Startup MetricsAvatech November 2014

@ghazalshi

The Goal of the Session

• Learn the stage of your startup• Pick a metric to change• Find correlation and test causality• Optimize for the causal factor

Exercise: 5 min

Write down the metrics that you are measuring

The core of the Lean is iteration

Ideas

Build

Product

Measure

Data

Learn

It is not about whetheryou can build it is aboutif anybody will care.

The core of the Lean is iteration

Ideas

Build

Product

Measure

Data

Learn

Everyone’s idea isthe best

Here is where everythingfalls apart

Everyone lovesthis part

Analytics can help

Analytics is the measurementof movement toward your goals.

Some Fundamentals

What is a good metric?

Understandable

• If you are busyexplaining thedata, youwon’t beacting upon it.

Comparable

• Comparison iscontext.

A ratio

• The only wayto measure ametric

Behaviorchanging

• What will youdo differentlybased onthese data?

The Simple Rule

Metrics help you know yourself

Customers thatbuy more than 1times in 90 days

Then you are inthis mode

Your customerswill buy from you You are just like Focus on

1-15% Acquisition Once 70% of the retailers Low user acquisitioncost, high checkout

15-30% Hybrid 2-2.5 per year 20% of the retailers Increasing returnrates, high market

share

>30% Loyalty >2.5 per year 10% of the retailers Loyalty, inventory

Tie the metric to a desired behavior

Beware of Vanity Metrics

Vanity Metrics to Watch Out ForHitsPage viewsVisitsUnique visitorsFollowers/friends/likesTime on pageEmails collectedNumber of downloads

Examples

• If a Facebook user reaches 7 friends in 10 days• If someone in Zynga comes back the day after signing up to play they

will become loyal users.• A twitter user who follows certain number of users and a certain

number of them follow him back• A linkedin member who get X connections in Y days

A leading, causal metric is asuperhero.

Metrics

Eric’s 3 engines of startup growth

Dave’s Pirate Metrics

Acquisition

Activation

Retention

Revenue

Referral

What Stage Are You At?

Exercise: 30 mins

• We have talked a lot about this stage!• Share your questions and insight you got.• Explain why?

Stickiness

Virality

Scale: Incremental Order Cost

6 Business Model Archetypes

Acquisition

Activation

Retention

Revenue

Revenue

Just One?

Oh Yeah! Remember you are astartup!

What is good enough?

E-commerce

• Conversion rate• Purchases per year• Average shopping cart size• Abandonment• CAC• Revenue per customer• Top key words driving traffic

2-sided Market

• Buyer and seller growth• Inventory growth• Search effectiveness• Conversion funnels• Ratings• Pricings

Mobile App

• Downloads• Launch rate• Percentage of active users• Percentage of users who pay• Time to first purchase• Rating click-through• Virality

SaaS

• Attention• Enrollment• Stickiness• Conversion• CAC• Revenue per customer• Virality• Upselling

UGC

• Number of engaged visitors• Content Creation• Engagement funnel changes• Value of created content• Content sharing

Media

• Audience and churn• Ad inventory• Ad rates• CTR• Content/advertising balance

Exercise: 1 hour

• Go back to your team• Based on your business model visualize the system that you are

working in• Pick 5 metrics important to you• Choose an OMTM

Growth Hacking

E-commerceMetrics

• All the images in this presentation are taken from flickr.com and leananalytics.

• The content where not specified is from Lean Analytics and DaveMcClure’s metrics.