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Practical Lean Analytics Growthcon October 24, 2014 @acroll

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#緊急開催!LEAN ANALYTICS実践ワークショップ GROWTHCONは、シリコンバレーおよび日本から第一人者を招聘し、製品やサービスの開発をどう行っていのかについて実践者や専門家から直接学ぶ場を、ワークショップ、カンファレンス、ファイヤーサイドチャット等の形式で提供していきます。 GROWTHCONの記念すべき第一回目は、LEAN ANALYTICSの著者であるアリスター・クロル氏を招聘して、データに基づいて優れた製品や企業を素早く構築していく手法について、実践的に学びました。 http://www.growthcon.co #WORKSHOP #1: LEAN ANALYTICS実践ワークショップ * 講師: アリスター・クロル (LEAN ANALYTICS著者) * 日時: 2014年10月24日 10:00-17:00 * 会場: ALLIED ARCHITECTS, INC. * 協賛: 株式会社リクルートホールディングス メディアテクノロジーラボ #APPSOCIALLYについて GROWTHCONは、AppSociallyの主催により開催致します。AppSocially Inc.は、シリコンバレー/サンフランシスコを拠点に活動するグロース戦略の専門チームです。国内外でグロースやデータサイエンス、レベニューの最大化に従事してきたメンバーで構成されています。AppSociallyでは、グロースのために重要なテクノロジーをお客様にご提供するとともに、グロースに関連する知見や情報の普及にも努めています。 --- #GROWTHCON #1 WAS LEAN ANALYTICS WORKSHOP! GROWTHCON is a series of conferences, workshops and firesidechats to deliver opportunities to discuss and learn how to create a team with growth-minded culture and run a growth team, by inviting experienced and prominent and experts and practitioners from all over the world including Silicon Valley. Our very first chapter was, by having Alistair Croll, the author of the "Lean Analytics" in Tokyo, "Practical Lean Analytics Workshop," where you can get how to use data to build a better startup faster. #WORKSHOP #1: "PRACTICAL" LEAN ANALYTICS WORKSHOP * INSTRUCTOR: ALISTAIR CROLL (AUTHOR OF "LEAN ANALYTICS") * DATE/TIME: 10:00AM-5:00PM, OCTOBER 24TH, 2014 * VENUE: ALLIED ARCHITECTS, INC. (EBOSU1-19-15-4F, SHIBUYA, TOKYO) * SPONSOR: RECRUIT HOLDINGS CO., LTD. MEDIA TECHNOLOGY LAB #ABOUT APPSOCIALLY GROWTHCON is brought to you be AppSocially Inc. AppSocially is the San Francisco-based team of growth experts. Since its foundation in February 2013, AppSocially has been delivering best-in-market customer acquisition features for mobile app developers and marketers in all over the world. Now we have grown to 2 offices in San Francisco and Tokyo, with multi-national experts from Japan, US, France and Ukraine. AppSocially is also working on bringing the latest skills and experiences of Growth Hacking from Silicon Valley to Japan.

TRANSCRIPT

Page 1: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Practical Lean Analytics

Growthcon October 24, 2014

@acroll

Page 2: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Don’t sell what you can make. Make what you can sell.

Kevin Costner is a lousy entrepreneur.

Page 3: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

The core of Lean is iteration.

Page 4: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Most startups don’t know what they’ll be when they grow up.

Hotmailwas a database company

Flickrwas going to be an MMO

Twitter was a podcasting company

Autodesk made desktop automation

Paypalfirst built for Palmpilots

Freshbookswas invoicing for a web design firm

Wikipedia was to be written by experts only

Mitelwas a lawnmower company

Page 5: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Waterfall, agile, and lean(Why the old ways don’t work.)

Page 6: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Waterfall approachYou know the problem and the solution.

Page 7: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 8: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Known set of requirements

Known ways to satisfy them

Spec Build Test Launch

Page 9: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Agile methodologies

Know the problem, find the solution

Page 10: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 11: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Known set of requirements

Unclear how to satisfy them

Build Test LaunchViable?Problemstatement

Adjust

Sprints

Unknown set of requirements

Page 12: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Lean approach

First, know that you don’t know.

