Startup Metrics (1 day workshop @ Digital Hub Aachen)

These were the slides for the plusandersen.com 1 day Startup Metrics workshop for the incubated startups at Digital Hub Aachen.
Bookings: you@plusandersen.com

Links to videos:

https://classroom.udacity.com/courses/ep245/lessons/48726356/concepts/482719510923

https://www.youtube.com/watch?time_continue=77&v=zbttFfL-1ZQ

https://www.youtube.com/watch?time_continue=3&v=PbclQ3G4naw

https://www.youtube.com/watch?v=Rcm77D_Gz2Q

https://www.youtube.com/watch?time_continue=150&v=AU17IC-9iKg

https://www.youtube.com/watch?time_continue=1&v=AsPmaRr0HHw

https://www.youtube.com/watch?time_continue=3&v=T3dtU_Itqdc

https://www.youtube.com/watch?time_continue=23&v=_xzvTcybDEw

https://www.youtube.com/watch?time_continue=1&v=BDHxxdTNKVY

https://www.youtube.com/watch?time_continue=1&v=mqJw1bjNKEQ

https://www.youtube.com/watch?time_continue=2&v=c5kY7xuxxPE

https://www.youtube.com/watch?time_continue=4&v=Aas-XcBir5c

https://www.youtube.com/watch?time_continue=12&v=q5y30Da7amE

https://www.youtube.com/watch?time_continue=5&v=SsxCoTTncEs

https://classroom.udacity.com/courses/ep245/

https://www.youtube.com/watch?v=irjgfW0BIrw

https://www.youtube.com/watch?v=BYwiwWQDhv0&t=945s

https://www.youtube.com/watch?v=o0t2dBkalDk

https://www.youtube.com/watch?v=uIG1H_EQ6WQ

https://www.youtube.com/watch?v=d_ITwKiruJE

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

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

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

https://www.youtube.com/watch?v=OWiLcCfDu8c

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

https://chartmogul.com/blog/2015/01/the-ultimate-saas-metrics-cheat-sheet/

http://christophjanz.blogspot.de/

www.forentrepreneurs.com/

www.forentrepreneurs.com/saas-metrics-2-definitions/

www.forentrepreneurs.com/saas-metrics-2/

https://www.youtube.com/watch?v=MpCJtMLKjgs

https://www.youtube.com/watch?v=MpCJtMLKjgs

https://www.youtube.com/watch?v=hU6p1AWBiw0

https://www.youtube.com/watch?v=nCP4hXgE-Nk

Transcript

1. STARTUP
   METRICS
   WHAT & HOW TO MEASURE
   DIGIHUB AACHEN
   SEPTEMBER 21. 2017
   

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2. GET
   KEEP
   GROW
   THE FUNNEL

   WITH STEVE BLANK
   

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3. ‘
   

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7. GETTING - PHYSICAL
   

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8. 1ST VIRAL LOOP
   

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9. USE YOUR OWN LABELS
   

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12. GET
    

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14. KEEP
    

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15. GROW
    

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16. EXAMPLE
    

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17. EXAMPLE
    

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18. https://classroom.udacity.com/courses/ep245/
    TAKE
    THE FULL
    COURSE
    

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19. METRICS
    THAT
    MATTERS
    HOW AND WHAT TO MEASURE

    A FRAMEWORK
    

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20. AARRR!
    METRICS FOR PIRATES
    

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21. 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
    

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22. Dave
    McClure
    Founder 500 Startups
    

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23. CUSTOMER
    LIFECYCLE /
    CONVERSION
    BEHAVIOUR
    

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

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30. 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.
    

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31. 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
    

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

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

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

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

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

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37. 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 $$$)
    

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38. 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
    

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39. 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
    

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40. Firebase & AARRR Metrics
    @ Google I/O
    

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41. Ash 

    Maurya
    Running Lean
    

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42. READ
    THE
    BOOK
    

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43. Alistair 

    Croll
    Lean Analytics
    @ Google Ventures
    

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44. 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
    

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45. 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
    

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46. CAC
    CALCULATION
    

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47. GROWTH RATE
    “Startups = Growth” by Paul Graham of YC
    What is your growth week over week?
    More than 7% week over week is great
    

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48. 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
    

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49. 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.
    

