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@jeroentjepkema
Startup Bootcamp Growth Week, 30 November 2015
Lean Analytics
SBC Growth Week - Lean Analytics
A growth hacker is a person
whose true north is growth
- Sean Ellis, Founder Growthhackers.com
“
AirBnB and Craigslist
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
Every successful startup has found
and benefited from a growth hack...
SBC Growth Week - Lean Analytics
In reality, growth hacking sucks...
90% of your experiments will fail...
One trick pony? What works for others
probably doesn’t work for you...
Growing before product/market fit?
Really?
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
There is NO secret sauce...
Why should we care?
SBC Growth Week - Lean Analytics
Consumers are in control,
startups need to be creative to
grow, acquire new users and
retain them...
Don’t sell what you can make. Make what you
can sell.
Kevin Costner is a lousy entrepreneur.
It’s no longer about if you can build it,
it’s about if anyone will care
That’s why we have to
iterate & adapt
to grow fast...
Growth Engines
Stickiness
Keep people
coming back.Approach?
Get customers
faster than you
lose them.
Metrics?
Lean Startup: 3 engines of growth
Lean Startup: 3 engines of growth
Virality
Make people
invite friends.
How many they
tell, how fast
they tell them.
Stickiness
Keep people
coming back.Approach?
Get customers
faster than you
lose them.
Metrics?
Virality
Make people
invite friends.
How many they
tell, how fast
they tell them.
Price
Spend money to
get customers.
Customers are
worth more than
they cost.
Stickiness
Keep people
coming back.Approach?
Get customers
faster than you
lose them.
Metrics?
Lean Startup: 3 engines of growth
Virality PriceStickiness
Users RevenueTraffic ? ?
How to ‘find’ growth?
The key is to map out the lifecycle
of your customers...
AARRR: Give us your money?
Acquisition
Activation
Retention
Revenue
Life Cycle Funnel
Referal
SBC Growth Week - Lean Analytics
Repeatable growth comes from
understanding your best user and how
to find and acquire more of them...
Anatomy of a
web page
The DNA of your best bustomer
Acquisition
Activation
Retention
Revenue
Referal
Life Cycle Funnel
Acquisition
Activation
Retention
Revenue
Referal
Life Cycle Funnel
Digital Marketing
Acquisition
Activation
Retention
Revenue
Referal
Life Cycle Funnel
Digital Marketing
Conversion Optimization
Conversion Optimization
Growth Hacking
Acquisition
Activation
Retention
Revenue
Referal
Life Cycle Funnel
Digital Marketing
Your goal:
Push enough customers through
this cycle to make more money
than you spend
Make them
refer others
Retain them
Get revenue from them
Acquire
customers
Activate them
http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
Analytics Flow Chart
Customer Acquisition Cost
paid direct search wom
inherent
virality
VISITOR
Freemium/trial
Enrollment
User
Disengaged User
Cancel
Freemiu
m churn
Engaged User
Free user
disengagemen
t
Reactivate
Cancel
Trial
abandonment
rate
Invite Others
Paying Customer
Reactivation
rate
Paid
conversion
FORMER USERS
User Lifetime
Value
Reactivate
FORMER CUSTOMERS
Customer Lifetime
Value
Viral
coefficient
Viral rate
Resolution
Support
data
Account Billing Info Exp.
Paid Churn Rate
Tiering
Capacity Limit
Upselling
rate Upselling
Disengaged DissatisfiedTrial Over
Frameworks everywhere:
Lean Analytics
Stage
EMPATHY
I’ve found a real, poorly-met need that a
reachable market faces.
STICKINESS
I’ve figured out how to solve the problem
in a way they will keep using and pay for.
VIRALITY
I’ve found ways to get them to tell their
friends, either intrinsically or through
REVENUE
The users and features fuel growth
organically and artificially.
SCALE
I’ve found a sustainable, scalable business
with the right margins in a healthy
Gate
Thefiveleanstages
STICKINESS
VIRALITY
SCALE
REVENUE
EMPATHY
Activation
Retention
Revenue
Referral
Acquisition
Attention at
scale
Price Engine
Virality Engine
Sticky Engine
Problem/
Solution fit
Beyond
Lean
Eric Ries
Engines of Growth
Dave mcClure
Pirate Metrics
Alistair Croll
Lean Analytics Stages
GrowthRate
Another framework?
