the talent institute - grow better products, faster

@jeroentjepkemaThe Talent Institute, 10 June 2016

Grow Better Products, Faster

Slides: bit.ly/TTI-GROW

09.00-10.30:Positioning, Life Cycle & Messaging10.30-10.45:Coffee!10.45-11.45:Frictionless User Experience11.45-12.00:More coffee!12.00-12.30:Analytics Stack

Part 1:Positioning, Life Cycles & Messaging

Survival of the fittest

It is not the strongest of the species that survives, nor the most intelligent that survives.

It is the one that is most adaptable to change to their environment.

- Charles Darwin

Three kinds of innovation

Sustain(optimizing for more

of the same)

Improve alongcurrent metrics...

...or alterthe rate of improvement

Innovate(introduce nearby product,

market, or method)

Switch to a newvalue model

of the same)

Innovate(introduce nearby product,

market, or method)

Switch to a newvalue model

of the same)

Disrupt(Fundamentally changing

the business model)

Change the businessmodel entirely

Experiment with product, market, and method.

Product(new “what”)

Market(new “who”)

Method(new “how”)

A three-maxima model of (enterprise) innovation

Currentstate

Business optimization

Currentstate

Product,market

innovation

You can convince executives of this

because some of it is familiar.

Currentstate

Product,market

innovation

Business model

innovation

You can convince executives of this

because some of it is familiar.

This is terrifying because it eats the current business.

SustainingNext year’s car

Sustaining InnovativeNext year’s car Electric car,

same dealer

Sustaining Innovative DisruptiveNext year’s car Electric car,

same dealerOn-demand, app-based

car service

...then disruptive innovation

produces exponential growth.

If sustaining innovation produces linear growth...

Another way to look at it

Don’t sell what you can make. Make what you can sell.

Kevin Costner is a lousy entrepreneur.

It’s no longer about if you can build it, it’s about if anyone will care (for your result)

The Innovation Dilemma

the Kodak moment

The problem is framing

The problem is framing...

a.k.a. The Innovator’s Dilemma

YOU ARE HERE

LOCALMAXIMUM

OPTIMIZATIONOF CURRENT

METRICS/CUSTOMERS

GLOBALMAXIMUM

YOU ARE HERE

INNOVATION=

SURVIVAL

EVERYBODY HATESGOING DOWNHILL

YOU ARE HERE

GLOBALMAXIMUM

INNOVATION=

SURVIVAL

Or, why I hate growth hacking?

the ‘Growth Hack’

An exploit (from the verb to exploit, in the meaning of using something to one’s own advantage) is a piece

of software, a chunk of data, or sequence of commands that takes advantage of a bug, glitch or

vulnerability in a system order to cause unintended or unanticipated behavior to occur on computer software,

hardware, or something electronic (usually computerised).

If an exploit is part of a system, then Growth Hacking is to get the system to do something it’s not designed to do.

AirBnB and Craigslist

Every successful startup has found and benefited from a growth hack...

and then... marketing happened

In reality, growth hacking sucks...

One trick pony? What works for others probably doesn’t work for you...

90% of your experiments will fail...

Growing before product/market fit? Really?

a.k.a. founders blindness

Why is this important?

Consumers are in control, we need to be creative to

grow, acquire new users and retain them...

“”Zero moment of Truth:That moment when you grab your laptop, mobile phone or other device and start learning about a product/service you’re thinking about trying.

It’s a moment where consumers make choices that affect the success and failure of nearly every brand in the world...

Impact of Mobile?

YourBRAND

Impact of Mobile?

every day

Flipboard

e-mail

Twitter

Fitbit

Foursquare

Human.co

facebook

twitter

NBA.com

Newsapps

YourBRAND

Impact of Mobile?

every week

every day

Flipboard

e-mail

Netflix

Youtube

Twitter

Dropbox

Parkmobile

Soundcloud

Evernote

Fitbit

Foursquare

Human.co

Facetimefacebook

twitter

NBA.com

News apps

YourBRAND

Impact of Mobile?

every week

every day

Flipboard

e-mail

Shazam

GoogleHangouts

Netflix

Youtube

Twitter

Dropbox

Parkmobile

GooglePlus

Soundcloud

Evernote

Google Maps

Youtube

Meetup

Fitbit

Foursquare

Human.co

Facetimefacebook

twitter

NBA.com

News apps

every month

YourBRAND

Impact of Mobile?

