10. Just Gimme the GOOD Metrics.
Users, Pages, Clicks, Emails, $$$...?
Q: Which of these is best? How do you know?
⢠1,000,000 one-time, unregistered unique visitors
⢠500,000 visitors who view 2+ pages / stay 10+ sec
⢠200,000 visitors who clicked on a link or button
⢠20,000 registered users w/ email address
⢠2,000 passionate fans who refer 5+ users / mo.
⢠1,000 monthly subscribers @ $5/mo
the
good
stuff.
11. Lean Startup -> Startup Metrics
⢠Talk to Customers; Discover Problems
⢠Progress â Features (Less = More)
⢠Fast, Frequent Iteration (+ Feedback Loop)
⢠Focus on Product/Market Fit
⢠Measure Conversion (compare 2+ alternatives)
⢠Track Metrics that are Simple & Actionable
14. AARRR!: Startup Metrics Model
Website.com
Revenue $$$
Biz DevAds, Lead Gen,
Subscriptions,
ECommerce
ACQUISITION
SEO
SEM
Apps &
Widgets
Affiliates
Email
PR Biz Dev
Campaigns,
Contests
Direct, Tel,
TV
Social
Networks
Blogs
Domains
Retention
Emails & Alerts
System Events &
Time-based
Features
Blogs, RSS,
News Feeds
15. Startup Metrics for Pirates
⢠Acquisition: users come to site from various channels
⢠Activation: users enjoy 1st visit: "happyâ experience
⢠Retention: users come back, visit site multiple times
⢠Referral: users like product enough to refer others
⢠Revenue: users conduct some monetization behavior
AARRR!
(note: If youâre in a hurry, Google
âStartup Metricsâ & watch 5m video)
16. One Step at a Time.
1. Make a Good Product: Activation & Retention
2. Market the Product: Acquisition & Referral
3. Make Money: Revenue & Profitability
19. Role: Founder / CEO
Q: Which Customers? Problems? Metrics?
A: Focus on Critical Few Actionable Metrics
(if you donât use the metric to make a decision, itâs not actionable)
⢠Hypothesize Customer Lifecycle
⢠Target ~3-5 Conversion Events
⢠Test, Measure, Iterate to Improve
20. Optimize 4 Happiness â¨
(both User + Business)
⢠Define States of User + Business Value
⢠Prioritize (Estimate) Relative Value of Each State
⢠Move Users: Lower Value -> Higher Value
⢠Optimize for User Happiness + Business $$$
⢠Achieve High Cust Value + Low ACQ$ @ Scale
21. What is Minimum Viable Product ?
MVP = F(Customer, Problem, Time or $$$)
⢠Focus on CUSTOMER
â Qualitative Discovery, Quantitative Validation
⢠Get to know habits, problems, desires (FUN MATTERS)
â what causes pain? what causes pleasure?
⢠Ship the simplest, fastest solution that solves the problem;
better or cheaper or faster than the available competition.
⢠Define 1-5 TESTABLE Conversion Metrics of Value
â Attention/Usage (session time, clicks)
â Customer Profle Data (email, connect, profile)
- Revenue (direct or indirect)
- Retention (visits over time, cohort behavior)
- Referral (users evangelize to other users)
22. Example Conversion Metricsâ¨
(note: *not* actuals⌠your mileage may vary)
Stage Conversion Status Conv.
%
Est. Value
(*not* cost)
Acquisition Visitors -> Site/Widget/Landing Page
(2+ pages, 10+ sec, 1+ clicks = donât abandon)
60% $.05
Activation âHappyâ 1st Visit; Usage/Signup
(clicks/time/pages, email/profile reg, feature usage)
15% $.25
Retention Users Come Back; Multiple Visits
(1-3x visits/mo; email/feed open rate / CTR)
5% $1
Referral Users Refer Others
(cust sat >=8; viral K factor > 1; )
1% $5
Revenue Users Pay / Generate $$$
(first txn, break-even, target profitability)
2% $50
24. Role: Product / Eng / Design
Q: What Features to Build? Why? When are you âDoneâ?
A: Easy-to-Find, Fun/Useful, Unique Features that
Increase Conversion (stop iterating when increase decelerates)
⢠Wireframes = Conversion Steps
⢠Measure, A/B Test, Iterate FAST (daily/weekly)
⢠Optimize for Conversion Improvement
â 80% on existing feature optimization
â 20% on new feature development
25. What is Product/Market Fit ?
PMF = F(Customer, Solution, Alternatives*)
⢠Product / Market Fit occurs when:
â Customers like your stuff better than other options
â Not static, Not optimal â just Local Max F(customers, solution, time)
â make sure youâre moving in optimal direction 2 local max
⢠Q: what competitive solutions are available?
â ⌠that your customers know about?
â how are you diff/same?
â in ways that people care about? (will pay for)
28. Discover Meaningâ¨
Keywords, Images, Call-to-Action
Top 10 - 100 words
⢠Your Brand / Products
⢠Customer Needs / Benefits
⢠Competitorâs Brand / Products
⢠Semantic Equivalents
⢠Misspellings
Relevant images
⢠People
⢠Products
⢠Problems
⢠Solutions
Call-to-Action
⢠Words
⢠Images
⢠Context
⢠Button/Link
⢠Emotion
Result
⢠Positive?
⢠Negative?
⢠Neutral (= Death)
⢠A/B test & Iterate
29. How To Tell if Design/UX is Good?
AUX = F(Customer, Design/UX, Metrics)
⢠If Users Use Your Product Then Itâs GOOD.
â Define Metrics, Measurability for Design / UX
â Focus on Psychology of User
â Relative to Competitive Alternatives (that your customers know about)
â Keep Testing 4 Awesomeness
⢠RAMP Mktg & $$$ AFTER itâs clear your MVP is:
â Functional = useful for >1 customers
â Awesome (enough, see above)
â Differentiated = better than other stuff availabile
35. Choose #WINNING Metrics
WIN = F(Customer, Usage, Dist, Revenue)
⢠after MVP functional use, several options:
â better Usage â Activation & Retention (AUX)
â more Users -- Distribution / Acquisition
â more Money --- Monetization
â more Profit â Margin
⢠understand ACQ$ vs REV$, optimize 4 short-term
â higher volume usually a priority
â costs may change as volume increases
36. Startup 2.0: â¨
âLean Investorâ Model
Method: Invest in startups using incremental
investment, iterative development. Start with
lots of small experiments, filter out failure, and
expand investment upon success.
⢠Incubator: $0-100K (âProduct Viabilityâ)
⢠Seed: $100K-$2M (âExpand Distributionâ)
⢠Venture: $1M-$10M (âMaximize Revenueâ)