Make Better Decisions!

8,553 views

Published on

Published in: Business

Make Better Decisions!

  1. Make Better Decisions!Using Metrics to WinHiten ShahPlusConf • December 7th, 2010
  2. Ferrari F430 Spider
  3. 152 miles per hour
  4. Most Startups Crash and Burn
  5. Let’s talk about what else is easy.
  6. Stop measuring what’s easy.
  7. Start measuring what matters.
  8. Vanity Metrics
  9. Actionable Metrics
  10. Original Hypothesis for KISSinsights“ Our hypothesis is that product manager type people have a problem doing fast/effective/frequent customer research.”
  11. Are the metrics you aretracking helping you make decisions?
  12. Example SaaS Web App• People sign up and pay online• They first sign up for a 7 day free trial• Then they pay $97 per month
  13. Example SaaS Web App • People sign up and pay online • They first sign up for a 7 day free trial • Then they pay $97 per monthWhat are your assumptions?
  14. Example SaaS Web App Macro StepsVisit Site Sign Up Activate Upgrade
  15. Software as a Service Product (Assumptions)Key Actions % of people # of people Visit Site 100% 1000 Sign Up 10% 100 Activate 5% 50 Upgrade 1% 10 Revenue $970 per month
  16. Baseline these key actions and assumptions.
  17. Software as a Service Product (Actual Baseline)Key Actions % of people # of people Visit Site 100% 1000 Sign Up 3.6% 36 Activate 1.2% 12 Upgrade 0.4% 4 Revenue $388 per month
  18. What would you try to improve?Key Actions % of people # of people Visit Site 100% 1000 Sign Up 3.6% 36 Activate 1.2% 12 Upgrade 0.4% 4 Revenue $388 per month
  19. Software as a Service Product (Video Test)Key Actions % of people # of people Visit Site 100% 1000 Sign Up 6.5% 65 Activate 1.8% 18 Upgrade 0.3% 3 Revenue $291 per month vs. $388 baseline :(
  20. Get inspired by what other’s have done
  21. Software as a Service Product (Inspired Test)Key Actions % of people # of people Visit Site 100% 1000 Sign Up 7.7% 77 Activate 2.8% 28 Upgrade 1.2% 12 Revenue $1164 per month vs. $388 baseline :)
  22. Software as a Service Product (Compare all 3)Key Actions Baseline Video Test Inspired Test Visit Site 100% 100% 100% Sign Up 3.6% 6.5% 7.7% Activate 1.2% 1.8% 2.8% Upgrade 0.4% 0.3% 1.2% Revenue $388 per $291 per $1164 per month month month
  23. The Startup Pyramid The Race to the Top Growth Transition to Growth Product / Market Fit Sean Ellis: Startup-Marketing.com
  24. AARRRCreated by Dave McClure - 500startups.com Designed by 1. ACQUISITION Customers come from various channels 2. ACTIVATION Customers use product for first time YOUR PRODUCT 3. RETENTION 4. REFERRAL Customers come back multiple times Customers refer others 5. REVENUE Customers make your business money
  25. Minimize TOTAL time through the loop IDEASLearn Faster Build Faster LEARN BUILD Unit TestsSplit TestsCustomer Interviews Usability TestsCustomer Development Continuous IntegrationFive Whys Root Cause Incremental DeploymentAnalysis Free & Open-SourceCustomer Advisory Board ComponentsFalsifiable Hypotheses DATA CODE Cloud ComputingProduct Owner Cluster Immune System Just-in-time ScalabilityAccountability MEASURE RefactoringCustomer Archetypes Measure FasterCross-functional Teams Developer SandboxSemi-autonomous Teams Split Tests Funnel Analysis Minimum Viable ProductSmoke Tests Clear Product Owner Cohort Analysis Continuous Deployment Net Promoter Score Usability Tests Search Engine Marketing Real-time Monitoring Real-Time Alerting Customer Liaison Predictive Monitoring Eric Ries: StartupLessonsLearned.com
  26. Lean Startup Data-Driven Process
  27. No Departments, Just Two Teams ? Problem Team What are the ☼ Solution Team Find the most important minimum solution problems to solve? for a given problem.
  28. 15 - 45 minute team meetings (M,W,F)
  29. “Your Focus Needs More Focus”
  30. Questions?Got questions? Want advice? Email Me! hshah@kissmetrics.com

×