product roadmap statistics are your road signs

Product RoadmapStatistics are your road signs

Who am I?

Why road signs?

You won’t know which way to go without them

PS.There is no Sat Nav, GPS or Google Maps to lead you directly home

The goal of every business

Time

Revenue

How to know where you are on this graph?

By gathering data and analyzing it!

1 simple reason:

Data doesn’t lie!

Divide the roadmap into 3 phases


Product Market Fit


Initial traction


Growth

CAC, MRR, ARPU, LTV, RoI, COGS, NPS

CAC (Customer Acquisition Cost),MRR (Monthly Recurring Revenue), ARPU (Average Revenue per User), LTV (Lifetime Value), RoI (Return on Investment), COGS (Cost of Goods Sold),NPS (Net Promoter Score)

Product Goals

Profitability

Cash

Growth

Other (ie Market Share)

Revenue (MRR)

Months to recover CAC

Key guideline for startups

LTV 3x CAC<

Key guideline for startups

Time to recover CAC

12 months<

How to look at profitability #1 Microeconomics

ProfitabilityMicroeconomics (per customer profitability)

CAC

LTV

How to look at profitability #2 Overall profitability

ProfitabilityOverall

Profitability (Accounting)

Revenue

Expenses

COGS

MRR

Services Revenue

How to look at profitability #3 Per employee

Profitability Profitability per employee

Revenue per employee

Expenses per employee

Drilling down to MRR

MRR

New customers from sales

funnel

Churn

Total no. of customers

ARPU

Drilling down on Microeconomics

$

Time

LTV

CAC

What’s the biggest startup killer?

The cost of acquiring users (CAC)

Are you profitable?

Customer Profitability

LTV

CAC

What is LTV?

LTV

ARPU

Cust Average Lifetime

Cost to serve

% Churn rate

LTV = ARPU x Average Lifetime of a customer - COGS (Cost to serve them)

How to calculate LTV

What is CAC?

CAC

# closed deals

Total cost of sales &

marketing

Sales funnel convertion

metrics

Marketing program

cost

Level of touch

required

Personnel cost

CAC = Total cost of sales&marketing / Number of deals closed

How to calculate CAC

How to put this data into action?

Old School funnel

What did the marketing normally do??

Lead acquisition

Who here knows who is Dave McClure?

What are Pirate Metrics?

Pirate Metrics

Why Pirate Metrics? (AARRR!!!)

AARRR

Users come to your site/product from various sources

Examples of Acquisition Tactics

● SEO● SEM● PR● Social● Content

Marketing● Biz Dev● Webinar

● Referrals● Free trial● Newsletter● Guest post● Outreach● Q&A

Disclaimer:You don’t need huge volumes to acquire customers. If you have a few hundred of very targeted visitors every month - its fine!


Users enjoy 1st visit: ‘happy’ user experience and leave contact info

Examples of Activation Tactics

● Social● Content

Marketing● Newsletter

● Lead nurturing● On-boarding● Screencasts

Difference between B2B & B2C

Example of a B2B Activation● Website form● RFP

Examples of B2C Activations● Create account● Buy something● Leave email


Users enjoy 1st visit: ‘happy’ user experience

Users come back, visit the site multiple times

Examples of Retention Tactics

● Social● Content

Marketing● Newsletter

● Lead nurturing● On-boarding● Screencasts




Users conduct some monetization behavior

Examples of Revenue Tactics

● Scarcity● Discount● Annual plan● Up-sells

● Cross-sells● Evangelism● Guarantees● Support




Users like the product so much they refer it to others

Users conduct some monetization behavior

What should be the job of marketing?

Each source should have a dedicated funnel

Example1000 (100%)

Example

100 (10%)

1000 (100%)

Example

50 (5%)100 (10%)

1000 (100%)

Example

20 (2%)

50 (5%)100 (10%)

1000 (100%)

5 (0,5%)

Example

20 (2%)

50 (5%)100 (10%)

1000 (100%)

Friends, press, school, SEO, referral

Facebook

Add 5 or more friends

FacebookFriends, press, school

You come back to see what are your friends doing

Facebook


Friends, press, school

You click on ads in your news feed

Facebook




You ask your friends to join because you want to follow what they’re doing

Facebook

You click on ads in your news feed




Friends, press, SEO, referral

Dropbox

Set up your account to store and share files

DropboxFriends, press, SEO, referral

You want to upload more files or use the ones you’ve uploaded

Dropbox



You need more space, so you buy it

Dropbox




You need more space so you invite your friends - invites give you both more space

Dropbox

You need more space, so you buy it





Uber

Your first ride (most likely for free)

UberFriends, press, SEO, referral

You want to use your remaining free rides / You never want to go back to regular taxi services

UberFriends, press, SEO, referral


You start paying for rides because your free codes are gone

Uber




You and your friend both get free codes for the referral

Uber

You start paying for rides because your free codes are gone




PS. My referral code is atbe5wgge

SEO, Social Media, Referral, Influencers

eStore with socks

Unique sock patterns & great delivery terms

eStore with socksSEO, Social Media, Referral, Influencers

Remarketing kept stalking you until you really wanted these socks

eStore with socks



You bought the socks you liked so much….and 3 other pairs

eStore with socks




The newsletter said that if your friend bought 4 pairs, the you’d get one for free so you talked your friend into it

eStore with socks

You bought the socks you liked so much….and 3 other pairs




SEO, Social Media, Referral, Blog

CRM

Great features, many integrations, good pricing

CRMSEO, Social Media, Referral, Blog

You left your email and the nurturing campaign together with remarketing

CRM



You decided to give it a go and after 30 days it was all you ever needed, so you started to pay

CRM




You were so happy with the features, customer support and UI that when a friend was looking for a CRM - you recommended this one

CRM

You decided to give it a go and after 30 days it was all you ever needed, so you started to pay




SEO, Social Media, Referral, Blog, Ads

Apple Equipment Fixing Service

Good reputation, they can fix my problem, pricing is within my range

Apple Equipment Fixing ServiceSEO, Social Media, Referral, Blog, Ads

I keep seeing their ads everywhere (remarketing) or I signed up to their newsletter and I need to fix my iPad




You send/give them your device to fix





They did it really quick, the courier was free, they ask you to refer 5 friends and they will get you your next fix on the house while your 5 friends get a 15% discount - win win!


You send/give them your device to fix




Learn more on our meetups!

Any questions ?You can find me at◉ [email protected]◉ facebook.com/growthenginexyz

Thanks!

mailto:[email protected]