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Actionable Metrics @ Lean Startup Meetup Berlin

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Actionable Metrics @ Lean Startup Meetup Berlin

  1. 1. ACTIONABLE METRICS Are you making your product better or worse? LUKAS FITTL @lfittl spark59.com Lean Startup is trademarked by Eric Ries and used with permission. Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.
  2. 2. About Myself Founded 2 tech startups, worked with many others & Spark59
  3. 3. “Am I making progress into the right direction?”
  4. 4. $$$/users/etc Time
  5. 5. Product/ Market Fit 1. Deliver Value 2. Accelerate Growth
  6. 6. Product/ Market Fit 1. Value 2. Growth
  7. 7. Now June 2013 $2000 / month ? $10000 / month
  8. 8. Cohort Analysis
  9. 9. Cohort: Group of people that share a common characteristic over a period of time.
  10. 10. Track people, not events.
  11. 11. Group users by sign-up date and track their lifecycle.
  12. 12. Cohort Analysis for Retention
  13. 13. Cohort Analysis w Google Analytics http://danhilltech.tumblr.com/post/12509218078/startups-hacking-a-cohort-analysis-with-google
  14. 14. Dave McClure’s AARRR ACQUISITION How do users find you? ACTIVATION Do users have a reat first experience? RETENTION Do users come back? REVENUE How do you make money? REFERRAL Do users tell others?
  15. 15. Now June 2013 $2000 / month ? $10000 / month
  16. 16. Cohort of February 12th, 2013 12500 Unique Visitors / day ACQ 5% sign up 625 signed up ACT 8% activate 50 activated RET 20% stay for 1 week 10 retained REV 20% to paid at $35 2 paid $70 / day $2000 / month
  17. 17. 12500 Uniques 12500 Uniques ACQ 5% sign up 625 10% sign up 1250 ACT 8% activate 50 20% activate 250 RET 20% stay for 1 week 10 20% stay for 1 week 50 REV 20% to paid at $35 2 20% to paid at $35 10 $70 / day $350 / day $2000 / month $10000 / month Now June 2013
  18. 18. 12500 Uniques 12500 Uniques ACQ 5% sign up 625 10% sign up 1250 ACT 8% activate 50 20% activate 250 RET 20% stay for 1 week 10 20% stay for 1 week 50 REV 20% to paid at $35 2 20% to paid at $35 10 $70 / day $350 / day $2000 / month $10000 / month Now June 2013
  19. 19. Delivering Value
  20. 20. Customers need to experience the value, otherwise they will leave.
  21. 21. Value Metrics How do users find you? ACQUISITION Do users have a great first experience? ACTIVATION Do users come back? RETENTION How do you make money? REVENUE Do users tell others? REFERRAL
  22. 22. Who delivers the actual value? Network effect Critical Mass of People vs Marketplace The Right People vs SaaS Your Product
  23. 23. Value Metrics How do users find you? ACQUISITION Do users have a great first experience? ACTIVATION Do users come back? RETENTION How do you make money? REVENUE Do users tell others? REFERRAL
  24. 24. Analyse Feature Usage of both successful & unsuccessful customers
  25. 25. Analyse Time to Complete an Action => Highly useful for targeted email campaign
  26. 26. Week 1 Get email from Visit landing Request Commit to become paying PERSONAS Ash page Demo customer ACQUISITION Technical Founder Provide billing Week 1 Create Account info for 14-day Product Owner trial SIGNUP UPGRADE Get welcome Schedule Week 1 email with link weekly Review docs to docs meetings Establish Map user Week 2 First meeting success metrics actions Send first Send events to Week 3 production staging event ACTIVATION Identify key Baseline AARRR Define Week 4 metric to metrics experiments improve RETENTION
  27. 27. Usability Tests http://www.slideshare.net/JohnnyForeigner/active-testing-sketches-leancamp-bcn
  28. 28. Value Metrics How do users find you? ACQUISITION Do users have a great first experience? ACTIVATION Do users come back? RETENTION How do you make money? REVENUE Do users tell others? REFERRAL
