Business Metrics• Cost to acquire customers (CAC)• Average Revenue per User (ARPU)• Churn • Avoidable & unavoidable• Conversion (CVN) • Compare Search, Display, Radio, etc.• Life time value (LTV) • LTV = ARPU/Churn • LTV / CAC > 1 is success!• Monthly Recurring Revenue (MRR)
LTV / CAC1.2 Model “successful”0.90.60.3 0 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 To IPO range is maybe 4 to 6 LTV / CAC today Fine print: Like all metrics use to track, not as strategy
Split Testing Website• Persona analysis and customer interviews on new brand• Of new trafﬁc, 50% old, 50% new• Measure effect on conversion: looked at new trials after 50/50 coming from old and new to determine lift with 95% conﬁdence interval of 20-30%
Product UX TestingWorkshops Concepting Qualitative Quantitative Prototypes(personas) (sketches) (Axure) (Loop11) You can use an iPad at a Cafe and show keynote. Key point is to test mockups on people ﬁrst.
Continuous Delivery• Feature ﬂag everything and gently deploy• Weekly deploys (should be daily)• Read 12factor.net (dev, staging, production)• Monitor (i.e. NewRelic)• Practice BDD & continuous integration
Product Metrics• Customer success TTL TTFS • Time to ﬁrst sale Aug • Time to launch July• Trend monthly or June weekly cohorts May• Engagement score during trial 0 25 50 75 100
Feature KPI• Before you build a • e.g. completing task feature, deﬁne a success more quickly KPI • Add instrumentation • e.g. Number of before and after product reviews completed • Deploy to subset of customers to test • e.g. 30% fewer abandoned carts • Consider Mixpanel
Startup Friendly Stack• Use Ruby Sinatra (or Clojure) + CoffeeScript + Backbone + Handlebars on Heroku• Nesta for CMS and learn textmate, Haml & Sass, see https://github.com/ sharner/Workshop-Site• HTML5 mobile ﬁrst, responsive design• Use Mailchimp & google forms• Log events to understand customer success (see Heroku Plugins)
Peopleware• Technical co-founder challenges• Don’t offshore• Don’t churn people• Find designer who codes frontend and does user testing
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