YourBRAND?

every week

every day

Flipboard

e-mail

Shazam

GoogleHangouts

Netflix

Youtube

Twitter

Dropbox

Parkmobile

GooglePlus

Soundcloud

Evernote

Google Maps

Youtube

Meetup

Fitbit

Foursquare

Human.co

Facetimefacebook

twitter

NBA.com

every month

YourBRAND

Current markets & channels are noisy

But most of all, users are skeptical and have the ability to

check everything

Enter positioning...

A positioning statement describes your unique value for something that an

identified market segment truly cares about

http://differentbetterbook.comSee:

Positioning brings focus to your entire organization, as it has to match every interaction a user has with both company, competitor and

product...

Position yourself: What kind of market am I chasing?

CurrentCurrent New

Market

Product category

Dominate:Go for market

leadership to ncrease revenues, market share and brand differentiation.

Based on H. Igor Ansoff’s matrix

CurrentCurrent New

Market

Dominate:Go for market leadership to

increase revenues, market share and

brand differentiation.

Segment:Wrap your product around customers understanding of

market. High rewards, less

potential growth

Product category

CurrentCurrent New

Market

potential growth

Reframe:Beat leadership by

creating new category from

existing one. Focus on innovation

Product category

CurrentCurrent New

Market

potential growth

Create new:Merge existing

categories to create blue ocean.

Convince the world for first mover

advantage

Product category

CurrentCurrent New

Market

potential growth

Create new:Merge existing

categories to create blue ocean.

Convince the world for first mover

advantage

Mileage

depend

s on co

mpetitiv

e land

, your

, finan

Positioning Canvas(because all good things need one)

What is it?A short statement that describes what you are/do

Target SegmentThe specific target market you are targeting in the short term (aka which are the leads you’re most likely to close?)

Market CategoryDescribe the market that you’re competing in

Competitive AlternativesIf your customers don’t use you, what products/services do they use?

Primary DifferentiationThe one thing (yes, one!) that sets you apart the most from competitive analysis?

Key benefitThe biggest benefit your target market derives from your offering?

Positioning Canvas

Positioning. Your experiment umbrella:

(re-)Framing Product Messagemap Market Positioning

components

Why Growth Hacking loves positioning...

The core of Growth Hacking is rapid experimentation

Growth hacking, demystified.

Find correlation

Test causality

Rinse & Repeat for optimum

Pick a metric to change

Run multiple experiments (on-brand vs. off-brand)

Understand your product faster, push your core message...

Exercise 1: Build positioning statement

What is it?A short statement that describes what you are/do

Target SegmentThe specific target market you are targeting in the short term (aka which are the leads you’re most likely to close?)

Market CategoryDescribe the market that you’re competing in

Competitive AlternativesIf your customers don’t use you, what products/services do they use

Primary DifferentiationThe one thing (yes, one!) that sets you apart the most from competitive analysis

Key benefitThe biggest benefit your target market derives from your offering

Positioning Canvas

Part 2:Messaging

Turn your audience into a prospect

http://solveforinteresting.com/building-a-message-map/

“I need a vehicle to get around, be productive, and enjoy my life.”

“I want to own a car because it’s convenient; it’s a personal relationship; I don’t trust others.”

“I want to save money and fuel. I also care about the environment and want to be seen as ‘green’.”

People who want to driveA.

Prospective car buyersB.

People looking for a hybridC.

Honda Civic OwnersD.“Your best customer”

Everyone in the world

Those who don’t need cars•I’m too young to drive• I’m too old to drive• I can walk or take public

transit

Car users who won’t buy•It’s too expensive for me• I will use a shared car service• It’ll get stolen

Those who won’t buy hybrids•Hybrids are gutless•Batteries are toxic & explosive• In the end it costs more than it

I will buy another brand•I’ve always driven a VW•Toyotas are reliable• I want something prestigious

Honda Civic OwnersD.

