lean startup - customer development - aarrr metrics

Click here to load reader

Post on 17-Oct-2014

3.952 views

Category:

Technology

1 download

Embed Size (px)

DESCRIPTION

 

TRANSCRIPT

How to catch your fish

How to catch the fishAnd learn how to improve your fishing power

WHY I AM HERETo kick your ass...

WHY I AM HERETime to wake up...

What do you really know about your reality?

There is no way back!What is the problem you are trying to solve?

What is your most important customer segment?

Who is your best customer?

Why is this your best customer?

How do you (plan to) make your money?

Have you collaborated with your (potential) customers?

Who tried this before?

What is your most used feature?

There is no way back!Youre doing too much

Kill a featureEVERY WEEK

Dont hang on to things that you might build someday

Create hyper focus

Take out a feature and monitor the reactions

Optimize for happinessEither they love it or hate it, all other reactions means youre screwed

AARRRDave McClures

Narrative of your processCreate different storylines for different combinations

ExamplesLets take a look at this meta-framework#1 DOGGIECOLR

Social Network for Dog LoversMakes money through advertising and affiliate sales of lush dog collars.

Key business driversAdvertising and affiliates need large traffic/page views so growth and retention are key.VISITSIGN-UPCREATE PROFILEPOST PICTURESCOMMENTSHARE PICTURESINVITE FRIENDSBUY COLARACQUISITIONACQUISITIONACTIVATIONACTIVATIONREFERRALREVENUE#2 AGILESAMBA

Project management tool for Agile startupsMakes money through monthly subscriptions. Has a free trial period.

Key business driversConversion to paid users and cancellation rates.VISITSIGN-UPCREATE PROJECTUPGRADES PAIDCANCELS ACCOUNTACQUISITIONACQUISITIONACTIVATIONREVENUEREVENUEAcquisitionLets take a closer look at this meta-framework

Are you fishing in the right pond?

How do you get new customers?

Is your message reaching the right people?

Are you focussing on the right people?

Activation

Are you using the right bait?

How do you land potential customers?

Is your message clear?

Are you helping your customers?

Retention

Do you use the right material?

How do you make customers stay?

Do you offer the right experience?

Do you offer quality?

Referral

How do your fishes lure in more fishes?

How important is word of mouth?

How easy is it for customers to share their experiences?

Revenue

Selling your fish

How do you (plan to) make your money?

Are you catching the right fish?

Time to start measuring and learn

Vanity metricsMetrics that make you feel good but dont tell anything

Google AnalyticsTechCrunchWhat would indicate succes?150 000 UsersNumerous superior competitors

What would indicate succes?Let us examine Facebook

75% of the users visit the site 1 or multiple times a day1 month after the launh in a student campus they could acquire 90% of the student bodyMetrics that matter!Value Hypothesis How do we add more value to our cusotmers live?Growth Hypothesis Through what engine will we acquire new customers?Metrics that matter!Value Hypothesis How do we add more value to our cusotmers live?Growth Hypothesis Through what engine will we acquire new customers?Metrics areActionableAuditableAccessibleCOHORTFact: New users are more engaged! Group users in month or week.

A-B testingLet different groups of customers validate different new features

Rate of validated learningExperiment, validate learning & change!

MVP experiment of a falsiable hypothesisIf the experiment leads to less progressChange your strategy59Viral CoefficientFocus on Acquisition & Referral Revenu is side effectViral Coeff = Invites * Conversion RateExamples: Facebook, Hotmail

Conversion rate = invites that lead to users

60Lifetime Value (LTV)Focus on Activation & Retention Payment is centralLTV = Cost of Acquiring Customer / Earnings from that customerExamples: Amazon, Match.com

Recommended SoftwareUbounceKISS MetricsSurvey.ioWufooLinkShiftr

We dontt know enough!

Were doing to much!

We can Use AARRR to build the narrative of your strategy!AcquisitionActivationRetentionReferralRevenue

We should focus on Real metricsMetrics areActionableAuditableAccessibleWe should gO out and collaborate with our customers! J

There is no way back!

Thank youSlidedeck by: Erik Talboom Jurgen De Smet Maarten Volders