You need to choose the right metrics to look at and have a good understanding of them in order to be able to optimize every single stage of your product development process. This is what this presentation is about.

1. Metrics, Metrics
Bogdan Rîpă, April 2015
bogdanripa@gmail.com

2. Structure
1. Me talking about metrics (30’)
2. You working on your metrics (15’)
3. Us discussing your metrics (30’)
4. General Q&A (remaining)

3. Why measure?

4. Facebook AU (MAU)

5. WhatsApp MAU

6. WhatsApp acquisition
WhatsApp
$19B / 469M MAU = $40.5/MAU
Facebook
$54.6/share * 2.23B shares / 1.228B MAU =
$99/MAU

7. More FB data (EOY 2014)
Valuation
$78.45/share * 2.23B shares / 1.393B MAU =
$125.6/MAU (up from $99 in Jan 2014)
Revenue
$12.466B / 1.393B MAU = $8.95 / MAU / year

8. Funnels

9. Funnels (EverPix)
Free Signups
Activated Accounts
Uploaded 1 photo
Paid subscribers
775
649 (84%)
422 (65%)
50 (11.7%)
6.5%

10. Funnels (online shop)
● Have seen the ad / forum post / Facebook post / etc
● Landed on your website
● Added at least 1 product to cart
● Have seen the checkout page
● Checked out / paid
● Returned for a 2nd purchase, 3rd, etc
o Shared their shopping experience
o Left a product review
o Recommended to a friend

11. Funnels (Pirate Metrics)
VIRALITY
FACTOR

12. Testing

13. Testing
● Cohorts
● A/B Testing
● Landing pages

14. MAU, Churn, Retention

15. What are these?
MAU = Monthly Active Users (DAU, YAU, etc)
Churn = % of customers lost over a period of time
Retention rate = 1 - Churn
Average LifeTime of Customer = 1 / Churn

16. A basic chart
Old customers
(retained)
New customers
(acquired)
Lost customers
(churn)
# of customers

17. What tools to use? - analytics
+ -
Google Analytics Free
Linked to adwards
Page-centric, Bad cohort
Designed for websites / advertisers,
not product ppl
MixPanel Easy Funnel creation
Custom reports (JS based)
Individual user tracking
Paid
Reporting
KissMetrics Feature-wise, looks promising Expensive / limited free trial
Excel Because you know how to use it Automation, of course

18. What tools to use? - landing
LaunchRock
DIY - based on existing templates
instapage.com
unbounce.com

19. How about CSAT?

20. Would you recommend?
On a scale of 0 to 10, how likely are you to
recommend our product to a friend or colleague?
NPS = (promoters - detractors) / total
#(9,10) - #(0,6)
#(0,10)
NPS =

21. NPS Examples

22. How about revenue?

23. Revenue jargon to watch
ARPU = Average Revenue Per User
Average LifeTime of Customer = 1 / Churn
MRR, ARR - for recurrent businesses
CAC = Customer acquisition cost
LTV = ARPU * 1/Churn - Cost Of Serving (COGS)

24. Structure
1. Me talking about metrics (30’)
2. You working on your metrics (15’)
3. Us discussing your metrics (30’)
4. General Q&A (remaining)

25. Now lets’ work on our funnels

26. Q&A