Web Strategy for Pirates: AARRR!!!
(Startup Metrics for Internet Marketing & Product Mgmt)
Dave McClure Master of 500 Hats http://500hats.typepad.com/ http://www.500hats.com/
Customer Lifecycle / Conversion Behavior
SEM SEO
Blogs/ Affiliates
PR
Campaigns, Contests
Biz Dev
Widgets
Email Newsletter
1. ACQUISITION
Direct, Tel, TV
Campaigns, Contests
Emails & Alerts
Product Features
Emails & widgets
Blogs, Content
Ads, Lead Gen, Subscriptions, etc
Biz Dev
Website.com
Customer Lifecycle / Conversion Behavior
• Acquisition: users from misc channels come to site
– or landing page, or widget, etc
• Activation: users enjoy 1st site visit, "happy" user experience
– view X pages, spend Y seconds, make Z clicks
• Retention: users re-visit site multiple times
– ex: 3+ visits in first 30 days – type: cookied user, email / account, content / RSS, etc
• Referral: users like product enough to refer others
– referral happens via email, links, blogs, widgets, word-of-mouth, etc
• Revenue: users conduct monetization behavior
– if no monetization, choose next-best proxy (free download, etc)
Example Conversion Metrics
(note: *not* actuals; your mileage may vary…) Category
Acquisition Acquisition Activation Activation Activation Retention Retention Referral Referral Revenue Revenue
User Status
Visit Site (or landing page, or external widget) Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) Happy 1st Visit (views X pages, stays Y sec, Z clicks) Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) Acct Signup (includes profile data) Email Open / RSS view -> Clickthru Repeat Visitor (3+ visits in first 30 days) Refer 1+ users who visit site Refer 1+ users who activate User generates minimum revenue User generates break-even revenue
Conv %
100% 70% 30% 5%
Est. Value
$.01 $.05 $.25 $1
2%
3% 2% 2% 1% 2% 1%
$3
$2 $5 $3 $10 $5 $25
Conversion Measurement
• Conversion Criteria:
– best-performing (%) channels / campaigns / copy – largest-volume (#) channels / campaigns / copy – lowest-cost ($) channels / campaigns / copy
• Measurement Components:
– – – – – Audience Segment (young women, regional metro, older singles) Channel Source (social network, SEM, organic, PR, etc) Campaign Theme / Brand Promise (“find a job”, “learn to cook”) Landing Page & CTA Copy & Graphics
Types of Metrics & Measurement
• Quantitative: Traffic Analysis / User Engagement
– Report what users do, track usage & conversion %'s for all or empirical sample # of users
• Qualitative: Usability Testing / Session Monitoring
– Watch what users do, figure out problems & solutions from small # 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.