SlideShare uma empresa Scribd logo
1 de 32
Baixar para ler offline
Make Better Decisions!
Using Metrics to Win


Hiten Shah
PlusConf • December 7th, 2010
Ferrari F430 Spider
152 miles per hour
Most Startups Crash and Burn
Let’s talk about what else is
            easy.
Make Better Decisions!
Make Better Decisions!
Stop measuring what’s easy.
Start measuring what matters.
Vanity Metrics
Actionable Metrics
Original Hypothesis for KISSinsights



“ Our hypothesis is that product manager type people
  have a problem doing fast/effective/frequent
  customer research.”
Are the metrics you are
tracking helping you make
        decisions?
Example SaaS Web App
• People sign up and pay online
• They first sign up for a 7 day free trial
• Then they pay $97 per month
Example SaaS Web App
 • People sign up and pay online
 • They first sign up for a 7 day free trial
 • Then they pay $97 per month




What are your assumptions?
Example SaaS Web App Macro Steps




Visit Site   Sign Up   Activate   Upgrade
Software as a Service Product
         (Assumptions)

Key Actions   % of people        # of people
 Visit Site     100%                1000

  Sign Up        10%                    100

  Activate        5%                    50

 Upgrade          1%                    10

 Revenue               $970 per month
Baseline these key actions and
         assumptions.
Software as a Service Product
        (Actual Baseline)

Key Actions   % of people      # of people
 Visit Site     100%              1000

  Sign Up        3.6%                 36

  Activate       1.2%                 12

 Upgrade         0.4%                 4

 Revenue             $388 per month
What would you try to improve?


Key Actions   % of people      # of people
 Visit Site     100%              1000

  Sign Up        3.6%                 36

  Activate       1.2%                 12

 Upgrade         0.4%                 4

 Revenue             $388 per month
Software as a Service Product
          (Video Test)

Key Actions    % of people         # of people
 Visit Site       100%                 1000

 Sign Up           6.5%                 65

  Activate         1.8%                 18

 Upgrade           0.3%                 3

 Revenue      $291 per month vs. $388 baseline :(
Get inspired by what other’s have done
Software as a Service Product
         (Inspired Test)

Key Actions     % of people         # of people
 Visit Site        100%                1000

  Sign Up          7.7%                 77

  Activate         2.8%                 28

 Upgrade           1.2%                 12

 Revenue      $1164 per month vs. $388 baseline :)
Software as a Service Product
            (Compare all 3)

Key Actions   Baseline   Video Test   Inspired Test
 Visit Site    100%        100%          100%

  Sign Up      3.6%        6.5%          7.7%

  Activate     1.2%        1.8%          2.8%

 Upgrade       0.4%        0.3%          1.2%

 Revenue      $388 per   $291 per     $1164 per
               month      month        month
The Startup Pyramid
     The Race to the Top




              Growth



      Transition to Growth



      Product / Market Fit



   Sean Ellis: Startup-Marketing.com
AARRR
Created by Dave McClure - 500startups.com                                   Designed by




                                            1. ACQUISITION
                                  Customers come from various channels




                                            2. ACTIVATION
                                    Customers use product for first time




                                        YOUR PRODUCT


           3. RETENTION                                                    4. REFERRAL
     Customers come back multiple times                                    Customers refer others




                                             5. REVENUE
                                  Customers make your business money
Minimize TOTAL time through the loop

                                                     IDEAS

Learn Faster                                                                                    Build Faster
                               LEARN                                BUILD                                Unit Tests
Split Tests
Customer Interviews                                                                                 Usability Tests
Customer Development                                                                        Continuous Integration
Five Whys Root Cause                                                                       Incremental Deployment
Analysis                                                                                      Free & Open-Source
Customer Advisory Board                                                                               Components
Falsifiable Hypotheses              DATA                                CODE                     Cloud Computing
Product Owner                                                                              Cluster Immune System
                                                                                            Just-in-time Scalability
Accountability
                                                   MEASURE                                             Refactoring
Customer Archetypes                                               Measure Faster
Cross-functional Teams                                                                         Developer Sandbox

Semi-autonomous Teams     Split Tests                                   Funnel Analysis    Minimum Viable Product

Smoke Tests               Clear Product Owner                           Cohort Analysis
                          Continuous Deployment                     Net Promoter Score
                          Usability Tests                       Search Engine Marketing
                          Real-time Monitoring                        Real-Time Alerting
                          Customer Liaison                         Predictive Monitoring

                                       Eric Ries: StartupLessonsLearned.com
Lean Startup Data-Driven Process
No Departments, Just Two Teams




      ?
  Problem Team
      What are the
                        ☼
                        Solution Team
                               Find the
    most important       minimum solution
   problems to solve?   for a given problem.
15 - 45 minute team meetings (M,W,F)
“Your Focus Needs More Focus”
Questions?


