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Pirate Metrics & Growth Hacks
To Improve Your Profit
INTRODUCTION
Speakers

Anna Ruete	

Entrepreneurship Program Manager –
La Salle Technova Barcelona	

	

aruete@technovabar...
INTRODUCTION
Speakers

Pol Valls Soler @polvallssoler	

Key Account Manager at La Salle Technova	

	

Creator of:	

iOS ap...
INTRODUCTION
Speakers

Juan Pérez Rodríguez	

Director – La Salle Technova Barcelona 	

	

10 years working with entrepren...
INTRODUCTION
Speakers
EXERCISE 1
Metrics

Which one of these two companies is the best for you?
Company A

Company B

It is a social network for...
CONTEXT

Before 2000 – After 2008

Before 2000

After 2008

Sun Servers!
Oracle DB!
Exodus Hosting!
12-24mo dev cycle!
6-1...
AARRR

Pirate Metrics for startup s and mAAARRketing for startups

ACQUISITION	

ACTIVATION	

RETENTION	

REFERRAL	

PROFI...
AARRR

Pirate Metrics for startup s and mAAARRketing for startups

ACQUISITION	

	

Users come to the site; you have their...
AARRR

Pirate Metrics for startup s and mAAARRketing for startups

ACTIVATION	

	

User performs some key activity that
in...
AARRR

Pirate Metrics for startup s and mAAARRketing for startups

RETENTION	

	

User continues to do that key activity
i...
AARRR

Pirate Metrics for startup s and mAAARRketing for startups

REFERRAL	

	

User gets other users to join 	

	

BLOG ...
AARRR

Pirate Metrics for startup s and mAAARRketing for startups

REVENUE	

	

User pays you	

	

BLOG EXAMPLE: user buys...
AARRR FUNNEL

Customer Lifecycle / Conversion Behavior
AARRR FUNNEL

Customer Lifecycle / Conversion Behavior
AARRR

Conversion Metrics Example
Category

User Status

Conv %

Est. Value

Acquisition

Visit Site
(or landing page, or ...
AARRR FUNNEL

Customer Lifecycle / Conversion Behavior
AARRR
CAC & LTV

CAC: Costumer Adquisition Cost	


LTV: Costumer LifeTime Value
EXERCISE 1
Metrics

Which one of these two companies is the best for you?

Company A

Company B

CAC=600.000€/400.000users...
AARRR
CAC & LTV
KEY METRICS TO TRACK…
ACQUISITION
Key Metrics To Track:!
!

!

•  Volume(#) !
•  Cost ($)!
•  Conversion (%)!
ACQUISITION
ACQUISITION
Acquisition tips (for the top 10 - 100 words)!
•  Your brand / Products!
•  Customer needs / Benefits!
•  Compe...
ACQUISITION
Extra tip: How to get your first 100 users!
1) What existing solution do you believe your product is better tha...
ACTIVATION
Key metrics to track:!
•  Pages per visit (2-3+ page views)!
•  Time on site (10-30+ seconds)!
•  Conversions (...
RETENTION
Key metrics to track:!
•  Source (email, RSS, affiliates…)!
•  Volume (Low spam rating)!
•  Conversions (20% open...
RETENTION
Retention Tips:!
•  Email is simple and it works!
•  But make Unsubscribe easy!
•  80% subject line / 20% body t...
REFERRAL
Key metrics to track:!

Viral Growth Factor = X * Y * Z!
!
!X = % of users who invite other people!
!Y = average ...
REFERRAL
REVENUE
Key metrics to track:!
•  Conversion to revenue (%)!
•  Volume ($$$)!
Revenue Tips:!
•  Don’t just rely on AdSense...
REVENUE
How do we improve
the funnel?
Growth Hacking

Less Budget, More Creativity, More Automation -> Maximize Output
As simple as…
Groupon ACQUISITION!
Different landing pages according to traffic source!
(Search Engines for SEO –> Footer vs Direct !
Tra...
!

Groupon ACTIVATION & RETENTION!
!

Groupon RETENTION!
Groupon REFERRAL!
! Sharing is in Groupon’s DNA
Linkedin ACTIVATION!
!

Gamification example:
!

Linkedin RETENTION & REFERRAL!
!

Linkedin REVENUE!
Linkedin ACQUISITION & REFERRAL!
! (NOT THE BEST THING TO DO… people can hate you)	

From Linkedin’s People You May Know p...
Dropbox ACQUISTION!
!

Signup driven homepage:
Dropbox REFERRAL!
!

Sharing simplicity and availability on Multiple Devices & Platforms:
!

Dropbox REFERRAL & REVENUE!
Get more space
!

Dropbox ACQUISTION & REFERRAL!
Dropbox Great Space Race!
Dropbox REFERRAL & REVENUE!
!
Dropbox growth hack in numbers…

1.  September 2008: 100,000 registered users!
2.  January 2...
It doesn’t need to be online (initially)!
It doesn’t need to be online (initially)!
It doesn’t need to be online (initially)!
ACQUISITION: SEO hacks!
ACQUISITION!
ACQUISITION & REFERRAL!

PS: I Love You. Get Your
Free Email at Hotmail
ACQUISITION & REFERRAL!
ACQUISITION & REFERRAL!
ACQUISTION,
ACTIVATION,
RETENTION
&
REFERRAL!
ACQUISTION,
ACTIVATION
&
RETENTION!
ACQUISITION, REFERRAL & REVENUE!
Extra tip: Reverse Engineered App Store’s ranking algorithm
(approximation)!

AppStore Ra...
ACQUISITION & PROFIT!
REFERRAL!
REFERRAL!
REFERRAL!
REVENUE & PROFIT!
REVENUE & PROFIT!
REVENUE & PROFIT!
REVENUE & PROFIT!

Unlock all books is the clear top revenue generator.
REVENUE & PROFIT!
The $144,146,165 Button	


When cabs were cash only, the average tip was roughly 10%. After the
	

intro...
When
Growth
Hacking Goes
Fail Hacking
Path
Facebook blocked Path’s “Find Friends” access following spam controversy
Path
Path texts your entire phonebook
Glide & Tinder
Same…
Rap Genius: No SEO Genius
Rap Genius: No SEO Genius

Rap Genius fell from around 700,000 uniques a day to around 100,000.!
Facebook Fraud
Facebook Fraud
Tools for metrics analysis

…
aruete@technovabarcelona.org
@LaSalleTechnova
https://www.facebook.com/LaSalleTechnova

http://blogs.salle.url.edu/emprend...
Speakers
Anna Ruete	

Entrepreneurship Program Manager –
La Salle Technova Barcelona	

	

aruete@technovabarcelona.org	

	...
Speakers
Pol Valls Soler @polvallssoler	

Key Account Manager at La Salle Technova	

	

Creator of:	

iOS app for discover...
Speakers
Juan Pérez Rodríguez	

Director – La Salle Technova Barcelona 	

	

10 years working with entrepreneurs and
inves...
Pirate metrics and growth hacks to improve your profit
Pirate metrics and growth hacks to improve your profit
Pirate metrics and growth hacks to improve your profit
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Pirate metrics and growth hacks to improve your profit

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Discover the pirate metrics framework, the key metrics to track to be profitable and growth hacks from other companies.

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Transcript of "Pirate metrics and growth hacks to improve your profit"

  1. 1. Pirate Metrics & Growth Hacks To Improve Your Profit
  2. 2. INTRODUCTION Speakers Anna Ruete Entrepreneurship Program Manager – La Salle Technova Barcelona aruete@technovabarcelona.org
  3. 3. INTRODUCTION Speakers Pol Valls Soler @polvallssoler Key Account Manager at La Salle Technova Creator of: iOS app for discovering people nearby: joinerapp.com Reddit for spanglish geeks: zumogeek.com pvalls@technovabarcelona.org slideshare.net/polvallssoler
  4. 4. INTRODUCTION Speakers Juan Pérez Rodríguez Director – La Salle Technova Barcelona 10 years working with entrepreneurs and investors juanp@technovabarcelona.org
  5. 5. INTRODUCTION Speakers
  6. 6. EXERCISE 1 Metrics Which one of these two companies is the best for you? Company A Company B It is a social network for runners. They launched the platform in 2011. Closed 2013 with 2 Millions of users and 1.5 Millions of Euros of Net Profit. It is a social network for pregnant. They are in the market since 2012. Closed 2013 with a community of 95.000 users and a Net Profit of 0.5 Millions of Euros. They expect the following KPI for 2014: For 2014: Cost marketing: New users: 600.000 € 400.000 Cost marketing: 100.000€ New users: 60.000 # Visits / day: Conversion Rate: Average time: 374.000 5% 00:03:48 # Visits / day 42.000 Conversion Rate 5% Average time: 00:01:27
  7. 7. CONTEXT Before 2000 – After 2008 Before 2000 After 2008 Sun Servers! Oracle DB! Exodus Hosting! 12-24mo dev cycle! 6-18mo sales cycle! <100M people online! $1-2M seed round! $3-5M Series A! Sand Hill Road crawl! ! Big, Fat, Dinosaur Startup! AWS, Google, PayPal, FB, TW! Cloud + Open Source SW! Lean Startup / Startup Wknd! 3-90d dev cycle! SaaS / online sales! >3B people online! <$100K incub + <$1M seed! $1-3M Series A! Angel List global visibility! ! Lean, Little, Cockroach Startup! Source:500startups!
  8. 8. AARRR Pirate Metrics for startup s and mAAARRketing for startups ACQUISITION ACTIVATION RETENTION REFERRAL PROFIT REVENUE
  9. 9. AARRR Pirate Metrics for startup s and mAAARRketing for startups ACQUISITION Users come to the site; you have their attention BLOG EXAMPLE: users come to the site and stay for at least 2 minutes ! SaaS EXAMPLE (pdf to html conversion service): user signs up for the service
  10. 10. AARRR Pirate Metrics for startup s and mAAARRketing for startups ACTIVATION User performs some key activity that indicates a good first visit BLOG EXAMPLE: user signs up for RSS/newsletter ! SaaS EXAMPLE (pdf to html conversion service): user successfully makes a document
  11. 11. AARRR Pirate Metrics for startup s and mAAARRketing for startups RETENTION User continues to do that key activity indicating they like your product BLOG EXAMPLE: user reads at least one post a week or opens the newsletter ! SaaS EXAMPLE (pdf to html conversion service): user continues to make documents. As long as they're successfully making documents they will continue to use the service. 

  12. 12. AARRR Pirate Metrics for startup s and mAAARRketing for startups REFERRAL User gets other users to join BLOG EXAMPLE: user promotes your blogs contests and drives traffic ! SaaS EXAMPLE (pdf to html conversion service): Users send other users to our web, possibly with a coupon code
  13. 13. AARRR Pirate Metrics for startup s and mAAARRketing for startups REVENUE User pays you BLOG EXAMPLE: user buys your ebook SaaS EXAMPLE (pdf to html conversion service): yay! money! !
  14. 14. AARRR FUNNEL Customer Lifecycle / Conversion Behavior
  15. 15. AARRR FUNNEL Customer Lifecycle / Conversion Behavior
  16. 16. AARRR Conversion Metrics Example Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
  17. 17. AARRR FUNNEL Customer Lifecycle / Conversion Behavior
  18. 18. AARRR CAC & LTV CAC: Costumer Adquisition Cost LTV: Costumer LifeTime Value
  19. 19. EXERCISE 1 Metrics Which one of these two companies is the best for you? Company A Company B CAC=600.000€/400.000users= 1.5€ CAC=100.000€/60.000users= 1,66€ LTV= 1.500.000€/2.000.000users= 0,75€ LTV=500.000€/95.000users= 5,26€ LTV/CAC= 0,75 / 1,5 = 0,5 LTV/CAC = 5,26 / 1,66 = 3,16
  20. 20. AARRR CAC & LTV
  21. 21. KEY METRICS TO TRACK…
  22. 22. ACQUISITION Key Metrics To Track:! ! ! •  Volume(#) ! •  Cost ($)! •  Conversion (%)!
  23. 23. ACQUISITION
  24. 24. ACQUISITION Acquisition tips (for the top 10 - 100 words)! •  Your brand / Products! •  Customer needs / Benefits! •  Competitor’s brand / Products (Steal traffic)! •  Semantic equivalents! ! •  Misspellings !
  25. 25. ACQUISITION Extra tip: How to get your first 100 users! 1) What existing solution do you believe your product is better than? 2) Where can you find a critical mass of people who use the existing solution? 3) Go there. Talk to them. Show them your product. ! Extra tip: Reverse Engineered App Store’s ranking algorithm (approximation)! AppStore Ranking = H + D + R + E + S H = # of installs weighted for the past few hours D = # of installs weighted for the past few days R = Reviews (star rating + number of reviews) E = Engagement (# of times app opened etc.) S = Sales ($) ! !
  26. 26. ACTIVATION Key metrics to track:! •  Pages per visit (2-3+ page views)! •  Time on site (10-30+ seconds)! •  Conversions (1 key feature usage)! •  Clicks (3-5+ clicks)! •  Bounce rate (low)! Activation Tips:! •  Less is more! •  Focus on UX / Usability! ! •  Provide incentives & call to actions!! •  Perform A/B tests and iterate fast!
  27. 27. RETENTION Key metrics to track:! •  Source (email, RSS, affiliates…)! •  Volume (Low spam rating)! •  Conversions (20% open rate / CTR)! •  Visitor Loyalty (1–3+ visits per month)! •  Session Length! •  Long customer life cycle / Low decay! •  Identify fanatics and cheerleaders! ! !
  28. 28. RETENTION Retention Tips:! •  Email is simple and it works! •  But make Unsubscribe easy! •  80% subject line / 20% body text! •  Actually… 99% subject line / 1% body text! •  Status / “best of” weekly/monthly emails! •  “Something happened” emails! •  Lifecycle emails @ +3, +7, +30 days ! •  RSS / News feeds! •  Widgets / Embeds! •  Gamification! •  Fanatics = Virality + affiliate channels (like bloggers)!
  29. 29. REFERRAL Key metrics to track:! Viral Growth Factor = X * Y * Z! ! !X = % of users who invite other people! !Y = average # of people that they invited! !Z = % of users who accepted an invitation! A viral growth factor > 1 means an exponential organic user acquisition.! Referral Tips:! •  Personal send to friend (Email / IM)! •  Social Media! •  Widgets / Embeds! •  Affiliates!
  30. 30. REFERRAL
  31. 31. REVENUE Key metrics to track:! •  Conversion to revenue (%)! •  Volume ($$$)! Revenue Tips:! •  Don’t just rely on AdSense, iAd…! •  Offer something free (at least when starting out)! •  Subscription / Recurring transactions! •  Qualify your customers / Traffic for lead generation.! •  Sell somethig (physical or virtual)!
  32. 32. REVENUE
  33. 33. How do we improve the funnel?
