Up and to the Right: How the Drive for Growth is Changing Product and Marketing Functions
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Up and to the Right: How the Drive for Growth is Changing Product and Marketing Functions
- 1. Up and to the Right: How the Drive for Growth is Changing Product and Marketing Functions Casey Winters Online & Interactive Marketing Director GrubHub @onecaseman 1
- 2. When Vanessa Colella stepped in head of marketing for Citi North America… • The first thing she did was eliminate the digital marketing department • Q: Why did she do this? • A: She said "Everyone in a marketing department needs to be fluent in digital strategy. There's no path for you if you don't." Source: http://www.businessinsider.com/citibank-eliminated-digital-marketing-2013-4 2
- 3. So, if that’s going on at big companies, what’s going on at startups? 3
- 4. So, if that’s going on at big companies, what’s going on at startups? 4
- 5. So, if that’s going on at big companies, what’s going on at startups? 5
- 6. So what does all this mean? • The marketing department is evolving at companies of all stages and sizes. • The educational institutions will be the last to adapt. • Any understanding you develop in these areas puts you ahead of the curve. 6
- 7. So how does this change team structure? Traditional: Creative Designer Copywriter 7 Head of Marketing Brand PR Media Online Research SEM Data Analyst Email Market Research
- 8. So how does this change team structure? Emerging: Product Manager, Growth Head of Marketing Customer Service PR Social Data Analyst SEM Front End Developer 8 Designer Back End Developer Now, instead of the marketing team responsible for growth, you have a growth team, which is way more technical, and trying to use the product or technical marketing opportunities like SEO or viral loops or email to drive growth, and you have a marketing team that is more focused on message rather than medium. Customer service might even be under that umbrella now. And the individual marketing team members are responsible for their own analysis.
- 9. So what’s in this new marketer’s or product person’s toolbox to drive growth? • Engagement loops • Data analysis • Attribution modeling • SEM • Content marketing • SEO • Landing page optimization • Email marketing • Remarketing • Viral loops • Mobile rewards • Web analytics • Gamification • Online display advertising • API Integrations • Conversion rate optimization • Social media • A/B and Multi-variate testing • Push notifications • Community management • PR • Mobile display • Incentivized downloads • App Store Optimization • Out of home 9
- 10. Tool #1: Data Analysis What is it? • Almost all marketing and product decisions now are being measured for performance • In the new marketing and product world, all conversation revolve around data, and you need to be fluent because the data usually tells you where the big opportunities are Important tools • Databases and SQL • Excel • Software: Google Analytics, Mixpanel, Tableau, etc. • Attribution modeling 10
- 11. Tool #2: Search Engine Marketing What is it? • Ads for specific keywords users type into search engine • CPC model • Search engines showcase user intent, which is very valuable When is it useful? • When there is existing demand for your product category • When buying cycles are short • When the customer buys, not just uses your product Important considerations • Not just keyword targeting, but time, place as well • Quality score 11 • Very transactional medium. Not branding opp
- 12. Tool #3: Search Engine Optimization What is it? • The process by which you change your site as well as your site to rank for specific keywords for free on search engines • It’s about authority and relevance (read: links and text) When is it useful? • When there is existing search volume related to your product/service, or the content your product/service creates • When you can’t pay for users Important considerations • Often at odds with conversion rate optimization • Combine with PR and social strategy for ultimate win 12
- 13. Tool #4: Email Marketing What is it? • Sending email to current customers or prospective customers who have opted in to drive communication messages or ordering When is it useful? • If there is chance of repeat order • If someone has asked for more information, but not purchased • Promotions • Education Important considerations • Spam/deliverability • Personalization 13
- 14. Tool #5: Viral Loops What is it? • Designing product experience so that every new signup/interaction generates other sign-ups/interactions When is it useful? Important considerations • When you have something that’s • Most of the time it’s cool, but hard to market in traditional not a home run ways • Spam concerns • When product/service relies on network effects or can’t pay for users Read more: http://www.linkedin.com/today/post/article/20121002124206-1887678514 how-to-model-viral-growth-the-hybrid-model https://medium.com/i-m-h-o/86286817b874
- 15. Tool #6: Conversion Rate Optimization What is it? • Making continual changes to a site/app/landing page with the goal of increasing # visitors who turn into conversions When is it useful? • If your site is more than one page, you want to work on this Important considerations • Can be a trade-off in conversion vs. lifetime value • Can go overboard in a way that hurts brand/user experience • Mapping the correct funnel • Monitoring bounce rates and exit rates • A/B and multi-variate testing • Form conversion • Remember your behavioral econ! 15
