Ash Maurya Innovation Accounting - 2012 Lean Startup Conference

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Ash Maurya Innovation Accounting - 2012 Lean Startup Conference

  1. INNOVATIONACCOUNTINGA Spark59 Case-Study ASH MAURYA @ashmaurya ashmaurya.com spark59.com
  2. In God we trust,all others bring data.-W. Edwards Deming
  3. Startups don’t starve,they drown.-Shawn Carolan, Menlo Ventures
  4. What you wanted
  5. WTFWhat you wanted The reality
  6. 01 Establish a standard measure of progress.
  7. Financial accounting Innovation Accounting
  8. Dave McClure’s Pirate Metrics How do users find you? ACQUISITIONDo users have a great first experience? ACTIVATION Do users come back? RETENTION How do you make money? REVENUE Do users tell others? REFERRAL
  9. 02 Measure everything as a cohort.
  10. You cannot step in thesame river twice.-Heraclitus
  11. Signups
  12. Signups Activation
  13. Signups Activation Paid Conversion
  14. Signups Activation Paid Conversion
  15. SignupsActivation Paid Conversion
  16. SignupsActivation Paid Conversion
  17. 03 Focus on a single key metric.
  18. 2%
  19. 2%
  20. 04 Build a continuous feedback loop with customers for rapid hypothesis generation.
  21. 1. Too busy.2. Need more information.3. Just kicking tires.
  22. 1. Too busy.2. Need more information.3. Just kicking tires.
  23. Results?
  24. No significant impact.
  25. Except...
  26. REVISED 03 Focus on a single key metric, but always monitor the full customer lifecycle.
  27. A/B Tests7-Day Course (A/B Test)300 Participants have run this experiment. Time Range: July 9, 2012 - July 13, 2012 Control Hypothesis A ? 651 participants (50%) 652 participants (50%) activated 35% 34% retention 31% 45% referred 19% 20% paid 2% 4%More data is needed to determine a winner.Hypothesis A is currently winning with a 44% improvement and a 80% chance to beat the baseline.
  28. Lifecycle MessagingDay 1 Welcome + Week 1 ChallengeDay 3 Educational Content #1Day 5 Educational Content #2
  29. Lifecycle MessagingDay 1 Welcome + Week 1 ChallengeDay 3 Educational Content #1Day 5 Educational Content #2 What happened #1 Help content Offer helpDay 9 Check-in + Week 2 ChallengeDay 14 Educational Content #3Day 20 Educational Content #4 What happened #2 Help content Offer help Check-in + Week 4 challengeDay 24 + soft sellDay 29 Offer Bonus Extend trial Ask for feedback Offer incentive ...
  30. 05 Metrics alone are not enough.
  31. Standard Measure of Progress COHORT SPEED METRICS Rapid Hypotheses Formulation SPLIT LIFECYCLE LEARNING TESTING FOCUS MESSAGINGExperiments
  32. For an extended version of this talk, visit:http://bit.ly/InnovationAccounting
  33. THANKS!For an extended version of this talk, visit:http://bit.ly/InnovationAccounting Lean Canvas Ash Maurya | Author, Running Lean | Founder, Spark59 | @ashmauryaLife is too short to build something nobody wants

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