THE STORY OF WHEN ACTION METRICS JOINED ARTBOOST
Artboost is a marketplace where artists can sell their art and where consumers can find unique art pieces. When the team first met Action Metrics, their reporting was unorganized and mostly on an ad-hoc basis. They had some charts in their back office, but it didn’t help them understand how their actions affected their performance, so it was rarely used.
The broken system for data analysis had an effect on the decision-making process, that mostly circulated around advise from people in their network, guesses and lengthy discussions among the founders. The CEO Mikkel Steen adds that “Our discussions included a lot of, ‘I think’, ‘I feel like’ and ‘it might be’ argumentations”.
Melinda Elmborg from Action Metrics joined the team during a month to help Artboost organize their data and reporting. To begin with, a workshop was organized to figure out what their objectives are and how these can be translated into measurable KPIs.
Together, they decided that their financial KPI would be GMV, Gross Merchandise Value. To measure customer value, Melinda helped them to focus on repeat rate among their consumers as a definition of customer satisfaction. To measure the value created for the artists, they identified sales per artist as the KPI to lead them to artist satisfaction.
She built dashboards in the tool Klipfolio based on the agreed KPIs and metrics that allowed them to understand the mechanics behind the KPIs. The tool became the data center of Artboost where data from Facebook, Google, Intercom and their own database come together in real-time to give a clear picture of the state of the startup. Four dashboards were created for different purposes:
Overview dashboard with focus on the top KPIs: GMV, LTV, CAC, repeat rate and artists with sale. This dashboard is shared with existing investors which allows the founders and investors to see the historical development of the company.
Traffic dashboard, with a focus on customer acquisition cost and efficiency for different channels to optimize marketing campaigns.
Conversion dashboard to optimize the performance on site, looking at how many of the registered users convert to buyers and however they come back.
Artist dashboard to follow the artists' activities and the stock of art pieces.
With the mapping of these metrics and KPIs in the form of dashboards, the team of Artboost has been able to gain an understanding and control of their startup’s performance. It has been possible for the team to see how their actions correlate with differences in performances.
"Action Metrics was instrumental in our process of becoming a data-driven business. Following the project, we started to have more data-based discussions rather than opinion based discussions. It has helped us to alter the mindset and the mentality of the company culture, making the probability of our overall success higher" says Mikkel Steen.
Concretely, it has made a difference in how they work as a team “Now, we’re focused on what we can prove, what we know and do not know. We’re actively searching for data in Klipfolio or by ad-hoc searches to back up our claims and actions in order to minimize risk”.
The insights and overview of metrics, customer and market understanding that Action Metrics helped them achieve has not just had implications in how they run their day to day decision making and weekly reporting. Mikkel Steen adds that “It had a profound implication in our overarching strategy. We have been able to more accurately project our future based on initiatives and market dynamics, which has let us revisit our business model and shift longterm focus internally”. Thanks to data and market insights, the team is now pivoting towards a new and better business model.
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