3. Sanoma Games is a diverse yet compact and lean unit
B2C & B2B, web & mobile Autonomous unit Key functions “in-house”
Business development
Marketing
Design
Development
Sales
5. Being data-driven requires much more than the right tools
http://toolmonger.com/category/85/computer/page/2/
Handheld
USB Snake
Scope
6. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
7. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
11. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
12. A data-driven culture cannot be created by coercion, but must
be built through intrinsic motivation from its visible benefits
Transparency Autonomy Ownership
13. xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
xxx
Improvement actions
xxx
Revenue
ROS&packag.
campaign vol.
Video
campaign vol.
Pricing
Discounts
Campaign
volume
Optimization
Direct
Referral
SEO
Ret. visitors
Potential
issues
Site problems
Ad blockers
New visitors
Reach
Monetization
Visits
Premium
fill rate
Premium
eRPM
Remnant
eCPM
Unique
visitors
Media sales breakdown by contributing component
Impression
success rate
nn%
nn%
nn%
mm%
nn%
nn%
nn%
lost
Ensure overall understanding of how the business works and of the contribution of and the
dependencies between its components. Make deep data available
In order for a team to develop and fine tune an engine,
everyone must know how it works
14. Adoption of a data-driven approach requires for people to see
its benefits; how they could kick ass even more at what they do
Image: http://blog.crazyegg.com/lessons/show-benefits/
Make the personal benefits of being data-driven visible.
Show how its autonomous pursuit enhances mastery.
Super You!
Data-drivenness
You
15. Ownership
is not about doing what I tell you to do
is not about not doing what I tell you not to do
is about doing what I don’t tell you to do
Ensure ownership of benefits, not deliverables
Focus on why, not what
16. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
17. Data-drivenness, at both individual and team level, is a
capability that can and should be developed
http://skepdic.com/tencommands.html
+
Encourage autonomous reflection but ensure conceptual guidance
Reflection Key concepts
Being data-driven is not only about
sensibly answering questions, but
about finding them in the first place
It cannot itself be standardized
into rules or processes, but it
can be guided by high-level key
concepts
18. A core principle of learning is to be hypothesis-driven. Random
experimentation will yield various outcomes but little insight
Make continuous hypothesis-driven split testing the standard approach in all development activities
across functions
Hypothesis:
[A statement that can
be shown true or false]
Design a test and a
metric that confirms
the hypothesis at a
certain pre set limit
Test in a real setting
with real usersPay attention also to
what is NOT
happening
Confirm or reject the
hypothesis based on
the chosen metric and
pre set limit
Add the learnings to
your body of
knowledge, also the
invalidated hypotheses
Build on the
knowledge to form the
next hypothesis
19. Data without insight can be destructive as it may lead
development the wrong way look like improvement
DAU
(daily active users)
Downloads
(i.e. not even activations)
Activity delta
(change in user engagement)
Churn
(users who quit)
>
Vanity metric
Indicator of
actual use
>Leading indicator of churn
Actionable
Lagging indicator
Not actionable
Put a lot of effort into designing KPIs (Key Performance Indicators) that are both sensible and
actionable; such that steer development initiatives toward your ultimate business goal
20. Main KPIs should be static but reflect the current growth phase,
while tactical tools can be whatever helps improve the KPIs
High-level (growth-stage-specific) KPIs to
continuously optimize
Tactical tools do explore user behavior and to
measure impact from change on KPI(s)
http://lanesplitter.jalopnik.com/x-ray-artist-reveals-the-inner-beauty-of-classic-motorc-1698564514
21. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
22. A simple tool that is actually used provides infinitely more value
than a sophisticated one that is not
https://xplr.com/xplr-umbrella-dataviz-on-top-of-unsupervised-machine-learning/
>
Make sure everyone has easy access to all tools they might need and know how to use them
23. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
24. Goals set at function level can often be unaligned or conflicting,
breaking joint effort and leading to sub-optimal performance
UX
Set high level common goals to ensure everyone works and cooperates to optimize the whole as
opposed to sub-optimizing their own components
Business Manager goal:
Visit eRPM
(effective revenue per session)
Product Manager goal:
Avg. DAU
(daily active users)
25. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
26. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
28. A/B testing is about continuous and systematic gradual
improvements that over time build increased performance
2.5x+
Improvement
29. Seemingly small but sustained improvements can have a
very large impact on overall performance
49%
Improvement
min to max
25%
Improvement
mean to max
42. User profitability is basically determined by LTV* and CAC*.
Being able to even roughly predict LTV can be very insightful.
KPIs
DAU
Monthly rev.