Got questions? Want advice? Email Me!
      hshah@kissmetrics.com

Mais conteúdo relacionado

Mais procurados

Business Model Canvas (Dr. Htet Zan Linn)
Business Model Canvas (Dr. Htet Zan Linn)Business Model Canvas (Dr. Htet Zan Linn)
Business Model Canvas (Dr. Htet Zan Linn)Htet Zan Linn
 
The Art & Science of Growth Hacking
The Art & Science of Growth HackingThe Art & Science of Growth Hacking
The Art & Science of Growth HackingDavid Skok
 
Idea generation & development for startups
Idea generation & development for startupsIdea generation & development for startups
Idea generation & development for startupsMalcolm Lewis
 
Business Model Innovation - Key Note Speech
Business Model Innovation - Key Note Speech Business Model Innovation - Key Note Speech
Business Model Innovation - Key Note Speech Emad Saif
 
Business Model Canvas
Business Model CanvasBusiness Model Canvas
Business Model CanvasHandaru Sakti
 
Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)
Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)
Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)Dave McClure
 
10 steps to product/market fit
10 steps to product/market fit10 steps to product/market fit
10 steps to product/market fitAsh Maurya
 
Unit of Value: A Framework for Scaling
Unit of Value: A Framework for ScalingUnit of Value: A Framework for Scaling
Unit of Value: A Framework for ScalingGreylock Partners
 
Customer experience 2.0
Customer experience 2.0Customer experience 2.0
Customer experience 2.0Jane Vita
 
The Science behind Viral marketing
The Science behind Viral marketingThe Science behind Viral marketing
The Science behind Viral marketingDavid Skok
 
WebSummit 2018 - 9 Secrets for Startup Success
WebSummit 2018 - 9 Secrets for Startup SuccessWebSummit 2018 - 9 Secrets for Startup Success
WebSummit 2018 - 9 Secrets for Startup SuccessDavid Skok
 
Business model innovation
Business model innovationBusiness model innovation
Business model innovationDavid Skok
 
How to Start a Startup
How to Start a StartupHow to Start a Startup
How to Start a StartupMichael Seibel
 
10 Characteristics of Great Value Propositions
10 Characteristics of Great Value Propositions10 Characteristics of Great Value Propositions
10 Characteristics of Great Value PropositionsIdeas 2 Propel U
 
Startup Workshop #2: Business Model Canvas
Startup Workshop #2: Business Model CanvasStartup Workshop #2: Business Model Canvas
Startup Workshop #2: Business Model CanvasMilan Vukas
 
The Customer Job To Be Done Canvas - Prototype
The Customer Job To Be Done Canvas - PrototypeThe Customer Job To Be Done Canvas - Prototype
The Customer Job To Be Done Canvas - PrototypeHelge Tennø
 
Analysis In Agile: It's More than Just User Stories
Analysis In Agile: It's More than Just User StoriesAnalysis In Agile: It's More than Just User Stories
Analysis In Agile: It's More than Just User StoriesKent McDonald
 
Lean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvasLean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvasgistinitiative
 
Customer Development Methodology
Customer Development MethodologyCustomer Development Methodology
Customer Development MethodologyVenture Hacks
 
Market sizing TAM SAM SOM Target Market
Market sizing TAM SAM SOM Target MarketMarket sizing TAM SAM SOM Target Market
Market sizing TAM SAM SOM Target MarketReza Hashemi
 

Mais procurados (20)

Business Model Canvas (Dr. Htet Zan Linn)
Business Model Canvas (Dr. Htet Zan Linn)Business Model Canvas (Dr. Htet Zan Linn)
Business Model Canvas (Dr. Htet Zan Linn)
 
The Art & Science of Growth Hacking
The Art & Science of Growth HackingThe Art & Science of Growth Hacking
The Art & Science of Growth Hacking
 
