The purpose of this session is to educate the audience on the definition and fundamental pillars of user analytics within the context of the Free-to-Play model. The F2P model has been a game changer for how businesses (social games, mobile apps, etc.) now think about building revenue streams, and balancing revenue/monetization with building a truly engaging & sticky user experience. [They can work in harmony, but it takes understanding user behavior to get that balance right.] This new model also changes the way marketers need to think about managing their user acquisition strategies, and how to measure ROI. It’s now less about optimizing on CPA/CPI, and more about CPPC (cost per profitable customer). Ultimately, user analytics helps companies measure and improve their customer economics from acquisition to engagement to monetization, changing the focus from the value of a page to the value of the lifetime of your customers.
8. Britney Spears evolved, so did user
analytics
Web 2.0 (00s)
Page views
Click, Actions
Search Advertising
CPC, CPA
Web 1.0 (90s)
Eyeballs
Impressions
Banner ads
CPM
Web 3.0 (10s)
People
Users
User Ads,
Couponing
CAC, LTV, ROI
12. If you are trying to
make money…
Lifetime Value
per User
(LTV)
Acquisition Cost
per User
(CAC)
>
13. If you are trying to
reduce costs…
Cost per
Transaction
(mobile)
Cost per
Transaction
(offline/web)
<
14. If you are trying to
increase loyalty…
Churn per User
(mobile)
Churn per User
(non-mobile)
<
15. “ARM” yourself to mobile success
1. Design a sticky
user experience
2. Integrate the
business model
3. Identify a
marketing plan
4. Go to market,
iterate, and profit
16. Phase 1:
Design a sticky user experience
Focus on content,
game mechanics,
viral hooks
Optimize for key
behavioral actions
Track performance
through N-day
retention, user
lifetime, and k-factor
17. Phase 2:
Integrate a business model
For example, if the goal is
revenue:
Focus on in-app
purchases, ad networks,
affiliate programs
Optimize for key
monetization actions
Track performance through
% paying users, ARPU,
ARPPU, and LTV
18. Phase 3:
Identify a marketing plan
Focus on channel
experimentation,
cohort analysis
Optimize for “high-
value” users
Track performance
through CAC, ARPU,
and eLTV per
channel/campaign
20. Phase 4:
Go to market, iterate, and profit
Focus on
collaboration, rapid
development cycles,
data-driven decision
making
Track performance
through LTV and
CAC
21. User analytics spans
across the org
Marketing Team
Measure and optimize your user acquisition campaigns
with insight into full funnel KPI’s.
Production/Engineering
Analyze how different cohorts of users interact with your
application, and pinpoint the places to optimize that have the
greatest impact.
C - Level
Stay on top of the important data points and trends that
are core to your business success.
D A S H B O A R D
Business Intelligence
Deep dive into your user data using our data mining
tools.
22. User analytics spans
across the org
C - Level
Stay on top of the important data points and trends that
are core to your business success.
D A S H B O A R D
24. User analytics spans
across the org
Production/Engineering
Analyze how different cohorts of users interact with your
application, and pinpoint the places to optimize that have the
greatest impact.
D A S H B O A R D
26. User analytics spans
across the org
Profitabilit
y
Marketing Team
Measure and optimize your user acquisition campaigns
with insight into full funnel KPI’s.
D A S H B O A R D
30. Key Takeaways
Don’t take data at face value – dig deeper!
Identify your business objectives
Define your success formula
Design, instrument, and launch your app
around these objectives
Learn more at other KK sessions!
31. My app’s epilogue
150K users
#12 on App Store
8% of DAUs were “power
users”
Power users shared songs
more than 150 times per day
CAC > LTV for ad campaigns
Decided not to invest more
resources
32. MAY 20, 21 2013 // SAN FRANCISCO
Questions?
@kontagent
@shamantri
Rate this presentation on the KKONNECT app!
Notes de l'éditeur
Welcome, thanks for coming to Kontagent’s first-ever user conference.
Anyone from out of country?
Exciting sessions this afternoon…
Kontagent has been a frontrunner in educating the industry about user analytics.
Let’s start at the 30K foot level and make our way down.
The purpose of this session is to educate the audience on the definition and fundamental pillars of user analytics within the context of the Free-to-Play model.