Page 13: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Possible problem space

Product/market

hypothesisTrial startup

Product/market

hypothesisTrial startup

Product/market hypothesis

Trial startup

Product/market hypothesis

Trial startup

You are herePIV

OT

Page 14: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Why now?

First: High rate of change of digital technologies & channels.

Page 15: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Arbitron and radio data

Page 16: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Times a song in “heavy rotation” is played daily

0

15

30

2007 2012

266

Page 17: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Why now?

Second: It’s no longer about whether you can build it—it’s about whether

anyone will care.

Page 18: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

The Attention Economy“What information consumes is rather obvious: it consumes the attention of its recipients.

Hence a wealth of information creates a poverty of attention, and a need to allocate that attention efficiently among the overabundance of information sources that might consume it.”

(Computers, Communications and the Public Interest, pages 40-41, Martin Greenberger, ed., The Johns Hopkins Press, 1971.)Herbert Simon

Page 19: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Lit motors tests the risky part

Page 20: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Unfortunately, it is hard to be honest with ourselves.

Page 21: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Everyone’s idea is the best right?

People love this part!

(but that’s not always a good thing)

This is where things fall apart.

No data, no learning.

Page 22: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Analytics can help.

Page 23: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Analytics is the measurement of movement towards your business

goals.

Page 24: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

In a startup, the purpose of analytics is to iterate to product/market fit

before the money runs out.

Page 25: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Some fundamentals.

Page 26: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

A good metric is:

Understandable

If you’re busy explaining the data, you won’t be busy acting on it.

Comparative

Comparison is context.

A ratio or rate

The only way to measure change and roll up the tension between two metrics (MPH)

Behaviorchanging

What will you do differently based on the results you collect?

Page 27: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

The simplest rule

badmetric.

If a metric won’t change how you behave, it’s a

h"p://www.flickr.com/photos/circasassy/7858155676/

Page 28: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Metrics help you know yourself.

Acquisition

Hybrid

Loyalty

70%of retailers

20%of retailers

10%of retailers

You are just like

Customers that buy >1x in 90d

Once

2-2.5per year

>2.5per year

Your customers will buy from you

Then you are in this mode

1-15%

15-30%

>30%

Low acquisition cost, high checkout

Increasing return rates, market share

Loyalty, selection, inventory size

Focus on

(Thanks to Kevin Hillstrom for this.)

Page 29: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Qualitative

Unstructured, anecdotal, revealing, hard to aggregate, often too positive & reassuring.

Warm and fuzzy.

Quantitative

Numbers and stats. Hard facts, less insight, easier to analyze; often sour and disappointing.

Cold and hard.

Page 30: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Exploratory

Speculative. Tries to find unexpected or interesting insights. Source of unfair advantages.

Cool.

Reporting

Predictable. Keeps you abreast of the normal, day-to-day operations. Can be managed by exception.

Necessary.

Page 31: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Rumsfeld on Analytics

(Or rather, Avinash Kaushik channeling Rumsfeld)

Things we

know

don’tknow

we know Are facts which may be wrong and should be checked against data.

we don’tknow

Are questions we can answer by reporting, which we should baseline & automate.

we knowAre intuition which we should quantify and teach to improve effectiveness, efficiency.

we don’tknow

Are exploration which is where unfair advantage and interesting epiphanies live.

Page 32: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

MayAprMarFeb

Slicing and dicing data

Jan

0

5,000

Activ

e use

rs

Cohort: Comparison of similar groups along a timeline. (this is the April cohort)

A/B test: Changing one thing (i.e. color) and measuring the result (i.e. revenue.)

Multivariateanalysis Changing several things at once to see which correlates with a result.

☀☁☀☁

Segment: Cross-sectional

comparison of all people divided by

some attribute (age, gender, etc.)

Page 33: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Which of these two companies is doing better?

Page 34: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

  January February March April May

Rev/customer $5.00 $4.50 $4.33 $4.25 $4.50Is this company growing or stagnating?

