TAKE YOUR READINGS WHEREVER YOU GO

Metrics:

because everything

countsJusto Hidalgo

@justohidalgo

Hi!

■ Co-founder, • Worry about metrics

■ Data Integration and Management,

Product Strategy and Innovation

■ Ph.D. in Computer Science on Data

Integration and Web Automation

■ Ergo: Love Data

■ @justohidalgo

A service to read and discover digital books that

works on any device

@justohidalgo

Metrics

Some tools

Conclusions

My goals today

Qualitative measurement

• Competitive landscape, UX quality, …

Standard financial metrics

• Revenue, Balance, Burn rate, Runway, …

All possible metrics in the world

• As many as asses

What I won’t talk about

Let’s talk about metrics and

startups!

Watch this…

500startups’ Dave McClure

… and this…

Carsonified’s Ryan Carson

… and read this!

AARRR

Acquire Activate Retain Refer Get Revenue

SEO

SEM

Campaigns

Email

Blogs

…

Landing

Page

Product

Features

…

Content

(blogs,

articles,

…)

Emails

Alerts

…

Campaigns

Emails

…

Shopping

cart

Subscriptions

Lead Gen

…

traffic social business

Traffic Metrics

How do people find your site?

Acquisition

@justohidalgo

15 seconds in “La

1”

Videos work quite fine

MetricsNumber of visits Distributions (per browser, region,

…)

Number of page views

Bounce rate

How sticky is your site?

AActivation

Metrics

40000

45000

50000

55000

60000

65000

70000

75000

80000

85000

Time per page

Time on site

# Sign ins!!! Recency (time since user did

something meaningful)

(and churn as well!!!)

Biggest Apple Reseller in Spain

1-year subscription to24s per iPad/Mac purchased

@justohidalgo

Why do users come back?

AARetention

Number of unique/returning visitors

Visits over time

Average session time

Metrics. The standard ones…

D/WAU: Daily/Weekly Active

Users

MAU: Monthly Active Users

Stickiness =

… engagement…

D/WAU

MAU

# Active readers

# Books read per user

Pages read per active

reader per month

… but also domain-specific!!!

Pages read per

paid user per

month

Metrics, metrics, metrics

Not enough to have a nice GUI

Quick!!!

• What’s the number of active subscribers who readmore than 10% of a book per month?

• How many of our Colombian users switch devices whilethey read the same book?

• What’s the most read category, segmented by gender?

• What’s the number of readers per book page? Can youdraw a graph?

• We just learnt there’s a new metric investors are using… can we process it today?

Not enough to have a nice GUI

Metrics… and a human touch ;)

Users becoming digital librarians

Social Metrics

Do people talk about your site?

AARReferral

Visitor

Contributor

Distributor

Types of users

Curation the unbeatable experience of a

bookstore

Curation bookshelves

Every user, a librarian

Amplification rate:

• (#shares, #RTs, …)

K-Factor = AR *

conversion rate

• = 1: steady state

• > 1: growth

➤ 1.4 < x < 2.1 => hot &

viral!!!

• < 1: decline

Virality

% viral hosts

Contact rate per active host

Duration of each active host’s

infectious time period

Infection conversion

Source: http://framethink.wordpress.com/2008/01/15/the-four-viral-app-

objectives-aka-social-network-application-virality-101/

The Four Viral App Objectives

@justohidalgo

Business Metrics

Do you make money?

AARRRevenue

Churn

Lifetime Value =

100%

LTV

Sourc

e: http://b

log.k

issm

etr

ics.c

om

/how

-to-c

alc

ula

te-l

ifetim

e-v

alu

e/

Churn rateARPU *

CAC Ratio=

Bessemer: average ratio of SaaS companies = 0.6

Customer Acquisition Costgross margin per customer

sales/marketing costs per customer

Of course, LTV > CAC

But, moreover: LTV > 3x CAC

LTV vs CAC

time/conversion rate

Pri

ce

/pa

ge

Growth

Profit threshold

Consolidation

Freemium for Books. Price per page

@justohidalgo

Analytics

Heatmaps

Social media

Conclusions

@justohidalgo

2. Have someone taking care of it

3. Only measure what you truly care about

@justohidalgo

But again, choose right

4. Beware vanity metrics…

… they may hide an awful truth

Thanks for your time!

@justohidalgo

Justo Hidalgo

http://www.loscuentosdelabuelo.com

jhidalgo@24symbols.com

CreditsOlivier Guin, from The Noun Project

Dima Yagnyuk, from The Noun Project

Redesign from Otl Aicher’s icon, from The Noun Project

Axsys, from The Noun Project

Monika Ciapala, from The Noun Project

Rob Schill, from The Noun Project

Martin Karachorov, from The Noun Project

Alexandre Mendes, from The Noun Project

All other icons from The Noun Project

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