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
2. GET KEEP GROW THE FUNNEL
 WITH STEVE BLANK
3. ‘
7. GETTING - PHYSICAL
8. 1ST VIRAL LOOP
9. USE YOUR OWN LABELS
12. GET
14. KEEP
15. GROW
16. EXAMPLE
17. EXAMPLE
18. https://classroom.udacity.com/courses/ep245/ TAKE THE FULL COURSE
19. METRICS THAT MATTERS HOW AND WHAT TO MEASURE
 A FRAMEWORK
20. AARRR! METRICS FOR PIRATES
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
22. Dave McClure Founder 500 Startups
23. CUSTOMER LIFECYCLE / CONVERSION BEHAVIOUR
24. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)
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.
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
32. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)
33. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)
34. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)
35. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)
36. EXAMPLE CONVERSION METRICS (NOTE: *NOT* ACTUAL; YOUR MILEAGE MAY VARY)
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 $$$)
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
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
40. Firebase & AARRR Metrics @ Google I/O
41. Ash 
 Maurya Running Lean
42. READ THE BOOK
43. Alistair 
 Croll Lean Analytics @ Google Ventures
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
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
46. CAC CALCULATION
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
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
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.
50. COHORT ANALYSIS
 YOU NEED TO UNDERSTAND IT VIDEO:
 Cohort Analytics Explained VIDEO: 
 Google Labs Cohort Analysis Workshop
51. WHY COHORTS Bernd Leger, Localytics
52. WHY COHORTS
53. WHY COHORTS
54. SERIOUSLY YOU NEED TO UNDERSTAND IT COHORTANALYSIS.COM
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
56. CHURN FOR DUMMIES
57. CHURN
58. SaaS Metrics - 
 You need to track it SAAS METRICS
 
 The Ultimate SaaS Metrics Cheat Sheet Christoph Janz' Blog David Skok's Blog
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/
60. SAAS METRICS Hamid Shojaee, Founder/CEO PureChat
61. DAVID SKOK Mr. SaaS Metrics
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
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
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
65. MAT JOHNSON Partner @ 500 Startups
66. WHAT IS GROWTH HACKING
67. WAIT DO YOU HAVE PRODUCT- MARKET FIT
68. IF NO - FORGET IT
69. WHAT IS GROWTH HACKING Ryan Holiday
70. REPORT HOW MANY INTERVIEWS AND WHAT DID YOU LEARN WHAT HAPPENED 
 SINCE LAST WEEK
71. EXERCISE WHAT ARE YOUR SUCCESS METRICS? IT’S EXERCISE TIME
72. EXERCISE WHAT DOES YOUR USER JOURNEY LOOK LIKE? IT’S EXERCISE TIME
73. EXERCISE HOW ARE YOU GOING TO MEASURE IT IT’S EXERCISE TIME
74. HOMEWORK MEASURE & MOVE YOUR SUCCESS METRIC(S) IT’S EXERCISE TIME
75. HOMEWORK CONDUCT AT LEAST15 CUSTOMER INTERVIEWS IT’S EXERCISE TIME
76. GET OUT 
 OF THE BUILDING GET OUT TIME
77. WE HELP 
 YOUR COMPANY 
 GET READY 
 FOR TOMORROW TODAY PLUSANDERSEN.COM
78. MORE PLUSANDERSEN.COM • Education & Training • Programs & Processes • Innovation Metrics • Management Tools • Innovation Outposts • Human Assets SOME OF OUR CUSTOMERS:
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
80. +ANDERSEN 
 & ASSOCIATES INNOVATION & GROWTH THROUGH SCIENCE + ENTREPRENEURSHIP LEARN MORE
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