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50. COHORT ANALYSIS

    YOU NEED TO UNDERSTAND IT
    VIDEO:

    Cohort Analytics Explained
    VIDEO: 

    Google Labs Cohort Analysis Workshop
    

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51. WHY
    COHORTS
    Bernd Leger, Localytics
    

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52. WHY
    COHORTS
    

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53. WHY
    COHORTS
    

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54. SERIOUSLY
    YOU NEED TO UNDERSTAND IT
    COHORTANALYSIS.COM
    

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55. 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
    

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56. CHURN
    FOR DUMMIES
    

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57. CHURN
    

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58. SaaS Metrics - 

    You need to track it
    SAAS METRICS

    

    The Ultimate SaaS Metrics Cheat Sheet
    Christoph Janz' Blog
    David Skok's Blog
    

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59. 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/
    

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60. SAAS
    METRICS
    Hamid Shojaee, Founder/CEO PureChat
    

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61. DAVID
    SKOK
    Mr. SaaS Metrics
    

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62. 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
    

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63. 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
    

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64. 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
    

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65. MAT
    JOHNSON
    Partner @ 500 Startups
    

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66. WHAT IS
    GROWTH
    HACKING
    

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67. WAIT
    DO YOU HAVE
    PRODUCT-
    MARKET FIT
    

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68. IF NO -
    FORGET IT
    

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69. WHAT IS
    GROWTH
    HACKING
    Ryan Holiday
    

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70. REPORT
    HOW MANY
    INTERVIEWS
    AND WHAT DID
    YOU LEARN
    WHAT HAPPENED 

    SINCE LAST WEEK
    

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71. EXERCISE
    WHAT ARE YOUR
    SUCCESS METRICS?
    IT’S EXERCISE TIME
    

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72. EXERCISE
    WHAT DOES YOUR
    USER JOURNEY
    LOOK LIKE?
    IT’S EXERCISE TIME
    

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73. EXERCISE
    HOW ARE YOU
    GOING TO
    MEASURE IT
    IT’S EXERCISE TIME
    

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74. HOMEWORK
    MEASURE & MOVE
    YOUR SUCCESS
    METRIC(S)
    IT’S EXERCISE TIME
    

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75. HOMEWORK
    CONDUCT
    AT LEAST15
    CUSTOMER
    INTERVIEWS
    IT’S EXERCISE TIME
    

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76. GET OUT 

    OF THE
    BUILDING
    GET OUT TIME
    

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77. WE HELP 

    YOUR COMPANY 

    GET READY 

    FOR TOMORROW
    TODAY
    PLUSANDERSEN.COM
    

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78. MORE
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    • Education & Training
    • Programs & Processes
    • Innovation Metrics
    • Management Tools
    • Innovation Outposts
    • Human Assets
    SOME OF OUR CUSTOMERS:
    

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79. PRE-ACCELERATION ACCELERATION
    GENERATION EDUCATION SELECTION FINAL DECISION SCALING UP
    DEALFLOW
    LEARNING JOURNEY
    LEARNING KEYNOTE
    KILL YOUR COMPANY
    INNOVATOR
    MASTERCLASS
    INNOVATOR
    BOOTCAMP
    LEAN
    LAUNCHPAD
    MVP AS 

    A SERVICE
    INNOVATION
    OUTPOSTS
    DEMO
    DAY
    PITCHING
    MASTERCLASS
    EXPERTS AS
    A SERVICE
    MENTORS AS
    A SERVICE
    TRAIN THE TRAINER
    SPINNING
    OUT
    +ANDERSEN PROGRAMS
    AT ALL STAGES
    

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80. +ANDERSEN 

    & ASSOCIATES
    INNOVATION & GROWTH
    THROUGH
    SCIENCE + ENTREPRENEURSHIP
    LEARN MORE

    PLUSANDERSEN.COM
    

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