Bussiness Metrics (Friday Training at Itnig)

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itnig

Interesting talk about hte main metrics in an ecommerce. Tips for web-based small business.

Business Technology

FRIDAY TRAININGS

http://itnig.net/en/events

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Hi!
I’m Bernat Farrero
I work at Camaloon, the place where people create and
order their custom products
At Itnig, I join entrepreneurs in their hunt for a business
model

we reinvent wheels
and by doing so, sometimes...

We ﬁnd out different ways to solve problems,
new forms of value, new markets, new tools
and that is our biggest competitive
advantage

The 12 monkeys paradox

Our lever of success is the framework we
set for

experimentation

the scientiﬁc method

In Lean Startup terminology

We need to be ﬂexible and agile

Startups need
crossfunctional thinking.
People working on features
or campaigns
must see and understand
the big picture

Set clear speciﬁc measurable goals for every task
experiment and understand results, if you don’t... it’s waste

All goals are ultimately business goals... otherwise they are
waste

To prevent waste, everyone should deﬁne and track a
set of metrics for each experiment / task

zillions of users
revenue clicks impressions page views
pins fans followerslow bounce rateopen rate

vanity metrics (for investors)

vs

actionable metrics (to understand
your business)

proﬁt ctr transactionschurn reach LTV
activations
conversion ratettpvirality coefficient

Man, you better work on
Revenue

• Lead Generation, new users, optimize CAC

• Improve Conversion Rate, reduce TTP

• Increase Average Purchase Value (UP-Sell,
CROSS-Sell)

• Improve Retention, repeated purchases, better
LTV

• Improve Virality coefficient, or reach

Global business metrics
(5-10)
Revenue CAC Transactions Average Purchase Value

General Conversion Rate LTV Time To Purchase

Uniques Churn Virality Coef

Experiment-based metrics
(1-5)
Speciﬁc Conversion RateFunnel Analysis Clicks

Cohort Analysis Page bounce rate CPA
Time from event to
CTR CPC
another
Number of times something
happen

A useful tool: Kissmetrics

Action in our site

We send an i.e. Product
added to the cart
snippet EVENT
&
cookie
It might include
i.e. Quantity
properties

KM stores it Metrics | Reports
All events are tight to each People

Metrics
Dashboar

Properties and Segments

Transactions

Funnel Analysis

All relevant ﬂows should have a funnel deﬁned

That’s all
I hope you turn your life into a
great

EXPERIMENT

Thanks for listening!
@bernatfarrero

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Bussiness Metrics (Friday Training at Itnig)

1. FRIDAY TRAININGS http://itnig.net/en/events SPONSORs twitter @itnig HASHTAG #ftrainings

2. Hi! I’m Bernat Farrero I work at Camaloon, the place where people create and order their custom products At Itnig, I join entrepreneurs in their hunt for a business model

3. truths The unspoken

4. UNCERTAINTY Startup is

5. Entrepreneur teams are NEWBIES

6. we reinvent wheels and by doing so, sometimes... We ﬁnd out different ways to solve problems, new forms of value, new markets, new tools and that is our biggest competitive advantage The 12 monkeys paradox

7. Our lever of success is the framework we set for experimentation the scientiﬁc method

8. In Lean Startup terminology We need to be ﬂexible and agile

9. which basically means

10.

11. Startups need crossfunctional thinking. People working on features or campaigns must see and understand the big picture Set clear speciﬁc measurable goals for every task experiment and understand results, if you don’t... it’s waste All goals are ultimately business goals... otherwise they are waste To prevent waste, everyone should deﬁne and track a set of metrics for each experiment / task

12. So let’s focus on METRICS

13. zillions of users revenue clicks impressions page views pins fans followerslow bounce rateopen rate vanity metrics (for investors) vs actionable metrics (to understand your business) proﬁt ctr transactionschurn reach LTV activations conversion ratettpvirality coefficient

14. We’re doing GREAT!

15. Really?

16. AARRR!!!

17. Man, you better work on Revenue • Lead Generation, new users, optimize CAC • Improve Conversion Rate, reduce TTP • Increase Average Purchase Value (UP-Sell, CROSS-Sell) • Improve Retention, repeated purchases, better LTV • Improve Virality coefficient, or reach

18. Global business metrics (5-10) Revenue CAC Transactions Average Purchase Value General Conversion Rate LTV Time To Purchase Uniques Churn Virality Coef Experiment-based metrics (1-5) Speciﬁc Conversion RateFunnel Analysis Clicks Cohort Analysis Page bounce rate CPA Time from event to CTR CPC another Number of times something happen

19. A useful tool: Kissmetrics

20. A useful tool: Kissmetrics Action in our site We send an i.e. Product added to the cart snippet EVENT & cookie It might include i.e. Quantity properties KM stores it Metrics | Reports All events are tight to each People

21. Metrics Dashboar Properties and Segments Transactions

22.

23. Funnel Analysis All relevant ﬂows should have a funnel deﬁned

29. The messy LIVE tab

30. Don’t forget qualitative analysis

31. Inspectlet example

32. That’s all I hope you turn your life into a great EXPERIMENT Thanks for listening! @bernatfarrero