This document discusses strategies for using metrics effectively. It recommends: 1. Avoiding "vanity metrics" that don't reflect business progress, like page views or followers, and instead using "actionable metrics" tied to specific actions and results, like customer lifetime value or churn. 2. Analyzing "unit economics" like acquisition, activation, retention, revenue and referral rates for customer cohorts over time to understand business fundamentals. 3. Giving metrics "power" by creating a continuous feedback loop, focusing on customer needs over features, and making metrics actionable, accessible and auditable.

1. david@citrusbyte.com

2. MOST PRODUCTS FAIL
RAISED LOTS OF MONEY TONS OF USERS HIGH TRANSACTION VOLUME

5. On September 22nd, 2015 Quirky Declared Bankruptcy

6. What can we learn from looking
at companies like Quirky?

7. How can you chart the unknown
territory of innovation?

8. How do todays growth companies
use metrics to stay ahead?

9. DATA STRATEGIES
The right data strategy is
transformative for your product,
people, and business

10. 1. Avoid “Vanity” Metrics
DATA STRATEGY

11. SYMPTOM 1
VANITY METRICS
Vanity metrics are designed
to make you feel good

12. SYMPTOM 2
VANITY METRICS
Vanity metrics are not tied
closely to business progress

13. SYMPTOM 3
VANITY METRICS
Vanity metrics are typically
defined as raw numbers

14. The problem with vanity metrics:
Image from https://blog.kissmetrics.com/throw-away-vanity-metrics/

18. Vanity metrics examples:
• Pageview count
• Website hit count
• Total registered users
• Number of unique visitors
• Number of followers/friends/likes
• Time on site/number of pages
• Emails collected
• Total downloads

19. Who do we measure meaningful
and actionable information?

20. 2. Use “Actionable” Metrics
DATA STRATEGY

21. ACTIONABLE METRICS
Actionable metrics tie
specific and repeatable
actions to observed results

22. SYMPTOM 1
ACTIONABLE METRICS
Actionable metrics are
commonly represented using
funnels, cohorts, or A/B testing

23. SYMPTOM 2
ACTIONABLE METRICS
Actionable metrics are high level
enough to point in the direction
of a problem (but not solve it)

25. Actionable metrics examples:
Metric Types:
• A/B Testing
• Per-customer metrics
• Cohort analysis
• Funnel analysis
Examples:
• Customer Lifetime Value
• Customer Acquisition Cost (paid/
blended)
• Active Users (per time period)
• Churn
• Month-on-month growth

26. Vanity Metrics Actionable MetricsVS
• Raw numbers like page views
• Don’t represent business
progress
• Don’t represent customer
value
• Tie actions to results
• Per-customer or cohort
• Often represent value
creation

27. How can you start small today?

28. 3. Unit Economics
DATA STRATEGY

29. What are unit economics?

30. Pirate metrics
Acquisition
Activation
Retention
Revenue
Referral
How do users find you?
Do users have a great first
experience?
Do users come back?
How do you make money?
Do users tell others?

31. Cohort Analysis
Retention (50) Retention (100)
Acquisition (1000)
Activation (300)
Revenue (10)
Referral (5)
Acquisition (1000)
Activation (300)
Revenue (20)
Referral (10)
Acquisit
Activatio
Retentio
Revenu
Referra
Week 1 Week 2 Week

32. Simple & Easy to Track

33. 4. Give Metrics Power
DATA STRATEGY

34. 1. Create a build-measure-learn loop
Image from http://leanstack.com/how-we-use-lean-stack-for-innovation-accounting/

35. 2. Take a step back from features

36. 2. Take a step back from features
Ideas to increase customer engagement

37. 3. Use the three “A’s”
Actionable
Accessible
Auditable

38. 1. Avoid “Vanity” Metrics
2. Use “Actionable” Metrics
3. Unit Economics
4. Give Metrics Power