Idea generation & development for startups
Idea generation & development for startupsIdea generation & development for startups
Idea generation & development for startups
 
Business Model Innovation - Key Note Speech
Business Model Innovation - Key Note Speech Business Model Innovation - Key Note Speech
Business Model Innovation - Key Note Speech
 
Business Model Canvas
Business Model CanvasBusiness Model Canvas
Business Model Canvas
 
Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)
Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)
Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008)
 
10 steps to product/market fit
10 steps to product/market fit10 steps to product/market fit
10 steps to product/market fit
 
Unit of Value: A Framework for Scaling
Unit of Value: A Framework for ScalingUnit of Value: A Framework for Scaling
Unit of Value: A Framework for Scaling
 
Customer experience 2.0
Customer experience 2.0Customer experience 2.0
Customer experience 2.0
 
The Science behind Viral marketing
The Science behind Viral marketingThe Science behind Viral marketing
The Science behind Viral marketing
 
WebSummit 2018 - 9 Secrets for Startup Success
WebSummit 2018 - 9 Secrets for Startup SuccessWebSummit 2018 - 9 Secrets for Startup Success
WebSummit 2018 - 9 Secrets for Startup Success
 
Business model innovation
Business model innovationBusiness model innovation
Business model innovation
 
How to Start a Startup
How to Start a StartupHow to Start a Startup
How to Start a Startup
 
10 Characteristics of Great Value Propositions
10 Characteristics of Great Value Propositions10 Characteristics of Great Value Propositions
10 Characteristics of Great Value Propositions
 
Startup Workshop #2: Business Model Canvas
Startup Workshop #2: Business Model CanvasStartup Workshop #2: Business Model Canvas
Startup Workshop #2: Business Model Canvas
 
The Customer Job To Be Done Canvas - Prototype
The Customer Job To Be Done Canvas - PrototypeThe Customer Job To Be Done Canvas - Prototype
The Customer Job To Be Done Canvas - Prototype
 
Analysis In Agile: It's More than Just User Stories
Analysis In Agile: It's More than Just User StoriesAnalysis In Agile: It's More than Just User Stories
Analysis In Agile: It's More than Just User Stories
 
Lean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvasLean startup, customer development, and the business model canvas
Lean startup, customer development, and the business model canvas
 
Customer Development Methodology
Customer Development MethodologyCustomer Development Methodology
Customer Development Methodology
 
Market sizing TAM SAM SOM Target Market
Market sizing TAM SAM SOM Target MarketMarket sizing TAM SAM SOM Target Market
Market sizing TAM SAM SOM Target Market
 

Destaque

Mint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch DeckMint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch DeckHiten Shah
 
Metrics for Startup Success and Failure
Metrics for Startup Success and FailureMetrics for Startup Success and Failure
Metrics for Startup Success and FailureHiten Shah
 
Facebook Social Games
Facebook Social GamesFacebook Social Games
Facebook Social GamesHiten Shah
 
Product Ideation and Customer Development
Product Ideation and Customer DevelopmentProduct Ideation and Customer Development
Product Ideation and Customer DevelopmentHiten Shah
 
Intelligent Growth: Finding & Testing Your Marketing Channels
Intelligent Growth: Finding & Testing Your Marketing ChannelsIntelligent Growth: Finding & Testing Your Marketing Channels
Intelligent Growth: Finding & Testing Your Marketing ChannelsHiten Shah
 
Mixpanel - Our pitch deck that we used to raise $65M
Mixpanel - Our pitch deck that we used to raise $65MMixpanel - Our pitch deck that we used to raise $65M
Mixpanel - Our pitch deck that we used to raise $65MSuhail Doshi
 
Startup PR: how to pitch your startup to the world
Startup PR: how to pitch your startup to the worldStartup PR: how to pitch your startup to the world
Startup PR: how to pitch your startup to the worldSilvio Gulizia
 
Metrics that every startup should know
Metrics that every startup should knowMetrics that every startup should know
Metrics that every startup should knowAlexey Orap
 
How to pitch a startup
How to pitch a startup How to pitch a startup
How to pitch a startup James Kennedy
 
