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Introduction	to
Pirate	Metrics
Tal	Atzmon
@talatzmon
Why	metrics	are	important
When	you	measure	your	
startup,	you	understand	
what	works	well	and	what	
doesn’t.
You	don’t	hav...
It	relies	on	many	
things	to	be	
optimized
- What does	the	storefront look	
like?
- What	is	the	atmosphere in	the	
restaur...
Instead	of	guessing	why	customers	leave,
use	Pirate	Metrics	to	measure	your	startup
Dave	McClure
Investor
Serial	Entrepreneur
Blogger
Pirate	Metrics	Creator
This	is	YOUR	product
The	Pirate	Metrics
Illustration	via	Ash	Maurya
The	Pirate	Metrics
This	is	YOUR	product
How	do	users	find	you?
Outbound	marketing
TV,	cold	calls,	cold	emails
Inbound mark...
The	Pirate	Metrics
This	is	YOUR	product
User’s	first	good	experience
Identify	the	“Aha!”	Moment
Ran	the	first	test
Reviewe...
The	Pirate	Metrics
This	is	YOUR	product
Get	those	users	to	come	back	
regularly
The	metric	depends	on	your	
application
DA...
The	Pirate	Metrics
This	is	YOUR	product
The	user	pays	you
You	may	want	to	measure:
MRR	/	YRR
Churn	rate
LTV
Illustration	v...
The	Pirate	Metrics
This	is	YOUR	product
Encourage	users	to	refer
…when	they	have	a	positive	
experience!
Referral	mechanis...
Which	Metrics	
Should	You	
Focus	on?
Before	Product/Market	fit
Focus	on	bringing	value	to	your	customers:
Activation &	Retention
Illustration	via	Ash	Maurya
After	Product/Market	fit
Switch	to	Growth.	Measure	&	optimize	the	entire	funnel
Illustration	via	Ash	Maurya
Avoid	Analysis	Paralysis
Focus	on	1-3	Metrics	at	a	time
What	are	good	
metrics?
Accessible
What	does	the	metric	mean	in	the	
context	of	your	product?
Actionable
Can	you	make	a	de...
Example
1050
“Which	social	network	sends	us	the	best	traffic?”
1576
60%
40%
Total	unique	visitors Total	paid	signups Twitter	CR	vs...
Knowing	the	numbers	is	not	enough
We	have	an	Activation	problem!Or	maybe,	we	target	the	wrong
customers?
Examine	the	entire	customer	journey
Resources
Dave	McClure:	Pirate	Metrics
How	to	set	up	AARRR	Pirate	Metrics	in	your	Spreadsheet
A	Beginner’s	Guide	To	Pirate...
Thank	You
@talatzmon
Introduction to Pirate Metrics
Introduction to Pirate Metrics
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Introduction to Pirate Metrics

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There are many methods to measure the success of your business. Pirate metrics is probably the easiest method of all. It defines 5 stages which customers take when they interact with your product. With a clear focus on these five stages, Product Managers could be effective in directing the company using a quantitative data approach that leads to better informed decisions.

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Introduction to Pirate Metrics

  1. 1. Introduction to Pirate Metrics Tal Atzmon @talatzmon
  2. 2. Why metrics are important When you measure your startup, you understand what works well and what doesn’t. You don’t have to guess or make wrong assumptions.
  3. 3. It relies on many things to be optimized - What does the storefront look like? - What is the atmosphere in the restaurant like? - Is the food on the menu appealing? - Do they feel comfortable with the pricing? These are all intersections on the way to purchase food. At any point, a customer may decide to leave and not complete the purchase.
  4. 4. Instead of guessing why customers leave, use Pirate Metrics to measure your startup
  5. 5. Dave McClure Investor Serial Entrepreneur Blogger Pirate Metrics Creator
  6. 6. This is YOUR product The Pirate Metrics Illustration via Ash Maurya
  7. 7. The Pirate Metrics This is YOUR product How do users find you? Outbound marketing TV, cold calls, cold emails Inbound marketing SEO, SEM, blogs, guest posts, webinars, meetups, social media, email marketing Illustration via Ash Maurya
  8. 8. The Pirate Metrics This is YOUR product User’s first good experience Identify the “Aha!” Moment Ran the first test Reviewed the first report It’s easy to fail with Activation Poor onboarding No beginner walkthrough A complex UI Illustration via Ash Maurya
  9. 9. The Pirate Metrics This is YOUR product Get those users to come back regularly The metric depends on your application DAU (whatsapp/Facebook) WAU MAU (accounting app) Illustration via Ash Maurya
  10. 10. The Pirate Metrics This is YOUR product The user pays you You may want to measure: MRR / YRR Churn rate LTV Illustration via Ash Maurya
  11. 11. The Pirate Metrics This is YOUR product Encourage users to refer …when they have a positive experience! Referral mechanism Social media PR Testimonials Blog posts Illustration via Ash Maurya
  12. 12. Which Metrics Should You Focus on?
  13. 13. Before Product/Market fit Focus on bringing value to your customers: Activation & Retention Illustration via Ash Maurya
  14. 14. After Product/Market fit Switch to Growth. Measure & optimize the entire funnel Illustration via Ash Maurya
  15. 15. Avoid Analysis Paralysis Focus on 1-3 Metrics at a time
  16. 16. What are good metrics? Accessible What does the metric mean in the context of your product? Actionable Can you make a decision based on the result? Comparable Compare the metric for a reference Rates or Ratios More valuable than counting absolute numbers
  17. 17. Example
  18. 18. 1050 “Which social network sends us the best traffic?” 1576 60% 40% Total unique visitors Total paid signups Twitter CR vs. Facebook CR Actionable Comparable Rate P
  19. 19. Knowing the numbers is not enough We have an Activation problem!Or maybe, we target the wrong customers?
  20. 20. Examine the entire customer journey
  21. 21. Resources Dave McClure: Pirate Metrics How to set up AARRR Pirate Metrics in your Spreadsheet A Beginner’s Guide To Pirate Metrics A Beginners Introduction To Metrics & Analytics SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters SaaS Metrics 2.0 – Detailed Definitions
  22. 22. Thank You @talatzmon

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