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METRICS & VALIDATION
simon@frenzoo.com
*
*Startups I’m involved in *
3d lifestyle
games
3d printing
platform
Social Network
app
Powertool
s
*Hi I’m Simon
●Think of ideas
●Validate them
●Execute them
●Test them (metrics)
●Launch
●Iterate
*
MY JOB
*Marc Andreesen (founder of Netscape, Opsware, VC) *
“The only thing that matters is product-market fit”
MARKET >> Product / Team
Metrics and validation will tell you if there is a market
Quiz *
How many apps are
there in the
appstore?
Are you ONE in a MILLION? *
*ROUTES TO SUCCESS IN THE APPSTORE IN 2013 *
CHOICES
●Get lucky
●Have the budget to push a mass market service
●Target and serve a niche well
*Test your idea *
Validation
*BEFORE YOU START DEVELOPMENT *
VALIDATE THE CONCEPT
●Polls
●Ad networks
●Forums
●Avoid your friends
*Going Deeper *
POLLING OPTIONS
●Ask Your Target Market
●Google Consumer Surveys
●PickFu
●Amazon Mechanical Turk
●Hack Ad Networks
*An example *
TEST A NEW APP CONCEPT
*BEFORE YOU START DEVELOPMENT *
TEST THE CONCEPT
●Mockup test
**
Metrics
*The ONLY equation that matters *
LTV > CAC
*The ONLY equation that matters *
LT x ARPDAU > Direct CPA x Viral
*The ONLY equation that matters *
LT x Conversion rate * ARPPDAU >
Direct CPA x Viral
*MOST IMPORTANT METRICS (1) *
●By Cohort
●Date
●Version
●A/B Test
●Traffic Source
●Platform / Device
*MOST IMPORTANT METRICS (2) *
●Retention
●1 day
●7 day
●30 day
●Session length
●Sessions / day
●DAU / WAU / MAU
*MOST IMPORTANT METRICS (3) *
●Monetization
●LTV
●% convert
●ARPPU
*MOST IMPORTANT METRICS (4) *
●Classification / Segmentation
●Whales (IAP)
●Mid payers (IAP)
●Low payers (IAP)
●Free offerwall users (rewarded)
●Free social
●Free
*MOST IMPORTANT METRICS (5) *
●Channel
●CPI
●CPPU
●Channel capacity
*APPSTORE MARKETING
●Organic
●Word of mouth
●SEO
●Chart position
●Viral channels
●Press
●Paid
●Rewarded
●Non rewarded
●Featuring networks
●Cross promo
*
Monetization
Create and launch a hit mobile game
*MONETIZATION PRINCIPLES
●In freemium, a very small percent of people pay (under 5%)
●Of these, a smaller % contribute a disproportionate amount of revenue
●They are usually happy to spend more, not less
●Do:
●Segment
●Uncap user spending potential
●Provide ways to spend a LOT in a short amount of time
*
*GAMES VS APPS
●Apps: linear consumption
*
●Games: can be exponential consumption
$
spend
“what you
get”
$
spend
“what you
get”
*MONETIZATION DRIVERS
●Sales
●Limited editions
●Endogenous value
●Seasonal
●Insurance
●Aesthetics
●Speed up time
●Mating
●Revenge
●Tend and befriend etc
*
Question *
How would you
uncap spending in
a dating app?
**Need advice or help on your startup?
simon@frenzoo.com
WhatsApp/LINE/MessageMe/Viber/WeChat/FB/Kakao/SMS 62771812
Q&
A
*
Now hiring!
Interns
Programmers

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Validation & Metrics - Simon Newstead