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Analytics for Startups 
Lars Lofgren, Growth Manager at KISSmetrics
Hit me up 
@larslofgren #KISSwebinar
We’ll cover… 
1 The data problems that startups face 
2 Gateway metrics 
3 4 gateways and the metrics for each 
#KISSwebinar
WATCH WEBINAR RECORDING NOW
I’m not going to spend any 
time on Google Analytics.
How healthy is this business?
It’d be great to track metrics like these: 
1 MRR, Churn, LTV, acquisition cost 
2 Virality, DAU, MAU 
3 Average order value, repurchase rate 
#KISSwebinar 
4 Funnels and conversions
But you don’t have any data yet
Your data is in a constant rate of decay
Your data is messy
Use metrics that measure 
your biggest problem. 
Ignore the rest.
Gateway 
Metrics
When picking metrics, always ask yourself: 
What’s my biggest constraint right 
now and which metric will tell me if 
I’m making progress?
You need to do the right 
things in the right order.
Gateway #1: Is your idea any good?
Your main constraint: 
Ge!ing anyone to care about your 
idea.
Your main metric: 
Get someone to pay or use your 
product regularly.
Bad metrics for this gateway: 
1 Asking people if they’ll pay 
2 AdWords clicks 
3 Beta or waiting list signups 
4 Traffic
Gateway #2: Is your product good enough?
Your main constraint: 
Having a product that’s good enough 
to build a business on.
Your main metric: 
Ask 500 users the Product/Market 
Fit Question
What is the P/M Fit Question? 
How would you feel if you could no 
longer use [your product]? 
1 Very disappointed 
2 Somewhat disappointed 
3 Not disappointed (it isn’t really that useful)
Your goal for the P/M Fit Question: 
At least 40% of users should say 
“Very disappointed.” 
*Sean Ellis and Hiten Shah get credit for this one.
How do you get to the first 500 users/customers? 
Hustle.
The P/M Fit Question isn’t 
perfect, verify with a 
retention metric.
Gateway #3: Can you grow?
Your main constraint: 
Acquiring customers consistently 
from at least one channel.
You have plenty of options to choose from: 
1 Inbound (Google, Content, Social) 
2 Paid (PPC, Affiliates) 
3 Virality (Invites, Referrals)
Pick just one to start 
Work on your channel for at least 3 
months. Assume it’ll work and get 
the resources needed to execute.
Your main metrics: 
Your main business metric and 
acquisition funnel.
Main business metrics: 
1 SaaS: Monthly Recurring Revenue 
2 Ecommerce: Monthly Revenue 
3 Consumer Tech: Monthly Active Users
SaaS Funnel
Ecommerce Funnel
Consumer Tech Funnel
Why not cost per acquisition or lifetime value? 
You have no idea how much it costs 
to acquire customers or how much 
they’ll spend (yet).
Start Your Free KISSmetrics Trial 
LOG IN WITH GOOGLE
Gateway #4: Do you have a stable model?
Your main constraint: 
In order to keep scaling, you need a 
stable model for your business.
Your main metrics: 
Depends entirely on what business 
model you have.
The SaaS Model 
1 LTV is at least 3x acquisition cost 
2 Recover acquisition cost within 12 months 
3 Get monthly churn below 2%
The Ecommerce Model 
1 
2 
3 
It’s all about profit margin.
The Consumer Tech Model 
1 Virality > 1 
2 Usage 3 out of 7 days 
3 30% of users active day a#er signup 
4 Organic growth of 100s signups/day. 
5 Clear path to 100,000+ users 
*Andrew Chen’s “Zero to Product/Market Fit”
Find someone in your 
industry that knows the 
key benchmarks.
Finally, get serious with data.
If you have a sales team, 
pile data into your CRM.
If consumer tech, do 
everything in-house.
Google Analytics plus an 
internal database will take 
you far.
Start with constraints, 
hack together what you 
need to measure them.
How to get data you really need: 
1 One team owns data quality. 
2 Hire a data engineer. 
3 Clean up and integrate your data. 
4 Use customer analytics. 
5 Build a Growth Team.
Q&A Time! 
Lars Lofgren 
@larslofgren 
llofgren@kissmetrics.com

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