TAKE YOUR READINGS WHEREVER YOU GO
Metrics:
because everything
counts
Justo Hidalgo
@justohidalgo
Hi!
■ Co-founder,
• Worry about metrics
■ Data Integration and Management,
Product Strategy and Innovation
■ Ph.D. in Comp...
A service to read and discover digital books that
works on any device
@justohidalgo
Metrics
Some tools
Conclusions
My goals today
Qualitative measurement
• Competitive landscape, UX quality, …
Standard financial metrics
• Revenue, Balance, Burn rate, R...
Let’s talk about metrics and
startups!
Watch this…
500startups’ Dave McClure
… and this…
Carsonified’s Ryan Carson
… and read this!
AARRR
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(b...
Traffic Metrics
How do people find your site?
Acquisition
@justohidalgo
15 seconds in “La
1”
Videos work quite fine
Metrics
Number of visits Distributions (per browser, region,
…)
Number of page views
Bounce rate
How sticky is your site?
AActivation
Metrics
40000
45000
50000
55000
60000
65000
70000
75000
80000
85000
Time per page
Time on site
# Sign ins!!! Recency (time...
Biggest Apple
Reseller in Spain
1-year
subscription to
24s per iPad/Mac
purchased
@justohidalgo
Why do users come back?
AARetention
Number of unique/returning visitors
Visits over time
Average session time
Metrics. The standard ones…
D/WAU: Daily/Weekly Active
Users
MAU: Monthly Active Users
Stickiness =
… engagement…
D/WAU
MAU
# Active readers
# Books read per user
Pages read per active
reader per month
… but also domain-specific!!!
Pages read per...
Metrics, metrics, metrics
Not enough to have a nice GUI
Quick!!!
• What’s the number of active subscribers who read
more than 10% of a book per month?
• How many of our Colombian...
Metrics… and a human touch ;)
Users becoming digital librarians
Social Metrics
Do people talk about your site?
AARReferral
Visitor
Contributor
Distributor
Types of users
Curation the unbeatable experience of a
bookstore
Curation bookshelves
Every user, a librarian
Amplification rate:
• (#shares, #RTs, …)
K-Factor = AR *
conversion rate
• = 1: steady state
• > 1: growth
➤ 1.4 < x < 2.1...
% viral hosts
Contact rate per active host
Duration of each active host’s
infectious time period
Infection conversion
Sour...
@justohidalgo
Business Metrics
Do you make money?
AARRRevenue
Churn
Lifetime Value =
100%
LTV
Source:http://blog.kissmetrics.com/how-to-calculate-lifetime-value/Churn rate
ARPU *
CAC Ratio=
Bessemer: average ratio of SaaS companies = 0.6
Customer Acquisition Cost
gross margin per customer
sales/marke...
Of course, LTV > CAC
But, moreover: LTV > 3x CAC
LTV vs CAC
time/conversion rate
Price/page
Growth
Profit threshold
Consolidation
Freemium for Books. Price per page
@justohidalgo
Analytics
Heatmaps
Social media
Conclusions
@justohidalgo
2. Have someone taking care of it
3. Only measure what you truly care about
@justohidalgo
But again, choose right
4. Beware vanity metrics…
… they may hide an awful truth
Thanks for your time!
@justohidalgo
Justo Hidalgo
http://www.loscuentosdelabuelo.com
jhidalgo@24symbols.com
Credits
Olivier Guin, from The Noun Project
Dima Yagnyuk, from The Noun Project
Redesign from Otl Aicher’s icon, from The ...
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
Introduction to Metrics - Tetuan Valley/CEU course, March 2014
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Introduction to Metrics with examples from 24symbols. Given at Tetuan Valley / CEU course, March 2014
We use the AARRR metrics model from Dave McClure.

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Introduction to Metrics - Tetuan Valley/CEU course, March 2014

  1. 1. TAKE YOUR READINGS WHEREVER YOU GO Metrics: because everything counts Justo Hidalgo @justohidalgo
  2. 2. Hi! ■ Co-founder, • Worry about metrics ■ Data Integration and Management, Product Strategy and Innovation ■ Ph.D. in Computer Science on Data Integration and Web Automation ■ Ergo: Love Data  ■ @justohidalgo
  3. 3. A service to read and discover digital books that works on any device
  4. 4. @justohidalgo
  5. 5. Metrics Some tools Conclusions My goals today
  6. 6. Qualitative measurement • Competitive landscape, UX quality, … Standard financial metrics • Revenue, Balance, Burn rate, Runway, … All possible metrics in the world • As many as asses What I won’t talk about
  7. 7. Let’s talk about metrics and startups!
