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January February March April May
Total Customers 1,000 2,000 3,000 4,000 5,000 Avg Revenue Per Customer $5.00 $4.50 $4.33 $4.25 $4.50 Figure 2-1 from Lean Analytics. Average revenue for 5 months as we add features, and reﬁne product. 22
Cohort Analysis Month of UseMonth
of UseMonth of UseMonth of UseMonth of Use Cohort 1 2 3 4 5 January $5.00 $3.00 $2.00 $1.00 $0.50 February $6.00 $4.00 $2.00 $1.00 March $7.00 $6.00 $5.00 April $8.00 $7.00 May $9.00 Averages $7.00 $5.00 $3.00 $1.00 $0.50 Figure 2-3 from Lean Analytics. Cohort Analysis of revenue data. Horizontal axis are cohorts (e.g. January cohort). Spending less initially. Spending increases. 24
1. Understand place of features
in your product. 2. Look at the frequency of their usage. 3. Does one feature lead to the usage of another? 4. How might you constrain a user’s experience or provide a certain workflow to adopt Feature X? 5. Can issues reported or enhancements requested be monetized? 40
• How many new customers
do you need? • How many new customers per week (per acquisition channel) do you think define a level of success? • Level of success being that which gets you to the next stage. 46
• What are metrics and
analytics • Methods of collecting metrics • Types of metrics • One metric that matters Review 50
• E-Commerce Site • Get
to shopping cart. • Reduce abandonment! • SaaS • Monthly subscription • Conversion v. cancellation rate • Marketplace • transaction fee • connecting buyers & sellers • Mobile App • discovery • in-app purchases • upgrading to paid app • Media • engagement with content Metrics based on business model 51