Cohort 1 2 3 4 5

January $5 $3 $2 $1 $0.5

February $6 $4 $2 $1

March $7 $6 $5

April   $8 $7

May       $9

How about this one?

Page 35: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Cohort 1 2 3 4 5

January $5 $3 $2 $1 $0.5

February $6 $4 $2 $1  

March $7 $6 $5    

April $8 $7      

May $9        

Averages $7 $5 $3 $1 $0.5

Look at the same data in cohorts

Page 36: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Lagging

Historical. Shows you how you’re doing; reports the news. Example: sales.

Explaining the past.

Leading

Forward-looking. Number today that predicts tomorrow; reports the news. Example: pipeline.

Predicting the future.

Page 37: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya)

If someone comes back to Zynga a day after signing up for a game, they’ll probably become an engaged, paying user (Nabeel Hyatt)

A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang)

Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman)

A LinkedIn user getting to X connections in Y days (Elliot Schmukler)

Some examples

(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)

Page 38: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Which means it’s time to talk about correlation.

Page 39: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

1

10

100

1000

10000

Ice cream consumption DrowningsJan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Page 40: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Correlated

Two variables that are related (but may be dependent on something else.)

Ice cream & drowning.

Causal

An independent variable that directly impacts a dependent one.

Summertime & drowning.

Page 41: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

A leading, causal metric is a superpower.

h"p://www.flickr.com/photos/bloke_with_camera/401812833/sizes/o/in/photostream/

Page 42: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Why is Nigerian spam so badly written?

Page 43: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Aunshul Rege of Rutgers University, USA in 2009

Experienced scammers expect a “strike rate” of 1 or 2 replies per 1,000 messages emailed; they expect to land 2 or 3 “Mugu” (fools) each week. One scammer boasted “When you get a reply it’s 70% sure you’ll get the money” “By sending an email that repels all but the most gullible,” says [Microsoft Researcher Corman] Herley, “the scammer gets the most promising marks to self-select, and tilts the true to false positive ratio in his favor.”

1000 emails

1-2 responses

1 fool and their money, parted.

Bad language (0.1% conversion)

Gullible (70% conversion)

1000 emails

100 responses

1 fool and their money, parted.

Good language (10% conversion)

Not-gullible (.07% conversion)

This would be horribly inefficient since

humans are involved.

Page 44: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Turns out the word “Nigeria” is the best way to identify promising prospects.

Page 45: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Nigerian spammers really understand their target market.

They see past vanity metrics.

Page 46: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

The Lean Analytics framework.

Page 47: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Sustainable growth comes through the actions of your customers.

- Eric Ries

Page 48: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Eric’s three engines of growth

Virality

Make people invite friends.

How many they tell, how fast they

tell them.

Price

Spend money to get customers.

Customers are worth more than

they cost.

Stickiness

Keep people coming back.

Approach

Get customers faster than you

lose them.

Math that matters

Page 49: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Dave’s Pirate MetricsAARRR

AcquisitionHow do your users become aware of you?

SEO, SEM, widgets, email, PR, campaigns, blogs ...

ActivationDo drive-by visitors subscribe, use, etc?

Features, design, tone, compensation, affirmation ...

RetentionDoes a one-time user become engaged?

Notifications, alerts, reminders, emails, updates...

RevenueDo you make money from user activity?

Transactions, clicks, subscriptions, DLC, analytics...

ReferralDo users promote your product?

Email, widgets, campaigns, likes, RTs, affiliates...

Page 50: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Stage

EMPATHY I’ve found a real, poorly-met need that a reachable market faces.

STICKINESS I’ve figured out how to solve the problem in a way they will keep using and pay for.

VIRALITY I’ve found ways to get them to tell their friends, either intrinsically or through incentives.

REVENUE The users and features fuel growth organically and artificially.

SCALE I’ve found a sustainable, scalable business with the right margins in a healthy ecosystem.