- 16. Tool #7: Social Media Marketing What is it? • The process of building and engaging an audience outside of your building/website/ecosystem When is it useful? • When people are talking about you outside your walls • Not as critical for B2B • Can get value for free Important considerations • Can be a huge customer service opportunity • Paid ads that leverage current fans/followers typically more effective than those that are not (via social proof) • Sweet targeting options, but no intent yet • Requires scale of fans/followers to be great ad model 16
- 17. Tool #8: Mobile What is it? • Any form of adverting that reaches users on their mobile phone When are the options? • App Store Optimization (free) • Cost Per Install • Text message • Push notifications (free) • Mobile rewards 17
- 18. Tool #9: Engagement Loops What is it? • Viral loops are great at getting people to sign up for your product. Engagement loops are product designs that keep those users coming back by creating habits When is it useful? • To drive user engagement Important considerations • Developing triggers (internal and external) • Motivation and ability • Variable rewards • Commitment Read more: http://www.nirandfar.com/2012/03/how-to-manufacture-desire.html http://www.startuplessonslearned.com/2008/12/engagement-loops-beyond-viral.html 18
- 19. Tool #10: Online Display Advertising What is it? • Banner advertising on other websites When is it useful? • When demand capture is not enough for your paid marketing efforts Important considerations • CPM model • More of a top of funnel approach • Retargeting • Lots of targeting options • Hard to quantify performance • Limitless inventory 19
Notes de l'éditeur
- Now, instead of the marketing team responsible for growth, you have a growth team, which is way more technical, and trying to use the product or technical marketing opportunities like SEO or viral loops or email to drive growth, and you have a marketing team that is more focused on message rather than medium. Customer service might even be under that umbrella now. And the individual marketing team members are responsible for their own analysis.
- It means if you’re in a big company as a marketer or PM, you’re expected to devise strategies that are a cocktail of multiple of the above, and understand when each is appropriate. If you’re at a small company, you’re expected to come up with strategies as well as execute multiple of these tactics and know how to measure their effectiveness.If this list seems daunting, it’s meant to be. Our school doesn’t really teach us how to do any of these. But don’t panic. First off, these tactics only work for certain types of products and businesses, and much of what you need to do is hone in on the ones that make sense for your business and get strong in understanding how those tactics/strategies work.So, for my next few slides, I’ll briefly introduce you to these, some quick tips on when to consider them/not to consider them, and where to go for more information.
- So, tool #1 in almost any organization is becoming data analysis. Almost all marketing and product decisions are now being measured for performance in some way. The conversions all revolve around data, so you need to be fluent. But you go to school here, which means you already are.So, an example. We noticed our overall repeat purchase rates for new users weren’t go up Y/Y as much as we expected. That’s kind of a problem because if people don’t repeat purchase quickly, they tend to not repeat purchase at all. So, we dug into our data, and looked at correlated trends. The % of first time users registering as guest was slightly up. So, we re-cut the data of repeat purchase rates by guest vs. accounts, and saw that guest repeat purchase rate was much, much lower than other users. So, we re-designed the page where we ask you to sign in so the guest option was in really tiny font at the bottom of the page. We still got the same number of users, but repeat purchase rate went up.Important things about data analysis. You need to have data access. Frequently, this stuff is in a database, and you need to learn SQL to retrieve it and analyze it in Excel. You’ll also probably start using some combo of analytics software and data visualization software. A quite note about attribution modeling. This is a method of measuring the interplay of different marketing initiatives to determine the true value of different marketing initiatives. So, for example, if you’re running a paid search campaign and an online display campaign, how does a previous online display impression impact the number of people who search your brand later and convert. A very simple example, but some players like Adometry, Visual IQ, and Clearsaleing only work on this problem in more complex examples with millions of advertising dollars working together.
- So, an example here is GrubHub. Tons of people are already searching for food delivery on search engines. We can use SEM to tap into that to get them to place those orders online. But, this is not a very useful tactic for Twitter. What would people search for? How do you value a sign-up? This is also not very great for a mobile app like an Uber or Lyft because what if someone has an immediate need for a taxi, they probably won’t wait to download an app.
