Talk at Lean Startup Meetup Berlin, February 28th

1. ACTIONABLE
METRICS
Are you making your product
better or worse?
LUKAS FITTL
@lfittl
spark59.com
Lean Startup is trademarked by Eric Ries and used with permission.
Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.

2. About Myself
Founded 2 tech startups,
worked with many others
& Spark59

4. “Am I making progress
into the right direction?”

5. $$$/users/etc
Time

6. Product/
Market Fit
1. Deliver Value 2. Accelerate Growth

7. Product/
Market Fit
1. Value 2. Growth

8. Now June 2013
$2000 / month ? $10000 / month

9. Cohort
Analysis

10. Cohort: Group of people that
share a common characteristic
over a period of time.

12. Track people,
not events.

13. Group users by sign-up date and
track their lifecycle.

16. Cohort Analysis for Retention

18. Cohort Analysis w Google Analytics
http://danhilltech.tumblr.com/post/12509218078/startups-hacking-a-cohort-analysis-with-google

19. Dave McClure’s AARRR
ACQUISITION How do users find you?
ACTIVATION Do users have a reat first experience?
RETENTION Do users come back?
REVENUE How do you make money?
REFERRAL Do users tell others?

20. Now June 2013
$2000 / month ? $10000 / month

21. Cohort of February 12th, 2013
12500 Unique Visitors / day
ACQ 5% sign up 625 signed up
ACT 8% activate 50 activated
RET 20% stay for 1 week 10 retained
REV 20% to paid at $35 2 paid
$70 / day
$2000 / month

22. 12500 Uniques 12500 Uniques
ACQ 5% sign up 625 10% sign up 1250
ACT 8% activate 50 20% activate 250
RET 20% stay for 1 week 10 20% stay for 1 week 50
REV 20% to paid at $35 2 20% to paid at $35 10
$70 / day $350 / day
$2000 / month $10000 / month
Now June 2013

23. 12500 Uniques 12500 Uniques
ACQ 5% sign up 625 10% sign up 1250
ACT 8% activate 50 20% activate 250
RET 20% stay for 1 week 10 20% stay for 1 week 50
REV 20% to paid at $35 2 20% to paid at $35 10
$70 / day $350 / day
$2000 / month $10000 / month
Now June 2013

24. Delivering Value

25. Customers need to
experience the value,
otherwise they will leave.

26. Value Metrics
How do users find you? ACQUISITION
Do users have a great first experience? ACTIVATION
Do users come back? RETENTION
How do you make money? REVENUE
Do users tell others? REFERRAL

27. Who delivers the actual value?
Network effect Critical Mass of People
vs
Marketplace The Right People
vs
SaaS Your Product

28. Value Metrics
How do users find you? ACQUISITION
Do users have a great first experience? ACTIVATION
Do users come back? RETENTION
How do you make money? REVENUE
Do users tell others? REFERRAL

29. Analyse Feature Usage
of both successful & unsuccessful customers

30. Analyse Time to Complete an Action
=> Highly useful for targeted email campaign

31. Week 1
Get email from Visit landing Request
Commit to
become paying
PERSONAS
Ash page Demo
customer
ACQUISITION Technical Founder
Provide billing
Week 1 Create Account info for 14-day Product Owner
trial
SIGNUP UPGRADE
Get welcome Schedule
Week 1 email with link weekly Review docs
to docs meetings
Establish Map user
Week 2 First meeting
success metrics actions
Send first
Send events to
Week 3 production
staging
event
ACTIVATION
Identify key
Baseline AARRR Define
Week 4 metric to
metrics experiments
improve
RETENTION

32. Usability Tests
http://www.slideshare.net/JohnnyForeigner/active-testing-sketches-leancamp-bcn

33. Value Metrics
How do users find you? ACQUISITION
Do users have a great first experience? ACTIVATION
Do users come back? RETENTION
How do you make money? REVENUE
Do users tell others? REFERRAL

34. Did Key Activity More than Once
“Created at least 3 cards on the Kan-ban board”
“Wrote at least 2 blog posts”
“Wrote at least 5 restaurant reviews”

