The document discusses key principles of the Lean Startup methodology, focusing on the importance of data over gut feelings, and emphasizes the need for effective metrics. It outlines the concept of a 'One Metric That Matters' (OMTM) that directs a startup's focus and decision-making. Additionally, it highlights the significance of understanding business context and continuously evaluating metrics to drive improvement.

1. Jan König Lean Startup Meetup Karlsruhe
@einkoenig 22.04.2013

2. source: O’Reilly

3. book content
additional stuff
group discussion?

4. Book Parts
1 Stop Lying to Yourself
2 Finding the Right Metric for the Right Time
3 Lines in the Sand
4 Putting Lean Analytics to Work
won’t be covered tonight

5. Stop Lying
to Yourself1

6. Data? Lean Startup?
I just go with my gut feeling.
(too) many people

7. watch it here: http://www.ted.com/talks/tali_sharot_the_optimism_bias.html

8. Follow the Lean model, and it
becomes increasingly hard to lie,
especially to yourself.

9. Instincts are experiments.
Data is proof.

11. Do hosts with
professional
photography
get more business?
image by mark sebastian / flickr

12. Gut instinct
Professional photography helps Airbnb’s business
Concierge MVP
20 photographers in the field
Test results
Two to three times more bookings!

14. You are not building a product.
You are building a tool to learn
what product to build.

15. Finding the
Right Metric2 for right now!

16. Good Metrics?
image by kevin dooley / flickr

17. image by flopper/ flickr
comparative
image by wikia.com

18. understandable
image by Jeff Kubina / flickr

19. rate or ratio
image by Gabe Photos / flickr

20. changes the way you behave
image by will ockenden / flickr

21. image by 55Laney69 / flickr
The One Metric That Matters

22. 1 answers the most important question you have
2 forces you to draw a line in the sand
3 focuses the entire company
4 inspires a culture of experimentation

23. Should you really focus
on one metric?

24. Restaurant’s Effectiveness Metrics
Delivery Usage Customer Satisfaction Possible Interpretation
Crazy! Time to look at other metrics to
improve your business.
Source: Klubeck, “Metrics”, page 149f
Great food and a loyal, but very small
customer base. Maybe a bad location.
“The only game in town.” Or a product
customers need but don’t want.
OK, something is wrong here. You
know that.
with Triangulation

25. Restaurant’s Effectiveness Metrics
Customer Satisfaction Possible Interpretation
good
Source: Klubeck, “Metrics”, page 149f
good
bad
bad
without Triangulation
Delivery Usage Customer Satisfaction Possible Interpretation
focus on

26. ratio =
staff costs
gross revenues
image by Giorgio Montersino / flickr

27. What Business are you in?
E-Commerce SaaS Free Mobile App
Media Site
User-Generated
Content
Two-Sided
Marketplaces

28. What Stage are you at?
Empathy Stickiness Virality
Revenue Scale

29. What is your OMTM?

30. Lines in
the Sand3

31. One of the most challenging
things for a startup to do:
find a relevant number against
which to compare yourself.

32. Some interesting bottom lines
Growth
5% (revenue or active users)
Engaged Visitors
30% monthly users
10% daily users
Mailing List Effectiveness
20-30% open rate
5% click-throughs

33. image by Robert Scoble / flickr
Should you ask for
billing information upfront?

34. Trial users
Subscribers
Churn 1st perriod
End to end
2%
50%
up to 40%
0.6%
10%
15%
up to 20%
1.2%

35. Questions?