6 business model archetypes.
6 business model archetypes.
E-
commerce
SaaS Media
Mobile
app
User-gen
content
2-sided
market
What your business are you in?
E-Commerce SaaS Mobile
2-Sided
market
Media
User Generated
Content
Empathy
Stickiness
Virality
Revenue
Scale
Thestageyou’rein
The business you’re in?
The power of Lean Analytics
E-Commerce SaaS Mobile
2-Sided
market
Media
User Generated
Content
Empathy
Stickiness
Virality
Revenue
Scale
Thestageyou’rein
The business you’re in?
One Metric That Matters
The power of Lean Analytics
Exercise 1:
Build your own Analytics cycle
Acquisition
Traffic Drivers
Customer Life Cycle - analytics flow chart
Conversion Accelerators Loyalty
Activation RetentionRevenue Referal
Key metric: Key metric: Key metric: Key metric: Key metric:
Acquisition
Traffic Drivers
Customer Life Cycle - analytics flow
Conversion Accelerators Loyalty
Activation RevenueRetention Referal
Key metric: Key metric: Key metric: Key metric: Key metric:
Direct
Organic
SEA
Facebook
Social
Website
Google
Playstore
Apple
Store
Upload foto’s
Title &
Description
Contact Details
Submit
Discount
Invite friends
Vendor option
Negotiate bid
Joint bid
SBC Growth Week - Lean Analytics
The power of Lean Analytics
The core of lean is iteration...
Learn Build
Measure
Data
Ideas
Product
Lean = Iteration
The faster your can iterate, the
faster you can find the right product
& market...
But people are liars...
Learn Build
Measure
Data
Ideas
Product
Lean = Iteration
Everyone’s idea is the
best, right?
People love to build
stuff
Disappointment
around every corner
No data, No learning
(Un)fortunately there’s always a pivot...
Analytics can help.
Lean Analytics focuses on the
measure stage. If you measure better,
you’re more likely to succeed...
Why is Nigerian spam so badly
written?
Aunshul Rege of Rutgers University, USA in 2009
1000 emails
1-2 responses
1 fool and their money, parted.
Bad language (0.1% conversion)
Gullible (70% conversion)
1000 emails
100 responses
1 fool and their money, parted.
Good language (10% conversion)
Not-gullible (.07% conversion)
Nigerian spammers
have really learned to understand
their target market and ‘customers’
One Metric that Matters
If a metric won’t change how you
behave, it’s a bad metric
A good metric is:
Understandable
If you’re busy
explaining the
data, you
won’t be busy
acting on it.
Comparative
Comparison is
context.
A ratio or rate
The only way
to measure
change and
roll up the
tension
between two
metrics (MPH)
Behavior
changing
What will you
do differently
based on the
results you
collect?
Now ask yourself:
How many of my current metrics are good metrics?
How many do you use to make business decisions
Are there others you’re not thinking of?
Putting a line in the sand
Which stage of the customer life cycle?
Acquisition
Revenue
Referral
Customers that buy
>1x in 90d
Once
2-2.5
per year
>2.5
per year
Your customers will
buy from you
Tell you which
stage you’re in
1-15%
15-30%
>30%
Lower acquisition
cost, high checkout
Increasing return
rates, market share
Loyalty, selection,
inventory size
What to
focus on
(From: Lean Analytics/Kevin Hillstrom)
Mileage may vary,
knowing what normal is allows for
rational decisions...
Data Science evangelist
“”...There are known knows; there are things
we know that we know. There are known
unknowns; that is to say, there are things
that we now know we don’t know. But there
are also unknown unknowns; there are
things we do not know we don’t know.
“”...There are known knows; there are things
we know that we know. There are known
unknowns; that is to say, there are things that
we now know we don’t know. But there are
also unknown unknowns; there are things we
do not know we don’t know.
Avinash Kaushik on Analytics
Things we
know
don’t
know
we know
Are facts which may be wrong
and should be checked against
data.
we don’t
know
Are questions we can answer by
reporting, which we should
baseline & automate.
we know
Are intuition which we should
quantify and teach to improve
effectiveness, efficiency.
we don’t
know
Are exploration which is where
unfair advantage and interesting
epiphanies live.
known knowns known unknowns unknown unknowns:: ::
(Vanity Metrics) (Actionable trends) (Leading Indicators)
Importance of
correlation vs. causation
Correlated
Two variables that are
related (but may be
dependent on
something else.)
