startup metrics lesson learned - leancamp barcelona
Post on 21-Oct-2014
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DESCRIPTION
I have given this talk at LeanCamp Barcelona and roughly the same at Hackernews London. It's an extended and updated version of the previous LeanCamp London talk. Feedback highly welcome.TRANSCRIPT
METRICSLESSONS
LEARNED
@andreasklinger
#LEANCAMP | @andreasklinger
Andreas Klinger
CWTFO of LOOKK @andreasklinger
Slides: http://www.slideshare.net/andreasklinger
LOOKK | CONDÉ NAST | 10-14-2011 | 3
STARTuP
LOOKK | CONDÉ NAST | 10-14-2011 | 4
STARTuP
BEFORE PRODuCT MARKET FIT
LOOKK | CONDÉ NAST | 10-14-2011 | 5
STARTuP
BEFORE PRODuCT MARKET FIT
“BLuE OCEAN”
LOOKK | CONDÉ NAST | 10-14-2011 | 6
STARTuP
“BLuE OCEAN”
BEFORE PRODuCT MARKET FIT
MADNESS
www.LOOKK.com
4 Biggest (development) Problemswe had/have:
OvER ENgINEERED
AND OvER CONCEPTED
FEATuRES
SOLuTION?FEATuRE
ROLLOuTS IN A/B
NO DATA
DRIvEN STARTuP CuLTuRE
SOLuTION?gOINg MENTAL
ON METRICS.
BLOCKED PROCESSES
SOLuTION? KANBAN
BOARD
LOOKK | CONDÉ NAST | 10-14-2011 | 8
+1
uNCLEARuSER vALuE
PROP(PRE-PMF)
SOLuTION?CuSTDEv
?
4 Biggest (development) Problemswe had/have:
OvER ENgINEERED
AND OvER CONCEPTED
FEATuRES
SOLuTION?FEATuRE
ROLLOuTS IN A/B
NO DATA
DRIvEN STARTuP CuLTuRE
SOLuTION?gOINg MENTAL
ON METRICS.
BLOCKED PROCESSES
SOLuTION? KANBAN
BOARD
LOOKK | CONDÉ NAST | 10-14-2011 | 9
+1
uNCLEARuSER vALuE
PROP(PRE-PMF)
SOLuTION?CuSTDEv
+uSERgROuP
IN FB
?
LOOKK | CONDÉ NAST | 10-14-2011 | 10
BuZZ IS OK
NuMBERS ARE OK
FEEDBACK IS OK
MEDIA IS OK
YOu?
LOOKK | CONDÉ NAST | 10-14-2011 | 11
BuZZ IS OK
NuMBERS ARE OK
FEEDBACK IS OK
MEDIA IS OK
SOMETHINgIS WRONg
TRAFFIC SPIKES
NO STICKYNESS
PuSHES DON’T LIFT TRAFFIC
YOu?
LOOKK | CONDÉ NAST | 10-14-2011 | 12
BuZZ IS OK
NuMBERS ARE OK
FEEDBACK IS OK
MEDIA IS OK
SOMETHINgIS WRONg
TRAFFIC SPIKES
NO STICKYNESS
PuSHES DON’T LIFT TRAFFIC
YOu?
vANITY WHAT ACTIONS WORK?
vANITY METRICS
ESPECIALLY:- Registered users- Facebook Fans
Always goes up.
vANITY METRICS
ESPECIALLY:- Registered users- Facebook Fans
Always goes up.
