TAKE YOUR READINGS WHEREVER YOU GO

Metrics: because everything

countsJusto Hidalgo@justohidalgo

Hi!

■ Co-founder, • Worry about metrics

■ Data Integration and Management, Product Strategy and Innovation

■ Ph.D. in Computer Science on Data Integration and Web Automation

■ Ergo: Love Data

■ @justohidalgo

A service to read and discover digital books that works on any device

@justohidalgo

Metrics

Some tools

Conclusions

Eat pizza

My goals today

Qualitative measurement• Competitive landscape, UX quality, …

Standard financial metrics• Revenue, Balance, Burn rate, Runway, …

All possible metrics in the world• As many as asses

What I won’t talk about

Let’s talk about metrics and startups!

Watch this…

500startups’ Dave McClure

… and this…

Carsonified’s Ryan Carson

… and read this!

AARRR

Acquire Activate Retain Refer Get Revenue

SEOSEMCampaignsEmailBlogs…

Landing PageProduct Features…

Content (blogs, articles, …)EmailsAlerts…

CampaignsEmails…

Shopping cartSubscriptionsLead Gen…

traffic social business

Traffic Metrics

How do people find your site?

Acquisition

@justohidalgo

15 seconds in “La 1”

Videos work quite fine

MetricsNumber of visits Distributions (per browser, region,

…)

Number of page views

Bounce rate

How sticky is your site?

AActivation

Metrics

Nov-1

1

Dec-1

1

Jan-

12

Feb-

12

Mar-1

2

Apr-1

2

May-1

2

Jun-

12

Jul-1

2

Aug-1

2

Sep-

1240000

45000

50000

55000

60000

65000

70000

75000

80000

85000

Time per page

Time on site

# Sign ins!!! Recency (time since user did something meaningful)

(and churn as well!!!)

Biggest Apple Reseller in Spain

1-year subscription to 24s per iPad/Mac purchased

@justohidalgo

Why do users come back?

AARetention

Number of unique/returning visitors

Visits over time

Average session time

Metrics. The standard ones…

D/WAU: Daily/Weekly Active Users

MAU: Monthly Active Users

Stickiness =

… engagement…

D/WAU

MAU

# Active readers

# Books read per user

Pages read per active reader per month

… but also domain-specific!!!

Pages read per paid user per month

Users becoming digital librarians

Social Metrics

Do people talk about your site?

AARReferral

Visitor

Contributor

Distributor

Types of users

Curation the unbeatable experience of a bookstore

Curation bookshelves

Every user, a librarian

Amplification rate: • (#shares, #RTs, …)

K-Factor = AR * conversion rate• = 1: steady state• > 1: growth

➤ 1.4 < x < 2.1 => hot & viral!!!

• < 1: decline

Virality

% viral hosts

Contact rate per active host

Duration of each active host’s infectious time period

Infection conversion

Source: http://framethink.wordpress.com/2008/01/15/the-four-viral-app-objectives-aka-social-network-application-virality-101/

The Four Viral App Objectives

@justohidalgo

Business Metrics

Do you make money?

AARRRevenue

Churn

Lifetime Value = 100%

LTV

Sou

rce:

http

://bl

og.k

issm

etric

s.co

m/h

ow-t

o-ca

lcul

ate-

lifet

ime-

valu

e/

Churn rateARPU *

Of course, LTV > CAC

But, moreover: LTV > 3x CAC

LTV vs CAC

Time

Users

Delayed subscription(test the service & engage)

Free

Premium

Conversion Rate

@justohidalgo

Freemium. Conversion Rate

time/conversion rate

Pri

ce/

pag

e

Growth

Profit threshold

Consolidation

Freemium for Books. Price per page

@justohidalgo

7. Tools

AnalyticsHeatmapsSocial media

Conclusions

1. Measure from Day 1

@justohidalgo

2. Have someone taking care of it

3. Only measure what you truly care about

@justohidalgo

But again, choose right

4. Beware vanity metrics…

… they may hide an awful truth

Thanks for your time!

@justohidalgo

Justo Hidalgohttp://www.loscuentosdelabuelo.com

jhidalgo@24symbols.com

CreditsOlivier Guin, from The Noun ProjectDima Yagnyuk, from The Noun ProjectRedesign from Otl Aicher’s icon, from The Noun ProjectAxsys, from The Noun ProjectMonika Ciapala, from The Noun ProjectRob Schill, from The Noun ProjectMartin Karachorov, from The Noun ProjectAlexandre Mendes, from The Noun Project

All other icons from The Noun Project

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