How To Be A Web 2.0 Metrics Jedi - Web 2.0 Expo (Apr 09)

Web 2.
0 Expo
Apr 3, 2009
#w2e #metrics
Become a Web 2.0 Jedi:

How to Use the Force of Product &
Marketing Metrics to Optimize Your
Business
Startup Metrics for Pirates:
AARRR!
Web 2.0 Expo SF

April 2009
Dave McClure, Founders Fund

http://www.foundersfund.com/
http://500hats.typepad.com/
http://slideshare.net/dmc500hats/
Startup Metrics: The Basics
• Measure Stuff. Keep It Simple.

• 5 Steps: Startup Metrics for Pirates (AARRR!)
• 3 Metrics Frameworks + 3 Roles (CEO, Dev/Product, Marketing)
• Iterate & Optimize. Feedback Loop. (Loop. Loop.)
• One Step at a Time. The “Ass vs. Face” Issue.
Appendix (we won’t have time)

• Activation
• Retention
• Acquisition
• Referral
• Revenue
Web 2.0: Hell Yes, Good Times.
1. # Users, Bandwidth = Bigger.

2. Lower Startup Costs = Badder.
3. PPC, E-Com $ Growing = Uncut.
 Collect Usage Metrics in Real-Time

 Decisions Based on Measured User Behavior
The Startup Metrics Religion
• Progress ≠ Features (Less = More)

• Focus on User Experience
• Measure Conversion; Compare 2+ Options
• Fast, Frequent Iteration (+ Feedback
Loop)
• Keep it Simple & Actionable
Optimize 4 Happiness $$$
(both User + Business)
• Define States of User + Business Value

• Prioritize (Estimate) Relative Value of Each State
• Move Users: Lower Value -> Higher Value
• Optimize for User Happiness / Business $$$
• Achieve Low Cost + High Value @ Scale
Discover Meaning
Keywords, Images, Call-to-Action
Call-to-Action
• Words
Top 10 - 100 words • Images
• Your Brand / Products
• Context
• Customer Needs / Benefits
• Competitor’s Brand / Products
• Button/Link
• Semantic Equivalents • Emotion
• Misspellings
Result
Relevant images • Positive?
• People
• Negative?
• Products
• Problems
• Neutral (= Death)
• Solutions • A/B test & Iterate
Startup Metrics for Pirates: AARRR!
• Acquisition: users come to site from various channels

• Activation: users enjoy 1st visit: "happy” experience
• Retention: users come back, visit site multiple times
• Referral: users like product enough to refer others
• Revenue: users conduct some monetization behavior
AARRR!
(note: If you’re in a hurry,

watch 5 min video after slide
23)
AARRR!: 5-Step Startup Metrics Model
SEO Campaigns,
SEM PR Contests Biz
Social
Networks Dev
Blogs Affiliates
Apps & Direct,
Widgets Email Tel, TV
Domains
ACQUISITION
Emails &
Alerts
on
Blogs, RSS,
News Feeds n ti
R et e
Ads, Lead Gen, Biz Dev
Re
System Events & Subscriptions,
ve
Time-based
ECommerce
Features
nu
Website.com e $$
$
Q: What’s My Business Model?
Can be one of the following:

1. Get Users (= Acquisition, Referral)
2. Drive Usage (= Activation, Retention)
3. Make Money (= Revenue*)
* ideally profitable revenue
Note: eventually need to turn Users/Usage -> Money

Just Gimme the GOOD Metrics.
Users, Pages, Clicks, Emails, $$$...?
Q: Which of these is best? How do you know?

