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Define Success through
Actionable Metrics
Jason Fraser
FailCon 2013

LUXR.CO

© October 2013
itemize
Co-Founder

VP Operations

@luxrco

LUXR.CO

© October 2013
1. How many founders at the table?
2. Tell us about your product.
3. Are you tracking metrics now?
4. If so, what are you ...
Metrics Frameworks
Dave McClure’s Metrics for Pirates
Luxr’s Key Product Metrics

LUXR.CO

© October 2013
AARRR!

Acquisition
Activation
Retention
Referral
Revenue
http://igniteshow.com/videos/startup-metrics-pirates-aarrr

LUXR...
Acquisition:
How do People get to Your Product?
High volume channels
Low cost channels
High converting channels

LUXR.CO

...
Activation:
Are User’s Doing something with it?
Engagement with key features
Time on site

LUXR.CO

© October 2013
Retention:
Are They Coming Back?
Frequency of visits
Duration of visits
Increasing depth of engagement

LUXR.CO

© October...
Referral:
Are they telling others?
Twitter
Facebook
Discount codes

LUXR.CO

© October 2013
Revenue:
Are You Making Money?
Revenue per user
Cost per user (acquisition)

LUXR.CO

© October 2013
Luxr’s Key Product Metrics

Find the product and begin using it

Use it
Get something out of it
Use it again
Tell others a...
Pirate
Metrics

Acquisition
Activation
Retention
Referral
Revenue

LUXR.CO

© October 2013

Luxr Key
Product Metrics

Find...
Focus on validating core functionality/value proposition.
Pirate
Metrics

Luxr Key
Product Metrics

Activation
Retention

...
If you nail these, you know that when you
put people into the funnel, they won’t just
fall out the bottom.

LUXR.CO

© Oct...
Prompt:
Write down ten things that you can
measure that will tell you that your
customers are using your product and
exper...
Set up your categories:
Find your
product and
begin to use
it

LUXR.CO

© October 2013

Use it

Get value
from it

Use it
...
Sort into categories
Choose categories based on the most important
role the metric plays in your business

Throw away the ...
You’re left with:

Use it

LUXR.CO

© October 2013

Get value
from it

Use it
again
Choose the best metrics to focus on
Prompt:
If we could drive for excellence in only 3
metrics over the next 30 days, what...
Be careful of vanity metrics!
Any time you see raw numbers (rather than
percentages)
Pageviews!

Context Matters
What migh...
How do we turn vanity metrics into something
of real value?
Raw numbers are meaningless
If the number of people who use a ...
The Lessons:
Use Percentages/Ratios
Track over Time
Put it all together for the best insight:
Actions per user over time

...
Set Goals
Look at the 3 metrics you’ve chosen
What values would make you confident?
What values would cause alarm?

LUXR.CO...
Now you have some goals, and you know what
success will look like. Get going!

LUXR.CO

© October 2013
For workshops on stuff like this, go to

new.luxr.co

LUXR.CO

© October 2013
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Define Success Through Actionable Metrics

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You can't know what failure looks like unless you know how you're defining success. This short workshop will help you figure out if your product is having the effect that you want it to have by defining the core metrics you need to track. Actionable metrics help you to focus on the right things, know whether you're making progress, and see how your product can be improved. We'll take a look at a popular metrics framework (AARRR) and focus on the metrics that help you validate your core value proposition.

Published in: Business, Technology

Define Success Through Actionable Metrics

  1. 1. Define Success through Actionable Metrics Jason Fraser FailCon 2013 LUXR.CO © October 2013
  2. 2. itemize Co-Founder VP Operations @luxrco LUXR.CO © October 2013
  3. 3. 1. How many founders at the table? 2. Tell us about your product. 3. Are you tracking metrics now? 4. If so, what are you tracking? LUXR.CO © October 2013
  4. 4. Metrics Frameworks Dave McClure’s Metrics for Pirates Luxr’s Key Product Metrics LUXR.CO © October 2013
  5. 5. AARRR! Acquisition Activation Retention Referral Revenue http://igniteshow.com/videos/startup-metrics-pirates-aarrr LUXR.CO © October 2013
  6. 6. Acquisition: How do People get to Your Product? High volume channels Low cost channels High converting channels LUXR.CO © October 2013
  7. 7. Activation: Are User’s Doing something with it? Engagement with key features Time on site LUXR.CO © October 2013
  8. 8. Retention: Are They Coming Back? Frequency of visits Duration of visits Increasing depth of engagement LUXR.CO © October 2013
  9. 9. Referral: Are they telling others? Twitter Facebook Discount codes LUXR.CO © October 2013
  10. 10. Revenue: Are You Making Money? Revenue per user Cost per user (acquisition) LUXR.CO © October 2013
  11. 11. Luxr’s Key Product Metrics Find the product and begin using it Use it Get something out of it Use it again Tell others about it Other As in: Q.このさしみはなんですか。 A. ふぐとおもいます。 LUXR.CO © October 2013
  12. 12. Pirate Metrics Acquisition Activation Retention Referral Revenue LUXR.CO © October 2013 Luxr Key Product Metrics Find the product and begin using it Use it Get something out of it Use it again Tell others about it Other
  13. 13. Focus on validating core functionality/value proposition. Pirate Metrics Luxr Key Product Metrics Activation Retention Use it Get something out of it Use it again LUXR.CO © October 2013
  14. 14. If you nail these, you know that when you put people into the funnel, they won’t just fall out the bottom. LUXR.CO © October 2013
  15. 15. Prompt: Write down ten things that you can measure that will tell you that your customers are using your product and experiencing its value. Examples: Average revenue per user Number of shares per week Average time on site (5 Mins) LUXR.CO © October 2013
  16. 16. Set up your categories: Find your product and begin to use it LUXR.CO © October 2013 Use it Get value from it Use it again Tell Others about it Other
  17. 17. Sort into categories Choose categories based on the most important role the metric plays in your business Throw away the outer categories They don’t really tell you if you’re having the impact you want to have LUXR.CO © October 2013
  18. 18. You’re left with: Use it LUXR.CO © October 2013 Get value from it Use it again
  19. 19. Choose the best metrics to focus on Prompt: If we could drive for excellence in only 3 metrics over the next 30 days, what would those three be? Which of these metrics represent the core value of our product? LUXR.CO © October 2013
  20. 20. Be careful of vanity metrics! Any time you see raw numbers (rather than percentages) Pageviews! Context Matters What might be meaningless in one context, could be valuable in another Pageviews! LUXR.CO © October 2013
  21. 21. How do we turn vanity metrics into something of real value? Raw numbers are meaningless If the number of people who use a feature on your site goes from 200 in month 1 to 800 in month 2, that sounds great. But if the number of total users goes from 1000 to 10,000, then your actual percentage of users engaging with that feature has gone down, from 20% to only 8%. Aggregate totals will always go up. If you look at total users for example, that will probably always grow, but looking at total new users in a given period will tell you if you’re actually growing or stalling out. Compare time periods to see the impact of your decisions over time. LUXR.CO © October 2013
  22. 22. The Lessons: Use Percentages/Ratios Track over Time Put it all together for the best insight: Actions per user over time Quantitative analysis sometimes begs Qualitative inquisition. (quant tells you “what”, qual tells you “why”) LUXR.CO © October 2013
  23. 23. Set Goals Look at the 3 metrics you’ve chosen What values would make you confident? What values would cause alarm? LUXR.CO © October 2013
  24. 24. Now you have some goals, and you know what success will look like. Get going! LUXR.CO © October 2013
  25. 25. For workshops on stuff like this, go to new.luxr.co LUXR.CO © October 2013

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