” what!?”
 
Startup Metrics for Pirates:   AARRR !!! (Startup Metrics for Product Marketing & Product Management)   Dave McClure Maste...
Customer Lifecycle: 5 Steps to Success <ul><li>A cquisition : where users come from </li></ul><ul><li>A ctivation : happy ...
Customer Lifecycle / Conversion Behavior Website.com 4. REFERRAL 5. Revenue $$$ 2. Activation 3. RETENTION 1. ACQUISITION
Customer Lifecycle / Conversion Behavior Website.com <ul><li>Marketing Channels: </li></ul><ul><ul><li>largest-volume (#) ...
Customer Lifecycle / Conversion Behavior Website.com <ul><li>Activation Criteria: </li></ul><ul><li>10-30+ seconds </li></...
Customer Lifecycle / Conversion Behavior Website.com <ul><li>Automated emails are simple & easy retention feature </li></u...
Customer Lifecycle / Conversion Behavior Website.com Only encourage users to  refer * after * they have  “ happy” user exp...
Customer Lifecycle / Conversion Behavior Website.com 2. Activation This is the part * you *  have to figure out…  I don’t ...
AARRR!
Example Conversion Metrics (note: *not* actuals; your mileage may vary…)  Category User Status Conv % Est. Value Acquisiti...
Example Conversion Metrics (note: *not* actuals; your mileage may vary…)  Category User Status Conv % Est. Value Acquisiti...
Example Conversion Metrics (note: *not* actuals; your mileage may vary…)  Category User Status Conv % Est. Value Acquisiti...
Example Conversion Metrics (note: *not* actuals; your mileage may vary…)  Category User Status Conv % Est. Value Acquisiti...
Example Conversion Metrics (note: *not* actuals; your mileage may vary…)  Category User Status Conv % Est. Value Acquisiti...
Marketing <ul><li>Q: What channels / who do you market to? </li></ul><ul><li>Test Multiple Channels & Different Segments <...
Product <ul><li>Q: How do you choose what to build? </li></ul><ul><li>Choose features for conversion improvement </li></ul...
Founder/CEO <ul><li>Q: What metrics do you choose to watch? </li></ul><ul><li>Hypothesize Customer Lifecycle & Refine </li...
Make Metrics your religion If it’s not measurable,  it’s not actionable
Rydell & Quick
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Startup Metrics For Pirates - Copied by Dave McClure

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This is a 5-step model for creating a metrics framework for your business & customers, and how to apply it to your product & marketing efforts. The "pirate" part comes from the 5 steps: Acquisition, Activation, Retention, Referral, & Revenue (AARRR!)

The origninal presentation is here: http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

Published in: Self Improvement

Startup Metrics For Pirates - Copied by Dave McClure

  1. 3. ” what!?”
  2. 5. Startup Metrics for Pirates: AARRR !!! (Startup Metrics for Product Marketing & Product Management) Dave McClure Master of 500 Hats blog: http://500hats.typepad.com/ website: http://www.500hats.com/
  3. 6. Customer Lifecycle: 5 Steps to Success <ul><li>A cquisition : where users come from </li></ul><ul><li>A ctivation : happy first experience </li></ul><ul><li>R etention : users come back </li></ul><ul><li>R eferral : users tell other people </li></ul><ul><li>R evenue : you make MONEY! </li></ul>
  4. 7. Customer Lifecycle / Conversion Behavior Website.com 4. REFERRAL 5. Revenue $$$ 2. Activation 3. RETENTION 1. ACQUISITION
  5. 8. Customer Lifecycle / Conversion Behavior Website.com <ul><li>Marketing Channels: </li></ul><ul><ul><li>largest-volume (#) </li></ul></ul><ul><ul><li>lowest-cost ($) </li></ul></ul><ul><ul><li>best-performing (%) </li></ul></ul>1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
  6. 9. Customer Lifecycle / Conversion Behavior Website.com <ul><li>Activation Criteria: </li></ul><ul><li>10-30+ seconds </li></ul><ul><li>2-3+ page views </li></ul><ul><li>3-5+ clicks </li></ul><ul><li>1 key feature usage </li></ul>Do LOTS of landing page tests & A/B tests - just make lots of dumb guesses & iterate QUICK 2. Activation Homepage / Landing Page Product Features 1. ACQUISITION
  7. 10. Customer Lifecycle / Conversion Behavior Website.com <ul><li>Automated emails are simple & easy retention feature </li></ul><ul><li>lifecycle emails @ +3, +7, +30d </li></ul><ul><li>event-based emails as they occur </li></ul>2. Activation 1. ACQUISITION 3. RETENTION Emails & Alerts Blogs, Content System Events & Time-based Features
  8. 11. Customer Lifecycle / Conversion Behavior Website.com Only encourage users to refer * after * they have “ happy” user experience; avg score >= 8 out of 10 2. Activation 3. RETENTION 4. REFERRAL Emails & widgets Campaigns, Contests 1. ACQUISITION
  9. 12. Customer Lifecycle / Conversion Behavior Website.com 2. Activation This is the part * you * have to figure out… I don’t know jack about your business 4. REFERRAL 3. RETENTION 5. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 1. ACQUISITION
  10. 13. AARRR!
  11. 14. Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
  12. 15. Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
  13. 16. Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
  14. 17. Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
  15. 18. Example Conversion Metrics (note: *not* actuals; your mileage may vary…) Category User Status Conv % Est. Value Acquisition Visit Site (or landing page, or external widget) 100% $.01 Acquisition Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) 70% $.05 Activation Happy 1 st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
  16. 19. Marketing <ul><li>Q: What channels / who do you market to? </li></ul><ul><li>Test Multiple Channels & Different Segments </li></ul><ul><li>Select & Focus on: </li></ul><ul><ul><li>High Volume </li></ul></ul><ul><ul><li>High Conversion </li></ul></ul><ul><ul><li>Low Cost </li></ul></ul><ul><li>Measure *deeper* down the conversion funnel, not just to website / landing page </li></ul>
  17. 20. Product <ul><li>Q: How do you choose what to build? </li></ul><ul><li>Choose features for conversion improvement </li></ul><ul><ul><li>80% on existing feature optimization </li></ul></ul><ul><ul><li>20% on new feature development </li></ul></ul><ul><li>Just guess, then A/B test … A LOT </li></ul><ul><li>Rinse & Repeat </li></ul>
  18. 21. Founder/CEO <ul><li>Q: What metrics do you choose to watch? </li></ul><ul><li>Hypothesize Customer Lifecycle & Refine </li></ul><ul><ul><li>Choose 5-10 conversion steps </li></ul></ul><ul><li>Measure & Iterate </li></ul><ul><li>Delegate each Metric to someone to OWN </li></ul>
  19. 22. Make Metrics your religion If it’s not measurable, it’s not actionable
  20. 23. Rydell & Quick

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