Causal
An independent
variable that directly
impacts a dependent
one.
1
10
100
1000
10000
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Relationship between Ice cream and drownings?
Ice cream consumption Drownings
SBC Growth Week - Lean Analytics
SBC Growth Week - Lean Analytics
Correlated
Two variables that are
related (but may be
dependent on
something else.)
Causal
An independent
variable that directly
impacts a dependent
one.
Ice cream &
drowning.
Summertime &
drowning.
A leading, causal, connection is
the analytics superpower...
‣ A Facebook user reaching 7 friends within 10 days of signing up
(Chamath Palihapitiya)
‣ A Dropbox user who puts at least one file in one folder on one
device (ChenLi Wang)
‣ Twitter user following a certain number of people, and a certain
percentage of those people following the user back (Josh
Elman)
‣ A LinkedIn user getting to X connections in Y days (Elliot
Schmukler)
Some examples
(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)
Picking your One Metric That Matters:
It answers the most important questions for your business
It puts focus into the entire company
It forces you to put a line in the sand
It inspires a culture of experimentation
In a startup, focus is hard to
achieve.
That’s why you pick one metric at at
time...
(When you’re not a startup anymore you can
pick more than one...)
Everything is an experiment
SBC Growth Week - Lean Analytics
A wealth of information creates a
poverty of attention...
(Computers, Communications and the Public Interest, pages 40-41,
Martin Greenberger, ed., The Johns Hopkins Press, 1971.)
Focus on the desired behavior, not
just the information.
http://www.psychologytoday.com/blog/yes/200808/changing-minds-and-changing-towels
26% increase in towel re-use with an appeal to social
norms; 33% increase when tied to the specific room.
Lean Analytics Cycle
‣Buying
‣Signing up
‣Sharing
‣Etc
‣Brainstorming
‣Stolen from others
‣User feedback
‣Etc
One Metric That Matters:
Choose the KPI you want to improve
that represents the most fundamental
business risk
Did the KPI move past the
line in the send
Talk to customers and
draw a new line
Try again
Measure the effect the
change had on the KPI
Implement the best
experiment
Design A/B
experiments
Make changes to the
business that target this
commonality
Find an attribute the ‘best
customers’ share that’s
correlated with your KPI
What do these ‘best
customers’ have in
common?
Figure out how to improve that KPI?
Have a good idea you
want to try?
Draw a
line in the sand
Identify your ‘best
customers’
Pivot or give up?
Without data With data
Cautious testJust do it!
Yes!
Do AirBnB hosts get more business if
property is professionally
photographed?
Gut instinct (hypothesis)
Professional photography helps AirBnB’s business
Candidate solution (MVP)
20 field photographers posing as employees
Measure the results
Compare photographed listings to a control group
Make a decision
Launch photography as a new feature for all hosts
5,000 shoots per month
by February 2012
“Those houses with
high revenue look
really nice.”
Maybe it’s the
camera?
“What do all the
frequently rented
houses have in
common?”
Camera model?
With data:
find a commonality
Without data: make a
good guess
There are experiments everywhere
Validating distribution experiments:
B.R.A.S.S. framework
Blink Relevance Availability Scalability Sum
Blink Relevance Availability Scalability Sum
5-second rule
Gut feeling
Instinct score
Don’t overthink it
Blink Relevance Availability Scalability Sum
5-second rule
Gut feeling
Instinct score
Don’t overthink it
Do we have the
available
resources?
Do we have the
skills?
Do we have the
tools?
Is it expensive?
Blink Relevance Availability Scalability Sum
5-second rule
Gut feeling
Instinct score
Don’t overthink it
Is this Channel
relevant to your
product/service?
Does your
audience hang out
on this channel?
Can you target
them effectively?
Do we have the
available
resources?
Do we have the
skills?
Do we have the
tools?
Is it expensive?
Blink Relevance Availability Scalability Sum
5-second rule
Gut feeling
Instinct score
Don’t overthink it
Is this Channel
relevant to your
product/service?
Does your
audience hang out
on this channel?
Can you target
them effectively?
Do we have the
available
resources?
Do we have the
skills?
