Measurement for Growth

Louis Gray

@louisgray Who is Louis Gray?

• Analytics Advocate, Google Analytics ○ Googler since 2011 • Silicon Valley marketer since 1998 ○ PR, comms, demand gen, etc. • Tech blogger at louisgray.com

UC Berkeley Alum: 1999 (Mass Communications & Political Science) 01. Date 2018

Twitter: @louisgray Agenda

• What is Growth

• Growth Strategies

• Measurement for Growth

Growth hacking is a process of rapid experimentation across marketing channels and product development to identify the most efficient ways to grow a business.

Growth hackers are marketers, engineers and product managers that specifically focus on building and engaging the user base of a business.

- Wikipedia

Growth Hacker vs Digital Marketer

Acquisition Getting people to visit your site Digital Marketer Activation Users get a great first time experience Growth Hacker Retention Making sure users come back Growth Marketer / Revenue Growth How do we sell the product

Referral Users invite others

Product Market Fit

PMF = Being in a good market with a product that satisfies the market.

As a consumer, how would you feel if the product didn’t exist anymore?

Ex. Uber in China failed to competitor Didi

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Team Organization Analytics

Growth combines elements of many different roles, organizing these roles Experimentation into a Growth team Product Marketing (Testing) Content Marketing SEO Growth

Product Engineering Design

Typical Growth Framework

Structure depends on the size of the company

Typically, startups will have 1 growth lead or small team, and as a company scales, each business area may have a growth team focused on a particular area

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary The AAA Growth Marketing Framework

STRATEGIC DESIRED PRIMARY KEY STRATEGIC DRIVERS OUTCOME TACTICS MEASURES GOAL

Impressions Paid media, SEO, Perceived Email, Blogs, Social, New Accounts Value Content, Partners Conversion Rate Acquisition CPA

Realized Email, In-product, Success Rate Value Help Center Avg Time to Activation Value Monthly Actives Email, In-product, Ongoing Help Center, Adoption Rate Value Newsletters, Blog, Retention Rate Adoption Social, Webinars

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Centralized Product Growth Team

Strategy, Email Data, &

Metrics

Programs Growth Engineers

SEO Content Growth Growth PM Marketing

Data Scientist Media & Ads Content &

Analytics 360 Suite and DoubleClick Education Google Confidential & Proprietary Measurement for Growth North Star Metric

The North Star Metric is the single metric that best captures the core value that your product delivers to customers. Optimizing your efforts to grow this metric is key to driving sustainable growth across your full customer base.

- Sean Ellis

Daily Active Users (DAUs)

Nights booked

Weekly rides

The North Star metric should comprise value from both the user and the company

Monthly Active Users (MAUs)

Monthly Active Experiments (MAEs)

Monthly Active Users (MAUs)

The North Star metric should comprise value from both the user and the company

Analytics

Marketing Experimentation Content (Testing) SEO North Star Metric

Engineering Product Design

Impressions Inactive Users Retention Rate

Acquire Activate Adopt

Conversions Conversion Rate Activated Adoption Rate New Users Users Sign-up Rate Success Rate CPA, CPNU Avg Time Analytics 360 Suite and DoubleClick CPAU Google Confidential & Proprietary Acquisition

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Key metrics by life-stage

Impressions

Acquire

Conversions Conversion Rate New Users Sign-up Rate CPA, CPNU Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Impression → Click

Acquisition strategies: ● Facebook, Twitter, Instagram ● Blog content ● Display advertising ● Organic & SEO traffic ● Referral & Affiliate traffic

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Multi-product acquisition campaign Optimized paid media programs - Google Display Network

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Capturing an Acquisition

● Campaign tagging ● Page tracking ● Event tracking ● Form tracking ● Cross-domain tracking & referral exclusions ● Have the right data structures in place

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Use the dataLayer to Collect Custom Information