• 1,000,000 one-time, unregistered unique visitors
• 500,000 visitors who view 2+ pages / stay 10+ sec
the
good • 200,000 visitors who clicked on a link or button
stuff.
• 20,000 registered users w/ email address
• 2,000 passionate fans who refer 5+ users / mo.
• 1,000 monthly subscribers @ $5/mo
3 Core Models:
biz model, conversion dashboard, mktg channels
• Define 1-Page Biz Model: customer segments + desired actions / behaviors

• Identify critical Conversion Events & Dashboard for each segment & prioritize
• Test & develop Marketing Channels; measure Volume (#), Cost ($), Conv (%)
 Optimize product & marketing using Fast Iteration Cycles & A/B Testing
Role: Founder/CEO
Q: Which Metrics? Why?
A: Focus on Critical Few Actionable Metrics
(if you don’t use the metric to make a decision, it’s not actionable)
Hypothesize Customer Lifecycle

• Target ~3-5 Conversion Events (tip: Less = More)
• Test, Measure, Iterate to Improve
•
The 1-Page Business Model
(Users + Conversions + Priorities)
Q1: What types of people use your website?

• Visitor = Average User / Buyer
• Contributor = Content Contributor / Seller
• Distributor = Passionate Fan (unpaid) / Affiliate (paid)
Q2: What actions could they take to help you or them ?
TeachStreet Metrics v1:
Eye Chart Madness
TeachStreet 1-Page Business Model:
Teachers & Students
Teachers Students
Activatio •Claim Profile •Contact Teacher
n •Add Class •View 3 Pages
Retentio •Visit 1x/mo for 3 •Visit 1x/mo for 3
n mo’s mo’s
Referral •Request Review •Suggest Teacher
TeachStreet: 45-day Claim Rates
(Seattle, Portland)
Role: Product / Engineering
Q: What Features to Build? Why? When are you “Done”?

A: Easy-to-Find, Fun/Useful, Unique Features that
Increase Conversion (stop iterating when increase decelerates)
• Wireframes = Conversion Steps

• Measure, A/B Test, Iterate FAST (daily/weekly)
• Optimize for Conversion Improvement
– 80% on existing feature optimization
– 20% on new feature development
Example Conversion Dashboard
Stage Conversion
(note: *not* actuals… Status Conv.
your mileage may vary) Est. Value
% (*not* cost)
Acquisition Visitors -> Site/Widget/Landing Page 60% $.05

(2+ pages, 10+ sec, 1+ clicks = don’t abandon)
Activation “Happy” 1st Visit; Usage/Signup 15% $.25

(clicks/time/pages, email/profile reg, feature
usage)
Retention Users Come Back; Multiple Visits 5% $1
(1-3x visits/mo; email/feed open rate / CTR)
Referral Users Refer Others 1% $5
(cust sat >=8; viral K factor > 1; )
Revenue Users Pay / Generate $$$ 2% $50
(first txn, break-even, target profitability)
Role: Marketing / Sales
Q: What channels? Which users? Why?
A: High Volume (#), Low Cost ($), High Conv (%)
• Design & Test Multiple Marketing Channels + Campaigns

• Select & Focus on Best-Performing Channels & Themes
• Optimize for conversion to target CTAs, not just site/landing page
• Match/Drive channel cost to/below revenue potential
• Low-Hanging Fruit:
– Blogs
– SEO/SEM
– Landing Pages
– Automated Emails
Example Marketing Channels
• PR • Email
• SEO / SEM
• Contest Blogs / Bloggers
•
• Biz Dev • Viral / Referral
• Direct Marketing • Affiliate / CPA
• Widgets / Apps
• Radio / TV / Print LOLCats ;)
•
• Dedicated Sales
• Telemarketing
MAARRRketing Plan
Marketing Plan = Target Customer Acquisition Channels
• 3 Important Factors = Volume (#), Cost ($), Conversion (%)
• Measure conversion to target customer actions
• Test audience segments, campaign themes, Call-To-Action (CTAs)
[Gradually] Match Channel Costs => Revenue Potential

• Increase Vol. & Conversion, Decrease Cost, Optimize for Revenue Potential
• Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime Value (CLV)
• Design channels that (eventually) cost <20-50% of target ATV, ARPU, CLV
Consider Costs, Scarce Resource Tradeoffs

• Actual $ expenses
• Marketing time & resources
• Product/Engineering time & resources
• Cashflow timing of expense vs. revenue, profit
One Step at a Time.
1. Make a Good Product: Activation & Retention
2. Market the Product: Acquisition & Referral
3. Make Money: Revenue & Profitability
“You probably can’t save your Ass and your Face

at the same time… choose carefully.” – DMC
Summary
• Measure Stuff. Keep It Simple.