Do we have the
tools?
Is it expensive?
How scalable is
this channel?
Can we easily
increase it?
Law of diminishing
returns
Blink Relevance Availability Scalability Sum
5-second rule
Gut feeling
Instinct score
Don’t overthink it
Is this Channel
relevant to your
product/service?
Does your
audience hang out
on this channel?
Can you target
them effectively?
Do we have the
available
resources?
Do we have the
skills?
Do we have the
tools?
Is it expensive?
How scalable is
this channel?
Can we easily
increase it?
Law of diminishing
returns
1-5 1-5 1-5 1-5 BRASS score
SBC Growth Week - Lean Analytics
P.I.E.S
Validating product experiments:
P.I.E.S.
Potential
Importance
Ease
Sum
Which
test
wins?
Brainstorm Rank Prioritize
1-10
1-10
1-10
SBC Growth Week - Lean Analytics
bit.ly/brassframework
SBC Growth Week - Lean Analytics
Complete Web Monitoring
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Usability
(how did they
interact with it?)
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Performance
(could they do
what they wanted
to?)
Usability
(how did they
interact with it?)
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Performance
(could they do
what they wanted
to?)
VoC
(what were their
motivations?)
Usability
(how did they
interact with it?)
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Competition
(what are they up
to?)
Performance
(could they do
what they wanted
to?)
VoC
(what were their
motivations?)
Usability
(how did they
interact with it?)
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Competition
(what are they up
to?)
Performance
(could they do
what they wanted
to?)
VoC
(what were their
motivations?)
Usability
(how did they
interact with it?)
Social Media
(what were they
saying?)
Complete Web Monitoring
Web Analytics
(what did they
do on the site?)
Competition
(what are they up
to?)
Performance
(could they do
what they wanted
to?)
VoC
(what were their
motivations?)
Usability
(how did they
interact with it?)
Social Media
(what were they
saying?)
“Soft” data
“Hard” data
Putting a line in the sandAccounting...
vs. Optimization
Build your analytics stack
Voice of Customer PerformanceUsabilityWeb Analytics Social Media
Google Analytics Hotjar Usabilla Webpagetest Obi4Wan
Mouseflow
Optimizely
Qualaroo
Hotjar
Soasta mPulseMixpanel Sprout
Visual Web Optimizer
Google Experiments
New RelicLocalytics
Intercom
Analytics stack @ Soundcloud
Install
Attribution
In-App
Events
Campaign
Measurement
Screen
Flows
Conversion
Funnels
User
Testing
User/Device
demographics
Cohort
Analysis
Bug
Tracking
A/B
Testing
HeatMaps
App Store
Analytics
Sentiment
Tracking
Keyword
Performance
CPU/Battery/
Network
LTV modeling
Holy lean analytics, Batman...
Lean Analytics demystified
Pick one metric you want grow (yes, only one)
What things today drive growth (correlation)?
Experiment, rinse, repeat to find causation
2
3
4
1 Which stage is my business in?
Process Team Analytics
There’s no magic bullet for growth, but we can ‘hack’ traction:
1
2
3
4
5
6
7
8
9
10
Build your customer life cycle
Identify your points of leverage
Clearly state your measurable
goals
Pick your one metric that
matters
Acquire the right analytics tools
Run your experiments
Test, optimize, measure, rinse
& repeat
Find your own hacks
Pick a new one metric that
matters
Embrace the process and
mindset
Lean Analytics checklist
Go buy the book:
http://shop.oreilly.com/product/0636920026334.do
Thanks! More questions?
M: jtjepkema@measureworks.nl
T: @jeroentjepkema
W: www.measureworks.nl
View slides: bit.ly/VR-SBCGW15

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SBC Growth Week - Lean Analytics

  • 1. @jeroentjepkema Startup Bootcamp Growth Week, 30 November 2015 Lean Analytics
  • 3. A growth hacker is a person whose true north is growth - Sean Ellis, Founder Growthhackers.com “
  • 10. Every successful startup has found and benefited from a growth hack...
  • 12. In reality, growth hacking sucks...
  • 13. 90% of your experiments will fail...
  • 14. One trick pony? What works for others probably doesn’t work for you...
  • 20. There is NO secret sauce...
  • 21. Why should we care?
