boost your growth engine with analytics

Boost Your Growth Engine with Analytics*

@buyukgokcesu

BoostingConversion.com

BoostingConversion.com

Cemal Buyukgokcesu

Analytics and Conversion Consultant

analytics

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13%

11%

16% 60%

Entry Product view Add to basket Purchase Order status checking

Entry Product view Add to basket Purchase Order status checking

Entry Product view Add to basket Purchase Order status checking

% of product pages viewed per device

There are known knowns; there are things we know we know (FACTS)

We also know there are known unknowns; that is to say we know there are some things we do not know (QUESTIONS)

There are also unknown unknowns; the ones we don't know we don't know (EXPLORATION)

What makes a good metric for a startup?

Comparative

A good metric should allow you to experiment, learn and iterate with it.

Understandable Ratio or rate Actionable

Before choosing the right metric for you...

Qualitative vs Quantitative

Leading vs Lagging

Correlated vs Causal

Vanity vs Actionable

What metrics to track?

- Metrics are “Business Type” dependent - Metrics are “Stage of your startup’s

growth” dependent

Source: http://leananalyticsbook.com/one-metric-that-matters/

Pirate metrics by Dave McClure (venture capitalist)

Source: http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version

Empathy:Get inside your target

market’s head and be sure you are solving a problem

people care about in a way someone will pay for

Lean Analytics Stages by Alistair Croll and Benjamin Yoskovitz

Product/Market Fit Question

“How would you feel if you could no longer use [your product]?”

Measure results on a scale, and define the successEg. At least 40% of users should say “Very disappointed”

Example metrics to track:- Daily/weekly active users- Bounce rate- Length of time it takes someone

to become inactive- # of inactive users that are

reactivated when sent an email- Features users engage and

spend time with- Features users ignore

Stickiness comes from a good product- Don’t look for rapid growth- Focus is around retention

and engagement metrics- Segment metrics by cohort

A segment is a group that shares some common characteristics

eg. Visitors using firefox browser have significantly fewer engagement

Total Users Average Churn Rate

January 1.000 24%

February 2.000 23%

March 3.000 23%

April 4.000 21%

May 5.000 18%

Average Churn Rate of Cohort Users

18%

17%

16%

13%

8%

Cohort Analysis compares similar groups over time

We are all delusional

Virality: Focus on user acquisition and growth

- but keep an eye on your stickiness too

Net Promoter Score (NPS) is a leading indicator of other metrics

NPS = % Promoters - % Detractors

One question survey: “How likely is it you would recommend my

product to a friend or colleague?”

Some examples of leading indicators of engaged users

Facebook: User reaching 7 friends within 10 days of signing up

Zynga: Day 1 retention - if someone comes back a day after signing up for a game

Source: http://www.richardprice.io/post/34652740246/growth-hacking-leading-indicators-of-engaged-users

Some examples of leading indicators of engaged users

Dropbox: When users put at least one file in one Dropbox folder on one device

Twitter: Following a certain number of people, and a certain percentage of those people following the user back

LinkedIn: User getting to X connections in Y days

Source: http://www.richardprice.io/post/34652740246/growth-hacking-leading-indicators-of-engaged-users

Revenue: Focus on maximizing and optimizing revenue

Example metrics to track:- Customer lifetime value

- Revenue per customer- Click-through Rate- Conversion rate- Cart size- Checkout abandonment rate

- Customer acquisition cost- Months to customer breakeven- Cancellation rate

Cost per Acquisition

Source: http://www.kaushik.net/avinash/best-web-metrics-kpis-small-medium-large-business/

Cancellation rate =

Percentage number of customers who cancel in any given month

compared to total (paying) customers

# months = 1 / cancellation rate LTV = monthly revenue / cancellation rate

Customer lifetime value (LTV) =

Monthly revenue x

# months in lifetime

If user’s monthly revenue €20 a month and cancellation rate is 10% a month

LTV = monthly revenue / cancellation rate

LTV = €20 / 10% = €200

Remember: Short term cancellation rates are much higher than long term

Time to customer breakeven: How long a customer takes to pay you back?

$27 Customer lifetime value

11 Months from activation to departure

$2.45 Average revenue per customer per month

$14 Cost to acquire a customer

5.7 Months to customer breakeven

Find the One Metric That

Matters

Pick a single metric that’s incredibly

important for the step you’re currently working through in

your startup

Source: http://www.kaushik.net/avinash/lean-analytics-cycle-metrics-hypothesis-experiment-act/

Key Takeaways

Purpose of analyticsTo find your way to the right product and market before the money runs out

A good metricA good metric is comparative, understandable, ratio or rate, actionable

Segments, cohorts, testsUse segments, analyze cohorts, make testing part of your DNA

Before deciding on metrics to trackConfirm your “Business Type” and “Stage of your startup’s growth”

Focus on one metricFind your One Metric That Matters

Thanks!

@buyukgokcesu

BoostingConversion.com

BoostingConversion.com

Cemal Buyukgokcesu

Analytics and Conversion Consultant