Metrics for Web Companies    By Dave Fowler     CEO & Founder @ Chartio
OverviewCommon Web metrics  Social  SaaSCohort AnalysisChartio
Web Business Models Advertising   Social (Facebook, Pinterest)   Content (NY Times, Youtube)   Search Software as a Servic...
Social                Viral Coefficient           How many users each new user brings.                                k = v...
Social                             Viral Cycle Time              The time it takes a user to invite other users.25000"    ...
SaaSRR: Recurring Revenue         RR = Revenue/Δt      ARR (Annual) = $50k/yrMRR (Monthly) = $50k/yr / 12 months
SaaS     Churn Rate            aka. attrition How often you lose customers.    If you have 100 customers, and you lose 10 ...
SaaS  ASP: Average Selling PriceThe average price that you sell your product for.               ASP = ARR / # of Customers...
SaaS           ACS: Average Cost of ServiceYour average cost to support and maintain a customer.         ACS = Total Expen...
SaaS     CLTV: Customer Lifetime ValueAverage total expected revenue from a customer.          simple CLTV = ASP / churn r...
SaaS      CAC: Customer Acquisition Cost      The average cost to gain a new customer.          costs: adwords, sales, mar...
SaaS               Profit?Profit = (LTV - CAC - ASP) * # Customers             So you need          LTV > CAC + ASP
Split TestingOften referred to as A/B testing. examples: compare designs, pricing, layouts, etc.
Cohort AnalysisSplit testing by a date group    example cohorts: join date, age,
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Metrics for web companies

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Metrics for web companies

  1. 1. Metrics for Web Companies By Dave Fowler CEO & Founder @ Chartio
  2. 2. OverviewCommon Web metrics Social SaaSCohort AnalysisChartio
  3. 3. Web Business Models Advertising Social (Facebook, Pinterest) Content (NY Times, Youtube) Search Software as a Service: SaaS (Salesforce, Zendesk, Chartio) Market Places E-Comerce
  4. 4. Social Viral Coefficient How many users each new user brings. k = viral coefficient k = (# invites sent/user) * (# invites accepted/# invites sent) k = .8 k = 1.250" 300"45" 250"40"35" 200"30"25" 150"20" 100"15"10" 50" 5" 0" 0" 1" 2" 3" 4" 5" 6" 7" 8" 9" 1" 2" 3" 4" 5" 6" 7" 8" 9"
  5. 5. Social Viral Cycle Time The time it takes a user to invite other users.25000" 160" 140"20000" 120" 10"days" 10"days"15000" 100" 20"days" 20"days" 80" 40"days" 40"days"10000" 60" 80"days" 80"days" 100"days" 40" 100"days" 5000" 20" 0" 0" 1" 2" 3" 4" 5" 6" 7" 8" 9" 10" 11" 1" 2" 3" 4"
  6. 6. SaaSRR: Recurring Revenue RR = Revenue/Δt ARR (Annual) = $50k/yrMRR (Monthly) = $50k/yr / 12 months
  7. 7. SaaS Churn Rate aka. attrition How often you lose customers. If you have 100 customers, and you lose 10 of them in a yearyou have a 10% annual churn rate.
  8. 8. SaaS ASP: Average Selling PriceThe average price that you sell your product for. ASP = ARR / # of CustomersWhy its important:Determines your sales and distribution strategy. Can you afford a salesteam? Can you afford adwords?
  9. 9. SaaS ACS: Average Cost of ServiceYour average cost to support and maintain a customer. ACS = Total Expenses / # of Customers Trend: This should ideally trend downward as your number of customers goes up.
  10. 10. SaaS CLTV: Customer Lifetime ValueAverage total expected revenue from a customer. simple CLTV = ASP / churn rate Why its important: This also determines your go to market strategy. Can you afford a sales team or adwords?
  11. 11. SaaS CAC: Customer Acquisition Cost The average cost to gain a new customer. costs: adwords, sales, marketing, PRWhy its important:Acquiring a customer along with the ASP must cost less than the life timevalue the customer will bring in.
  12. 12. SaaS Profit?Profit = (LTV - CAC - ASP) * # Customers So you need LTV > CAC + ASP
  13. 13. Split TestingOften referred to as A/B testing. examples: compare designs, pricing, layouts, etc.
  14. 14. Cohort AnalysisSplit testing by a date group example cohorts: join date, age,
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