  • 23. Consumers are in control, startups need to be creative to grow, acquire new users and retain them...
  • 24. Don’t sell what you can make. Make what you can sell. Kevin Costner is a lousy entrepreneur.
  • 25. It’s no longer about if you can build it, it’s about if anyone will care
  • 26. That’s why we have to iterate & adapt to grow fast...
  • 28. Stickiness Keep people coming back.Approach? Get customers faster than you lose them. Metrics? Lean Startup: 3 engines of growth
  • 29. Lean Startup: 3 engines of growth Virality Make people invite friends. How many they tell, how fast they tell them. Stickiness Keep people coming back.Approach? Get customers faster than you lose them. Metrics?
  • 30. Virality Make people invite friends. How many they tell, how fast they tell them. Price Spend money to get customers. Customers are worth more than they cost. Stickiness Keep people coming back.Approach? Get customers faster than you lose them. Metrics? Lean Startup: 3 engines of growth
  • 34. The key is to map out the lifecycle of your customers...
  • 35. AARRR: Give us your money?
  • 38. Repeatable growth comes from understanding your best user and how to find and acquire more of them...
  • 39. Anatomy of a web page The DNA of your best bustomer
  • 44. Your goal: Push enough customers through this cycle to make more money than you spend
  • 45. Make them refer others Retain them Get revenue from them Acquire customers Activate them http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
  • 46. Analytics Flow Chart Customer Acquisition Cost paid direct search wom inherent virality VISITOR Freemium/trial Enrollment User Disengaged User Cancel Freemiu m churn Engaged User Free user disengagemen t Reactivate Cancel Trial abandonment rate Invite Others Paying Customer Reactivation rate Paid conversion FORMER USERS User Lifetime Value Reactivate FORMER CUSTOMERS Customer Lifetime Value Viral coefficient Viral rate Resolution Support data Account Billing Info Exp. Paid Churn Rate Tiering Capacity Limit Upselling rate Upselling Disengaged DissatisfiedTrial Over
  • 48. Stage EMPATHY I’ve found a real, poorly-met need that a reachable market faces. STICKINESS I’ve figured out how to solve the problem in a way they will keep using and pay for. VIRALITY I’ve found ways to get them to tell their friends, either intrinsically or through REVENUE The users and features fuel growth organically and artificially. SCALE I’ve found a sustainable, scalable business with the right margins in a healthy Gate Thefiveleanstages
  • 49. STICKINESS VIRALITY SCALE REVENUE EMPATHY Activation Retention Revenue Referral Acquisition Attention at scale Price Engine Virality Engine Sticky Engine Problem/ Solution fit Beyond Lean Eric Ries Engines of Growth Dave mcClure Pirate Metrics Alistair Croll Lean Analytics Stages GrowthRate
  • 51. 6 business model archetypes.
  • 52. 6 business model archetypes. E- commerce SaaS Media Mobile app User-gen content 2-sided market What your business are you in?
  • 53. E-Commerce SaaS Mobile 2-Sided market Media User Generated Content Empathy Stickiness Virality Revenue Scale Thestageyou’rein The business you’re in? The power of Lean Analytics
  • 54. E-Commerce SaaS Mobile 2-Sided market Media User Generated Content Empathy Stickiness Virality Revenue Scale Thestageyou’rein The business you’re in? One Metric That Matters The power of Lean Analytics
  • 55. Exercise 1: Build your own Analytics cycle
  • 56. Acquisition Traffic Drivers Customer Life Cycle - analytics flow chart Conversion Accelerators Loyalty Activation RetentionRevenue Referal Key metric: Key metric: Key metric: Key metric: Key metric:
  • 57. Acquisition Traffic Drivers Customer Life Cycle - analytics flow Conversion Accelerators Loyalty Activation RevenueRetention Referal Key metric: Key metric: Key metric: Key metric: Key metric: Direct Organic SEA Facebook Social Website Google Playstore Apple Store Upload foto’s Title & Description Contact Details Submit Discount Invite friends Vendor option Negotiate bid Joint bid
  • 59. The power of Lean Analytics
  • 60. The core of lean is iteration...
  • 62. The faster your can iterate, the faster you can find the right product & market...
  • 63. But people are liars...
