Pirate metrics and growth hacks to improve your profit
•
13 likes•3,059 views
Discover the pirate metrics framework, the key metrics to track to be profitable and growth hacks from other companies.
Recommended
Recommended
More Related Content
What's hot
What's hot (20)
Viewers also liked
Viewers also liked (14)
Similar to Pirate metrics and growth hacks to improve your profit
Similar to Pirate metrics and growth hacks to improve your profit (20)
More from La Salle Technova Barcelona
More from La Salle Technova Barcelona (20)
Recently uploaded
Recently uploaded (20)
Pirate metrics and growth hacks to improve your profit
- 1. Pirate Metrics & Growth Hacks To Improve Your Profit
- 2. INTRODUCTION Speakers Anna Ruete Entrepreneurship Program Manager – La Salle Technova Barcelona aruete@technovabarcelona.org
- 3. INTRODUCTION Speakers Pol Valls Soler @polvallssoler Key Account Manager at La Salle Technova Creator of: iOS app for discovering people nearby: joinerapp.com Reddit for spanglish geeks: zumogeek.com pvalls@technovabarcelona.org slideshare.net/polvallssoler
- 4. INTRODUCTION Speakers Juan Pérez Rodríguez Director – La Salle Technova Barcelona 10 years working with entrepreneurs and investors juanp@technovabarcelona.org
- 6. EXERCISE 1 Metrics Which one of these two companies is the best for you? Company A Company B It is a social network for runners. They launched the platform in 2011. Closed 2013 with 2 Millions of users and 1.5 Millions of Euros of Net Profit. It is a social network for pregnant. They are in the market since 2012. Closed 2013 with a community of 95.000 users and a Net Profit of 0.5 Millions of Euros. They expect the following KPI for 2014: For 2014: Cost marketing: New users: 600.000 € 400.000 Cost marketing: 100.000€ New users: 60.000 # Visits / day: Conversion Rate: Average time: 374.000 5% 00:03:48 # Visits / day 42.000 Conversion Rate 5% Average time: 00:01:27
- 7. CONTEXT Before 2000 – After 2008 Before 2000 After 2008 Sun Servers! Oracle DB! Exodus Hosting! 12-24mo dev cycle! 6-18mo sales cycle! <100M people online! $1-2M seed round! $3-5M Series A! Sand Hill Road crawl! ! Big, Fat, Dinosaur Startup! AWS, Google, PayPal, FB, TW! Cloud + Open Source SW! Lean Startup / Startup Wknd! 3-90d dev cycle! SaaS / online sales! >3B people online! <$100K incub + <$1M seed! $1-3M Series A! Angel List global visibility! ! Lean, Little, Cockroach Startup! Source:500startups!
- 8. AARRR Pirate Metrics for startup s and mAAARRketing for startups ACQUISITION ACTIVATION RETENTION REFERRAL PROFIT REVENUE
- 9. AARRR Pirate Metrics for startup s and mAAARRketing for startups ACQUISITION Users come to the site; you have their attention BLOG EXAMPLE: users come to the site and stay for at least 2 minutes ! SaaS EXAMPLE (pdf to html conversion service): user signs up for the service
- 10. AARRR Pirate Metrics for startup s and mAAARRketing for startups ACTIVATION User performs some key activity that indicates a good first visit BLOG EXAMPLE: user signs up for RSS/newsletter ! SaaS EXAMPLE (pdf to html conversion service): user successfully makes a document
- 11. AARRR Pirate Metrics for startup s and mAAARRketing for startups RETENTION User continues to do that key activity indicating they like your product BLOG EXAMPLE: user reads at least one post a week or opens the newsletter ! SaaS EXAMPLE (pdf to html conversion service): user continues to make documents. As long as they're successfully making documents they will continue to use the service.
- 12. AARRR Pirate Metrics for startup s and mAAARRketing for startups REFERRAL User gets other users to join BLOG EXAMPLE: user promotes your blogs contests and drives traffic ! SaaS EXAMPLE (pdf to html conversion service): Users send other users to our web, possibly with a coupon code
- 13. AARRR Pirate Metrics for startup s and mAAARRketing for startups REVENUE User pays you BLOG EXAMPLE: user buys your ebook SaaS EXAMPLE (pdf to html conversion service): yay! money! !
