Customer Traction
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Jumpstarting Customer Traction and Improving Your Valuation Jonathan Boutelle CTO, SlideShare
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Transcript of Customer Traction
Jumpstarting Customer Traction and Improving Your Valuation
Jonathan BoutelleCTO, SlideShare
About
About
SlideShare’s Traction Story
1) We got a toehold
We solved one persons problem
PR worked for us(caveats)
We had a simple explanation of what we were
2) We Built a Community
Things we would have used (had they been available)
Facebook fan pages
3) We figured out a distribution strategy
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Ruby on RailsBy Jonathan Boutelle
Etech: 3/08/06
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Slideshow Transcript:1)Optimizing AJAX: by Jonathan Boutelle2)How to make AJAX fast byExecuting faster code,Running Code in advance,Using new technologies
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This is a talk I gave about Ruby on RailsAdded on 4/7/06 by jboutelle (6 slideshows, 22 favorites)
Slideshow detailsViews: 65Tags: ruby, ror, rails
Note: this is just so we can use googlesearch in the beginning, instead of writingOur own search.
Viral Distribution
Viral LoopsUser joins service
User sends 100 invites
User opens invite
10% open rate
15% conversion rate
New Distribution Channels
Paying for it
4) We became a data-driven team
Traction?
Proving Traction
Trust, but verify: outside numbers
Quantcast
Alexa
Google Analytics
• Time on Site• Unique visitors per month• Page Views per month• Share login with potential investors
Traction Example
35
User and content acquisition growing fast
70% monthly growth 16% monthly growth
Monthly growth in registered users (total ~300k)
133,956
291,860
206,632
27,768
97,028
105,44084,989
36,08145,175
54,56765,586
74,248
0
50,000
100,000
150,000
200,000
250,000
300,000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Monthly growth in slideshows (total ~255k)
52,77531,680
41,81362,804
74,432
90,755
187,766
255,341
218,141
113,221
140,615 162,195
0
50,000
100,000
150,000
200,000
250,000
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
From SlideShare Pitch Deck. March 2008
36
4.6 million monthly visitors, 11% monthly growth
Unique visitors month (in millions)
1.972.17
2.44
4.21
4.55
4.14
3.063.50
3.13
2.46
1.20
2.18 2.21 2.05
2.802.47
1.93
0.0
1.0
2.0
3.0
4.0
Apr May June July Aug Sep Oct Nov Dec Jan Feb
Alexa chart for Reach : Rank - 2300
From SlideShare Pitch Deck. March 2008
Widget growth has picked up speed
71% growth in March 50% growth in March
No of slideshows embedded
13,648
24,73031,072
38,018 38,59543,273
83,108
48,490
0
20,000
40,000
60,000
80,000
Aug Sep Oct Nov Dec Jan Feb Mar
Active widgets by month (played at least once)
26,348
63,197
77,059
88,914
87,94779,794
141,582
94,971
25,000
50,000
75,000
100,000
125,000
150,000
Aug Sep Oct Nov Dec Jan Feb Mar
From SlideShare Pitch Deck. March 2008
Money Traction vs User Traction
Macro-Metrics vs Micro-Metrics
Micro-Metrics
Measuring acquisition: funnel conversion rates
Viral loops (again)
User joins service
User sends (on aveage) 100 invites
User opens invite
10% open rate
15% conversion rate
A / B tests with google website optimizer
Measuring Retention: Cohort analysis
Joined at 1st week visit 2nd week visit 3rd week visit 4th week visit1/1/10 (4 weeks ago) 100% 60% 55% 50%1/8/10 (3 weeks ago) 100% 65% 60%1/15/10 (2 weeks ago) 100% 66%1/22/10 (1 weeks ago) 100%
Micro-Economics
• Gross profit per customer (Lifetime value of customer – customer acquisition cost)
• Decreasing churn does what to LCV?• Increasing conversion does what to CAC?
Becoming a metrics-driven organization
Metrics (v1)
Metrics (v1)
#epic fail
Metrics Challenges
• Metrics are hard …• But not sexy• Need social context to be effective
Metrics (v2)
Redacted
Redacted
Metrics (v2)
Redacted
Local Maxima
Why v2 works
• Data is ergonomic• One number + context• Social context (weekly team meetings)
v3
What metrics to focus on?
5) Some thoughts on scaling a business
Use the cloud!
Infrastructure as a service
Think Global
6)What I would have done differently
Testing demand: Sell before you build
Closing Thoughts
Have fun out there!
