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Lean Launchpad - 12 Weeks Version - Meetup 7 of 12

Lean Launchpad - 12 Weeks Version - Meetup 7 of 12

The slides for the 7th Lean Launchpad (LLP) meetup for the Ignition Accelerator Program from Digihub Düsseldorf, Q4 2017. The LLP is the world's premiere pre-accelerator and early-stage startup support program created by the father of the Lean Startup movement, Steve Blank, taught at Stanford, Berkeley and used in hundreds of other universities, F500 companies and startup programs around the world. Booking: you@plusandersen.com

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Vidar Andersen

December 08, 2017
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Transcript

  1. LEAN LAUNCHPAD THE 12W EARLY STAGE
 SUPPORT PROGRAM MEETUP 7

    OF 12 IGNITE DUS DECEMBER 7TH
  2. MEETUP 7

  3. • Offene Fragen seit letztem Meetup? • 5m Präsentationen von

    den Startups • 10m Feedback pro Team (auch im Spreadsheet) • Hausarbeit • QA zur vorherigen Hausarbeit
 “Resources, Activities & Costs”
 “Metrics That Matter” AGENDA - MEETUP 7
  4. PEER REVIEW

  5. 1. Your last concrete 5 todos and what you did

    or didn’t do 
 2. Your results: Number of interviews (and % pass/fail or metrics if applicable) 
 3. What you learn or change in the BMC and why you think so (show BMC here) 4. Your current biggest challenge(s) 
 5. The next 5 CONCRETE things you will have done until next week PEER REVIEW TIME THE LEAN LAUNCHPAD 
 5-SLIDE FORMAT
  6. HOMEWORK

  7. 1. Conduct MINIMUM 15 customer interviews, face to face 2.

    Watch “How to Think About PR - YC Startup School” (LINK) 3. Book a check-in slot for the coming week (doodle will be provided) 4. Update your 5-slide presentation according to your progress
 AND SEND THE PDF TO v@plusandersen.com
 ON TUE 12TH BEFORE 1700 HR NEXT MEETUPS TUE 12TH + TUE 19TH 1800HRS HOMEWORK MEETUP 6
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  27. METRICS THAT MATTER

  28. AARRR! METRICS FOR PIRATES

  29. CUSTOMER LIFECYCLE 5 STEPS TO SUCCESS • Acquisition: Users come

    to you from various channels • Activation: Users enjoy 1st visit; “Happy” user experience • Retention: Users come back, visit site multiple times • Referral: Users like product enough to refer others • Revenue: Users conduct some monetising behaviour
  30. https://www.youtube.com/watch?v=irjgfW0BIrw Dave McClure Founder 500 Startups

  31. CUSTOMER LIFECYCLE / CONVERSION BEHAVIOUR

  32. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)

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  38. TYPES OF METRICS & MEASUREMENT • Qualitative: Usability Testing /

    Session Monitoring
 - Watch what users do, figure out problems & solutions from small # of users • Quantitative: Traffic Analysis / User Engagement
 - Report what users do, track usage & conversion %s for all or empirical sample # • Comparative: A/B Multivariate Testing
 - Compare what users do in one scenario vs another, see which copy/graphics/UI are most effective • Competitive: Monitoring and Tracing Competitors
 Track competitor activity and compare against yours; if possible compare channels, keyword traffic, demographic targeting, user satisfaction, etc.
  39. QUANTITATIVE & 
 COMPARATIVE MEASUREMENT • Conversion Criteria:
 - Best-Performing

    (%) Channels / Campaigns / Copy
 - Largest-Volume (#) Channels / Campaigns / Copy
 - Lowest-Cost ($) Channels / Campaigns / Copy • Measurement Components:
 - Audience Segment (young women, regional metro, older singles)
 - Channel Source (social media, SEM, organic, PR, etc)
 - Campaign Time / Brand Promise (“Find a job”, “Learn to cook”)
 - Landing Page & CTA
 - Copy & Graphics
  40. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)

  41. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)

  42. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)

  43. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)

  44. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)

  45. MARKETING • Q: What channels do you market to?
 -

    Design & Test multiple marketing channels
 - Select & Focus on channels with:
 - High Volume
 - High Conversion
 - Low Cost • Measure *deeper* down the conversion funnel, not just to website / landing page • Segment & Select Channels & Customers by conversion @ deepest possible level (ideally $$$)
  46. PRODUCT • Q: How do you chose what to build?

    • Chose features for conversion improvement
 - 80% on existing feature optimisation
 - 20% on new feature development • Just guess - then A/B test - a LOT! • Measure conversion improvement • Rinse & Repeat
  47. FOUNDER / CEO • Q: What metrics do you chose

    to watch? • Hypothesise Customer Lifecycle & Refine
 - Chose 5-10 conversion steps
 - Less, not more, is better • BUT measure & iterate • Focus on conversion improvement • Delegate each metric to someone to OWN
  48. https://www.youtube.com/watch?v=BYwiwWQDhv0&t=945s Firebase & AARRR Metrics @ Google I/O

  49. https://www.youtube.com/watch?v=o0t2dBkalDk Ash 
 Maurya Running Lean

  50. READ THE BOOK

  51. https://www.youtube.com/watch?v=uIG1H_EQ6WQ Alistair 
 Croll Lean Analytics @ Google Ventures

  52. CAC VS LTV For each dollar you spend acquiring a

    customer, how many dollars does it leave behind in the whole lifespan you have them as a customer? CAC = Customer Acquisition Cost LTV = Customer Lifetime Value A CAC : LTV ratio of 1 : 3 or better = good
  53. CAC vs LTV - The Driving Factors • High Churn