“Your best customer”

transit

“Isn’t it time you got out of the city?” campaign showing how cars make nature accessible &

ridiculing urban hipsters.

Ads showing how cars are needed any time (pregnancy, errands, urgent business) and

how a car is a “personal

Urgency (“every time you drive a non-hybrid car you kill the planet

a little”) and testimonials from buyers who’ve saved money.

Honda branding ads and model-specific promotions.

Follow-up satisfaction campaign to encourage buyers to tell their friends

Honda Civic OwnersD.“Your best customer”

transit

“Isn’t it time you got out of the city?” campaign showing how cars make nature accessible &

ridiculing urban hipsters.

Ads showing how cars are needed any time (pregnancy, errands, urgent business) and

how a car is a “personal

Urgency (“every time you drive a non-hybrid car you kill the planet

a little”) and testimonials from buyers who’ve saved money.

Honda branding ads and model-specific promotions.

Follow-up satisfaction campaign to encourage buyers to tell their friends

Sponsor a driving school

“Give the gift of driving” campaign for grandparents.

Financing, cashback

Sell to carshares; underscore their

PR on dangers of commuting, pedestrian

deaths

Theft warranty, tracking services, high-end locks

Independent tests, standard metrics (0-60 in

Lab research, studies

Prove Honda hires US

Spontaneous accel. stories

Premium brand (Acura)

Honda Civic OwnersD.

“Your best customer”

How to build your marketing campaign?

http://www.yearonelabs.com/three-questions-all-marketers-must-answer/

When will you decide if it worked, and adjust?

Who are you targeting?

Size, reachability,homogeneity.

What do you want them to

Specific, measurablecall to action.

Why should they do it?

Laid, paid, made,or afraid; messagefits their mindset.

How will you know if they

Analytics,instrumentation.

Part 3:Growth Engines

Stickiness

Keep people coming back.Approach?

Get customers faster than you

lose them.Metrics?

Lean Startup: 3 engines of growth

Virality

Make people invite friends.

How many they tell, how fast

they tell them.

Stickiness

lose them.Metrics?

Virality

Make people invite friends.

How many they tell, how fast

they tell them.

Spend money to get customers.

Customers are worth more than

they cost.

Stickiness

lose them.Metrics?

Lean Startup: 3 engines of growth

Virality PriceStickiness

Users RevenueTraffic ? ?

How to ‘find’ growth?

The key is to map out the lifecycle of your customers...

AARRR: Give us your conversion?

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle Funnel

Secret sauce?

Website.com

4. REFERRAL

Emails & widgets

Campaigns, Contests

5. Revenue $$$

Biz DevAds, Lead Gen, Subscriptions, etc

2. Activation

Homepage / Landing Page

Product Features

1. ACQUISITION

SEOSEM

Apps & Widgets

Affiliates

PR Biz DevCampaigns,

Contests

Direct, Tel, TV

Social Networks

Domains

3. RETENTION

Emails & Alerts

Blogs, Content

System Events & Time-based Features

Anatomy of a web page

The DNA of your best bustomer

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle Funnel

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelChannels

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelChannels

Product

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelDi

rneyChannels

Product

timiza

Acquisition

Activation

Retention

Revenue

Referal

Life Cycle FunnelDi

rneyChannels

Product

Repeatable growth comes from understanding your product, finding your

best user and how to acquire more of them...

Make themrefer

Retain them

Get revenue from them

Acquirecustomers

Activate them

Repeatable growth comes from understanding your product,

finding your best user and how to acquire more of them...

Always build your own life cycle funnel:‣Riskiest assumptions‣Data Driven

Customer Acquisition Cost

paid direct search wom inherent virality

VISITOR

Freemium/trial

Enrollment

Disengaged User

Cancel

Freemium churn

Engaged User

Free user disengagemen

Reactivate

Cancel

Trial abandonment

Invite Others

Paying Customer

Reactivationrate

Paid conversion

FORMER USERSUser Lifetime

Reactivate

FORMER CUSTOMERS

Customer Lifetime Value

Viral coefficient

Viral rate

Resolution

Support data

Account Billing Info Exp.