  8. 8. Watch this… 500startups’ Dave McClure
  9. 9. … and this… Carsonified’s Ryan Carson
  10. 10. … and read this!
  11. 11. AARRR Acquire Activate Retain Refer Get Revenue SEO SEM Campaigns Email Blogs … Landing Page Product Features … Content (blogs, articles, …) Emails Alerts … Campaigns Emails … Shopping cart Subscriptions Lead Gen … traffic social business
  12. 12. Traffic Metrics
  13. 13. How do people find your site? Acquisition
  14. 14. @justohidalgo
  15. 15. 15 seconds in “La 1”
  16. 16. Videos work quite fine
  17. 17. Metrics Number of visits Distributions (per browser, region, …) Number of page views Bounce rate
  18. 18. How sticky is your site? AActivation
  19. 19. Metrics 40000 45000 50000 55000 60000 65000 70000 75000 80000 85000 Time per page Time on site # Sign ins!!! Recency (time since user did something meaningful) (and churn as well!!!)
  20. 20. Biggest Apple Reseller in Spain 1-year subscription to 24s per iPad/Mac purchased @justohidalgo
  21. 21. Why do users come back? AARetention
  22. 22. Number of unique/returning visitors Visits over time Average session time Metrics. The standard ones…
  23. 23. D/WAU: Daily/Weekly Active Users MAU: Monthly Active Users Stickiness = … engagement… D/WAU MAU
  24. 24. # Active readers # Books read per user Pages read per active reader per month … but also domain-specific!!! Pages read per paid user per month
  25. 25. Metrics, metrics, metrics
  26. 26. Not enough to have a nice GUI
  27. 27. Quick!!! • What’s the number of active subscribers who read more than 10% of a book per month? • How many of our Colombian users switch devices while they read the same book? • What’s the most read category, segmented by gender? • What’s the number of readers per book page? Can you draw a graph? • We just learnt there’s a new metric investors are using… can we process it today? Not enough to have a nice GUI
  28. 28. Metrics… and a human touch ;)
  29. 29. Users becoming digital librarians
  30. 30. Social Metrics
  31. 31. Do people talk about your site? AARReferral
  32. 32. Visitor Contributor Distributor Types of users
  33. 33. Curation the unbeatable experience of a bookstore
  34. 34. Curation bookshelves Every user, a librarian
  35. 35. Amplification rate: • (#shares, #RTs, …) K-Factor = AR * conversion rate • = 1: steady state • > 1: growth ➤ 1.4 < x < 2.1 => hot & viral!!! • < 1: decline Virality
  36. 36. % viral hosts Contact rate per active host Duration of each active host’s infectious time period Infection conversion Source: http://framethink.wordpress.com/2008/01/15/the-four-viral-app- objectives-aka-social-network-application-virality-101/ The Four Viral App Objectives
  37. 37. @justohidalgo
  38. 38. Business Metrics
  39. 39. Do you make money? AARRRevenue
  40. 40. Churn
  41. 41. Lifetime Value = 100% LTV Source:http://blog.kissmetrics.com/how-to-calculate-lifetime-value/Churn rate ARPU *
  42. 42. CAC Ratio= Bessemer: average ratio of SaaS companies = 0.6 Customer Acquisition Cost gross margin per customer sales/marketing costs per customer
  43. 43. Of course, LTV > CAC But, moreover: LTV > 3x CAC LTV vs CAC
  44. 44. time/conversion rate Price/page Growth Profit threshold Consolidation Freemium for Books. Price per page @justohidalgo
  45. 45. Analytics Heatmaps Social media
  46. 46. Conclusions
  47. 47. @justohidalgo
  48. 48. 2. Have someone taking care of it
  49. 49. 3. Only measure what you truly care about @justohidalgo
  50. 50. But again, choose right
  51. 51. 4. Beware vanity metrics…
  52. 52. … they may hide an awful truth
  53. 53. Thanks for your time! @justohidalgo Justo Hidalgo http://www.loscuentosdelabuelo.com jhidalgo@24symbols.com
  54. 54. Credits Olivier Guin, from The Noun Project Dima Yagnyuk, from The Noun Project Redesign from Otl Aicher’s icon, from The Noun Project Axsys, from The Noun Project Monika Ciapala, from The Noun Project Rob Schill, from The Noun Project Martin Karachorov, from The Noun Project Alexandre Mendes, from The Noun Project All other icons from The Noun Project Publishers trademarks, logos and brands belong to their respective companies.
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