Numbers not Napkins: Simple Startup Metrics
Numbers not Napkins: Simple Startup MetricsNumbers not Napkins: Simple Startup Metrics
Numbers not Napkins: Simple Startup MetricsDave McClure
 
Business Strategy for an Exponential World
Business Strategy for an Exponential WorldBusiness Strategy for an Exponential World
Business Strategy for an Exponential WorldAditya Anupkumar
 
entrepreneurs skills and characteristics
entrepreneurs skills and characteristicsentrepreneurs skills and characteristics
entrepreneurs skills and characteristicsAhtasham Ul Hassan
 
CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...
CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...
CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...Jorge Juan Fernández García
 
Exponential technologies institute
Exponential technologies instituteExponential technologies institute
Exponential technologies institutemoldovaictsummit2016
 
Exponential Technologies and Exponential Organizations Mix
Exponential Technologies and Exponential Organizations MixExponential Technologies and Exponential Organizations Mix
Exponential Technologies and Exponential Organizations MixTeodor V Panayotov
 
Skill of successful entrepreneur
Skill of successful entrepreneurSkill of successful entrepreneur
Skill of successful entrepreneurVARUN MODI
 
Lean Startup: Pivot vs Persevere
Lean Startup: Pivot vs PersevereLean Startup: Pivot vs Persevere
Lean Startup: Pivot vs PersevereCarlos Morales
 

Destaque (20)

Mint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch DeckMint.com Pre-Launch Pitch Deck
Mint.com Pre-Launch Pitch Deck
 
Metrics for Startup Success and Failure
Metrics for Startup Success and FailureMetrics for Startup Success and Failure
Metrics for Startup Success and Failure
 
Facebook Social Games
Facebook Social GamesFacebook Social Games
Facebook Social Games
 
Product Ideation and Customer Development
Product Ideation and Customer DevelopmentProduct Ideation and Customer Development
Product Ideation and Customer Development
 
Intelligent Growth: Finding & Testing Your Marketing Channels
Intelligent Growth: Finding & Testing Your Marketing ChannelsIntelligent Growth: Finding & Testing Your Marketing Channels
Intelligent Growth: Finding & Testing Your Marketing Channels
 
Mixpanel - Our pitch deck that we used to raise $65M
Mixpanel - Our pitch deck that we used to raise $65MMixpanel - Our pitch deck that we used to raise $65M
Mixpanel - Our pitch deck that we used to raise $65M
 
Startup PR: how to pitch your startup to the world
Startup PR: how to pitch your startup to the worldStartup PR: how to pitch your startup to the world
Startup PR: how to pitch your startup to the world
 
Metrics that every startup should know
Metrics that every startup should knowMetrics that every startup should know
Metrics that every startup should know
 
Virtual box
Virtual boxVirtual box
Virtual box
 
How to pitch a startup
How to pitch a startup How to pitch a startup
How to pitch a startup
 
Process Model Canvas - The Next Step
Process Model Canvas - The Next StepProcess Model Canvas - The Next Step
Process Model Canvas - The Next Step
 
Virtualbox
VirtualboxVirtualbox
Virtualbox
 
Numbers not Napkins: Simple Startup Metrics
Numbers not Napkins: Simple Startup MetricsNumbers not Napkins: Simple Startup Metrics
Numbers not Napkins: Simple Startup Metrics
 
Business Strategy for an Exponential World
Business Strategy for an Exponential WorldBusiness Strategy for an Exponential World
Business Strategy for an Exponential World
 
entrepreneurs skills and characteristics
entrepreneurs skills and characteristicsentrepreneurs skills and characteristics
entrepreneurs skills and characteristics
 
CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...
CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...
CHARITE ENTREPRENEURSHIP SUMMIT 2016 - Singularity University workshop (27 ma...
 
Exponential technologies institute
Exponential technologies instituteExponential technologies institute
Exponential technologies institute
 
Exponential Technologies and Exponential Organizations Mix
Exponential Technologies and Exponential Organizations MixExponential Technologies and Exponential Organizations Mix
Exponential Technologies and Exponential Organizations Mix
 
Skill of successful entrepreneur
Skill of successful entrepreneurSkill of successful entrepreneur
Skill of successful entrepreneur
 
Lean Startup: Pivot vs Persevere
Lean Startup: Pivot vs PersevereLean Startup: Pivot vs Persevere
Lean Startup: Pivot vs Persevere
 

Semelhante a Make Better Decisions!

Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)Dave McClure
 
The Startup Metrics Religion
The Startup Metrics ReligionThe Startup Metrics Religion
The Startup Metrics ReligionChikPea
 
Startup Metrics 4 Pirates
Startup Metrics 4 PiratesStartup Metrics 4 Pirates
Startup Metrics 4 Piratescaquino23
 
Discovery delivery 中国软件技术大会2011
Discovery delivery 中国软件技术大会2011Discovery delivery 中国软件技术大会2011
Discovery delivery 中国软件技术大会2011Qiao Liang
 
2009_06_08 The Lean Startup Tokyo edition
2009_06_08 The Lean Startup Tokyo edition2009_06_08 The Lean Startup Tokyo edition
2009_06_08 The Lean Startup Tokyo editionEric Ries
 
2012 05 15 eric ries the lean startup pwc canada
2012 05 15 eric ries the lean startup pwc canada2012 05 15 eric ries the lean startup pwc canada
2012 05 15 eric ries the lean startup pwc canadaEric Ries
 
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Geeks On A Plane
 
60 ideas in 60 minutes - Speech Analytics
60 ideas in 60 minutes - Speech Analytics60 ideas in 60 minutes - Speech Analytics
60 ideas in 60 minutes - Speech AnalyticsVasudeva Akula, Ph.D.
 
Eric Ries, Author/Speaker/Consultant, The Lean Startup
Eric Ries, Author/Speaker/Consultant, The Lean StartupEric Ries, Author/Speaker/Consultant, The Lean Startup
Eric Ries, Author/Speaker/Consultant, The Lean Startup500 Startups
 
Just-In-Time Licensing
Just-In-Time LicensingJust-In-Time Licensing
Just-In-Time LicensingFlexera
 
Faster apps. faster time to market. faster mean time to repair
Faster apps. faster time to market. faster mean time to repairFaster apps. faster time to market. faster mean time to repair
Faster apps. faster time to market. faster mean time to repairCompuware ASEAN
 
Clover Rings Up Digital Growth to Drive Experimentation
Clover Rings Up Digital Growth to Drive ExperimentationClover Rings Up Digital Growth to Drive Experimentation
Clover Rings Up Digital Growth to Drive ExperimentationOptimizely
 
More Test&Target – Less Time and Money
More Test&Target – Less Time and MoneyMore Test&Target – Less Time and Money
More Test&Target – Less Time and MoneyEnsighten
 
Emetrics - Oct 19 2011 - New York - X channel optimisation
Emetrics - Oct 19 2011 - New York - X channel optimisationEmetrics - Oct 19 2011 - New York - X channel optimisation
Emetrics - Oct 19 2011 - New York - X channel optimisationCraig Sullivan
 
Maneuver Warfare and Other Badass Habits of a Lean Product Developer

Maneuver Warfare and Other Badass Habits of a Lean Product Developer
Maneuver Warfare and Other Badass Habits of a Lean Product Developer

Maneuver Warfare and Other Badass Habits of a Lean Product Developer
Marko Taipale
 
2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute
2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute
2010 04 28 The Lean Startup webinar for the Lean Enterprise InstituteEric Ries
 
Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)
Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)
Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)Natalie Hollier
 
2010 10 15 the lean startup at tech_hub london
2010 10 15 the lean startup at tech_hub london2010 10 15 the lean startup at tech_hub london
2010 10 15 the lean startup at tech_hub londonEric Ries
 

Semelhante a Make Better Decisions! (20)

Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)Startup Metrics for Pirates (SeedCamp, Sept 2009)
Startup Metrics for Pirates (SeedCamp, Sept 2009)
 
The Startup Metrics Religion
The Startup Metrics ReligionThe Startup Metrics Religion
The Startup Metrics Religion
 
Startup Metrics 4 Pirates
Startup Metrics 4 PiratesStartup Metrics 4 Pirates
Startup Metrics 4 Pirates
 
Discovery delivery 中国软件技术大会2011
Discovery delivery 中国软件技术大会2011Discovery delivery 中国软件技术大会2011
Discovery delivery 中国软件技术大会2011
 
BLN CEO Tales. Eric Ries, The Lean Startup
BLN CEO Tales. Eric Ries, The Lean StartupBLN CEO Tales. Eric Ries, The Lean Startup
BLN CEO Tales. Eric Ries, The Lean Startup
 
