Metrics · 6 Metrics er ikke til for dine investorer! • De er til for at du kan styre din...
Transcript of Metrics · 6 Metrics er ikke til for dine investorer! • De er til for at du kan styre din...
MetricsHvordan arbejder du effektivt med metrics?
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Lidt om mig
• Iværksætter på den anden side af bordet• Finance, hardware/software, bl.a. i Kina• Har arbejdet ca. 4 år i VHHR• Arbejder udelukkende med fokus på early stage
tech startups• Ser omkring 100 startups/år• Arbejder med omkring 50
• Arbejder med mange startups omkring metrics
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Hvor møder jeg metrics
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Metrics er ikke til for dine investorer!• De er til for at du kan styre din virksomhed
mest effektivt
• Men der er SÅ mange forskellige ting man kan se på – hvor skal man starte?
• Det kommer an på din type af virksomhed og hvilket stadie du er på!
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Lad os tage et par eksemplerType:• SaaS løsning• 2-sidet markedsplads• Socialt netværk• Rejsesøgemaskine
Stadie:• Jo tidligere du er: Jo mere kvalitativt og jo mere fokus på brug af dit
produkt
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Det er blevet ”let”(ere) at måle
• Software startups (og virksomheder der sælger på nettet) har en række analytics redskaber der gør det lettere at måle metrics.• Google Analytics• Mixpanel/Flurry/etc. etc. etc.
• Men de kræver stadig at du har defineret hvilke metrics der er vigtige før du kan bruge dem til noget!
T he O nl y Metric That Matters b y a Partner atGreylock Partners
www.productschool.com
Elman
The Only MetricThat MattersJosh
We’re all here to build products thatmatter.
We want to make an impacton our user’s lives.
We start with a launch. Thatmeans zero users. Hopefully theycome (or we bring them).
We start hearing stories.Anecdotes.
The plural of anecdote is data.
We have so much data now..
..it can be overwhelming
There are lots of data points…
“ We just topped “250 million PVs inthe last 30 days”200,000 sign ups ”
“We have over1 million downloads”
“Our D7 retention is 60%.D30 is 22%. Is that
good?”“ We have a 50%DAU/MAU ratio ”
So where do you start?
Just focus on one thing:
Arepeople using your product?
OK, but how can Itell?
1 Purpose: Whydo they use your product?2 Core Action: What is the key behavior?3 Cycle: Do they use it at the frequency you expect?
Key metric: How many times usersperform the core action on theexpected cycle
LinkedInCirca2005
PurposeFindand be found.
Core Action & CycleFind: search for other2-3x a week
members
Befound: respond to inquirieswhen you receive them 1-2x ayear
Yelp
PurposeFindlocal businesses/services. Andreview them.
Core Action & CycleSearchers: search for businesses 2-3x a week.
Reviewers: write a new review1x/month
PurposeStay connected with friends.
Core Action & CycleCheckin with friends and seewhat they are up to.
Sharing 2-3x/day
DiscordPurpose: Connect and communicate with friends around playing PC games.
Core Action & CycleOpen the app to see who wants toplay games and get on a live channel.
3-4x/week (depends on howoften you play)
Airbnb
PurposeBook a place to stay.
Core ActionSearch and book trip options.
Cycle3-5x / year
Your “core users” are your best users
Top of Mind: They come directly, not because ofreminder, notification, or special deal
a1
Track: % users with direct traffic / engagement
Recurring: Do they come back again and again2Track: % users who return weekly/monthly
Referring: Do they share it with others?3Track: k-factor, and % users who are referrers
Arepeople really, reallyusing your product?
Step 1: Analyze month over monthusage
# days visited inmonth 1
%w
hovi
site
dN
days
inm
onth
2
Step 2: Determine threshold for core
Cold Casual Core
Step 3: Understand20%
activation buckets90% 8
%Core
40%40
% Casual
Curious
New 1
%10% 4
%Cold 50
%40% 95
%
dataStep 4a: Find out why — from your
1/3 - mutualfollows
2/3 - one-wayfollows
Following morethan 30 accounts
Step 4b: Find out why — talk to themAsk these questions:1)in2)to3)
Whatprompted you to sign up and try out our productthe first place?What did not meet your expectations or what was hardfigure out?Whydid you come back to give the product anothertry?
4) Whatworked the second time that got you using itmore frequently?
Cherish your core users. They areyour superheroes.
IhaveI
a few core users.want more!
Problem 1Not enough people show up.
Clone your core users through virality
DemonstrationVirality
InfectiousVirality
Word-of-mouthVirality
Problem 2People sign up, but no one stays.
Onboard users all the way to core.
Learn Flow: Teach your users your product as theysign up. Take your time. They are there to learn. Don’trush it.
