Read the full blog post here: http://jan-koenig.com/blog/?p=109

1. 3 Important Things
About Metrics
founders should know
Jan König - @einkoenig

2. 0

3. 0
The AAA’s of Metrics
Auditable Accessible
Actionable

4. 0
What Makes a Good Metric?
A rate or a ratio rather than an absolute or cumulative value. New
users per day is better than total users.
Comparative to other time periods, sites, or segments. Increased
conversion from last week is better than “2% conversion.”
No more complicated than a golf handicap. Otherwise people won’t
remember and discuss it.
For “accounting” metrics you use to report the business to the
board, investors, and the media, something which, when entered into
your spreadsheet, makes your predictions more accurate.
For “experimental” metrics you use to optimize the
product, pricing, or market, choose something which, based on the
answer, will significantly change your behaviour. Better yet, agree on
what that change will be before you collect the data.
Source: http://leananalyticsbook.com/one-metric-that-matters/

5. 0

6. 1
“ A metric tells a complete story using data,
measures, information, and other metrics
to answer a root question.
”
Martin Klubeck

7. 1
Metrics
Data
Measures
Information Information
Metric
Root Question
Source: Klubeck, “Metrics”, page 13

8. 1
Data, Measures, and Information
Data
Data Data
Data Data
Data Data
Measures Information
Measures
Data Data
Examples
Page Hits on Dec 23
2500 (Data) Hits (Measures)
Page Hits per Day Last Week
2500 (Data) Hits (Measures)
2600 (Data) Hits (Measures)
… 2520 (Data) Hits (Measures) per Day (Information)
…
2350 (Data) Hits (Measures)

9. 1
Root Question
“Answers are only useful when you know the question”
– Martin Klubeck
A wrong question means:
wrong data, measures, and information
wrong metric interpretation
wrong action
wrong product change

10. 1
Finding the Right Question: 5 Whys
Ask Why (What, How, What if?)
until you can no longer answer with a deeper need.
Example
“I want to measure retention with a cohort analysis”
“Are the users coming back to use my product?”
“Is my product at the moment solving their problems well enough to be important to them?”
“What could make them come back more often?” (possible) root question
“What do I have to change to make a better
“What product changes do address the and more desired product for my users?”
users’ needs and lead to an increasing usage?”

11. 2
“ Metrics are a tool, an indicator –
they are not the answer and may have
multiple interpretations.
”
Martin Klubeck

12. 2
Metrics as Indicators
“Data is just one perspective”
Source: http://blog.intercom.io/the-problem-with-data-driven-decisions/
Never base decisions on core numbers!
Use metrics as indicators to find out where
something is wrong.
Then do further investigation.
In-depth Analysis. Customer Development.

13. 3
“ Triangulation is a principle foundation
for a strong metric program.
”
Martin Klubeck

14. 3
Triangulation
Example: Triangulation of Effectiveness Metrics
Delivery
using multiple
measures, collection
methods, and
Product / Service Health Usage sources for a
Customer View
comprehensive
picture
Customer Satisfaction

15. 3
Triangulation in a Restaurant
Restaurant’s Effectiveness Metrics with Triangulation
Delivery Usage Customer Satisfaction Possible Interpretation
OK, something is wrong here. You know that.
“The only game in town.” Or a product
customers need but don’t want.
Great food and a loyal, but very small
customer base. Maybe a bad location.
Crazy! Time to look at other metrics to
improve your business.
Source: Klubeck, “Metrics”, page 149f

16. 3
Triangulation in a Restaurant
Restaurant’s Effectiveness Metrics without Triangulation
Delivery Usage Customer Satisfaction Possible Interpretation
bad
focus on
bad
good
good

17. ?
So, how do I use these principles?
What’s next?

18. ?
Martin Klubeck’s Answer Key
Product / Service Health
Customer View
Return vs.
Investment
Process Health
Business View
Company
Maturity
Organizational Health
Worker View
State of the
Organization
Future Health
Leadership View

19. ?
Martin Klubeck’s Answer Key
Product / Service Health
Customer View
Return vs.
Investment
Process Health
Business View
Organizational Health
Worker View
State of the
Organization
Future Health
Leadership View

20. ?
Focus on Product Health
Delivery
Product / Service Health Usage
Customer View
Customer Satisfaction

21. ?
Focus on Product Health
Delivery
Customer Journey
Product / Service Health Usage
Customer View
Activation, Retention, Revenue
Customer Satisfaction

22. Feedback?
Hey, I’m Jan!
I am a German student and I’m currently writing
my bachelor’s thesis about metrics for startups.
I would love to get some feedback about this approach
(which is the “high-level part” of my thesis).
I will upload some other presentations about metrics
design in startups within the next weeks.
Glad to hear from you!
Jan
Twitter: @einkoenig
Mail: me@jan-koenig.com

23. Photo Credits
Slide 3
Jan Krömer, http://www.flickr.com/photos/81336062@N00/285835148
ZionNPS, http://www.flickr.com/photos/54168808@N03/5015792234
comedy_nose, http://www.flickr.com/photos/23408922@N07/4873283906
Slide 6
Neta Bartal, http://www.flickr.com/photos/53742192@N05/6646556769/
Slide 11
Furryscaly, http://www.flickr.com/photos/98528214@N00/312210315
Slide 13
loop_oh, http://www.flickr.com/photos/80384851@N00/7986197617