lean analytics: a short summary

Jan König Lean Startup Meetup Karlsruhe @einkoenig 22.04.2013

source: O’Reilly

book content

additional stuff

group discussion?

Book Parts

1 Stop Lying to Yourself

2 Finding the Right Metric for the Right Time

3 Lines in the Sand

4 Putting Lean Analytics to Work

won’t be covered tonight

Stop Lying to Yourself 1

Data? Lean Startup? I just go with my gut feeling.

(too) many people

watch it here: http://www.ted.com/talks/tali_sharot_the_optimism_bias.html

Follow the Lean model, and it becomes increasingly hard to lie,

especially to yourself.

Instincts are experiments. Data is proof.

Do hosts with professional photography get more business?

image by mark sebastian / flickr

Gut instinct Professional photography helps Airbnb’s business

Concierge MVP 20 photographers in the field

Test results Two to three times more bookings!

You are not building a product. You are building a tool to learn

what product to build.

Finding the Right Metric 2

for right now !

Good Metrics?

image by kevin dooley / flickr

image by flopper/ flickr

comparative

image by wikia.com

understandable

image by Jeff Kubina / flickr

rate or ratio

image by Gabe Photos / flickr

changes the way you behave

image by will ockenden / flickr

image by 55Laney69 / flickr

The One Metric That Matters

1 answers the most important question you have

2 forces you to draw a line in the sand

3 focuses the entire company

4 inspires a culture of experimentation

Should you really focus on one metric?

Restaurant’s Effectiveness Metrics

Delivery Usage Customer Satisfaction Possible Interpretation

Crazy! Time to look at other metrics to improve your business.

Source: Klubeck, “Metrics”, page 149f

Great food and a loyal, but very small customer base. Maybe a bad location.

“The only game in town.” Or a product customers need but don’t want.

OK, something is wrong here. You know that.

with Triangulation

Restaurant’s Effectiveness Metrics

Customer Satisfaction Possible Interpretation

good

Source: Klubeck, “Metrics”, page 149f

good

bad

bad

without Triangulation

Delivery Usage Customer Satisfaction Possible Interpretation

focus on

ratio = staff costs

gross revenues

image by Giorgio Montersino / flickr

What Business are you in?

E-Commerce SaaS Free Mobile App

Media Site User-Generated

Content Two-Sided

Marketplaces

What Stage are you at?

Empathy Stickiness Virality

Revenue Scale

What is your OMTM?

Lines in the Sand 3

One of the most challenging things for a startup to do:

find a relevant number against which to compare yourself.

Some interesting bottom lines

Growth 5% (revenue or active users)

Engaged Visitors 30% monthly users 10% daily users

Mailing List Effectiveness 20-30% open rate 5% click-throughs

image by Robert Scoble / flickr

Should you ask for billing information upfront?

Trial users

Subscribers

Churn 1st perriod

End to end

2%

50%

up to 40%

0.6%

10%

15%

up to 20%

1.2%

Questions?