ALE2012 - Pirate metrics AARRR

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Introduction to the Pirate Metrics – AARRR related to customer development and business model canvas in order to gain insights on how your customers behave and create an environment where you easily can validate startup hypothesis avoiding the commonly used feel good metrics.

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  • Interesting concept. Very close to 'Business Model Generation'.

    Cheers Jurgen

    Pierre
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ALE2012 - Pirate metrics AARRR

  1. 1. There  is  no  way  back!  AARRR – PIRATE METRICS
  2. 2. WHAT IS THE PROBLEM YOUARE TRYING TO SOLVE?
  3. 3. WHAT IS YOUR MOSTIMPORTANT CUSTOMERSEGMENT?
  4. 4. WHO IS YOUR BESTCUSTOMER?
  5. 5. WHY IS THIS YOUR BESTCUSTOMER?
  6. 6. HOW DO YOU (PLAN TO)MAKE YOUR MONEY?
  7. 7. HAVE YOU COLLABORATEDWITH YOUR (POTENTIAL)CUSTOMERS?
  8. 8. WHO TRIED THISBEFORE?
  9. 9. WHAT IS YOUR MOSTUSED FEATURE?
  10. 10. THERE IS NO WAY BACK!
  11. 11. YOU’RE DOING TOO MUCH
  12. 12. DON’T HANG ON TO THINGSTHAT YOU MIGHT BUILDSOMEDAY
  13. 13. CREATE HYPER FOCUS
  14. 14. EVERY  WEEK  KILL A FEATURE
  15. 15. TAKE OUT A FEATURE ANDMONITOR THE REACTIONS
  16. 16. Either  they  love  it  or  hate  it,  all  other  reac;ons  means  you’re  screwed  OPTIMIZE FORHAPPINESS
  17. 17. THERE IS NO WAY BACK!
  18. 18. Dave  McClures’  AARRR
  19. 19. Create  different  storylines  for  different  combina;ons  NARRATIVE OF YOURSTRATEGY, PROGRESS
  20. 20. Let’s  take  a  look  at  this  meta-­‐framework  EXAMPLES
  21. 21. #1 DOGGIECOLRSocial Network for Dog LoversMakes money through advertising and affiliate sales oflush dog collars.Key business driversAdvertising and affiliates need large traffic/page viewsso growth and referral are key.
  22. 22. ACQUISITION VISITACQUISITION SIGN-UPACTIVATION CREATE PROFILEACTIVATION POST PICTURES COMMENTREFERRAL SHARE PICTURES INVITE FRIENDSREVENUE BUY COLAR
  23. 23. #2 AGILESAMBAProject management tool for AgilestartupsMakes money through monthly subscriptions. Has a freetrial period.Key business driversConversion to paid users.
  24. 24. ACQUISITION VISITACQUISITION SIGN-UPACTIVATION CREATE PROJECTREVENUE UPGRADES PAIDREVENUE CANCELS ACCOUNT
  25. 25. Let’s  take  a  closer  look  at  this  meta-­‐framework  ACQUISITION
  26. 26. ARE YOU FISHING IN THERIGHT POND?
  27. 27. HOW DO YOU GET NEWCUSTOMERS?
  28. 28. IS YOUR MESSAGEREACHING THE RIGHTPEOPLE?
  29. 29. ARE YOU FOCUSSING ONTHE RIGHT PEOPLE?
  30. 30. ACTIVATION
  31. 31. ARE YOU USING THERIGHT BAIT?
  32. 32. HOW DO YOU LANDPOTENTIAL CUSTOMERS?
  33. 33. IS YOUR MESSAGE CLEAR?
  34. 34. ARE YOU HELPING YOURCUSTOMERS?
  35. 35. RETENTION
  36. 36. DO YOU USE THE RIGHTMATERIAL?
  37. 37. HOW DO YOU MAKECUSTOMERS STAY?
  38. 38. DO YOU OFFER THERIGHT EXPERIENCE?
  39. 39. DO YOU OFFER QUALITY?
  40. 40. REFERRAL
  41. 41. HOW DO YOUR FISHESLURE IN MORE FISHES?
  42. 42. HOW IMPORTANT ISWORD OF MOUTH?
  43. 43. HOW EASY IS IT FORCUSTOMERS TO SHARETHEIR EXPERIENCES?
  44. 44. REVENUE
  45. 45. SELLING YOUR FISH
  46. 46. HOW DO YOU (PLAN TO)MAKE YOUR MONEY?
  47. 47. ARE YOU CATCHING THERIGHT FISH?
  48. 48. TIME TO STARTMEASURING AND LEARN
  49. 49. THERE IS NO WAY BACK!
  50. 50. Google  Analy;cs   TechCrunch  Metrics  that  make  you  feel  good  but  don’t  tell  anything…  VANITY METRICS
  51. 51. •  150  000  Users   •  Numerous  superior  compe;tors   •  …  Let  us  examine  Facebook…  WHAT WOULD INDICATESUCCES?
  52. 52. •  150  000  Users   •  Numerous  superior  compe;tors   •  …   •  75%  of  the  users  visit  the  site  1  or  mul;ple  ;mes  a  day   •  1  month  aUer  the  launch  in  a  student  campus  they  could  acquire  90%   of  the  student  body  Let  us  examine  Facebook…  WHAT WOULD INDICATESUCCES?
  53. 53. Metrics that matter!•  Value  Hypothesis   à  How  do  we  add  more  value  to  our  customers  live?  •  Growth  Hypothesis   à  Through  what  engine  will  we  acquire  new  customers?  
  54. 54. Metrics that matter!•  Value  Hypothesis   à  How  do  we  add  more  value  to  our  cusotmers  live?  •  Growth  Hypothesis   à  Through  what  engine  will  we  acquire  new  customers?   Metrics  are…   -­‐  Ac;onable   -­‐  Auditable   -­‐  Accessible  
  55. 55. Fact:  New  users  are  more  engaged!  Group  users  in  month  or  week.  COHORT
  56. 56. Let  different  groups  of  customers  validate  different  new  features  A-B TESTING
  57. 57. Experiment,  validate  learning  &  change!  RATE OF VALIDATEDLEARNING
  58. 58. Viral  Coeff  =  Invites  *  Conversion  Rate   Examples:  Facebook,  Hotmail…  Focus  on  Acquisi;on  &  Referral  –  Revenu  is  side  effect  VIRAL COEFFICIENT
  59. 59. LTV  =  Cost  of  Acquiring  Customer  /  Earnings  from  that  customer   Examples:  Amazon,  Match.com…  Focus  on  Ac;va;on  &  Reten;on  –  Payment  is  central  LIFETIME VALUE (LTV)
  60. 60. Recommended Software•  Ubounce  •  KISS  Metrics  •  Survey.io  •  Wufoo  •  LinkShiUr  •  …  
  61. 61. WE DONT’T KNOWENOUGH!
  62. 62. WE’RE DOING TO MUCH!
  63. 63. Acquisi;on  Ac;va;on  Reten;on  Referral  Revenue  USE AARRR TO BUILD THENARRATIVE OF YOURSTRATEGY!
  64. 64. Metrics  are…   -­‐  Ac;onable   -­‐  Auditable   -­‐  Accessible  FOCUS ON REAL METRICS
  65. 65. GO OUT AND COLLABORATEWITH YOUR CUSTOMERS!
  66. 66. THERE IS NO WAY BACK!

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