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Startup Marketing Metrics (for Pirates) BlueGlass LA Los Angeles, July 2010 Dave McClure  @DaveMcClure http://www.500hats.com http://500hats.typepad.com http://slideshare.net/dmc500hats HashTags: #blueglass #aarrr AARRR !
Discover  Meaning What Do Users Care About Enough to  F**k   or  Kill   ? Kathy Sierra: “ Creating Passionate Users”
Read  Geoffrey Miller Sex  +  Evolution  +  Consumer Mktg  =  Awesome Sauce
Other Great  Shit. Psychology  +  Comics
[Blatant  Plug ]
Dave McClure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],GEEK, CODER, ENTREPRENEUR Blogger, Startup Advisor Internet Marketing,  Angel/VC Investor
500 Hats Investments  (27 deals, 2004-2010, ~$400K) LinkDex oneforty Networked Blogs MyGengo Votizen Postling EcoMom SiteJabber Graphicly WePay Plancast 2004-2008: 13 deals, avg $25K results: 1 exit @ $170M (9x), +3-6 future wins 2009-10 (last 9 mo’s): 14 deals, avg $10K Recurly AwayFind
Founders Fund Investments  (43 deals, 2008-2010) Results : 8 raised seed rd $500K+  (+3 more break-even) Results : 5 raised next rd $2M+, 1 exit  (expect 5+ more) Facebook Incubator 22 deals ($850K)  ~$15-75K FF Angel LLC 21 deals ($2M) ~$50-250K
[First, Discover  Meaning ]
Discover  Meaning What Do Users Care About Enough to  F**k   or  Kill   ? Kathy Sierra: “ Creating Passionate Users”
Optimize  4  Happiness  (both User + Business) ,[object Object],[object Object],[object Object],[object Object],[object Object],$$$
Discover Meaning Keywords, Images, Call-to-Action ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[The  Lean  Startup]
The Lean Startup ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Discover  Customers (Steve Blank, SteveBlank.com)
Iterate , Dammit. (Eric Ries, StartupLessonsLearned.com) LEARN BUILD MEASURE IDEAS CODE DATA
Product/Market Fit  b4 “Launch” (Sean Ellis, Startup-Marketing.com) [email_address] Blog: startup-marketing.com
[Startup Metrics 4  Pirates ]
Just Gimme the GOOD Metrics. Users, Pages, Clicks, Emails, $$$...? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],the  good  stuff.
Startup Metrics for Pirates ,[object Object],[object Object],[object Object],[object Object],[object Object],(note: If you’re in a hurry, Google “Startup Metrics” & watch 5m video) AARRR !
AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
Q: What’s My Business Model? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Challenges ,[object Object],[object Object],[object Object],[object Object]
Role: Founder/CEO ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Customer Conversion Hypothesis (Users + Conversions + Priorities) ,[object Object],[object Object],[object Object],[object Object],[object Object]
TeachStreet Customer Hypothesis: Teachers & Students Teachers Students Activation ,[object Object],[object Object],[object Object],[object Object],Retention ,[object Object],[object Object],Referral ,[object Object],[object Object]
Role: Product / Engineering ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example Conversion Dashboard (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv.  % Est. Value (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page (2+ pages, 10+ sec, 1+ clicks = don’t abandon) 60% $.05 Activation “ Happy” 1 st  Visit; Usage/Signup (clicks/time/pages, email/profile reg, feature usage) 15% $.25 Retention Users Come Back; Multiple Visits (1-3x visits/mo; email/feed open rate / CTR) 5% $1 Referral Users Refer Others (cust sat >=8; viral K factor > 1; ) 1% $5 Revenue Users Pay / Generate $$$ (first txn, break-even, target profitability) 2% $50
Role: Marketing / Sales ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example Marketing Channels ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[M aarrr keting Metrics]
M AARRR keting Plan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Website.com ,[object Object],[object Object],[object Object],[object Object],Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
Acquisition Where are users coming from? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Acquisition Keyword Vocabulary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Acquisition Where are users coming from? ,[object Object],[object Object],[object Object],[object Object],Example
Acquisition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
One Step at a Time. ,[object Object],[object Object],[object Object],“ You probably can’t save your  Ass  and your  Face  at the same time…  choose carefully .”  – DMC
Links & Resources ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Appendix
[The Lean Investor]
Startup 2.0:  “Lean Investor” Model ,[object Object],[object Object],[object Object],[object Object]
Investment #1: Incubate (“Product”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investment #2: Seed (“Market”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investment #3: Venture (“Revenue”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Metrics Activation
Website.com ,[object Object],[object Object],[object Object],[object Object],[object Object],do LOTS of  landing  page  &  A/B tests  –  make lots of dumb  guesses &  iterate FAST Activation SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
Activation What do users do on their first visit? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Activation What do users do on their first visit? ,[object Object],[object Object],[object Object],[object Object]
Activation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Metrics Retention
Website.com ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Retention SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Retention How do users come back? How often?
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Retention How do users come back? How often?
Retention How do users come back? How often? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Retention ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Metrics Acquisition
Website.com ,[object Object],[object Object],[object Object],[object Object],Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains
Acquisition Where are users coming from? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Acquisition Keyword Vocabulary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Acquisition Where are users coming from? ,[object Object],[object Object],[object Object],[object Object],Example
Acquisition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Metrics Referral
Website.com Focus on driving referrals * after * users have a “ happy ” experience; avg score >=  8 out of 10 Referral Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
Referral How do users refer others? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Referral Viral Growth Factor ,[object Object],[object Object],[object Object],[object Object],A viral growth factor > 1 means an exponential organic user acquisition.
Referral ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Metrics Revenue
Website.com Revenue This is the part *you*  still have to figure out…  (we  don’t know jack  about your business) R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
Revenue How do you make money? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Revenue ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Types of Measurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Marketing Metrics 4 Pirates (July 2010)