- So, for example, SEO is great for us because people are already searching for food delivery. Unlike SEM, it’s also great for a product with a longer term buying cycle, like a car company, who can become a part of the research phase. It’s also can be great for community content sites like Yelp, who have business listings and reviews.What this is not great for is a Groupon, because their content is time-specific, not evergreen. But they still try.So, an example here of this bullet point. Back in 2008-9, GrubHub wasn’t in a lot of cities, so when we went to a new city, we would do a “launch”. Now, the launch actually involved seeding SEO content months beforehand, but when we felt we had enough restaurants to tell people, we do three things: 1) launch SEM, 2) create a $10 off promo for new users, and 3) pitch local bloggers and news sites. For 3), our story was not just who we were, but that we had a $10 offer for thei readers if they linked to a specific link. When a few people wrote about that promo, they would link to it, and we would have the authority to rank high for local keywords.
- So many startups do not send regular email. It’s tragic. It’s just the best way to keep reminding people about your product, whether they’re current users or not. Now, the problem with email is that you have to acquire their email. DO NOT BUY EMAILS EVER. But, I’ve seen pre-launch startups receive 100,000 opt-ins before a launch. That gets into viral loops a bit, but it’s doable.So, we send an email once a week on Friday afternoon because most of our orders are on weekends. But we also educate new users on feature capability and things like that. Quora sends an email with some of the most interesting answers of the week.
- So, if you bring one person to your site, and they invite two people, if everyone of those people invites two more people, you have a self-sustaining viral loop. This rarely happens. But, your viral factor is likely going to be less than one, but not insignificant. So, Groupon’s a great example of this, right? They had a tipping point for each deal, so if you purchased, you were incentivized to tell your friends to purchase or else you wouldn’t get the deal. They come in and a % do the exact same thing you did. Everlane is a lesser known example. Everlane is an online retailer of their own branded clothing. They created an invite system where if you invited someone who signed up, you got early access, but if you invited 15 people who signed up, you got one of their shirts. And if you invited 50 people who signed up, you got free shipping for life. They had 100,000 sign-ups pre-launch from this by optimizing not for every person to invite a friend or two, but for a select few influencers to invite dozen up to even thousands.Now, a bad example here is Path. Path is a mobile social network that downloads all your phone contacts and makes “invite friends” auto-checked on sign-up. If you don’t uncheck it or only pick certain friends, it will text everyone on your contact list.Now, there’s some math here that’s important to learn that I didn’t cover. I like RahulVohra, CEO of Rapportive’s, model because it works well for those of us that are not Twitter and have a lower viral coefficient. But, I want to make a note here not to get carried away with what the average user does or how many people they refer, because, like in Everlane’s case, it’s the completely un-average user that may drive all the volume.
- Think of it this way… Every page on a website is an ad for the next page.If your page did not generate a click to the next page, it failed.Find the pages that generate the least clicks to the next page and fix them. These can be called bottlenecks. This starting to sound like operations. Good. Because the best book about conversion rate optimization is The Goal, even though it’s about a manufacturing plant, not a website.So, a few things here. If you’re a content site, do you want to work on this? Yes, because another page view is another money making opportunity. Even if you’re not making money with your product or service yet, enticing people to do one more thing or visit one more page increases engagementThis is an awesome topic. I have a whole deck on it if you’re interested, but a few high level comments. First, there may be a trade off in getting a purchase and that person’s lifetime value. Back to my earlier example, we added an order a guest feature to improve conversion rate, but it hurt LTV to do that.Second point: if you get too aggressive. A good example of this is Business Insider. They are a news site that makes money on impressions. So, when I go there, they have a top ten list article that they make a slideshow, so it’s 10 page views instead of one. During that process, I have like seventy sharing options proposed to me, dozens of links to “related articles.” It makes me not want to go back there ever.Third point: mapping the correct funnel. Typically, your site is a funnel with a bunch of people landing on a page, where you lose more and more people with each step, and a few people ending up finishing. Think about the steps that are really required in this funnel, and what’s not, and simplify without hurting opportunities to increase LTV.Fourth point, while it’s called conversion rate optimization, what you end up optimizing for is bounce rate and exit rates. Bounce rate is how many people reach your site and immediately leave. You want that to be a as low as possible, and optimizing that is both a sense of attracting the right traffic and designing the right landing page. Exit rate is the % that leave on a certain spot in the funnel. Whichever page has the highest exit rate is typically the one you want to work on.Fifth point: You’ll most likely start A/B and/or multi-variate testing to make improvements here. A ton of tools help you do that. This a process where you either test two different designs and see which one performs better, or you test multiple different components and test the combinations together randomly. Sixth point: forms. Forms kill conversion rate if done poorly. Think hard about what and how you’re asking for stuff on a form. Think about error handling really hard. There’s typically lots of opportunity here because the people that get this far are very interested.Lastly, remember your behavioral econ here. Classes like Managerial decision making teach us about biases in decision making. Design to avoid these in your conversion optimization efforts. For example, when we bought Campusfood, we decided to merge the brands and transition their million+ users to GrubHub. We incentivized many of them, and drove them via email and the CF website to a merge page. We worried some people might say screw you, so we want to make sure we reminded them of what they would give up if they did that. So, we had a “finish migration” button and next to it a “delete account forever” button. The goal of that second button was to trigger loss aversion. CF is going away. I can’t lose the ability to order food online.Social proof, choice architecture, anticipation. Those all are critical for conversion optimization.
