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How to thrive as an early stage startup by using the right metrics
Founder / Growth Hacker7 years
Founder1 year
Growth Coach / Growth Hacker1 year
Organizer / Mentor4 years
@MikevHoenselaar
Find them again at http://vruc.ht/sbcghmm
@MikevHoenselaar
●
You tell lies!
@MikevHoenselaar
“I believe we are all liars, but I think to a certain degree it’s a necessity. To get up in the morning and face the universe as an entrepreneur, you need to have a bit of a reality distortion field.”
Ben YoskovitzAuthor Lean Analytics
@MikevHoenselaar
The oxygenfor GrowthComparative, Understandable, Ratio or rate
Metrics are
@MikevHoenselaar
Behavior changingMetrics are
@MikevHoenselaar
Where to start?It depends :)
What drives your startup, what is it’s oxygen?
Who is your customer?
What do your customers want to achieve with your product?
What do you want to learn?
Take the first step!
@MikevHoenselaar
Know that youdon’t knowDonald Rumsfeld, US Secretary of Defense
Image: Karin Cooper/Getty Images@MikevHoenselaar
16@MikevHoenselaarImage: Lean Analytics book
The One MetricThat Matters
OMTM
@MikevHoenselaar 55
Yes! Not working?Pick another one.
Can I use made-up metrics?
@MikevHoenselaar
‘analysis paralysis’
NFA #6
Focus! 1@MikevHoenselaar
$40 a month
$40 per monthSupports lots of API’s
FreeLess customizability< 5 minutes setup for basics
$9 per monthLots of custom optionsLonger setup
What happens if ratio increases/ decreases?Make an action plan!
@MikevHoenselaar
@MikevHoenselaar
Intelligence Events
“Send notification if the average amount per order drops 10%
since the week before.”
< 1 hour setup
Works by default in Google Analytics.
6 months in, this alert triggered. What happened was that dev team deployed new version of website with “discounts sidebar” visible on cart page. Oops! :)
5 stagesEmpathy, Stickiness, ViralityRevenue and Scale
@MikevHoenselaar
@MikevHoenselaar
@MikevHoenselaar
What could be their OMTM?
Videos uploaded per minute(enough new content being added)
Hours watched per day (per user)(enough people watching the content)
Shares per video per day(enough people talking about the videos)
100M views (vanity)(when does a video reach 100M views, record is 4 days ‘Gentlemen’)
@MikevHoenselaar
Our OMTM?242 listings, 750 reviews
Requests per day(give enough value to escaperooms, 11 per day atm)
Users per month(are we getting enough people in, 20k per month atm)
Reviews per user(are people coming back. 1,3 reviews per user)
Shares per listing(Do people share their favorite escaperoom, answer is NO)
400% month
over month
60%month
over month
@MikevHoenselaar
EmpathySee if others pretend to believe your lies.
Will anyone care?
159@MikevHoenselaar
@MikevHoenselaar
Test value proposition
“Can we get people to click on a FB ad and test what is the biggest pain for our target
audience?”
14 ads in one ad group
1 week of testing
No real landing page
Focus on CTR
< 500 euro
We found right direction to continue product and use in next experiment.
!FB picks
winner after 48 hours
@MikevHoenselaar
@MikevHoenselaar
Test value proposition
“How do people perceive the purpose of our landing page
design?”
1 image
5 second test
1 week of testing
Only time needed (2 hours of clicking other people’s tests and learn from those as well)
We found people wouldn’t get the premise of the landing page. Changed it, did it again. Saw positive uplift.
@MikevHoenselaar
StickinessPeople believe your lies and you want them to come
back to hear more of them
203@MikevHoenselaar
Top landing pages
Top Exit pages
Highest traffic pages
Most expensive pages
Identify your most important pages
@MikevHoenselaar
P.I.E.S
@MikevHoenselaar
@MikevHoenselaar
“How can we find the best places to optimize to increase
conversion?”
Pick your funnel(cart -> info -> payment -> thank you)
Implement Enhanced E-commerce
View report in Google Analytics and see where most people drop off.
We removed friction for client in form (IE problem) and increased conversion uplift of 10%, sales per month increase of € 15k)
(It’s also interesting to see where they drop off to! Use segmentation!)
Conversion
Measure, test, iterate!@MikevHoenselaar
Watch 30 videos, get your hypothesis!
@MikevHoenselaar
@MikevHoenselaar
E-mailmarketing
“Can we get people to come back that visited an escape
room?”
We already had their email addresses, we didn’t need an opt-in anymore.
We decided to do a mailing to ask for a review. We knew when they visited the escaperoom to make it relevant.
40% of people engaged with the email and 50% gave their review. Currently 750 reviews in 6 months.
15% growth in reviews per week
@MikevHoenselaar
Read this!
