ALE2012 - Pirate metrics AARRR

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Introduction to the Pirate Metrics – AARRR related to customer development and business model canvas in order to gain insights on how your customers behave and create an environment where you easily …

Introduction to the Pirate Metrics – AARRR related to customer development and business model canvas in order to gain insights on how your customers behave and create an environment where you easily can validate startup hypothesis avoiding the commonly used feel good metrics.

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  • Jogando.net/mu *20*

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  • Interesting concept. Very close to 'Business Model Generation'.

    Cheers Jurgen

    Pierre
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  • 1. There  is  no  way  back!  AARRR – PIRATE METRICS
  • 2. WHAT IS THE PROBLEM YOUARE TRYING TO SOLVE?
  • 3. WHAT IS YOUR MOSTIMPORTANT CUSTOMERSEGMENT?
  • 4. WHO IS YOUR BESTCUSTOMER?
  • 5. WHY IS THIS YOUR BESTCUSTOMER?
  • 6. HOW DO YOU (PLAN TO)MAKE YOUR MONEY?
  • 7. HAVE YOU COLLABORATEDWITH YOUR (POTENTIAL)CUSTOMERS?
  • 8. WHO TRIED THISBEFORE?
  • 9. WHAT IS YOUR MOSTUSED FEATURE?
  • 10. THERE IS NO WAY BACK!
  • 11. YOU’RE DOING TOO MUCH
  • 12. DON’T HANG ON TO THINGSTHAT YOU MIGHT BUILDSOMEDAY
  • 13. CREATE HYPER FOCUS
  • 14. EVERY  WEEK  KILL A FEATURE
  • 15. TAKE OUT A FEATURE ANDMONITOR THE REACTIONS
  • 16. Either  they  love  it  or  hate  it,  all  other  reac;ons  means  you’re  screwed  OPTIMIZE FORHAPPINESS
  • 17. THERE IS NO WAY BACK!
  • 18. Dave  McClures’  AARRR
  • 19. Create  different  storylines  for  different  combina;ons  NARRATIVE OF YOURSTRATEGY, PROGRESS
  • 20. Let’s  take  a  look  at  this  meta-­‐framework  EXAMPLES
  • 21. #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 referral are key.
  • 22. ACQUISITION VISITACQUISITION SIGN-UPACTIVATION CREATE PROFILEACTIVATION POST PICTURES COMMENTREFERRAL SHARE PICTURES INVITE FRIENDSREVENUE BUY COLAR
  • 23. #2 AGILESAMBAProject management tool for AgilestartupsMakes money through monthly subscriptions. Has a freetrial period.Key business driversConversion to paid users.
  • 24. ACQUISITION VISITACQUISITION SIGN-UPACTIVATION CREATE PROJECTREVENUE UPGRADES PAIDREVENUE CANCELS ACCOUNT
  • 25. Let’s  take  a  closer  look  at  this  meta-­‐framework  ACQUISITION
  • 26. ARE YOU FISHING IN THERIGHT POND?
  • 27. HOW DO YOU GET NEWCUSTOMERS?
  • 28. IS YOUR MESSAGEREACHING THE RIGHTPEOPLE?
  • 29. ARE YOU FOCUSSING ONTHE RIGHT PEOPLE?
  • 30. ACTIVATION
  • 31. ARE YOU USING THERIGHT BAIT?
  • 32. HOW DO YOU LANDPOTENTIAL CUSTOMERS?
  • 33. IS YOUR MESSAGE CLEAR?
  • 34. ARE YOU HELPING YOURCUSTOMERS?
  • 35. RETENTION
  • 36. DO YOU USE THE RIGHTMATERIAL?
  • 37. HOW DO YOU MAKECUSTOMERS STAY?
  • 38. DO YOU OFFER THERIGHT EXPERIENCE?
  • 39. DO YOU OFFER QUALITY?
  • 40. REFERRAL
  • 41. HOW DO YOUR FISHESLURE IN MORE FISHES?
  • 42. HOW IMPORTANT ISWORD OF MOUTH?
  • 43. HOW EASY IS IT FORCUSTOMERS TO SHARETHEIR EXPERIENCES?
  • 44. REVENUE
  • 45. SELLING YOUR FISH
  • 46. HOW DO YOU (PLAN TO)MAKE YOUR MONEY?
  • 47. ARE YOU CATCHING THERIGHT FISH?
  • 48. TIME TO STARTMEASURING AND LEARN
  • 49. THERE IS NO WAY BACK!
  • 50. Google  Analy;cs   TechCrunch  Metrics  that  make  you  feel  good  but  don’t  tell  anything…  VANITY METRICS
  • 51. •  150  000  Users   •  Numerous  superior  compe;tors   •  …  Let  us  examine  Facebook…  WHAT WOULD INDICATESUCCES?
  • 52. •  150  000  Users   •  Numerous  superior  compe;tors   •  …   •  75%  of  the  users  visit  the  site  1  or  mul;ple  ;mes  a  day   •  1  month  aUer  the  launch  in  a  student  campus  they  could  acquire  90%   of  the  student  body  Let  us  examine  Facebook…  WHAT WOULD INDICATESUCCES?
  • 53. Metrics that matter!•  Value  Hypothesis   à  How  do  we  add  more  value  to  our  customers  live?  •  Growth  Hypothesis   à  Through  what  engine  will  we  acquire  new  customers?  
  • 54. Metrics that matter!•  Value  Hypothesis   à  How  do  we  add  more  value  to  our  cusotmers  live?  •  Growth  Hypothesis   à  Through  what  engine  will  we  acquire  new  customers?   Metrics  are…   -­‐  Ac;onable   -­‐  Auditable   -­‐  Accessible  
  • 55. Fact:  New  users  are  more  engaged!  Group  users  in  month  or  week.  COHORT
  • 56. Let  different  groups  of  customers  validate  different  new  features  A-B TESTING
  • 57. Experiment,  validate  learning  &  change!  RATE OF VALIDATEDLEARNING
  • 58. Viral  Coeff  =  Invites  *  Conversion  Rate   Examples:  Facebook,  Hotmail…  Focus  on  Acquisi;on  &  Referral  –  Revenu  is  side  effect  VIRAL COEFFICIENT
  • 59. LTV  =  Cost  of  Acquiring  Customer  /  Earnings  from  that  customer   Examples:  Amazon,  Match.com…  Focus  on  Ac;va;on  &  Reten;on  –  Payment  is  central  LIFETIME VALUE (LTV)
  • 60. Recommended Software•  Ubounce  •  KISS  Metrics  •  Survey.io  •  Wufoo  •  LinkShiUr  •  …  
  • 61. WE DONT’T KNOWENOUGH!
  • 62. WE’RE DOING TO MUCH!
  • 63. Acquisi;on  Ac;va;on  Reten;on  Referral  Revenue  USE AARRR TO BUILD THENARRATIVE OF YOURSTRATEGY!
  • 64. Metrics  are…   -­‐  Ac;onable   -­‐  Auditable   -­‐  Accessible  FOCUS ON REAL METRICS
  • 65. GO OUT AND COLLABORATEWITH YOUR CUSTOMERS!
  • 66. THERE IS NO WAY BACK!