GateTh

e fiv

e st

ages

Page 51: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Empathy stage: Localmind hacks Twitter

Needed to find out if a core assumption—strangers answering questions—was valid. Ran Twitter experiment instead of writing code Asked senders of geolocated Tweets from Times Square random questions; counted response rate Conclusion: high enough to proceed

Page 52: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

LikeBright’s mechanical turkUsed Mechanical Turk, Google Voice to speak w/100 single women; paid $2. The interviews lasted typically around 10-15 minutes. Simple interview script with open-ended questions, since he was digging into the problem validation stage of his startup. Founder Nick Soman: “I was amazed at the feedback I got. We were able to speak with one hundred single women that met our criteria in four hours on one evening.”

Went back to TechStars and got accepted. LikeBright’s website is now live with a 50% female user base, and recently raised a round of funding. “Since that first foray into interviewing customers, I’ve probably spoken with over a thousand people through Mechanical Turk,”

Page 53: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

How to avoid leading the witnessAvoid biased wording, preconceptions, or a giveaway appearance. Word your surveys carefully to be neutral.

Get them to purchase. Ask them to pay. Demand real

Ask “why” several times. Leave lingering, uncomfortable pauses

Don’t tip your hand

Make the question real

Keep digging

Look for other clues Have a colleague make notes of when they react, or of their body

Page 54: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Stickiness stage: qidiq streamlines invites

Survey owner adds recipient to groupSurvey owner asks question

Recipient reads survey questionRecipient responds to questionRecipient sees survey results

(Later, if needed…)Recipient visits site; no password!Recipient does password recovery

One-time link sent to emailRecipient creates password

Recipient can edit profile, etc.

Survey owner adds recipient to group

Survey owner asks question

Recipient gets invite

Recipient reads survey question

Recipient responds to question

Recipient installs mobile app

Recipient creates account, profile

Recipient sees survey results

Recipient can edit profile, etc.

10-2

5% R

ESPO

NSE R

ATE

70-9

0% R

ESPO

NSE R

ATE

Page 55: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

1200

1000

800

600

400

200

01 2 3 4 5 6 7 8 9

Days since last engagement

January February

Disengaged(>10 days)

25000

20000

15000

10000

5000

0

Num

ber o

f use

rsA better approach to engagement

This is agood thing.

Page 56: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Who is worth more?

Today

A Lifetime:$200

Roberto Medri, Etsy

B Lifetime:$200

Visits

Page 57: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Virality stage: Timehop focuses on content sharing

Focused on percent of daily active users that share their content Aiming for 20-30% of DAU sharing

“All that matters now is virality. Everything else—be it press, publicity stunts or something else—is like pushing a rock up a mountain: it will never scale. But being viral will.”

- Jonathan Wegener, co-founder

Page 58: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

------------------------------------------------------Get your free private email at http://www.hotmail.com ------------------------------------------------------

Page 59: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 60: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

v ≠ 1, pt  = δp0 (1 – vt+1) / (1 – v) + p0 

http://robert.zubek.net/blog/2008/01/30/viral-coefficient-calculation/

Viral coefficient

Page 61: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Or simpler

Users Viralcoefficient

Churn &abandonment

x - > 1

Page 62: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Revenue stage: Backupify’s Customer Acquisition Payback

Initially focused on site visitors Then focused on trials Then switched to signups Today, MRR In early 2010, CAC was $243 and ARPU was only $39

Pivoted to target business users CLV-to-CAC today is 5-6x

Now they track Customer Acquisition Payback Target is less than 12 months

Page 63: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Scale stage: Incremental order cost

Fixed costs

Marginal costs

Page 64: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Six business model archetypes.

E-commerce SaaS MediaMobileapp

User-gencontent

2-sidedmarket

The business you’re in

Page 65: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

(Which means eye charts like these.)