Retention D1 43 %
Retention D7 24 %
Retention D14 19 %
Retention D30 12 %
Conversion
ARPDAU
ARPPDAU
LTV
CAC
ARPDAU nn € nn €
Extr. tot. days (≤120th) nn nn
LTV nn € nn €
* LTV = (Customer) Life Time Value ; CAC = Customer Acquisition Cost
46. Direct
Org. search
Email
SEM
Display
Other
Our main time unit of comparable comparison is a game
“phase”. The key desired user behavior varies within the phase
F
r
e
e
Trades
1
Pool
F
r
e
e
Trades
2
Pool
F
r
e
e
Trades
6
Pool
Direct
Org. search
Email
SEM
Display
Other
Pay
(Revenue)
Join pool
(Activation)
Sign up
(Acquisition)
Play the
whole phase
(Retention)
Continue to
next phase
(Retention)
Sign up or
reactivate
(Acquisition)
Desired user
behavior
Create pool
& invite
(Referral)
Invite friends
(Referral)
Make trades
(Activation)
Buy trades
(Revenue)
Create team
(Acquisition)
Phase 1 Phase 2 Phase 3-6
Season
Acquisition
Activation
Retention
Revenue
Referral
Acquisition
Referral
Revenue
Retention
Activation Focus area
47. We use various tools to identify development opportunities, run
tests and measure impact on the main high-level KPIs set
Area KPI
Acquisition
Signed up (%)
Created team (%)
CAC (€)
Activation
Active user (%)
In pool (%)
Retention
In-phase retention (%)
Phase change retention (%)
Revenue
LTV
ARPPU
Conversion
Referral Invited friend (%)
High-level (growth-stage-specific) KPIs to
continuously optimize
Tactical tools do explore user behavior and to
measure impact from change on KPI(s)
… …
Funnels
Emails
Anything!
Custom Dimensions
using hashed user
IDs enables user
level analysis, which
is VERY powerful
48. Some tools we are currently using
Tool Domain Sought benefits
Email Improve open rate and CTR
Email (transactional) Identify issues in use and funnels
Funnels Improve user onboarding and payments
Ecommerce Research revenue by product, user type, etc. (Enh. Ecom. Trac.)
Engagement Research anything at the user level!
Engagement Retention, User level progression
User Acquisition Volume and CPI (Cost Per Install)
Landing pages Optimize CTA (Call To Action) conversion
UI heat maps Research behavior and improve UI
KPI dashboard Communication and awareness
49. Some suggested further reading
* http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
Slideshare*
50. ...Design Product Marketing Business
Being data-driven requires much more than the right tools
Organization supporting lean development
Data-driven culture
Key concepts
Accessible tools
Shared goals
Management fostering self-direction
Key concepts Key concepts
These cannot be detached. There is no standalone analytics i.e. if not applied.
This is primarily about the culture and less about substance. I will show some examples though.
Handheld USB Snake Scope
Philosophy rather than a book of tools and processes
Also a ”Lean UX” book
Even the smallest friction can have a huge impact: try winning a track race with the handbrake lightly on.
Ownership: Make clear distinction between deliverables and benefits. Report progress, not action.
You cannot alter someone’s thinking unless they see the benefit and
Transparency: example breakdown of media sales
Autonomy to enable Mastery
Deliverable: Native fantasy sports app for Android, iOS and Windows Phone
Benefit: Enable fantasy sports coaches to act with real time information
Liigapörssi Registration Failed event
The 10 Commandments, Moses, back in the days
Le Penseut (The Thinker), Auguste Rodin, France, 1880
Cultures have normative dimensions and processes can be very creative. This is to illustrate a point about self-direction.
Price sensitivity
Price sensitivity
- Pirate Metrics (AARRR), Dave McLure
- Engines of Growth (Sticky, Viral, Paid), Eric Ries
- One Metric That Matters, Lean Analytics
A skateboard in the street is faster than a Ferrari in the garage
Classic Price sensitivity.
Emphasizes ownership of benefits (why not what).
IS traffic funneling
Service and app campaigns
Slottis registration and payment funnels
Fantasy Sports registration and payment funnels
Media monetization
One week campaign, 500k impressions
Sign of trust: App Store logo
Simple background
Green button
Facebook native ad look-alike
IS traffic funneling
Service and app campaigns
Slottis registration and payment funnels
Fantasy Sports registration and payment funnels
Media monetization
A Very leaky bucket
Leaky bucket, even a just a sieve
Core loop and retention loop
Leaky bucket, even a just a sieve
IS traffic funneling
Service and app campaigns
Slottis registration and payment funnels
Fantasy Sports registration and payment funnels
Media monetization
Even this very simple model gives a rough idea about LTV
For simplicity, assuming no variable costs, or that LTV is lifetime profit
IS traffic funneling
Service and app campaigns
Slottis registration and payment funnels
Fantasy Sports registration and payment funnels
Media monetization