4. A business metric is any type of
measurement used to gauge some
quantifiable component of a company’s
performance such as ROI, churn rate, etc.
“
”
4
5. “
”
Analytics is the discovery and
communication of meaningful
patterns in data.
5
22. 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
24. 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
40. 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
45. • Most important question you have.
• Draw a line.
• Focuses entire company.
• Encourages a culture of experimentation & small
failures.
45
46. • 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
50. • What are metrics and analytics
• Methods of collecting metrics
• Types of metrics
• One metric that matters
Review
50
51. • 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