Metrics that every startup should know

Download Metrics that every startup should know

Post on 02-Dec-2014

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Lviv IT Arena 2014 . http://saasdojo.com

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1. Metrics that every startup should know Alexey Orap, CEO (Chief Executive Optimist) YouScan & LeadScanr 2. Why metrics What to measure How to measure Mistakes to avoid 3. Whos this guy Alexey?! Applied Math, Cybernetics Faculty, Taras Shevchenko Kyiv National University Executive MBA, kmbs ex Nortel, Alcatel-Lucent, Yandex.Ukraine co-founder at Contactis co-founder & CEO at YouScan, LeadScanr author at SaaS Dojo blog (saasdojo.com) 4. Why metrics 1. Measure success 2. Develop your product ? 3. Know your runway 4. Talk to investors 5. What to measure Type of metric Qualitative Quantitative Stage Pre-product/market fit Customer feedback Customer surveys Scale and expansion MRR, Churn, LTV, CAC 6. Pirate metrics 7. AARRR framework 8. Before product/market fit 9. What exactly is Activation? First time when user gets real value from your product Depends on your product and usage scenario Can happen really soon after the registration (simpler products) or weeks later (complex products). Examples: - User buys 5 leads (LeadScanner.ru) - same day after the registration - User enters a lot of financial data and creates his first report (some online accounting tool) - weeks after the registration 10. x 5 times = Activation 11. Bad metrics & good metrics Do not focus on vanity metrics: Pageviews Time on site Visits Followers Number of downloads.. 12. Good (actionable) metrics Funnels A/B tests Cohort reports Per-unit metrics Linked to people Image: Ash Maurya 13. Your main equation: CAC < LTV CAC: Customer Acquisition Cost LTV: Lifetime Value 14. An out of balance business model Image by David Skok 15. A well balanced business model 16. Example for SaaS business model CAC = $ 1,200 ARPU = $ 400 / month Months to recover CAC: 3 LTV = $ 8,000 17. Example for SaaS business model CAC = $ 1,200 ARPU = $ 400 / month Months to recover CAC: 3 LTV = $ 8,000 18. Know thy user 19. Behavioral analytics improves: 1. Product development 2. Customer acquisition 3. Customer retention 20. Install today: Intercom Mixpanel KISSMetrics Comparison: saasdojo.com/index.php/analytics-tools/ 21. Five mistakes to avoid 1. Measure everything 22. Five mistakes to avoid 1. Measure everything 2. Offline reports 23. Five mistakes to avoid 1. Measure everything 2. Offline reports 3. Do it manually 24. Five mistakes to avoid 1. Measure everything 2. Offline reports 3. Do it manually 4. Finances could wait 25. Five mistakes to avoid 1. Measure everything 2. Offline reports 3. Do it manually 4. Finances could wait 5. Only numbers 26. Numbers may be misleading Double-check your data and trust your intuition 27. Thank you! P.S. We are hiring J Alexey Orap, CEO (Chief Executive Optimist) YouScan & LeadScanr