If there’s one thing you get out of this session is UNDERSTAND YOUR USER ECONOMICS, including LTV and CAC.
----
The purpose of this session is to educate the audience on the definition and fundamental pillars of user analytics within the context of the Free-to-Play model. The F2P model has been a game changer for how businesses (social games, mobile apps, etc.) now think about building revenue streams, and balancing revenue/monetization with building a truly engaging & sticky user experience. [They can work in harmony, but it takes understanding user behavior to get that balance right.] This new model also changes the way marketers need to think about managing their user acquisition strategies, and how to measure ROI. It’s now less about optimizing on CPA/CPI, and more about CPPC (cost per profitable customer). Ultimately, user analytics helps companies measure and improve their customer economics from acquisition to engagement to monetization, changing the focus from the value of a page to the value of the lifetime of your customers.
- At Kontagent, manage our web dashboard and mobile initiatives
Cofounded a company that has built Top 25 social/mobile apps (in fact, will be talking about one of them today)
Designing
Fundraising
Server-side engineering
Built analytics system
Addiitional:
- Consulted for the world's largest South Asian music companies - Created India's first nonprofit campus recruiting program for startups - Built enterprise software that's revolutionized how law firms manage document security
User analytics is about defining what success means for you, at each stage of your application’s lifecycle.
Let me tell you a story about the launch of Hitmaker, a music discovery game for the iPhone that would eventually become a Top 25 app on the App Store.
Investors asked:
What does your user adoption look like?
Engagement?
Retention?
Who are your power users? What are they doing?
Knowing what your users are doing can make the difference.
Introduction to User Analytics in the context of the evolution of the Web.
Most importantly, a star was born. Britney Spears became a cultural icon, encouraging all teenage schoolgirls worldwide to wear skimpy uniforms.
In the tech world, we experienced a dotcom bubble. Valuations on companies like Yahoo! and Pets.com skyrocketed based on eyeballs alone, i.e. How many pageviews came to my site in the last month?
Britney from celebrity to crash (dotcom crash)
Britney Spears’ fame (or infamy) continued as she matured into a yet another rebellious, drug-doping celebrity.
Google became the de facto search engine and, along with it, AdWords/AdSense became the de facto discovery channels for independent websites.
SEO, SEM => Visitors => Actions
KPIs: CPM, CTR, CPA
Britney grew up into a wholesome young woman.
And Facebook was born. But most importantly, Facebook Platform was created, allowing app developers to plug into a user’s rich profile and social graph. Apps could use this graph to personalize user experiences, deliver better recommendations, and grow virally.
Behind the social revolution was the concept that a user was not a pageview, not an anonymous visitor, but a living breathing entity with interests, friends, and a big megaphone.
Other platforms that are experiencing this revolution include iPhones and Android: Your phone is the most socially connected device in the world.
As platforms evolved, so did developers’ understanding of their users, how to reach them, and how to make money from them.
Now, we know where users come from, especially viral channels. We can differentiate between a user’s first session and their subsequent ones. We can tie their behavior to outcomes that matter, like an in-app purchase. And this means, we can calculate our User Economics, which is probably the most important calculation in analytics today.
----- Meeting Notes (5/7/13 13:00) -----
People, Process, and Platform
It’s about finding moments and controlling them.
Right experience. Right people. Right time.
You will hear this theme over and over again.
If you’re a JRR Tolkien fan, this is the Ring.
If you’re religious (or just like Indian Jones), this is the Holy Grail.
Whatever you want to call it, this equation is the most important calculation you’ll want to make.
For games, this is the equation that matters. It probably makes sense for commerce as well.
If you’re a JRR Tolkien fan, this is the Ring.
If you’re religious (or just like Indian Jones), this is the Holy Grail.
Whatever you want to call it, this equation is the most important calculation you’ll want to make.
For games, this is the equation that matters. It probably makes sense for commerce as well.
If you’re a JRR Tolkien fan, this is the Ring.
If you’re religious (or just like Indian Jones), this is the Holy Grail.
Whatever you want to call it, this equation is the most important calculation you’ll want to make.
For games, this is the equation that matters. It probably makes sense for commerce as well.
If you’re a JRR Tolkien fan, this is the Ring.
If you’re religious (or just like Indian Jones), this is the Holy Grail.
