Startup Metrics for Pirates: AARRR! (SXSW March 2008)

Startup Metrics for Pirates: AARRR! Dave McClure, Master of 500 Hats @ SXSW, March 2008 blog: http://500hats. typepad .com/ website: http://www.500hats.com/ slides: http: //slideshare .net/dmc500hats/ * reminder: National Talk Like a Pirate Day is Sept 19 th !

Panel o’ PIRATES! ,[object Object],[object Object],[object Object],[object Object],[object Object]

AARRR genda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Pirate Warmups ,[object Object],[object Object],[object Object],[object Object]

Why You Should Be A Web 2.0 Entrepreneur Pirate! AARRR! BOOTY!

Startup Metrics for Pirates: 5 Steps to Web 2.0 Booty ! ,[object Object],[object Object],[object Object],[object Object],[object Object],AARRR !

Customer Lifecycle & Conversion Behavior Website.com 4. REFERRAL Emails & widgets Campaigns, Contests 5. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 2. Activation Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Q: Business Model? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Founder/CEO ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Product / Engineering ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Marketing / Sales ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Customer Lifecycle / Conversion Behavior Website.com ,[object Object],[object Object],[object Object],[object Object],SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Customer Lifecycle / Conversion Behavior Website.com ,[object Object],[object Object],[object Object],[object Object],[object Object],do LOTS of landing page tests & A/B tests – make lots of dumb guesses & iterate FAST 2. Activation Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Customer Lifecycle / Conversion Behavior Website.com ,[object Object],[object Object],[object Object],[object Object],[object Object],2. Activation Homepage / Landing Page Product Features 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Customer Lifecycle / Conversion Behavior Website.com Encourage users to refer * after * they have “ happy” user experience; avg score >= 8 out of 10 2. Activation Homepage / Landing Page Product Features 4. REFERRAL Emails & widgets Campaigns, Contests 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Customer Lifecycle / Conversion Behavior Website.com This is the part * you * have to figure out… I don’t know jack about your business 5. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 2. Activation Homepage / Landing Page Product Features 4. REFERRAL Emails & widgets Campaigns, Contests 1. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains

Example Conversion Metrics (note: *not* actuals … your mileage may vary.) Category Conversion 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/Acct Signup (anything that could lead to repeat visit) 5% $2 Retention Length of Session / # of Clicks (length/intensity of engaged visit, >180s) 10% $1 Retention Email Open/ RSS view -> Click/Repeat Visit (3+ visits in first 30 days) 3% $5 Referral Refer 1+ users who visit site 2% $1 Referral Refer 10+ users who activate 0.2% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25

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]

Example Marketing Channels disclaimer: estimates of vol, cost/user, time & effort are subjective – actual costs are dependent on your specific business

Marketing Initiative Feb ‘07 Goal: 2,000 New Registrants a Day ,[object Object],[object Object],[object Object],[object Object]

A Registrant is Not Always a Member ,[object Object],[object Object]

Activants Aren’t Always Members Either ,[object Object],[object Object]

Tracking Tools ,[object Object],[object Object],[object Object],[object Object]

Old Signup Process ,[object Object],[object Object],[object Object],[object Object],[object Object],Signup Time ~ 15-20 min Conversion Rate ~ 0.1%

New Process – Automate almost everything ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Change #1: Used MBL Widget to discover Blog URL ,[object Object]

Change #2: Use Blog URL to inspect blog Lijit Networks, Inc. ,[object Object],[object Object]

Change #3 : Find other User Generated Content ,[object Object],[object Object]

Validation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],http://ouriel.typepad.com/myblog/2007/08/execution-is--1.html

[object Object],The RockYou Mission

[object Object],[object Object],[object Object],(2) Registered Users (MM) RockYou Growth: Fastest Ever. Facebook platform launch

Referral traffic is key for viral growth ,[object Object],[object Object],[object Object]

Install flow example for Bumper Sticker

Engagement flow example for Friends for Sale

Metrics for viral loop User Call to action to invite friends x = invited friends Accept? No Yes y% = accept rate x * y > 1 gives you viral growth!

Typical viral numbers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Use multiple flows and 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],0.5 + 0.3 + 0.3 = 1.1 VIRAL!!!

Important tips ,[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]

AARRR! Any Questions, Ye Scurvy Dogs? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Startup Metrics for Pirates: AARRR! (SXSW March 2008)

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Startup Metrics for Pirates: AARRR! (SXSW March 2008)

Similar to Startup Metrics for Pirates: AARRR! (SXSW March 2008) (20)

More from Dave McClure

More from Dave McClure (20)

Recently uploaded

Recently uploaded (20)

Startup Metrics for Pirates: AARRR! (SXSW March 2008)