@MikevHoenselaar
ViralityPeople are convincing others about your ‘lies’
227@MikevHoenselaar
74% of high growth startups fail due to premature scaling
Startup Genome Report Extra: Premature Scaling → http://vruc.ht/sgr@MikevHoenselaar
Viral coefficientAmount of new customers that each existing customer is able to convert
Empathy, Stickiness, ViralityRevenue and Scale
@MikevHoenselaar
invitation rate(invites sent / users)
*acceptance rate(signups / invites)
Viral coefficient
@MikevHoenselaar
Cu
sto
mer
s
Time
invitation rate(invites sent / users)
*acceptance rate(signups / invites)
Viral coefficient
@MikevHoenselaar
1250 users that send 2000 invitesInvitation rate = 1.6
Of those 2000 invites580 people accept the invite (signup)acceptance rate = 0.29 (29%)
VC = 1.6 * 0.29 = 0.464
Long way to go :)
Image: http://www.slideshare.net/timhomuth/think-like-a-growth-hacker@MikevHoenselaar
When was the last time you invited someone to Dropbox?
(For me it has been years ago)
@MikevHoenselaar
Happensmostlyonce
RevenuePeople believe your lies, you want them to start
paying for them
@MikevHoenselaar 241
Are they still lies?
25%
25 of 100 people churn per monthCustomer lifetime is 4 months (100/25 = 4)
CLV = 20 * 4 = € 80max CAC = 80 / 3 = € 26,50
10%
10 of 100 people churn per monthCustomer lifetime is 10 months(100/10 = 10)
CLV = 20 * 10 = € 200max CAC = 200 / 3 = € 66,50
2%
2 of 100 people churn per monthCustomer lifetime is 50 months(100/2 = 50)
CLV = 20 * 50 = € 1000max CAC = 1000 / 3 = € 333
What do you earn per customer per month? € 20Lots of startups take ⅓ of their CLV as max CAC (in the end it’s up to you)
CLV and CAC
@MikevHoenselaar
Spent € 263,25 and you got 3 conversions. CAC is € 87,75 here.
(Notice the € 0!)
@MikevHoenselaar
More Dropbox lessons fromDrew Houston (CEO)?http://vruc.ht/dropboxll
@MikevHoenselaar
One more thingpleassse…
@MikevHoenselaar
CTR 3%
conversion 15%
Exit survey
1%
7%
€ 600 ads€ 2500 setup
363 clicks
€ 5k+ in sales
max CAC was € 60our CAC was € 104
video tracking
25 units€ 199
2500 people
@MikevHoenselaar
CTR 3%
17%
Exit survey
1%
7%
€ 600 ads€ 500 setup
425 clicks
€ 6k in sales
max CAC was € 60our CAC was € 37
video tracking
30 units€ 199
2500 people
@MikevHoenselaar
ScaleCompetitors are starting to tell lies about you but
will shoot for the stars!
255@MikevHoenselaar
Let the Growth Hacking beginBut you can implement techniques of GH a lot earlier of course :)
@MikevHoenselaar
Inspirationpetithacks.com
growthhackers.cominbound.org
quicksprout.comgrowthhack.com
@MikevHoenselaar
AND NOW...
@MikevHoenselaar
Pivot != iterateFocus on OMTM
@MikevHoenselaar@MikevHoenselaar
1. What is your business objective?2. Define your metrics (KPI’s)3. What is your conversion funnel?4. Define segmentation criteria5. Define objectives
@MikevHoenselaar
Business model & stage and metrics
@MikevHoenselaar
Lean Analytics infographic
Get them athttp://vruc.ht/lai
24sessions, Clickly, Crazylister, Liater, Trylikes, StoreGecko
The Core ofLean is iteration
This is wherethings fall apart
People invite their own network
(The ones you invite are most likely in the same network)
@MikevHoenselaar
declineswhen
everybody is using
your product
Something that has never ever ever being said about marketing metrics
@MikevHoenselaar
1 Number1 Product1 Market1 Name1 Location1 Metric1 Channel
is a superpowerA leading, causing metric
Predicts the future and directly impacts a dependent metric.Current prospects in sales funnel for instance.
[NAME] was [ACTIVITY] at [LOCATION] with his/her [PRODUCT] on.He/She is looking for the right metric to see if people at [LOCATION] want to buy his [PRODUCT]. He believes that [METRIC] will do that. He starts with a campaign via [CHANNEL] to sell [NUMBER ] products and targets [MARKET]. Do you think he has what it takes?
Don’t build somethingwithout metrics
@MikevHoenselaar
Or a kitten dies
● Customer Acquisition Cost (CAC)● Customer Lifetime Value (CLV)
● Viral Coefficient● Customer Retention Rate
● Number of hits● Page views
● Unique visitors (not always)● Followers/likes● Emails collected● App downloads
Vanity Metrics
metrics @ helpdeskIt’s dangerous to assume that speed automatically equals a positive customer experience.
An inaccurate or false statement; a falsehood.
