Before you build a goal tree, 
   let’s take a look at the 
   structure behind it. 
                                         Compa
                                         Compa                       Your company metric 
   Goal trees help you define              ny 
                                           ny                        measures a high-level goal: 
   the strategic KPIs that your          Metric
                                         Metric                      an increase in revenue for 
   program will optimize                                             example.
   through testing and 
   personalization.                                                  Each business unit takes 
                                         Busines                     a different approach to 
                                         Busines
   Notice how the company-               s Unit                      that metric. For example, 
                                         s Unit
   level metric cascades                                             the Marketing department 
   directly into experiment-                                         might focus on increasing 
   level goals.                                                      the revenue per visitor 
                                        Optimizat                    (RPV). 
                                        Optimizat
                                        ion Goals                    The optimization program 
                                        ion Goals                    breaks down a major KPI 
                                                                     such as RPV into more 
                                                                     focused targets, such as 
                                                                     average order value (AOV).
                                                                     Individual experiments test 
                                                                     ways to create lift in the 
                                       Experimen                     metrics that matter to the 
                                       Experimen                     program. One might improve 
                                         t Goals
                                         t Goals                     the AOV by optimizing the 
                                                                     average order quantity, for 
                                                                     example.
   EXAMPLE
   Goal trees break metrics down 
   mathematically. 
   Take a look at a category: Revenue 
   per Visitor, for example. This is the 
   root for two branches: Average                                             Revenue:
   Order Value and Conversion Rate.                                             $2.0m
   Notice how the branches multiply to 
   equal the root. Average order 
   Value x Conversion Rate = 
   Revenue per Visitor.
                                                     Revenue                                           Visitors:
   Use this method to create your own               Per Visitor:
   goal tree.                                          $1.00                                             2.0m
                                  Average                               Conversion             User                User 
                                   Order                                   Rate:           acquisition:         retention
                                   Value:                                  2.00%               1.5m                33%
                                   $50.00
                        Average           Average per                                 Cart 
                        quantity:          unit price:        Add to Cart          Checkout 
                          2.00               $25.00                                  Rate
      Build your own tree                                       
      Identify the goal tree that aligns best with your own. Modify 
      it to align it to your own company and program goals.
      • Begin at the top of the tree
      • What does your company do to generate revenue?
      • How does each metric break down into a smaller set of 
        metrics? 
      Remember! Each set of branches should equal the value of 
      the root it springs from. 
                                      Digital Commerce + Physical Retail
                                                                                                                                                                  Profit
                                                                                                             Revenue                                                                                             Profit Margin
                                                                       Revenue Per                                                                Customers                                              Fixed Costs         Variable 
                                                                        Customer                                                                                                                                              Costs
                                    Online                                                                    Offline                                                                                                     Transactional       Shipping &          Cost of 
                                   Revenue                                                                   Revenue              Web              In-Store            App                CAC                Tax              Costs            Handling         Goods Sold
                                  Attribution                                                               Attribution
        Average          Conversion        Advertising         Assisted          Foot Traffic      Conversion        Basket Size         Assisted                                                                                                               Product Mix
      Order Value           Rate                                 Value                                Rate                                 Value
            Internet & Telecom                                                                EBITDA
                                                                    Revenue                                            EBITDA %
                                            Revenue Per                                    Visitors         Fixed Costs       Variable Costs
                                               Visitor
                                  Average Order        Conversion                  User            Retention             User           Cost of Goods 
                                      Value               Rate                 Acquisition                            Acquisition            Sold
                                          Upsells:
          Per Contract                                       - Affiliate      Landing Page                             Marketing         Mix of sales
          Contribution                  + Attribution      Commissions         Optimization
                                            LTV
         Net Promoter 
             Score:              Product           Customer 
          Order success,       Availability          Type
            customer 
            feedback