• 5 Steps: Startup Metrics for Pirates (AARRR!)
• 3 Items: Biz Model, Conversion, Mktg Channels
• Iterate & Optimize. Feedback Loop. (Loop. Loop).
• One Step at a Time.
Links & Resources
Additional References:
• “Influence: The Psychology of Persuasion”, Robert Cialdini (book)
• “Putting the Fun in Functional”, Amy Jo Kim (etech 2006 preso)
• “Futuristic Play”, Andrew Chen (blog)
• “Don’t Make Me Think”, Steve Krug (book)
• “Designing for the Social Web”, Joshua Porter (book, website)
• “Startup Lessons Learned”, Eric Ries (blog)
• “Customer Development Methodology” Steve Blank (presentation, blog)
• “Startup-Marketing.com”, Sean Ellis (blog)
Dan Olsen
CEO,
YourVersion
Web 2.0 Expo
Apr 3, 2009
How to Use the Force of
Metrics to Optimize your
The Force of Metrics is Real
The Force of Metrics?

Really?
Approaching Your Product and
Business as an Optimization
Exercise
Given reality as it exists today,

optimize our results
subject to our resource constraints.
Copyright © 2009 Olsen Solutions LLC

Define the Equation of your
Business
“Peeling the Onion”
Profit = Revenue - Cost
Unique Visitors x Ad Revenue per Visitor
Impressions/Visitor x Effective CPM / 1000
Visits/Visitor x Pageviews/Visit x
Impressions/PV
New Visitors + Returning Visitors
Invited Visitors + Uninvited Visitors
# of Users Sending Invites x Invites Sent/User x Invite

Conversion Rate

How to Track Your Metrics
 Need third-party analytic tools PLUS home-grown
metrics
 Track each metricPage
Unique as dailyAd
time New
series
User …
Date Visitors views Revenue Sign-ups
4/24/08 10,100 29,600 25 490
4/25/08 10,500 27,100 24 480
 Create ratios from primary metrics: X / Y

 Example: How good is your registration page?
 Okay: # of registered users per day
 Better: registration conversion rate =
# registered users / # uniques to reg page

Analyzing the Value of Product
Ideas
Importance and Satisfaction
 To offer a good customer value
proposition:
Meet High Importance needs with High
100 98
Satisfaction
95
Grea
t
84 87
90 Bad
85 79 86
70 84
55 80
Importance
80
75 72
80
70
75
65
60
55
41
50
40 50 60 70 80 90 100
Satisfaction
See Anthony Ulwick’s “What Customers Want”

Prioritizing Product Ideas by
ROI
Return (Value Created)
?
4
Idea D
3
Idea A Idea B
2
Idea C
1
Idea F
1 2 3 4
Investment (developer-
weeks) Copyright © 2009 Olsen Solutions LLC
Marrying UI Design with
Metrics
 Think of “Ease of
use” as distinct
from the
functionality
 User Interface
elements matter
 Position
 Layout
 Size
 Color
 Font
 Text copy
 Interaction design
 Navigation
Improving Signup Page
Conversion
New Registered
100%
90%
Improving Sign
In/Registration Flow
Open
Accou
nt 55%
44% Regist Registrati (24% of Total)
er on
Process
45% drop off
64%
(20% of
of Total Accoun
total)
36% t
83% 30% overall Selectio
56% Sign in (46% of Total)(14% of Total) drop off n
for this
step
Forget 70% Change 80%

