boost your growth engine with analytics
TRANSCRIPT
Boost Your Growth Engine with Analytics*
@buyukgokcesu
BoostingConversion.com
BoostingConversion.com
Cemal Buyukgokcesu
Analytics and Conversion Consultant
analytics
analyticsdigital analyticsanalytics insightsstartup analytics digital analyticsanalytics insights
analyticsdigital analyticsanalytics insights
analyticsdigital analyticsanalytics insightsstartup analytics startup analytics
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