35. Frequency
Daily?
Weekly?
Monthly?

36. 1-day
52%
7-day
31%
14-day
22%
30-day
14%

38. Accelerating Growth

39. Growth Metrics
How do users find you? ACQUISITION
Do users have a great first experience? ACTIVATION
Do users come back? RETENTION
How do you make money? REVENUE
Do users tell others? REFERRAL

40. The engine of growth is the
mechanism that startups use to
achieve sustainable growth.
-Eric Ries, The Lean Startup

41. Sticky
Organic Growth > Churn Rate

42. Paid
Lifetime Value > Acquisition Costs

43. Viral
Viral Coefficient > 1.0

44. Taking Action

45. Metrics are not a “Task”.
☑ Built a Metrics Dashboard
☐?
☐ Profit!

46. IDEAS
LEARN BUILD
DATA PRODUCT
MEASURE
Experiment

47. Hypotheses
instead of
Requirements

48. Requirement:
Users can create 3D avatars.

49. Hypothesis:
We believe that users will create a 3D
avatar and spend more time on other
users profiles.

50. Falsifiable Hypothesis:
50% of newly signed up users will create a 3D avatar,
Avg time spent on user profiles will go from 30s to 1min+

51. Validated Learning:
Define Hypothesis,
Build & Launch Experiment,
Learn from the Results

52. Test your
Value Hypothesis first.
Unless you need critical mass
to deliver value.

53. Experiment
Reports

54. Planning an Experiment
1. Context - Why is this relevant?
2. Quantify Your Goals
3. Set Scope & Timebox

55. EXPERIMENT REPORT Title: [TITLE] Author: [NAME] Created: [DATE]
Learning Goal Results
What are you trying to learn or achieve? Enter the data.
Falsifiable Hypothesis
Your list of statements on the expected outcome of the experiment.
Use this format:
[Specific Repeatable Action] will [Expected Measurable Outcome]
Validated Learning VALIDATED or INVALIDATED
Summarize your learning from the experiment.
Experiment Scope
How many and/or how long will the experiment last?
Minimum Build Plan
List the build plan step by step to get your measurement and experiment.
Next Action
Whatʼs the next experiment?
Lean Stack by Spark59.com

56. EXPERIMENT REPORT Title: [TITLE] Author: [NAME] Created: [DATE]
Learning Goal Results
What are you trying to learn or achieve? Enter the data.
Falsifiable Hypothesis
Your list of statements on the expected outcome of the experiment.
Use this format:
[Specific Repeatable Action] will [Expected Measurable Outcome]
Left Side Defines
Validated Learning
Summarize your learning from the experiment.
VALIDATED or INVALIDATED
The Experiment
Experiment Scope
How many and/or how long will the experiment last?
Minimum Build Plan
List the build plan step by step to get your measurement and experiment.
Next Action
Whatʼs the next experiment?
Lean Stack by Spark59.com

57. EXPERIMENT REPORT Title: [TITLE] Author: [NAME] Created: [DATE]
Learning Goal Results
What are you trying to learn or achieve? Enter the data.
Falsifiable Hypothesis
Your list of statements on the expected outcome of the experiment.
Use this format:
[Specific Repeatable Action] will [Expected Measurable Outcome]
Right Side Validated Learning VALIDATED or INVALIDATED
Analyses The
Summarize your learning from the experiment.
Experiment Scope
How many and/or how long will the experiment last?
Minimum Build Plan Results
List the build plan step by step to get your measurement and experiment.
Next Action
Whatʼs the next experiment?
Lean Stack by Spark59.com

58. ✘
Failure is good.
Validated Learning is our
Measurement of Progress.

59. Kan-ban Board
IDEAS Build Measure Learn
LEARN BUILD ✓
✘
DATA PRODUCT
MEASURE

60. Weekly Strategy Meeting

61. Review Experiments
Only In Weekly Meeting
Focus On Efficiency
In Daily Stand-ups

62. Review Experiment Results
Challenge the Interpretation
Kill / Restart overdue Experiments

63. Thanks!
Learn more:
j.mp/s59-metrics