latest & greatest Startup Metrics 4 Pirates, for talk at GeeknRolla conf (London, March 2011). a few updates from SXSW 2011, but mostly the same old shit.
Text of Startup Metrics 4 Pirates (London, March 2011)
Startup Metrics 4 Pirates Geek n Rolla London March 2011 #GKNR #LeanStartup Dave McClure @DaveMcClure http://www.500startups.com http://500hats.typepad.com http://slideshare.net/dmc500hats AARRR !
Dave McClure
2001-2010:
Startup Investor: 500 Startups, Founders Fund
Tech Marketing : PayPal, Simply Hired, Mint.com
Advisor, Angel Investor : 100+ Startups
Conferences : Warm Gun, Lean Startup, SMASH
Stanford Lecturer : Facebook, Startup Metrics
80s & 90s:
Entrepreneur : Founder/CEO Aslan Computing (acq.)
Developer : Windows Apps / SQL DB Admin
User Groups : E-Commerce, Internet, Client-Server
Engineer : Johns Hopkins 88, BS Eng / Applied Math
Just Gimme the GOOD Metrics. Users, Pages, Clicks, Emails, $$$...?
Q: Which of these is best? How do you know?
1,000,000 one-time, unregistered unique visitors
500,000 visitors who view 2+ pages / stay 10+ sec
200,000 visitors who clicked on a link or button
20,000 registered users w/ email address
2,000 passionate fans who refer 5+ users / mo.
1,000 monthly subscribers @ $5/mo
the good stuff.
Startup Metrics for Pirates
A cquisition: users come to site from various channels
A ctivation: users enjoy 1 st visit: " happy experience
R etention: users come back , visit site multiple times
R eferral: users like product enough to refer others
R evenue: users conduct some monetization behavior
(note: If youre in a hurry, Google Startup Metrics & watch 5m video) AARRR !
AARRR! : 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
One Step at a Time.
Make a Good Product : Activation & Retention
Market the Product : Acquisition & Referral
Make Money : Revenue & Profitability
You probably cant save your Ass and your Face at the same time choose carefully . DMC
[ Constructing MVP ]
Role: Founder / CEO
Q: Which Customers? Problems? Metrics? Why ?
A: Focus on Critical Few Actionable Metrics
(if you dont use the metric to make a decision, its not actionable)
Hypothesize Customer Lifecycle
Target ~3-5 Conversion Events (tip: Less = More)
Test, Measure, Iterate to Improve
Optimize 4 Happiness (both User + Business)
Define States of User + Business Value
Prioritize (Estimate) Relative Value of Each State
