Analytics is the measurement ofmovement towards your business goals.
In a startup, the purposeof analytics is to iterate toproduct/market fit before the money runs out.
Three categories of metrics to think about: 1.Qualitative and quantitative 2.Vanity and actionable 3.Exploratory and reporting
What makes a great metric? 1. Comparative over time, against a baseline 2. Understandable 3. Ratios and rates, not numbers 4. Improves the accuracy of your predictions 5. Your behavior changes when it does
What you should track is dependent on: Your basic business The stage your model startup is at How you make $$ Lifecycle • E-commerce • Find a need • SaaS • Find a solution • Free mobile app • Find a product • Media site • Find a business model • Collaborative content site • Find an exit • Two-sided marketplace
Eric Ries’ Engines of Growth1. Sticky engine2. Viral engine3. Price engine http://www.flickr.com/photos/toastforbrekkie/113065857/
The Long Funnel• Understanding the customer journey• Exploratory & reporting Get it here!http://bit.ly/QTPPsq
THE GATES OF LEAN ANALYTICS Area of focus “Gate” needed Key metrics for Lean McClure this stage at this stage to move forward I’ve found a real, poorly-met Qualitative responses Customer Attention Empathy need a reachable market Meetings held development (of faces. testers, prospe Scored qualitative cts, etc.) Surveys, bulk feedback I’ve figured out how to solve MVP building the problem in a way they Signup rates Stickiness will adopt and pay for. Activation Activation on invite/beta MVP iteration,Startup lifecycle stage sticky engine Retention MVP adoption I’ve built the right Retention product/features/functionality that keeps users around. Message open rates Organic Referral Virality Inherent sharing growth, viral Viral coefficient/cycle time Growth rate engine The users and features fuel growth organically and Word of Mouth sharing artificially. Key goal conversion rates Monetization, Revenue Revenue Customer lifetime value price engine I’ve found a sustainable, Customer acquisition cost scalable business with the Margins right margins in a healthy Access to employees ecosystem. Inorganic Attention Attention Access to capital growth, (at scale, of Competition beyond Lean customers) I can achieve a successful Visibility/SEO/SEM exit for the right terms. Channel health Exit!
The One Metric That Matters Or how to deal with your crippling ADD http://www.flickr.com/photos/andrec/2893549851/
Lean Analytics example: SaaS Area of focus at this stage Empathy Qualitative analysis (any interviewees writing checks?) Scoring problem interviews Survey results Beta signup (how many people sign up?) Stickiness Enrollment (how many visitors become users?) Daily, weekly, monthly active users Churn (how many users leave in a given time period?) Virality Virality (inherent – built into the product) Virality (artificial – invite someone for a free month) Growth rate Conversion (how many users become paying customers?) Revenue per Customer Revenue Up-selling (what makes customers increase spending?) Customer Acquisition Cost (CAC) Customer Lifetime Value (CLV) Attention Building sales channels Site visitors (how many people visit with other #s maintained?)
Sneak peek! • Break down of 6 business models and key metrics to focus on • How to use Lean Analytics at every stage of your startup & for big companies / intrapreneurs • Examples of “what’s ideal” for each major metric • The penny machine • The three-threes model • How crowdfunding fits in • How to instill a culture of analytics • Case studies from Circle of Moms, AirBnB, WP Engine, SEOmoz, Backupify, Wooga and more!