    Rate • Low Customer 
 Satisfaction • Lack Of Stickiness • Recurring Revenue • Scalable Pricing • Cross-Sell / Up-Sell • Additions To Product
 Catalogue • Lead-Gen For 3Rd Party • Sales Force In The Field • Outbound Marketing • Unoptimised Campaign • Wrong Target Audience • Wrong Channel • No Network Effects • Network Effects • Inbound Marketing • Free Or Freemium • Open Source • Free Trial • Touchless Conversion • Direct Marketing • Channels • Strategic Partnerships CAC LTV
  54. https://www.youtube.com/watch?v=d_ITwKiruJE CAC CALCULATION

  55. GROWTH RATE “Startups = Growth” by Paul Graham of YC

    What is your growth week over week? More than 7% week over week is great
  56. ENGAGEMENT RATE “30 / 10 / 1” by Fred “AVC”

    Wilson What is the % of all your registered users that will use the service or app Monthly / Daily / Concurrent (At Any Given Time)? 30/10/1 or better is good
  57. DAU MAU The ratio of Daily Active Users to Monthly

    Active Users.
 For example, aDAU/MAU ratio of 50% would mean that the average user of your app is using it 15 out of 30 days that month. A simple metric to predict, with a high level of probability, the success of your product.
  58. COHORT ANALYSIS
 YOU NEED TO UNDERSTAND IT VIDEO:
 Cohort Analytics

    Explained VIDEO: 
 Google Labs Cohort Analysis Workshop
  59. https://www.youtube.com/watch?v=lCtS6xA79fI WHY COHORTS Bernd Leger, Localytics

  60. https://www.youtube.com/watch?v=lCtS6xA79fI WHY COHORTS

  61. https://www.youtube.com/watch?v=NyhVdGmnh0I WHY COHORTS

  62. SERIOUSLY YOU NEED TO UNDERSTAND IT COHORTANALYSIS.COM

  63. Your churn rate is the amount of customers or subscribers

    who cut ties with your service or company during a given time period. These customers have “churned.” READ http://churn-rate.com CHURN RATE
  64. https://www.youtube.com/watch?v=OWiLcCfDu8c CHURN FOR DUMMIES

  65. CHURN https://www.youtube.com/watch?v=iWhPPlrurSc

  66. SaaS Metrics - 
 You need to track it SAAS

    METRICS
 
 The Ultimate SaaS Metrics Cheat Sheet Christoph Janz' Blog David Skok's Blog
  67. SaaS Metrics - 
 You must understand it DEFINITIONS
 HTTP://WWW.FORENTREPRENEURS.COM/SAAS-METRICS-2-DEFINITIONS/

    SAAS METRICS 2.0
 HTTP://WWW.FORENTREPRENEURS.COM/SAAS-METRICS-2/
  68. https://www.youtube.com/watch?v=MpCJtMLKjgs SAAS METRICS Hamid Shojaee, Founder/CEO PureChat

  69. DAVID SKOK https://www.youtube.com/watch?v=MpCJtMLKjgs Mr. SaaS Metrics

  70. How to define your market size TAM - Total Available

    Market
 Theoretical total market size or customer 
 mass with problem today SAM - Serviceable Available Market
 Theoretical total market size or customer mass 
 that are able to use / purchase a solution like 
 yours right now SOM - Serviceable Obtainable Market 
 Your target market cap or customer base within 
 the next 2-3 years, your credible ambition TAM SAM SOM
  71. TAM SAM SOM - Rough Example Say you want to

    make a dating app for iOS Your theoretical TAM would be 1.6b world wide, the number of all adults in the world seeking a partner, the number of people with the actual need or problem Your theoretical SAM is the percentile of 1.6b adults who has an iPhone, not all iPhone users in the world, not all smartphone users in the world, e.g. 1.6b people out of 7b is 14% of all people, your SAM could then be 14% of the 500m iPhones sold worldwide = 70m Your SOM or Target Market could be the percentile of the 70m that you can realistically acquire and serve in the immediate next years. This varies individually because it is based on your personnel (team size, positioning, channels, partners, funds, locality and competences - current and planned) and the efficiency of your marketing (CAC vs LTV, current and feasible) of your individual product
  72. How to find market data Use Google, use Quora, use

    CB Insights, Crunchbase
 Seriously, JFGI: Just F*ing Google It Find facts in reports from Gartner, Forester, BCG, etc to lend some named sources to your numbers - You’ll be amazed by what you can find online TAM/SAM/SOM is an ART, not a SCIENCE - 
 Don’t make it too complicated. Do NOT make facts and figures up, do not use questionable sources, do not conflate markets - EVER
  73. MAT JOHNSON Partner @ 500 Startups https://www.youtube.com/watch?v=hU6p1AWBiw0

  74. https://classroom.udacity.com/courses/ep245/ WATCH THE LECTURES

  75. NOW GET THE HELL OUT OF THE BUILDING

  76. WE HELP 
 YOUR COMPANY 
 GET READY 
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    TOMORROW TODAY PLUSANDERSEN.COM
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    • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets
  78. PRE-ACCELERATION ACCELERATION GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP DEALFLOW

    LEARNING JOURNEY THE KEYNOTE KILL YOUR COMPANY INNOVATOR MASTERCLASS INNOVATOR BOOTCAMP LEAN LAUNCHPAD MVP AS 
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