Funnel matrix stages

● Can be overwhelmed by too many analytics
● Need to identify the stages a user must go through to go from suspect to repeat user
● Each row conveys snapshot of user’s story as she moves from first time exposure to dedicated user – each row is a stage of user engagement.
● Need to set a time limit eg for TradeYa 60 days because if they could not convert a user in 60 days they would be at point of diminishing returns
● You should refer to your business model (see Lean analytics book below)
● Crucial is that the stages flow as a linear and measurable progression.

Stages

Suspect TradeYa
● For TradeYa’s Funnel Matrix, a Suspect was anybody who had or ever wanted goods or services. But this is too wide.
● The TradeYa Suspect is also somebody who thinks it would be cool to trade things for social reasons. We knew this type of user existed because of clothing swaps, collector clubs, and other trading sites. We felt like we were looking for a Suspect who was similar to a user who might use the bartering section on Craig’s List.

Lead stage TradeYa
● Somebody who landed on a TradeYa page, regardless of how she gets there, and then signs up for the site. She could come from various touch points: social media, word-of-mouth, or an organic search.

Prospect stage TradeYa
● Now in the negotiation phase toward becoming either a paid.
● Somebody who sees something he specifically wants or has something specific he wants to trade; he posts something to trade or he bids on a trade already posted on the site.
● This user takes the first action possible on the MVP interface toward engaging in an actual transaction of our key experience.

Customer stage
● Customers either pay to use the product or they contribute something that is valuable to other users. In a two-sided market and in the freemium economy of the Web, this could be content, a listing, or request.
● For TradeYa, a Customer is a user who engages in and completes a successful trade. This means that after bidding, she wins the trade and successfully completes the transaction, or vice versa.

Repeat user stage

● For TradeYa, a Repeat User is somebody who is involved in multiple transactions. He trades something and then continues to offer or bid on items or services to trade.

Reference user stage
● A reference user is somebody who refers others to the site based purely on her initial or continued experience. She brings other suspects to your
● product by spreading the word. This is called virality and feeds that engine of growth
● You must love these people and work diligently at making them insanely happy with your product.
● For TradeYa, a Reference User is somebody who shares a TradeYa page, whether it is one that she was promoting or just a page she found interesting.

Horizontal Axis

User’s process
● Describes the types of activities that users will be engaging in at each stage as they experience your product. Where are they exactly? What task are they trying to complete?
● What are my initial touchpoints with potential customers? What are the most likely ways the users will initially discover the product (these way are your sales channels)? Experiment with them.

Suspect
They see an item or hear about TradeYa somehow (ie press, word-of-mouth, social networks, etc) that attracts them to the site.

Desired Action
● What you hope users do in response to the process they just experienced. This is the action you want them to take. What’s the shortest path of required actions to get your users happily down the funnel.
● It could be any type of activity, ranging from
○ getting the user to enter his email address,
○ to signing in with his Facebook account,
○ to clicking the “Place your order” button.
○ If your product’s revenue stream is from selling banner or video advertising, the goal is to make the content pages more compelling with plenty of “Read More” links to keep customers clicking and swiping.
○ If you want to increase the Time on Site (ToS), you probably want plenty of related onsite articles to keep users bouncing around your pages like an endless game of pinball.
● Think about what happens next for the user in terms of content/messaging/ experience. What about device, what about page entry – is the value proposition conveyed clearly?
● Lands on TradeYa’s homepage and is present with the multiple TradeYa items and is not required to ‘Onboard’ or log in until they click a required logged-in-action. Lands on TradeYa item page because user is coming from a direct referral link.

Business Task

● Business goals viewpoint. What must happen behind the scenes to enable the user’s process.
● Build marketing organically rather than piling it on top of the completed product and then tying it back with metrics.
● TradeYa: SEO/ Social media campaigns, publicity outreach / paid advertising traffic.
● Find new channels and try lots of experiments to reach your potential customers and grab their attention. This requires consideration of the different touch points and contexts in which users might discover your product — on Facebook, on their mobile devices, on their computers at work, or simply overheard at the espresso machine.

Metrics

● Eric Ries – actionable metrics that either confirm or refute a previously stated hypothesis
● Vanity metrics represent nothing more than ability to buy or drive traffic to your landing pages
● Key metrics signify if your value proposition is working or not.
● TradeYa – analyze data about the behavior of new visitors, as shown in Figure 9-11. If the Suspect didn’t come to TradeYa through the home page, what therefore were the most trafficked pages? What was the bounce rate? How many minutes did she interact with the site?
● Visits, bounce rate, % of first time visitor coming to homepage v item pages, top sites that traffic is coming from.
● It may depend on your business model:
○ Average Visit Duration” (see Figure 9-12) is more relevant for certain business models such as media sites trying to sell advertising.
○ For ecommerce sites we should be looking at transactions.
○ For SaaS, we dread “churn,” which is the number of customers lost over a given time period. A primary goal in SaaS is customer retention. Retention = stickiness = habitual use = returning customers.

Required functionality

● Features and platforms (i.e., Twitter) that your team must enable and integrate for that level of the funnel to work from a UX perspective.
● Feature set must work for an entire user journey and is absolutely critical to the product itself working.
● Focus on the features that enable the product to work well and that are carefully considered from these multiple perspectives: user value, level of effort to build, and business value.
● Balance the level of effort it will take to build the feature set against the impact it could have on the product. How many people will actually use it or have requested it? Is it a unique feature to your product that will set it apart from competitors, or will it just be a neat gimmick that people will try once and never use again?

TradeYa, the features that were absolutely crucial were:
● The ability to bid on an existing trade and the ability to post a specific item to trade (see Figure 9-13).
● Account creation was circumvented by requiring users to have and sign-in via a Facebook account.
● We also needed a polling feature to learn what our customers were interested in trading.
● Landing page with google analytics set up. TradeYa Twitter profile, TradeYa facebook profile.

Validated learnings
● The entire purpose of this Funnel Matrix is to help you answer qualitative questions about your product using verified data for comparative benchmarking. TradeYa
● At the Suspect stage was “Where were our customers coming from who would become long-term customers?”
● We wanted to know which of our channels (Twitter, Facebook, Google Ads, or organic search) was the most effective.
● After our suspect landed on a TradeYa page, the validated learning became more specific to the suspect’s actions.
○ What types of goods or services had the most people bidding to trade? For goods, was it laptops or furniture?
○ For services, was it web consulting or day laborers? Were people trading more goods than services?
● What percentage of users are coming through the front door (homepage) versus a TradeYa item page? What sites are they coming from (ie Facebook)? What are the highest populates of cities/countries coming to the site? Do we see spikes in traffic tied to a specific marketing campaign?
● You are using metrics to give insight into whether the cause (user process + business task) will generate a positive user effect (desired action). The outcomes (success or failure) are basically your validated learnings.

Leave a Comment

%d bloggers like this: