Metrics that Matter
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Metrics that Matter Presentation Transcript

  • 1. Metrics that Matter Poornima Vijayashanker EIR @ 500 Startups April 30, 2014 1
  • 2. • What are metrics and analytics • Methods of collecting metrics • Types of metrics • One metric that matters Agenda 2
  • 3. What are metrics? 3
  • 4. A business metric is any type of measurement used to gauge some quantifiable component of a company’s performance such as ROI, churn rate, etc. “ ” 4
  • 5. “ ” Analytics is the discovery and communication of meaningful patterns in data. 5
  • 6. Why do we need analytics & metrics? 6
  • 7. Uncertainty. 7
  • 8. A startup is an experiment. 8
  • 9. Experiments needs a hypothesis & results! 9
  • 10. Vanity metrics. 10
  • 11. Almost anything you read on TechCrunch. 11
  • 12. We send out 10M emails daily! We received 1M likes overnight! ”“ “ ” 12
  • 13. What are good metrics? 13
  • 14. 1. Comparative 2. Understandable 3. Ratio 14
  • 15. What will I do differently based on this information? - Lean Analytics ” “ 15
  • 16. Total sign ups - Vanity Metric vs. Total active user - Actionable Metric 16
  • 17. Qualitative vs. Quantitative 17
  • 18. Sometimes you have to pick up the phone! 18
  • 19. KPIs: Key Performance Indicator 19
  • 20. Leading vs. Lagging 20
  • 21. Cohort A/B Multivariate Similar groups over time. Lots of data. Testing all variables at once. 21
  • 22. January February March April May Total Customers 1,000 2,000 3,000 4,000 5,000 Avg Revenue Per Customer $5.00 $4.50 $4.33 $4.25 $4.50 Figure 2-1 from Lean Analytics. Average revenue for 5 months as we add features, and refine product. 22
  • 23. What is this data telling us? 23
  • 24. Cohort Analysis Month of UseMonth of UseMonth of UseMonth of UseMonth of Use Cohort 1 2 3 4 5 January $5.00 $3.00 $2.00 $1.00 $0.50 February $6.00 $4.00 $2.00 $1.00 March $7.00 $6.00 $5.00 April $8.00 $7.00 May $9.00 Averages $7.00 $5.00 $3.00 $1.00 $0.50 Figure 2-3 from Lean Analytics. Cohort Analysis of revenue data. Horizontal axis are cohorts (e.g. January cohort). Spending less initially. Spending increases. 24
  • 25. AARRR 25
  • 26. Marketing Metrics Product Metrics Customer Metrics Pricing Metrics 26
  • 27. Marketing Metrics Product Metrics Customer Metrics Pricing Metrics 27
  • 28. website Need to figure out appropriate metric for each. e-mail campaigns offline social media Market Channels 28
  • 29. Possible Reach in Channel Actual Reach Sign Up for Trial Active Paying Long Term Paying Funnel per Channel 29
  • 30. Marketing Metrics Product Metrics Customer Metrics Pricing Metrics 30
  • 31. Sign up for product Try out product Actively use product Convert to Paid Refer more users Funnel for Product 31
  • 32. Funnel depends on type of product. 32
  • 33. Services that are used constantly but with a specific purpose. Daily 33
  • 34. Frequently used products with a number of use cases. Daily 34
  • 35. Less frequently used product with a specific use case. Yearly? Possibly monthly. 35
  • 36. Frequency of use (engagement), use case, and appeal impact adoption. 36
  • 37. What features trigger conversions? 37
  • 38. How can you create an experience that will set off those triggers? 38
  • 39. 39
  • 40. 1. Understand place of features in your product. 2. Look at the frequency of their usage. 3. Does one feature lead to the usage of another? 4. How might you constrain a user’s experience or provide a certain workflow to adopt Feature X? 5. Can issues reported or enhancements requested be monetized? 40
  • 41. Marketing Metrics Product Metrics Customer Metrics Pricing Metrics 41
  • 42. •# of customers •Recency •Retention Rate (churn rate) •LTV (lifetime value) •Customer Acquisition Costs •Customer Profitability •Net Promoter Score 42
  • 43. •Prospects •First-time Buyers •Early Repeat Buyers •Core Customers •Core Defectors 43
  • 44. One metric that matters. 44
  • 45. • Most important question you have. • Draw a line. • Focuses entire company. • Encourages a culture of experimentation & small failures. 45
  • 46. • How many new customers do you need? • How many new customers per week (per acquisition channel) do you think define a level of success? • Level of success being that which gets you to the next stage. 46
  • 47. Take a snapshot today! Marketing & product. 47
  • 48. $0 $1K $5K $10K $10K $100K Marketing activities change. Customer costs change. 48
  • 49. Appendix. 49
  • 50. • What are metrics and analytics • Methods of collecting metrics • Types of metrics • One metric that matters Review 50
  • 51. • E-Commerce Site • Get to shopping cart. • Reduce abandonment! • SaaS • Monthly subscription • Conversion v. cancellation rate • Marketplace • transaction fee • connecting buyers & sellers • Mobile App • discovery • in-app purchases • upgrading to paid app • Media • engagement with content Metrics based on business model 51