lean analytics: how to find & test innovative growth hacks using analytics

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Page 1: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Lean Analytics

Workout

DAA Hub

Phil Pearce

April 2014

Fitness Consultant

linkedin.com/in/philpearce

Page 2: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Harder, Better, Faster, Stronger

Leaner!

Page 3: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Who have we got in the room?

1. Entrepreneur – Started company 2. Corporation – Work in big company 3. Agency – Help startups

Page 4: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Have you read any of these?

Page 6: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

START

START

GH

PvT

PMF

LS

Cdev

FINISH

FINISH

FINISH

IyBITwC

TwCIyBi

P2 E4

MVP

BML

VM

Page 7: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Web Analytics Exchange

mentor 750 GA

questions answered

Tracking protection group

About Me

Phil Pearce Analytics Consultant

linkedin.com/in/philpearce

Page 8: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

I`m not an entrepreneur

Apart from

this one

Page 9: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

AdWords

But... I have done alot of agency consulting & I worked for some innovative startups

Sold for €16m

Pivoted

Changed business

model IPO in ~1yrs

Funded by

Gwyneth Paltrow

Sold for €37m

Crazy growth & IPO plans

IPO soon

Metrics Plan

Massive Revenue

understanding own sites digital value

to understand investments

Grew Taxi booking

Revenue by €10m in 2yrs

Page 10: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Intrapreneur & Technical marketer

1. Build PPC reporting platform MS access

2. Enabled KW level ROI bidding in 2007.

3. Managed £600K pm Adwords account & out-

performed market leader.

4. Built end-to-end affiliate tracking system.

5. Reverse engineered Adwords Algo.

6. Built mathematical ClickFraud detection tool for

mobile

7. Built free version of SpeedPPC

8. Building “4clicks” SaaS for Magneto (KPIs,

dataLayer, Dashboards, Remarketing -> all auto-

enabled)

Page 11: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

GH GH

GH GH

GH GH

GH GH

GH GH

...and closet growth hacker FINISH

GH

Page 12: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

... I have author-ed a book on Amazon

Page 13: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Agenda • Start: 9:30am-12:30am

• Introduce Lean Analytics terminology

– (e.g. MVP, Iterations, Agility)

• Explain why obsessing over the performance of one key metric is vital

• Describe the difference between website and product innovating and

testing?

• Look at some examples of successful (and unsuccessful) analytics hacks

• Develop a super analytics hack for your business

• Define a process for testing and refining your hacks

Page 14: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

If you build it … they will come.

Page 15: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

They will come ... if you build it

Page 16: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Because…

Fast Feedback = Build what customers want

Favourite Food

Page 17: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Most startups don’t know what their

customers will consume

(or what they are good at making)

Hotmail

was a

database

company

Flickr

was going to

be an Video

Game platform

Twitter

was a

podcasting

company

Autodesk

made

desktop

automation

Paypal

first built for

Palmpilots

Freshbooks

was invoicing

for a web

design firm

Wikipedia

was to be

written by

experts only

Mitel

was a

lawnmower

company

Page 18: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Fast iterations/sprints using…

Build > Measure > Learn BML

Build

• (products)

Measure

• (data)

Learn

• (ideas)

Page 19: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Fast iterations/sprints using…

Build > Measure > Learn (repeat) BML

Build

• (products)

Measure

• (data)

Learn

• (ideas)

Page 20: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Even the book uses lean

principles… 1. 5th edition in 8months (new

edition every built

1.5months!)

2. “We liked to hear from you”

feedback section in front &

online blog comments

encouraged.

3. Learnings have spawned

start-up conferences

Page 21: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Build > Measure > Learn

Measure

Page 22: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Problem:

We lie to ourselves

“We” are amazing!

Page 23: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Reality check…

Page 24: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

…Analytics to the rescue

Page 25: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Analytics is the measurement of

movement towards your business

goals.

Page 26: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

In a startup, the purpose of analytics is

to iterate to product/market fit

before the money runs out.

Page 27: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

I have two coins.

Atleast one of them is heads.

Page 28: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

What is the % probability

that the other is tails?

Page 29: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Guess…

Page 30: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Tails

Tails

Heads

Tails

Tails

Heads

Heads

Heads

Page 31: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Heads

Tails

Tails

Heads

Heads

Heads

2 of 3 (66%)

are tails.

Page 32: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Some fundamentals.

Page 33: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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

(Miles Per Hour)

Behavior

changing

If you’re busy

explaining the

data, you won’t

be busy acting

on it.

Page 34: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

simplest

rule

Not a good metric.

If metric won’t

change how you

behave, it’s…

Page 35: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Metrics help you know yourself.

You are

just like

Customers that

buy >1x in 90d

Your customers

will buy from you

Then you are

in this mode

Acquisition 70% of retailers

Once 1-15% Low acquisition

cost, high

checkout

Hybrid 20% of retailers

2-2.5 per year

15-30% Increasing return

rates, market share

Focus on

Loyalty 10% of retailers

>2.5 per year

>30% Loyalty, selection,

inventory size

(Thanks to Kevin Hillstrom for this.)

