3 Important Things    About Metrics      founders should know              Jan König - @einkoenig
0
0The AAA’s of Metrics     Auditable                Accessible                 Actionable
0What Makes a Good Metric?           A rate or a ratio rather than an absolute or cumulative value. New           users pe...
0
1“ A metric tells a complete story using data,  measures, information, and other metrics  to answer a root question.      ...
1Metrics                         Data                    Measures          Information            Information             ...
1Data, Measures, and Information                                 Data    Data                                             ...
1Root Question  “Answers are only useful when you know the question”                                                   – M...
1Finding the Right Question: 5 WhysAsk Why (What, How, What if?)until you can no longer answer with a deeper need.Example“...
2“ Metrics are a tool, an indicator –  they are not the answer and may have  multiple interpretations.                    ...
2Metrics as Indicators                        “Data is just one perspective”                         Source: http://blog.i...
3“ Triangulation is a principle foundation  for a strong metric program.                                             ”    ...
3Triangulation Example: Triangulation of Effectiveness Metrics                                    Delivery                ...
3Triangulation in a RestaurantRestaurant’s Effectiveness Metrics   with TriangulationDelivery    Usage    Customer Satisfa...
3Triangulation in a RestaurantRestaurant’s Effectiveness Metrics   without TriangulationDelivery    Usage    Customer Sati...
?So, how do I use these principles?What’s next?
?Martin Klubeck’s Answer Key                     Product / Service Health                     Customer View      Return vs...
?Martin Klubeck’s Answer Key                     Product / Service Health                     Customer View      Return vs...
?Focus on Product Health                            Delivery Product / Service Health   Usage Customer View               ...
?Focus on Product Health                            Delivery                                          Customer Journey Pro...
Feedback?Hey, I’m Jan!I am a German student and I’m currently writingmy bachelor’s thesis about metrics for startups.I wou...
Photo CreditsSlide 3Jan Krömer, http://www.flickr.com/photos/81336062@N00/285835148ZionNPS, http://www.flickr.com/photos/5...
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3 Important Things About Metrics Founders Should Know

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Read the full blog post here: http://jan-koenig.com/blog/?p=109

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  • Thank you, Jörg! I will cover that in one of my next presentations.
    Cheers, Jan
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  • Cool presentation!
    From my point of view it is still a very theoretical and therewith abstract approach. Of course there are no metrics that are applicable to every startup. But for me as a reader a implementation process or information about how startups develop their metrics (best) would be pretty interesting. (I am aware of the fact that this probably might not be covered by the topic your thesis)
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3 Important Things About Metrics Founders Should Know

  1. 1. 3 Important Things About Metrics founders should know Jan König - @einkoenig
  2. 2. 0
  3. 3. 0The AAA’s of Metrics Auditable Accessible Actionable
  4. 4. 0What Makes a Good Metric? A rate or a ratio rather than an absolute or cumulative value. New users per day is better than total users. Comparative to other time periods, sites, or segments. Increased conversion from last week is better than “2% conversion.” No more complicated than a golf handicap. Otherwise people won’t remember and discuss it. For “accounting” metrics you use to report the business to the board, investors, and the media, something which, when entered into your spreadsheet, makes your predictions more accurate. For “experimental” metrics you use to optimize the product, pricing, or market, choose something which, based on the answer, will significantly change your behaviour. Better yet, agree on what that change will be before you collect the data. Source: http://leananalyticsbook.com/one-metric-that-matters/
  5. 5. 0
  6. 6. 1“ A metric tells a complete story using data, measures, information, and other metrics to answer a root question. ” Martin Klubeck
  7. 7. 1Metrics Data Measures Information Information Metric Root Question Source: Klubeck, “Metrics”, page 13
  8. 8. 1Data, Measures, and Information Data Data Data Data Data Data Data Measures Information Measures Data DataExamples Page Hits on Dec 23 2500 (Data) Hits (Measures) Page Hits per Day Last Week 2500 (Data) Hits (Measures) 2600 (Data) Hits (Measures) … 2520 (Data) Hits (Measures) per Day (Information) … 2350 (Data) Hits (Measures)
  9. 9. 1Root Question “Answers are only useful when you know the question” – Martin Klubeck A wrong question means: wrong data, measures, and information wrong metric interpretation wrong action wrong product change
  10. 10. 1Finding the Right Question: 5 WhysAsk Why (What, How, What if?)until you can no longer answer with a deeper need.Example“I want to measure retention with a cohort analysis”“Are the users coming back to use my product?”“Is my product at the moment solving their problems well enough to be important to them?”“What could make them come back more often?” (possible) root question “What do I have to change to make a better“What product changes do address the and more desired product for my users?”users’ needs and lead to an increasing usage?”
  11. 11. 2“ Metrics are a tool, an indicator – they are not the answer and may have multiple interpretations. ” Martin Klubeck
  12. 12. 2Metrics as Indicators “Data is just one perspective” Source: http://blog.intercom.io/the-problem-with-data-driven-decisions/ Never base decisions on core numbers! Use metrics as indicators to find out where something is wrong. Then do further investigation. In-depth Analysis. Customer Development.
  13. 13. 3“ Triangulation is a principle foundation for a strong metric program. ” Martin Klubeck
  14. 14. 3Triangulation Example: Triangulation of Effectiveness Metrics Delivery using multiple measures, collection methods, andProduct / Service Health Usage sources for aCustomer View comprehensive picture Customer Satisfaction
  15. 15. 3Triangulation in a RestaurantRestaurant’s Effectiveness Metrics with TriangulationDelivery Usage Customer Satisfaction Possible Interpretation OK, something is wrong here. You know that. “The only game in town.” Or a product customers need but don’t want. Great food and a loyal, but very small customer base. Maybe a bad location. Crazy! Time to look at other metrics to improve your business. Source: Klubeck, “Metrics”, page 149f
  16. 16. 3Triangulation in a RestaurantRestaurant’s Effectiveness Metrics without TriangulationDelivery Usage Customer Satisfaction Possible Interpretation bad focus on bad good good
  17. 17. ?So, how do I use these principles?What’s next?
  18. 18. ?Martin Klubeck’s Answer Key Product / Service Health Customer View Return vs. Investment Process Health Business View Company Maturity Organizational Health Worker View State of the Organization Future Health Leadership View
  19. 19. ?Martin Klubeck’s Answer Key Product / Service Health Customer View Return vs. Investment Process Health Business View Organizational Health Worker View State of the Organization Future Health Leadership View
  20. 20. ?Focus on Product Health Delivery Product / Service Health Usage Customer View Customer Satisfaction
  21. 21. ?Focus on Product Health Delivery Customer Journey Product / Service Health Usage Customer View Activation, Retention, Revenue Customer Satisfaction
  22. 22. Feedback?Hey, I’m Jan!I am a German student and I’m currently writingmy bachelor’s thesis about metrics for startups.I would love to get some feedback about this approach(which is the “high-level part” of my thesis).I will upload some other presentations about metricsdesign in startups within the next weeks.Glad to hear from you!JanTwitter: @einkoenigMail: me@jan-koenig.com
  23. 23. Photo CreditsSlide 3Jan Krömer, http://www.flickr.com/photos/81336062@N00/285835148ZionNPS, http://www.flickr.com/photos/54168808@N03/5015792234comedy_nose, http://www.flickr.com/photos/23408922@N07/4873283906Slide 6Neta Bartal, http://www.flickr.com/photos/53742192@N05/6646556769/Slide 11Furryscaly, http://www.flickr.com/photos/98528214@N00/312210315Slide 13loop_oh, http://www.flickr.com/photos/80384851@N00/7986197617

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