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Startup Metrics for Pirates: AARRR!  Future of Web Apps (FOWA) Miami, February 2009 Dave McClure, Founders Fund http://www...
Startup Metrics for Pirates <ul><li>A cquisition:  users come to site from various  channels </li></ul><ul><li>A ctivation...
50 Slides + 15 Min =  O Shit. <ul><li>The Basics </li></ul><ul><li>Measure Stuff.  Keep It Simple. </li></ul><ul><li>5 Ste...
Web 2.0: Fuck  Yes , Good Times. <ul><li># Users, Bandwidth =  Bigger. </li></ul><ul><li>Lower Startup Costs =  Badder. </...
The Startup Metrics Religion <ul><li>Progress ≠ Features ( Less   =  More ) </li></ul><ul><li>Focus on  User Experience </...
Q: What’s My Business Model? <ul><li>Can be one of the following: </li></ul><ul><ul><li>Get Users  (= Acquisition, Referra...
AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION...
Just Gimme the GOOD Metrics. Users, Pages, Clicks, Emails, $$$...? <ul><li>Q: Which of these is best?  How do you know? </...
3 Key Metrics Frameworks: biz model, conversion dashboard, mktg channels <ul><ul><li>Define  1-Page Biz Model : customer s...
Role: Founder/CEO <ul><li>Q: Which Metrics? Why? </li></ul><ul><li>A: Focus on  Critical Few Actionable  Metrics </li></ul...
The 1-Page Business Model (Users + Conversions + Priorities) <ul><li>Q1: What  types  of people use your website?  </li></...
TeachStreet Metrics v1: Eye Chart Madness
TeachStreet 1-Page Business Model: Teachers & Students Teachers Students Activation <ul><li>Claim Profile </li></ul><ul><l...
TeachStreet: 45-day Claim Rates ( Seattle ,  Portland )
Role: Product / Engineering <ul><li>Q: What Features to Build?  Why?  When are you “Done”? </li></ul><ul><li>A:  Easy-to-F...
Example Conversion Dashboard (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv.  % Est. Value (*no...
Optimize  4  Happiness  (both User + Business) <ul><li>Define  States of User + Business Value </li></ul><ul><li>Prioritiz...
Role: Marketing / Sales <ul><li>Q: What channels?  Which users?  Why? </li></ul><ul><li>A: High  Volume  (#), Low  Cost  (...
Example Marketing Channels disclaimer: estimates of vol, cost/user, time & effort are subjective – actual costs are depend...
M AARRR keting Plan <ul><li>Marketing Plan = Target Customer Acquisition Channels </li></ul><ul><ul><li>3 Important Factor...
One Step at a Time. <ul><ul><li>Make a Good Product : Activation & Retention </li></ul></ul><ul><ul><li>Market the Product...
Summary <ul><li>Measure Stuff.  Keep It Simple. </li></ul><ul><li>5 Steps: Startup Metrics for Pirates ( AARRR !) </li></u...
Links & Resources <ul><li>Additional References: </li></ul><ul><li>“ Influence: The Psychology of Persuasion ”, Robert Cia...
Appendix
Startup Metrics Activation
Website.com <ul><li>Activation Criteria: </li></ul><ul><li>10-30+ seconds </li></ul><ul><li>2-3+ page views </li></ul><ul>...
Activation What do users do on their first visit? <ul><li>Example Activation Goals </li></ul><ul><ul><li>Click on somethin...
Activation What do users do on their first visit? <ul><li>Key Metrics to Track </li></ul><ul><ul><li>Pages per visit </li>...
Activation <ul><li>Tools </li></ul><ul><ul><li>Crazy Egg (Visual Click Mapping) </li></ul></ul><ul><ul><li>http://crazyegg...
Startup Metrics Retention
Website.com <ul><li>Automated emails: </li></ul><ul><li>lifecycle emails @ +3, +7, +30d  </li></ul><ul><li>status / “best ...
<ul><li>Cohort Analysis: </li></ul><ul><li>Distrib of Visits over Time </li></ul><ul><li>Rate of Decay </li></ul><ul><li>E...
<ul><li>Example Retention Goals </li></ul><ul><ul><li>1 - 3+ visits per month </li></ul></ul><ul><ul><li>20% open rate / 2...
Retention How do users come back? How often? <ul><li>Key Metrics to Track </li></ul><ul><ul><li>Source </li></ul></ul><ul>...
Retention <ul><li>Tools </li></ul><ul><ul><li>Campaign Monitor / MailChimp (email newsletter software) </li></ul></ul><ul>...
Startup Metrics Acquisition
Website.com <ul><li>Marketing Channels: </li></ul><ul><ul><li>largest-volume (#)  </li></ul></ul><ul><ul><li>lowest-cost (...
Acquisition Where are users coming from? <ul><li>Acquisition Methods </li></ul><ul><li>SEO / SEM </li></ul><ul><li>Blogs <...
Acquisition Keyword Vocabulary <ul><li>Top 10 - 100 words </li></ul><ul><ul><li>Your Brand / Products </li></ul></ul><ul><...
Acquisition Where are users coming from? <ul><li>Key Metrics to Track </li></ul><ul><ul><li>Quantity (#) </li></ul></ul><u...
Acquisition <ul><li>Tools </li></ul><ul><ul><li>Google Analytics (web analytics) </li></ul></ul><ul><ul><li>google.com/ana...
Startup Metrics Referral
Website.com Focus on driving referrals * after * users have a “ happy ” experience; avg score >=  8 out of 10 Referral Acq...
Referral How do users refer others? <ul><li>Referral Methods </li></ul><ul><li>Send to Friend: Email / IM </li></ul><ul><l...
Referral Viral Growth Factor <ul><li>Viral Growth Factor =  X  *  Y  *  Z </li></ul><ul><li>X = % of users who invite othe...
Referral <ul><li>Tools </li></ul><ul><ul><li>Gigya (social media distribution & tracking tool) </li></ul></ul><ul><ul><li>...
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...
Revenue How do you make money? <ul><li>Revenue Tips </li></ul><ul><ul><li>Don’t Rely on AdSense (only) </li></ul></ul><ul>...
Revenue <ul><li>Resources & Tools </li></ul><ul><ul><li>Revenue Metrics (Andrew Chen) </li></ul></ul><ul><ul><li>http://ti...
Be Bold.  Be Humble. <ul><li>Stuff That Matters: </li></ul><ul><li>Passion  for Problem/Solution  + Hypothesis of  Custome...
Passion  vs.  Precision <ul><li>“ Solve a Problem” =  Passion </li></ul><ul><li>“ Optimize the Solution” =   Precision </l...
Types of Measurement <ul><li>Qualitative : Usability Testing / Session Monitoring </li></ul><ul><ul><li>Watch users,  gues...
Design, Optimize for  Conversion
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Optimize 4 Happiness (both User + Business) Define States of User + Business Value Prioritize (Estimate) Relative Value of Each State Move Users: Lower Value -> Higher Value Optimize for User Happiness / Business $$$ Achieve Low Cost + High Value @ Scale $$$

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  • This is a MUST read for all first-time startups. Thanks so much for sharing this!!!
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  • thanks very much, this is not only helpful but also great to listen to, I´d love to get the ppt and see more!
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  • Wow, love it, AARRR! will become my next war cry! Thanks Mr. McClure!
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  • This was an awesome presentation DAVE. Although you were a bit rushed, the content and depth of your recommendations could save a developer or marketer a lifetime. I will be following more of your content - marketing suggestions. Please post or send me some feedback on Blacksonville as you learn more about the brand. Thanks for making this accessible on the web!
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