  • 1. Startup Marketing Metrics (for Pirates) BlueGlass LA Los Angeles, July 2010 Dave McClure @DaveMcClure http://www.500hats.com http://500hats.typepad.com http://slideshare.net/dmc500hats HashTags: #blueglass #aarrr AARRR !
  • 2. Discover Meaning What Do Users Care About Enough to F**k or Kill ? Kathy Sierra: “ Creating Passionate Users”
  • 3. Read Geoffrey Miller Sex + Evolution + Consumer Mktg = Awesome Sauce
  • 4. Other Great Shit. Psychology + Comics
  • 6.
  • 7. 500 Hats Investments (27 deals, 2004-2010, ~$400K) LinkDex oneforty Networked Blogs MyGengo Votizen Postling EcoMom SiteJabber Graphicly WePay Plancast 2004-2008: 13 deals, avg $25K results: 1 exit @ $170M (9x), +3-6 future wins 2009-10 (last 9 mo’s): 14 deals, avg $10K Recurly AwayFind
  • 8. Founders Fund Investments (43 deals, 2008-2010) Results : 8 raised seed rd $500K+ (+3 more break-even) Results : 5 raised next rd $2M+, 1 exit (expect 5+ more) Facebook Incubator 22 deals ($850K) ~$15-75K FF Angel LLC 21 deals ($2M) ~$50-250K
  • 9. [First, Discover Meaning ]
  • 10. Discover Meaning What Do Users Care About Enough to F**k or Kill ? Kathy Sierra: “ Creating Passionate Users”
  • 11.
  • 12.
  • 13. [The Lean Startup]
  • 14.
  • 15. Discover Customers (Steve Blank, SteveBlank.com)
  • 16. Iterate , Dammit. (Eric Ries, StartupLessonsLearned.com) LEARN BUILD MEASURE IDEAS CODE DATA
  • 17. Product/Market Fit b4 “Launch” (Sean Ellis, Startup-Marketing.com) [email_address] Blog: startup-marketing.com
  • 18. [Startup Metrics 4 Pirates ]
  • 19.
  • 20.
  • 21. AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28. Example Conversion Dashboard (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv. % Est. Value (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page (2+ pages, 10+ sec, 1+ clicks = don’t abandon) 60% $.05 Activation “ Happy” 1 st Visit; Usage/Signup (clicks/time/pages, email/profile reg, feature usage) 15% $.25 Retention Users Come Back; Multiple Visits (1-3x visits/mo; email/feed open rate / CTR) 5% $1 Referral Users Refer Others (cust sat >=8; viral K factor > 1; ) 1% $5 Revenue Users Pay / Generate $$$ (first txn, break-even, target profitability) 2% $50
  • 29.
  • 30.
  • 31. [M aarrr keting Metrics]
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 42.
  • 43.
  • 44.
  • 45.
  • 47.
  • 48.
  • 49.
  • 50.
  • 52.
  • 53.
  • 54.
  • 55.
  • 56.
  • 58.
  • 59.
  • 60.
  • 61.
  • 62.
  • 64. Website.com Focus on driving referrals * after * users have a “ happy ” experience; avg score >= 8 out of 10 Referral Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
  • 65.
  • 66.
  • 67.
  • 69. Website.com Revenue This is the part *you* still have to figure out… (we don’t know jack about your business) R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
  • 70.
  • 71.
  • 72.

Editor's Notes

  1. BUILT TO LEARN This is the core feedback loop that powers startups. Their goal is not to optimize the time it takes to do any one of these steps. There are many specific practices that can power lean startups, and we’ll cover a few in this presentation. But more important than any specific practice is this core idea: startups should be built to learn.
  2. I know, too many bullets…
  3. If you don’t remember anything else, perhaps this graphic & the next 2-3 might be useful.
  4. Qualitative: SurveyMonkey (surveys), CrazyEgg (heatmap), TechSmith Morae / UserVue (ux recording), RobotReplay, TapeFailure. Quantitative: Google Analytics (free), MyBlogLog, ClickTracks, Index Tools, Visual Sciences / Webside Story, Omniture, WebTrends, etc. Comparative: Google Website Optimizer, SiteSpect, Optimost, Offermatica, Vertster, Kefta. Competitive: Quantcast, Compete.com, Alexa, Hitwise, Comscore, Nielsens. see more info at: http://webanalyticsassociation.com/ (WAA) http://kaushik.net/ (Avinash Kaushik) http://grokdotcom.com/ (Eisenbergs) http://www.emetrics.org/ (Jim Sterne)