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Lean Analytics
Lean Product & Lean UX Silicon Valley - July 2014
Hiten Shah
hnshah@gmail.com
Download the slides: h p://kiss.ly/leanprod2014
Continuous Learning & Improvement
Don’t know where to start?
Wondering if you’re working on the right things?
Or, you just want to hear me babble!
HTTP://KISS.LY/LEANLYTICSBOOK
Lean Analytics helps you Optimize for Learning
Lean Analytics Cycle
AVINASH KAUSHIK HTTP://KISS.LY/LEANAC
Metrics	
  →	
  Hypothesis	
  →	
  Experiment	
  →	
  Act
HTTP://HELLOBAR.COM
What is Hello Bar?
 Metrics	
  
	
  Figure	
  out	
  what	
  to	
  improve	
  
	
  Hypothesis	
  
	
  Make	
  an	
  educated	
  guess	
  
	
  	
  
	
  Experiment	
  
	
  Test	
  your	
  guess	
  
	
  Act	
  
	
  Decide	
  what’s	
  next
Our funnel showed a low installation rate
Hello Bar Funnel Metrics
Steps Visitors Homepage
URL Entries
Created
First Bar
Completed
Registration
Installed
Totals 15068 1868 716 688 398
% prev step 12.40% 38.33% 96.09% 57.85%
% drop off -87.60% -61.67% -3.91% -42.15%
% of visitors 100% 12.40% 4.75% 4.57% 2.64%
We	
  achieved	
  a	
  40%	
  increase	
  for	
  our	
  
installa2on	
  rate	
  with	
  just	
  this	
  one	
  
first	
  experiment.
The Lean Analytics Cycle At Work
Original Hello Bar installation screen
 Metrics	
  
	
  Figure	
  out	
  what	
  to	
  improve	
  
	
  Hypothesis	
  
	
  Make	
  an	
  educated	
  guess	
  
	
  	
  
	
  Experiment	
  
	
  Test	
  your	
  guess	
  
	
  Act	
  
	
  Decide	
  what’s	
  next
Find out why people don’t install Hello Bar
Didn’t Meet My Expectations
I Had Trouble Installing It
I Don’t Have A Website
Not Ready To Install
Other
Hello Bar Experiment Hypothesis
If	
  more	
  installa2on	
  op2ons	
  are	
  given,	
  
then	
  more	
  people	
  will	
  add	
  Hello	
  Bar	
  
to	
  their	
  website	
  due	
  to	
  the	
  need	
  for	
  a	
  
WordPress	
  plugin	
  and	
  ability	
  to	
  email	
  
the	
  code	
  to	
  someone	
  else.
 Metrics	
  
	
  Figure	
  out	
  what	
  to	
  improve	
  
	
  Hypothesis	
  
	
  Make	
  an	
  educated	
  guess	
  
	
  	
  
	
  Experiment	
  
	
  Test	
  your	
  guess	
  
	
  Act	
  
	
  Decide	
  what’s	
  next
Created a new flow to test
I can install code myself.
41.67% responded with “WordPress Plugin”
25% responded with “email my developer / web designer”
I need help.
 Metrics	
  
	
  Figure	
  out	
  what	
  to	
  improve	
  
	
  Hypothesis	
  
	
  Make	
  an	
  educated	
  guess	
  
	
  	
  
	
  Experiment	
  
	
  Test	
  your	
  guess	
  
	
  Act	
  
	
  Decide	
  what’s	
  next
Full funnel metrics for the experiment
Variation
Steps Visitors Homepage
URL Entries
Created
First Bar
Completed
Registration
Installed
Totals 7456 906 342 329 276
% prev step 12.15% 37.75% 96.20% 83.89%
% drop off -87.85% -62.25% -3.80% -16.11%
% of visitors 100% 12.15% 4.59% 4.41% 3.70%
Control
Steps Visitors Homepage
URL Entries
Created
First Bar
Completed
Registration
Installed
Totals 7469 925 353 341 197
% prev step 12.38% 38.16% 96.60% 57.77%
% drop off -87.62% -61.84% -3.40% -42.23%
% of visitors 100% 12.38% 4.73% 4.57% 2.64%
Resulted in a 30% installation rate increase
HTTP://ISVALID.ORG
Experiment resulted in a 40% improvement
ACer	
  a	
  dozen	
  more	
  experiments,	
  our	
  
installa2on	
  rate	
  is	
  now	
  hovering	
  
between	
  5%	
  and	
  7%	
  
That’s	
  an	
  addi;onal	
  89%	
  increase!!!
The Lean Analytics Cycle At Work
Metrics	
  →	
  Hypothesis	
  →	
  Experiment	
  →	
  Act
How You Can Put It Into Practice
Metrics	
  