Paid Churn Rate

Tiering

Capacity Limit

Upselling rate Upselling

Disengaged DissatisfiedTrial Over

E-commerce SaaS MediaMobile

appUser-gencontent

2-sidedmarket

Six business model archetypes

The mobile app!customer lifecycle!

Ratings Reviews

Search

Leaderboards

Purchases

Downloads

Installs

Disengagement

Reactivation

Uninstallation

Disengagement

Account"creation

Virality

Downloads,"Gross revenue

App sales

Activation

Churn, CLV

In-app"purchases

Incentivized

Legitimate

Fraudulent

Ratings!

How to fit your business idea?

How to fit your business idea?Start with the customer journey

Consider your Monday morning routine?

Wake up What happens here?First

coffee break

Booking a holiday, the start of an emotional roller coaster...

ShareOrientation Search Selection Booking Planning Departure Holiday Arrival Share

Experience

Booking a holiday, the start of an emotional roller coaster...This is where the next trip starts

Part 4:Frictionless Fundamentals

A wealth of information creates a poverty of attention...

(Computers, Communications and the Public Interest, pages 40-41, Martin Greenberger, ed., The Johns Hopkins Press, 1971.)

Source: Dr. BJ Fogg, Stanford University

Action: Fogg Behavior Model

trigger(SUCCESS!)

trigger(FAIL!)

ability

ivatio

Focus on the desired behavior, not just the information.

http://www.psychologytoday.com/blog/yes/200808/changing-minds-and-changing-towels

26% increase in towel re-use with an appeal to social norms; 33% increase when tied to the specific room.

Why UX should be your priority?

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013

“You’re more likely to miss stuff just because it takes a long time to scroll down the page”~ User 56A on the MeetHue.com website

“Your getting blamed for things that are not your fault”

WHAT happened here?

the WAITING experience

Presented by MeasureWorks & Philips at ShoppingToday 2013, reference: http://bit.ly/MW-ST2013Source: Jakob Nielsen

Visual confirmation

Source: Jakob Nielsen

0 0,5 1,5

Visual confirmation

UnderstandNavigation

0 0,5 1,5 3

Visual confirmation

Relevant Content?

0 0,5 1,5 3 10

Visual confirmation

Relevant Content?

ByeBye!

Build for Information Processing

Request(Zero Moment of Truth)

Reply(Skeleton = Perceived value)

https://www.youtube.com/watch?v=0LueoZaifVE

Orientation(Rendering = Orientation)

Decision(Convert into actions)

Don’t stop with one page: Flow state

Provide relevant content to support task completion...

...deliver it fast, focus on perception!

Click away slidePerformance tolerance?

Offline vs. Online

“Both offline and online consumers associate slow performance with

poor customer service”

Queuing for iPhone6 launch - London 2014

Purpose vs. Context

Online users often lack context for delays...

...and see no other option than to click away

...Conversion Impact Score

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Category Title

Real User Monitoring: True Conversion Rate

Competitive Custom B2B

Data collected by MeasureWorks at various e-commerce websites using real user monitoring, reference: http://bit.ly/MW-VEUrum

Optimal Conversion: 1,8s

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Category Title

LD50: 4,3s

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Category Title

LD50: 4,3s

Poverty Line: 7,6s

0-0,5 0,5-1 1-1,5 1,5-2 2-2,5 2,5-3 3-3,5 3,5-4 4-5 5-6 6-7 7-8 8-9 9-10 >10

Category Title

On average a fast experience converts up to 70% higher...

6 UX ‘hacks’ for happy customers...

Perception is KEY!

http://www.nytimes.com/2012/08/19/opinion/sunday/why-waiting-in-line-is-torture.html?pagewanted=all&_r=0

http://answers.yahoo.com/question/index?qid=1005081200005

nytimes.com/2004/02/27/nyregion/27BUTT.html

Which is faster?

