Download - Startup Metrics
Startup MetricsAvatech November 2014
@ghazalshi
The Goal of the Session
• Learn the stage of your startup• Pick a metric to change• Find correlation and test causality• Optimize for the causal factor
Exercise: 5 min
Write down the metrics that you are measuring
The core of the Lean is iteration
Ideas
Build
Product
Measure
Data
Learn
It is not about whetheryou can build it is aboutif anybody will care.
The core of the Lean is iteration
Ideas
Build
Product
Measure
Data
Learn
Everyone’s idea isthe best
Here is where everythingfalls apart
Everyone lovesthis part
Analytics can help
Analytics is the measurementof movement toward your goals.
Some Fundamentals
What is a good metric?
Understandable
• If you are busyexplaining thedata, youwon’t beacting upon it.
Comparable
• Comparison iscontext.
A ratio
• The only wayto measure ametric
Behaviorchanging
• What will youdo differentlybased onthese data?
The Simple Rule
Metrics help you know yourself
Customers thatbuy more than 1times in 90 days
Then you are inthis mode
Your customerswill buy from you You are just like Focus on
1-15% Acquisition Once 70% of the retailers Low user acquisitioncost, high checkout
15-30% Hybrid 2-2.5 per year 20% of the retailers Increasing returnrates, high market
share
>30% Loyalty >2.5 per year 10% of the retailers Loyalty, inventory
Tie the metric to a desired behavior
Beware of Vanity Metrics
Vanity Metrics to Watch Out ForHitsPage viewsVisitsUnique visitorsFollowers/friends/likesTime on pageEmails collectedNumber of downloads
Examples
• If a Facebook user reaches 7 friends in 10 days• If someone in Zynga comes back the day after signing up to play they
will become loyal users.• A twitter user who follows certain number of users and a certain
number of them follow him back• A linkedin member who get X connections in Y days
A leading, causal metric is asuperhero.
Metrics
Eric’s 3 engines of startup growth
Dave’s Pirate Metrics
Acquisition
Activation
Retention
Revenue
Referral
What Stage Are You At?
Exercise: 30 mins
• We have talked a lot about this stage!• Share your questions and insight you got.• Explain why?
Stickiness
Virality
Scale: Incremental Order Cost
6 Business Model Archetypes
Acquisition
Activation
Retention
Revenue
Revenue
Just One?
Oh Yeah! Remember you are astartup!
What is good enough?
E-commerce
• Conversion rate• Purchases per year• Average shopping cart size• Abandonment• CAC• Revenue per customer• Top key words driving traffic
2-sided Market
• Buyer and seller growth• Inventory growth• Search effectiveness• Conversion funnels• Ratings• Pricings
Mobile App
• Downloads• Launch rate• Percentage of active users• Percentage of users who pay• Time to first purchase• Rating click-through• Virality
SaaS
• Attention• Enrollment• Stickiness• Conversion• CAC• Revenue per customer• Virality• Upselling
UGC
• Number of engaged visitors• Content Creation• Engagement funnel changes• Value of created content• Content sharing
Media
• Audience and churn• Ad inventory• Ad rates• CTR• Content/advertising balance
Exercise: 1 hour
• Go back to your team• Based on your business model visualize the system that you are
working in• Pick 5 metrics important to you• Choose an OMTM
Growth Hacking
E-commerceMetrics
• All the images in this presentation are taken from flickr.com and leananalytics.
• The content where not specified is from Lean Analytics and DaveMcClure’s metrics.