This document discusses the importance of metrics for businesses and provides examples of different types of metrics. It covers: - Why businesses need metrics to monitor health, make decisions, and set focus. - Examples of business, product, and marketing metrics like revenue, daily/monthly active users, click-through rate, cost-per-click. - How to establish success formulas using metrics at the business, product, and marketing levels. - The concept of a metric framework to define key events, tactics to drive those events, and metrics to measure performance for an AARRR strategy. - Important early stage metrics like retention rates and cohort analysis, as well as the idea of a "North

1. Bernard Chan
Setting course
with Metrics

2. I have an app idea.
Should I quit my job and start the startup?

3. I want to promote my product.
Should I advertise on FB or Google?

4. 4
METRICS

5. Why we need metrics?

6. Use of metrics
- Monitor health of business
- Make decision
- Focus (North Star)

7. Use of metrics - Monitoring

8. 8
Make Decision
Opinions are like assholes.
Everybody's got one and
everyone thinks everyone
else's stinks
Let the number speak.
“

9. When making decision, always ask
What’s your objective?

11. 11

12. 12
PerformanceBrand

13. Nature of Metrics
- Quantifiable
- Measurable
- Can be recorded an analyse
Question
Is “weight” a metrics?

14. Nature of Metrics
- Quantity (How Many): No. of Downloads,
Revenue, Daily Active Users (DAU)
- Quality (How well): Click-thru-rate (CTR),
Activation Rate, Margin

15. 15
Establish success formula on 3 levels
1. Business
2. Product
3. Marketing

16. What’s most important on
Business Level?

17. 17
Visits
Conversion per
Visit
Avg Order ValueX X Revenue=
VCAR• E-commerce:
Business level metrics: E-Commerce

18. 18
Business level metrics: Digital Media
Visits
CPM (Yield)
No. of Ad Units per
PageX X
Revenue=
PAYR• Digital Media:
1,000
Avg
Page/VisitX
Pageview

19. Unit economics
Business model (revenue and cost) for a single customer
Examples
ARPU - Average Revenue Per User
LTV - Lifetime value
CAC - Customer acquisition cost

20. LTV
Reference: https://blog.kissmetrics.com/how-to-calculate-lifetime-value/

21. Mark is considering to acquire one of these messenger app:
Whatsapp, Cubie, Snapchat. As Head of M&A you can ask
these companies for 3 metrics. Which would you choose?
Exercise
A. No. of download
B. Valuation
C. No. of messages per user per month
D. No. of messages handled total
E. Monthly revenue
F. Active user growth rate (monthly / quarterly / YoY)
G. No. of monthly active users
Read:
WhatsApp vs. bull-shit metrics
A way to think about Whatsapp staggering price

22. Product Metrics

23. Product Metrics
Product Level Metrics tie directly with the product;
it includes everything that relates to
- Users
- Usage
- Core Product Value

24. 24
Button Click-Thru-Rate (CTR)
No. of Downloads
Daily Active User (DAU)Unique Visitors (UV)
Page Views (PV) Monthly Active Users (MAU)
Retention Rate
Bounce Rate
Session Length
Download-to-Activation (%)
DAU/MAU
Product Metrics examples
2nd Day Retention Rate
Message Sent per User per Day
Total Monthly Post per Month
Sell-thru-rate

25. 25Source: https://blog.kissmetrics.com/bounce-rate/

26. 26
Source: https://blog.kissmetrics.com/bounce-rate/

27. 27Source: https://blog.kissmetrics.com/bounce-rate/

28. What’s most important about
Product Metrics

29. Answers to -
Is our product delivering core product value?
Are our users experiencing our core product
value?

30. Be-careful with numbers
Our app is opened 3,000 times per week.
Lots of users like us!
Question
What’s wrong with this statement?

31. “Measuring busi-ness is far easier
than measuring business”
Seth Godin

32. What to measure?
What’s your core product value?

33. Exercise
You are product manager of mobile marketplace
for 2nd goods. Your revenue model is transaction
fee (%).
What are two most important core product
metrics in first year?