Page 36: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 37: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 38: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Rumsfeld on Analytics

(Or rather, Avinash Kaushik channeling Rumsfeld)

Things we

know

don’t

know

we know Are facts which may be wrong and

should be checked against data.

we don’t

know

Are questions we can answer by

reporting, which we should baseline

& automate.

we know Are intuition which we should

quantify and teach to improve

effectiveness, efficiency.

we don’t

know

Are exploration which is where

unfair advantage and interesting

epiphanies live.

Page 39: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

May

A/B test:

Changing one thing

(i.e. color) and

measuring the

result (i.e. revenue.)

Apr Mar

0

Jan Feb

Segment:

Cross-sectional

comparison of all

people divided by

some attribute (age,

gender, etc.)

Slicing and dicing data 5,000

Acti

ve

users

Cohort:

Comparison of

similar groups

along a timeline. (this is the April cohort)

Multivariate

analysis

Changing several

things at once to

see which correlates

with a result.

Page 40: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Which of these two companies

is doing better?

Page 41: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Is this company

growing or stagnating?

Which of these two companies has the best

Revenue/Customer?

January February March April May

Rev/customer $5.00 $ 4.50 $4.33 $4.25 $4.50

Cohort January February March April May Averages Cohort

group5 € 5.00 € 6.00 € 7.00 € 8.00 € 9.00 € 7.00

group4 € 3.00 € 4.00 € 6.00 € 7.00 € 5.00

group3 € 2.00 € 2.00 € 5.00 € 3.00

group2 € 1.00 € 1.00 € 1.00

group1 € 0.50 € 0.50

Page 42: Lean Analytics: How to find & test innovative Growth Hacks using Analytics
Page 43: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 44: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

• 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 45: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Which means it’s time to talk

about correlation.

Page 46: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Number of Analysts

Chess StarTrek correlated Liked Maths

causal

Number of Analysts

Correlated vs Causal P2 E4

Page 47: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Correlated vs Causal

But it is not the cause!

Strong Correlation

Page 48: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 50: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Growth hacking, demystified.

Find

correlation

Test

causality

Optimize the

causal factor

Pick a metric

to change

Page 51: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Why is Nigerian spam so badly

written?

Page 52: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 53: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Turns out the word “Nigeria” is the best

way to identify promising prospects.

Page 54: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Nigerian spammers

really understand their target market.

They see past vanity metrics.

Page 55: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

The Lean Analytics framework.

Page 56: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 57: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

@agatestudio

Lean Analytics Stages

Empathy • I’ve found a real, poorly-met need & reachable market faces

Stickiness • I’ve figured out how to solve the problem, in a way they will adore and pay for!

Virality • I’ve built the right product/features/functionality that keeps users around.

Revenue • The users and features fuel growth organically and artificially.

Scale • I’ve found a sustainable, scalable business with right margin in a healthy ecosystem.

Page 58: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

1. Ecommerce

2. Two sided marketplace

3. SaaS

4. Mobile app

5. Media/Publishing

6. User generate content

Six business model types

Page 59: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Model + Stage = One Metric That Matters.

One Metric

That Matters.

The business you’re in

E-Com 2-Sided SaaS Mobile Media UCG

Empathy

Stickiness

Virality

Revenue

Scale

Th

e s

tag

e y

ou

’re a

t

Page 60: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Really? Just one?

Page 61: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Yes, one!

Page 62: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Because… In a startup`s “focus" is

hard to achieve.

Page 63: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Having only one metric

resolves this problem.

Page 66: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Revenue stage:

CompareAndSave.com

(2-sided marketplace)

• Focus on one metric of CTR

• Reduced CPC

• Increased RPC (Effected of reverse economies of scale &

tiered cpa volumes)

• Marketplace: Consumers + Banks

Technically a “comparison engine”

Page 67: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Empathy

Stickiness

Virality

Revenue

Scale

E-

commerce SaaS Media

Mobile

app

User-gen

content

2-sided

market

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 68: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Workshop Task: 1. Select business type

(E-Com, 2-Sided, SaaS, Mobile, Media, UCG) 2. Determine Stage

(Empathy, Stickiness, Virality, Revenue, Scale) 3. Pick one metric 4. Set line in the sand (benchmark)

Useful sheet bit.ly/BigLeanTable

Page 69: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Other measurement models bit.ly/kpishake

Page 70: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

What other metrics

do you want to know about?

Page 71: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Drawing some lines in the sand.

Page 72: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

A company loses a quarter of its

customers every year.

Is this good or bad?

Page 73: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Baseline:

10% visitor engagement/day

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

Fred Wilson’s social ratios

Page 74: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

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 75: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Who is worth more?

Lifetime:

$200

Lifetime:

$200

Today

A

Roberto Medri, Etsy

B

Visits

Page 76: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

The Lean Analytics cycle

Page 77: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Did we move the

needle?

Make changes

in production

Hypothesis

Design a test

Make changes

in production

Measure the

results

Success!

Pivot or give

up

Pick a KPI

Find a potential

improvement

Draw a line

With data: find

a commonality

Without data:

make a good

guess

Draw a new line

Repeat test Did we

move the

needle?