Use the dataLayer to Collect Custom Information

● onChange events to measure each form field interaction ● Single page forms, multi-page signup or checkout flows, etc ● Can help pinpoint exact fields where conversion may drop or errors may occur

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Event Category

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Event Action

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Event Label

Optional Form Field

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Activation

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Key metrics by life-stage

Impressions Inactive Users Retention Rate

Acquire Activate

Conversions Conversion Rate Activated New Users Users Sign-up Rate Success Rate CPA, CPNU Avg Time Analytics 360 Suite and DoubleClick CPAU Google Confidential & Proprietary Network Effects

LinkedIn, Facebook, Twitter, Slack

● Only effective when you can achieve network growth ● Facebook: when you add 7 friends in 10 days, feed is more useful and product is more sticky

Experiment with messaging, signup flows, in-product messaging, etc to encourage users to increase their network

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Time to First Interaction

Examples: ● Uber: Time to first ride ● Deliveroo: Time to first order ● Ecommerce: Time to first purchase

AdWords: Signing up is important first step, but activation is creating and running the first campaign

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Time to First Interaction

Google Analytics: Acquisition happens when a user signs up for an account. Activation happens when the user actually installs the tracking code and starts using the product.

How can we make this time period shorter?

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Experiment with Activation cues in product - Guided Flows

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Activation programs – Optimizing for “base value” realized

Develop strategy Goal and creative Drive as many new users as possible to realize base value from the product while making it as easy as possible.

Key Metrics Engineering ● Activations completed Launch and ● Success Rate (%) iterate implements ● Avg Time to Value (wks) triggers EDU content

Pull data

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Adoption

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Key metrics by life-stage

Impressions Inactive Users Retention Rate

Acquire Activate Adopt

Conversions Conversion Rate Activated Adoption Rate New Users Users Sign-up Rate Success Rate CPA, CPNU Avg Time Analytics 360 Suite and DoubleClick CPAU Google Confidential & Proprietary Email Nurture Campaigns

Monthly Welcome to Performance Analytics Goal: Report Encourage repeat usage, reduce Trigger: Sign Up customer churn, provide product Trigger: Automatic value to users Day 0 Day 30

Key metrics: ● Open rates ● Click through rates ● Return / re-engagement rates ● Monthly retention rate

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Full Funnel Analysis

Understanding and acting on the full funnel of the user experience from first interaction to closed lead (and re-engagement) is a critical part of Growth Marketing

New Salesforce integration: ● Send lead status changes as events to GA360 ● Re-engage and re-target along the funnel / drop off points ● Use your offline data to influence online nurture campaigns

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Retention & Lifetime Value

Measure User lifecycle: ● LTV by user-ID ● Time to repeat purchase ● Frequency / recency of purchase ● Experiment with offers, nurture campaigns, or push notifications to decrease time to repeat purchase, drive increased retention and LTV

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary Targeting for Re-engagement

In-App or Push notification targeting:

Target audiences that contain at least one of “Purchasers”, “LTV >0”, or “High scoring users” with an offer for a free character in your game as a way to incentivize your high value users to come back.

Measure: ● Message views/interactions ● Repeat visits ● Offer acceptance or purchases

Analytics 360 Suite and DoubleClick Google Confidential & Proprietary So, then, aren’t we ALL Growth Marketers?

Maybe not. The biggest difference between a Growth minded organization and a more traditional product & marketing driven organization is the willingness to take risks.

North Star metrics Full funnel analysis Team organization Experimentation mindset Velocity > Accuracy Risk = Reward Summary & Checklist

● Growth Marketing may or may not equal Digital Marketing, depends on the organization ❏ Is your organization Growth-minded?

● Growth teams are fast acting due to team structure, culture of rapid experimentation and risk taking ❏ Do you have the right team structures in place?

● The AAA Growth Framework: Acquisition, Activation, Adoption ❏ How can you use this in your organizations?

● Reminder: Please don’t call it Growth Hacking

THANK YOU!

Louis Gray

@louisgray