1. 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/

2. Customer Lifecycle / Conversion Behavior Website.com 3. RETENTION Emails & Alerts Blogs, Content 2. Activation Product Features 4. REFERRAL Emails & widgets Campaigns, Contests 1. ACQUISITION SEO SEM Widgets Blogs/ Affiliates Email Newsletter PR Biz Dev Campaigns, Contests Direct, Tel, TV 5. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc

3. Customer Lifecycle / Conversion Behavior Acquisition: users from misc channels come to site –or landing page, or widget, etc Activation: users enjoy 1 st 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)

4. Example Conversion Metrics (note: *not* actuals; your mileage may vary…) CategoryUser StatusConv %Est. Value AcquisitionVisit Site (or landing page, or external widget) 100%$.01 AcquisitionDoesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70%$.05 ActivationHappy 1 st Visit (views X pages, stays Y sec, Z clicks) 30%$.25 ActivationEmail/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5%$1 ActivationAcct Signup (includes profile data) 2%$3 RetentionEmail Open / RSS view -> Clickthru 3%$2 RetentionRepeat Visitor (3+ visits in first 30 days) 2%$5 ReferralRefer 1+ users who visit site 2%$3 ReferralRefer 1+ users who activate 1%$10 RevenueUser generates minimum revenue 2%$5 RevenueUser generates break-even revenue 1%$25

5. 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

6. 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.