chi pma metrics presentation
DESCRIPTION
TRANSCRIPT
![Page 1: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/1.jpg)
Customer Metrics
What works?
![Page 2: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/2.jpg)
Creating a Data Driven Product Organization
1. Establish a dashboard
2. Build a funnel
3. Manage retention
![Page 3: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/3.jpg)
1. Establish a dashboard
![Page 4: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/4.jpg)
Key Goals
Growth
Profitability Monthly Recurring Revenue
Key Goals CashMonths to recover Cost of Customer
Acquisition
![Page 5: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/5.jpg)
ProfitabilityCustomer Acquisition
Cost (CAC)
Lifetime Value (LTV)
Revenue
Expenses
COGS
Revenue per Employee
Expenses per Employee
Micro-Economics(per customer profitability)
Overall Profitability(Accounting)
Profitability per Employee
Profitability
Monthly Recurring Revenue
Services Revenue
![Page 6: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/6.jpg)
Key Metrics
< 3 XCustomer
Acquisition Cost (CAC)
Lifetime Value (LTV)
Months to recover CAC < 12 Months
![Page 7: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/7.jpg)
Customer Profitability
Customer Profitability
CAC
LTV
Average Monthly Revenue Per Customer
Average Customer Lifetime
Cost to Serve
Number of Deals closed
Total Cost of Sales and Marketing
Funnel Metrics
Marketing Program Costs
Level of Touch Required
Personnel Costs
% Churn Rate
![Page 8: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/8.jpg)
2. Build a funnel
![Page 9: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/9.jpg)
Dave McClure’s Funnel
![Page 10: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/10.jpg)
![Page 11: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/11.jpg)
David Cancel’s FunnelNote: this is too pretty for him
Long term users>1 year – 1%
Paying Users - 2%
Active Users – 4%
Log in to account – 8%
Sign up for trial – 10%
Website Visitors – 100%
![Page 12: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/12.jpg)
Drill Down on the Funnel
• Look at the metrics by customer segments (cohorts)
• Look at the metrics by campaign source• Look at the ROI
Number of Raw Leads
Conversion to paying Customers
Cost per Lead
ROI per Marketing Program
Marketing Program Costs
![Page 13: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/13.jpg)
Conversion
• “2% is the average conversion rate in the United States of America whether you're selling elephants or iPods.”
Avinash Kaushik - Analytics Evangelist, Google
• In general, software companies expect 1%-3% of customers using the free version of their software to upgrade.
TrialPay’s 2011 REPORT: BEST PRACTICES IN ACQUIRING SOFTWARE CUSTOMERS
![Page 14: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/14.jpg)
What is the #1 thing you can do to optimize the funnel?
3. Manage retention
![Page 15: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/15.jpg)
Retention
• Increasing retention (LTV) directly decreases CAC
• Moving from 1% to 2% retention doubles revenue and halves CAC
Renewals
Customer Satisfaction
Cohort Analysis
Churn Rate
Product Issues
Net Promoter Score
Customer Surveys
Product Usage Map
![Page 16: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/16.jpg)
Customer Satisfaction
• Best indicator of customer satisfaction is Net Promoter Score
• Ask 1 question – "How likely is it that you would recommend our company to a friend or colleague?" on a scale from 0-10
• 3 groups– Promoters (9 or 10)– Passives (7 or 8)– Detractors (0 – 6)
• NPS = % Promoters - % of Detractors
![Page 17: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/17.jpg)
Cohort AnalysisMonths after starting usage
Cohort
1 2 3 4 5 6 7
Jan 85% 75% 65% 62% 69% 58% 55%
Feb 87% 78% 70% 67% 63% 55%
Mar 88% 84% 79% 75% 71%
Apr 92% 89% 86% 82%
May 93% 90% 85%
Jun 94% 90%
July 96%
Churn stabilizes in
month 4
Improvement in first month
churn
![Page 18: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/18.jpg)
Managing Cohorts
• Determine the actions that repeat customers perform
• Create interventions to drive customers to perform the actions
• Create a flow (funnel) to see how the actions work together to change churn
• Measure the results• Experiment until you get the results you want
![Page 19: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/19.jpg)
Cohort Funnel
Sign In
Search for wines
Review wines
Share your wine list
Sign in email
Flow steps Interventions
Send user to search page after login
Review reminder banner ad
Share pop up
![Page 20: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/20.jpg)
Cohort Flows Flow steps
Cohort Sign In Search Review Share
Jan 85% 75% 65% 62%
Feb 87% 78% 70% 67%
Mar 88% 84% 79% 75%
May 93% 90% 85%
Jun 94% 90%
July 96%
![Page 21: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/21.jpg)
What tools can you use to do this?
• If you are Daddy Warbucks:– Coremetrix– Omniture
• If you are a cheapskate like me:– Google Analytics– Kissmetrics– Performable– MixPanel
![Page 22: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/22.jpg)
Issues With Analytics Tools
• You need to know what you are doing before you do it
• You need technical ability to set them up• Setting up the funnels is not intuitive and
takes a lot of time• Only the big guys have specific retention
functionality
![Page 24: Chi pma metrics presentation](https://reader035.vdocuments.us/reader035/viewer/2022081414/54c686524a795997128b4613/html5/thumbnails/24.jpg)
Resources and Props
• I stole heavily from:– For Entrepreneurs (much more info on metrics)
http://www.forentrepreneurs.com/saas-metrics/– David Cancel http://davidcancel.com/
• Other shout outs– Dave McClure http://500hats.typepad.com/– Brant Cooper http://market-by-numbers.com/
• Help us out and take the survey http://www.besticky.com/