Activation, retention & engagement strategy

transcript

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Activation, Retention & Engagement Strategy

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Where You Can Find Today’s Slides

http://www.bit.ly/emetelka

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Introductions

☐ Name

☐ Where you work/what you’re working on

☐ Goals for today

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I'm Eric Metelka, founder and CEO of Full Stack Marketing, a full featured digital marketing consulting firm for startups. I am a former management consultant and the former digital marketing manager at BestVendor.

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My Goals for Today

You know how to choose the one metric that matters to your product or brand

You are able to guide and construct a usability test

You can align user behaviors and motivations to create engagement

You understand the tactics to increase referrals in your product

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What I Am Going to Cover

☐ Introduction & Definitions – 30 mins

☐ Matching Metrics - 30 mins

☐ Activation – 30 mins

☐ Engagement – 30 mins

☐ Referral & Virality – 30 mins

☐ Recap/Evaluation/Questions - 15 mins

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Definitions

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Acquisition – noun /ˌækwɪˈzɪʃ(ə)n/• The process of buying something or

obtaining it in some other way• When a customer comes to the site from

various channels or downloads an app

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Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Examples of Acquisition(note: not actuals)

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Activation – noun /ˌæktɪˈveɪʃ(ə)n/• Making a piece of equipment or a process start

working• Starting the use of a product, often by creating a

login • In ecommerce, starting the shopping process by

completing at least transaction• In Mobile, using the basic features of the app• Customer enjoys 1st visit: "happy" user

experience

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70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

Activation Acct Signup(includes profile data)

Examples of Activation(note: not actuals)

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Engagement - noun /ɪnˈɡeɪdʒmənt/• The feeling of being involved in a

particular activity• The period of time during which a user

such stays involved with your product• Customers come back and visit site

multiple times

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70% $.05

30% $.25

Engagement Email Open / RSS view -> Clickthru 3% $2

Engagement Repeat Visitor (3+ visits in first 30 days)

Examples of Engagement(note: not actuals)

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Virality- noun /vʌɪˈralɪti/• The tendency of an image, video, or piece

of information to be circulated rapidly and widely from one Internet user to another

• Customers like product enough to refer others

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70% $.05

30% $.25

Engagement Email Open / RSS view -> Clickthru 3% $2

Engagement Repeat Visitor (3+ visits in first 30 days)

Virality Refer 1+ users who visit site 2% $3

Virality Refer 1+ users who activate 1% $10

Examples of Virality(note: not actuals)

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Matching Metrics to Your Business

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Types of Metrics & Measurement

• Qualitative: Usability Testing / Session Monitoring– Watch what users do, figure out problems & solutions from small # of

• Quantitative: Traffic Analysis / User Engagement– Report what users do, track usage & conversion %'s for all or empirical

sample # of users

• Comparative: A/B, Multivariate Testing– Compare what users do in one scenario vs another, see which

copy/graphics/UI are most effective

• Competitive: Monitoring & Tracking Competitors– Track competitor activity & compare against yours; if possible compare

channels, keyword traffic, demographic targeting, user satisfaction, etc.

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Measurement Tools

• Qualitative: Usability Testing / Session Monitoring– Qualtrics (surveys), CrazyEgg (heatmap), TechSmith Morae / UserVue

(ux recording), RobotReplay, TapeFailure.

• Quantitative: Traffic Analysis / User Engagement– Google Analytics (free), Mixpanel, Kissmetrics, Flurry, MyBlogLog,

ClickTracks, Index Tools, Visual Sciences / Webside Story, Omniture, WebTrends.

• Comparative: A/B, Multivariate Testing– Google Website Optimizer, SiteSpect, Optimost, Offermatica, Vertster,

Kefta.

• Competitive: Monitoring & Tracking Competitors– Quantcast, Compete.com, Alexa, Hitwise, Comscore, Nielsens.