Password (32% of Password (26% of
Total) Total)
17% drop 20% drop
off (10% of off
total) (6% of total)
Redesigned User Flow
Improved Registration
Conversion Rate
Abandonment Rate (7 Day Moving Average)
Steps 1-2
80%
70%
Abandonment Rate (7 Day Moving Average)
60%
50%
40%
30%
Released 37% improvement
New Design in conversion rate
20%
10%
0%
1/6/03
10/7/02
11/4/02
12/2/02
1/13/03
1/20/03
12/9/02
10/14/02
10/21/02
10/28/02
11/11/02
11/18/02
11/25/02
12/16/02
12/30/02
12/23/02
Optimization through Iteration:
Continuous Improvement
Measure
the metric
Analyze
Learning the metric
Gaining knowledge:
• Market Identify top
• Customer opportunities
to improve
• Domain
• Usability Design &
develop the
enhancement
Launch the
enhancement
Summary: Using the Force of
Metrics
 Define what success means
 Equationof your business
 Customer value proposition
 Instrument your site and track key

metrics
 Identify opportunities and prioritize
by ROI
 Launch, learn, and iterate

May the Force
www.yourversion.com of Metrics be
dan@yourversion.com with you!
@danolsen
Dogster, Inc. Case Study
Ted Rheingold
blog.dogster.com / @tedr
How actionable metrics informed us

we were chasing our tail the wrong
key results yet still guided us to the
primary objective … bacon making
money
Dogster, Inc.
Sites & Services
• Dogster.com, Catster.com, Snuzzy.com
• Togethertag.com
5 year old profitable business. No VC, Angel only
Primary Revenue Source
• Directly sold ad inventory
Secondary Sources
• User subscriptions
• Virtual currency
• Together Tag (Physical dog & cat ID tags w/ always-on web connecting
service)
Marketing Initiative Feb ‘07
Goal: 2,000 New Registrants a Day
Marketed sites via AdSense and BlogAds

At launch we linked ads to our homepages
Quickly made a general landing page with intro
info and big link to register
Then made dynamic landing with relevant text
and registration form.
This significantly increased percentage of ad
clickers that became registrants
LANDING PAGE Welcome
Landing Page Cute Overload
LANDING PAGE Daily Candy
LADING PAGE Dog Info
REGISTRATION PAGE
-Activate
Quantitative Success Doesn’t
Mean Qualitative Success
We hit key result of 2k registrants a day

BUT only 60% were activating
Only 8% we’re making profile pages vs. 80%
that found site on their own
Real members were generating a $4 ARPU,
these were worth $0.10
Actionable Results
Within 3 months we halted all ad spending.
We were sitting on a treasure trove of what topics

engaged pet people the most.
We could drive a lot of uniques to our sites and

advertisers love uniques
HOMEPAGE - Current
CRAZY EGG Searchers
Dogster Search Traffic
Ted Rheingold
Top Dog, Dogster, Inc.
blog.dogster.com
twitter: @tedr
Web2Expo - 2009
Questions? #metrics
@davemcclure @danolsen
@tedr
Appendix
Startup Metrics
Activation
Activation
SEO Campaigns,
SEM PR Contests Biz
Social
Networks Dev
Blogs Affiliates Activation Criteria:
Apps & Direct,
Widgets Email Tel, TV • 10-30+ seconds
Domains • 2-3+ page views
• 3-5+ clicks
• 1 key feature usage
do LOTS of landing page

& A/B tests –
make lots of dumb
guesses & iterate FAST
Website.com
Activation
What do users do on their first visit?
Example Activation Goals

• Click on something!
• Account sign up / Emails
• Referrals / Tell a friend
• Widgets / Embeds
• Low Bounce Rate
Activation Tips
• Less is more
• Focus on user experience / usability
• Provide incentives & call to actions
• Test and iterate continuously
Activation
What do users do on their first visit?
Key Metrics to Track

