actionable metrics @ lean startup meetup berlin
Post on 21-Oct-2014
15.064 views
DESCRIPTION
Talk at Lean Startup Meetup Berlin, February 28thTRANSCRIPT
Are you making your product better or worse?
LUKAS FITTL@lfittl
spark59.com
ACTIONABLE METRICS
Lean Startup is trademarked by Eric Ries and used with permission.Business Model Canvas is created by Alex Osterwalder and licensed under CC-BY-SA.
About Myself & Spark59Founded 2 tech startups,worked with many others
“Am I making progressinto the right direction?”
$$$/users/etc
Time
Product/Market Fit
1. Deliver Value 2. Accelerate Growth
Product/Market Fit
1. Value 2. Growth
$10000 / month$2000 / month
Now June 2013
?
CohortAnalysis
Cohort: Group of people that share a common characteristic over a period of time.
Track people,not events.
Group users by sign-up date andtrack their lifecycle.
Cohort Analysis for Retention
Cohort Analysis w Google Analytics
http://danhilltech.tumblr.com/post/12509218078/startups-hacking-a-cohort-analysis-with-google
Dave McClure’s AARRR
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
How do users find you?
Do users have a reat first experience?
Do users come back?
How do you make money?
Do users tell others?
$10000 / month$2000 / month
Now June 2013
?
$2000 / month
ACQACT
20% to paid at $35
RETREV
20% stay for 1 week
8% activate
5% sign up
2 paid$70 / day
10 retained
50 activated
625 signed up
12500 Unique Visitors / day
Cohort of February 12th, 2013
$2000 / month
Now
ACQACT
20% to paid at $35
RETREV
20% stay for 1 week
8% activate
5% sign up
$70 / day
12500 Uniques
$10000 / month
June 2013
20% to paid at $35
20% stay for 1 week
20% activate
10% sign up
$350 / day
12500 Uniques
2
10
50
625
10
50
250
1250
$2000 / month
Now
ACQACT
20% to paid at $35
RETREV
20% stay for 1 week
8% activate
5% sign up
$70 / day
12500 Uniques
$10000 / month
June 2013
20% to paid at $35
20% stay for 1 week
20% activate
10% sign up
$350 / day
12500 Uniques
2
10
50
625
10
50
250
1250
Delivering Value
Customers need toexperience the value,
otherwise they will leave.
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Value Metrics
How do users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do users tell others?
Network effectvsMarketplacevsSaaS
Who delivers the actual value?
Critical Mass of People
The Right People
Your Product
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Value Metrics
How do users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do users tell others?
Analyse Feature Usageof both successful & unsuccessful customers
Analyse Time to Complete an Action
=> Highly useful for targeted email campaign
Request Demo
Commit to become paying
customer
Get email from Ash
Visit landing page
Create AccountProvide billing info for 14-day
trial
Get welcome email with link
to docs
Schedule weekly
meetingsReview docs
Establish success metrics
Map user actions
Send first production
event
ACTIVATION
SIGNUP
ACQUISITION
Baseline AARRR metrics
Identify key metric to improve
Define experiments
First meeting
UPGRADE
RETENTION
Send events to staging
PERSONAS
Technical Founder
Product Owner
Week 1
Week 1
Week 1
Week 2
Week 3
Week 4
Usability Tests
http://www.slideshare.net/JohnnyForeigner/active-testing-sketches-leancamp-bcn
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Value Metrics
How do users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do users tell others?
Did Key Activity More than Once
“Created at least 3 cards on the Kan-ban board”
“Wrote at least 2 blog posts”
“Wrote at least 5 restaurant reviews”
Frequency
Daily?
Weekly?
Monthly?
1-day52%
7-day31%
14-day22%
30-day14%
Accelerating Growth
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Growth Metrics
How do users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do users tell others?
The engine of growth is the mechanism that startups use to achieve sustainable growth.
-Eric Ries, The Lean Startup
StickyOrganic Growth > Churn Rate
PaidLifetime Value > Acquisition Costs
ViralViral Coefficient > 1.0
Taking Action
Metrics are not a “Task”.
☑ Built a Metrics Dashboard
☐ Profit!☐ ?
IDEAS
PRODUCTDATA
MEASURE
BUILDLEARN
Experiment
Hypothesesinstead of
Requirements
Requirement:Users can create 3D avatars.
We believe that users will create a 3D avatar and spend more time on other
users profiles.
Hypothesis:
50% of newly signed up users will create a 3D avatar,
Avg time spent on user profiles will go from 30s to 1min+
Falsifiable Hypothesis:
Validated Learning:Define Hypothesis,
Build & Launch Experiment,Learn from the Results
Test yourValue Hypothesis first.
Unless you need critical massto deliver value.
ExperimentReports
1. Context - Why is this relevant?2. Quantify Your Goals3. Set Scope & Timebox
Planning an Experiment
Learning Goal
EXPERIMENT REPORT Author:Title: Created:
Experiment Scope
Minimum Build Plan
Lean Stack by Spark59.com
Falsifiable Hypothesis
Validated Learning
Results
Next Action
What are you trying to learn or achieve?
List the build plan step by step to get your measurement and experiment.
How many and/or how long will the experiment last?
[DATE][NAME][TITLE]
Your list of statements on the expected outcome of the experiment.
Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome]
Enter the data.
Summarize your learning from the experiment.
VALIDATED or INVALIDATED
Whatʼs the next experiment?
Learning Goal
EXPERIMENT REPORT Author:Title: Created:
Experiment Scope
Minimum Build Plan
Lean Stack by Spark59.com
Falsifiable Hypothesis
Validated Learning
Results
Next Action
What are you trying to learn or achieve?
List the build plan step by step to get your measurement and experiment.
How many and/or how long will the experiment last?
[DATE][NAME][TITLE]
Your list of statements on the expected outcome of the experiment.
Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome]
Enter the data.
Summarize your learning from the experiment.
VALIDATED or INVALIDATED
Whatʼs the next experiment?
Left Side DefinesThe Experiment
Learning Goal
EXPERIMENT REPORT Author:Title: Created:
Experiment Scope
Minimum Build Plan
Lean Stack by Spark59.com
Falsifiable Hypothesis
Validated Learning
Results
Next Action
What are you trying to learn or achieve?
List the build plan step by step to get your measurement and experiment.
How many and/or how long will the experiment last?
[DATE][NAME][TITLE]
Your list of statements on the expected outcome of the experiment.
Use this format: [Specific Repeatable Action] will [Expected Measurable Outcome]
Enter the data.
Summarize your learning from the experiment.
VALIDATED or INVALIDATED
Whatʼs the next experiment?
Right Side Analyses The
Results
✘Failure is good.
Validated Learning is ourMeasurement of Progress.
IDEAS
PRODUCTDATA
MEASURE
BUILDLEARN
Build Measure Learn
✓✘
Kan-ban Board
Weekly Strategy Meeting
Review ExperimentsOnly In Weekly Meeting
Focus On EfficiencyIn Daily Stand-ups
Review Experiment ResultsChallenge the Interpretation
Kill / Restart overdue Experiments
