3.Growth and measuring success

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Growth Analytics and how to measure Growth and success. Why measuring is where the Lean Cycle breaks, what are good and bad metrics, applying the concept of the Northstar Metric and One Metric that Matters

Business

Growth
You
Analytics
Photo: Antonio Guillem/Getty Images/iStockphoto
Measuring Growth
By Juliana Méndez
juliana@saleside.co

linkedin.com/in/julianamendez/

@julianitam

Growth vs. Digital Marketing
Digital
Marketing
Strategy
Growth
Strategy

Why Growth?
Multiply impact on your goals along the entire way

The Core of Growth
No data,

no learning
This is where

things fall apart
People love

this part

Everyone’s idea

is the best, right?

Analytics helps…
• Know what you will become when you grow up (before
the money runs out)
• Measure your movement towards your Business goals
• Keeps us honest
• Let’s us learn

Growth Analytics fails
• Data “Puking” & drowning in data
• Making things look good, not tracking
what is needed
• Failing to focus, measure the wrong
thing
• Everyone optimises for something else
• Not changing anything

Good Metrics - Bad Metrics
The Good
• Understandable
• Comparative
• rate or a ratio
• Behaviour
Changing
The Bad
Metrics are people too,
measure uniques, no
totals
The Ugly
Good metrics often hurt
We like to be lied to

The North Star Metric
https://www.slideshare.net/growthhackers/what-is-a-north-star-metric

Find the North Star Metric
• Understand the main value of your business for your
customers
• Try to quantify this value in a single number
• It’s not just Marketing, it’s a team effort, and a common goal
https://www.slideshare.net/growthhackers/what-is-a-north-star-metric
nights booked

One Metric That Matters -
RIGHT NOW
….. breaks down NS to the drivers to be optimised RIGHT NOW
5% more new visitors per day
3 repeat orders per month/user
$15 Avg. Unique Order volume
1.25 Viral coefficient
8% new activated customers

5 reasons to use a North Star
and the OMTM
1. Tells you which are the most important questions you have
2. Forces you to draw a line in the sand and set the right goals
3. Avoids “data puking” & focuses the entire company
4. Inspires experimentation
5. Tool that contributes to long term sustainable growth

Key Takeaways:
Successful Growth Analytics
• Find your North Star Metric and the OMTM “right now”
• Avoid vanity metrics, ask the right questions and draw
a line in the sand
• Tag and Track the required variables!
• Every failed experiment is a win as well

- Collaborators
www.saleside.co

juliana@saleside.co

linkedin.com/in/julianamendez/

Matias Ketonen
Growth Analyst
Juliana Mendez
Owner SaleSide
Rachel Mzengi
Content and Web
https://www.slideshare.net/
dmc500hats/startup-metrics-
for-pirates-long-version
Dave McClure: Startup
Metrics for Pirates

This is to you….thanks for being here,

now go get these numbers.

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I’m not going to spend any time on Google Analytics. How healthy is this business? It’d be great to track metrics like these: 1 MRR, Churn, LTV, acquisition cost 2 Virality, DAU, MAU 3 Average order value, repurchase rate 4 Funnels and conversions But you don’t have any data yet Your data is in a constant rate of decay Your data is messy Use metrics that measure your biggest problem. Ignore the rest. Gateway Metrics When picking metrics, always ask yourself: What’s my biggest constraint right now and which metric will tell me if I’m making progress? You need to do the right things in the right order. Gateway #1: Is your idea any good? Your main constraint: Getting anyone to care about your idea. Your main metric: Get someone to pay or use your product regularly. Bad metrics for this gateway: 1 Asking people if they’ll pay 2 AdWords clicks 3 Beta or waiting list signups 4 Traffic Gateway #2: Is your product good enough? Your main constraint: Having a product that’s good enough to build a business on. Your main metric: Ask 500 users the Product/Market Fit Question What is the P/M Fit Question? Your goal for the P/M Fit Question: At least 40% of users should say “Very disappointed.” *Sean Ellis and Hiten Shah get credit for this one. How do you get to the first 500 users/customers? Hustle. The P/M Fit Question isn’t perfect, verify with a retention metric. Gateway #3: Can you grow? Your main constraint: Acquiring customers consistently from at least one channel. You have plenty of options to choose from: 1 Inbound (Google, Content, Social) 2 Paid (PPC, Affiliates) 3 Virality (Invites, Referrals) Pick just one to start Work on your channel for at least 3 months. Assume it’ll work and get the resources needed to execute. Your main metrics: Your main business metric and acquisition funnel. Main business metrics: 1 SaaS: Monthly Recurring Revenue 2 Ecommerce: Monthly Revenue 3 Consumer Tech: Monthly Active Users Why not cost per acquisition or lifetime value? You have no idea how much it costs to acquire customers or how much they’ll spend (yet). Gateway #4: Do you have a stable model? Your main constraint: In order to keep scaling, you need a stable model for your business. Your main metrics: Depends entirely on what business model you have. The SaaS Model The Ecommerce The Consumer Tech Model Find someone in your industry that knows the key benchmarks. Finally, get serious with data. If you have a sales team, pile data into your CRM. If consumer tech, do everything in-house. Google Analytics plus an internal database will take you far. Start with constraints, hack together what you need to measure them. How to get data you really need: 1 One team owns data quality. 2 Hire a data engineer. 3 Clean up and integrate your data. 4 Use customer analytics. 5 Build a Growth Team.

