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Metrics:
because everything
countsJusto Hidalgo
@justohidalgoTetuan Valley Startup School Fall
December 1st, , 2014
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Hi!
■ Co-founder, • Business Dev, Data Analytics
■ Data Integration and Management,
Product Strategy and Innovation
■ Ph.D. in Computer Science on Data
Integration and Web Automation
■ Ergo: Love Data
■ @justohidalgo
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A service to read and discover digital books that
works on any device
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@justohidalgo
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Metrics
Conclusions
Eat pizza
My goals today
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Metric
■ A metric is a number.
■ PERIOD
■ OK, a Count or a Ratio.
■ But a number.
■ PERIOD
7
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AARRR
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…
traffic social business
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Traffic Metrics
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How do people find your site?
Acquisition
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@justohidalgo
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@justohidalgo
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15 seconds in “La
1”
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MetricsNumber of visits Distributions (per browser, region,
…)
Number of page views
Bounce rate
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How sticky is your site?
AActivation
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Metrics
40000
45000
50000
55000
60000
65000
70000
75000
80000
85000
Time per page
Time on site
# Sign ins!!! Recency (time since user did
something meaningful)
(and churn as well!!!)
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Biggest Apple Reseller in Spain
1-year subscription to24s per iPad/Mac purchased
@justohidalgo
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Why do users come back?
AARetention
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32
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Number of unique/returning visitors
Visits over time
Average session time
Metrics. The standard ones…
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D/WAU: Daily/Weekly Active
Users
MAU: Monthly Active Users
Stickiness =
… engagement…
D/WAU
MAU
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# Active readers
# Books read per user
Pages read per active
reader per month
… but also domain-specific!!!
Pages read per
paid user per
month
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Social Metrics
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Do people talk about your site?
AARReferral
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Amplification rate:
• (#shares, #RTs, …)
K-Factor = AR *
conversion rate
• = 1: steady state
• > 1: growth
➤ 1.4 < x < 2.1 => hot &
viral!!!
• < 1: decline
Virality
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@justohidalgo
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Business Metrics
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Do you make money?
AARRRevenue
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24s or White Label
MOBILE CARRIERS
24symbols.com
D2C
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Lifetime Value =
100%
LTV
Sourc
e: http://b
log.k
issm
etr
ics.c
om
/how
-to-c
alc
ula
te-lifetim
e-v
alu
e/
Churn rateARPU *
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CAC Ratio=
Bessemer: average ratio of SaaS companies = 0.6
Customer Acquisition Costgross margin per customer
sales/marketing costs per customer
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Of course, LTV > CAC
But, moreover: LTV > 3x CAC
LTV vs CAC
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Conclusions
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@justohidalgo
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2. Have someone taking care of it
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DATA SCIENCE
SO EASY A CAVEMAN CAN DO IT
#ELS2014
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AND NOW…
BUSINESS-SAVVY!!!
@justohidalgo
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3. Only measure what you truly care about
@justohidalgo
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But again, choose right
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4. Don’t be data-
driven…
… be data-
informed…
#ELS2014
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… but VERY
DATA-
INFORMED!
#ELS2014
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5. Beware vanity metrics…
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… they may hide an awful truth
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Thanks for your time!
@justohidalgo
Justo Hidalgo
http://www.loscuentosdelabuelo.com
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CreditsOlivier Guin, from The Noun Project
Dima Yagnyuk, from The Noun Project
Redesign from Otl Aicher’s icon, from The Noun Project
Axsys, from The Noun Project
Monika Ciapala, from The Noun Project
Rob Schill, from The Noun Project
Martin Karachorov, from The Noun Project
Alexandre Mendes, from The Noun Project
All other icons from The Noun Project
Publishers trademarks, logos and brands belong to theirrespective companies.