The document discusses lean startup methodology and achieving product-market fit. It emphasizes that product-market fit is a process, not a single event. It also stresses the importance of using data and metrics to guide decisions and measure progress towards product-market fit over time. Key metrics mentioned include customer acquisition cost, monthly recurring revenue, churn, and the financial impact of metrics.

1. The data-driven
startup
Simon.Belak@hekovnik.si
@sbelak

2. The Lean startup

3. ⥁learn
Lean!
cycle
measure build
hypothesis testing

4. Lean Goals / Milestones
Product Market Fit
t
Users, $
Scale Up Model
Business Model
Metrics (Acquisition, Activation,
Conversion, Retention, Viral, Referral,...)
MVP launch
Problem - Solution Fit
Customer Interviews
Landing Page
Problem - Segment
www.hekovnik.com This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/

5. Achieving product-market
fit is not a singular event,
but a process.

6. Shifting search space

8. market
customers
company

9. process is always about
time dynamics

10. Market Stage
2,5% 13,5% 34% 34% 16%
www.hekovnik.com | Source: Joe Betts-LaCroix This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/

11. market analytics product analytics
target typical

12. Market Plan
(problem-market fit)
EUR
Why now
TAM
SOM
SOM
TAM
t
1st year 2nd year 3rd year
www.hekovnik.com | Source: Hekovnik This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/

13. Measuring
product-market
fit

14. Financial Cohort
Monthly Return Rate
MRR
MRC
CAC
LT
Lifetime
Monthly Recurring Cost ROI - Return On Investment:
LTV - Customer Lifetime Value:
MRR
30
20
10
-10
-20
-30
-40
CAC
LT
Lifetime
2 3 4 5 6 7 8 9 10 11 12
110%
84 €
ROI - Return On Investment:
CLV - Customer Lifetime Value:
MRR
30
20
10
-10
-20
-30
-40
CAC
Lifetime
2 3 4 5 6 7 8 9 10 11 12
460%
224 €
ROI - Return On Investment:
CLV - Customer Lifetime Value:
Free Trial
MRC MRC
LT
MRRn
30
20
10
CACn
www.hekovnik.com | Source: Hekovnik Startup School This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/
LT
Lifetime
ROI - Return On Investment:
CLV - Customer Lifetime Value:
-10
-20
-30
-40
2 3 4 5 6 7 8 9 10 11 12
460%
224 €
MRCn
Customer Acquisition Cost
1 1 1

15. 250000
200000
150000
100000
50000
0
-50000
-100000
50000
40000
30000
20000
10000
0
May-14
-10000
-20000
Jul-14
Sep-14
Jan-15
Nov-14
Jul-15
Sep-15
Mar-15
May-15
Jan-16
Nov-15
Jul-16
Sep-16
Mar-16
May-16
Jan-17
Nov-16
Jul-17
Sep-17
Mar-17
May-17
Jan-18
Nov-17
Jul-18
Sep-18
Mar-18
May-18
Jan-19
Nov-18
Jul-19
Sep-19
Mar-19
May-19
kumulative difference
monthly KPIs
New Users
churn
CAC
MRR
MRC
monthly COST
monthly difference
kumulative difference

16. Good metrics
Are Actionable ] optimize
Can be Audted
Are Accessible ]! understand!
An actionable metric is one that ties!
specific and repeatable actions !
to observed results.!
—Ash Maurya!

17. becoming
data driven

18. incorporating
real-time
data
into everyday
decision
making

20. Only a continues stream
of data captures time
dynamics.

22. 64%
companies interested
in predictive analytics 8%!
deployed
profitability by 2017 from
+20 using predictive analytics %
http://www.gartner.com/newsroom/id/2593815

23. Achieving
product-market
fit
(with data)

24. Market map - problem
problems
segments
problem no. 1 problem no. 2 problem no. 3 problem no. 4 problem no. n
segment name no. 1 specificities and aspects
barrier
level
pain
level
segment name no. 2
segment name no. 3
www.hekovnik.com | Source: Hekovnik This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/

25. Market map - problem
problems
segments
problem no. 1 problem no. 2 problem no. 3 problem no. 4 problem no. n
segment name no. 1 specificities and aspects
barrier
level
pain
level
segment name no. 2
segment name no. 3
www.hekovnik.com | Source: Hekovnik This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/

26. Max
Customer
Acquisition Cost
User Value
t
$

27. The Five Levels of Selling Points
Core Value Proposition
Unique Selling Proposition
Benefits
Features
Problems
www.hekovnik.com | Source: Hekovnik This work is licensed under http://creativecommons.org/licenses/by-sa/3.0/

32. Problem

33. Problem
The limits of bottom-up
approach

34. The cornerstone
metric

35. segmentation
clustering

36. segmentation
clustering

37. Of humans and
machines

39. Making the world legible
visualisation
process
machine human

40. ⥁learn
Lean!
cycle
measure build

41. ⥁learn
⥁ human machine
measure build
learn
measure build

42. New breed of KPIs

43. Hekovnik’s dirty little secret:
We’re actually in the
reverse engineering
business.