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Introduction to Metrics and KPIs

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Introduction to Metrics and KPIs

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Introduction to Metrics and KPIs

  1. 1. METRICS AND KPI’S
  2. 2. • Measures, Metrics and KPIs – What makes sense to be measured? • Pirate Metrics as a first Model • Traction Channels and the Pirate Metrics • KPIs Agenda
  3. 3. MEASURES, METRICS AND KPI’S
  4. 4. Measures Anything that is measured, e.g. number of customers, total revenue, etc. There is nothing inherently good or bad with a measure so it is not helping you to figure out if you are doing good.
  5. 5. Metric A value typically derived by a combination of two or more measures, e.g. total revenue over time, development of unique visitors etc. Metrics do provide you with an information if the values are good or bad.
  6. 6. KPI ”The most important performance information that enables organizations or their stakeholders to understand whether the organization is on track or not.” ”Something you are willing to pay a significant amount of money to increase it.”
  7. 7. METRICS- WHAT MAKES SENSE?
  8. 8. What makes sense to be measured? • Values that help you to understand you business, your customers behaviour and your current strengths and weaknesses • Values that help you to improve your business • Values that let you compare behaviour over time
  9. 9. HOW TO MEASURE?
  10. 10. Pirate Metrics ( to get started)
  11. 11. Acquisition Acquisition is the first contact point with a customer and your product or website. Examples: • Duel: Downloaded the App and registered • Germinal: Came to the website and registered for the newsletter
  12. 12. Activation Activation is the stage where people actually use your product. Examples: • Fullfekr: reading the Q&A, starting a free chat • Lynxir/Easypaz: Item placed to the Shopping cart/ first order
  13. 13. Retention Getting (first time) users back! Examples: • Datashahr: Writing two reviews/ searching two times via the platform for a second time within x days • Easypaz: Second Order
  14. 14. Referral Getting users into the referral stages means they not only like your product, but they think that their contacts and friends could also benefit from that value. Examples: Germinal: Recommend your product to their friends Hotspotplus: Forward Advertisement to their friends
  15. 15. Revenue Getting paid! Examples: Easypaz: Customer Lifetime value/ % of users that buy NazarBazaar: Average revenue per campaign Duel: Average number of Sales per partner
  16. 16. Example
  17. 17. Limits of the Pirate Metrics • Great to measure the onboarding process but not so good in measuring what happens after! • Originally focussed on SaaS services • Primarily measuring simple numbers
  18. 18. IMPLEMENTING TRACTION CHANNELS
  19. 19. Traction Channels and Pirate Metrics You don’t only want to know what happens with users once they are acquired but where they come from
  20. 20. Traction Channels and Pirate Metrics Metrics to measure: • Cost per Acquisition • What is the % for each acquisition channel • How do those users behave while going through the funnel – How many from each channel use the service once? – How many per channel are coming back? – How many invite friends? • CLV for each Traction Channel
  21. 21. KPI’S
  22. 22. KPI’s Where are you willing to pay a significant amount of money to increase the value?
  23. 23. HOMEWORK
  24. 24. Homework • Discuss and define your initial number of Metrics • Define a first version of your KPIs • Create a google spreadsheet to measure them weekly and share it with Sara • Insert the first set of numbers

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