  29. 29. Did Key Activity More than Once “Created at least 3 cards on the Kan-ban board” “Wrote at least 2 blog posts” “Wrote at least 5 restaurant reviews”
  30. 30. Frequency Daily? Weekly? Monthly?
  31. 31. 1-day 52% 7-day 31% 14-day 22% 30-day 14%
  32. 32. Accelerating Growth
  33. 33. Growth Metrics How do users find you? ACQUISITION Do users have a great first experience? ACTIVATION Do users come back? RETENTION How do you make money? REVENUE Do users tell others? REFERRAL
  34. 34. The engine of growth is the mechanism that startups use to achieve sustainable growth. -Eric Ries, The Lean Startup
  35. 35. Sticky Organic Growth > Churn Rate
  36. 36. Paid Lifetime Value > Acquisition Costs
  37. 37. Viral Viral Coefficient > 1.0
  38. 38. Taking Action
  39. 39. Metrics are not a “Task”. ☑ Built a Metrics Dashboard ☐? ☐ Profit!
  40. 40. IDEAS LEARN BUILD DATA PRODUCT MEASURE Experiment
  41. 41. Hypotheses instead of Requirements
  42. 42. Requirement: Users can create 3D avatars.
  43. 43. Hypothesis: We believe that users will create a 3D avatar and spend more time on other users profiles.
  44. 44. Falsifiable Hypothesis: 50% of newly signed up users will create a 3D avatar, Avg time spent on user profiles will go from 30s to 1min+
  45. 45. Validated Learning: Define Hypothesis, Build & Launch Experiment, Learn from the Results
  46. 46. Test your Value Hypothesis first. Unless you need critical mass to deliver value.
  47. 47. Experiment Reports
  48. 48. Planning an Experiment 1. Context - Why is this relevant? 2. Quantify Your Goals 3. Set Scope & Timebox
  49. 49. EXPERIMENT REPORT Title: [TITLE] Author: [NAME] Created: [DATE] Learning Goal Results What are you trying to learn or achieve? Enter the data. Falsifiable Hypothesis Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Validated Learning VALIDATED or INVALIDATED Summarize your learning from the experiment. Experiment Scope How many and/or how long will the experiment last? Minimum Build Plan List the build plan step by step to get your measurement and experiment. Next Action Whatʼs the next experiment? Lean Stack by Spark59.com
  50. 50. EXPERIMENT REPORT Title: [TITLE] Author: [NAME] Created: [DATE] Learning Goal Results What are you trying to learn or achieve? Enter the data. Falsifiable Hypothesis Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Left Side Defines Validated Learning Summarize your learning from the experiment. VALIDATED or INVALIDATED The Experiment Experiment Scope How many and/or how long will the experiment last? Minimum Build Plan List the build plan step by step to get your measurement and experiment. Next Action Whatʼs the next experiment? Lean Stack by Spark59.com
  51. 51. EXPERIMENT REPORT Title: [TITLE] Author: [NAME] Created: [DATE] Learning Goal Results What are you trying to learn or achieve? Enter the data. Falsifiable Hypothesis Your list of statements on the expected outcome of the experiment. Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome] Right Side Validated Learning VALIDATED or INVALIDATED Analyses The Summarize your learning from the experiment. Experiment Scope How many and/or how long will the experiment last? Minimum Build Plan Results List the build plan step by step to get your measurement and experiment. Next Action Whatʼs the next experiment? Lean Stack by Spark59.com
  52. 52. ✘ Failure is good. Validated Learning is our Measurement of Progress.
  53. 53. Kan-ban Board IDEAS Build Measure Learn LEARN BUILD ✓ ✘ DATA PRODUCT MEASURE
  54. 54. Weekly Strategy Meeting
  55. 55. Review Experiments Only In Weekly Meeting Focus On Efficiency In Daily Stand-ups
  56. 56. Review Experiment Results Challenge the Interpretation Kill / Restart overdue Experiments
  57. 57. Thanks! Learn more: j.mp/s59-metrics

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