This document discusses the importance of metrics for businesses and provides examples of different types of metrics. It covers:
- Why businesses need metrics to monitor health, make decisions, and set focus.
- Examples of business, product, and marketing metrics like revenue, daily/monthly active users, click-through rate, cost-per-click.
- How to establish success formulas using metrics at the business, product, and marketing levels.
- The concept of a metric framework to define key events, tactics to drive those events, and metrics to measure performance for an AARRR strategy.
- Important early stage metrics like retention rates and cohort analysis, as well as the idea of a "North
18. 18
Business level metrics: Digital Media
Visits
CPM (Yield)
No. of Ad Units per
PageX X
Revenue=
PAYR• Digital Media:
1,000
Avg
Page/VisitX
Pageview
19. Unit economics
Business model (revenue and cost) for a single customer
Examples
ARPU - Average Revenue Per User
LTV - Lifetime value
CAC - Customer acquisition cost
21. Mark is considering to acquire one of these messenger app:
Whatsapp, Cubie, Snapchat. As Head of M&A you can ask
these companies for 3 metrics. Which would you choose?
Exercise
A. No. of download
B. Valuation
C. No. of messages per user per month
D. No. of messages handled total
E. Monthly revenue
F. Active user growth rate (monthly / quarterly / YoY)
G. No. of monthly active users
Read:
WhatsApp vs. bull-shit metrics
A way to think about Whatsapp staggering price
23. Product Metrics
Product Level Metrics tie directly with the product;
it includes everything that relates to
- Users
- Usage
- Core Product Value
24. 24
Button Click-Thru-Rate (CTR)
No. of Downloads
Daily Active User (DAU)Unique Visitors (UV)
Page Views (PV) Monthly Active Users (MAU)
Retention Rate
Bounce Rate
Session Length
Download-to-Activation (%)
DAU/MAU
Product Metrics examples
2nd Day Retention Rate
Message Sent per User per Day
Total Monthly Post per Month
Sell-thru-rate
33. Exercise
You are product manager of mobile marketplace
for 2nd goods. Your revenue model is transaction
fee (%).
What are two most important core product
metrics in first year?
34. Exercise
Phase 1:
• No. of Active Users
• No. of Listings
Phase 2:
• Gross Merchandise Value (GMV)
• Avg. time from listed to sold (hrs)
35.
36. 36
Metrics helps you define whats most important
For Facebook -
“Get any individual to 7 friends in 10 days”
http://www.youtube.com/watch?v=raIUQP71SBU [20:45]
Chamath Palihapitiya
VP of Growth, Facebook
41. 41
Metrics used by most US Marketers (2011)
“Digital marketers today are
drowning in metrics, but they
don’t know which ones are
important or how to connect the
dots in a meaningful way that will
drive marketing performance”
42.
43. Using Marketing Metrics
- What’s my impact / ROI?
- What do I learn about the channel?
- What do I learn about our (potential) users?
44. Exercise
You want to promote your landing page on
Google, Facebook, and Yahoo.
You have SGD 10,000 budget for each channel.
Pricing: CPC
How would you compare their “effectiveness”?
50. The purpose of metrics
Answer questions -
• Is my business healthy?
• Is my marketing effort (campaign) effective?
• Is my product solving my users’ problem? Delivering value?
Make decisions - how can we do better?
Set your company North Star
56. 1) Define key event for each step
Open an Account
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57. 2) Design tactics that drive these events
Open an Account
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FB ads
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auto upload photos
Easy share mechanism
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58. 3) Measure results: metrics
Visitor to Account Opening
conversion rate (%)
Download to
activation (%)
2nd Day Retention
avg. no. of share
per user
Paid users / all users (%)
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71. Post-product-market fit: how to use metrics?
http://startupclass.samaltman.com/ - Lecture #6: Growth [9:50]
North Star
72. North Star
• The key metric(s) set the goal, purpose, and culture of
your startup
• Let everyone in the company know what is most
important to the company, in turn affect every business
decision, product feature, resource investment, etc.