  34. 34. Growth Hacking Less Budget, More Creativity, More Automation -> Maximize Output
  35. 35. As simple as…
  36. 36. Groupon ACQUISITION! Different landing pages according to traffic source! (Search Engines for SEO –> Footer vs Direct ! Traffic -> No footer)!
  37. 37. ! Groupon ACTIVATION & RETENTION!
  38. 38. ! Groupon RETENTION!
  39. 39. Groupon REFERRAL! ! Sharing is in Groupon’s DNA
  40. 40. Linkedin ACTIVATION! ! Gamification example:
  41. 41. ! Linkedin RETENTION & REFERRAL!
  42. 42. ! Linkedin REVENUE!
  43. 43. Linkedin ACQUISITION & REFERRAL! ! (NOT THE BEST THING TO DO… people can hate you) From Linkedin’s People You May Know page… This person passed away about a year ago. For the majority of her life, she ran a small hardware shop and she barely understood email, let alone LinkedIn.
  44. 44. Dropbox ACQUISTION! ! Signup driven homepage:
  45. 45. Dropbox REFERRAL! ! Sharing simplicity and availability on Multiple Devices & Platforms:
  46. 46. ! Dropbox REFERRAL & REVENUE! Get more space
  47. 47. ! Dropbox ACQUISTION & REFERRAL! Dropbox Great Space Race!
  48. 48. Dropbox REFERRAL & REVENUE! ! Dropbox growth hack in numbers… 1.  September 2008: 100,000 registered users! 2.  January 2010 (15 months later): 4,000,000! 3.  Mostly from word-of-mouth and viral:! • 35% of daily signups from referral program! • 20% from shared folders, other viral features! • Sustained 15-20%+ month-over-month growth since launch!
  49. 49. It doesn’t need to be online (initially)!
  50. 50. It doesn’t need to be online (initially)!
  51. 51. It doesn’t need to be online (initially)!
  52. 52. ACQUISITION: SEO hacks!
  53. 53. ACQUISITION!
  54. 54. ACQUISITION & REFERRAL! PS: I Love You. Get Your Free Email at Hotmail
  55. 55. ACQUISITION & REFERRAL!
  56. 56. ACQUISITION & REFERRAL!
  57. 57. ACQUISTION, ACTIVATION, RETENTION & REFERRAL! ACQUISTION, ACTIVATION & RETENTION!
  58. 58. ACQUISITION, REFERRAL & REVENUE! Extra tip: Reverse Engineered App Store’s ranking algorithm (approximation)! AppStore Ranking = H + D + R + E + S ! !H = # of installs weighted for the past few hours! !D = # of installs weighted for the past few days! !R = Reviews (star rating + number of reviews)! !E = Engagement (# of times app opened etc.) ! !S = Sales ($)! ! ! Luck? AppStore Bot? Dark pattern?
  59. 59. ACQUISITION & PROFIT!
  60. 60. REFERRAL!
  61. 61. REFERRAL!
  62. 62. REFERRAL!
  63. 63. REVENUE & PROFIT!
  64. 64. REVENUE & PROFIT!
  65. 65. REVENUE & PROFIT!
  66. 66. REVENUE & PROFIT! Unlock all books is the clear top revenue generator.
  67. 67. REVENUE & PROFIT! The $144,146,165 Button When cabs were cash only, the average tip was roughly 10%. After the introduction of this system, the tip percentage jumped to 22%. Those three buttons resulted in $144,146,165 of additional tips per year.
  68. 68. When Growth Hacking Goes Fail Hacking
  69. 69. Path Facebook blocked Path’s “Find Friends” access following spam controversy
  70. 70. Path Path texts your entire phonebook
  71. 71. Glide & Tinder Same…
  72. 72. Rap Genius: No SEO Genius
  73. 73. Rap Genius: No SEO Genius Rap Genius fell from around 700,000 uniques a day to around 100,000.!
  74. 74. Facebook Fraud
  75. 75. Facebook Fraud
  76. 76. Tools for metrics analysis …
  77. 77. aruete@technovabarcelona.org @LaSalleTechnova https://www.facebook.com/LaSalleTechnova http://blogs.salle.url.edu/emprendedores
  78. 78. Speakers Anna Ruete Entrepreneurship Program Manager – La Salle Technova Barcelona aruete@technovabarcelona.org
  79. 79. Speakers Pol Valls Soler @polvallssoler Key Account Manager at La Salle Technova Creator of: iOS app for discovering people nearby: joinerapp.com Reddit for spanglish geeks: zumogeek.com pvalls@technovabarcelona.org slideshare.net/polvallssoler
  80. 80. Speakers Juan Pérez Rodríguez Director – La Salle Technova Barcelona 10 years working with entrepreneurs and investors juanp@technovabarcelona.org
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