Lean Analytics: A short summary
-
Upload
jan-koenig -
Category
Business
-
view
10.653 -
download
0
description
Transcript of Lean Analytics: A short summary
Jan König Lean Startup Meetup Karlsruhe @einkoenig 22.04.2013
source: O’Reilly
book content
additional stuff
group discussion?
Book Parts
1 Stop Lying to Yourself
2 Finding the Right Metric for the Right Time
3 Lines in the Sand
4 Putting Lean Analytics to Work
won’t be covered tonight
Stop Lying to Yourself 1
Data? Lean Startup? I just go with my gut feeling.
(too) many people
watch it here: http://www.ted.com/talks/tali_sharot_the_optimism_bias.html
Follow the Lean model, and it becomes increasingly hard to lie,
especially to yourself.
Instincts are experiments. Data is proof.
Do hosts with professional photography get more business?
image by mark sebastian / flickr
Gut instinct Professional photography helps Airbnb’s business
Concierge MVP 20 photographers in the field
Test results Two to three times more bookings!
You are not building a product. You are building a tool to learn
what product to build.
Finding the Right Metric 2
for right now !
Good Metrics?
image by kevin dooley / flickr
image by flopper/ flickr
comparative
image by wikia.com
understandable
image by Jeff Kubina / flickr
rate or ratio
image by Gabe Photos / flickr
changes the way you behave
image by will ockenden / flickr
image by 55Laney69 / flickr
The One Metric That Matters
1 answers the most important question you have
2 forces you to draw a line in the sand
3 focuses the entire company
4 inspires a culture of experimentation
Should you really focus on one metric?
Restaurant’s Effectiveness Metrics
Delivery Usage Customer Satisfaction Possible Interpretation
Crazy! Time to look at other metrics to improve your business.
Source: Klubeck, “Metrics”, page 149f
Great food and a loyal, but very small customer base. Maybe a bad location.
“The only game in town.” Or a product customers need but don’t want.
OK, something is wrong here. You know that.
with Triangulation
Restaurant’s Effectiveness Metrics
Customer Satisfaction Possible Interpretation
good
Source: Klubeck, “Metrics”, page 149f
good
bad
bad
without Triangulation
Delivery Usage Customer Satisfaction Possible Interpretation
focus on
ratio = staff costs
gross revenues
image by Giorgio Montersino / flickr
What Business are you in?
E-Commerce SaaS Free Mobile App
Media Site User-Generated
Content Two-Sided
Marketplaces
What Stage are you at?
Empathy Stickiness Virality
Revenue Scale
What is your OMTM?
Lines in the Sand 3
One of the most challenging things for a startup to do:
find a relevant number against which to compare yourself.
Some interesting bottom lines
Growth 5% (revenue or active users)
Engaged Visitors 30% monthly users 10% daily users
Mailing List Effectiveness 20-30% open rate 5% click-throughs
image by Robert Scoble / flickr
Should you ask for billing information upfront?
Trial users
Subscribers
Churn 1st perriod
End to end
2%
50%
up to 40%
0.6%
10%
15%
up to 20%
1.2%
Questions?