Eric Ries Engagement Loops The Levers And Metrics Of Engagement
1. Engagement Loops
The Levers and Metrics of Engagement
Eric Ries
Blog: startup lessons learned
http://www.facebook.com/event.php?eid=23439274966
2. PHAME
• Problem – customers don’t always stick
• Hypothesis – we can do something about it
• Action – by pulling the three levers of
engagement
• Metrics – and measuring the engagement
factor
• Experiments –find the points of highest
leverage; iterate, iterate, iterate
3. Levers of engagement
• Synthetic notifications
• Organic notifications
• Positioning (the battle for your mind)
5. Engagement Loop
• A customer decides to return to your product
• They decide to take some action
• This action may have side effects, such as
sending out notifications
• These side effects affect other customers, and
some side effects are more effective than
others.
• Some affected customers decide to return to
your product...
6. Engagement Loop example
• synthetic message: quot;upload some photos!quot; Some
percentage of customers click through. (C)
• Some percentage of those actually upload. (D)
• Those customers get prompted to tag their
friends in their photos. Some percentage of them
do (A), and these result in a certain number of
emails sent (B).
• Each friend that's tagged gets an email. Some
percentage of them click through. (C)
• Of those, some percentage are themselves
convinced to upload and photos. (D)
7. Engagement Loop
actionable metrics
Messages
Message Conversion to
Sent Per
Conversion Action
Engagement
synthetic
message
Receive Send
Action
Message Message
organic
messages
11. SuperPoke Engagement Loop
Invite Page Send invite Send Message
New users
notification/invite
Conversion to
Action
Viral loop Viral loop 2
Engagement Messages
Message
Loop Sent Per
Engagement
Message
Conversion
Receive Message
12. Friends for Sale Engagement Loop
Invite Page Action
• Buy
Send Message • Do
New users
• Favor
notification
• Gift
/invite
Engagement
Viral loop 1 Viral loop 2 Loop
Receive
Message
13. Friends for Sale Engagement Loop
Messages
Sent Per
Invite Page Action Engagement
• Buy
Send Message • Do
New users
• Favor
notification
• Gift
/invite
Engagement Message
Viral loop 1 Viral loop 2 Conversion
Loop
Conversion to
Action
Receive
Message
14. Split-testing all the time
• A/B testing is key to validating your
hypotheses
• Has to be simple enough for everyone in the
company to use and understand it
• Make creating a split-test no more than one
line of code:
if( setup_experiment(...) == quot;controlquot; ) {
// do it the old way
} else {
// do it the new way
}
15. The AAA’s of Metrics
• Actionable
• Accessible
• Auditable
16. Measure the Macro
• Always look at cohort-based metrics over time
• Split-test the small, measure the large
Control Group (A) Experiment (B)
# Registered 1025 1099
Downloads 755 (73%) 733 (67%)
Active days 0-1 600 (58%) 650 (59%)
Activedays 1-3 500 (48%) 545 (49%)
Active days 3-10 300 (29%) 330 (30%)
Activedays 10-30 250 (24%) 290 (26%)
Total Revenue $3210.50 $3450.10
RPU $3.13 $3.14
17. Thanks!
• Blog:
http://startuplessonslearned.blogspot.com/
• Web 2.0 Expo: April 1st, 2009
“The Lean Startup: a Disciplined Approach to
Imagining, Designing, and Building New
Products.”