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Actionable Metrics

Actionable Metrics

Talk at eClub in Prague, 28th March 2013

Lukas Fittl

March 28, 2013
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  1. Are you making your product better or worse? LUKAS FITTL

    @lfittl spark59.com ACTIONABLE METRICS Lean Startup is trademarked by Eric Ries and used with permission. Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA. Friday, 29 March 2013
  2. Dave McClure’s AARRR ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL How do

    users find you? Do users have a reat first experience? Do users come back? How do you make money? Do users tell others? Friday, 29 March 2013
  3. $2000 / month ACQ ACT 20% to paid at $35

    RET REV 20% stay for 1 week 8% activate 5% sign up 2 paid $70 / day 10 retained 50 activated 625 signed up 12500 unique visitors Each Day: Friday, 29 March 2013
  4. Cohort: Group of people that share a common characteristic over

    a period of time. Friday, 29 March 2013
  5. $2000 / month ACQ ACT 20% to paid at $35

    RET REV 20% stay for 1 week 8% activate 5% sign up 2 paid $70 / day 10 retained 50 activated 625 signed up 12500 Unique Visitors / day Cohort of February 12th, 2013 Friday, 29 March 2013
  6. $2000 / month Now ACQ ACT 20% to paid at

    $35 RET REV 20% stay for 1 week 8% activate 5% sign up $70 / day 12500 Uniques $10000 / month June 2013 20% to paid at $35 20% stay for 1 week 20% activate 10% sign up $350 / day 12500 Uniques 2 10 50 625 10 50 250 1250 Friday, 29 March 2013
  7. $2000 / month Now ACQ ACT 20% to paid at

    $35 RET REV 20% stay for 1 week 8% activate 5% sign up $70 / day 12500 Uniques $10000 / month June 2013 20% to paid at $35 20% stay for 1 week 20% activate 10% sign up $350 / day 12500 Uniques 2 10 50 625 10 50 250 1250 Friday, 29 March 2013
  8. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users

    find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Friday, 29 March 2013
  9. Network effect vs Marketplace vs SaaS Who delivers the actual

    value? Critical Mass of People The Right People Your Product Friday, 29 March 2013
  10. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users

    find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Friday, 29 March 2013
  11. Request Demo Commit to become paying customer Visit landing page

    Create Account Provide billing info for 14-day trial Get welcome email with link to docs Schedule weekly meetings Review docs Establish success metrics Map user actions Send first production event ACTIVATION SIGNUP ACQUISITION Baseline AARRR metrics Identify key metric to improve Define experiments First meeting UPGRADE RETENTION Send events to staging Day 1 Day 2 Day 3 Week 2 Week 3 Week 4 Customer Journey Maps Friday, 29 March 2013
  12. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users

    find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Friday, 29 March 2013
  13. Did Key Activity More than Once “Created at least 3

    cards on the Kan-ban board” “Wrote at least 2 blog posts” “Wrote at least 5 restaurant reviews” Friday, 29 March 2013
  14. Customer Happiness Index (CHI) Created Blog Post = 5 Points

    Shared Post on Twitter = 10 Points Visited Site = 0.1 Points Sum together per User in Ranked List & Reset Each Week Visualises your Power Users Friday, 29 March 2013
  15. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Growth Metrics How do users

    find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Friday, 29 March 2013
  16. The engine of growth is the mechanism that startups use

    to achieve sustainable growth. -Eric Ries, The Lean Startup Friday, 29 March 2013
  17. 3x Acquisition Cost < Lifetime Value Content Marketing vs Direct

    Sales vs Advertising Avg Length of Sales Cycle Monthly Churn Customer Happiness Index 7/14/30 day retention Avg Revenue / User Typical SaaS Company Friday, 29 March 2013
  18. Metrics are not a “Task”. ☑ Built a Metrics Dashboard