- 14. AARRR FUNNEL Customer Lifecycle / Conversion Behavior
- 15. AARRR FUNNEL Customer Lifecycle / Conversion Behavior
- 16. AARRR Conversion Metrics Example Category User 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 1st Visit (views X pages, stays Y sec, Z clicks) 30% $.25 Activation Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) 5% $1 Activation Acct Signup (includes profile data) 2% $3 Retention Email Open / RSS view -> Clickthru 3% $2 Retention Repeat Visitor (3+ visits in first 30 days) 2% $5 Referral Refer 1+ users who visit site 2% $3 Referral Refer 1+ users who activate 1% $10 Revenue User generates minimum revenue 2% $5 Revenue User generates break-even revenue 1% $25
- 17. AARRR FUNNEL Customer Lifecycle / Conversion Behavior
- 18. AARRR CAC & LTV CAC: Costumer Adquisition Cost LTV: Costumer LifeTime Value
- 19. EXERCISE 1 Metrics Which one of these two companies is the best for you? Company A Company B CAC=600.000€/400.000users= 1.5€ CAC=100.000€/60.000users= 1,66€ LTV= 1.500.000€/2.000.000users= 0,75€ LTV=500.000€/95.000users= 5,26€ LTV/CAC= 0,75 / 1,5 = 0,5 LTV/CAC = 5,26 / 1,66 = 3,16
- 20. AARRR CAC & LTV
- 21. KEY METRICS TO TRACK…
- 22. ACQUISITION Key Metrics To Track:! ! ! • Volume(#) ! • Cost ($)! • Conversion (%)!
- 23. ACQUISITION
- 24. ACQUISITION Acquisition tips (for the top 10 - 100 words)! • Your brand / Products! • Customer needs / Benefits! • Competitor’s brand / Products (Steal traffic)! • Semantic equivalents! ! • Misspellings !
- 25. ACQUISITION Extra tip: How to get your first 100 users! 1) What existing solution do you believe your product is better than? 2) Where can you find a critical mass of people who use the existing solution? 3) Go there. Talk to them. Show them your product. ! Extra tip: Reverse Engineered App Store’s ranking algorithm (approximation)! AppStore Ranking = H + D + R + E + S H = # of installs weighted for the past few hours D = # of installs weighted for the past few days R = Reviews (star rating + number of reviews) E = Engagement (# of times app opened etc.) S = Sales ($) ! !
- 26. ACTIVATION Key metrics to track:! • Pages per visit (2-3+ page views)! • Time on site (10-30+ seconds)! • Conversions (1 key feature usage)! • Clicks (3-5+ clicks)! • Bounce rate (low)! Activation Tips:! • Less is more! • Focus on UX / Usability! ! • Provide incentives & call to actions!! • Perform A/B tests and iterate fast!
- 27. RETENTION Key metrics to track:! • Source (email, RSS, affiliates…)! • Volume (Low spam rating)! • Conversions (20% open rate / CTR)! • Visitor Loyalty (1–3+ visits per month)! • Session Length! • Long customer life cycle / Low decay! • Identify fanatics and cheerleaders! ! !
- 28. RETENTION Retention Tips:! • Email is simple and it works! • But make Unsubscribe easy! • 80% subject line / 20% body text! • Actually… 99% subject line / 1% body text! • Status / “best of” weekly/monthly emails! • “Something happened” emails! • Lifecycle emails @ +3, +7, +30 days ! • RSS / News feeds! • Widgets / Embeds! • Gamification! • Fanatics = Virality + affiliate channels (like bloggers)!
- 29. REFERRAL Key metrics to track:! Viral Growth Factor = X * Y * Z! ! !X = % of users who invite other people! !Y = average # of people that they invited! !Z = % of users who accepted an invitation! A viral growth factor > 1 means an exponential organic user acquisition.! Referral Tips:! • Personal send to friend (Email / IM)! • Social Media! • Widgets / Embeds! • Affiliates!
