Lean Startup - Customer Development - Aarrr metrics

How to catch the fishAnd learn how to improve your fishing power

WHY I AM HERETo kick your ass...

WHY I AM HERETime to wake up...

WHAT DO YOU REALLYKNOW ABOUT YOURREALITY?

THERE IS NO WAY BACK!

WHAT IS THE PROBLEM YOUARE TRYING TO SOLVE?

WHAT IS YOUR MOSTIMPORTANT CUSTOMERSEGMENT?

WHO IS YOUR BESTCUSTOMER?

WHY IS THIS YOUR BESTCUSTOMER?

HOW DO YOU (PLAN TO)MAKE YOUR MONEY?

HAVE YOU COLLABORATEDWITH YOUR (POTENTIAL)CUSTOMERS?

WHO TRIED THISBEFORE?

WHAT IS YOUR MOSTUSED FEATURE?

YOU’RE DOING TOO MUCH

EVERY WEEKKILL A FEATURE

DON’T HANG ON TO THINGSTHAT YOU MIGHT BUILDSOMEDAY

CREATE HYPER FOCUS

TAKE OUT A FEATURE ANDMONITOR THE REACTIONS

Either they love it or hate it, all other reactions means you’re screwedOPTIMIZE FORHAPPINESS

Dave McClures’AARRR

Create different storylines for different combinationsNARRATIVE OF YOURPROCESS

Let’s take a look at this meta-frameworkEXAMPLES

#1 DOGGIECOLRSocial Network for Dog LoversMakes money through advertising and affiliate sales oflush dog collars.Key business driversAdvertising and affiliates need large traffic/page viewsso growth and retention are key.

ACQUISITION VISITACQUISITION SIGN-UPACTIVATION CREATE PROFILEACTIVATION POST PICTURES COMMENTREFERRAL SHARE PICTURES INVITE FRIENDSREVENUE BUY COLAR

#2 AGILESAMBAProject management tool for AgilestartupsMakes money through monthly subscriptions. Has a freetrial period.Key business driversConversion to paid users and cancellation rates.

ACQUISITION VISITACQUISITION SIGN-UPACTIVATION CREATE PROJECTREVENUE UPGRADES PAIDREVENUE CANCELS ACCOUNT

Let’s take a closer look at this meta-frameworkACQUISITION

ARE YOU FISHING IN THERIGHT POND?

HOW DO YOU GET NEWCUSTOMERS?

IS YOUR MESSAGEREACHING THE RIGHTPEOPLE?

ARE YOU FOCUSSING ONTHE RIGHT PEOPLE?

ACTIVATION

ARE YOU USING THERIGHT BAIT?

HOW DO YOU LANDPOTENTIAL CUSTOMERS?

IS YOUR MESSAGECLEAR?

ARE YOU HELPING YOURCUSTOMERS?

RETENTION

DO YOU USE THE RIGHTMATERIAL?

HOW DO YOU MAKECUSTOMERS STAY?

DO YOU OFFER THERIGHT EXPERIENCE?

DO YOU OFFER QUALITY?

REFERRAL

HOW DO YOUR FISHESLURE IN MORE FISHES?

HOW IMPORTANT ISWORD OF MOUTH?

HOW EASY IS IT FORCUSTOMERS TO SHARETHEIR EXPERIENCES?

REVENUE

SELLING YOUR FISH

HOW DO YOU (PLAN TO)MAKE YOUR MONEY?

ARE YOU CATCHING THERIGHT FISH?

TIME TO STARTMEASURING AND LEARN

Metrics that make you feel good but don’t tell anything…VANITY METRICS

150 000 UsersNumerous superior competitors…WHAT WOULD INDICATESUCCES?

Let us examine Facebook…WHAT WOULD INDICATESUCCES?

Metrics that matter!• Value Hypothesis  How do we add more value to our cusotmers live?• Growth Hypothesis  Through what engine will we acquire new customers?

Fact: New users are more engaged! Group users in month or week.COHORT

Let different groups of customers validate different new featuresA-B TESTING

Experiment, validate learning & change!RATE OF VALIDATEDLEARNING

Viral Coeff = Invites * Conversion Rate Examples: Facebook, Hotmail…Focus on Acquisition & Referral – Revenu is side effectVIRAL COEFFICIENT

LTV = Cost of Acquiring Customer / Earnings from that customer Examples: Amazon, Match.com…Focus on Activation & Retention – Payment is centralLIFETIME VALUE (LTV)

Recommended Software• Ubounce• KISS Metrics• Survey.io• Wufoo• LinkShiftr

WE DONT’T KNOWENOUGH!

WE’RE DOING TO MUCH!

AcquisitionActivationRetentionReferralRevenueWE CAN USE AARRR TOBUILD THE NARRATIVE OFYOUR STRATEGY!

WE SHOULD FOCUS ONREAL METRICS

JWE SHOULD GO OUT ANDCOLLABORATE WITH OURCUSTOMERS!

Thank youSlidedeck by: Erik Talboom – Jurgen De Smet – Maarten Volders

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Lean Startup - Customer Development - Aarrr metrics

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