2009_06_08 The Lean Startup Tokyo edition
2009_06_08 The Lean Startup Tokyo edition2009_06_08 The Lean Startup Tokyo edition
2009_06_08 The Lean Startup Tokyo edition
 
2012 05 15 eric ries the lean startup pwc canada
2012 05 15 eric ries the lean startup pwc canada2012 05 15 eric ries the lean startup pwc canada
2012 05 15 eric ries the lean startup pwc canada
 
Lean startup
Lean startupLean startup
Lean startup
 
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)Startup Metrics for Pirates (Startonomics Beijing, June 2009)
Startup Metrics for Pirates (Startonomics Beijing, June 2009)
 
60 ideas in 60 minutes - Speech Analytics
60 ideas in 60 minutes - Speech Analytics60 ideas in 60 minutes - Speech Analytics
60 ideas in 60 minutes - Speech Analytics
 
Eric Ries, Author/Speaker/Consultant, The Lean Startup
Eric Ries, Author/Speaker/Consultant, The Lean StartupEric Ries, Author/Speaker/Consultant, The Lean Startup
Eric Ries, Author/Speaker/Consultant, The Lean Startup
 
Just-In-Time Licensing
Just-In-Time LicensingJust-In-Time Licensing
Just-In-Time Licensing
 
Faster apps. faster time to market. faster mean time to repair
Faster apps. faster time to market. faster mean time to repairFaster apps. faster time to market. faster mean time to repair
Faster apps. faster time to market. faster mean time to repair
 
Clover Rings Up Digital Growth to Drive Experimentation
Clover Rings Up Digital Growth to Drive ExperimentationClover Rings Up Digital Growth to Drive Experimentation
Clover Rings Up Digital Growth to Drive Experimentation
 
More Test&Target – Less Time and Money
More Test&Target – Less Time and MoneyMore Test&Target – Less Time and Money
More Test&Target – Less Time and Money
 
Emetrics - Oct 19 2011 - New York - X channel optimisation
Emetrics - Oct 19 2011 - New York - X channel optimisationEmetrics - Oct 19 2011 - New York - X channel optimisation
Emetrics - Oct 19 2011 - New York - X channel optimisation
 
Maneuver Warfare and Other Badass Habits of a Lean Product Developer

Maneuver Warfare and Other Badass Habits of a Lean Product Developer
Maneuver Warfare and Other Badass Habits of a Lean Product Developer

Maneuver Warfare and Other Badass Habits of a Lean Product Developer

 
2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute
2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute
2010 04 28 The Lean Startup webinar for the Lean Enterprise Institute
 
Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)
Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)
Leaner and Smarter: How Enterprises Can Develop Better Digital Products (v2)
 
2010 10 15 the lean startup at tech_hub london
2010 10 15 the lean startup at tech_hub london2010 10 15 the lean startup at tech_hub london
2010 10 15 the lean startup at tech_hub london
 

Último

Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxWorkforce Group
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...Khaled Al Awadi
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.mcshagufta46
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarNathanielSchmuck
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examplesamberjiles31
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...Brian Solis
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 

Último (20)

Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptxCracking the ‘Business Process Outsourcing’ Code Main.pptx
Cracking the ‘Business Process Outsourcing’ Code Main.pptx
 
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...NewBase  25 March  2024  Energy News issue - 1710 by Khaled Al Awadi_compress...
NewBase 25 March 2024 Energy News issue - 1710 by Khaled Al Awadi_compress...
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.A flour, rice and Suji company in Jhang.
A flour, rice and Suji company in Jhang.
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Live-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry WebinarLive-Streaming in the Music Industry Webinar
Live-Streaming in the Music Industry Webinar
 
WAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdfWAM Corporate Presentation Mar 25 2024.pdf
WAM Corporate Presentation Mar 25 2024.pdf
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
Intellectual Property Licensing Examples
Intellectual Property Licensing ExamplesIntellectual Property Licensing Examples
Intellectual Property Licensing Examples
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
The End of Business as Usual: Rewire the Way You Work to Succeed in the Consu...
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 

Make Better Decisions!

