Actionable Metrics – Something all publishers ought to pay attention to

Many sites are geared towards getting customers to download something and some attempts are made to get them to log in and personalize the site for themselves. As you build your solutions, its important to think in terms of what the user is getting out of all this and how they got to you site, what actions led them to download from your site. By paying attention to that you can increase repeat visits and downloads.

Recommend reading this article – Actionable Metrics – Say Hello to Cohort Analysis.

Here Ash Maurya talks about the difference between actionable metrics vs vanity metrics. The latter per Mr. Maurya  –

“only serve to document the current state of the product but offers no insight into how we got here or what to do next “

Couldn’t agree more.

So let me summarize some of the stuff he states because a) it helps me internalize these nuggets b) hopefully it gives anybody reading my post an overview. Definitely read his post!! And then I’ve tried to apply this to my own area of interest further below.

He offers three rules for actionable metrics –

1. Measure the right macro – Key things to know – How do users find you; Do users have a great first experience; Do they come back; How do you monetize; and Do they refer you.  Most importantly, don’t waste effort on simply driving signups when customer retention is already a problem. Focus on getting people a great first experience (getting what they want) and then getting them to come back.  This to me means, find out what your users are looking for, what they always download, make sure they can get it fast and at the point where they are converting, make their experience so good that they will want to do more or will come back for more. Sounds obvious but how often do we pay attention to what users really want and how good a first experience they are really having?

2. Create simple reports – We’re all impressed by the various charts and graphs and pages of information that many analytic tools produce or reports created on spreadsheets. But honestly, how many of us really digest every bit of information. I always save these off for later reading  but never get to them. Now compare that to a simple one page report (like the executive summary) or simple reports that speak to a specific problem; now that simplifies everything. I will definitely consume that immediately. So Mr. Maurya suggests looking at funnel reports based on Cohort analysis (or groups of people who share similar characteristics). For example a funnel report of users who are in different types of market segments or maybe different user types (guest vs logged in). Why do this? It tells you how any event or activity you did affects each cohort. Simple!

3. To make these metrics actionable, tie them back to specific user or users. This way you can find out who your activity worked for and who it didn’t. This enables you to contact these specific users for follow ups and feedback and thus get specific insights that you can act upon.

Feels so much like things we already do but the simplicity part is key here.

OK so let’s try an example specifically to the publishing industry. You have content that readers want to consume and they pay for it. More than likely users come from Google or some other search engine. When they arrive at your landing page, are they able to quickly consume the content. What is their first experience? Do they actually spend time consuming the information on your site or do they just download the PDF and go away? You probably want them to stay and read more. So focus on improving first experience – simple reading, fast page load, easy navigation, easy to understand functionality, etc. What do you measure when trying to improve the experience? User engagement perhaps. Additional page visits per session perhaps? Reuse of functionality? Revisits? Any thing else?

OK once you figure out what to measure, think about what kind of reports you want to see. Cohorts to me are by market segments – academic, corporate, government. Then there are guest users vs subscribers. What is in the funnel report here? #User visit page ->#User downloaded content->#user engaged with page->#user signed up for alerts perhaps (or something else) OR #user visited other pages.

Alright, once you have that and start getting reports, you then have to find specific users within each cohort that you can survey or email or talk to.

I think I got this. Any comments? Or other thoughts?

Measuring your Net Promoter Score

NPS is based on the fundamental perspective that every company’s customers can be divided into three categories. “Promoters” are loyal enthusiasts who keep buying from a company and urge their friends to do the same. “Passives” are satisfied but unenthusiastic customers who can be easily wooed by the competition. And “detractors” are unhappy customers trapped in a bad relationship. Customers can be categorized based on their answer to the ultimate question.

The best way to gauge the efficiency of a company’s growth engine is to take the percentage of customers who are promoters (P) and subtract the percentage who are detractors (D). This equation is how we calculate a Net Promoter Score for a company:

P – D = NPS

While easy to grasp, NPS metric represents a radical change in the way companies manage customer relationships and organize for growth. Rather than relying on notoriously ineffective customer satisfaction surveys, companies can use NPS to measure customer relationships as rigorously as they now measure profits. What’s more, NPS finally enables CEOs to hold employees accountable for treating customers right. It clarifies the link between the quality of a company’s customer relationships and its growth prospects.

via The Ultimate Question: Measuring your Net Promoter Score.