The document discusses measuring success in startups, emphasizing the importance of understanding product/market fit and cohort analysis. It outlines key metrics for evaluating progress, such as user growth, revenue, and customer lifetime value, while urging honesty in assessments. The overarching message encourages startups to improve their offerings before focusing on scaling their user base.

1. Measuring success: Cohorts and
Product/Market Fit
a.k.a WTF are we doing and why!?
@stephenrapoport | Crashpadder.com | @londonFAIL

2. A bit about me
• Founder - Crashpadder.com (Sold to Airbnb)
• Organiser – Failboat London
http://www.meetup.com/Failboat-London/
@stephenrapoport | Crashpadder.com | @londonFAIL

3. Summary
• What is a startup?
• What is your startup?
• How do most measure success?
• How should you measure success?
• Corhort analysis?
@stephenrapoport | Crashpadder.com | @londonFAIL

4. What is a startup?
• “Organisation trying to create value in an
environment of extreme uncertainty.”
• Eric Ries, The Lean Startup
If you’re a disruptive startup, uncertainty is x10:
– Product fit
– Model
– Value Hypothesis
@stephenrapoport | Crashpadder.com | @londonFAIL

5. What are you doing?
• Name?
• Model/elevator?
• Stage?
• Founders – Tech/Commercial/Other
@stephenrapoport | Crashpadder.com | @londonFAIL

6. Measuring progress
What is usual?
• Users
• Revenue
• Basket value
• Dwell/stickiness
@stephenrapoport | Crashpadder.com | @londonFAIL

7. What are you measuring?
Who’s feeling brave?
Be honest – NOT what should you be measuring.
@stephenrapoport | Crashpadder.com | @londonFAIL

8. Measuring progress
Revenue
140
What does this actually
tell us about the
120 company’s growth?
100
80
What might better
60 metrics be?
40
20
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
@stephenrapoport | Crashpadder.com | @londonFAIL

9. Product/market fit
“Being in a good market with a product that
satisfies the needs of that market.”
- Marc Andreessen
Users
3500
3000
2500
2000
1500 Users Aka ‘The Hockey Stick’
1000
500
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
@stephenrapoport | Crashpadder.com | @londonFAIL

10. Problem/solution hypothesis
• Who is this for?
• What pain are you solving?
• What is their current solution?
• Why is yours better?
• Do they care?
@stephenrapoport | Crashpadder.com | @londonFAIL

11. What should you be measuring?
• Lifetime value of new users
• How has that changed since new features
were added?
• Is our problem/solution hypothesis holding
true?
@stephenrapoport | Crashpadder.com | @londonFAIL

12. What is the user’s value chain?
Track the lifetime journey of one of your users.
• Register?
• Transact?
• Review?
• Share on social networks?
• Refer/Resell?
@stephenrapoport | Crashpadder.com | @londonFAIL

13. Cohorts
Segmenting your users as a means to assess
whether you are getting better rather than
simply bigger.
- Dan Hill, Technical Ninja @ Crashpadder.com
@stephenrapoport | Crashpadder.com | @londonFAIL

14. E.g. Cohort Analysis
250
200
150
Jan
Feb
100 Mar
50
0
Visit Register Purchase Recommend
@stephenrapoport | Crashpadder.com | @londonFAIL

15. Summary
Get BETTER, then get BIGGER
(whilst still getting better…..)
@stephenrapoport | Crashpadder.com | @londonFAIL