“I believe we are all liars, but I think
to a certain degree it’s a necessity.
To get up in the morning and face
the universe as an entrepreneur,
you need to have a bit of a reality
Author Lean Analytics
Comparative, Understandable, Ratio or rate
It depends :)
What drives your startup, what is it’
Who is your customer?
What do your customers want to
achieve with your product?
What do you want to learn?
Take the first step!
Know that you
Donald Rumsfeld, US Secretary of Defense
Image: Karin Cooper/Getty Images
Image: Lean Analytics book
The One Metric
Yes! Not working?
Pick another one.
Can I use made-up metrics?
$40 a month
$40 per month
Supports lots of API’s
< 5 minutes setup for basics
$9 per month
Lots of custom options
What happens if
Make an action plan!
“Send notification if the average
amount per order drops 10%
since the week before.”
< 1 hour setup
Works by default in Google
6 months in, this alert triggered.
What happened was that dev
team deployed new version of
website with “discounts sidebar”
visible on cart page. Oops! :)
Empathy, Stickiness, Virality
Revenue and Scale
What could be their OMTM?
Videos uploaded per minute
(enough new content being added)
Hours watched per day (per
(enough people watching the
Shares per video per day
(enough people talking about the
100M views (vanity)
(when does a video reach 100M
views, record is 4 days ‘Gentlemen’)
242 listings, 750 reviews
Requests per day
(give enough value to
escaperooms, 11 per day atm)
Users per month
(are we getting enough people in,
20k per month atm)
Reviews per user
(are people coming back. 1,3
reviews per user)
Shares per listing
(Do people share their favorite
escaperoom, answer is NO)
See if others pretend to believe your lies.
Will anyone care?
Test value proposition
“Can we get people to click on a
FB ad and test what is the
biggest pain for our target
14 ads in one ad group
1 week of testing
No real landing page
Focus on CTR
< 500 euro
We found right direction to
continue product and use in next
Test value proposition
“How do people perceive the
purpose of our landing page
5 second test
1 week of testing
Only time needed (2 hours of
clicking other people’s tests and
learn from those as well)
We found people wouldn’t get
the premise of the landing page.
Changed it, did it again. Saw
“How can we find the best
places to optimize to increase
Pick your funnel
(cart -> info -> payment -> thank you)
Implement Enhanced E-commerce
View report in Google Analytics and
see where most people drop off.
We removed friction for client in
form (IE problem) and increased
conversion uplift of 10%, sales per
month increase of € 15k)
(It’s also interesting to see where
they drop off to! Use segmentation!)
Watch 30 videos, get your hypothesis!
“Can we get people to come
back that visited an escape
We already had their email
addresses, we didn’t need an opt-in
We decided to do a mailing to ask
for a review. We knew when they
visited the escaperoom to make it
40% of people engaged with the
email and 50% gave their review.
Currently 750 reviews in 6
When was the last time you invited someone to
(For me it has been years ago)
People believe your lies, you want them to start
paying for them
25 of 100 people churn per month
Customer lifetime is 4 months
(100/25 = 4)
CLV = 20 * 4 = € 80
max CAC = 80 / 3 = € 26,50
10 of 100 people churn per month
Customer lifetime is 10 months
(100/10 = 10)
CLV = 20 * 10 = € 200
max CAC = 200 / 3 = € 66,50
2 of 100 people churn per month
Customer lifetime is 50 months
(100/2 = 50)
CLV = 20 * 50 = € 1000
max CAC = 1000 / 3 = € 333
What do you earn per customer per month? € 20
Lots of startups take ⅓ of their CLV as max CAC (in the end it’s up to you)
CLV and CAC
Spent € 263,25 and you got 3
conversions. CAC is € 87,75 here.
(Notice the € 0!)
More Dropbox lessons from
Drew Houston (CEO)?
The Core of
Lean is iteration
This is where
things fall apart
People invite their own network
(The ones you invite are most likely in the same
Something that has
never ever ever
being said about
is a superpower
A leading, causing metric
Predicts the future and directly impacts a dependent metric.
Current prospects in sales funnel for instance.
[NAME] was [ACTIVITY] at [LOCATION] with
his/her [PRODUCT] on.
He/She is looking for the right metric to
see if people at [LOCATION] want to buy
his [PRODUCT]. He believes that [METRIC]
will do that. He starts with a campaign via
[CHANNEL] to sell [NUMBER ] products and
targets [MARKET]. Do you think he has
what it takes?
Or a kitten dies