    ☐ Profit! ☐ ? Friday, 29 March 2013
  19. We believe that users will add a cover photo and

    spend more time on other profiles. Hypothesis: Friday, 29 March 2013
  20. 50% of newly signed up users will upload a cover

    photo, Avg time spent on user profiles will go from 30s to 1min+ Falsifiable Hypothesis: Friday, 29 March 2013
  21. 1. Context - Why is this relevant? 2. Quantify Your

    Goals 3. Set Scope & Timebox Planning an Experiment Friday, 29 March 2013
  22. Learning Goal EXPERIMENT REPORT Author: Title: Created: Experiment Scope Minimum

    Build Plan Lean Stack by Spark59.com Falsifiable Hypothesis Validated Learning Results Next Action What are you trying to learn or achieve? List the build plan step by step to get your measurement and experiment. How many and/or how long will the experiment last? [DATE] [NAME] [TITLE] Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Enter the data. Summarize your learning from the experiment. VALIDATED or INVALIDATED Whatʼs the next experiment? Friday, 29 March 2013
  23. Learning Goal EXPERIMENT REPORT Author: Title: Created: Experiment Scope Minimum

    Build Plan Lean Stack by Spark59.com Falsifiable Hypothesis Validated Learning Results Next Action What are you trying to learn or achieve? List the build plan step by step to get your measurement and experiment. How many and/or how long will the experiment last? [DATE] [NAME] [TITLE] Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Enter the data. Summarize your learning from the experiment. VALIDATED or INVALIDATED Whatʼs the next experiment? Left Side Defines The Experiment Friday, 29 March 2013
  24. Learning Goal EXPERIMENT REPORT Author: Title: Created: Experiment Scope Minimum

    Build Plan Lean Stack by Spark59.com Falsifiable Hypothesis Validated Learning Results Next Action What are you trying to learn or achieve? List the build plan step by step to get your measurement and experiment. How many and/or how long will the experiment last? [DATE] [NAME] [TITLE] Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Enter the data. Summarize your learning from the experiment. VALIDATED or INVALIDATED Whatʼs the next experiment? Right Side Analyses The Results Friday, 29 March 2013
  25. Give Context. Why is this relevant? Background What are you

    trying to learn or achieve? Friday, 29 March 2013
  26. Quantify Your Goals Falsifiable Hypothesis Your list of statements on

    the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Friday, 29 March 2013
  27. Set Scope & Timebox Experiment Scope How long will the

    experiment last? Minimum Build Plan List the build plan step by step to get your measurement and experiment. Friday, 29 March 2013
  28. 1. Context - Why is this relevant? 2. Quantify Your

    Goals 3. Set Scope & Timebox Planning an Experiment Friday, 29 March 2013
  29. Learning Goal EXPERIMENT REPORT Author: Title: Created: Experiment Scope Minimum

    Build Plan Lean Stack by Spark59.com Falsifiable Hypothesis Validated Learning Results Next Action What are you trying to learn or achieve? List the build plan step by step to get your measurement and experiment. How many and/or how long will the experiment last? [DATE] [NAME] [TITLE] Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Enter the data. Summarize your learning from the experiment. VALIDATED or INVALIDATED Whatʼs the next experiment? Right Side Analyses The Results Friday, 29 March 2013
  30. What will you do next based on your learning? Next

    Action Whatʼs the next experiment? Friday, 29 March 2013
  31. IDEAS PRODUCT DATA MEASURE BUILD LEARN Build Measure Learn ✓

    ✘ Kan-ban Board Friday, 29 March 2013
  32. Build Measure Learn ✓ ✘ Experiment Scope Experiment Scope How

    long will the experiment last? Friday, 29 March 2013
  33. Interviews/Prototypes: 1-2 Weeks Testing your MVP: 1 Month A/B Tests:

    2-3 Months Recommended Timeboxes: Friday, 29 March 2013
  34. Observe & Explain To The Group Ideate Alone Discuss In

    the Group Everyone writes down their idea of an Experiment! Friday, 29 March 2013