Post by Tim Trefren (Co-founder of Mixpanel, Inc.) guest posted at http://mashable.com/2010/02/02/social-analytics/

When most people think of web analytics, they think about pageview tracking; basically, measuring which pages on a website are being viewed. Pageview tracking is a well-established technology, but it's no longer meeting the needs of many of the most well-known companies in social media. Companies like Facebook, Zynga, Slide, and RockYou are spending tons of resources building their own internal analytics tools.

There's a reason for this: Social media is highly competitive, and the biggest advantage you can have is data. To improve and grow, these companies need to gather as much information as they can, and they need more than simple pageview tracking.

In the following sections I will cover three of the most important things to measure for social applications.

1. Funnel Analysis: Measuring Conversion Rates

---

One critical kind of analysis that social apps require is called Funnel Analysis. This is a way of measuring conversion rates, which is the lifeblood of all applications. The term conversion rate refers to the total number of visitors who came to a site, compared to the number of visitors who did a desired action (such as creating an account or purchasing an item).

What Funnel Analysis gives you is a more granular way of analyzing conversion rates. Instead of simply looking at signups divided by total visitors, you figure out the steps that have to be taken to get a user to sign up and measure the individual conversion rates between steps. As you can see from the image above, there's often a pretty steep dropoff between each step, giving you the namesake funnel shape. (Note: the image uses made up stats and is for illustration purposes only.)

This more granular look at conversion rates can have surprising results. Let's take a look at Twitter'ssignup funnel:

1. Hit homepage
2. Go to signup page, fill out registration form
3. Browse suggested topics
4. Add e-mail friends
5. Search for someone

As you can see, the signup process is pretty complicated, and will benefit from detailed analysis. We might find, for example, that there's a huge dropoff rate (a dropoff occurs when many of the people who made it to one step don't make it to the next) at the Add e-mail friends step. Once we've discovered a dropoff rate like this, we have to figure out the root cause. The dropoff rate at the Add e-mail friends step could mean that users are unsure how to continue, causing them to leave, or they might not want to add their e-mail information. We would have to test to make sure.

Ultimately, Funnel Analysis is about finding and improving trouble spots in a website. With continual analysis, changes can be measured and ideas can be tested over time.

2. Engagement Tracking: Measuring What People Do

---

As I mentioned earlier, pageview tracking is becoming less and less relevant for many web companies. Instead of the basic unit of measurement being the pageview, they are starting to track more directly relevant things, like the actions people are taking. Twitter, for example, may want to know how many tweets the average person sends and what they are searching for, not how many pages they viewed. Pageviews are just a way of approximating the information we really want, and as the web grows more interactive, they become less and less relevant.

Think about this: Sites exist today on which you never actually change the page. These are highly interactive sites, but they are impossible to track with pageviews, so traditional analytics tools are useless.

This will only become more common as time goes on and more companies develop highly interactive applications and adopt AJAX loading techniques.

3. Visitor Retention: How Many People Come Back?

---

This next technique measures a fairly complex but extremely valuable metric for successful web applications.

You can think of Visitor Retention as a measure of how sticky your site is. What we're really measuring is the percentage of people who come back again and again. The most common way of approaching this is to look at a group of users from a single time period (a week, for example) and track their behavior over time.

Here's an example of a retention table that should help clarify things:

Each row shows the weekly retention rates for a single group of users (sometimes known as a cohort). The first row, for example, is the cohort seen between December 7 and December 13, 2009. We can see that 15.15% of the users in that group came back after 1 week, 13.4% after 2 weeks, and so on.

This is crucial information, particularly for social applications, because most of the value lies in the size of the community. An application with low retention is like an empty shell many installs but few active users and you don't want to build an empty shell. You want a thriving, vibrant community.

Retention is a huge factor in building a strong community for a few reasons: You don't have much of a community if everyone is a newcomer (so more old users is a good thing), and the nature of retention is such that you get disproportionate returns on any increases you make. Without going into too much detail, an example would be that increasing retention by 33% might give you 50% more users in the long run.

Twitter is again a good example for us, as the network has been plagued by low retention rates. Twitter may seem successful now, but their low retention rate is troubling. In the past, companies that seemed to be extremely successful (think early Facebook apps) ultimately lost their edge because they couldn't retain their users.

