Lean Analytics - Bringing Back the Book Report
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Transcript of Lean Analytics - Bringing Back the Book Report
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Lean AnalyticsBringing Back the
Book Report
Presented at Singapore Lean Startup Circle
April 10, 2013
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Hello!● Product guy● Mix of corp and startup● 5+ years in SEA● Yahoo Product Marketing● Pollenizer SEA GM● @sonofsarah
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1980
2000
Dot Com Boom (1997 - 2000
Dot Com Crash (2000 - 2001)
...
Toyota
2010
Steve Blank - 4 Steps to the Epiphany (2005)
Lean Startup "coined" (2008)
The Lean Startup (2011)
The Lean Startup @ SXSW (2012)
The Lean Startup Conference (2012)
Lean 2.0 - The Growth of a Management Science?
Pre History
Lean Startup 1.0
Lean Startup 2.0Lean Analytics (2013)Lean UX (2013)
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Image Credit - http://brendanmarsh.com/lean/the-lean-startup-validation-board/
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Lean Analytics in a Slide
Small Batch Production
A/B TestingCohort Analysis Funnel Analysis
5 Stage Lifecycle
Startup Life Cycle Actionable Metrics
Business Model Types
Lean Principles
Analytics for Lean
Lean Analytics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
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Refresh - Actionable Metrics
Small Batch Production
A/B TestingCohort Analysis Funnel Analysis
5 Stage Lifecycle
Startup Life Cycle Actionable Metrics
Business Model Types
Lean Principles
Analytics for Lean
Lean Analytics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
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● Must go up over time
● NOT comparative
● Often a simple total
● Typically not granular
● Focused on story telling
● Not directly tied to biz. health
Vanity Metrics Actionable Metrics
EXAMPLES
● Total downloads
● FB likes
● Registered users
● Enables comparison
● Often a ratio
● Often cohort based
● Drives decision making
● Can answer the question "did that
experiment work"?
EXAMPLES
● Conversion or retention rate
● Churn rate
● Shopping cart size
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The 6 Startup Business Models
Small Batch Production
A/B TestingCohort Analysis Funnel Analysis
5 Stage Lifecycle
Startup Life Cycle Actionable Metrics
Business Model Types
Lean Principles
Analytics for Lean
Lean Analytics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
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- CAC - Conversion rate - Cart size - Return purchase - LTV (or Payback)
E Commerce
- CAC - Engagement - Free/paid conversion - Churn - LTV
SAAS
- CAC - MAU - Free/paid conversion - Churn - ARPU
Free App
- MAU - Engagement - PV (or equivalent) - CTR - CPM
Media
- MAU - Engagement - % Creators - CTR - CPM
UGC (Social)
- Inventory (Supply) - Buyers (Demand) - Search Effectiveness - Ratings
Marketplace
Takeaway - Know your funnel!
The 6 Startup Business Models
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The Lean Analytics Stages
Small Batch Production
A/B TestingCohort Analysis Funnel Analysis
5 Stage Lifecycle
Startup Life Cycle Actionable Metrics
Business Model Types
Lean Principles
Analytics for Lean
Lean Analytics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
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The Lean Analytics Stages
EMPATHY
STICKINESS
REVENUE
VIRALITY
SCALE
Takeaway - Know your stage (but feel free to use other terms)
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One Metric That Matters
Small Batch Production
A/B TestingCohort Analysis Funnel Analysis
5 Stage Lifecycle
Startup Life Cycle Actionable Metrics
Business Model Types
Lean Principles
Analytics for Lean
Lean Analytics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
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● Pick one metric that is critical to biz health
● Focus the team around it (put it on screen!)
● Optimize the hell out of it
● Pick a new metric as biz grows and changes
One Metric That Matters
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Case Study - Wooboard OMTM
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PHASE METRIC TYPE METRIC
Is there a problem? User Interest Company sign ups
Do we have a solution? Engagement Woos per user
Is there a market? Revenue % of premium conversions
This is a classic SaaS OMTM progression. See also Backupify.
● Phase 1 - site visits● Phase 2 - trials● Phase 3 - monthly recurring revenue
Case Study - Wooboard OMTM
Takeaway - Pick an OMTM (or at least get data focused)
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"The core idea behind Lean Analytics is this: by knowing the kind of business you are, and the stage you are at, you can track and optimize the One Metric that Matters to your startup right now."
- B Yoskovitz and A Croll
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Benchmarking
Small Batch Production
A/B TestingCohort Analysis Funnel Analysis
5 Stage Lifecycle
Startup Life Cycle Actionable Metrics
Business Model Types
Lean Principles
Analytics for Lean
Lean Analytics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
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Some Benchmarking Examples
Conversion - expect 2% - aim for 10%
Cart abandonment- expect 65%!
E Commerce
Free trial - request card - 2% try, 50% buy
Free trial - no card - 10% try, 25% buy
Monthly churn - < 5% for growth - < 2% for scale
Growth - increase customer revenue by 20% a year - upsell 2% of users/month
SAAS
App size - stay below 50MB to avoid download drop off
App CAC - Shoot for $.50 to $.75 - make sure CAC is less than LTV!
Conversion - free to aid - 2% - In app purchases - 1.5%
Free App
Takeaway - Lines in the sand are key to measuring success
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Lean Analytics Truisms● Know your funnel!● Know where you're at in the lifecycle● Establish data focus● Set clear success metrics● Instrument and track early!● Make sure that you are allocating
resources to test a measurable hypothesis
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THANK YOU