than once...

Referral - and recommended the experience to others

To your PROSPECT

ENGAGEMENT

HOW DO YOU MEASURE RETENTION & REFERRAL?

Returning Visitors

Registered Users

Frequency

Time on Site

Daily Active Users

Likes, +1s, RTs

Mentions

Email referrals

VALUE CREATION = CREATING CUSTOMERS

To your BUSINESS

To your PROSPECT


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.

BUT WHAT ABOUT THE OTHER STUFF?

Brand attributes?

Loyalty?

Share of wallet?

Media mix modeling?

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.

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.

3. TOOLS YOU CAN USE FOR DIGITAL EXPERIENCE MEASUREMENT

APPS & SITES HELP ANSWER QUESTIONS...

I NEVER FELT LIKE I WAS LEARNING

ANYTHING IMPORTANT

@37SIGNALS

WHICH ONE IS MORE SUCCESSFUL?

http://www.slideshare.net/stueccles/lean-startup-metrics



EXTENDED SIGN-UP FUNNEL


WHEN DOES SUCCESS HAPPEN?



COHORT METRICS - CREATED PROJECT

WHERE IS SUCCESS COMING FROM?




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.

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.

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).

REMEMBER RULE 3 - DON’T MEASURE EVERYTHING -

[WE’RE LOOKING FOR WHAT MAKES MEANINGFUL DIFFERENCES]

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Main Idea

TITLE

•Bullet

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Main Idea

TITLE

GOOGLE BING

4. HOW DO YOU ‘SELL IT’

HOW TO TALK TO CLIENTS & COLLEAGUES ABOUT METRICS

Setting Goals Accountability Transparency

Assessing E!ectiveness

Optimizing Learning

Good measurement practices improve: client-agency relationships

insightdesignresults

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?

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.

THAT WAS FUN.

Measurement & ROI

Business

Transcript of Measurement & ROI