Latest & Greatest Startup Metrics for Pirates, from my talk at FOWA London, October 2009.
Text of Startup Metrics for Pirates / KILL a Feature (FOWA London, Oct 2009)
Startup Metrics for Pirates: AARRR! Future of Web Apps Oct 2009 Dave McClure, Founders Fund http://www.foundersfund.com/ http://500hats.typepad.com/ http://slideshare.net/dmc500hats/
Prioritize (Estimate) Relative Value of Each State
Move Users: Lower Value -> Higher Value
Optimize for User Happiness / Business $$$
Achieve Low Cost + High Value @ Scale
$$$
The Startup Metrics Religion
Progress Features ( Less = More )
Focus on User Experience (& Distribution )
Measure Conversion ; Compare 2+ Options
Fast, Frequent Iteration (+ Feedback Loop )
Keep it Simple & Actionable
Minimize TOTAL time through the loop LEARN BUILD MEASURE IDEAS CODE DATA Source: Eric Ries, The Lean Startup
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
The Startup Pyramid (Sean Ellis, Startup-Marketing.com) [email_address] Blog: startup-marketing.com