- 30. REFERRAL
- 31. REVENUE Key metrics to track:! • Conversion to revenue (%)! • Volume ($$$)! Revenue Tips:! • Don’t just rely on AdSense, iAd…! • Offer something free (at least when starting out)! • Subscription / Recurring transactions! • Qualify your customers / Traffic for lead generation.! • Sell somethig (physical or virtual)!
- 32. REVENUE
- 33. How do we improve the funnel?
- 34. Growth Hacking Less Budget, More Creativity, More Automation -> Maximize Output
- 35. As simple as…
- 36. Groupon ACQUISITION! Different landing pages according to traffic source! (Search Engines for SEO –> Footer vs Direct ! Traffic -> No footer)!
- 37. ! Groupon ACTIVATION & RETENTION!
- 39. Groupon REFERRAL! ! Sharing is in Groupon’s DNA
- 41. ! Linkedin RETENTION & REFERRAL!
- 43. Linkedin ACQUISITION & REFERRAL! ! (NOT THE BEST THING TO DO… people can hate you) From Linkedin’s People You May Know page… This person passed away about a year ago. For the majority of her life, she ran a small hardware shop and she barely understood email, let alone LinkedIn.
- 44. Dropbox ACQUISTION! ! Signup driven homepage:
- 45. Dropbox REFERRAL! ! Sharing simplicity and availability on Multiple Devices & Platforms:
- 46. ! Dropbox REFERRAL & REVENUE! Get more space
- 47. ! Dropbox ACQUISTION & REFERRAL! Dropbox Great Space Race!
- 48. Dropbox REFERRAL & REVENUE! ! Dropbox growth hack in numbers… 1. September 2008: 100,000 registered users! 2. January 2010 (15 months later): 4,000,000! 3. Mostly from word-of-mouth and viral:! • 35% of daily signups from referral program! • 20% from shared folders, other viral features! • Sustained 15-20%+ month-over-month growth since launch!
- 49. It doesn’t need to be online (initially)!
- 50. It doesn’t need to be online (initially)!
- 51. It doesn’t need to be online (initially)!
- 53. ACQUISITION!
- 54. ACQUISITION & REFERRAL! PS: I Love You. Get Your Free Email at Hotmail
- 58. ACQUISITION, REFERRAL & REVENUE! Extra tip: Reverse Engineered App Store’s ranking algorithm (approximation)! AppStore Ranking = H + D + R + E + S ! !H = # of installs weighted for the past few hours! !D = # of installs weighted for the past few days! !R = Reviews (star rating + number of reviews)! !E = Engagement (# of times app opened etc.) ! !S = Sales ($)! ! ! Luck? AppStore Bot? Dark pattern?
- 63. REFERRAL!
- 64. REFERRAL!
- 65. REFERRAL!
- 69. REVENUE & PROFIT! Unlock all books is the clear top revenue generator.
- 70. REVENUE & PROFIT! The $144,146,165 Button When cabs were cash only, the average tip was roughly 10%. After the introduction of this system, the tip percentage jumped to 22%. Those three buttons resulted in $144,146,165 of additional tips per year.
- 72. Path Facebook blocked Path’s “Find Friends” access following spam controversy
- 73. Path Path texts your entire phonebook
- 75. Rap Genius: No SEO Genius
- 76. Rap Genius: No SEO Genius Rap Genius fell from around 700,000 uniques a day to around 100,000.!
- 77. Facebook Fraud
- 78. Facebook Fraud
- 79. Tools for metrics analysis …
- 81. Speakers Anna Ruete Entrepreneurship Program Manager – La Salle Technova Barcelona aruete@technovabarcelona.org
- 82. Speakers Pol Valls Soler @polvallssoler Key Account Manager at La Salle Technova Creator of: iOS app for discovering people nearby: joinerapp.com Reddit for spanglish geeks: zumogeek.com pvalls@technovabarcelona.org slideshare.net/polvallssoler
- 83. Speakers Juan Pérez Rodríguez Director – La Salle Technova Barcelona 10 years working with entrepreneurs and investors juanp@technovabarcelona.org