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Customer Funnel

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Metric Funnel

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Your Business Model Your Business Stage

(Monetization) (Lifecycle)

• Ecommerce• 2 sided market• SaaS• Mobile app• User-generated content• Media

• Empathy• Stickiness• Virality• Revenue• Scale

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Inventory, listings

SEM, sharing

Engagement, churn

Inherent virality, CAC

Downloads, churn, virality

WoM, app ratings, CAC

Content, spam

Invites, sharing

Traffic, visits, returns

Content, virality, SEM

Loyalty, conversion

CAC, shares, reactivation

Transactions, Commission

Other verticals

Upselling, CAC, CLV

API, magic #, marketplace

CLV, ARPDAU

Spinoffs, publishers

Ads, donations

Analytics, user data

CPE, affiliate %, eyeballs

Syndication, licenses

Transactions, CLV

Affiliates, white-label

Interviews, qualitative results, quantitative scoring, surveys

E-commerce

2 Sided Market SaaS

Mobile app

User-gen content Media

Empathy

Stickiness

Virality

Revenue

(Money from transactions) (Money from active users) (Money from ad clicks)

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What metrics would you want to look at? What direction do you want the metric to be going in?

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Inventory, listings

SEM, sharing

Engagement, churn

Inherent virality, CAC

Downloads, churn, virality

WoM, app ratings, CAC

Content, spam

Invites, sharing

Traffic, visits, returns

Content, virality, SEM

Loyalty, conversion

CAC, shares, reactivation

Transactions, Commission

Other verticals

Upselling, CAC, CLV

API, magic #, marketplace

CLV, ARPDAU

Spinoffs, publishers

Ads, donations

Analytics, user data

CPE, affiliate %, eyeballs

Syndication, licenses

Transactions, CLV

Affiliates, white-label

Interviews, qualitative results, quantitative scoring, surveys

E-commerce

2 Sided Market SaaS

Mobile app

User-gen content Media

Empathy

Stickiness

Virality

Revenue

(Money from transactions) (Money from active users) (Money from ad clicks)

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Choose one actionable metric to

follow

Understand your product market

and stage

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Activation

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Website.com

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz DevCampaigns,

Contests

Direct, Tel, TV

Social Networks

Domains

Customer Funnel

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Website.com

Marketing Channels:• Largest volume (#) • Lowest cost ($)• Best performing (%)

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Contests

Direct, Tel, TV

Social Networks

Domains

Customer Funnel

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Website.com

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Contests

Direct, Tel, TV

Social Networks

Domains

Customer Funnel

2. Activation

Homepage / Landing Page

Product Features

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Website.com

Illustrative Activation Criteria:

• 10-30+ seconds

• 2-3+ page views

• 3-5+ clicks

• 1 key feature usage

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Contests

Direct, Tel, TV

Social Networks

Domains

Customer Funnel

2. Activation

Product Features

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Website.com

Illustrative Activation Criteria:

• 10-30+ seconds

• 2-3+ page views

• 3-5+ clicks

• 1 key feature usage

Do LOTS of landing page tests & A/B tests - just make lots of dumb guesses & iterate QUICK

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Contests

Direct, Tel, TV

Social Networks

Domains

Customer Funnel

2. Activation

Product Features

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How to Test Activation

• Performance - an objective measure of how well a particular website works. It is strictly utilitarian, and it is concerned primarily with effectiveness and efficiency.

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Performance Metrics

Task Test - observing the steps testers take to complete task actions

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How to Test Activation II

• Satisfaction - a subjective measure of how users feel while interacting with a website. It is concerned with how the information looks, how the content is organized, and how the user feels navigating around the site.