It's entirely possible that Twitter itself could be a fad. With such low retention, I wouldn't necessarily be surprised but it is still too early to tell.

Conclusion

---

There's a lot to learn about analytics from the frontrunners in social media. The intense competition has resulted in many new and innovative ways to track and analyze visitor data.

We covered three such concepts in detail today: Funnel analysis, which lets you track conversion rates across whole parts of your site, engagement tracking, which is becoming more relevant than pageviews, and visitor retention analysis, which helps you understand and optimize the number of repeat visitors you get.

Permalink | Leave a comment

I purposely waited a few days before writing my iPad article just to be sure that the initial excitement and hype is washed out of my system. I wanted to make sure that I'm writing as objectively as I can and not just let my emotions get the better of me. That being said, here are my thoughts on Apple's iPad.

iPad - image courtesy of Apple Inc.

The world has waited quite awhile for Apple to finally release its tablet. The world wanted it so much that in a way it worked against Apple. People built up their expectations of the iPad so high that it was going to be tough for Apple to surpass it. Did they? The simple answer is no. The iPad falls short of the world's lofty expectations. Is it Apple's fault? Not totally.

The world wanted Apple to produce a breakthrough device so much that when Jason Calcanis, founder of Engadget fired of tweets saying that he had been a beta tester for Apple and started to rattle off specs that were too good to be true, people believed him (this writer included). Why not? He's been writing about the tech industry and is one of the more recognizable names in the blogosphere that it seemed plausible. I hindsight, the solar panels should have been a dead giveaway.

On to the iPad. At first glance it does indeed just look like a big iPod Touch. Is it revolutionary and magically as Apple said it is? It should be had the world not been exposed to the iPhone and iPod Touch prior to it. On its on it is still revolutionary. Here's why.

1. The size is a big factor Sure it may look like a big iPod Touch but the bigger form factor just opens up a lot more possibilities. I've been a long time user of the iPod Touch and iPhone. I have both the first generation of iPod Touch and iPhone and thus have a little bit of experience with the devices. They both are great mobile devices. For checking important emails, looking up stock and weather quotes, reading a short article on the internet that really can't wait both these devices are top notch. But for reading books, watching movies, etc. It's just ok. After awhile your head starts to spin because of the eye strain and makes you want to put it down. The iPhone and iPod Touch are great mobile devices that can be used for short periods.

On the areas that the iPod Touch and iPhone are lacking, I think this is where the iPad starts to shine. Its size makes for an excellent device to watch videos on. The screen is large enough for personal viewing that it doesn't become such a chore. Reading books should be easier too although I shall reserve judgment on that until I actually get to try it.

2. Keeping it Simple - I've heard about a lot of people saying that the iPad lacks multi-tasking, etc. but I believe that Apple's attitude of keeping the iPad simple is actually is a strength. We've been surrounded by a culture of multitasking that it's gotten to a point that it's become a hindrance rather than helpful. When we work on our computers, we often find ourselves doing email, chatting, reading web pages all at the same time. It's becoming confusing and our concentration is suffering. I'm not saying this is always bad but in some cases keeping focus on things is good.

I also believe that the target users for the iPad are really people who aren't that techie. Let me qualify this. I'm not saying these people don't like technology or are adverse to it. I'm saying these people are the ones that like technology that just works. That's why a lot of people play games on consoles. Sure they can play games on the PC but it takes so much work to do so. Consoles are simple. You place the game, you play. Simple. The iPad is pretty much simple as well. It won't take rocket science to figure it out.

3. Touch me - The touch interface feels natural. It's been around for awhile but Apple's iPhone/iPod Touch interface that has been adapted for the iPad is the most natural touch interface I've seen. It's not a PC interface that has been adapted for touch. It's actually designed with the touch interface in mind. Therefore it just feels natural. People who aren't tech oriented really don't have a hard time figuring it out. Case in point, my tech challenged mother didn't have a hard time learning her iPhone.

4. It's what inside that counts In this case, one of the biggest things about the iPad announcement is actually the processor. Apple now has it's own processor inside one of its devices. It actually looks pretty good. If the impressions of people that have had a chance to play with the iPad. This thing screams and isn't power hungry. If this chip finds it way to the iPhone, we'll have quite the smart phone on our hands.

