metrics: because everything counts. tetuan valley spring session, 2014
DESCRIPTION
Introduction to metrics and data analytics by 24symbols' Justo Hidalgo. Given at Tetuan Valley Spring Session. Agenda: introduction to metrics, AARRR model, examples from 24symbols, A/B Testing, tools, conclusions.TRANSCRIPT
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
Eat pizza
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
SEOSEMCampaignsEmailBlogs…
Landing PageProduct Features…
Content (blogs, articles, …)EmailsAlerts…
CampaignsEmails…
Shopping cartSubscriptionsLead 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
Nov-1
1
Dec-1
1
Jan-
12
Feb-
12
Mar-1
2
Apr-1
2
May-1
2
Jun-
12
Jul-1
2
Aug-1
2
Sep-
1240000
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 to 24s 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
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
Sou
rce:
http
://bl
og.k
issm
etric
s.co
m/h
ow-t
o-ca
lcul
ate-
lifet
ime-
valu
e/
Churn rateARPU *
Of course, LTV > CAC
But, moreover: LTV > 3x CAC
LTV vs CAC
Time
Users
Delayed subscription(test the service & engage)
Free
Premium
Conversion Rate
@justohidalgo
Freemium. Conversion Rate
time/conversion rate
Pri
ce/
pag
e
Growth
Profit threshold
Consolidation
Freemium for Books. Price per page
@justohidalgo
7. Tools
AnalyticsHeatmapsSocial media
Conclusions
1. Measure from Day 1
@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 Hidalgohttp://www.loscuentosdelabuelo.com
CreditsOlivier Guin, from The Noun ProjectDima Yagnyuk, from The Noun ProjectRedesign from Otl Aicher’s icon, from The Noun ProjectAxsys, from The Noun ProjectMonika Ciapala, from The Noun ProjectRob Schill, from The Noun ProjectMartin Karachorov, from The Noun ProjectAlexandre Mendes, from The Noun Project
All other icons from The Noun Project
Publishers trademarks, logos and brands belong to their respective companies.