Tested with webpagetest.org (WiFi (10Mbs down/1,5Mbs up), 4G (5Mbps Down, 1Mbps Up) & 3G (2000Kbps Down, 764Kbps Up))

Which is faster?

“The faster you can visualize your content, the more engaged your visitors will become”

Understand & prioritize your feature content

A: Load carousel first B: Delayed download

20% time spent on priority content 1% time spent on priority content

http://www.nngroup.com/articles/website-response-times/

Yet, 83% of all Dutch eCommerce sites loads menu before feature

content...

“The faster you can paint your feature content,

the more engaged your visitors will become”

Avoid (too much) Sequencing

“Provide your users the time to understand navigation as they often

overlook things that change too fast and/or often”

www.example.com

Homepage Search Productoverview

Product Detail Basket

Understand navigation (1-2 sec.)

Consistentnavigation (0,5-1 sec.)

Renew yourorientation (1-2 sec.)

renewyour navigation

(1-2 sec.)

Consistentnavigation (0,5-1 sec.)

Consistent, simple & user generated navigation

Use speed to increase perceived value

Product Detail Payment

Tolerated speed

Fast response = Fast Experience?

The kayak effect: http://bit.ly/UgTneD

People prefer to wait for up to a minute to get what they

want from an app rather than get it instantly – if, and

it’s an important if, they believe the app is working

for them

http://www.fastcodesign.com/1669788/the-3-white-lies-behind-instagrams-lightning-speed

http://blog.placeit.net/ux-tactics-make-slow-things-seem-faster/

Show effort, provide specific content,

build trust

Set your performance budget

Setting a performance budget:A pre-defined set of metrics

that describe normal behavior

in order to detect variances

and to be comparable in historical context

Example performance budget...

Perception

Actionable

Page Size

Time to first Byte 0.0 - 0.2 sec.

Speed Index 0.5 - 1 sec.

Document complete: 1-3 sec

Variation < 20% between pages in funnel

Page size < 1Mb (75 requests)

Example performance budget...

A practical (and easy DIY) example:

Service Window

Purchasing a bed,

must be completed (speed),

where every page loads under 3 sec.,

from any location in the Netherlands,

for 95% of all users,

every 5 minutes between 6am and 12pm,

using IE9 and higher,

Customer journey

Metric: Speed

Target: Sec

User scenario

User locations

Percentile

measured with Synthetic Monitoring. Monitoring type

Business

Performance

Don’t forget? Optimize for Mobile

Let the device work...

Make life easy, insert touch events...

Search

Touch gestures

Native gestures

Scrolling

Make your UX sticky...

Experience vs. surfing online....

Always compared to past experiences

Task completion has positive impact

Slow downs have more impact

15-20% worse than reality

Slow downs have more impact

Consumers visit 18-23 travel websites before they finally convert

Source: TNS/Nipo

Search/Orientation phase

Perception of experience

Experience influence cycle

http://twinkle100.measureworks.nl

Delivered experience

Your website

Stimulate content/conversion

Search/Orientation phase

Perception of experience

http://twinkle100.measureworks.nl

Experience influence cycle

Holy experience, Batman...

Good Design +

Fast Delivery =

Great User Experience

Three simple performance checks

actionable, non-technical,

End User Focused

How fast am I?

go to http://webpagetest.org

www.example.com

select location

select browser

Set connection speed

Create video

1: Configure test

2: Key Optimizations

3: Performance metrics

Use Akamai State of the Internet quarterly reports to select right bandwith per country: http://www.akamai.com/stateoftheinternet/

http://www.digitalmarketinglive.nl

Anatomy of a web page

A set of resources to be fetched from a server...

The browser renders the page...

This results in the page being displayed on your screen

Introducing the waterfall chart

See also: 90 minute optimization cycle, Strangeloop, Velocity 2012

Resources

Start Render

Resources

Start Render

Document Complete

Waterfall techniquea.k.a. show me where it hurts

Code Green:Time to first byte?

Code Orange:Too many connections

106 Connections(almost one per request)

Code Blue:Too many bytes (page bloat)

Code Grey:Bad repeat view

First view Repeat view

Why is this important?