Customer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial offer

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagement

Reactivate

Cancel

Trial abandonment rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERS

User Lifetime Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficientViral rate

Resolution

Support data

Account Cancelled Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

Page 66: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

AcquisitionCustomer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial offer

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagement

Reactivate

Cancel

Trial abandonment rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERS

User Lifetime Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficientViral rate

Resolution

Support data

Account Cancelled Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

Page 67: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

ActivationCustomer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial offer

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagement

Reactivate

Cancel

Trial abandonment rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERS

User Lifetime Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficientViral rate

Resolution

Support data

Account Cancelled Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

Page 68: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

RetentionCustomer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial offer

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagement

Reactivate

Cancel

Trial abandonment rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERS

User Lifetime Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficientViral rate

Resolution

Support data

Account Cancelled Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

Page 69: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

RevenueCustomer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial offer

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagement

Reactivate

Cancel

Trial abandonment rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERS

User Lifetime Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficientViral rate

Resolution

Support data

Account Cancelled Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

Page 70: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

RevenueCustomer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial offer

Enrollment

User

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagement

Reactivate

Cancel

Trial abandonment rate

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERS

User Lifetime Value

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficientViral rate

Resolution

Support data

Account Cancelled Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

Page 71: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Model + Stage = One Metric That Matters.

One Metric That Matters.

The business you’re in

E-Com SaaS Mobile 2-Sided Media UCGEmpathy

Stickiness

Virality

Revenue

ScaleThe

stag

e yo

u’re

at

Page 72: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Really? Just one?

Page 73: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Yes, one.

Page 74: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

In a startup, focus is hard to achieve.

Page 75: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Having only one metric addresses this problem.

Page 77: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Moz cuts down on metricsSaaS-based SEO toolkit in the scale stage. Focused on net adds.

Was a marketing campaign successful? Were customer complaints lowered? Was a product upgrade valuable?

Net adds up:

Can we acquire more valuable customers? What product features can increase engagement? Can we improve customer support?

Net adds flat:

Are the new customers not the right segment? Did a marketing campaign fail? Did a product upgrade fail somehow? Is customer support falling apart?

Net adds down:

Page 78: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Metrics are like squeeze toys.

http://www.flickr.com/photos/connortarter/4791605202/

Page 79: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Empathy

Stickiness

Virality

Revenue

Scale

E-commerce SaaS MediaMobile

appUser-gencontent

2-sidedmarket

Interviews; qualitative results; quantitative scoring; surveys

Loyalty, conversion

CAC, shares, reactivation

Transaction, CLV

Affiliates, white-label

Engagement, churn

Inherent virality, CAC

Upselling, CAC, CLV

API, magic #, mktplace

Content, spam

Invites, sharing

Ads, donations

Analytics, user data

Inventory, listings

SEM, sharing

Transactions, commission

Other verticals

(Money from transactions)

Downloads, churn, virality

WoM, app ratings, CAC

CLV, ARPDAU

Spinoffs, publishers

(Money from active users)

Traffic, visits, returns

Content virality, SEM

CPE, affiliate %, eyeballs

Syndication, licenses

(Money from ad clicks)

Page 80: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Better: bit.ly/BigLeanTable

Page 81: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Drawing some lines in the sand.

Page 82: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

A company loses a quarter of its customers every year.

Is this good or bad?

Page 83: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Baseline: 2-5% monthly churn• The best SaaS get 1.5% - 3% a month. They have multiple Ph.D’s

on the job.• Get below a 5% monthly churn rate before you know you’ve got a

business that’s ready to grow (Mark MacLeod) and around 2% before you really step on the gas (David Skok)

• Last-ditch appeals and reactivation can have a big impact. Facebook’s “don’t leave” reduces attrition by 7%.

Page 84: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Not knowing what normal is makes you do unwise things.

Page 85: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Baseline: 5-7% growth a week

“A good growth rate during YC is 5-7% a week,” he says. “If you can hit 10% a week you're doing exceptionally well. If you can only manage 1%, it's a sign you haven't yet figured out what you're doing.” At revenue stage, measure growth in revenue. Before that, measure growth in active users.

Paul Graham, Y Combinator

• Are there enough people who really care enough to sustain a 5% growth rate?

