The document summarizes key concepts from the book "Lean Analytics" by Ben Yoskovitz. It discusses how analytics is the measurement of progress towards business goals and outlines important characteristics of good metrics like being understandable, comparable, and behavior changing. It also describes the lean analytics cycle of finding potential improvements, designing tests to validate hypotheses, measuring results, and iterating. Finally, it discusses different stages of business like empathy, stickiness, virality and revenue that companies need to progress through.

1. Lean Analytics
440 pages in 15 minutes
Ben Yoskovitz
byosko@gmail.com
@byosko

2. Pretty good feedback…

3. But you can’t please everyone…

4. The core of Lean is
iteration

5. Unfortunately,
we’re all liars. (go ahead, admit it, it’s OK)

6. Everyone’s idea is the
best right?!
People love !
this part!!
(but that’s not always !
a good thing)!
This is where things
fall apart.!
No data, no learning.!

7. Analytics is the measurement of
movement towards business goals.

8. Pick one metric that matters to
your business right now.

9. The metric will change over time,
but right now you need to FOCUS.

10. A good metric is:
Understandable
If you’re busy explaining
the data, you won’t be
busy acting on it.
Comparable
Usually comparing a
metric over time. (e.g.
DAU, WAU, MAU)
Ratio or Rate
Turn your comparable
metrics into ratios. (e.g.
DAU/MAU; Signups/
Retention)
Behavior Changing
You know how you’ll
change your business
based on what the
metric tells you.

11. If a metric
won’t
change
how you
behave…
it’s a bad
metric.

12. Lean Analytics Stages

13. What stage are you really at?
Lean Analytics Stages
“Gates” needed to move forward!
Empathy
Stickiness
Virality
Revenue
Scale
You’ve found a real, poorly-met need that a sizeable market
faces.
You’ve figured out how to solve the problem in a way they
will adopt, keep using (and pay for).
Your users and features fuel growth organically and
artificially.
You’ve found a sustainable, scalable business with the right
margins in a healthy ecosystem.

14. What stage are you really at?
Lean Analytics Stages
“Gates” needed to move forward!
Empathy
Stickiness
Virality
Revenue
Scale
You’ve found a real, poorly-met need that a sizeable market
faces.
You’ve figured out how to solve the problem in a way they
will adopt, keep using (and pay for).
Your users and features fuel growth organically and
artificially.
You’ve found a sustainable, scalable business with the right
margins in a healthy ecosystem.
Most startups fail at this stage!

15. Business Models

16. The SaaS Customer
Lifecycle
Customer Acquisition Cost
paid
direct
search
wom
inherent virality
VISITOR
Freemium/trial offer
Enrollment
User
Disengaged User
Cancel
Freemium
churn
Engaged User
Free user
disengagement
Reactivate
Cancel
Trial abandonment rate
Invite Others
Paying Customer
Reactivation rate
Paid
conversion
FORMER USERS
User Lifetime Value
Reactivate
FORMER CUSTOMERS
Customer Lifetime Value
Viral coefficient
Viral rate
Resolution
Support data
Account Cancelled
Billing Info Exp.
Paid Churn Rate
Tiering
Capacity Limit
Upselling
rate
Upselling
Disengaged
Dissatisfied
Trial Over

17. WineExpress A/B test
A
B

18. WineExpress Results
• 41% increase in revenue per
customer! (People bought a lot
more product.)!
• Conversion also went up, but
was secondary in importance.!
Remember the definition of
analytics?!
B

19. Lean Analytics Cycle

20. Lean Analytics Cycle
Draw a new line!
Pivot or!
give up!
Try again!
Success!!
Did we move the
needle?!
Measure the
results!
Make changes in
production!
Design a test!
Hypothesis!
With data:!
find a
commonality!
Without data:
make a good
guess!
Find a potential
improvement!
Draw a line!Pick a OMTM!

21. Once, a leader convinced others!
in the absence of data.!

22. Now, a leader knows what
questions to ask.!

23. Thank you
Ben Yoskovitz!
byosko@gmail.com!
@byosko!
Alistair Croll!
acroll@gmail.com!
@acroll!