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https://www.productmanagementtoday.com/frs/26795801/the-path-to-product-excellence--avoiding-common-pitfalls-and-enhancing-communication In the fast-paced world of digital innovation, success is often accompanied by a multitude of challenges - like the pitfalls lurking at every turn, threatening to derail the most promising projects. But fret not, this webinar is your key to effective product development! Join us for an enlightening session to empower you to lead your team to greater heights. Through compelling storytelling and actionable insights, learn to overcome challenges like misaligned objectives, communication breakdowns, and resistance to change. Takeaways: • Uncover and navigate through common pitfalls that are plaguing product teams today. • Explore proven solutions, laying the groundwork for triumphant product launches. • Gain inspiration from real-world success examples from top digital companies, offering invaluable insights into their winning strategies. • Discover how the symbiotic relationship between product managers, UX/UI designers, and developers can transform pitfalls into opportunities, propelling your product outcomes to unprecedented heights.

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3.Growth and measuring success

1. Growth You Analytics Photo: Antonio Guillem/Getty Images/iStockphoto Measuring Growth By Juliana Méndez juliana@saleside.co linkedin.com/in/julianamendez/ @julianitam

2. Growth vs. Digital Marketing Digital Marketing Strategy Growth Strategy

3. Why Growth? Multiply impact on your goals along the entire way

4. The Core of Growth No data, no learning This is where things fall apart People love this part Everyone’s idea is the best, right?

5. Analytics helps… • Know what you will become when you grow up (before the money runs out) • Measure your movement towards your Business goals • Keeps us honest • Let’s us learn

6. Growth Analytics fails • Data “Puking” & drowning in data • Making things look good, not tracking what is needed • Failing to focus, measure the wrong thing • Everyone optimises for something else • Not changing anything

7. Good Metrics - Bad Metrics The Good • Understandable • Comparative • rate or a ratio • Behaviour Changing The Bad Metrics are people too, measure uniques, no totals The Ugly Good metrics often hurt We like to be lied to

8. Careful with Vanity Metrics Things you can measure, but DON’T MATTER really…. • Hits and page views • # of Visits • Unique visitors • followers & fans • Time on Site • Brand affinity/ presence

9. The North Star Metric https://www.slideshare.net/growthhackers/what-is-a-north-star-metric

10. Find the North Star Metric • Understand the main value of your business for your customers • Try to quantify this value in a single number • It’s not just Marketing, it’s a team effort, and a common goal https://www.slideshare.net/growthhackers/what-is-a-north-star-metric nights booked

11. One Metric That Matters - RIGHT NOW ….. breaks down NS to the drivers to be optimised RIGHT NOW 5% more new visitors per day 3 repeat orders per month/user $15 Avg. Unique Order volume 1.25 Viral coefficient 8% new activated customers

12. Find the “AHA” Moment …..Action Set that activates customer stays min x sec + downloads ebook viewed page XY + connected payment method >= 1 purchase Account creation (complete profile data) interacts with core feature

13. 5 reasons to use a North Star and the OMTM 1. Tells you which are the most important questions you have 2. Forces you to draw a line in the sand and set the right goals 3. Avoids “data puking” & focuses the entire company 4. Inspires experimentation 5. Tool that contributes to long term sustainable growth

14. Key Takeaways: Successful Growth Analytics • Find your North Star Metric and the OMTM “right now” • Avoid vanity metrics, ask the right questions and draw a line in the sand • Tag and Track the required variables! • Every failed experiment is a win as well

15. - Collaborators www.saleside.co juliana@saleside.co linkedin.com/in/julianamendez/ Matias Ketonen Growth Analyst Juliana Mendez Owner SaleSide Rachel Mzengi Content and Web https://www.slideshare.net/ dmc500hats/startup-metrics- for-pirates-long-version Dave McClure: Startup Metrics for Pirates

16. This is to you….thanks for being here, now go get these numbers.

3.Growth and measuring success

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