Custom Calculations: Your business is unique — shouldn't your metrics be?
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This webinar discusses the significance of moving beyond high-level KPIs to custom metrics that are tailored to individual organizations, allowing deeper insights into data. It emphasizes the need for ad-hoc analysis and creative metric creation to uncover hidden opportunities within the data, ultimately fostering a data-driven culture. Participants learn how custom analytics can improve decision-making, performance feedback, and incentive structures within their teams.
![Maybe it’s not a yes/no question!
Data Democracy
Should analysts teach SQL to non-technical people?
“[Becoming a data-driven] will
never happen in your
company until people who
don’t know SQL can ask
questions on their own.”
- Ben Porterfield
Act and Refine: Data Democracy](https://image.slidesharecdn.com/metricsthatmatterwebinar1-151019150439-lva1-app6892/85/Custom-Calculations-Your-business-is-unique-shouldn-t-your-metrics-be-26-320.jpg)
Custom Calculations: Your business is unique — shouldn't your metrics be?
- 1. Custom Calculations Your business is unique — shouldn’t your metrics be? October 14, 2015 Presented by
- 2. — This webinar will be recorded — We will take questions at the end — Looker demo at the end Welcome & Webinar Overview
- 3. Anika Kuesters-Smith, Pre-Sales Analyst Levi Davis, Professional Services Analyst Meet our presenters
- 4. Moving beyond high-level KPIs Benefits of custom metrics How to identify key metrics and roll them out to the entire organization Overview for Today
- 5. Moving Beyond High-Level KPIs
- 6. The Case for High-Level Metrics Increased Engagement Using visuals to draw in the less data inclined Clarity and Priority Teams driving towards a singular goal set Data-Driven Culture Data as the source of truth
- 7. Profit is going up, up, up!!!
- 8. Even if high-level metrics look good, there are often opportunities hidden in the data Access to dashboards does not make a data-driven company Most people in an organization cannot move top-level metrics Digging deeper can yield unexpected opportunities. Most important business questions are ad hoc by nature and can’t be answered by a dashboard. Tying incentives to metrics a person has no control over is demotivating. Common Pitfalls of Standard KPIsWhat’s missing?
- 9. better title • When the entire organization can engage in ad-hoc investigations, more of the decisions being made are backed by data, and more interesting questions get surfaced. • Frees the analyst to work on innovative analysis beyond routine reporting. What happens when you dive deep?
- 10. What happens when you dive deep? Infectious Media’s client wanted to better understand their customers’ purchasing behavior. What happens when you dive deep?
- 11. What happens when you dive deep? They found that while men made the initial cable connection purchase (almost always of premium sports packages), women constituted the majority of add-on purchases, and the majority of viewers. What happens when you dive deep?
- 12. The Benefits of Custom Analytics
- 13. Who’s the better employee? • Every team, team member and project deserve data- driven performance feedback • Feedback based solely on a manager’s impression is often inaccurate and unfair
- 14. Taking Incentive Structures to the next level • Used custom metrics to create an incentive structure for the sales team • The incentives went beyond pay to actually include promotions,. • Members of the sales team had constant, real-time access to their performance metrics
- 15. Taking Incentive Structures to the next level • These performance metrics went beyond simply counting the number and size of deals • Sales people are now motivated to sell quality deals. • Promotions are automatically awarded as a function of these custom metrics! • These reports were embedded in Salesforce so the sales team would have constant visibility.
- 16. Ad Hoc Analysis ● Data-driven business process is a series of quick ad hoc analyses ● New custom metrics are developed for each new situation ● Simple questions should not have to be answered by the analyst ● (Analysts should be consulted before major data-drive business decisions)
- 17. Have a hunch? It seems like there’s a lot of money coming from North Dakota...
- 18. Test it! ● Custom metrics allow ad hoc analysis ● Custom analytics allows anyone’s hunch to be investigated ● You may need to use creativity to find the right metric
- 19. Beware of Spurious Correlations! Results need to be repeatable, based on sound business logic, and analysts still need to check results
- 20. A Story From the Field: Creating Metrics to Predict Fraud ● Wanted to catch expense fraud -- without having to review every item. ● Had previously focused on highest spenders, but weren’t detecting much fraud here.
- 21. A Story From the Field: Creating Metrics to Predict Fraud ● Among top predictors of fraud was the total number of expenses. ● Created a weighted score to surface “risky” individuals who warrant manual review - whether for a health intervention or fraud report! ● Shaved 3-5% annually off of tens of millions of annual expenses (!!) FOUR cell phone plans?!
- 22. How to Identify Key Metrics
- 23. Identifying Key Metrics Define What do we want to drive? Quantify How can we measure it? Act and Refine How do we improve?
- 24. Be creative! • If you can’t measure something directly, find a proxy • Or, measure the opposite. • Example: Can’t measure customer happiness? Can you measure • Engagement with the product? • Social media shares? • Unhappiness? Define: Be Creative!
- 25. Quantify: Set up tracking • We were delivering trainings without knowing their impact • Created quiz to measure understanding of key concepts • Gave quiz to trainees at the end of training session • Loaded results into Looker • Trainings were optimized
- 26. Maybe it’s not a yes/no question! Data Democracy Should analysts teach SQL to non-technical people? “[Becoming a data-driven] will never happen in your company until people who don’t know SQL can ask questions on their own.” - Ben Porterfield Act and Refine: Data Democracy
- 27. • How Upworthy re-imagined their measure of success to align with their organization’s goals • From Upworthy’s “About Us” Page: • Sensational and substantial. Entertaining and enlightening. That's what you can expect here: no empty calories. Just a steady stream of the most irresistibly shareable stuff you can click on without feeling bad about yourself afterwards • “20 pageviews! Zero user satisfaction!” • Daniel Mintz, Head of Data and Analytics at Upworthy How do you measure success?
- 28. Identifying Key Metrics Define Attention for meaningful content Quantify Attention Minutes Act and Refine Adjust Marketing and Engagement Strategies
- 29. The Results
- 30. The Results
- 31. Conclusions • To gain more understanding and control over your business, evaluate if you’re using the right metrics. • Create KPIs that address the goals of the organization as a whole, and of the individuals and teams within it.
- 32. Q & A
- 33. Thank you • This webinar will be posted on looker.com tomorrow. • Demo Looker at looker.com/demo or stick around for the live demo!
- 34. Thank you