The iPad was designed to fill a gap between the netbook and a smar tphone. Will it do that? I think to a certain extent it will. I envision people buying this to have them in their homes and have easy access to email, photos, videos. Sometimes you just want to share photos with a friend and not necessarily project it on the TV. The iPad is a good alternative.

I also see it as a good addition to people who have desktops but want something portable to bring around the house to check emails, watch videos from anywhere and yes that includes the bathroom. I don't think it will get hot enough to burn your crotch as a MacBook/MacBook Pro does.

Will it revolutionize the way the iPod has? It has the potential to do so but only time will tell. For a 1.0 product it's good. I'm sure as with the iPod and iPhone the succeeding versions will only be better.

Post from: EveryJoe

Apple iPad: Breakthrough or Breakdown?

By Senior Editor Kris Smith (@croncast)

I have been loathe to write this post due to the nature of the subject matter but feel I must for a few reasons.

Over the last week and especially the past few days many of you have probably become aware of Roger Avary the twitterer.

You know, the guy that is tweeting from the big house as he serves 1 year in prison to pay his debt to society for vehicular manslaughter.

There is debate as to whether it is really Avary tweeting to share his prison experience or if it is one of his friends. I'm sure that will shake out in the future and we can either roil in disgust and awe that he shared this experience or be flattened when we find out that it was a sham. Either way, at this point it doesn't matter.

What does matter is that the story of a convicted man is being played out on Twitter. Even if it is simply his likeness being played by a friend and the tweets are fabricated it is no less engrossing. It is also provoking us to ask if we would do the same in his position?

The emotions that are moved by this situation are plenty. More people than will every admit have driven while intoxicated. Everyone can imagine themselves in the shoes of the grieving family that lost a loved one in the tragedy that landed Avary in prison. And finally, Americans love prison shows on television and crime novels. Think Shawshank Redemption but now on Twitter in real-time.

It is like a prison house diary released one sentence at a time. The inherent drama of a man in peril moves the story along as he seeks to fit into a new culture that he himself has only written about in movie scripts.

My personal abhorrence to Mr. Avary's crime forced me to immediately unfollow his Twitter account after deciding to follow. However his story this story, that is going on right now is significant for the changes that it represents in our culture. It is a base desire to be curious about that which we don't yet know. And as those outside the prison walls can now see in through real-time updates we should strive to teach from it, not just be entertained by it.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

Avary In The Aviary A Burden of Real-Time is a post from: TechStartups.com

By Staff Writer John Federico (@gadgetboy)

PR firm Edelman Public Relations has launched its own twitter measurement tool. The tool, called TweetLevel, is a qualitative tool that measures a Twitterers gravitas or importance based on the content of their tweets. It takes some serious semantic mojo to accomplish that and I have to wonder if Edelman is up to the task.

Of course, TweetLevel doesn't ignore numbers altogether. It does take into account the number of followers a Twitter account may have and the account's participation in the community (I assume that means tweet frequency). However, the tool places a much greater weight on what is being said and how trustworthy an individual twitterer may be.

Using a 100-point scale, here are some of TweetLevel's highest rated Twitterers:

• Perez Hilton (score: 86.5)
• Mashable (86.3)
• Twitter Tips (85.2)

Perez Hilton!? Edelman's developers may have to go back into the lab for a rewrite

Microsoft PR Agency of Record Waggener Edstrom launched a similar tool called Twendz earlier this year. Twendz monitors trending topics on Twitter while providing sentiment analysis on those topics. As of this post, I was unable to get Twendz running in Chrome, Firefox or Safari on my MacBook running Snow Leopard 10.6.2. The Company plans to offer a premium version of the tool later this year.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

Twitter Startups Born from PR Firms is a post from: TechStartups.com

By Senior Editor Kris Smith (@croncast)

This afternoon I noticed something funny happening with Google Reader shared feeds. It seems that feeds are now mixing namespaces for the main content of the posts.

Previously, all content was delivered via the 'summary' namespace. When I did a check after getting some null data fields in a database I took a look at the shared feed . . . sure enough there was a new namespace, content' for the main content. Makes sense. But it is a pain if you are expecting everything to be returned as 'summary'.

My guess is that they are saving time and money by not rewriting the original source feed main content namspace. However, it creates an XML namespace soup that is harder to navigate.

