selecting the right metrics for your startup
TRANSCRIPT
METRICS, VALIDATIONBALAJI VISWANATHAN, JULY 7, 2016
ABOUT MYSELFWorked at Microsoft R&D Has two Masters degrees in CS & Business Administration Founded two startups Managed innovation at a pre-IPO stage company
WHAT WE ARE GOING TO TALK 1.Why startups in the US have high valuations? 2.The idea loop 3.The characteristics of metrics 4.Building the right metrics
WHY ARE STARTUPS SO CRAZY IN THE US?
WHY DO US STARTUPS HAVE SO HIGH EXITS
WHAT STARTUPS MEAN ELSEWHERE
Enterprises Startups
STARTUPS IN THE US
Enterprises Startups
FAMED ACQUISITIONSApplied Semantics —> Google [AdSense]
Forethought —> Microsoft [Powerpoint]
Instagram —> Facebook
IDEA LOOP
IDEA
DATA PRODUCT
Build
Measure
Learn & pivot
STARTUPS VS LARGE ENTERPRISES
Enterprises Startups
STARTUPS ARE EXCITING BECAUSE THEY CAN REACT FASTER THROUGH BETTER DATA COLLECTION.
METRICS & MEASUREMENTSMaking smart decisions with data
FOCUS ON THE GROWTH & NOT SIZE
Lorem
The need for metrics
The vanity metric
3 A’S OF METRICS
ACTIONABLE ACCESSIBLE AUDITABLE
CAN YOU GET THE DATA ON TIME?
CAN EVERYONE UNDERSTAND IT?
CAN YOU ACT ON THE METRIC?
IS IT AUDITABLE? DATA HAS TO BE REPRODUCIBLE & CREDIBLE.
TYPES OF METRICS
TOTAL SIGNUPSPERCENTAGE OF
NEW MEMBERS PER WEEK
PERCENTAGE OF USERS WHO SIGN
IN 3 TIMES A WEEK
PERCENTAGE OF USERS WHO
COMPLETED 1 PROJECT THIS
WEEK
Vanity Growth Usage Engagement
Good
MANAGING METRICS
QUALITATIVE QUANTITATIVE
COMPARATIVECOMPETITIVE
COMMON TYPES OF METRICS.FINANCIAL
1.Revenue
2.Gross profit
3.Gross margin
4.LTV
PRODUCT SALES
1.Cost of customer acquisition
2.Sales cycle [in months]
3.Conversion [awareness to sales]
1.Churn rate
2.Time between product releases
3.Month on Month growth in engaged users
4.Viral coefficient
5.Response time to tickets
METRICS CHECKLISTDoes it start with a percentage? Can everyone in organization understand it?Can you act on the numbers?
Does it reflect key user behavior?
Does it have a time element to it?