Metrics
Transcript: Growth Date 1 By Lilit Dallakyan Armenia Startup Academy Business Metrics & Models STOP Lying to Yourself Verify the meaning of words, and you will save the mankind from half of their delusions. We Are All Liars data startups failures Rene Descartes Case Study Airbnb Photography - Growth Within Growth Rules of Rules of Good Matric A Good Matric Is Comparative Understandable Ratio or Rate (usually) Behavior Changing 5 Things to Keep in 5 Things to keep in 1 1. Qualitative VS Quantitative WHY? What? How Much? 2 2. Vanity VS Actionable 8 Vanity Metrics to Watch Out For # hits # visits # unique visitors # followers/friends/likes time on site # emails collected # downloads # people # page views Stickiness DAU/MAU=50% # new visitors Actual engagement Retention (after register) Launch rate } 3 3. Exploratory VS Reporting Things we know don't know we know we don't know we know we don't know facts questions intuition exploration Initially a facebook app: Circle of Friends 10 million users in 1 year BUT Too few actual users 50% longer messages 115% attached pitures 110% deep conversations 60% accept app invites 75% click on notifications 180% click on news feed items 50% more engaged 4 4. Leading VS Lagging 5 5. Correlated VS Cousal Good for predictions 10,000 1,000 100 10 1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Great for changes Ice-cream sales People drowning FIND the Right Metric for Right Now ONE Matric that Matters The OMTM 4 Reasons Why 1. Answers the most important questions 4 Reasons WHY 3. Forces to draw a line in the sand 4. Focuses the entire company 2. Inspires a culture of experimentation MOZ less KPIs Net Adds Daily SaaS company New Free Trials Yesterday 7-day Net Add Average Pirate Metrics Retention Referral Revenue Activation Acquisition Users find you Users interact with you Users stay with you Users recommend you Users pay you Pirate Metrics Relevant Metrics Acquisition Activation Retention Revenue Referral Traffic, search results, cost of acquisition Enrollments, signups, subscriptions Engagement, time from last visit, churns CLV, conversion rate, shopping cart size Invites sent, viral cycle time, viral coefficient And expect it to change :) Define OMTM for your startup DECIDE What Business You're in 6 Business Models 1 Web-based retailer E-COMMERCE Acquisition mode Hybrid mode Loyalty mode <40% 40%-60% >60% Repurchase Rate <15% 15%-30% >30% 1 Year 90 Days Conversion Rate - % of visitors who buy sth. Useful Metrics Cost of Customer Acquisition - money spent to get smb. to buy sth. Revenue Per Customer - lifetime value of a customer 2 SaaS Software as a Service Churn - % of customers who leave in a given time period Engagement - % of customers who use your product daily Conversion - % of users who become paying customers upgrade to a higer-paying 3 FREE MOBILE APP Active Users - % of users who use the product on a daily or monthly basis: DAU and MAU Time to First Purchase - time after activation it takes users to make a purchase Virality - the average number of users a user invites 4 MEDIA SITE Audience & Churn - # of visitors and their loyality Ad Inventory - # of impressions that can be monetized Content/Ad Balance - max overall performance 5 USER-GENERATED CONTENT Content Creation - % of visitors who interact with the contect in some way (create, rate) Notification Effectiveness - % of users who act when told by push, email, etc. Content Sharng & Virality - the way contetnt is shared and its effect on growth 6 6 TWO-SIDED MARKETPLACES Buyer & Seller Growth - rate at which you're adding new buyers and sellers Inventory Growth - rate at which sellers are adding new listings (consider also completeness) Search Effectiveness - what buyers are searching for, & wather it matches your inventory You can't improve it unless you measure it! Contact me: lilitdallakyan3@gmail.com Thank you!