Finding the one growth metric that matters
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The document discusses the importance of identifying key growth metrics for businesses, emphasizing that not all data is valuable and cautioning against vanity metrics. It outlines a five-step process for selecting effective metrics based on business objectives and offers examples of key performance indicators across different business types. Additionally, it highlights the role of analytics in understanding customer behaviors and improving performance.
Finding the one growth metric that matters
- 1. t Turn your content engine into a growth engine.! Finding the One Growth Metric That Matters
- 2. Marketers are drowning in data.
- 3. So Much to Measure…So Little Time • Marketers are overwhelmed with more data than ever.! • The problem is not the shortage of numbers and information—it’s the lack of insights that come from all the numbers.! • The truth is that for any business at any stage there are just a few metrics that really matter.!
- 4. But what’s the point with all these numbers?
- 5. What’s most important here isn’t necessarily what’s most important to you.!
- 6. Go Beyond Data to Insights http://www.kaushik.net/avinash/rethink-web-analytics-introducing-web-analytics-20/!
- 7. Avoid These Metrics Mistakes • Using vanity metrics that accumulate over time but tell you little about the current performance of your business (e.g. page views)! • Tracking numbers that you can’t act on or work to improve.! • Using averages to determine overall performance. (e.g. bounce rate across all website visitors)!
- 8. What Does a Good Metric Look Like? Simple to Understand — You shouldn’t have to spend a lot of time explaining the data to the rest of your team.! Relevant — Are you reporting on data that doesn’t actually matter to your business?! Timely — Data that lags isn’t as useful as data that’s timely. Last quarter’s lead totals don’t help with this week’s marketing budget.! Instantly Useful — Team members should be able to understand what should be done in response to the metric. ! http://www.kaushik.net/avinash/web-metrics-demystified/!
- 9. Metrics Are Stage Dependent • Growth — Optimization, Scale, NPS! • Transition to Growth — Conversion Rates! • Product/Market Fit — Must- Have Score!
- 10. How do you choose the right metrics for you?
- 12. Focus on Three Key Areas Acquisition — How you find and acquire new customers! Behavior — What are the customer behaviors that result in engagement and retention?! Outcomes — What are the outcomes that are important to your business? Macro vs. micro conversions.! http://www.kaushik.net/avinash/web-metrics-demystified/!
- 13. Micro Conversions Macro Conversions Email subscription! ! Whitepaper download! ! Page-depth! ! Share an article! Purchase! ! Fill out a lead form! ! Start a trial! !
- 14. Avinash’s 5 Steps to Metrics That Matter 1. Identify business objectives. Why do we exist and what are we trying to accomplish?! 2. Set the goals for each objective. What does success look like?! 3. Establish Key Performance Indicators. What are the numbers that tell you if you’re successful or not?! 4. Create targets. What is the expected or desired result for the KPI?! 5. Build segments. What will we analyze to see if we are successful or not?! http://www.kaushik.net/avinash/web-metrics-demystified/!
- 15. Example: Amazon Objective: sell stuff! Goal: increase revenue! KPI: average order size! Not a KPI: Retweets! Target: $42!
- 16. Example: Salesforce Objective: more accounts! Goal: increase revenue! KPI: average revenue per user! Not a KPI: pageviews! Target: $95!
- 17. Metrics are Business Type Dependent Transactional — Someone makes a purchase.! Collaborative — Someone creates something.! SaaS — Someone subscribes to your software.! Media — Someone reads or consumes something you’ve created.! Game — Someone plays a game you’ve created.! App — Someone uses and buys your application for a fee.! http://leananalyticsbook.com/one-metric-that-matters/!
- 18. Transactional Metrics • Average Order Value — The average dollar amounts of each order.! • Customer Lifetime Value — The total profit generated by a customer over time.! • Revenue Per Visitor — The revenue generated for every new user to your site.!
- 19. SaaS Metrics • Monthly Recurring Revenue — The monthly booked revenue that recurs due to customer subscriptions.! • Churn rate — The percentage of customers who cancel their subscription in a given period (usually monthly).! • Trial activation rate — The number of free trial users who ultimately becoming paying customers. !
- 20. Media Metrics • Visitor loyalty — The number of visits by an individual user in a given time period.! • Advertising Clickthroughs — The rate at which people click on advertising units on the site.! • Page depth — The number of pages seen by visitors during a visit. !
- 21. Finding Your OMTM is a Process
- 22. Next Steps Review your analytics — What are you tracking? What should you start tracking? What should you stop tracking?! Find what really matters — Based on your business objectives and goals, are you tracking what matters most?! Find your OMTM — One or critical few. What are they, who owns them?!
- 24. Thank You We hope this was helpful. Want to discuss these slides further? Ask us about them on GrowthHackers.com
- 25. Sean Ellis, CEO Qualaroo (@seanellis) Sean Ellis is the CEO of Qualaroo and founder of GrowthHackers.com. Prior to Qualaroo, Sean held marketing leadership roles with breakout companies including Dropbox, LogMeIn (IPO), Uproar (IPO), Eventbrite and Lookout. Peter Borden, Growth Hacker SumAll Peter’s a growth hacker and full-stack marketer who has worked on a wide array of projects, from free consumer products, to e-commerce, to enterprise-level B2B solutions. When founders and CEOs need someone to build the growth and marketing engines for their business, he’s the man they call.
- 26. About Qualaroo • Analytics are great at telling you what happened—Qualaroo tells you why.! • Core part of the Conversion Optimization Stack! • Guessing your way through ! A/B tests is too expensive!
- 27. About SumAll • Analytics for Everything. SumAll is the only tool you need for your social media, e-mail, ads, payments, and e-commerce data. All in one place.! • Your Data Delivered Every Morning. Get all your vital data sent to your inbox with customized daily and weekly e-mails. Key takeaways, important insights, and comparisons from the prior week to the present are all included.!