Fabricio Quintanilla - eCommerce Day El Salvador 2019

1. The Marketplaces Revolution –
Metrics & Traction
Metrics & Traction
By Fabricio Quintanilla, PhD

2. Agenda
• Why metrics?
• Vanity metrics
• Funnel
• Actionable metrics & economic units

3. Why?
<< What you can’t measure, can’t be improved >>

4. Why?

5. Why

8. Why
• You need control / anticipation
• You need preparation for quick moves
• You need to explain what you did, why you did
it, how you did it and what are the
consequences

9. Vanity metrics vs
Actionable metrics

10. Vanity metrics
• # visitors
• # users
• # downloads
• # followers on social networks
• # subscribers @ newsletters
These metrics make sense but have less importance than
you think

11. Funnel

12. ATTRACT
CONSIDERATION
PURCHASE
Active Evaluation
Gather Information, social purchase,
Review and reputation, customers ask
online
social, review y reputation,
customers ask online
Continuous exposure
Includes experience with
the product or service, and
the information that can
empower to choice or
getting a conflict with itself
A need, an event than changes
circumstances, news, a cultural
change, including an
announcement
Causes
Loyalty CyclePost-purchase
Experience
FAMILIARIZE
1
23
4

14. Sources of traffic
Conversion rate is key

15. Sources of traffic
• ORGANIC
– Content / blogpost
– SEO
– Referrals
– Social Networks (free)
– Direct Traffic
Be careful, nothing is FREE

16. Sources of traffic
• PAID
– SEM
– Social Networks (ads)
– Affiliation / Reseller agreement
– Retargeting
– Conference
– Partnerships
– Outbound sales
Google Analytics can help you defining sources of traffic

17. Actionable metrics

18. Metrics - Evolution

19. Metrics for sales & growth
• (New) Annual Recurrent Revenue - ARR/MRR
• GMV or Revenue
• Recurring Revenue vs Total Revenue
• Daily Active Users – DAU/WAU/YAU
• # transactions

20. Metrics for sales & growth
• ARPU (Average Revenue Per User)
• ACV (Annual Contract Value)
• AOV (Average Order Value)

21. Metrics for marketing & efficiency
• Revenue (Expansion/upsell)
• CAC (Customer Acquisition Cost)
– Total marketing & sales spent / # new customers

22. Metrics for marketing & efficiency
• Churn rate in revenue or #customers
– Lost customers/revenue per period
• Gross churn rate
– #customer in month that are there in month x+1
• Net churn rate

23. Metrics for marketing & efficiency
• CLTV (Customer Life Time Value)
– We can’t consider a customer will stay forever
– Total revenue an ”average” customer will bring
• Payback Period
– Months needed to recover CAC
• CLTV / CAC
– Measure efficiency to cover the cost of acquisition
and other costs

24. Metrics for Customer success
• Responding time to user request (per channel)
– #request / month
• NPS (Net Promoter Score)
– #(9&10)-(1to6)

25. Metrics for Marketplaces
• #(new) listings
• #listings fulfilled
• #bids/listings
• #listings/#listings fulfilled (Demand fulfillment)
• Average period to fulfill listing (Liquidity)

26. Metrics for Marketplaces (buyers – sellers)
• #transactions/user (buyers or sellers)
• #transactions/user/year (repeatability)
• GMV or ARPU/user
• CAC/user (blend or paid)

27. Metrics for product
• #bugs tracked this month
• #bugs solved this month
• Average time to (start to) solve a bug
• Average loading time of product / page

28. Evolution of these
metrics is know how
to act

30. MEASURE AND TRANSFORM
YOUR ORGANIZATION
And the results will be amazing!!
www.fabricioquintanilla.com
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