startup metrics for pirates - copied by dave mcclure

23

Upload: mattiasswenson

Post on 26-Aug-2014

3.146 views

Category:

Self Improvement


8 download

DESCRIPTION

This is a 5-step model for creating a metrics framework for your business & customers, and how to apply it to your product & marketing efforts. The "pirate" part comes from the 5 steps: Acquisition, Activation, Retention, Referral, & Revenue (AARRR!)The origninal presentation is here: http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

TRANSCRIPT

Page 1: Startup Metrics For Pirates - Copied by Dave McClure
Page 2: Startup Metrics For Pirates - Copied by Dave McClure
Page 3: Startup Metrics For Pirates - Copied by Dave McClure

”what!?”

Page 4: Startup Metrics For Pirates - Copied by Dave McClure
Page 5: Startup Metrics For Pirates - Copied by Dave McClure

Startup Metrics for Pirates: AARRR!!!

(Startup Metrics for Product Marketing & Product Management)

Dave McClure

Master of 500 Hats

blog: http://500hats.typepad.com/website: http://www.500hats.com/

Page 6: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle: 5 Steps to Success

• Acquisition: where users come from

• Activation: happy first experience

• Retention: users come back

• Referral: users tell other people

• Revenue: you make MONEY!

Page 7: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle / Conversion Behavior

Website.com

4. REFERRAL5. Revenue $$$

2. Activation

1. ACQUISITION

3. RETENTION

Page 8: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle / Conversion Behavior

Website.com

Marketing Channels:• largest-volume (#) • lowest-cost ($)• best-performing (%)

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

Email

PR Biz Dev

Campaigns, Contests

Direct, Tel, TV

Social Networks

Blogs

Domains

Page 9: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle / Conversion Behavior

Website.com

Activation Criteria:

• 10-30+ seconds

• 2-3+ page views

• 3-5+ clicks

• 1 key feature usage

Do LOTS of landing page tests & A/B tests - just make lots of dumb guesses & iterate QUICK

2. Activation

Homepage / Landing Page

Product Features

1. ACQUISITION

Page 10: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle / Conversion Behavior

Website.com

Automated emails are simple & easy retention feature

• lifecycle emails @ +3, +7, +30d

•event-based emails as they occur

2. Activation

1. ACQUISITION

3. RETENTION

Emails & Alerts

Blogs, Content

System Events & Time-based Features

Page 11: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle / Conversion Behavior

Website.com

Only encourage users to refer *after* they have “happy” user experience; avg score >= 8 out of 10

2. Activation

4. REFERRAL

Emails & widgets

Campaigns, Contests

1. ACQUISITION

3. RETENTION

Page 12: Startup Metrics For Pirates - Copied by Dave McClure

Customer Lifecycle / Conversion Behavior

Website.com

5. Revenue $$$

Biz DevAds, Lead Gen, Subscriptions, etc

2. Activation

This is the part *you* have to figure out… I don’t know jack about your business

4. REFERRAL

1. ACQUISITION

3. RETENTION

Page 13: Startup Metrics For Pirates - Copied by Dave McClure

AARRR!

Page 14: Startup Metrics For Pirates - Copied by Dave McClure

Example Conversion Metrics(note: *not* actuals; your mileage may vary…)

Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

5% $1

Activation Acct Signup(includes profile data)

2% $3

Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor

(3+ visits in first 30 days)2% $5

Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25

Page 15: Startup Metrics For Pirates - Copied by Dave McClure

Example Conversion Metrics(note: *not* actuals; your mileage may vary…)

Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

5% $1

Activation Acct Signup(includes profile data)

2% $3

Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor

(3+ visits in first 30 days)2% $5

Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25

Page 16: Startup Metrics For Pirates - Copied by Dave McClure

Example Conversion Metrics(note: *not* actuals; your mileage may vary…)

Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

5% $1

Activation Acct Signup(includes profile data)

2% $3

Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor

(3+ visits in first 30 days)2% $5

Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25

Page 17: Startup Metrics For Pirates - Copied by Dave McClure

Example Conversion Metrics(note: *not* actuals; your mileage may vary…)

Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

5% $1

Activation Acct Signup(includes profile data)

2% $3

Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor

(3+ visits in first 30 days)2% $5

Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25

Page 18: Startup Metrics For Pirates - Copied by Dave McClure

Example Conversion Metrics(note: *not* actuals; your mileage may vary…)

Category User Status Conv % Est. ValueAcquisition Visit Site

(or landing page, or external widget)100% $.01

Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks)

70% $.05

Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)

30% $.25

Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)

5% $1

Activation Acct Signup(includes profile data)

2% $3

Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor

(3+ visits in first 30 days)2% $5

Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25

Page 19: Startup Metrics For Pirates - Copied by Dave McClure

MarketingQ: What channels / who do you market to?

• Test Multiple Channels & Different Segments• Select & Focus on:

– High Volume– High Conversion– Low Cost

• Measure *deeper* down the conversion funnel, not just to website / landing page

Page 20: Startup Metrics For Pirates - Copied by Dave McClure

Product

Q: How do you choose what to build?

• Choose features for conversion improvement– 80% on existing feature optimization– 20% on new feature development

• Just guess, then A/B test… A LOT• Rinse & Repeat

Page 21: Startup Metrics For Pirates - Copied by Dave McClure

Founder/CEO

Q: What metrics do you choose to watch?

• Hypothesize Customer Lifecycle & Refine– Choose 5-10 conversion steps

• Measure & Iterate• Delegate each Metric to someone to OWN

Page 22: Startup Metrics For Pirates - Copied by Dave McClure

Make Metrics your religion

If it’s not measurable, it’s not actionable

Page 23: Startup Metrics For Pirates - Copied by Dave McClure

Rydell & Quick