• Don’t strive for a 5% growth at the expense of really understanding your customers and building a meaningful solution

• Once you’re a pre-revenue startup at or near product/market fit, you should have 5% growth of active users each week

• Once you’re generating revenues, they should grow at 5% a week

Page 86: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Baseline: 10% visitor engagement/day

Fred Wilson’s social ratios

30% of users/month use web or mobile app

10% of users/day use web or mobile app

1% of users/day use it concurrently

Page 87: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Baseline: Calculating customer lifetime

25%monthly churn

100/25=4The average

customer lasts 4 months

5%monthly churn

100/5=20The average

customer lasts 20 months

2%monthly churn

100/2=50The average

customer lasts 50 months

Page 88: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Baseline: CAC under 1/3 of CLV• CLV is wrong. CAC Is probably wrong, too.• Time kills all plans: It’ll take a long time to find

out whether your churn and revenue projections are right

• Cashflow: You’re basically “loaning” the customer money between acquisition and CLV.

• It keeps you honest: Limiting yourself to a CAC of only a third of your CLV will forces you to verify costs sooner.

Lifetime of 20 mo.$30/mo. per

customer$600 CLV

$200 CACNow segment those users!

1/3 spend

Page 89: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Etsy

• Online store for creative types, founded 2005 • $525M Gross Merchandise Sales in 2011, with

19,000,000 members and 800,000 active shops offering 15,000,000 items for sale

• 1.4B pageviews per month ~2M iPhone app downloads

• Thin revenues: Etsy makes only $0.20 or 3.5% margin

• Heavy focus on Customer Lifetime Value (buyer and seller) • Actually residual lifetime value; they take this

pretty seriously.

Page 90: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Etsy

• The best customers to target are • Recent high-profile customers • Old-time best customers about to

churn or just churned • Tiered campaigns

• Bronze/silver customers: reinforcement, nudges

• Gold customers: premium services • Platinum customers: recognition

• What they watch: • Growth of individual product categories • Time to first sale by a user • Average order value • Percentage of visits that convert to a

sale • Percentage of return buyers • Distinct sellers within a product

category • Time-to-first-sale and average order

value by product category

Roberto Medri, Etsy

Page 91: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

The Lean Analytics cycle

Page 92: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Draw a new linePivot orgive up

Try again

Success!

Did we move the needle?

Measure the results

Make changes in production

Design a test

Hypothesis

With data:find a

commonality

Without data: make a good

guess

Find a potential improvement

Draw a linePick a KPI

Page 93: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Do AirBnB hosts get more business if their property is professionally photographed?

Page 94: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Gut instinct (hypothesis)Professional photography helps AirBnB’s business

Candidate solution (MVP)20 field photographers posing as employees

Measure the resultsCompare photographed listings to a control group

Make a decision Launch photography as a new feature for all hosts

Page 95: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

5,000 shoots per month by February 2012

Page 96: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Hang on a second.

Page 97: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Gut instinct (hypothesis)Professional photography helps AirBnB’s business

REALLY?

Page 98: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Draw a new linePivot orgive up

Try again

Success!

Did we move the needle?

Measure the results

Make changes in production

Design a test

Hypothesis

With data:find a

commonality

Without data: make a good

guess

Find a potential improvement

Draw a linePick a KPI

Page 99: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

“Gee, those houses that do well look really

nice.”

Maybe it’s the camera.

“Computer: What do all the

highly rented houses have in

common?”

Camera model.

With data:find a commonality

Without data: make a good guess

Page 100: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Circle of Moms: Not enough engagement• Too few people were

actually using the product

• Less than 20% of any circles had any activity after their initial creation

• A few million monthly uniques from 10M registered users, but no sustained traction

• They found moms were far more engaged • Their messages to one another were on average 50% longer • They were 115% more likely to attach a picture to a post they wrote • They were 110% more likely to engage in a threaded (i.e. deep)

conversation • Circle owners’ friends were 50% more likely to engage with the circle • They were 75% more likely to click on Facebook notifications • They were 180% more likely to click on Facebook news feed items • They were 60% more likely to accept invitations to the app

• Pivoted to the new market, including a name change • By late 2009, 4.5M users and strong engagement • Sold to Sugar, inc. in early 2012

Page 101: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Landing page design A/B testing

Cohort analysis General analytics

URL shortening

Funnel analytics

Influencer Marketing

Publisher analytics

SaaS analytics

Gaming analytics

User interaction Customer satisfaction KPI dashboardsUser segmentation

User analytics Spying on users

Page 102: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Growth hacking

(is a word you should hate but will hear a lot about.)