 Pages per visit
 Time on site
 Conversions
Activation
Tools
Crazy Egg (Visual Click Mapping)
http://crazyegg.com
Google Website Optimizer (A/B & Multivariate Testing)
http://google.com/websiteoptimizer
Marketo.com (B2B Lead Generation Management)
http://marketo.com
Resources
Experimentation and Testing: A Primer
kaushik.net/avinash/2006/05/experimentation-and-testing-a-primer.html
Landing Page Design Toolbox: 100 Tips & Tools
http://tinyurl.com/326co6
Landing Page Tutorials & Case Studies
http://www.copyblogger.com/landing-pages/
101 Easy Easy to use Google Website Optimizer
http://conversion-rate-experts.com/articles/101-google-website-optimizer-tips/
Startup Metrics
Retention
Retention
SEO Campaigns,
Automated emails: SEM PR Contests Biz
Social
Networks Dev
• lifecycle emails @ +3, +7, +30d Blogs Affiliates
Apps & Direct,
• status / “best of” weekly/monthly Widgets Email Tel, TV
• “something happened” emails Domains
BUT:
• make it easy to unsubscribe
Emails &
Alerts
Blogs, RSS,
News Feeds
Tip on emails:
• > 80% or more on SUBJECT LINE
System Events &
• < 20% or less on BODY TEXT Time-based
Features
Website.com
Retention
How do users come back? How often?
Cohort Analysis:
Distrib of Visits over Time
•
Rate of Decay
•
Effective Customer Lifecycle
•
Retention Methods
Automated Emails
 * Track open rate / CTR / Quantity
RSS / News Feeds
 * Track % viewed / CTR / Quantity
Widgets / Embeds
 * Track impressions / CTR / Quantity
Retention
Example Retention Goals

• 1 - 3+ visits per month
• 20% open rate / 2% CTR
• High deliverability / Low spam rating
• Long customer life cycle / Low decay
• Identify fanatics and cheerleaders
Retention Tips
• Email is simple and it works
• BUT make unsubscribe easy
• 80% subject line / 20% body text
• ACTUALLY 99% subject line / 1% body text
• Fanatics = virality + affiliate channel (bloggers?)
Retention
Key Metrics to Track

 Source
 Quantity
 Conversions
 Visitor Loyalty
 Session Length
Retention
Tools
Campaign Monitor / MailChimp (email newsletter software)
campaignmonitor.com / mailchimp.com
TriggerMail (site-centric email management)
triggermail.net
Litmus (email and website design testing - clients / browsers)
litmusapp.com
Resources
30 free HTML email templates
campaignmonitor.com/resources/templates.aspx
Best Practices in Writing Email Subject Lines
mailchimp.com/resources/best-practices-in-writing-email-subject-
lines.phtml
Learning Viral: Viral Emails of Tagged.com
okdork.com/2008/04/10/learning-viral-studying-taggedcom/
Startup Metrics
Acquisition
Acquisition
SEO Campaigns,
SEM PR Contests Biz
Social
Networks Dev
Blogs Affiliates
Apps & Direct,
Domains
Marketing Channels:
• largest-volume (#)
• lowest-cost ($)
• best-performing (%)
Website.com
Acquisition
Where are users coming from?
Acquisition Methods
 SEO / SEM
 Blogs
 Email
 Social Media &
Social Networks
 Domains
Acquisition
Keyword Vocabulary
Top 10 - 100 words

• Your Brand / Products
• Customer Needs / Benefits
• Competitor’s Brand / Products
• Semantic Equivalents
• Misspellings
Things to analyze
• Sources
• Volume
• Cost
• Conversion
Acquisition
Where are users coming from?
Key Metrics to Track Example

 Quantity (#)
 Cost ($)
 Conversions (%)
Acquisition
Tools
Google Analytics (web analytics)
google.com/analytics
Google Keyword Tool (keyword research tool)
adwords.google.com/select/KeywordToolExternal
SEO Book Tools (SEO related tools)
tools.seobook.com
Resources
SEO Book Blog
seobook.com/blog
The Social Media Manual: Read Before You Play
searchengineland.com/071120-144401.php
Strategies to ruthlessly acquire users
andrewchen.typepad.com/andrew_chens_blog/2007/04/10_obvious_stra.ht
ml
Startup Metrics
Referral
Referral
SEO Campaigns,
SEM PR Contests Biz
Social
Networks Dev
Blogs Affiliates
Apps & Direct,
Domains
Acquisition
Emails &
Alerts
on
Blogs, RSS,
News Feeds n t i
R et e
Focus on driving referrals