  • 1. Make Better Decisions! Using Metrics to Win Hiten Shah PlusConf • December 7th, 2010
  • 5. Let’s talk about what else is easy.
  • 12. Original Hypothesis for KISSinsights “ Our hypothesis is that product manager type people have a problem doing fast/effective/frequent customer research.”
  • 13. Are the metrics you are tracking helping you make decisions?
  • 14. Example SaaS Web App • People sign up and pay online • They first sign up for a 7 day free trial • Then they pay $97 per month
  • 15. Example SaaS Web App • People sign up and pay online • They first sign up for a 7 day free trial • Then they pay $97 per month What are your assumptions?
  • 16. Example SaaS Web App Macro Steps Visit Site Sign Up Activate Upgrade
  • 17. Software as a Service Product (Assumptions) Key Actions % of people # of people Visit Site 100% 1000 Sign Up 10% 100 Activate 5% 50 Upgrade 1% 10 Revenue $970 per month
  • 18. Baseline these key actions and assumptions.
  • 19. Software as a Service Product (Actual Baseline) Key Actions % of people # of people Visit Site 100% 1000 Sign Up 3.6% 36 Activate 1.2% 12 Upgrade 0.4% 4 Revenue $388 per month
  • 20. What would you try to improve? Key Actions % of people # of people Visit Site 100% 1000 Sign Up 3.6% 36 Activate 1.2% 12 Upgrade 0.4% 4 Revenue $388 per month
  • 21. Software as a Service Product (Video Test) Key Actions % of people # of people Visit Site 100% 1000 Sign Up 6.5% 65 Activate 1.8% 18 Upgrade 0.3% 3 Revenue $291 per month vs. $388 baseline :(
  • 22. Get inspired by what other’s have done
  • 23. Software as a Service Product (Inspired Test) Key Actions % of people # of people Visit Site 100% 1000 Sign Up 7.7% 77 Activate 2.8% 28 Upgrade 1.2% 12 Revenue $1164 per month vs. $388 baseline :)
  • 24. Software as a Service Product (Compare all 3) Key Actions Baseline Video Test Inspired Test Visit Site 100% 100% 100% Sign Up 3.6% 6.5% 7.7% Activate 1.2% 1.8% 2.8% Upgrade 0.4% 0.3% 1.2% Revenue $388 per $291 per $1164 per month month month
  • 25. The Startup Pyramid The Race to the Top Growth Transition to Growth Product / Market Fit Sean Ellis: Startup-Marketing.com
  • 26. AARRR Created by Dave McClure - 500startups.com Designed by 1. ACQUISITION Customers come from various channels 2. ACTIVATION Customers use product for first time YOUR PRODUCT 3. RETENTION 4. REFERRAL Customers come back multiple times Customers refer others 5. REVENUE Customers make your business money
  • 27. Minimize TOTAL time through the loop IDEAS Learn Faster Build Faster LEARN BUILD Unit Tests Split Tests Customer Interviews Usability Tests Customer Development Continuous Integration Five Whys Root Cause Incremental Deployment Analysis Free & Open-Source Customer Advisory Board Components Falsifiable Hypotheses DATA CODE Cloud Computing Product Owner Cluster Immune System Just-in-time Scalability Accountability MEASURE Refactoring Customer Archetypes Measure Faster Cross-functional Teams Developer Sandbox Semi-autonomous Teams Split Tests Funnel Analysis Minimum Viable Product Smoke Tests Clear Product Owner Cohort Analysis Continuous Deployment Net Promoter Score Usability Tests Search Engine Marketing Real-time Monitoring Real-Time Alerting Customer Liaison Predictive Monitoring Eric Ries: StartupLessonsLearned.com
  • 29. No Departments, Just Two Teams ? Problem Team What are the ☼ Solution Team Find the most important minimum solution problems to solve? for a given problem.
  • 30. 15 - 45 minute team meetings (M,W,F)
  • 31. “Your Focus Needs More Focus”
  • 32. Questions? Got questions? Want advice? Email Me! hshah@kissmetrics.com

