The only metric that matters

Josh Elman @joshelman

August 7, 2014

Everybody starts at zero

With a dream of making an impact

But along the way, how do you know if it’s working?

You have to track things somehow…

but it can be overwhelming…

Our D7 retention is 60%. D30 is 22%.

250 million PVs in the last 30 daysWe just topped

200,000 sign ups

We have a 50% DAU/MAU ratio

We have over 1 million downloads

Everybody has a data point

But where do I start?

ARE PEOPLE USING YOUR PRODUCT?

Just focus on one thing:

Ok, but how can I tell?

1) Usage: Do they use your product how you expect? Track: #users taking core actions each day !

2) Cycle: Do they use it at the frequency you expect? Track: #users who visit at least N days in a week or month!

3) Retention: Are they sticky? Will come back to this…

LinkedIn Circa 2005Usage: Find and be found!

Cycle: Find: 2-3x/week Track: #users who log in and search per day!

Be found: 1-2x/year(?) Track: response rate to InMail

YelpUsage: Find local businesses/services. And review them. !

Cycle: Searchers: 2-3x/weekTrack: #users who search per day Reviewers: 1x/week(?)Track: #reviews / day

FacebookUsage: Stay connected with friends!

Cycle: 2-3x/dayTrack: #users who log in and view News Feed

ExpediaUsage: Plan a great trip!

Cycle: 3-5x/yearTrack: #users who search per day

ARE PEOPLE REALLY REALLY USING YOUR PRODUCT?

So they may be using it once, but…

Really really using? (aka “Core Users”)

1) Top of Mind: Do they come directly to your product vs referred by a link or special offerTrack: % users with direct traffic / engagement!

2) Recurring: Do they come back again and againTrack: % users who return weekly/monthly!

3) Referring: Do they share it with others? Track: k-factor, and % users who are referrers

Step 1) Analyze month over month usage

# days visited in month 1

% w

ho v

isite

d N

day

s in

mon

th 2

Step 2) Determine threshold for core

0%#10%#20%#30%#40%#50%#60%#70%#80%#90%#100%#

1# 2# 3# 4# 5# 6# 7# 8# 9# 10# 11# 12# 13# 14# 15# 16# 17# 18# 19# 20# 21# 22# 23# 24# 25# 26# 27# 28# 29# 30# 31# 32#

Reten%on'Rate'based'on'#'%mes'used'in'month'1'

Step 3) Understand activation buckets

CORE

CURIOUS NEW CASUAL

COLD

20%

90%

40%

40%

40%

8%

50%

10%

95%

4%1%

Step 4a) Find out why — from your data

Following more than 30 accounts 1/3 - mutual follows2/3 - one-way follows

Step 4b) Find out why — call them!

Cherish them. They are your super heroes

I have a few core users. I want more!

Problem 1: not enough people sign up

Clone your core users

1) Word-of-mouth Virality: help your core users describe your product. Say it yourself to the press. Inception!!

2) Demonstration Virality: have your core users share content and more from your product. Demonstrate their deep usage. !

3) Infectious Virality: encourage users to bring their friends in so the experience is better for both. Incentives ok too!

Problem 2: people sign up, no one sticks around

Onboard users all the way to Core

1) Learn Flow: teach your users your product as they sign up. Take your time. They are there to learn. Don’t rush it.!

2) Welcome Week: if users don’t do it the first day, nudge them to come back and keep going!

3) Social Pressure: if friends are on the system, use them to welcome, teach, and connect with the new folks

One metric to rule them all:

HOW MANY PEOPLE ARE REALLY USING YOUR PRODUCT?

The only metric that matters

Josh Elman @joshelman

August 7, 2014