Page 78: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Do AirBnB hosts

get more business

if their property is

professionally

photographed?

Page 79: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Gut instinct (hypothesis)

Professional photography helps AirBnB’s business

Candidate solution (MVP)

20 field photographers posing as employees

Measure the results

Compare photographed listings to a control group

Make a decision

Launch photography as a new feature for all hosts

Page 80: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

5,000 shoots per month

by February 2012

Page 81: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Draw a new line

Pivot or

give up Find a potential

improvement 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

Draw a line Pick a KPI

Page 82: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

“G e e, t ho s e

ho u se s t ha t d o

w e ll l o o k r e a l l y

n i c e.”

Ma y be i t ’s t he

c a m er a .

“C o m pu ter : Wha t

d o a l l t he

h ig hl y r e n te d

ho u se s ha v e i n

c o m m o n ?”

C a m er a m o d e l .

With data:

find a commonality

Without data: make a

good guess

Page 83: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Some non-tech

examples.

Page 84: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

I lied. Everyone is a tech company.

Page 86: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Let’s pick on restaurants

for a while.

Page 87: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

A line in the sand

Labor costs

Gross revenue

30%

20%

Just right

Understaffed?

= 24%

Too costly?

Page 90: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Is tip amount a leading indicator of long-

term revenue?

Page 91: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Why does every table get the same

menu?

Page 93: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Growth hacking

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

Page 94: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Growth hacking, demystified.

Find

correlation

Test

causality

Optimize the

causal factor

Pick a metric

to change

Page 95: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Guerrilla

marketing

Data-

driven

learning

Subversiveness

GROWTH

HACKING

Page 96: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

• 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)

(These are also great segments to analyze.)

Leading indicators: Growth Hacks

Read more examples:

http://www.slideshare.net/mattangriffel/growth-hacking

Page 97: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

• Growth hacking is simply what marketing should have been

doing, but it fell in love with Don Draper and opinions along the

way

• Optimize a factor you think is correlated with growth

The growth hack

Page 98: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Growth Hacking examples

• Hotmail – P.S. I love you

• Drobbox – Refer a friend

• Facebook – Exclusive network appeal

• Twitter – follow celebrities

Read more examples:

http://www.slideshare.net/mattangriffel/growth-hacking

Page 99: Lean Analytics: How to find & test innovative Growth Hacks using Analytics
Page 100: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

AirBnB and Craigslist

Page 101: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

What is PPC Growth?

Adwords Marketing

Conversion Data

Sales Growth

Classic model 1. Create new marketing campaign. 2. If CPA data is within target threshold = then growth achieved 3. Then Increase marketing. Repeat above steps, until threshold reached.

Repeat until CPA threshold reached

Page 102: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

And… needs to be Scalable, Repeatable and Sustainable.

Growth Hacking for PPC SaaS

Adwords

Marketing Product Data

Growth Hacking

Note: “Product” could be value-proposition or incentives

Page 103: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

SaaS hack

Page 104: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Have you Heard of “Battleships”?”

Growth Hacking a PPC tool…

Page 105: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Growth Hacking a PPC tool…

Download CTR battleships http://bit.ly/battleshipsctr

Page 106: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

And… needs to be Scalable, Repeatable and Sustainable.

Growth Hacking a PPC tool…

Adwords

Marketing

(capture/test initial lead)

Product

(Variation on QS grader)

Adwords API Data

Growth Hacking

Same product but different UI/Landing page - value proposition tweaked and made fun / viral… e.g every one likes to show off :)

Page 107: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Growth Hacking a PPC tool…

Winner must tweet winning strategy #ctrbattleships Or take a photo them holding the Prize! #ctrbattleships

Download CTR battleships http://bit.ly/battleshipsctr

Page 108: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Some tools and traps

Page 109: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Traction graphs

Your business model

The stage you’re at

Your one metric

... change often if

you’re doing it right.

So how do you track

that over time?

Page 110: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Traction graphs

Jan

Signup

s per

day

Feb Mar

Conversio

n rate

Apr

Chur

n rate

May Jun

Viral

coefficient

This axis changes for

each metric

Page 111: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Traction graphs

Jan

Signups

per day

Feb Mar

Conversion

rate

Apr

Churn

rate

May Jun

Viral

coefficient

0%

Page 112: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Use vanity to get to

meaningful metrics

• Your goal is to produce outcomes

• If the outcomes require action, and vanity

motivates actors, use it!

• But show how the vanity metric is a leading

indicator of the real one! x

Web traffic

Revenue

Activation

Cart

Size

Conversion

rate

VM

Page 113: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

“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 115: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

ARCHIMEDES HAD TAKEN BATHS BEFORE

Page 116: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Once, a leader leader/king

convinced others in the

absence of data.

Page 117: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Now, a leader/king knows what

questions to ask.

Page 118: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Alistair Croll & Ben Yoskovitz

Special thanks to…

Please buy

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Page 120: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

Appendix:

Useful videos

Page 121: Lean Analytics: How to find & test innovative Growth Hacks using Analytics

15min Lean Start-up Video

https://www.youtube.com/watch?v=zOX1vC7_n6s