3. INTRODUCTION
Speakers
Pol Valls Soler @polvallssoler
Key Account Manager at La Salle Technova
Creator of:
iOS app for discovering people nearby: joinerapp.com
Reddit for spanglish geeks: zumogeek.com
pvalls@technovabarcelona.org
slideshare.net/polvallssoler
6. EXERCISE 1
Metrics
Which one of these two companies is the best for you?
Company A
Company B
It is a social network for runners. They launched
the platform in 2011.
Closed 2013 with 2 Millions of users and 1.5
Millions of Euros of Net Profit.
It is a social network for pregnant. They are in the
market since 2012.
Closed 2013 with a community of 95.000 users and a
Net Profit of 0.5 Millions of Euros.
They expect the following KPI for 2014:
For 2014:
Cost marketing:
New users:
600.000 âŹ
400.000
Cost marketing: 100.000âŹ
New users:
60.000
# Visits / day:
Conversion Rate:
Average time:
374.000
5%
00:03:48
# Visits / day
42.000
Conversion Rate 5%
Average time:
00:01:27
7. CONTEXT
Before 2000 â After 2008
Before 2000
After 2008
Sun Servers!
Oracle DB!
Exodus Hosting!
12-24mo dev cycle!
6-18mo sales cycle!
<100M people online!
$1-2M seed round!
$3-5M Series A!
Sand Hill Road crawl!
!
Big, Fat, Dinosaur Startup!
AWS, Google, PayPal, FB, TW!
Cloud + Open Source SW!
Lean Startup / Startup Wknd!
3-90d dev cycle!
SaaS / online sales!
>3B people online!
<$100K incub + <$1M seed!
$1-3M Series A!
Angel List global visibility!
!
Lean, Little, Cockroach Startup!
Source:500startups!
8. AARRR
Pirate Metrics for startup s and mAAARRketing for startups
ACQUISITION
ACTIVATION
RETENTION
REFERRAL
PROFIT
REVENUE
9. AARRR
Pirate Metrics for startup s and mAAARRketing for startups
ACQUISITION
Users come to the site; you have their
attention
BLOG EXAMPLE: users come to the site and stay for at
least 2 minutes !
SaaS EXAMPLE (pdf to html conversion service): user signs
up for the service
10. AARRR
Pirate Metrics for startup s and mAAARRketing for startups
ACTIVATION
User performs some key activity that
indicates a good ďŹrst visit
BLOG EXAMPLE: user signs up for RSS/newsletter !
SaaS EXAMPLE (pdf to html conversion service): user
successfully makes a document
11. AARRR
Pirate Metrics for startup s and mAAARRketing for startups
RETENTION
User continues to do that key activity
indicating they like your product
BLOG EXAMPLE: user reads at least one post a week or
opens the newsletter !
SaaS EXAMPLE (pdf to html conversion service): user
continues to make documents. As long as they're
successfully making documents they will continue to
use the service. â¨
12. AARRR
Pirate Metrics for startup s and mAAARRketing for startups
REFERRAL
User gets other users to join
BLOG EXAMPLE: user promotes your blogs contests and
drives trafďŹc !
SaaS EXAMPLE (pdf to html conversion service): Users
send other users to our web, possibly with a coupon
code
13. AARRR
Pirate Metrics for startup s and mAAARRketing for startups
REVENUE
User pays you
BLOG EXAMPLE: user buys your ebook
SaaS EXAMPLE (pdf to html conversion service): yay!
money! !
19. EXERCISE 1
Metrics
Which one of these two companies is the best for you?
Company A
Company B
CAC=600.000âŹ/400.000users= 1.5âŹ
CAC=100.000âŹ/60.000users= 1,66âŹ
LTV= 1.500.000âŹ/2.000.000users= 0,75âŹ
LTV=500.000âŹ/95.000users= 5,26âŹ
LTV/CAC= 0,75 / 1,5 = 0,5
LTV/CAC = 5,26 / 1,66 = 3,16
25. ACQUISITION
Extra tip: How to get your ďŹrst 100 users!
1) What existing solution do you believe your product is better than?
2) Where can you find a critical mass of people who use the existing solution?
3) Go there. Talk to them. Show them your product.
!