Why is this important? 85-90% of all slowdowns are

caused by your front-end code...

Visual Comparison

Compared to the competition?

No permission needed...

9.76 sec. 4.75 sec. 7.09 sec. 2.31 sec.

Or the easy way: http://benchmark.measureworks.nl

Responsive web?

http://whatismyscreenresolution.com

Do you trust your third parties?

4.3 sec22.1 sec

Source: webpagetest.org

Source: requestmap.webperf.tools

Bonus: Test your design

1 2 3 4 5

Slow Average Fast

site s

Design score (1=bad - 5=beautiful)

When users experienced a slow website, 60% of them rated

design lower

Page Load Time: https://chrome.google.com/webstore/detail/page-load-time/fploionmjgeclbkemipmkogoaohcdbig

Webpagetest: https://chrome.google.com/webstore/detail/webpagetest/jhbepelanbbipbinkkjcadbjjinjmiec

Page Analytics: https://chrome.google.com/webstore/detail/page-analytics-by-google/fnbdnhhicmebfgdgglcdacdapkcihcoh

Resources: https://github.com/micmro/performance-bookmarklet

Ghostery: https://chrome.google.com/webstore/detail/ghostery/mlomiejdfkolichcflejclcbmpeaniij

Build With: https://chrome.google.com/webstore/detail/builtwith-technology-prof/dapjbgnjinbpoindlpdmhochffioedbn

Responsive Design: https://chrome.google.com/webstore/detail/responsive-web-design-tes/objclahbaimlfnbjdeobicmmlnbhamkg

Clear Cache: https://chrome.google.com/webstore/detail/clear-cache/cppjkneekbjaeellbfkmgnhonkkjfpdn

SPOF: https://chrome.google.com/webstore/detail/spof-o-matic/plikhggfbplemddobondkeogomgoodeg

Browser Plugins:

Exercise 2: Test the speed of your website

http://wpt2.measureworks.nl/result/160609_X6_554/

http://wpt2.measureworks.nl/result/160609_2W_e11794954c2320eaba3f99cd63af5a8c/

Desktop:

Mobile:

Part 5:CRO tactics

The 5 “mores”

(Sergio Zyman)

More things

To more people

For more money

More often

More efficiently‣ Supply chain optimization‣ Per-transaction cost reduction

‣ Loyal customer base that returns‣ Demand prediction, notification

‣ Maximum shopping cart‣ Price skimming/tiering

‣ Highly viral offering‣ Low incremental order costs

‣ Inventory increase‣ Gifting, wish lists

http://www.slideshare.net/GrowthTribe/growth-tribe-alistair-croll-startup-workshop-lean-analytics-growth-hacking

Best deal: Get 1, pay for 2

A typical sales call:Jeroen: How you doing?Bas: Kinda bored...Jeroen: So if I summarize, your challenge is to solve problem x and y, Right?...Bas: Yes, that’s right!Jeroen: It sounds like this is a big need?Bas: Yeah, that’s why we entered your online form to learn moreJeroen: Awesome. Well it sounds like you secured the budget for this?Bas: Yes, we have...Jeroen: Awesome, may I ask who the decision maker is?Bas: I amJeroen: Great. And when would you like to have thisBas: Yesterday, but no later than tomorrowJeroen: Awesome. Enjoy your workshop...

Budget Authority Need Time

BANT for online...

Priority Time Authority Need

4 sales archetypes

Priority

Must have features

Timelapse

Nice to have

Need to have

Must have

Recognition

Orientation

Understand impact

End point focus

Installation

Sequence Critical Event

Delivery

First Value (install)

Value proof

4 sales archetypes

Authority

Feature diversity

Manager

Executive

Authority

Decision maker

Distributed

Decision maker

Committee?

