Actionable Metrics Session

For Seedcamp Onboarding Week in May 2013.

Transcript

1. Are you making your product better or worse? LUKAS FITTL @lfittl spark59.com ACTIONABLE METRICS Lean Startup is trademarked by Eric Ries and used with permission. Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA. Thursday, 23 May 2013
2. About Myself & Spark59 Founded 2 tech startups, worked with many others Thursday, 23 May 2013
3. Thursday, 23 May 2013
4. “Am I making progress into the right direction?” Thursday, 23 May 2013
5. $$$/users/etc Time Thursday, 23 May 2013
6. Product/ Market Fit 1. Deliver Value 2. Accelerate Growth Thursday, 23 May 2013
7. Product/ Market Fit 1. Value 2. Growth Thursday, 23 May 2013
8. Product/Market Fit: The moment when you can consistently deliver value to the right people. Thursday, 23 May 2013
9. Focus on Outcome, not Tasks. Thursday, 23 May 2013
10. Make Customers Happy Make Happy Customers Thursday, 23 May 2013
11. $10000 / month $2000 / month Now June 2013 ? Thursday, 23 May 2013
12. Break Revenue Targets, down into Unit Economics. Thursday, 23 May 2013
13. Dave McClure’s AARRR ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL How do users find you? Do users have a reat first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
14. $2000 / month ACQ ACT 20% to paid at $35 RET REV 20% stay for 1 week 8% activate 5% sign up 2 paid $70 / day 10 retained 50 activated 625 signed up 12500 unique visitors Each Day: Thursday, 23 May 2013
15. Cohort Analysis Thursday, 23 May 2013
16. Cohort: Group of people that share a common characteristic over a period of time. Thursday, 23 May 2013
17. Thursday, 23 May 2013
18. Track people, not events. Thursday, 23 May 2013
19. Group users by sign-up date and track their lifecycle. Thursday, 23 May 2013
20. Thursday, 23 May 2013
21. Thursday, 23 May 2013
22. Thursday, 23 May 2013
23. Cohort Analysis for Retention Thursday, 23 May 2013
24. Thursday, 23 May 2013
25. $10000 / month $2000 / month Now June 2013 ? Thursday, 23 May 2013
26. $2000 / month ACQ ACT 20% to paid at $35 RET REV 20% stay for 1 week 8% activate 5% sign up 2 paid $70 / day 10 retained 50 activated 625 signed up 12500 Unique Visitors / day Cohort of February 12th, 2013 Thursday, 23 May 2013
27. $2000 / month Now ACQ ACT 20% to paid at $35 RET REV 20% stay for 1 week 8% activate 5% sign up $70 / day 12500 Uniques $10000 / month June 2013 20% to paid at $35 20% stay for 1 week 20% activate 10% sign up $350 / day 12500 Uniques 2 10 50 625 10 50 250 1250 Thursday, 23 May 2013
28. $2000 / month Now ACQ ACT 20% to paid at $35 RET REV 20% stay for 1 week 8% activate 5% sign up $70 / day 12500 Uniques $10000 / month June 2013 20% to paid at $35 20% stay for 1 week 20% activate 10% sign up $350 / day 12500 Uniques 2 10 50 625 10 50 250 1250 Thursday, 23 May 2013
29. Delivering Value Thursday, 23 May 2013
30. Customers need to experience the value, otherwise they will leave. Thursday, 23 May 2013
31. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
32. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
33. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
34. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
35. Network effect vs Marketplace vs SaaS Who delivers the actual value? Critical Mass of People The Right People Your Product Thursday, 23 May 2013
36. [ Exercise ] How do you deliver your Initial Value? Thursday, 23 May 2013
37. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
38. Feature Usage of successful & unsuccessful customers Thursday, 23 May 2013
39. Time to Complete Useful for Email Campaigns! Thursday, 23 May 2013
40. Request Demo Commit to become paying customer Visit landing page Create Account Provide billing info for 14-day trial Get welcome email with link to docs Schedule weekly meetings Review docs Establish success metrics Map user actions Send first production event ACTIVATION SIGNUP ACQUISITION Baseline AARRR metrics Identify key metric to improve Define experiments First meeting UPGRADE RETENTION Send events to staging Day 1 Day 2 Day 3 Week 2 Week 3 Week 4 Customer Journey Maps Thursday, 23 May 2013
41. Usability Tests http://www.slideshare.net/JohnnyForeigner/active-testing-sketches-leancamp-bcn Thursday, 23 May 2013
42. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Value Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
43. Did Key Activity More than Once “Created at least 3 cards on the Kan-ban board” “Wrote at least 2 blog posts” “Wrote at least 5 restaurant reviews” Thursday, 23 May 2013
44. Customer Happiness Index (CHI) Created Blog Post = 5 Points Shared Post on Twitter = 10 Points Visited Site = 0.1 Points Sum together per User in Ranked List & Reset Each Week Visualises your Power Users Thursday, 23 May 2013
45. 1-day 52% 7-day 31% 14-day 22% 30-day 14% Thursday, 23 May 2013
46. Thursday, 23 May 2013
47. Accelerating Growth Thursday, 23 May 2013
48. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Growth Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
49. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Growth Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
50. ACQUISITION ACTIVATION RETENTION REVENUE REFERRAL Growth Metrics How do users find you? Do users have a great first experience? Do users come back? How do you make money? Do users tell others? Thursday, 23 May 2013
51. The engine of growth is the mechanism that startups use to achieve sustainable growth. -Eric Ries, The Lean Startup Thursday, 23 May 2013
52. Sticky Organic Growth > Churn Rate Thursday, 23 May 2013
53. Paid 3x Acquisition Cost < Lifetime Value Thursday, 23 May 2013
54. Viral Viral Coefficient > 1.0 Thursday, 23 May 2013
55. 3x Acquisition Cost < Lifetime Value Content Marketing vs Direct Sales vs Advertising Avg Length of Sales Cycle Monthly Churn Customer Happiness Index 7/14/30 day retention Avg Revenue / User Typical SaaS Company Thursday, 23 May 2013
56. Taking Action Thursday, 23 May 2013
57. Metrics are not a “Task”. ☑ Built a Metrics Dashboard ☐ Profit! ☐ ? Thursday, 23 May 2013
58. IDEAS PRODUCT DATA MEASURE BUILD LEARN Thursday, 23 May 2013
59. IDEAS PRODUCT DATA MEASURE BUILD LEARN Experiment Thursday, 23 May 2013
60. Hypotheses instead of Requirements Thursday, 23 May 2013
61. Requirement: Users can add a Cover Photo to their Profile. Thursday, 23 May 2013
62. We believe that users will add a cover photo and spend more time on other profiles. Hypothesis: Thursday, 23 May 2013
63. 50% of newly signed up users will upload a cover photo, Avg time spent on user profiles will go from 30s to 1min+ Falsifiable Hypothesis: Thursday, 23 May 2013
64. [Exercise] Example Experiment + Hypothesis Thursday, 23 May 2013
65. IDEAS PRODUCT DATA MEASURE BUILD LEARN Build Measure Learn ✓ ✘ Kan-ban Board Thursday, 23 May 2013
66. Build Measure Learn ✓ ✘ Thursday, 23 May 2013
67. Build Measure Learn ✓ ✘ Experiment Scope How long do we run this experiment? Thursday, 23 May 2013
68. Dictates how fast you can learn Experiment Scope Your Runway How long you can survive Thursday, 23 May 2013
69. Example! Thursday, 23 May 2013
70. Split URL Test Thursday, 23 May 2013
71. VARIANT Thursday, 23 May 2013
72. VARIANT Thursday, 23 May 2013
73. VARIANT Thursday, 23 May 2013
74. VARIANT Thursday, 23 May 2013
75. Thursday, 23 May 2013
76. New variant will increase conversion by 5% Falsifiable Hypothesis: 10-14 hours to build & implement 1,000 visitors per page Experiment Scope: Thursday, 23 May 2013
77. VARIANT Visual Website Optimizer CONTROL 50% 50% Measurements via unique visitors Thursday, 23 May 2013
78. VARIANT CONTROL ?? How did we do? ?? Thursday, 23 May 2013
79. VARIANT CONTROL 42.2% Conversion 20% Better 35.1% Conversion Thursday, 23 May 2013
80. VARIANT WHY??? New LAYOUT New COPY New SOCIAL PROOF Thursday, 23 May 2013
81. VARIANT Visual Website Optimizer Experiments are additive #4 #3 Thursday, 23 May 2013
82. VARIANT #4 #3 Same content, just new layout Visual Website Optimizer #5 Thursday, 23 May 2013
83. Design only variant will increase conversion by 2% Falsifiable Hypothesis: ~ 2 hours to build & implement ~ 1,000 visitors per page Experiment Scope: Thursday, 23 May 2013
84. VARIANT 2 42.6% Conversion 44.5% Conversion CONTROL Thursday, 23 May 2013
85. INCREASE ACQUISITION SEO RANKING LANDING PAGE CONVERSION INBOUND CHANNELS # Depends on your resources & experiment scope Thursday, 23 May 2013
86. Thanks! lukas@fittl.com Setup a 1:1 meeting on Dashboard.io Thursday, 23 May 2013