Startup Metrics Workshop

1. Startup Metrics
Avatech November 2014
@ghazalshi

2. The Goal of the Session
• Learn the stage of your startup
• Pick a metric to change
• Find correlation and test causality
• Optimize for the causal factor

3. Exercise: 5 min
Write down the metrics that you are measuring

4. The core of the Lean is iteration
Ideas
Build
Product
Measure
Learn
Data

5. It is not about whether
you can build it is about
if anybody will care.

6. The core of the Lean is iteration
Ideas
Build
Product
Measure
Learn
Data
Everyone’s idea is
the best
Here is where everything
falls apart
Everyone loves
this part

7. Analytics can help
Analytics is the measurement
of movement toward your goals.

8. Some Fundamentals

9. What is a good metric?
Understandable
• If you are busy
explaining the
data, you
won’t be
acting upon it.
Comparable
• Comparison is
context.
A ratio
• The only way
to measure a
metric
Behavior
changing
• What will you
do differently
based on
these data?

10. The Simple Rule

11. Metrics help you know yourself
Customers that
buy more than 1
times in 90 days
Then you are in
this mode
Your customers
will buy from you You are just like Focus on
1-15% Acquisition Once 70% of the retailers Low user acquisition
cost, high checkout
15-30% Hybrid 2-2.5 per year 20% of the retailers Increasing return
rates, high market
share
>30% Loyalty >2.5 per year 10% of the retailers Loyalty, inventory

12. Tie the metric to a desired behavior

14. Beware of Vanity Metrics

15. Vanity Metrics to Watch Out For
Hits
Page views
Visits
Unique visitors
Followers/friends/likes
Time on page
Emails collected
Number of downloads

19. Examples
• If a Facebook user reaches 7 friends in 10 days
• If someone in Zynga comes back the day after signing up to play they
will become loyal users.
• A twitter user who follows certain number of users and a certain
number of them follow him back
• A linkedin member who get X connections in Y days

22. A leading, causal metric is a
superhero.

23. Metrics

24. Eric’s 3 engines of startup growth

25. Dave’s Pirate Metrics
Acquisition
Activation
Retention
Revenue
Referral

26. What Stage Are You At?

28. Exercise: 30 mins
• We have talked a lot about this stage!
• Share your questions and insight you got.
• Explain why?

29. Stickiness

30. Virality

31. Scale: Incremental Order Cost

32. 6 Business Model Archetypes

34. Acquisition

35. Activation

36. Retention

37. Revenue

38. Revenue

40. Just One?

41. Oh Yeah! Remember you are a
startup!

42. What is good enough?

44. E-commerce
• Conversion rate
• Purchases per year
• Average shopping cart size
• Abandonment
• CAC
• Revenue per customer
• Top key words driving traffic

45. 2-sided Market
• Buyer and seller growth
• Inventory growth
• Search effectiveness
• Conversion funnels
• Ratings
• Pricings

46. Mobile App
• Downloads
• Launch rate
• Percentage of active users
• Percentage of users who pay
• Time to first purchase
• Rating click-through
• Virality

47. SaaS
• Attention
• Enrollment
• Stickiness
• Conversion
• CAC
• Revenue per customer
• Virality
• Upselling

48. UGC
• Number of engaged visitors
• Content Creation
• Engagement funnel changes
• Value of created content
• Content sharing

49. Media
• Audience and churn
• Ad inventory
• Ad rates
• CTR
• Content/advertising balance

50. Exercise: 1 hour
• Go back to your team
• Based on your business model visualize the system that you are
working in
• Pick 5 metrics important to you
• Choose an OMTM

52. Growth Hacking

53. E-commerce
Metrics

59. • All the images in this presentation are taken from flickr.com and lean
analytics.
• The content where not specified is from Lean Analytics and Dave
McClure’s metrics.