Digital Marketing Priorities 2016 Brought to you by:

Digital Marketing: Key Metrics

Jill QuickData Driven Digital MarketingConsultant and Trainer

Break down the jargon, and understand the concepts needed for a solid data driven approach for your marketing.  Learn how to build a KPI dashboard with the right metrics, with insights from key industry influencers, for you to find nuggets of insights that drive your business in a profitable direction.

Recommended resourcesfor Expert members

Coming soon…Google Analytics API – Google Sheets dashboard for Expert members

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We need to get better at this data-drive-metrics-malarkey

A framework for your digital metric planning:RACE What key metrics should you use? The good, bad, lagging, leading and casual metrics Why is this hard work? Where to go from here, next steps and tips to

create your KPI dashboard

Agenda

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About Me Digital Marketing Consultant and Trainer Data Driven Approach supporting established

brands, start ups and small businesses to make the most out of digital

Lead Instructor at General Assembly Author for Smart Insights Loves finding that ‘aha moment’ that drives growth

@jillquickhttps://uk.linkedin.com/in/jillquick01 jill@quick-marketing.co.uk www.quick-marketing.co.uk

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You are not the colouring in department

The ability to track ROI gives marketing respect Finding insights backed up by data gives you a

competitive edge

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Stages of Accountability

Denial marketing is an art not a

science

Fear what if my marketing

doesn't impact revenue?

Self promotion

hey come see all my chartsConfusion

i know i should measure, i just don't know how

Accountabilityrevenue starts

withmarketing

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What stage are you?Where would you say you are in terms of your stage of marketing accountability?

1 – Denial2 – Fear3 – Confusion4 – Self-Promotion5 – Full AccountabilityNOTE: There is one answer only per vote

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The Lingo A metric is a number that gives you information

about an aspect if your business. Dimensions are attributes that give context to

what your metrics are measuring. More formally: dimensions are qualitative characteristics, identifying the who, where, and when of a particular metric

Dimensions

Metrics

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What is a KPI?A KPI is a “promoted

metrics” unique to your business

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What are you trying to achieve?CurationMe Content SaaS Business

Business Objectives

Sell more online subscriptions

Keep more customers

Up sell basic users to next package

Goal More Sales Reduce churn by 20%

Upgrade packages

KPI MMR Churn Rate Purchased Upgrades

Best Case Worst Case

£20,000£10,000

25%15%

50 accounts p/m20 accounts p/m

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Micro Goals Share content via social media Subscribe to newsletter Watch video Play game Use calculators Livechat Customise a product Add product to cart View special content Store location Property search

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Are you tracking everything?RACE Macro & Micro Goals Tracking/Goal Type

Tracking

Reach Scroll Read Event Tracking Bounce Rate Dimension in GA

Act Read Blog Dimensions in GA Watch Video Event Tracking

Live Chat Event Tracking Social Share Event Tracking

Convert Create Account Destination URL Goal

Activate Account Destination URL Goal Free Trial Destination URL Goal

Engage Buy Subscriptions Destination URL Goal Repeat Purchase Destination URL Goal Upgrade Package Event Tracking

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What do these guys say?

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If you could take 5 to the board?

Customer Lifetime Value Cost of Customer Acquisition Churn/Retention Rate by Cohort Growth Rate (of customers and revenue) Traffic & Customer Acquisition by Channel

Rand Fishkin Wizard of Moz

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Metric Overview

CUSTOMER LIFETIME

In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer.

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Metric Overview

LIFETIME VALUE (LTV)

Roughly defined, LTV is the projected revenue that a customer will generate during their lifetime. This is just looking at Simple LTV

Annual profit contribution per customer x average number of years that they remain a customer - the cost of customer acquisition.

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Metric OverviewEXAMPLE

Average subscriber is 14 months based on your churn rate

CPA is £50

They spend £14.96

Your lifetime value is

14.96 * 14 = £209.44 - cost to acquire £50 = £159.44

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If you could take 5 to the board?

Commitment / Brand Love Share of wallet Channel preference Spend/Frequency Coverage (what proportion of spend the top x% of

customers account for)

Edwina DunnCEO Startcount

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Metric OverviewHow do you calculate Purchase Frequency?

You can work out your purchase frequency by using this simple calculation. You can define your time periods to one that best fits with your business model, here I have just gone ahead with a 1 year period.

This metric is going to tell you the average number of times that your customers are making a purchase with you over your chosen time period.

Your Total Orders (365 days) / Unique customers (365 days) = Purchase Frequency

If you want to understand the time between your customers purchased use this formula to see how long a typical customer takes before making a repeat purchase.

365 days / purchase frequency = time between purchases

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If you could take 5 to the board?