Teaches users what the product
does
Shows a human curated list of the
best content
Encourages new users to engage and
create content
Welcome Week: If users don’t do it the first day,nudge them to come back and keep going
Use email to educateusers on the product.
new
Social Pressure: If friends are on the system, usethem to welcome, teach, and connect with the newfolks
Problem 3People
astay,little
but only forwhile.
Goback to the core analysisand extend it over quarters.
Understanding churn iscritical to your long termsuccess.
One metric to rule them all..
How many people are reallyusing your product?
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Framework 2: Pirate metrics
• Her ser vi også meget på hvordan vi får folk ind og bruge produktet!
* reminder: National Talk Like a Pirate Day is Sept 19th!
Startup Metrics for Pirates:AARRR!!!
(Startup Metrics for Product Marketing & Product Management)
Dave McClureMaster of 500 Hats
blog: http://500hats.typepad.com/website: http://www.500hats.com/
slides: http://slideshare.net/dmc500hats/
Customer Lifecycle: 5 Steps to Success
• cquisition: users come to the site from various channels
• ctivation: users enjoy 1st visit: "happy" user experience
• etention: users come back, visit site multiple times
• eferral: users like product enough to refer others
• evenue: users conduct some monetization behaviorAARRR!
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Customer Lifecycle / Conversion Behavior
Networks
1. ACQUISITION
Subscriptions, etc
Website.com
Ads, Lead Gen,Blogs, Content
Biz Dev
System Events & Time-based Features
ProductFeatures
Emails &widgets
Emails & Alerts
Homepage / Landing Page
Campaigns, Contests
Domains
EmailDirect, Tel,
TVApps & Widgets
AffiliatesBlogs
Social BizDev
PRSEMCampaigns,
ContestsSEO
Example Conversion Metrics(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. ValueAcquisition Visit Site
(or landing page, or external widget)100% $.01
Acquisition Doesn't Abandon(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)
5% $1
Activation Acct Signup(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor
(3+ visits in first 30 days)2% $5
Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25
Customer Lifecycle / Conversion Behavior
Networks
1. ACQUISITION
Marketing Channels:•••
largest-volume (#)lowest-cost ($)best-performing (%)
Website.com
Domains
EmailDirect, Tel,
TVApps & Widgets
AffiliatesBlogs
Social BizDev
PRSEMCampaigns,
ContestsSEO
Customer Lifecycle / Conversion Behavior
Activation Criteria:•
•
•
•
10-30+ seconds
2-3+ page views
3-5+ clicks
1 key feature usage
1. ACQUISITION
Do LOTS of landing pagetests & A/B tests - just make lots of dumb guesses & iterate QUICK
Website.com
ProductFeatures
Homepage / Landing Page
Domains
EmailDirect, Tel,
TVApps & Widgets
AffiliatesBlogs
SocialNetworks
BizDev
PRSEMCampaigns,
ContestsSEO
Customer Lifecycle / Conversion Behavior
Networks
1. ACQUISITION
Automated emails are simple & easyretention feature• lifecycle emails @ +3, +7, +30d
• status emails weekly/monthly
• event-based emails as they occur
Website.com
Blogs, Content
System Events & Time-based Features
ProductFeatures
Emails & Alerts
Homepage / Landing Page
Domains
EmailDirect, Tel,
TVApps & Widgets
AffiliatesBlogs
Social BizDev
PRSEMCampaigns,
ContestsSEO
Customer Lifecycle / Conversion Behavior
Networks
1. ACQUISITION
Only encourage usersrefer *after* they have
to
“happy” user experience;avg score >= 8 out of 10
Website.com
Blogs, Content
System Events & Time-based Features
ProductFeatures
Emails &widgets
Emails & Alerts
Homepage / Landing Page
Campaigns, Contests
Domains
EmailDirect, Tel,
TVApps & Widgets
AffiliatesBlogs
Social BizDev
PRSEMCampaigns,
ContestsSEO
Customer Lifecycle / Conversion Behavior
Networks
1. ACQUISITION
widgets
Subscriptions, etc
This is the part *you*have to figure out…I don’t know jack about your business
Website.com
Ads, Lead Gen,Blogs, Content
Biz Dev
System Events & Time-based Features
Emails &ProductFeatures
Emails & Alerts
Homepage / Landing Page
Campaigns, Contests
Domains
EmailDirect, Tel,
TVApps & Widgets
AffiliatesBlogs
Social BizDev
PRSEMCampaigns,
ContestsSEO
Types of Metrics & MeasurementQualitative: Usability Testing / Session Monitoring•
– Watch what users do, figure out problems & solutions from small # of users
of users
are most effective
• Competitive: Monitoring & Tracking Competitors– Track competitor activity & compare against yours; if possible compare channels,
keyword traffic, demographic targeting, user satisfaction, etc.
