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Startup Metrics for Pirates AARRR! SeedCamp 2008 University College London  09/16/08 Dave McClure, Master of 500 Hats http...
AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION...
Disclaimer <ul><li>I’m not rich </li></ul><ul><li>I’m lazy </li></ul><ul><li>I’m easily distracted (ADD) </li></ul><ul><li...
500 Startups (500=13)
Web 2.0: What’s So Special? <ul><li>Startup Costs = lower </li></ul><ul><li># Users, Bandwidth = bigger </li></ul><ul><li>...
Startup Metrics: An Overview <ul><li>Business Plans are  BULLSHIT </li></ul><ul><li>Revenue Projections are  Hockey Stick ...
Startup Metrics: An Overview <ul><li>What Really Matters: </li></ul><ul><li>Passion  for Problem/Solution  + Hypothesis of...
Startup Metrics:  Passion  vs  Precision <ul><li>“ Solve a Problem” =  Passion </li></ul><ul><li>“ Optimize the Solution” ...
What’s The Best Metric ?  Users, Pages, Clicks, Emails, $$$ <ul><li>Q: Which Would You Prefer? </li></ul><ul><ul><li>1,000...
Startup Metrics for Pirates <ul><li>A cquisition:  users come to site from various  channels </li></ul><ul><li>A ctivation...
AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION...
Q: What’s My Business Model? <ul><li>Can be one of the following: </li></ul><ul><ul><li>Get Users  (= Acquisition, Referra...
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></ul...
The 1-Page Business Model (Users + Conversions + Priorities) Q2: What actions could they take to help  you   or  them   ? ...
Role: Product / Engineering <ul><li>Q: What to Build?  Why? </li></ul><ul><li>A:  Build Features that  Increase Conversion...
Example Conversion Metrics (note: *not* actuals… your mileage may vary) Stage Conversion Status Conv.  % Est. Value (*not*...
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...
Startup Priorities  <ul><li>Diff’rent Strokes for Diff’rent Folks: </li></ul><ul><ul><li>Make a Good Product : Activation ...
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>crazyegg.com </...
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>...
Links & Resources <ul><li>Additional References: </li></ul><ul><li>“ Influence: The Psychology of Persuasion ”, Robert Cia...
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Startup Metrics Activation

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