System Events &
Time-based
*after* users have a
Features “happy” experience;
avg score >= 8 out of 10
Website.com
Referral
How do users refer others?
Referral Methods
 Send to Friend:
Email / IM
 Social Media
 Widgets / Embeds
 Affiliates
Referral
Viral Growth Factor
Viral Growth Factor = X * Y * Z

X = % of users who invite other people
Y = average # of people that they invited
Z = % of users who accepted an invitation
A viral growth factor > 1 means an exponential organic user acquisition.

Referral
Tools
Gigya (social media distribution & tracking tool)
gigya.com
ShareThis / AddThis (sharing buttons)
sharethis.com / addthis.com
GetMyContacts (PHP contacts importing & invitation software)
getmycontacts.com
Resources
Seven Ways to GO VIRAL
lsvp.wordpress.com/2007/03/02/seven-ways-to-go-viral/
What’s your viral loop? Understanding the engine of adoption
andrewchen.typepad.com/andrew_chens_blog/2007/07/whats-your-
vira.html
Metrics: Where Users Come From
slideshare.net/guest2968b8/rockyou-snap-summit-32508
Startup Metrics
Revenue
Revenue
SEO Campaigns,
SEM PR Contests Biz
Social
Networks Dev
Blogs Affiliates
Apps & Direct,
Domains
Acquisition
Emails &
Alerts
on
Blogs, RSS,
News Feeds n t i
R et e
Ads, Lead Gen, Biz Dev
Re
System Events & Subscriptions,
ve
Time-based
ECommerce
Features
nu
This is the part *you* Website.com e $$
still have to figure out… $
(we don’t know jack
about your business)
Revenue
How do you make money?
Revenue Tips
• Don’t Rely on AdSense (only)
• Start Free => 2% “Freemium”
• Subscription / Recurring transactions
• Qualify your customers -> Lead generation
(arbitrage)
• Sell something! (physical or virtual)
Revenue
Resources & Tools
Revenue Metrics (Andrew Chen)
http://tinyurl.com/47r63a
How to Create a Profitable “Freemium” Startup (Andrew Chen)
http://tinyurl.com/8z9ygk
2008 Affiliate Marketing Review (Scott Jangro)
http://tinyurl.com/86wak4
Be Bold. Be Humble.
 20% Inspiration + 80% Perspiration

 Long-term: Audacity + Creative Inspiration
 Short-term: Humility + Analytic Rigor
Stuff That Matters:

• Passion for Problem/Solution + Hypothesis of Customer Lifecycle
• 1-page Business Model: Prioritized List of (Users + Conversions)
• Critical, Few, Actionable Metrics + Dashboard of Measured User Behavior
• 1-pg Marketing Plan: (Channels + Campaigns) * (Volume, Cost, Conv %)
• Velocity of (Product Execution + Cycle Time of Testing) * Iteration
Passion vs. Precision
• “Solve a Problem” = Passion
• “Optimize the Solution” = Precision
 Long-term: Audacity + Creative Inspiration

 Short-term: Humility + Analytic Rigor
BUT:
• Precision” is Illusion; “data” is fuzzy
• Collecting & Interpreting data takes time & effort
• Keep Metrics Simple & Actionable
Types of Measurement
1. Qualitative: Usability Testing / Session Monitoring

• Watch users, guess problems & solutions from small # of users
1. Quantitative: Traffic Analysis / User Engagement

• Track users, usage, conv %'s for empirical sample # of users
1. Comparative: A/B, Multivariate Testing

• Compare what users do in one scenario vs another
• Measure which copy/graphics/UI are most effective
1. Competitive: Monitoring & Tracking Competitors

• Track competitor activity & compare against yours (if possible)
• Compare channels, keyword traffic, demographics, user sat, etc.
Design, Optimize for Conversion
Kano Model: User Needs &
Satisfaction
User
Satisfaction Delighter
(wow)
Performance
(more is
better)
Need Need
not fully
met Must Have met
Needs &
features
migrate over
time
User Copyright © 2008 Olsen Solutions LLC
Olsen’s Hierarchy of Web User
Needs
(adapted
Customer’s Perspective
from Maslow)
What does it mean to us?
How easy to use is it? Usability & Design
Satisfaction
Increasing
Does the functionality
Feature Set
meet my needs?
Does the functionality work?