Page 103: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Growth hacking, demystified.

Find correlation

Test causality

Optimize the causal factor

Pick a metric to change

Page 104: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Is social action a leading indicator of donation?

http

://bl

og.ju

stgi

ving.

com

/nine

-reas

ons-

why

-soc

ial-a

nd-m

obile

-are

-the-

futu

re-o

f-fun

drais

ing/

Page 105: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Is mobile use?ht

tp://

blog

.just

givin

g.co

m/n

ine-re

ason

s-w

hy-s

ocial

-and

-mob

ile-a

re-th

e-fu

ture

-of-f

undr

aising

/

Page 106: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Guerrillamarketing

Data-drivenlearning

Subversiveness

GROWTHHACKING

Page 107: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

AirBnB and Craigslist

Page 108: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 109: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 110: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 111: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Take baby steps.

Page 112: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Netflix

Page 113: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Tesla

http://www.hdwallpapersinn.com/wp-content/uploads/2012/12/600-tesla.jpg

Page 114: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Twitter’s 140-character limit isn’t arbitrary. It’s

constrained by the size

http://i.i.cbsi.com/cnwk.1d/i/tim/2011/11/18/sms_screen_twitter_activity_stream_270x405.png

Page 115: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

http://www.flickr.com/photos/bootbearwdc/1243690099/

Think subversively.

Page 116: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

To summarize:

Page 117: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

1. Define your business model

Page 118: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

2. Draw a system diagram

Page 119: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

3. Decide what stage you’re at

Page 120: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

4. Identify the One Metric That Matters (usually the one that is most broken)

Page 121: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

5. Use the cycle to experiment until you’ve achieved

the desired result.

Page 122: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

6. Set up monitoring for this metric in case it breaks, and choose a new

OMTM

Page 123: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Conclusions

Page 124: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

“The most important figures that one needs for management are unknown or unknowable, but successful management must nevertheless take account of them.”

Lloyd S. Nelson

Page 125: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Pic by Twodolla on Flickr. http://www.flickr.com/photos/twodolla/3168857844

Page 126: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

ARCHIMEDES HAD TAKEN

BATHS BEFORE.

Page 127: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Once, a leader convinced others in the absence of data.

Page 128: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Now, a leader knows what questions to ask.

Page 130: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
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Page 132: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

The mobile app !customer lifecycle!

Ratings Reviews

Search

Leaderboards

Purchases

Downloads

Installs

Play

Disengagement

Reactivation

Uninstallation

Disengagement

Account"creation

Virality

Downloads,"Gross revenue

ARPU

App sales

Activation

Churn, CLV

In-app"purchases

App

stor

e!

Incentivized

Legitimate

Fraudulent

Ratings!

Page 133: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 134: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 135: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014
Page 136: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Building message maps

Page 137: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

Build a message map.1. Understand the stages a buyer goes through 2. Create benefits; mitigate objections 3. Target the message to the stage the audience is at

Page 138: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

I need a carA.

I should buya carB.

It should bea hybridC.

I should buya Honda CivicD.

Everyone in the world

Page 139: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

People who want to drive

Prospective car buyers

People looking for a hybrid

Honda Civic Hybrid owners

I need a carA.

I should buya carB.

It should bea hybridC.

I should buya Honda CivicD.

Everyone in the world

Page 140: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

“Isn’t it time you got out of the city?” campaign showing how cars make nature accessible & ridiculing

urban hipsters.

Ads showing how cars are needed any time (pregnancy, errands, urgent

business) and how a car is a “personal assistant.”

Urgency (“every time you drive a non-hybrid car you kill the planet a little”) and testimonials from buyers

who’ve saved money.

Honda branding ads and model-specific promotions.