(see slide notes for links to tools & vendors)
• Quantitative: Traffic Analysis / User Engagement– Report what users do, track usage & conversion %'s for all or empirical sample #
• Comparative: A/B, Multivariate Testing– Compare what users do in one scenario vs another, see which copy/graphics/UI
Quantitative & ComparativeMeasurement
Conversion Criteria:•–––
best-performing (%) channels / campaigns / copylargest-volume (#) channels / campaigns / copy lowest-cost ($) channels / campaigns / copy
Quantitative & ComparativeMeasurement
Conversion Criteria:•–––
best-performing (%) channels / campaigns / copylargest-volume (#) channels / campaigns / copy lowest-cost ($) channels / campaigns / copy
• Measurement Components:–––––
Audience Segment (young women, regional metro, older singles)Channel Source (social network, SEM, organic, PR, etc) Campaign Theme / Brand Promise (“find a job”, “learn to cook”) Landing Page & CTACopy & Graphics
Activation Happy 1st Visit 30% $.25(views X pages, stays Y sec, Z clicks)
Activation Email/Blog/RSS/Widget Signup 5% $1(anything that could lead to repeat visit)
Activation Acct Signup 2% $3(includes profile data)
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor 2% $5(3+ visits in first 30 days)
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25
Example Conversion Metrics(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. ValueAcquisition Visit Site
(or landing page, or external widget)100% $.01
Acquisition Doesn't Abandon(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Retention Email Open / RSS view -> Clickthru 3% $2
Retention Repeat Visitor 2% $5(3+ visits in first 30 days)
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25
Example Conversion Metrics(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. ValueAcquisition Visit Site
(or landing page, or external widget)100% $.01
Acquisition Doesn't Abandon(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)
5% $1
Activation Acct Signup(includes profile data)
2% $3
Referral Refer 1+ users who visit site 2% $3
Referral Refer 1+ users who activate 1% $10
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25
Example Conversion Metrics(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. ValueAcquisition Visit Site
(or landing page, or external widget)100% $.01
Acquisition Doesn't Abandon(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)
5% $1
Activation Acct Signup(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor
(3+ visits in first 30 days)2% $5
Revenue User generates minimum revenue 2% $5
Revenue User generates break-even revenue 1% $25
Example Conversion Metrics(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. ValueAcquisition Visit Site
(or landing page, or external widget)100% $.01
Acquisition Doesn't Abandon(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)
5% $1
Activation Acct Signup(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor
(3+ visits in first 30 days)2% $5
Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10
Example Conversion Metrics(note: *not* actuals; your mileage may vary…)
Category User Status Conv % Est. ValueAcquisition Visit Site
(or landing page, or external widget)100% $.01
Acquisition Doesn't Abandon(views 2+ pages, stays 10+ sec, 2+ clicks)
70% $.05
Activation Happy 1st Visit(views X pages, stays Y sec, Z clicks)
30% $.25
Activation Email/Blog/RSS/Widget Signup(anything that could lead to repeat visit)
5% $1
Activation Acct Signup(includes profile data)
2% $3
Retention Email Open / RSS view -> Clickthru 3% $2Retention Repeat Visitor
(3+ visits in first 30 days)2% $5
Referral Refer 1+ users who visit site 2% $3Referral Refer 1+ users who activate 1% $10Revenue User generates minimum revenue 2% $5Revenue User generates break-even revenue 1% $25
MarketingQ: what channels / who do you market to?
••
Design & Test Multiple Mktg ChannelsSelect & Focus on
VolumeConversion
Channels with:–––
HighHighLow Cost
• Measure *deeper*not just to website
down the conversion/ landing page
funnel,
• Segment & Select channels & customers byconversion @ deepest possible level (ideally $$$)
ProductQ: how do you choose what to build?
• Choose features for conversion improvement––
80% on existing feature optimization20% on new feature development
•••
Just guess, then A/B test… A LOTMeasure conversion improvementRinse & Repeat
Founder/CEOQ: What metrics do you choose to watch?
• Hypothesize Customer Lifecycle & Refine––
Choose 5-10 conversion stepsLess, not More is better
•••
BUT measure & iterateFocus on conversion improvementDelegate each Metric to someone to OWN
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Konklusioner
• 2 overordnede typer metrics• Eksterne (Hvordan kommer de til dig)• Interne (Brugen af dit produkt)
• Hvilke metrics der er vigtigst kommer an på din type startup og dit stadie
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Lean Analytics framework
• Empathy (MVP)• Stickiness (Engagement + retention)• Virality/WOM• Reveneu (CAC/CLTV)• Scale
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Metrics for investorer
• Hvilke metrics er relevante for investorer?• SaaS – SEED• Social network – SEED• Marketplace - SEED
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Lad os tage nogle eksempler fra jer!