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Metrics forEarly-Stage Startups                       #scb13 – @andreasklinger
@andreasklinger“Startup Founder”“Product Guy”                    #scb13 – @andreasklinger
@andreasklinger“Startup Founder”“Product Guy”What we will cover- Why early stage metrics are different.- Applicable method...
The Main Problem with Metrics in Early Stage:- Product not ready or even wrong.- Little to no useable data.- Data points c...
Startup Founders.        #scb13 – @andreasklinger
Some startups haveideas for a new product.Looking for customersto buy (or at least use) it.Customers don’t buy.“early stag...
Product/Market Fittraction                                                  time                   With early stage       ...
Product/market fitBeing in a good marketwith a product that can satisfythat market.~ Marc Andreessen                       ...
Product/market fitBeing in a good marketwith a product that can satisfythat market.~ Marc Andreessen= People want your stuf...
Product/Market Fittraction                                       time                                #scb13 – @andreasklin...
Product/Market Fittraction                                                                   time           Discovery     ...
Product/Market Fittraction                                                                 time           Discovery       ...
Product/Market Fittraction                                                                     time           Discovery   ...
Product/Market Fit   traction                                                                          time              D...
Product/Market Fittraction                                                                   time           Discovery     ...
Product/Market Fittraction                                                            time           Discovery   Validatio...
Product/Market Fittraction                                                                    time              Discovery ...
Product/Market Fittraction                                                                         time              Disco...
Startups drown innon actionable datapoints.
What does this mean for my product?Are we on the right track?Meant for channel (referral)optimization.
Use of Metrics in Early Stage                                #scb13 – @andreasklinger
Use of Metrics in Early StageFocus on People- Not Hits, Pageviews, Visits, EventsValidation of customer feedback- saying v...
Segment Users into CohortsCohorts = Groups of people that share attributes.                                               ...
Segment Users into Cohorts                             #scb13 – @andreasklinger
Apply a framework: AARRR                           #scb13 – @andreasklinger
AcquisitionVisit / Signup / etc  ActivationUse of core feature  RetentionCome + use again   Referral  Invite + Signup   Re...
Example: PhotoappCohorts based on registration week   WK      acquisition   activation   retention   referral   revenue   ...
Acquisition                             Visit / Signup / etc                               Activation                     ...
Acquisition                     Visit / Signup / etc                       Activation                     Use of core feat...
Acquisition                             Visit / Signup / etc                               Activation                     ...
Long answer - It depends on two things:                             Acquisition                            Visit / Signup ...
Acquisition                     Visit / Signup / etc                       Activation                     Use of core feat...
BecauseRetention = f(user_happiness)
Because           Retention = f(user_happiness)Crashpadder’s Happiness Indexe.g. Weighted sum over core activities by host...
AARRR misses something                                  AcquisitionAnd Happiness is not everything                        ...
CUSTOMER INTENT          Acquisition          Activation          Retention           Referral           RevenueFULFILMENT...
Metrics are horrible way to understand customer intent                                                         (c) Dave Mc...
Metrics are horrible way to understand customer intent    Customer Intent = His “Job to be done”                          ...
Startups are obsessed by their solutionAnd ignore the customers job/problem                                   Market      ...
Metrics are horrible way to understand customer intent                                                         (c) Dave Mc...
Metrics are horrible way to understand customer intent       Great Way: Customer Interviews                               ...
Metrics are horrible way to understand customer intent           OK Way: Smoke Tests                                      ...
CUSTOMER INTENT (JOB)                       AcquisitionCustomerInterviews                       Activation                ...
Dig deeper - Good product centric KPIs:Framework: AARRR                                          #scb13 – @andreasklinger
Dig deeper - Good product centric KPIs:Linked to assumptions of your product (validation/falsify)Rate or Ratio (0.X or %)F...
“Industry Standards”Framework: AARRR       Use industry averages as reality check.                       Not as benchmark....
Example Mobile App: Pusher2000Trainer2peer pressure sport app (prelaunch “beta”).Rev channel: Trainers pay monthly fee.Two...
Dig Deeper - Dataschmutz        A layer of dirt obfuscating        your useable data.        Usually “wrong intent”.      ...
Dataschmutz    A layer of dirt obfuscating    your useable data.e.g. Traffic Spikes of wrongcustomer segment.(have wrong in...
Dataschmutz                                Exam              MySugr              is praised as              “beautiful app...
How to minimize the impact of Dataschmutz Base your KPIs on wavebreakers.  WK       visitors   acquisition activation    r...
DataschmutzCompetitions create artificial incentive   Competition Created   “Dataschmutz” Competitions (before P/M Fit)    ...
Dig Deeper - Metrics need to hurt                                    #scb13 – @andreasklinger
Dig Deeper - Metrics need to hurtIf you are not ashamed about the KPIs inyour dashboard than something is wrong.Either you...
Dig Deeper - Metrics need to hurtExample: Garmz/LOOKKGreat Numbers:90% activation (activation = vote)But they only voted f...
User activation.Some users are happy (power users)Some come never again.What differs them? It’s their activities in their ...
Example TwitterHow often did activated usersuse twitter in the first month:7 timesWhat did they do?Follow 20 people, follow...
Example TwitterExample Twitter:How did they get more peopleto follow 30people within7visits in the first 30 days?Ran assump...
Checkout Intercom.ioCustomer segmenting and messaging done right.                                       #scb13 – @andreask...
Summary          #scb13 – @andreasklinger
Summary- Use Metrics for Product and Customer Development.- Use Cohorts.- Use AARRR.- Figure Customer Intent through non-b...
Read onStartup metrics for Pirates by Dave McClurehttp://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-ve...
Thank you@andreasklinger #SCB13Slides: http://slideshare.net/andreasklingerAll pictures: http://flickr.com/commons         ...
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Product/Market Fittraction time Discovery Validation Metrics for early stage startups

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Product/Market Fittraction time Discovery Validation Efficiency Scale 83% of all startups are in here. Most stuff we learn about web analytics is meant for this part #scb13 – @andreasklinger

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