Web Strategy For Pirates

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.