4 sales archetypes

Feature discovery

Identifiedneeds

Banana Onion

Feature 2

Features & Benefits

Need xNeed Z

Need y

Feature 1

Need X

4 sales archetypes

Part 5:(Lean) Analytics Stack

Lean Growth engines

Problem/Solution

MarketFit

Growth

Lean Startup (Accelerator)

CustomerJourney

Pain/Gain

Businessunit

Corporate exit

Scale-up

Problem/Solution

MarketFit

Growth

CustomerJourney

Pain/Gain

Businessunit

Corporate exit

Scale-up

Pain/Gain

Problem/Solution

Growth

CustomerJourney

Best customer

Repeatable revenue

“Growthhack”

MarketFit

Businessunit

Corporate exit

Scale-up

Pain/Gain

Problem/Solution

Growth

CustomerJourney

Best customer

Repeatable revenue

Empathy Stickiness Virality Revenue Scale(Lean) Analytics stages

“Growthhack”

MarketFit

Knowing what to optimize when:Putting a line in the sand

Why is Nigerian spam so badly written?

Aunshul Rege of Rutgers University, USA in 2009

1000 emails

1-2 responses

1 fool and their money, parted.

Bad language (0.1% conversion)

Gullible (70% conversion)

1000 emails

100 responses

1 fool and their money, parted.

Good language (10% conversion)

Not-gullible (.07% conversion)

Nigerian spammershave really learned to understand their

target market and ‘best customers’

correlation vs. causation

Correlated

Two variables that are related (but may be

dependent on something else.)

Causal

An independent variable that directly

impacts a dependent one.

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Relationship between Ice cream and drownings?

Ice cream consumption Drownings

Correlated

Causal

Ice cream & drowning.

Summertime & drowning.

A leading, causal, connection is the analytics superpower...

‣ A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya)

‣ A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang)

‣ Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman)

‣ A LinkedIn user getting to X connections in Y days (Elliot Schmukler)

Some examples

(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)

One Metrics That Matters

In a startup, focus is hard to achieve.

That’s why we pick one metric at at time...

Picking your One Metric That Matters:

It answers the most important questions for your stage

It puts focus into the entire company

It forces you to put a line in the sand

It inspires a culture of experimentation

Positioning

So, where does your product fit? (again, positioning)

If a metric won’t change how you behave, it’s a bad metric

A good metric is:

Understandable

If you’re busy explaining the

data, you won’t be busy acting on it.

Comparative

Comparison is context.

A ratio or rate

The only way to measure change and roll up the

tension between two metrics (MPH)

Behaviorchanging

What will you do differently based on the results you

collect?

Data Science evangelist

“”...There are known knows; there are things we know that we know. There are known unknowns; that is to say, there are things

that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t know.

“”...There are known knows; there are things we know that we know. There are known

unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we

do not know we don’t know.

Avinash Kaushik on Analytics

Things we

don’tknow

we knowAre facts which may be wrong and should be checked against data.

we don’tknow

Are questions we can answer by reporting, which we should baseline & automate.

we knowAre intuition which we should quantify and teach to improve effectiveness, efficiency.

we don’tknow

Are exploration which is where unfair advantage and interesting epiphanies live.

known knowns known unknowns unknown unknowns:: ::

(Vanity Metrics) (Actionable trends) (Leading Indicators)

Now look at your metrics:

How many of my current metrics are good metrics?

How many do you use to make business decisions

Are there others you’re not thinking of?

Putting a line in the sand

Importance of correlation vs. causation

Correlated

Causal

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Relationship between Ice cream and drownings?

Ice cream consumption Drownings

Correlated

Causal

Ice cream & drowning.

Summertime & drowning.

A leading, causal, connection is the analytics superpower...

‣ A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya)

‣ A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang)

‣ Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman)

‣ A LinkedIn user getting to X connections in Y days (Elliot Schmukler)

Some examples

(From the 2012 Growth Hacking conference. http://growthhackersconference.com/)

Picking your One Metric That Matters:

It answers the most important questions for your business

It puts focus into the entire company

It forces you to put a line in the sand

It inspires a culture of experimentation

There are experiments everywhere

The core of lean is iteration...

Data Ideas

Product

Measure

Lean = Iteration

The faster you can iterate, the faster you can find the right product

& market...