  • 64. Learn Build Measure Data Ideas Product Lean = Iteration Everyone’s idea is the best, right? People love to build stuff Disappointment around every corner No data, No learning
  • 67. Lean Analytics focuses on the measure stage. If you measure better, you’re more likely to succeed...
  • 68. Why is Nigerian spam so badly written?
  • 69. Aunshul Rege of Rutgers University, USA in 2009 1000 emails 1-2 responses 1 fool and their money, parted. Bad language (0.1% conversion) Gullible (70% conversion) 1000 emails 100 responses 1 fool and their money, parted. Good language (10% conversion) Not-gullible (.07% conversion)
  • 70. Nigerian spammers have really learned to understand their target market and ‘customers’
  • 71. One Metric that Matters
  • 72. If a metric won’t change how you behave, it’s a bad metric
  • 73. A good metric is: Understandable If you’re busy explaining the data, you won’t be busy acting on it. Comparative Comparison is context. A ratio or rate The only way to measure change and roll up the tension between two metrics (MPH) Behavior changing What will you do differently based on the results you collect?
  • 74. Now ask yourself: How many of my current metrics are good metrics? How many do you use to make business decisions Are there others you’re not thinking of?
  • 75. Putting a line in the sand
  • 76. Which stage of the customer life cycle? Acquisition Revenue Referral Customers that buy >1x in 90d Once 2-2.5 per year >2.5 per year Your customers will buy from you Tell you which stage you’re in 1-15% 15-30% >30% Lower acquisition cost, high checkout Increasing return rates, market share Loyalty, selection, inventory size What to focus on (From: Lean Analytics/Kevin Hillstrom)
  • 77. Mileage may vary, knowing what normal is allows for rational decisions...
  • 79. “”...There are known knows; there are things we know that we know. There are known unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t know.
  • 80. “”...There are known knows; there are things we know that we know. There are known unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t know.
  • 81. Avinash Kaushik on Analytics Things we know don’t know we know Are facts which may be wrong and should be checked against data. we don’t know Are questions we can answer by reporting, which we should baseline & automate. we know Are intuition which we should quantify and teach to improve effectiveness, efficiency. we don’t know Are exploration which is where unfair advantage and interesting epiphanies live.
  • 82. known knowns known unknowns unknown unknowns:: :: (Vanity Metrics) (Actionable trends) (Leading Indicators)
  • 84. Correlated Two variables that are related (but may be dependent on something else.) Causal An independent variable that directly impacts a dependent one.
  • 85. 1 10 100 1000 10000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Relationship between Ice cream and drownings? Ice cream consumption Drownings
  • 88. Correlated Two variables that are related (but may be dependent on something else.) Causal An independent variable that directly impacts a dependent one. Ice cream & drowning. Summertime & drowning.
  • 89. A leading, causal, connection is the analytics superpower...
  • 90. ‣ A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya) ‣ A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang) ‣ Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman) ‣ A LinkedIn user getting to X connections in Y days (Elliot Schmukler) Some examples (From the 2012 Growth Hacking conference. http://growthhackersconference.com/)
  • 91. Picking your One Metric That Matters: It answers the most important questions for your business It puts focus into the entire company It forces you to put a line in the sand It inspires a culture of experimentation
  • 92. In a startup, focus is hard to achieve.
  • 93. That’s why you pick one metric at at time...
  • 94. (When you’re not a startup anymore you can pick more than one...)
  • 95. Everything is an experiment
  • 97. A wealth of information creates a poverty of attention... (Computers, Communications and the Public Interest, pages 40-41, Martin Greenberger, ed., The Johns Hopkins Press, 1971.)
  • 98. Focus on the desired behavior, not just the information. http://www.psychologytoday.com/blog/yes/200808/changing-minds-and-changing-towels 26% increase in towel re-use with an appeal to social norms; 33% increase when tied to the specific room.
  • 100. ‣Buying ‣Signing up ‣Sharing ‣Etc ‣Brainstorming ‣Stolen from others ‣User feedback ‣Etc One Metric That Matters: Choose the KPI you want to improve that represents the most fundamental business risk Did the KPI move past the line in the send Talk to customers and draw a new line Try again Measure the effect the change had on the KPI Implement the best experiment Design A/B experiments Make changes to the business that target this commonality Find an attribute the ‘best customers’ share that’s correlated with your KPI What do these ‘best customers’ have in common? Figure out how to improve that KPI? Have a good idea you want to try? Draw a line in the sand Identify your ‘best customers’ Pivot or give up? Without data With data Cautious testJust do it! Yes!