When stuff like this happens it makes me nervous, especially when I am building something on the back of it.

The last time this happened Twitter turned off pagination for getting recent tweets for your friends. It killed a really cool project that I spent more time working on than I care to recount. I'm hoping that Google will not do the same. Fingers crossed.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/0

Using The Magic API is a post from: TechStartups.com

By Senior Editor Kris Smith

A few weeks ago the FTC updated their advertising guidelines for endorsements and testimonials to include blogs and other new media publishing methods. In the time between this update and today, DigComm (short for the Digital Communications Group), a company that builds digital communications tools for PR and social media agencies, has released CMP.ly.

CMP.ly is a simple solution for what could become a confusing and complicated landscape of sorting out what types of disclosures are needed different circumstances. CMP.ly makes this easy by allowing bloggers, SMS, tweets and podcasts simply link to a standard human readable disclosure.

The six standardized disclosures include:

CMP.ly/0 No connection, unpaid, my own opinions
CMP.ly/1 Based upon a review copy
CMP.ly/2 Given a sample by vendor/agency/brand
CMP.ly/3 Paid post cash payment or other compensation
CMP.ly/4 Employee/shareholder/business relationship
CMP.ly/5 Custom Disclosure

And for my disclosure I am a co-founder of CMP.ly. I have worked very hard on this project with a great friend, Tom Chernaik. I believe that this is an important tool for any publisher to remain transparent as the old guard is now prepared to regulate this medium starting December 1, 2009.

What is most important for us is that a site like CMP.ly is coming from people within the independent publisher community. It is our belief it can be used as a platform to prove that we're not new media, but the media.

DISCLOSURE OF MATERIAL CONNECTION: http://cmp.ly/4

Post from: TechStartups.com

I just looked at the baby photos of Milan being born. Back then we did something pretty cool with a service called Twittergram. We recorded his first cry. But now Twittergram seems to have gone away and with it, our baby's first cry. That was only two years ago. You can see the link there, but it doesn't work.

This isn't the first time I've noticed things online disappearing over time. My first two years of blogging are gone. Some of that was backed up by the wayback machine.

I've seen other people's blogs, or other online items go away too. Hey, quick, find some of your Tweets from just four months ago. They are all still online, but you probably can't find them. Me neither.

Or, wait until you are hacked and don't have a backup, like happened with me. I love the folks who say you should have backed up. How do you back up everything you do online? You can't. Quick, back up all your Google Docs, your Tweets, your Flickr photos and all the metadata surrounding them (comments, tags, etc), your Facebook items, etc etc. You will die trying.

I know, I've been backing up like a crazy man lately since I got hacked. What's funny is one of my brand new hard drives died. Luckily I had a backup of that. But what if I didn't?

What if my house burned down tonight? I wouldn't be able to save everything. Heck, I'd be worried about getting my family out and screw the hard drives.

So our online lives leak away.

It gets worse after you die.

You think your family will be able to save your Flickr photos? Not if you don't give them your passwords. Here's why: they won't be able to find them.

I let my Flickr Pro account lapse cause I was too lazy to put in a new credit card. I couldn't even find my old photos. Why? Because Flickr's search only shows the last few photos and they turn off the calendar and all sorts of things if you stop paying for the pro account. Yowza.

Reminds me of an interview I had with Jeremy Toeman who built a new company called Legacy Locker. But now we need to put enough cash in there to keep Flickr accounts paid up so my sons will be able to see their photos after I die.

Some best practices I've learned:

1. If you care that it stays around, use services from big companies. Google will probably stick around for a while. Twittergram? Gone.

2. Put your stuff in multiple places. Why? Because maybe Yahoo will decide to turn off the Flickr service in 10 years. So, make sure your photos go to other services.

3. Back up what you can, but that won't help long term. Quick, if your dad handed you a hard drive with 10,000 photos would you be able to find anything on there? What if you got that hard drive in 30 years? Would you be able to even look at what's on it? Remember, when I was in college my entire life was on floppy disks. I can't even read those now.

4. Print out stuff that you really want to save. I still have my trunk of photos from my childhood, but lots of my photos taken digitally over the years are gone or hard to find.

5. Use services like Legacy Locker to ensure that your kids at least will have your passwords and rights to your stuff and accounts.

Any other best practices?