Follow-up satisfaction campaign to encourage buyers to tell their friends

People who want to drive “I need a vehicle to get around, be productive, and enjoy my life.”

Prospective car buyers “I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

People looking for a hybrid “I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

Honda Civic Hybrid owners

I need a carA.

I should buya carB.

It should bea hybridC.

I should buya Honda CivicD.

Everyone in the world

Page 141: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

People who want to drive “I need a vehicle to get around, be productive, and enjoy my life.”

Prospective car buyers “I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

People looking for a hybrid “I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

Honda Civic Hybrid owners

Those who don’t need cars • I’m too young to drive • I’m too old to drive • I can walk or take public

transit

Car users who won’t buy • It’s too expensive for me • I will use a shared car service • It’ll get stolen

Those who won’t buy hybrids • Hybrids are gutless • Batteries are toxic & explosive • In the end it costs more than

it saves

I will buy another brand • I buy domestic • I’ve always driven a VW • Toyotas are reliable • I want something prestigious

I need a carA.

I should buya carB.

It should bea hybridC.

I should buya Honda CivicD.

Everyone in the world

Page 142: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

People who want to drive “I need a vehicle to get around, be productive, and enjoy my life.”

Prospective car buyers “I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

People looking for a hybrid “I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

Honda Civic Hybrid owners

Those who don’t need cars • I’m too young to drive • I’m too old to drive • I can walk or take public

transit

Car users who won’t buy • It’s too expensive for me • I will use a shared car service • It’ll get stolen

Those who won’t buy hybrids • Hybrids are gutless • Batteries are toxic & explosive • In the end it costs more than

it saves

I will buy another brand • I buy domestic • I’ve always driven a VW • Toyotas are reliable • I want something prestigious

Sponsor a driving school

“Give the gift of driving” campaign for grandparents.

Financing, cashback

Sell to carshares; underscore their limitations

PR on dangers of commuting, pedestrian deaths

Theft warranty, tracking services, high-end locks

Independent tests, standard metrics (0-60 in X)

Lab research, studies

ROI calculator; replacement programs

Prove Honda hires US workers

“Time to leave Germany” ads

Spontaneous accel. stories

Premium brand (Acura)

I need a carA.

I should buya carB.

It should bea hybridC.

I should buya Honda CivicD.

Everyone in the world

Page 143: AppSocially主催GrowthCon Tokyo #1: "緊急開催!実践リーンアナリティクスワークショップ" by Alistair Croll / October 24, 2014

“Isn’t it time you got out of the city?” campaign showing how cars make nature accessible & ridiculing

urban hipsters.

Ads showing how cars are needed any time (pregnancy, errands, urgent

business) and how a car is a “personal assistant.”

Urgency (“every time you drive a non-hybrid car you kill the planet a little”) and testimonials from buyers

who’ve saved money.

Honda branding ads and model-specific promotions.

Follow-up satisfaction campaign to encourage buyers to tell their friends

People who want to drive “I need a vehicle to get around, be productive, and enjoy my life.”

Prospective car buyers “I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

People looking for a hybrid “I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

Honda Civic Hybrid owners

Those who don’t need cars • I’m too young to drive • I’m too old to drive • I can walk or take public

transit

Car users who won’t buy • It’s too expensive for me • I will use a shared car service • It’ll get stolen

Those who won’t buy hybrids • Hybrids are gutless • Batteries are toxic & explosive • In the end it costs more than

it saves

I will buy another brand • I buy domestic • I’ve always driven a VW • Toyotas are reliable • I want something prestigious

Sponsor a driving school

“Give the gift of driving” campaign for grandparents.

Financing, cashback

Sell to carshares; underscore their limitations

PR on dangers of commuting, pedestrian deaths

Theft warranty, tracking services, high-end locks

Independent tests, standard metrics (0-60 in X)

Lab research, studies

ROI calculator; replacement programs

Prove Honda hires US workers

“Time to leave Germany” ads

Spontaneous accel. stories

Premium brand (Acura)

I need a carA.

I should buya carB.

It should bea hybridC.

I should buya Honda CivicD.

Everyone in the world