Notas do Editor

  1. Introduce myself.\n
  2. How many of your know how to drive?\nHow many of you would like to drive this car?\n
  3. How about blind-folded at 152 miles per hour?\nWell, that’s what most of us have been doing with our startups!\nSo...\n
  4. We crash and burn.\nYou might even crash and burn if you aren’t blind-folded!\nSame with a startup, it’s EASY to fail. We all know that.\n
  5. What’s easy?\n
  6. It’s easy to add Google Analytics to your site and see reports.\nI am sure, most of our Google Analytics graphs don’t look like this.\nTraditional web analytics shows you page views, visits, page per visit, time on site, etc...\nThese are all easy metrics to get.\n
  7. It’s also easy to track click through rates on ads.\n
  8. Measuring what’s easy will increase you likelihood of failure.\nYou’ll crash and burn and end up with a startup just like this Ferrari.\n
  9. Measuring what matters will increase your likelihood of success.\n
  10. Vanity metrics are easy, they make you feel good.\nBest case = Up and to the right\nEveryone trying to take credit for it.\nEither way, what do you do next?\n
  11. Actionable metrics point out problems and lead to solutions.\nThey make your learn faster and smarter about your business.\n
  12. “Our hypothesis is that product manager type people have a problem doing fast/effective/frequent customer research.”\nQuestion: Is this hypothesis in fact true or not?!\nTake the least amount of effort to find out...\nWe did everything from customer interviews, fake landing pages, building a minimum viable product, pivoting and now have reach product / market fit and are optimizing the business.\n
  13. How do you know what metrics matters? \nWhen I hear a metric from someone, I always try to ask them what decision that metric helps them make.\n
  14. People sign up and pay online\nSign up for a 7 day free trial\nPay $97 per month\n
  15. What would you measure?\nWhat would you optimize?\nSign up? Page views? Time on site? Bounce rate? CTR on ads?\nNext step is to write these down...\n\n
  16. \n
  17. Create a funnel out of the user actions and add numbers.\nThese user actions and numbers are your assumptions.\n
  18. Get real data!\n
  19. This is the funnel after implementing tracking for each step.\nBased on the original assumptions of 1% of people upgrading...\nWe’re not there yet. So...\n\n
  20. Try to understand your riskiest point.\nUsually if people aren’t purchasing you want to focus on that.\nIn this example, people were purchasing, but the sign up is really low.\nSo we tried...\n
  21. Adding a video to our homepage.\nIt increased the sign up rate, which was great.\nBut it decreased revenue :(\nFocusing on all the actionable metrics enabled us to see this.\nSo...we got inspired...\n
  22. \n
  23. The sign up rate increased, and the revenue increased dramatically.\n\n
  24. You want to make sure you can compare the groups of people for these tests.\n
  25. Sean Ellis and his 3 stages of a startup\n\nWe use the Startup Pyramid to remind us where we are and what our success metrics should be.\n\nProduct / Market Fit, Transition to Growth, Growth\n
  26. AARRR!!! Dave McClure’s pirate metrics.\n\nHelps you frame key areas of your business based on a customer’s lifecycle.\n\nWe use this for idea generation.\n
  27. And of course, Eric’s lean startup graphic.\n\nIt’s about validated learnings about customers and increasing cycle time.\n\nSo we can build something a LOT of people want to buy.\n
  28. The principles of build, measure, learn help us think about how to get answers.\nThe methods and process of communication and information exchange are much different in a data-driven startup.\nThe tactical stuff to build, measure and learn faster is one side of things.\nNow I’m going to talk about the business processes and what we have learned trying to apply them.\nBefore continuing...clarify business process for a startup.\n\n
  29. Company is divided into two teams. No sales, marketing, etc...\nProblem team identifies the most important problems to solve.\nSolution team finds the minimum solution for each problem.\nProblem team is more non-technical, solution team is more technical / “makers”. There are cross-functional folks too.\n
  30. 3 team meetings every week\nMonday - Team meeting to describe most important problems and goals for the week. Metrics + Few tasks, determine if solution team has input and let deadline for ideas on Tuesday.\nWednesday - Check in on how are we doing, solutions already getting implemented? What have we learned so far?\nFriday - Postmortem on learning and peek into next week from the Problem Team.\nProblem team is 1-week ahead.\n
  31. To do this effectively we built a tool we are internally call KISSfocus.\nA tool we built to increase autonomy and communication, focused on our validated learnings driven process.\n5 tasks per person, only 1 is active (green-lighted), not in KF then not exist, backlog.\nWe set weekly goal and metrics based on most important problems.\nWhole team has visibility across all tasks, keeps solution team focused on most important problems.\n
  32. \n