At Future of Web Apps Miami 2010 Neil Patel of KISSmetrics gave the audience 5 “must measure web app metrics”. It’s a short session but full of great hints and tips from someone who really understands this area. If you haven’t checked out Neil’s blog I really recommend you do.
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Ryan: We work quite hard to pick topics that we think are relevant for you guys, and one thing that I think is really hard when you run a web app is analytics. It’s overwhelming to understand what you should be measuring, to see if your web app is succeeding; there are a ton of packages and it’s quite confusing.
We think that as developers you are able to build your apps just fine but when it comes to the marketing aspect, it’s quite confusing. We asked Neil Patel to talk about analytics and 5 things that you need to measure to figure out if you’re succeeding or not. I think it’s going to be a very useful session for you. Again, if you have questions, don’t feel afraid to ask. Please welcome up Neil.
Neil: Hey everyone, as everyone said my name is Neil Patel. I’m with a company called KISSmetrics. Today, I’m going to be giving a presentation on the 5 metrics you ought to be tracking. It’s pretty simple; there are 5 main points that are easy to track and easy to take notes. Here we go.
1. Revenue Per User
A lot of you track conversions. Am I correct here? If I told you that I could increase your conversions from 5% to 10% you would be ecstatic, correct? In most cases, if I increase it from 5% to 10% you’d be like, . That’s great. That’s going to be a lot more money.” On the flip side, if I said I could decrease your conversion rate from 10% to 5% and make you triple or quadruple the amount of money, you’d be like, . What?”
A lot of times when you’re on your web app and tracking metrics, what you have to track is conversion per user. An example of this is we have a SaaS based product tracking how much revenue is coming from each user per page. We use Google Analytics to do that. One thing we tested was we were charging $97 a month. I took that $97 a month price point, and I said, . What if I charged $197? What will happen?” Amazing, by roughly doubling the price, the conversions decreased by 10%. The cool part, the revenue increased by an overall 82%. That was a pretty big jump. We got a decrease in conversion but it was still worth it because we made more money out of it. Sigue leyendo