You’ve got 3 minutes.

Write down 3 reasons to love metrics.Then 3 reasons to hate them.

One per post-it.

When you’ve got all 6, bring them up.

@FARRAHBOSTIC

PROMISES WERE MADE.

DIGITAL WAS GOING TO MAKE EVERYTHING EASIER TO MEASURE.

THAT MEANT IT WAS GOING TO BE EASIER TO TARGET AUDIENCES.

AND THAT WAS GOING TO MEAN...

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GOOGLE BING

“BIG DATA”

VANITY METRICS

“Numbers that make us look good but don’t really help make decisions.” Eric Ries, The Lean Start-up

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

MEASURE WHAT MATTERS

1. WHY YOU SHOULD MEASURE

MEASUREMENT IS FOR LEARNING

METRICS ARE GOOD!

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. Managers love metrics.

http://bokardo.com/talks/metrics-driven-design-sxsw.pdf

YOU’VE BEEN ON A JOURNEY

YOU’RE ALL START-UPS NOW.

THE PURPOSE OF A STARTUP IS TO SEEK A VIABLE BUSINESS MODEL

WITH LIMITED TIME AND MONEY

SOUND FAMILIAR?

START-UPS HAVE TO FIGURE OUT:

WHETHER TO GO FORWARD WITH AN IDEA

HOW TO OPTIMIZE THE IDEA

WHEN TO PIVOT

HOW TO SCALE

DON’T PLAY METRICS BINGOKPI 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

??

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.

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

FOR A CREDIT CARD BRAND

Acquisition is a qualified lead completing an application - the result of smaller conversions:

• A larger prospect pool

• Prospects to qualified leads

• Qualified leads to applicants

• Cardmembers to active spenders

• Cardmembers to advocates

YOUR GOAL IS TO GROW YOUR BRAND.

Brand growth comes from customer acquisition.

Marketing should be developed for Acquisition.

Product & service design should be optimized for Activation & Retention.

BUT WHAT ABOUT THE OTHER STUFF?

Brand attributes?

Loyalty?

Share of wallet?

Media mix modeling?

THERE ARE 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.

THE LAWS OF MARKETING SCIENCE

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.

THE OTHER LAWS OF MARKETING SCIENCE

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.

THE LESSON:Set up metrics that:

Reflect critical steps on the way to your business goal.

Are relevant to the experience/product being measured.

And are built to help you continuously learn about your customers.

You’ve got 3 minutes.

Write down 3 business objectives for your concept.

Be as specific as you can.(and hold on to those)

3. HOW TO GET STARTED

FRAMING THE CONTEXT FOR MEASUREMENT

Setting Goals Accountability Transparency

Assessing Effectiveness

Optimizing Learning

Good measurement practices improve: client-agency relationships

insightdesignresults

INSTALL THE BASICS, AND SET A BASELINE

I NEVER FELT LIKE I WAS LEARNING

ANYTHING IMPORTANT

GET OUT OF THE BUILDING

WHAT YOU NEED TO LEARN

Do you need to seek other customers that are a better fit?

Do you need to rethink your positioning?

What would you have to change to create value?

Is it possible to give people what they want?

Should you make something else?

THEN: SET A FEW 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?

You’ve got 3 minutes.

Write down 3 KPIs you might set for your concept.

Make them relevant to both your business objectives

and your concept.(and hold on to those)

4. TOOLS YOU CAN USE

PINTEREST PROJECT CHARTERWhy we’re doing this:

What is the objective?• e.g., Drive pre-orders of a new title

• e.g., Aid discovery of other books in the imprint

• e.g.., Engage readers with additional content/activities

What we’re doing:

What are the tasks?• Who will manage the pinboard?

• Which account will it be on?

• What will the board’s theme be, how does it connect to the book/ author/ imprint?

• What assets will you create/use as pins v. content you re-pin?

• Whose approval/review do we need?

What success looks like:

What is the goal?• Establish measurable goals: followers, likes, re-

pins, other shares, comments, click to purchase, traffic referral

• Set up preferred tools for measurement: Google Analytics, Reachly, Pinalytics

• Establish milestones for measurement

SETTING THE RIGHT FRAMEWORK, BASED ON CONVERSATIONS WITH

THE WHOLE TEAM, AND YOUR CUSTOMERS, WILL HELP YOU DETERMINE

WHICH TOOLS TO USE

measure

Learn

respond

build

SITE ANALYTICS: ONGOING TRACKING + CAMPAIGN EVALUATION

@37SIGNALS

A/B TESTING: WHICH ONE IS MORE EFFECTIVE?

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

EXTENDED SIGN-UP FUNNEL

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

FUNNEL METRICS: WHEN/WHERE DO WE CONVERT USERS?

COHORT METRICS - CREATED PROJECT

COHORT METRICS:WHERE IS SUCCESS COMING FROM?

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

HACK THE METRICS

Use unique links - You don’t always own your own commerce system. Using services like Bit.ly, a URL shortener, you can track the behavior that a social mention or display ad or site/page leads to by tracking the unique link associated with each source.

Stop paying for CPMs - Pay for conversions! But define clearly what a ‘conversion’ is, and design ad units & digital experiences for conversion moments.

REMEMBER:

DON’T MEASURE EVERYTHING [WE’RE LOOKING FOR MEANINGFUL DIFFERENCES]

You have 5 minutes to break into 5 or 6 teams

and select a concept you’ve been working on.

Then you get 15 minutes to create a measurement charter, focusing on business objectives,

measurement tasks, and success indicators.

MEASUREMENT CHARTERWhy we’re doing this:

What is the objective?

What we’re doing:

What are the tasks?

What success looks like:

What is the goal?

Use the easel paper to post your measurement charter

around the room.

Each team gets 2 minutes to tell us how it went.

SUMMING UP

Measure what will teach you the most and help you make the most important decisions.

Use bespoke, not off-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.