yona shtern, co-founder and ceo beyond the rack
DESCRIPTION
Real Growth - How to Measure What Really MattersTRANSCRIPT
How To Measure What Really Matters
Yona ShternCo-Founder & CEOBeyond the Rack
A little bit of context. BTR is a private sale club…. Comprised of 3,000 brand partners
and 4 million members
CONFIDENTIALCONFIDENTIAL
And we measure everything…..
4
1/09
2/09
3/09
4/09
5/09
6/09
7/09
8/09
9/09
10/09
11/09
12/09
1/10
2/10
3/10
4/10
5/10
6/10
7/10
8/10
9/10
10/10
11/10
12/10
1,067 6,71517,134
26,21251,312
80,436119,136
152,482205,600
257,668371,835
496,629623,612
757,596898,119
1,048,272
1,187,599
1,381,856
1,596,689
1,874,250
2,086,755
2,425,957
2,587,504
2,746,160
2,917,003
3,076,465
3,286,109
3,532,841
1,0675,648
10,419
9,07825,100
29,124
38,700
33,346
53,118
52,068
114,167
124,794
126,983
133,984
140,523
150,153
139,327
194,257
214,833
277,561
212,505
339,202161,547
158,656
170,822
159,462
209,644
246,732
Membership Growth
Cum. Members New Members
CONFIDENTIALCONFIDENTIAL
From the impact of social media on our marketing budget
Viral channels continue to produce high quality members
5
6% 11% 14% 13% 13% 16% 12% 11% 12% 17% 20% 15% 14% 19% 24%17% 21% 26%
26%24%
25% 27% 27% 21%21%
16%22% 17%
27% 34%22%
20%22% 42%
27% 23%
68% 65% 61% 61% 60% 63% 68%73%
67% 66%53% 50%
64% 61%54%
42%52% 51%
1/10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 2/11 3/11 4/11 5/11 6/11
Direct Invitations Paid Channels
Buyers by Frequency
Revenue by Customer Type
To how much of our revenue comes from repeat customers
6
Mar-09
Apr-09
May-09
Jun-09Jul-0
9
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10Jul-1
0
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
97% 87% 79% 82% 79% 77% 78% 73% 75% 72% 67% 65% 65% 58% 58% 58% 57% 58% 54% 54% 52% 50% 52% 49% 48% 46%
3% 13% 21% 18% 21% 23% 22% 27% 25% 28% 33% 35% 35% 42% 42% 42% 43% 42% 46% 46% 48% 50% 48% 51% 52% 54%
First time buyers Repeat buyers
Mar-09
Apr-09
May-09
Jun-09Jul-0
9
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10Jul-1
0
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
86%74% 69% 67% 63% 66% 65% 59% 58% 53% 49% 48% 46% 41% 39% 41% 40% 38% 35% 35% 33% 33% 31% 32% 32% 31%
14%26% 31% 33% 37% 34% 35% 41% 42% 47% 51% 52% 54% 59% 61% 59% 60% 62% 65% 65% 67% 67% 69% 68% 68% 69%
First time buyers Repeat buyersCONFIDENTIAL 6
CONFIDENTIAL
$4.9$36.7
$105.6
$188.2
$0
$100
$200
$300
2009A 2010E 2011E 2012E
CONFIDENTIAL
To all that financial stuff investors are interested in….
7
EBITDA
’10-’12 CAGR: 126%
’10-’12 CAGR: 1
33%
($3.7)
($13.0)
$0.0
$11.6
($20)
($10)
$0
$10
$20
$30
2009A 2010E 2011E 2012E
$1.5
$11.9
$35.9
$64.8
$0
$20
$40
$60
$80
2009A 2010E 2011E 2012E
Gross Demand (Product-Only) Gross Sales (Product-Only)
Unlanded Gross Margin
$5.5
$44.0
$113.7
$209.1
$0
$100
$200
$300
2009A 2010E 2011E 2012E
’10-’12 CAGR: 118%
¹ Based on fiscal year ending January 31st.
The Bottom Line is If You Aren’t Measuring….
You’re Guessing
So The Short Answer is …. Measure Everything
Marketing
• CPA• ROI• NPS• Conversion
Operations
• Variable Costs• Fixed Costs• Overhead
Merchandising
• Gross Margin• Landing Costs• Inventory Turn
HR
• G & A• Turn Over• Satisfaction
And Then Build A Model
This Kind of A Model – Financial Model
Measuring Brings Value
• Become a Metrics-Driven Company• Bottom-Up View
• Provides Visibility to Key Break Points• Overhead• Economies of Scale• Demonstrate Scale
• Allows You to Focus around KPIs• “Shit Sorter”• Organization Can Coalesce and Focus
• Answers Fundamental Questions of Viability
Measuring is Iterative
Answers Yield More Questions
It’s Not A Secret… Sharing is Caring
Develop a Dashboard of KPI• Each element should by tied in a
material way to achieving your goal• Common language and definitions• Align objectives and priorities
Share with key stake holders• Employees• Investors• Partners (Suppliers / Customers)
Tailor Data Sets To Your Audience• Give them the big picture