I am a big fan of Twitter. It's amazing how quickly information can flow, from tweet to tweet, and person to person.

If you haven't done so, feel free to follow my tweets, and say Hello.

Today's Twitter Finds And Friends -

Finds -

Do you like bean bag chairs? Do you like personal finance forums? Then, you'll love Moolanomy's current giveaway. Register for the new Moolanomy Answers and you could win a Sumo Bean Bag Chair. (Tweeted by @moolanomy)

We recently spent an entire week removing clutter from our home and organizing our stuff. I'm totally digging Being Frugal's post - Why The Minimalist Lifestyle Appeals To Me. (Tweeted by @Zen_Habits)

Friends -

I am a big fan of @flexo from Consumerism Commentary.

I really enjoy @SunFinancial from The Sun's Financial Diary.

I learn a lot from @mymoneyblog from My Money Blog.

Follow me via Twitter

Twitter Finds And Friends

I recently spoke to Andy Stanford-Clark, a Master Inventor and Distinguished Engineer at IBM. He's been working on a number of Twitter and real-time monitoring projects, many of them at the intersection of two big trends we've been tracking in 2009: The Real-time Web and Internet of Things.

Stanford-Clark has set up various systems for real-time monitoring of the Internet of Things, many of them using Twitter (he calls the resulting tweets "tweetjects"). One example got a bit of mainstream media coverage lately: a house that uses Twitter to monitor its energy consumption.

Sponsor

As Rory Cellan-Jones from the BBC reported recently, Stanford-Clark has installed sensors on a number of household objects - such as electricity meters and windows. From this he can monitor lighting, heating, temperature, phone and water usage. Stanford-Clark is able to turn his fountain, lights and heaters on and off by flicking switches on a web page or from a live dashboard application on his mobile phone.

He's also now hooked up his house sensors to a Twitter account: andy_house (it's a private account, so requires Andy's approval before you can follow it). Here's a BBC tv report about the house and other similar projects involving sensors and Twitter:

As well as his own house, Stanford-Clark has also set up Twitter accounts for his local ferry and bus - for example so they can tweet their real-time locations.

What Use is a Tweeting House?

Stanford-Clark told me that as well as providing useful data about what his house is doing - for example how warm is the lounge, or has he left a door open - the system can also apply intelligence to his house. For example it can cross-reference house data against AMEE (an open platform for measuring energy consumption), in order to infer the real-time carbon footprint for his house.

These experiments are just the start of what's possible by hooking sensors up to real-time messaging systems like Twitter. However there's a lot of infrastructure work that needs to be done first. Stanford-Clark told me that to get at this type of data for many everyday things, governments, city councils and companies will need to instrument public things with sensors - e.g. gas pipelines, buses, trains, ferries.

The problem for most organizations, including government, is that they aren't necessarily sure what uses there are right now for sensors. For example power companies may not see the economic value of replacing meter readers with automatic sensors. Stanford-Clark's response is that "a lot of other apps will spring out of the woodwork," when sensors are added and hooked into messaging software.

Stanford-Clark and IBM have identified 3 main things that are required for this trend to play out fully, conveniently summed up as "the three 'I's": Instrumented, Interconnected, and Intelligent. In my next post, I'll explore this more - plus some of IBM's other projects in this area.

Put your new iPhone 3GS video camera to work with the new Tweet Reel iPhone app. It lets you record video on your iPhone and upload them as tweets to tweetreel.com and share the link on your Twitter account. Now you can tweet videos you shoot right from your iPhone 3G S. Tweet Reel senses the orientation of both the video clips and photos you take, and rotates them automatically for playback and viewing online. The iPhone app also automatically adds a short URL to your tweets so that your followers can immediately find and view your videos.

As these are tweets, they will be public, not private. You don't need to create any accounts to use Tweet Reel on your iPhone. The app just needs your current Twitter login information. Commenting on Tweet Reel is done through Twitter. Your photos and videos get stored on the TweetReel.com website organized under a nice personal url like http://tweetreel.com/YourName

Tweet Reel is a great alternative to uploading your Videos to YouTube from your iPhone 3GS, if you already have friends on Twitter and want to share videos with them on the fly. Grab a copy and take it for a spin.

This 3rd Party App is available at the Apple iTunes AppStore. Browse the full list of all AppStore apps filed under the AppStore category.