Startup Metrics for Dummy Pirates

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An insightful and simple introduction to Dave McClure's Startup Metrics for Pirates (AARRR).
An overall perspective on the importance of measurements and optimization for startups.

@rafaeldahis

Published in: Business

Startup Metrics for Dummy Pirates

  1. STARTUPMETRICSfor dummy pirates rafaeldahis
  2. rafaeldahis24 years oldcomputer engineer, UFRJ metricsproduct manager at Peixe Urbano
  3. PRODUCT ≠ STARTUP ≠ COMPANY
  4. PRODUCT ≠ STARTUP ≠ COMPANY FIRST
  5. WHAT do you mean byPRODUCT ?
  6. AND THIS virtual CHANGESCHANNEL EVERYTHING! physical physical virtual PRODUCT
  7. virtualCHANNEL physical physical virtual PRODUCT
  8. costs building is cheaperflexibility changing is quickermetrics measuring is easier
  9. why should we measure? understand and optimize.
  10. </intro> <fun>
  11. PRODUCT
  12. PRODUCTthe world out there
  13. I BETyou have heard it before:
  14. we worked formonths building the PRODUCT.when we launched, no one used it.
  15. PRODUCT >
  16. customer developmentHey, look, users out there! growth
  17. Let´s talk about growth
  18. PRODUCT
  19. PRODUCT users valuevalue = revenue, content, connections, engagement, data
  20. def. profit:REVENUE > COSTS(my free definition)
  21. PRODUCTusers value(cost) (revenue)
  22. PRODUCTusers value(cost) (revenue) dividing per user…
  23. PRODUTOcost / user revenue / user
  24. PRODUTO CPA LTV cost per lifetimeacquisition value
  25. my minimalist growth theoremLTV > CPA
  26. my minimalist growth theoremmax( LTV – CPA )
  27. my minimalist growth theorem CPA LTVacquisition costs engagement and friction
  28. AARRR Dave McClure
  29. AARRR Dave McClure
  30. STARTUPMETRICS for pirates
  31. AARRR 2. ACTIVATION1. ACQUISITION 5. REVENUE 4. REFERRAL 3. RETENTION
  32. AARRR1. ACQUISITION HOW DO THESE GUYS GET THERE?WHAT TO DO?Ads, SEO, Email, Social Media, Blogs, Biz Dev, PR…WHAT TO MEASURE?Costs/Visit, Conversions (visit quality). CPA
  33. AARRR2. ACTIVATION WHAT DO THEY PERFORM AFTER THAT?WHAT TO DO?Landing Page Optimization, lots of UX iterations, value proposition reviewWHAT TO MEASURE?Conversions, bouce-rate, time on page.“In God we trust, for everything else: A/B TEST” CPA
  34. AARRR3. RETENTION DO THESE GUYS COME BACK?WHAT TO DO?Newsletter/Digest, Event-based messages, Push-notifications, life-cycle emailsWHAT TO MEASURE?Open-Rate, Click-Rate, WAU/MAU LTV
  35. AARRR4. REFERRAL DO THEY INVITE FRIENDS?WHAT TO DO?Create/Optimize your Viral Loop, Contests, Social Media CampaignsWHAT TO MEASURE?Viral Loop Conversions, K-factor CPA LTV (If there is network effect)
  36. AARRR5. REVENUE DO THEY F*ING PAY???WHAT TO DO?Figure it out, bro.WHAT TO MEASURE?Revenue per user/source/medium LTV
  37. QUIZ AARRR• high number of visits, high bounce rate, low time on site?• high number of visits, few signups?• steady visits, high % of new users?• CPA (cost per signup) = CPC * signup-conversion ?• low traffic from reference, search, direct?• few premium users?
  38. TIPSfrom my own failures
  39. TIPS Stop. Is it time to grow? (don’t waste money / time,go out and find that delicious product-market-fit)
  40. TIPSvanity metrics is for TechCrunch (and your Facebook friends) (and your grandma)Easy to spot: say no to absolute metrics i.e.: visits, pageviews, signups…
  41. TIPSMEASURE EVERYTHING = MEASURE NOTHING
  42. TIPSFOCUS(A, A, R, R or R?)
  43. TIPS one step at a time1. Build (activation + retention)2. Distribute (acquisition + referral)3. Make money (revenue)
  44. TIPS OMTM(one metric that matters)
  45. TIPSclassify your backlog(is this feature A, A, R, R or R?)
  46. TIPS hard to prioritize?pretend you are “THE OMTM”.
  47. TIPShow often? daily.Definitely not intraday. Better than weekly.
  48. TIPS make measurement easy. otherwise, no one will do it.[dashboards, reports, queries library, goals configuration, funnel analysis tools]
  49. TIPS mobile?same logic, different tools/metrics
  50. questions?
  51. STARTUPMETRICSfor dummy pirates rafaeldahis

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