This document discusses metrics that can be used to measure the performance of a digital book reading service. It covers metrics for user acquisition, activation, retention, referral, and revenue. Specific metrics mentioned include daily/weekly active users, monthly active users, number of books/pages read, viral amplification rate, churn rate, lifetime value, customer acquisition cost, and growth. The document emphasizes choosing metrics that are meaningful and avoiding "vanity metrics" that don't provide useful insights.

1. TAKE YOUR READINGS WHEREVER YOU GO
Metrics:
because everything
counts
Justo Hidalgo
@justohidalgo

2. 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

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

4. @justohidalgo

5. Metrics
Some tools
Conclusions
My goals today

6. 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

7. Let’s talk about metrics and
startups!

8. Watch this…
500startups’ Dave McClure

9. … and this…
Carsonified’s Ryan Carson

10. … and read this!

12. AARRR
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…
traffic social business

13. Traffic Metrics

14. How do people find your site?
Acquisition

16. @justohidalgo

18. 15 seconds in “La
1”

20. Videos work quite fine

21. Metrics
Number of visits Distributions (per browser, region,
…)
Number of page views
Bounce rate

22. How sticky is your site?
AActivation

27. Metrics
40000
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!!!)

28. Biggest Apple
Reseller in Spain
1-year
subscription to
24s per iPad/Mac
purchased
@justohidalgo

30. Why do users come back?
AARetention

34. Number of unique/returning visitors
Visits over time
Average session time
Metrics. The standard ones…

35. D/WAU: Daily/Weekly Active
Users
MAU: Monthly Active Users
Stickiness =
… engagement…
D/WAU
MAU

36. # Active readers
# Books read per user
Pages read per active
reader per month
… but also domain-specific!!!
Pages read per
paid user per
month

37. Metrics, metrics, metrics

38. Not enough to have a nice GUI

39. Quick!!!
• What’s the number of active subscribers who read
more than 10% of a book per month?
• How many of our Colombian users switch devices while
they read the same book?
• What’s the most read category, segmented by gender?
• What’s the number of readers per book page? Can you
draw a graph?
• We just learnt there’s a new metric investors are
using… can we process it today?
Not enough to have a nice GUI

40. Metrics… and a human touch ;)

41. Users becoming digital librarians

42. Social Metrics

43. Do people talk about your site?
AARReferral

44. Visitor
Contributor
Distributor
Types of users

46. Curation the unbeatable experience of a
bookstore

47. Curation bookshelves
Every user, a librarian

51. Amplification rate:
• (#shares, #RTs, …)
K-Factor = AR *
conversion rate
• = 1: steady state
• > 1: growth
➤ 1.4 < x < 2.1 => hot &
viral!!!
• < 1: decline
Virality

52. % 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

53. @justohidalgo

54. Business Metrics

55. Do you make money?
AARRRevenue

58. Churn

59. Lifetime Value =
100%
LTV
Source:http://blog.kissmetrics.com/how-to-calculate-lifetime-value/Churn rate
ARPU *

60. CAC Ratio=
Bessemer: average ratio of SaaS companies = 0.6
Customer Acquisition Cost
gross margin per customer
sales/marketing costs per customer

61. Of course, LTV > CAC
But, moreover: LTV > 3x CAC
LTV vs CAC

62. time/conversion rate
Price/page
Growth
Profit threshold
Consolidation
Freemium for Books. Price per page
@justohidalgo

64. Analytics
Heatmaps
Social media

73. Conclusions

75. @justohidalgo

76. 2. Have someone taking care of it

78. 3. Only measure what you truly care about
@justohidalgo

79. But again, choose right

80. 4. Beware vanity metrics…

81. … they may hide an awful truth

82. Thanks for your time!
@justohidalgo
Justo Hidalgo
http://www.loscuentosdelabuelo.com
jhidalgo@24symbols.com

83. Credits
Olivier Guin, from The Noun Project
Dima Yagnyuk, from The Noun Project
Redesign from Otl Aicher’s icon, from The Noun Project
Axsys, from The Noun Project
Monika Ciapala, from The Noun Project
Rob Schill, from The Noun Project
Martin Karachorov, from The Noun Project
Alexandre Mendes, from The Noun Project
All other icons from The Noun Project
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