the growth hacker's guide to analytics: how to get to data-driven growth in 8 steps
TRANSCRIPT
THE GROWTH HACKER’S GUIDE TO ANALYTICSHow to get to data driven growth in 8 steps?
growthagency.co
Hi, I’m Eveline
@evelinesmet
Career path
The Farm BBDO Startup Free-
lance
Data-driven growth marketing
Passion
THE GROWTH HACKER’S GUIDE TO ANALYTICSHow to get to data driven growth in 8 steps?
Clients
Who checks their analytics on a regular base?
Q
Who knows their CAC, CLV and conversion rate by heart?
Q
My goal: Making you guys more data-driven!
I will be showing a lot of frameworks today
But first..Why do you need analytics?
Growth hackers are a bit evil..
Analytics keep a growth hacker honest
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After months of development, the Etsy team launched a great new feature!
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FAIL
Time on site: Shopping cart size:
Analytics shift the focus of growth hackers
Where to begin??
GROWTHAGENCY.CO
We have a CPC of 2€, is that good?
World’s first banner vs Coolblue banner
World’s first banner vs Coolblue banner
0€ IN REVENUE 32.900€ IN REVENUE
Forget about CTR, Sales matter!
Find your focus based on your data
Analytics predict the future for growth hackers
Mobile vs desktop visits
Analytics make success repeatable
Make a business case, then repeat
Convinced?
GROWTHAGENCY.CO
The growth hacker’s guide to analytics
How to get to data driven growth in 8 steps?
Set actionable goals
1
MORE SALES
MORE IPAD SALESIN BELGIUM
MORE ENGAGEMENT
15% MORE ENGAGEMENT
DOUBLE THE SALES
INCREASE SALES BY 10%
MORE FACEBOOK FANS
5% MORE LEADS VIA SOCIAL
MORE INBOUND LEADS
INCREASE INBOUND LEADS BY 25% BY 2017
Marketing = Business development
Marketing goals = business goals
GROWTHAGENCY.CO
BY INCREASING RETENTION
BY INCREASING DAILY ACTIVE USERS
GROW MY COMPANY
Example actionable goals
INCREASE CONTENT CREATION BY MEMBERS BY 15% BY END 2016
EDUCATE MEMBERS ABOUT CONTENT CREATION VIA
SHOW CONTENT FEATURES ON THE HOMEPAGE
INCLUDE CONTENT CREATION IN ONBOARDING EXPERIENCE
Track the right metrics
2
5 things to considerQualitative vs quantitative metrics Vanity vs actionable metrics Exploratory vs reporting metrics Leading vs lagging metrics Correlated vs causal metrics
Discover qualitatively & prove quantitatively
BewareOf vanity metrics! They will make you feel good, but they will not change the way you act.
Email marketing Social media Paid search Display advertising
VANITY METRICS VS ACTIONABLE METRICS
OPEN RATE
LEADS GENERATED
# FANS
REFERRAL RATE
AD POSITION
COST PER ACQUISITION
IMPRESSIONS
COST PER LEAD
Trying to find interesting insights and unexpected learnings
Keeping you up to date with predictable, managerial insights
Do ads with pictures of cats work better?
How many clicks will our ad budget get us?
EXPLORATORY REPORTING
Leading vs lagging metrics
makes the news Metric today that shows prediction of tomorrow We have 15% more leads this month. If we close half, we will increase sales
reports the news Historical metric that shows how you’re doing We had a 15% increase in sales last month
REPORTS THE NEWSMAKES THE NEWS
Correlated vs causal metrics
Correlated
Causal Causal
Most growing job category!
Oh wait, it’s June..
Twitter case: causation between # people followed & returning users
GROWTHAGENCY.CO
Twitter focuses on making sure beginning Tweeps start following users
Some good metrics for growth% net adds conversion rate % daily active users engagement rate referral rate LTV to CAC rate
TRACK EVERYTHING!
Understand your conversion funnel
3
Growth hacking in each stage of the funnel
KPI’s per stage of the funnel
Conversion funnel online shopping site
Conversion funnel online shopping site
COST PER ACQUISITION = 25
LIFETIME REVENUE PER USER = 75
LIFETIME VALUE = 100
First, get the basics right
Optimise for each stage in the funnel
Channel testing
No e-commerce? No problemTRACK INCOMING ENQUIRIES
TRACK NEWSLETTER OPT-INS
TRACK NUMBER OF CALLS
TRACK NEW SUBSCRIBERS
Choose your one metric that matters -OMTM-
4
Data overload
A wealth of information creates a poverty of attention
Your OMTM is your true north
GROWTHAGENCY.CO
IT CREATES FOCUS FOR THE ENTIRE COMPANY
IT INSPIRES AN INTERNAL CULTURE OF EXPERIMENTATION
IT ANSWERS THE MOST IMPORTANT QUESTIONS FOR YOUR BUSINESS
Why do you choose OMTM?