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Satisfaction Testing

Open-Ended Test – monitoring tester exploration of the site without specific instructions

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Implementing Testing

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Diagnosing Your Site

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Activity: Google “Jeans”

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Raise your hand when you bounce from the page

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Testing is crucial to activating new

customers

Understand the difference between

performance goals and satisfaction

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Engagement

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Website.com

2. ActivationHomepage / Landing

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel

3. ENGAGEMNETAutomated

Emails

Blogs, Content

System Events & Time-based Features

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Website.com

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel

Automated emails are simple & easy retention feature. Lifecycle emails @ +3, +7, +30d

Emails

Blogs, Content

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Website.com

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel

Emails

Blogs, Content

Event-based emails as they occur

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Website.com

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Network

sBlogs

Domains

Customer Funnel

Emails

Blogs, Content

Email newsletters weekly/monthly

Event-based emails as they occur

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Community Building - Yelp

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Citysearch had a 28-month head start and had collected more than 112,000 restaurant reviews by the time Yelp had its first restaurant review

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Yelp Members Write More Reviews

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How Did Yelp Build Community?

Tie Identity & Reputation to

Product

Encourage Quality with Signals

On-line and Off-line Rewards

Empowering Users

Member reviews rated as intelligent, fair, knowledgeable, public- spirited, and cool

Yelp members have a public profile page that records their activities

Members rewarded with “elite” status in profile Exclusive access to offline parties and events

Some members are hired as community managers

Discussion forum for further adding to the site’s social aspects

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Rewards

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Notifications of New Content

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Email Newsletters Curate Content

InterestingPersonalizedTimely

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Lifecycle Emails Re-engage Lapsed Customers

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Align user motivation, behavior, and long-

term value

Reward members for their contribution

Re-engage your customers via the

appropriate channel (Email today)

Listen to your customers and understand

how they are using your product

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Referral & Virality

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Website.com2. Activation

Product Features

4. REFERRAL

Emails & widgets

Campaigns, Contests1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networ

ksBlogs

Domains

3. RETENTIONEmails &

Alerts

Blogs, Content

Customer Funnel

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Website.com

Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10

2. Activation

Product Features

4. REFERRAL

Emails & widgets

Campaigns, Contests1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networ

ksBlogs

Domains

3. RETENTIONEmails &

Alerts

Blogs, Content

Customer Funnel

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iK Conversion %

Calculating Growth

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Number of Invitations

SentViral coefficient

Invitations Accepted

Number of Users

Number of Invitations

Calculating Growth

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Viral coefficient

Invitations Accepted

Number of Users

Calculating Growth

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You have 2000 customersThose customers invite 5000 of their

friendsOf those invitations, 500 are accepted

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How fast are you growing?Are you viral?

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How fast are you growing? K = .25Are you viral? No

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Trend to Zero

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How fast are you growing?Are you viral?

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How fast are you growing? 1.25Are you viral? Yes!

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Viral Growth

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iK Conversion %

How to Increase K

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iK Conversion %

How to Increase K

Make invites central to the product Network effects

Reward for invites Dropbox Gamification

Make sending invites easy Social sharing

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iK Conversion %

How to Increase K

Test invite creative Test invite format

Social? Email? SMS?

Test sign-up incentives Dropbox

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The Actual Formula Is a Bit More Complicated…

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The Actual Formula Is a Bit More Complicated…

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How to Increase Speed

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So Should I Put Like Buttons Everywhere?

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How can a customer create content that reaches non-customers?

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How does a customer’s experience get better when they are connected to more users?

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How does a customer benefit from reaching out to a non-user?

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How does a customer benefit from reaching out to a non-user?

What percentage of growth comes from this channel versus others?

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Conclusion

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Choose One Actionable Metric to Follow

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Testing is crucial to activating new customers

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Align user motivation, behavior, and long-term value

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Determine if and how viral growth aligns with your value proposition

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Questions?

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Digital Marketing Reading List

Kissmetrics Blog -http://blog.kissmetrics.com/ Andrew Chen – http://andrewchen.co Rand Fishkin – http://moz.com/rand SEOMoz blog – http://SEOmoz.org/blog Inbound – http://inbound.org Conversion Rate Experts -

http://www.conversion-rate-experts.com/blog/ Slideshare - http://www.slideshare.net/

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Email: e.metelka@gmail.com

Twitter: @eric3000

LinkedIn: /in/emetelka

Facebook: /e.metelka

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