Josh Elman, Partner, Greylock Partners

1. The only metric that matters
Josh Elman @joshelman
August 7, 2014

2. Everybody starts at zero

3. With a dream of making an impact

4. But along the way, how do you know
if it’s working?

5. You have to track things somehow…
but it can be overwhelming…

6. Our D7 retention is
60%. D30 is 22%.
250 million PVs in the
last 30 daysWe just topped
200,000 sign ups
We have a 50%
DAU/MAU ratio
We have over 1 million
downloads
Everybody has a data point

7. But where do I start?

8. ARE PEOPLE USING
YOUR PRODUCT?
Just focus on one thing:

9. Ok, but how can I tell?
1) Usage: Do they use your product how you expect?
Track: #users taking core actions each day
!
2) Cycle: Do they use it at the frequency you expect?
Track: #users who visit at least N days in a week or month
!
3) Retention: Are they sticky? Will come back to this…

10. LinkedIn Circa 2005
Usage:
Find and be found
!
Cycle:
Find: 2-3x/week
Track: #users who log
in and search per day
!
Be found: 1-2x/year(?)
Track: response rate to
InMail

11. Yelp
Usage:
Find local businesses/
services. And review
them.
!
Cycle:
Searchers: 2-3x/week
Track: #users who
search per day
Reviewers: 1x/week(?)
Track: #reviews / day

12. Facebook
Usage:
Stay connected with
friends
!
Cycle:
2-3x/day
Track: #users who log
in and view News
Feed

13. Expedia
Usage:
Plan a great trip
!
Cycle:
3-5x/year
Track: #users who
search per day

14. ARE PEOPLE REALLY REALLY
USING YOUR PRODUCT?
So they may be using it once, but…

15. Really really using? (aka “Core Users”)
1) Top of Mind: Do they come directly to your product vs
referred by a link or special offer
Track: % users with direct traffic / engagement
!
2) Recurring: Do they come back again and again
Track: % users who return weekly/monthly
!
3) Referring: Do they share it with others?
Track: k-factor, and % users who are referrers

16. Step 1) Analyze month over month usage
# days visited in month 1
%whovisitedNdaysinmonth2

17. Step 2) Determine threshold for core
0%#
10%#
20%#
30%#
40%#
50%#
60%#
70%#
80%#
90%#
100%#
1# 2# 3# 4# 5# 6# 7# 8# 9# 10# 11# 12# 13# 14# 15# 16# 17# 18# 19# 20# 21# 22# 23# 24# 25# 26# 27# 28# 29# 30# 31# 32#
Reten%on'Rate'based'on'#'%mes'used'in'month'1'

18. Step 3) Understand activation buckets
CORE
CURIOUS NEW CASUAL
COLD
20%
90%
40%
40%
40%
8%
50%
10%
95%
4%
1%

19. Step 4a) Find out why — from your data
Following more than 30 accounts
1/3 - mutual follows
2/3 - one-way follows

20. Step 4b) Find out why — call them!

21. Cherish them. They are your super heroes

22. I have a few core users. I want more!

23. Problem 1: not enough people sign up

24. Clone your core users
1) Word-of-mouth Virality: help your core users describe
your product. Say it yourself to the press. Inception!
!
2) Demonstration Virality: have your core users share
content and more from your product. Demonstrate their deep
usage.
!
3) Infectious Virality: encourage users to bring their friends in
so the experience is better for both. Incentives ok too!

25. Problem 2: people sign up, no one
sticks around

26. Onboard users all the way to Core
1) Learn Flow: teach your users your product as they sign
up. Take your time. They are there to learn. Don’t rush it.
!
2) Welcome Week: if users don’t do it the first day, nudge
them to come back and keep going
!
3) Social Pressure: if friends are on the system, use them to
welcome, teach, and connect with the new folks

27. One metric to rule them all:
HOW MANY PEOPLE ARE REALLY USING
YOUR PRODUCT?

28. The only metric that matters
Josh Elman @joshelman
August 7, 2014