Absence of Bugs
Dissatisfaction
Decreasing
Is the site fast enough?
Page Load Time
Is the site up when I want to use it?

Uptime

Adding Metrics and
Optimization to your Product
Process
Site
Business Product Prioritized
Plan Objectiv Objectiv Feature List Level
es es
Scopin Featur
g e Level
Requiremen
Desig ts & Design
n
Code Test Launc
Develop h
Metrics &
Optimize User
Feedback
Using Metrics to Optimize the
Equation of your Business
 What are the metrics for your business?
 Where is current value for each metric?
 How many resources to “move” each
metric?
 Developer-hours, time, money
 Which metrics have highest ROI
opportunities?
Metric A Metric B Metric C
Good ROI Bad ROI Great ROI
Retur
Retur
Retur
n
n
n
Investment Investment Investment

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Web 2.

Become a Web 2.0 Jedi:

Web 2.0 Expo SF

Dave McClure, Founders Fund

• Measure Stuff. Keep It Simple.

Appendix (we won’t have time)

1. # Users, Bandwidth = Bigger.

 Collect Usage Metrics in Real-Time

• Progress ≠ Features (Less = More)

• Define States of User + Business Value

• Acquisition: users come to site from various channels

(note: If you’re in a hurry,

Ads, Lead Gen, Biz Dev

Can be one of the following:

Note: eventually need to turn Users/Usage -> Money

Q: Which of these is best? How do you know?

• Define 1-Page Biz Model: customer segments + desired actions / behaviors

Hypothesize Customer Lifecycle

Q1: What types of people use your website?

Q: What Features to Build? Why? When are you “Done”?

• Wireframes = Conversion Steps

Acquisition Visitors -> Site/Widget/Landing Page 60% $.05

Activation “Happy” 1st Visit; Usage/Signup 15% $.25

• Design & Test Multiple Marketing Channels + Campaigns

[Gradually] Match Channel Costs => Revenue Potential

Consider Costs, Scarce Resource Tradeoffs

“You probably can’t save your Ass and your Face

• Measure Stuff. Keep It Simple.

The Force of Metrics?

Given reality as it exists today,

Copyright © 2009 Olsen Solutions LLC

Unique Visitors x Ad Revenue per Visitor

Impressions/Visitor x Effective CPM / 1000

Invited Visitors + Uninvited Visitors

# of Users Sending Invites x Invites Sent/User x Invite

Copyright © 2009 Olsen Solutions LLC

4/25/08 10,500 27,100 24 480

 Create ratios from primary metrics: X / Y

Copyright © 2009 Olsen Solutions LLC

See Anthony Ulwick’s “What Customers Want”

Forget 70% Change 80%

 Instrument your site and track key

Copyright © 2009 Olsen Solutions LLC

How actionable metrics informed us

Marketed sites via AdSense and BlogAds

We hit key result of 2k registrants a day

Within 3 months we halted all ad spending.

We were sitting on a treasure trove of what topics

We could drive a lot of uniques to our sites and

do LOTS of landing page

Example Activation Goals

Key Metrics to Track

Example Retention Goals

Key Metrics to Track

Top 10 - 100 words

Key Metrics to Track Example

Focus on driving referrals

Viral Growth Factor = X * Y * Z

A viral growth factor > 1 means an exponential organic user acquisition.

Ads, Lead Gen, Biz Dev

 20% Inspiration + 80% Perspiration

Stuff That Matters:

 Long-term: Audacity + Creative Inspiration