Do you know your OMTM?
CUSTOMER LIFETIME VALUE
DAILY ACTIVE USERS
COST PER ENGAGEMENT
CUSTOMER ACQUISITION COST
INTERVIEWS (QUANTITATIVE) & SURVEYS (QUALITATIVE)empathy
stickiness
virality
revenue
scale
e-commerce
2 sided market
SAAS Mobile app
User gen content Media
LOYALTY CONVERSION
INVENTORY LISTINGS
ENGAGEMENT CHURN
DOWNLOADS CHURN
VIRALITY
CONTENT SPAM
TRAFFIC VISITS
RETURNS
CAC SHARES
REACTIVATION
CAC SHARING
INHERENT VIRALITY
CAC
WOM APP RATINGS
CAC
INVITES SHARING
CONTENT VIRALITY
TRANSACTION CLV
CONVERSION %
TRANSACTION COMMISSION
UPSELLING CAC CLV
CLV ARPDAU
ADS DONATIONS
CPE AFFILIATE % EYEBALLS
AFFILIATES WHITE LABEL
OTHER VERTICALS
API MARKETPLACE
SPINOFFS PUBLISHERS
ANALYTICS USER DATA
SYNDICATION LICENSES
BU
SIN
ESS
STA
GES
BUSINESS MODEL TYPES
examples
CASE STUDYMOZ
Scale
STAGE
SAAS
MODEL
Net adds
OMTM
Net adds = growth
CASE STUDYHEADSPACE
Virality
STAGE
SaaS (Freemium)
MODEL
Paid Churn
OMTM
Paid churn = loss
GROWTHAGENCY.CO
PICK ONE METRIC YOU WANT TO GROW
WHICH ACTIONS DRIVE TODAY’S GROWTH?
WHICH STAGE IS YOUR BUSINESS IN?
Exercise // discussion
Stop reporting Start experimenting!
5
And analytics get a looooot less boring!
assumption: hosts gets more bookings if listing has better pictures
MVP
ASSUMPTION
AirBnB case
TESTING
RESULTS
DECISION
NICER PHOTOGRAPHY HELPS AIRBNB’S BUSINESS = CAUSATION
20 PHOTOGRAPHERS IN THE FIELD
COMPARE LISTINGS WITH A CONTROL GROUP
2 TO 3 TIMES MORE BOOKINGS WITH PROFESSIONAL PICTURES
LAUNCH PHOTOGRAPHY AS AN OPTIONAL FEATURE FOR HOSTS
AirBnB case
Use your insights to test causation & find your growth hacks
6
FIND CORRELATION
CORRELATION LETS YOU PREDICT THE FUTURE
CAUSATION LETS YOU CHANGE THE FUTURE
I WILL HAVE MORE THAN 3000 VISITS AND 50 PAYING CUSTOMERS NEXT MONTH
IF I CAN MAKE SURE FIRST TIME VISITORS SIGN UP FOR THE NEWSLETTER, I WILL INCREASE SALES WITH 10% IN THE NEXT 3 MONTHS
Find correlation & causation
TEST CAUSALITY OPTIMISE THE CAUSAL FACTOR
A leading causal connection is the analytics superpower
Work in short cycles
7
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Test new features before implementing them
GROWTHAGENCY.CO
The lean analytics cycle
Find ways to repeatable growth = scale
8
comes from understanding your best user and how to find & acquire more of them
Repeatable growth
Why is Nigerian spam so badly written?
BAD LANGUAGE
1000 EMAILS SENT 1000 EMAILS SENT
10% CONVERSION = 100 RESPONSES
0,1% CONVERSION = 1 OR 2 RESPONSES
1 FOOL & THEIR MONEY1 FOOL & THEIR MONEY
PROPER ENGLISH
SCALABLE NOT SCALABLE
Nigerian spammers have learned to understand their target market & their customers
TRACK THE RIGHT METRICS
UNDERSTAND YOUR CONVERSION FUNNEL
SET ACTIONABLE GOALS
8 steps to growth: checklist
CHOOSE YOUR OMTM
TEST CAUSATION & FIND YOUR GROWTH HACKS
WORK IN SHORT CYCLES
FIND WAYS TO REPEATABLE GROWTH
STOP REPORTING, START EXPERIMENTING
Sourceshttp://leananalyticsbook.com/ https://www.quicksprout.com/ https://growthhackers.com/ http://theleanstartup.com/ http://learn.ryanholiday.net/