34. Exercise
Phase 1:
• No. of Active Users
• No. of Listings
Phase 2:
• Gross Merchandise Value (GMV)
• Avg. time from listed to sold (hrs)

36. 36
Metrics helps you define whats most important
For Facebook -
“Get any individual to 7 friends in 10 days”
http://www.youtube.com/watch?v=raIUQP71SBU [20:45]
Chamath Palihapitiya
VP of Growth, Facebook

37. 37

38. 3
Marketing Metrics

39. Marketing Metrics
Measure cost and effectiveness of your distribution
channels
In the internet world - we can measure everything

40. 40
Cost-Per-Click (CPC)
Cost-Per-Acquisition (CPA)
Return-on-Investment (ROI)
Cost-Per-Download (CPD)
Cost-Per-Milli (CPM)
Marketing Metrics examples
Return-on-Ads-Spend (ROAS)
Share-of-Voice (SOV)
Click-thru-rate (CTR)
Conversion Rate
No. of Clicks
No. of Conversion
Reach
Frequency

41. 41
Metrics used by most US Marketers (2011)
“Digital marketers today are
drowning in metrics, but they
don’t know which ones are
important or how to connect the
dots in a meaningful way that will
drive marketing performance”

43. Using Marketing Metrics
- What’s my impact / ROI?
- What do I learn about the channel?
- What do I learn about our (potential) users?

44. Exercise
You want to promote your landing page on
Google, Facebook, and Yahoo.
You have SGD 10,000 budget for each channel.
Pricing: CPC
How would you compare their “effectiveness”?

45. Hardest part about startup is
choosing what not to do

46. Vanity vs. Actionable Metrics

47. a16z
http://a16z.com/2015/08/21/16-metrics/16 Startup Metrics
http://a16z.com/2015/09/23/16-more-metrics/16 More Startup Metrics

48. Analytics Tools: Google Analytics

49. Analytics Tools: Hotjar

50. The purpose of metrics
Answer questions -
• Is my business healthy?
• Is my marketing effort (campaign) effective?
• Is my product solving my users’ problem? Delivering value?
Make decisions - how can we do better?
Set your company North Star

51. 3
Metric Framework

52. 52

53. Defining AARRR Strategy
1) Define key events for each AARRR step
2) Define tactics that drive these events
3) Define key metrics to measure performance /
results
Events Tactics Metrics

54. Let’s try this

55. 1) Define key event for each step

56. 1) Define key event for each step
Open an Account
Upload first photo
Upload more
Share on FB
5.99 above 10GB

57. 2) Design tactics that drive these events
Open an Account
Upload first photo
Upload more
Share on FB
5.99 above 10GB
FB ads
Free 10GB + on boarding
auto upload photos
Easy share mechanism
5.99 above 10GB

58. 3) Measure results: metrics
Visitor to Account Opening
conversion rate (%)
Download to
activation (%)
2nd Day Retention
avg. no. of share
per user
Paid users / all users (%)
Free 10GB + on boarding
auto upload photos
Easy share mechanism
5.99 above 10GB
FB ads

59. 59

60. Please design your campaign for

61. Please design your AARRR campaign for Uber
Events Tactics Metrics
In class workshop (30min)

62. 62
You can also
Set Target Conversion % & Estimated Value

63. 63

64. 64

65. 65Source: Metrics for Early Stage Startups by @andreasklinger

66. Early stage: what matters most for growth?
http://startupclass.samaltman.com/ - Lecture #6: Growth [1:45][9:50]

67. User Accounting

68. Retention - users vs. time

69. 69

70. Cohort analysis (measuring retention)
Source: http://creativetraction.com/2014/06/06/cohort-analysis-new-customers-acquisition-costs/

71. Post-product-market fit: how to use metrics?
http://startupclass.samaltman.com/ - Lecture #6: Growth [9:50]
North Star

72. North Star
• The key metric(s) set the goal, purpose, and culture of
your startup
• Let everyone in the company know what is most
important to the company, in turn affect every business
decision, product feature, resource investment, etc.

73. 73
http://startupclass.samaltman.com/courses/lec06/ [11:22]

74. 74

75. 75
Confirmed Registered Users (CRU)

76. 76
Active Confirmed Registered Users (CRU)

77. ~ END ~
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