- So, there’s lots of things that you can do on mobile, and of course things like SEM, SEO, and email are important on mobile. I wanted to talk about a couple of the unique opportunities mobile provides.So, App Store Optimization is just SEO for the App Store and Google Play. Optimizing your listing to show up when people type in keywords. Now, determining relevance is very similar. The app stores read what’s on your listing and title. Authority is a bit different. The app stores rely on signals like downloads the last seven days, # of reviews and average review score, outside reviews from press, # active users. Cost per Install is the dominant display ad model for mobile. How cost per install works is you’ll work with a mobile ad network, and pay them a set price for every app install they drive via an ad. It’s supposed to be a pay for performance model, but I caution people to pay for installs because many paid installs don’t ever become users.Text messaging is great for transactional messages. For example, we text people when to expect their order and when the order has left the restaurant. You need to use a short code or else you will get throttled. You need to have their number, and ideally, they need to be opted in.Push notifications are those messages on closed screens and in notification trays. These are great for transactional message and some email marketing style messages, but don’t overdo it. Someone needs to already have your app downloaded for them to work.Mobile rewards is a relatively new ad model for mobile. Instead of CPI, which is just a tiny ad in another app, these are promotions available to people who unlock them on gaming apps. Some involve new forms of currency.
- So, if viral loops are great at getting people to sign up, you can use similar tactics to drive people to keep using your products. So, you want to use this tactic when you’re trying to boost engagement metrics, like number of times someone visits in a month, or how many actions someone takes on a site. NirEyal’s done some great research here I want to highlight, which he describes as the desire engine. The desire engine starts with an external trigger. Say, you got an email that someone posted a photo of you on Facebook. That trigger needs to generate an action, like visiting Facebook. In order to be effective at doing that, the trigger has to promise a variable reward. Now, Hsee covers the importance of variable rewards in his Managerial decision making class, which I highly recommend. But, if you haven’t taken it, I’ll spoil it a little. It turns out variable rewards are the key to happiness. Since the human minds adapts to conditions so quickly, good things you receive need to constantly be different, or else they become normal and boring. Right, so once you receive a variable reward, you need to ask the user to do something that feeds to this cycle for other users. That could be you commenting on the photo, liking it, posting another photo, etc. Then other people will be notified about that.Now, Eyal’s theory is that the most popular services transcend the external trigger and create an internal trigger in people’s minds. So, when people are bored, they think about going to Facebook without receiving an email about a photo of them because they’ve been trained to expect some sort of variable reward in their news feed.
- Online display: I’m sure you’ve all see banner ads online. You probably don’t pay much attention to them most of the time, and wonder why people pay for them. Well, the reason brands do is because some times these other tactics aren’t enough. They don’t generate quite enough new user acquisition or engagement. So, online display can be that added layer of effort that translates down to these other channels.For example, if you are a marketplace like GrubHub, and you’re doing really well in paid and organic search, and you’re doing email and mobile and social media marketing, but you’re product’s not super viral. If you want to grow on top of that, you need to switch to awareness based advertising models like online display, and maybe even offline channels like out of home, TV, radio, etc. So, some important things to consider here. Online display is typically a CPM model like TV. So, you pay a rate per thousand impressions. Most people won’t click, unlike SEM. Retargeting is a specific application of online display where, once someone has visited your site/app, if they didn’t order for example, you can use your cookie to target that user with display ads on other sites to remind them to come back.Tons of targeting options here: site, page, size of ad, time of day, day of week, geography, lookalike to current usersIt’s very hard to quantify though as, outside of retargeting, this is more of an introducer piece of marketing, and won’t lead to direct conversionAnd, for all intents and purposes, you’ll never run out of inventory here unlike search and social.