Whatever you want to call it, this equation is the most important calculation you’ll want to make.
For games, this is the equation that matters. It probably makes sense for commerce as well.
To put this formula in context, let’s derive this formula from a typical application’s development & marketing lifecycle.
We’ll be using the ARM framework to do so.
----- Meeting Notes (5/7/13 13:00) -----
People, Process, Platform
Unpaid marketing
Cross promotion
Website
YouTube video
Current fans
Website
Media reviews
Press release
Apple / Google feature
Top ranking
Facebook
Twitter
Forums
Blogs
----- Meeting Notes (5/7/13 13:00) -----
3% conversion
k-factor for social
What is User Acquisition Cost?
It’s about making much smarter marketing decisions.
How much it costs to acquire an active user.
[Sum ( marketing for each channel ) + other expenses ] / Active Users
User acquisition cost:
Per channel
Conversion funnel for each channel
Types of marketing: paid vs. unpaid
Unpaid marketing
Cross promotion
Website
YouTube video
Current fans
Website
Media reviews
Press release
Apple / Google feature
Top ranking
Facebook
Twitter
Forums
Blogs
Paid campaigns
FAAD
Flurry
Chomp
Admob
InMobi
Chartboost
iAd
In this conference, we hope you’ll come away with a marketing playbook. Talk to each other about channels and tactics that are working, and those that aren’t. On our side, we have a webinars on app marketing you can check out at www.kontagent.com.
Identify revenue levers
Optimize app flow for these levers
----- Meeting Notes (5/7/13 13:00) -----
business-defined metrics
- content utilization
- commerce
build model based on business goal (cost savings, revenue, cross promotion)
- self-service: deferring costs
- content: higher revenues for advertisers
- commerce: increased revenue
hotel tonight business goal right now is around same-day transaction
zions bank cost of in-branch visit
Paid campaigns
FAAD
Flurry
Chomp
Admob
InMobi
Chartboost
iAd
----- Meeting Notes (5/7/13 13:00) -----
CPA instead of CAC
use examples in each slide
refer to other sessions
What is User Acquisition Cost?
It’s about making much smarter marketing decisions.
How much it costs to acquire an active user.
[Sum ( marketing for each channel ) + other expenses ] / Active Users
User acquisition cost:
Per channel
Conversion funnel for each channel
Types of marketing: paid vs. unpaid
Unpaid marketing
Cross promotion
Website
YouTube video
Current fans
Website
Media reviews
Press release
Apple / Google feature
Top ranking
Facebook
Twitter
Forums
Blogs
Paid campaigns
FAAD
Flurry
Chomp
Admob
InMobi
Chartboost
iAd
In this conference, we hope you’ll come away with a marketing playbook. Talk to each other about channels and tactics that are working, and those that aren’t. On our side, we have a webinars on app marketing you can check out at www.kontagent.com.
What we know:
A user’s lifetime
ARPU over that lifetime, i.e. spending curve
Lifetime value per user
Cost of acquisition per user (potentially broken down by marketing channel)
Profit!
----- Meeting Notes (5/7/13 13:00) -----
show screenshot
this model can be modified based on your business objectives
Pace of Hitmaker updates
Review the prezo so far: Showed you the equation, how it gets derived, now talk about how to apply it across the org
Collaboration is key to insights, decisions
-------
What are the questions that each role is asking?
What are the questions that each role is asking?
Potential audience interaction here?
Collaboration is key to insights, decisions
What are the questions that each role is asking?
Potential audience interaction here?
Collaboration is key to insights, decisions
Attend these sessions….
What are the questions that each role is asking?
Potential audience interaction here?
Collaboration is key to insights, decisions
What are the questions that each role is asking?
Potential audience interaction here?
Collaboration is key to insights, decisions
----- Meeting Notes (5/7/13 13:00) -----
updated screenshot of datamine
refer to dm prezo
User analytics is about defining what success means for you, at each stage of your application’s lifecycle.
Let me tell you a story about the launch of Hitmaker, a music discovery game for the iPhone that would eventually become a Top 25 app on the App Store.
Investors asked:
What does your user adoption look like?
Engagement?
Retention?
Who are your power users? What are they doing?
Knowing what your users are doing can make the difference.
Feedback:
- How did user analytics matter?