Data Ideas

Product

Measure

1 iteration = 1 Experiment

Rapid MVP experiment framework

Data Ideas

Product

Measure

Experiment Backlog

Be CreativeTeamworkCustomer ValidationData DrivenPositioning Framework

Data Ideas

Product

Measure

Experiment Backlog

Product

Best CustomerCore ValuesCustomer CareOn BoardingChannel activation

Success? Implement into core product

Data Ideas

Product

Measure

Experiment Backlog

Product

Best CustomerCore ValuesCustomer CareOn BoardingChannel activation

Success? Implement into core product

Failure? Store data, rinse & repeat experiment

Lean Analytics Cycle

‣Buying‣Signing up‣Sharing‣Etc

‣Brainstorming‣Stolen from others‣User feedback‣Etc

One Metric That Matters:Choose the KPI you want to improve that represents the most fundamental

business risk

Did the KPI move past the line in the send

Talk to customers and draw a new line

Try again

Measure the effect the change had on the KPI

Implement the best experiment

Design A/B experiments

Make changes to the business that target this

commonality

Find an attribute the ‘best customers’ share that’s correlated with your KPI

What do these ‘best customers’ have in

common?

Figure out how to improve that KPI?

Have a good idea you want to try?

Draw a line in the sand

Identify your ‘best customers’

Pivot or give up?

Without data With data

Cautious testJust do it!

Do AirBnB hosts get more business if property is professionally

photographed?

Gut instinct (hypothesis)Professional photography helps AirBnB’s business

Candidate solution (MVP)20 field photographers posing as employees

Measure the resultsCompare photographed listings to a control group

Make a decision Launch photography as a new feature for all hosts

5,000 shoots per month by February 2012

“Those houses with high revenue look

really nice.”

Maybe it’s the camera?

“What do all the frequently rented houses have in

common?”

Camera model?

With data:find a commonality

Without data: make a good guess

Complete Web Monitoring

Web Analytics(what did they

do on the site?)

Usability(how did they

interact with it?)

do on the site?)

Performance(could they do

what they wanted to?)

interact with it?)

do on the site?)

VoC(what were their

motivations?)

interact with it?)

do on the site?)

Competition(what are they up

VoC(what were their

motivations?)

interact with it?)

do on the site?)

VoC(what were their

motivations?)

interact with it?)

Social Media(what were they

saying?)

do on the site?)

VoC(what were their

motivations?)

interact with it?)

Social Media(what were they

saying?)

“Soft” data

“Hard” data

Putting a line in the sandAccounting...

vs. Optimization

Build your analytics stack

Voice of Customer PerformanceUsabilityWeb Analytics Social Media

Google Analytics Hotjar Usabilla Webpagetest Obi4Wan

Mouseflow

Optimizely

Qualaroo

Hotjar

Soasta mPulseMixpanel Buffer

Visual Web Optimizer

Google Experiments

New RelicLocalytics

Intercom

Check segment.com for newest integrations

Google TagManager

Google Firebase

Analytics stack @ Soundcloud

InstallAttribution

In-AppEvents

CampaignMeasurement

ScreenFlows

ConversionFunnels

UserTesting

User/Devicedemographics

CohortAnalysis

BugTracking

A/BTesting HeatMaps App Store

AnalyticsSentimentTracking

KeywordPerformance

CPU/Battery/Network LTV modeling

Part 6:CRO summarized

Analytics is your oxygen. Pick one metric at a time

Optimize for a frictionless product

Experiment! Rinse, repeat to find causation

1 Build your positioning statement

Grow Better Products demystified

Build a Revenue Model (for better funding)5

Build your positioning statement

Identify your points of leverage

Clearly state your measurable goalsPick your ‘one metric that matters’

Acquire the right analytics tools

Run your experiments

Test, optimize, measure, rinse & repeat

Find your own hacks

Pick a new ‘one metric that matters’Embrace the experiment mindset

Grow Better Products checklist

Always remember this...

Speed is everything!

Something to read...

Thanks! More questions?M: jtjepkema@measureworks.nlT: @jeroentjepkema W: www.measureworks.nl

View slides: bit.ly/TTI-GROW

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