Figure	
  out	
  what	
  to	
  improve
“What gets measured, gets managed.” Peter Drucker
Baselines
DATA DNA EBOOK HTTP://KISS.LY/OPTDATADNA
Funnels
KISSMETRICS FUNNEL REPORT HTTP://KISS.LY/KMFUNNEL
SaaS Funnel
KISSMETRICS FUNNEL REPORT HTTP://KISS.LY/KMFUNNEL
eCommerce Funnel
KISSMETRICS FUNNEL REPORT HTTP://KISS.LY/KMFUNNEL
Revenue
BUFFER BAREMETRICS HTTP://KISS.LY/BUFFERBARE
Spreadsheets and Calculations
HELLOBAR HTTP://HELLOBAR.COM
Steps Visitors Homepage
URL Entries
Created
First Bar
Completed
Registration
Installed Created
Second Bar
Totals 15068 1868 716 688 398 193
% prev step 12.40% 38.33% 96.09% 57.85% 48.49%
% drop off -87.60% -61.67% -3.91% -42.15% -51.51%
% of visitors 100% 12.40% 4.75% 4.57% 2.64% 1.28%
Hypothesis	
  
Make	
  an	
  educated	
  guess
“A solid test hypothesis is an informed solution to
a real problem – not an arbitrary guess. The more
research and data you have to base your
hypothesis on, the be er it will be.”

— Michael Aagaard, h p://kiss.ly/abthypo
Research	
  
Tools	
  &	
  Tac;cs
Customer Development
HTTP://WWW.CUSTDEV.COM
Jobs To Be Done #JTBD
HTTP://JOBSTOBEDONE.ORG
Usability Testing
HTTP://USERTESTING.COM
Live Chat
HTTP://OLARK.COM
Mouse Tracking
HTTP://CRAZYEGG.COM
Long Form Surveying
HTTP://SURVEYMONKEY.COM
On-Page Surveying
HTTP://QUALAROO.COM
Personalized Messaging
HTTP://INTERCOM.IO
Email a survey to people
HTTP://SURVEYMONKEY.COM
Ask people why they canceled
HTTP://SURVEYMONKEY.COM
Get feedback right when they cancel
Exit Surveys
HTTP://QUALAROO.COM
Discover what’s missing
HTTP://QUALAROO.COM
Find out what words people use to describe your product
HTTP://QUALAROO.COM
Learn about people’s expectations
HTTP://INTERCOM.IO
Learn what frustrates people
HTTP://INTERCOM.IO
More actionable reading…
QUALITATIVE DATA HTTP://KISS.LY/QUALABT
Experiment Hypothesis Formula
DATA DNA EBOOK HTTP://KISS.LY/OPTDATADNA
Experiment	
  
Test	
  your	
  guess
Only	
  1	
  out	
  of	
  5	
  tests	
  win.
4	
  out	
  of	
  5	
  tests	
  
cost	
  you	
  money.
$
1)	
  Which	
  top	
  metric	
  are	
  we	
  trying	
  to	
  improve?	
  
2)	
  What	
  can	
  you	
  anchor	
  your	
  metric	
  against?	
  
3)	
  What	
  is	
  your	
  hypothesis	
  about	
  why	
  this	
  metric	
  is	
  at	
  x%?	
  
4)	
  What	
  do	
  we	
  expect	
  from	
  this	
  experiment?	
  
5)	
  What	
  was	
  the	
  result	
  and	
  what	
  did	
  we	
  learn	
  from	
  it?
HTTP://KISS.LY/6QSAB
Answer key questions for each experiment
Prioritize your experiments
HTTP://KISS.LY/ABPIE
Don’t copy “best practices” blindly
Learn what works best for you
Act	
  
Decide	
  what’s	
  next
Explore	
  the	
  results	
  and	
  make	
  
data	
  informed	
  decisions.
THE ANALYTICS THAT MATTER TO FACEBOOK HTTP://KISS.LY/FBINFORM
KISSmetrics A/B Testing Report
KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
We know that people love Google Analytics
KISSmetrics Experiment Hypothesis
If	
  people	
  authen2cate	
  with	
  Google,	
  
then	
  more	
  people	
  will	
  sign	
  up	
  due	
  to	
  
their	
  exis2ng	
  familiarity	
  with	
  Google	
  
Analy2cs	
  and	
  alignment	
  with	
  our	
  
winning	
  headline.
KISSmetrics Homepage Test Control
KISSmetrics Homepage Test Variation
KISSmetrics Homepage Test Signup Conversion Rate
KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
KISSmetrics Homepage Test Received Data
KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
KISSmetrics Homepage New Control
Inspiration
KISSmetrics Homepage New Test Variation
KISSmetrics Homepage Test Signup Conversion Rate
KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
KISSmetrics Homepage Test Received Data
KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
Growth!
HTTP://KISSMETRICS.COM
 Metrics	
  
	
  Figure	
  out	
  what	
  to	
  improve	
  
	
  Hypothesis	
  
	
  Make	
  an	
  educated	
  guess	
  
	
  	
  
	
  Experiment	
  
	
  Test	
  your	
  guess	
  
	
  Act	
  
	
  Decide	
  what’s	
  next
Hiten Shah
hnshah@gmail.com
@hnshah
You will get all you want in life if you help enough
other people get what they want.
Zig Ziglar
Download the slides: h p://kiss.ly/leanprod2014

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