Extra tip: Reverse Engineered App Storeâs ranking algorithm
(approximation)!
AppStore Ranking = H + D + R + E + S
H = # of installs weighted for the past few hours
D = # of installs weighted for the past few days
R = Reviews (star rating + number of reviews)
E = Engagement (# of times app opened etc.)
S = Sales ($)
!
!
26. ACTIVATION
Key metrics to track:!
â˘âŻ Pages per visit (2-3+ page views)!
â˘âŻ Time on site (10-30+ seconds)!
â˘âŻ Conversions (1 key feature usage)!
â˘âŻ Clicks (3-5+ clicks)!
â˘âŻ Bounce rate (low)!
Activation Tips:!
â˘âŻ Less is more!
â˘âŻ Focus on UX / Usability!
!
â˘âŻ Provide incentives & call to actions!!
â˘âŻ Perform A/B tests and iterate fast!
27. RETENTION
Key metrics to track:!
â˘âŻ Source (email, RSS, afďŹliatesâŚ)!
â˘âŻ Volume (Low spam rating)!
â˘âŻ Conversions (20% open rate / CTR)!
â˘âŻ Visitor Loyalty (1â3+ visits per month)!
â˘âŻ Session Length!
â˘âŻ Long customer life cycle / Low decay!
â˘âŻ Identify fanatics and cheerleaders!
!
!
28. RETENTION
Retention Tips:!
â˘âŻ Email is simple and it works!
â˘âŻ But make Unsubscribe easy!
â˘âŻ 80% subject line / 20% body text!
â˘âŻ Actually⌠99% subject line / 1% body text!
â˘âŻ Status / âbest ofâ weekly/monthly emails!
â˘âŻ âSomething happenedâ emails!
â˘âŻ Lifecycle emails @ +3, +7, +30 days !
â˘âŻ RSS / News feeds!
â˘âŻ Widgets / Embeds!
â˘âŻ GamiďŹcation!
â˘âŻ Fanatics = Virality + afďŹliate channels (like bloggers)!
29. REFERRAL
Key metrics to track:!
Viral Growth Factor = X * Y * Z!
!
!X = % of users who invite other people!
!Y = average # of people that they invited!
!Z = % of users who accepted an invitation!
A viral growth factor > 1 means an exponential organic user acquisition.!
Referral Tips:!
â˘âŻ Personal send to friend (Email / IM)!
â˘âŻ Social Media!
â˘âŻ Widgets / Embeds!
â˘âŻ AfďŹliates!
43. Linkedin ACQUISITION & REFERRAL!
! (NOT THE BEST THING TO DO⌠people can hate you)
From Linkedinâs People You May Know pageâŚ
This person passed away about a year ago. For the
majority of her life, she ran a small hardware shop and
she barely understood email, let alone LinkedIn.
48. Dropbox REFERRAL & REVENUE!
!
Dropbox growth hack in numbersâŚ
1.⯠September 2008: 100,000 registered users!
2.⯠January 2010 (15 months later): 4,000,000!
3.⯠Mostly from word-of-mouth and viral:!
â˘âŻ35% of daily signups from referral program!
â˘âŻ20% from shared folders, other viral features!
â˘âŻSustained 15-20%+ month-over-month growth since launch!
58. ACQUISITION, REFERRAL & REVENUE!
Extra tip: Reverse Engineered App Storeâs ranking algorithm
(approximation)!
AppStore Ranking = H + D +Â R + E + S
!
!H = # of installs weighted for the past few hours!
!D = # of installs weighted for the past few days!
!R = Reviews (star rating + number of reviews)!
!E = Engagement (# of times app opened etc.) !
!S = Sales ($)!
!
!
Luck? AppStore Bot? Dark pattern?
70. REVENUE & PROFIT!
The $144,146,165 Button
When cabs were cash only, the average tip was roughly 10%. After the
introduction of this system, the tip percentage jumped to 22%. Those
three buttons resulted in $144,146,165 of additional tips per year.
82. Speakers
Pol Valls Soler @polvallssoler
Key Account Manager at La Salle Technova
Creator of:
iOS app for discovering people nearby: joinerapp.com
Reddit for spanglish geeks: zumogeek.com
pvalls@technovabarcelona.org
slideshare.net/polvallssoler