  • 101. Do AirBnB hosts get more business if property is professionally photographed?
  • 102. Gut instinct (hypothesis) Professional photography helps AirBnB’s business Candidate solution (MVP) 20 field photographers posing as employees Measure the results Compare photographed listings to a control group Make a decision Launch photography as a new feature for all hosts
  • 103. 5,000 shoots per month by February 2012
  • 104. “Those houses with high revenue look really nice.” Maybe it’s the camera? “What do all the frequently rented houses have in common?” Camera model? With data: find a commonality Without data: make a good guess
  • 105. There are experiments everywhere
  • 107. Blink Relevance Availability Scalability Sum
  • 108. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it
  • 109. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive?
  • 110. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Is this Channel relevant to your product/service? Does your audience hang out on this channel? Can you target them effectively? Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive?
  • 111. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Is this Channel relevant to your product/service? Does your audience hang out on this channel? Can you target them effectively? Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive? How scalable is this channel? Can we easily increase it? Law of diminishing returns
  • 112. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Is this Channel relevant to your product/service? Does your audience hang out on this channel? Can you target them effectively? Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive? How scalable is this channel? Can we easily increase it? Law of diminishing returns 1-5 1-5 1-5 1-5 BRASS score
  • 120. Complete Web Monitoring Web Analytics (what did they do on the site?)
  • 121. Complete Web Monitoring Web Analytics (what did they do on the site?) Usability (how did they interact with it?)
  • 122. Complete Web Monitoring Web Analytics (what did they do on the site?) Performance (could they do what they wanted to?) Usability (how did they interact with it?)
  • 123. Complete Web Monitoring Web Analytics (what did they do on the site?) Performance (could they do what they wanted to?) VoC (what were their motivations?) Usability (how did they interact with it?)
  • 124. Complete Web Monitoring Web Analytics (what did they do on the site?) Competition (what are they up to?) Performance (could they do what they wanted to?) VoC (what were their motivations?) Usability (how did they interact with it?)
  • 125. Complete Web Monitoring Web Analytics (what did they do on the site?) Competition (what are they up to?) Performance (could they do what they wanted to?) VoC (what were their motivations?) Usability (how did they interact with it?) Social Media (what were they saying?)
  • 126. Complete Web Monitoring Web Analytics (what did they do on the site?) Competition (what are they up to?) Performance (could they do what they wanted to?) VoC (what were their motivations?) Usability (how did they interact with it?) Social Media (what were they saying?) “Soft” data “Hard” data
  • 127. Putting a line in the sandAccounting...
  • 130. Voice of Customer PerformanceUsabilityWeb Analytics Social Media Google Analytics Hotjar Usabilla Webpagetest Obi4Wan Mouseflow Optimizely Qualaroo Hotjar Soasta mPulseMixpanel Sprout Visual Web Optimizer Google Experiments New RelicLocalytics Intercom
  • 131. Analytics stack @ Soundcloud Install Attribution In-App Events Campaign Measurement Screen Flows Conversion Funnels User Testing User/Device demographics Cohort Analysis Bug Tracking A/B Testing HeatMaps App Store Analytics Sentiment Tracking Keyword Performance CPU/Battery/ Network LTV modeling
  • 132. Holy lean analytics, Batman...
  • 134. Pick one metric you want grow (yes, only one) What things today drive growth (correlation)? Experiment, rinse, repeat to find causation 2 3 4 1 Which stage is my business in?
  • 135. Process Team Analytics There’s no magic bullet for growth, but we can ‘hack’ traction:
  • 136. 1 2 3 4 5 6 7 8 9 10 Build your customer life cycle Identify your points of leverage Clearly state your measurable goals Pick your one metric that matters Acquire the right analytics tools Run your experiments Test, optimize, measure, rinse & repeat Find your own hacks Pick a new one metric that matters Embrace the process and mindset Lean Analytics checklist
  • 137. Go buy the book: http://shop.oreilly.com/product/0636920026334.do
  • 138. Thanks! More questions? M: jtjepkema@measureworks.nl T: @jeroentjepkema W: www.measureworks.nl View slides: bit.ly/VR-SBCGW15