Paul Orlando@porlandoThe Early Stage Venture Survival SeriesPart 3 – What Metrics Matter
3-month accelerator forMobile Startups3-month “pre-accelerator”for Tech StartupsLean Startup BootcampStartupsUnplugged.com...
MVP technique What it isIn-person Interviews Talk to people to learn about them and theirproblemsLanding Page / Adwords Us...
What is a Vanity Metric?(And how do I increase mine?)
Users
Active UsersUsers Users
Users UsersAcquisition Cost
DailyUsersEvent
DailyUsersDailyUsersEvent Event
"The Matrix is the world that has been pulledover your eyes to blind you from the truth.”"Unfortunately, no one can be tol...
A/B Tests or Split TestsFunnelsCohort MetricsViral Coefficients
Actionable, Auditable, AccessibleLife Time ValueGrowth Rate…(is there anything else?)Determine your metricsUse few toolsTr...
The A / B Test or Split Test
There are 41 Shades of Blue?
All Google Sites Advertising Revenue (2008): US$14.4BAn increase of 0.1% = US$14M in extra revenue
Conversion Funnel – where do you focus?AcquisitionAcquisitionActivationActivationRetentionRetentionRevenueRevenueReferralR...
M1 M2 M3 M4 M5 M6 M7 M8Jan 100% 20% 12% 8% 6% 5% 3% 2%Feb 100% 31% 16% 13% 10% 7% 5%Mar 100% 35% 22% 19% 14% 11%Apr 100% 4...
Viral CoefficientBut don’t forget cycle time.Invitation Rate x Conversion Rate(invites sent per user) (% invited users who...
Metric technique What can go wrongSplit TestingA / B TestingIncremental improvements. Youoften can’t split test your way t...
What metrics matterFor a Community Site…?For a Ecommerce Site…?For a Subscription Service…?If you want to sell advertising...
A way forward.Figure out which metrics matter for you.Use only a few tools.Look at the whole picture -- metrics can mislea...
Paul Orlando@porlando
Early Stage Venture Series - part 3
Early Stage Venture Series - part 3
Early Stage Venture Series - part 3
Early Stage Venture Series - part 3
Early Stage Venture Series - part 3
Early Stage Venture Series - part 3
Upcoming SlideShare
Loading in …5
×

Early Stage Venture Series - part 3

458 views

Published on

This is part three of a talk series for early-stage startups. There are a lot of examples used in the talk that don't come out if you only view the slides. But here it is for the attendees. Updates provided at: startupsunplugged.com

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
458
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Early Stage Venture Series - part 3

  1. 1. Paul Orlando@porlandoThe Early Stage Venture Survival SeriesPart 3 – What Metrics Matter
  2. 2. 3-month accelerator forMobile Startups3-month “pre-accelerator”for Tech StartupsLean Startup BootcampStartupsUnplugged.com/bootcamp AcceleratorHK.comOther experimental projects in HK:WeAreHKtech.com
  3. 3. MVP technique What it isIn-person Interviews Talk to people to learn about them and theirproblemsLanding Page / Adwords Use a description to test actions from lots ofpeopleMockup / Wireframe Paper or digital non-functioning iterations totest reactions“Parasite” Ride on top of an existing network to speed updata collectionConcierge People do work of not yet built systemVideo Show what it’s like to use itPrototype Actually build a basic version
  4. 4. What is a Vanity Metric?(And how do I increase mine?)
  5. 5. Users
  6. 6. Active UsersUsers Users
  7. 7. Users UsersAcquisition Cost
  8. 8. DailyUsersEvent
  9. 9. DailyUsersDailyUsersEvent Event
  10. 10. "The Matrix is the world that has been pulledover your eyes to blind you from the truth.”"Unfortunately, no one can be told what theMatrix is. You have to see it for yourself."MetricMetric
  11. 11. A/B Tests or Split TestsFunnelsCohort MetricsViral Coefficients
  12. 12. Actionable, Auditable, AccessibleLife Time ValueGrowth Rate…(is there anything else?)Determine your metricsUse few toolsTry to improve the results
  13. 13. The A / B Test or Split Test
  14. 14. There are 41 Shades of Blue?
  15. 15. All Google Sites Advertising Revenue (2008): US$14.4BAn increase of 0.1% = US$14M in extra revenue
  16. 16. Conversion Funnel – where do you focus?AcquisitionAcquisitionActivationActivationRetentionRetentionRevenueRevenueReferralReferral
  17. 17. M1 M2 M3 M4 M5 M6 M7 M8Jan 100% 20% 12% 8% 6% 5% 3% 2%Feb 100% 31% 16% 13% 10% 7% 5%Mar 100% 35% 22% 19% 14% 11%Apr 100% 43% 24% 20% 18%May 100% 52% 29% 24%Jun 100% 55% 33%Jul 100% 57%Cohort Metrics
  18. 18. Viral CoefficientBut don’t forget cycle time.Invitation Rate x Conversion Rate(invites sent per user) (% invited users who take action)
  19. 19. Metric technique What can go wrongSplit TestingA / B TestingIncremental improvements. Youoften can’t split test your way toinsightFunnel Not knowing which parts drive yourbusinessCohort Metrics Not tracking eventsViral Coefficient When does it matter? Cycle speedIn general Forgetting different metrics matter atdifferent development stagesIn general Thinking that metrics matter morethan they do
  20. 20. What metrics matterFor a Community Site…?For a Ecommerce Site…?For a Subscription Service…?If you want to sell advertising…?If you have a Freemium model…?If you want to monetize customer data…?
  21. 21. A way forward.Figure out which metrics matter for you.Use only a few tools.Look at the whole picture -- metrics can mislead.Remember revenue & growth drive most things.Learn from others (Case Studies).
  22. 22. Paul Orlando@porlando

×