Sales Made Cost of Acquisition Monthly Recurring Revenue Church Value in £ and # of clients Sales Pipeline / Forecast with Dates

Tink TaylorFounder Dot Mailer

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Metric Overview

How quickly are your customers leaving you. It is cheaper and easier to retain customers than it is to get new ones. Monitor churn to understand how good you are at keeping your customers.

Customers Lost during x period/starting customers = churn rate %

CHURN

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If you could take 5 to the board?

Increased Revenue Lowered Costs Improved Customer Satisfaction (NPS) Increased Capabilities

Jim SterneFounder eMetrics Summit & Digital Analytics Association

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Metric Overview

The NPS system gives you a percentage, based on the classification that respondents fall into—from Detractors to Promoters.

NET PROMOTOR SCORE

https://www.netpromoter.com/

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Metric OverviewNET PROMOTOR SCORE

So to calculate the percentage, follow these steps:

Enter all of the survey responses into an Excel spreadsheet.

Now, break down the responses by Detractors, Passives, and Promoters.

Add up the total responses from each group.

To get the percentage, take the group total and divide it by the total number of survey responses.

Now, subtract the percentage total of Detractors from the percentage total of Promoters—this is your NPS score.

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Metric OverviewNET PROMOTOR SCORE(Number of Promoters — Number of Detractors) / (Number of Respondents) x 100

Example: If you received 100 responses to your survey:

10 responses were in the 0–6 range (Detractors)

20 responses were in the 7–8 range (Passives)

70 responses were in the 9–10 range (Promoters)

When you calculate the percentages for each group, you get 10%, 20%, and 70% respectively.

To finish up, subtract 10% (Detractors) from 70% (Promoters),

www.npscalculator.com/en

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If you could take 5 to the board?

Ratio of Daily Average Users: Monthly Average Users (DAU:MAU)

CPA: Cost Per Acquisition CLT: Customer Lifetime Value Customer Referral Rate Customer Churn

Matthew EisnerGlobal Marketing Manager at Startup Bootcamp

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Metric OverviewVIRAL GROWTH FACTOR: KHow likely are your users to send on to a friend/ referrals ?

I = number of invites sent by each customer

C = the percent conversion of each invite

K = I*C

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Metric OverviewWHAT IS VIRAL?

Situation 1

1250 users send 2000 invites (2000/1250) = 1.6

580 convert as customers (580/2000) = 0.29

1.6*0.29 = 0.464

Situation 2

1250 users send 2000 invites (2000/1250) = 1.6

1250 convert as customers (580/2000) = 0.625

1.6*0.625 = 1

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Good and Bad Metrics

VANITY METRICS

Feel good measurements to justify marketing spend Facebook likes Number of names gathered at a trade show

When metrics go wrong…

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Good and Bad Metrics

FOCUS ON QUANTITY,

NOT QUALITY

We have a database of 50,000 people

We created 1 million leads, yadayadayada…..

When metrics go wrong…

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Good and Bad Metrics

ACTIVITY, NOT RESULTS

Activity is easy to see and measure.

Your boss may see this as just costs going out of the

door.

When metrics go wrong… FINANCE

METRICS

Revenue metrics

Incremental contributions of

individual marketing programmes.

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Good and Bad Metrics

LAGGING VS LEADING

Lagging metrics: Historical, shows you how you are doing, its like reporting the news, its happened. E.g. sales this month

Leading metrics: Forward looking, number today that predicts tomorrow.

EG pipeline

When metrics go right…

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Correlated and Casual MetricsCorrelated: Two Variables that are related - but may be dependent on something else.

E.g. Ice cream and drowning

Causal: An independent variable that directly impacts a dependent one.E.g. summertime and drowning

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Find a leading, casual metric…

…Find Your Superpower

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Paired Metrics

Consider matching your KPI with a paired metric

Eg if your KPI is to shorten time on customer enquiries you should pair this with customer satisfaction.

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Remember…

If it won’t change how you behave, it’s a bad metric.

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What To DoFILL OUT RACE FOR MACRO AND MICRO

GOALS

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What To DoWHERE ARE YOU GETTING YOUR DATA FROM?

ARE YOU TRACKING THE METRICS YOU NEED TO DO THE MATH?

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What To DoWHO ARE YOU REPORTING TO, WHAT DO THEY WANT TO SEE?

Your VP of marketing may want…

Reach = Events per sessionAct = Number of Free TrialsConvert = Return on InvestmentEngage = Churn Rate

Your CFO may want…

Reach = Cost per VisitorAct = Cost per AcquisitionConvert = Return on InvestmentEngage = Monthly Recurring Revenue

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What To Do…

GET FAMILIAR WITH METRICS AND HOW TO WORK THEM OUT

Your questions please?

All members can also ask questions through our ‘Answers’ community