Not actionable…
vANITY METRICS v2
- visitors / Month- users / Month
Tell you nothing
Usually more related to external factors (PR, Search, etc)
OF THIS MONTH
vANITY METRICS v2
- visitors / Month- users / Month
Tell you nothing
Usually more related to external factors (PR, Search, etc)
OF THIS MONTH
* Tell you nothing about the health of your business or product !�K\cc�pfl�efk_`e^�XYflk�k_\�\÷\Zkj�f]�pfli�nfib%� �\oZ\gk`fe1�`k�d`^_k�j_fn�k_Xk�m`iXc�fi�gX`[�kiXùZ�nfibj
It’s a like a shop saying “we do good… there are now more people on the street”… and not actionable
BEFORE PRODuCT MARKET FIT
FOCuS ONRETENTION
#LEANCAMP | @andreasklinger
BEFORE PMFFOCuS ON RETENTION
http://www.ashmaurya.com/2010/07/3-rules-to-actionable-metrics/
Summary:In Discovery/validation
Focus on Retention & Activation
In validation/growth Focus on Revenue and Referral
THE REASON:
RETENTION=
f(uSERHAPPINESS)
#LEANCAMP | @andreasklinger
RETENTION = f(uSERHAPPINESS)
Actually you don’t want to measure retention. You want to measure user Happiness.
Especially before PMF.
Rentention is the best signal for userhappiness.
But if you can - narrow down your KPIs to show user happiness and the health of your product.
If you are multi sided (eg. buyers/sellers) segment each group seperately
IF YOu WILL DO ONE THINg ONLY:FOCuS ON uSER HAPPINESS
KPI’S NEED TO BE
YOuR HEALTH MONITOR
#LEANCAMP | @andreasklinger
KPI’S NEED TO BE
YOuR HEALTH MONITOR
What numbers do actually show you the (real) health of your product?
What numbers could show user happiness?
E.g. Crashpadder.com (privat room rentals) calculates an activity/happiness score for each Host. And then creates groups (cohorts) for each city and
compares over time.
IN PRODuCT DISCOvERY
MARKETINgCAN HuRT
YOuR NuMBERS
#HNLONDON | @andreasklinger
(WRONg) MARKETINg STuNTS (CAN) HuRT YOuR (ACTIONABLE) NuMBERS
E.g. PR BuRSTS OR COMPETITIONS- Created visits in google Analytics- Created userentries in Database- Disappeared.- Lower your retention and activation (%) rates - Defocus you from understanding our product.
Example: LOOKKWe asked users to vote designers in a competition. <÷\Zk1�G\fgc\�mfk\[�k_\`i�]i`\e[j�$�[`[eÌk�^Xm\�X�iXkÌj�ass about LOOKK.
?l^\�kiXùZ�jg`b\j%�?l^\�É]\\c^ff[Ê%�C`kkc\�c\Xie`e^j�Xe[�cfe^k\id�\÷\Zk%
They just created “Dataschmutz”. useless data that obfuscates your real user behaviour
DRILL DOWNTO REMOvE
DATASCHMuTZ
#HNLONDON | @andreasklinger
DRILL DOWN TO REMOvEDATASCHMuTZ*
Q1: What numbers really show the health of your Ylj`e\jj�Xe[�Xi\�X÷\Zk\[�Yp�pfli�gif[lZk�Z_Xe^\j
Q2: How can you make them more “stable” against flkj`[\�\÷\Zkj%�
Example:Base your activation and retention KPIs on visits of
i\^`jk\i\[�lj\ij�efk�Xcc�m`j`kfij�kf�i\dfm\�kiXùZ�jg`b\j%
If you are focusing on your onboarding experience (eg. services not communities) focus base them on the user
registration date.
* Schmutz (noun, german/jiddish) means “dirt”
THE METRICS FAIRY SAYS…
METRICSNEED
TOHuRT
#LEANCAMP | @andreasklinger
METRICS NEED TO HuRT
If the metrics you focus on do not hurt you everytime you look at them and you are too
embarassed to show them around.
They are eithera) not narrowed down enough
orb) nothing you should focus on.
START WITHAARRR
EXAMPLE - LOOKK
ACQuISITION - user registeredACTIvATION - user voted (eg 90%)RETENTION - user visited AgainREFERRAL - …REvENuE - …
Nice to look at. useless to work with.
Eg. We changed activiation from “Registered users that voted” to “Registered users that voted for more than two designers”
Everybody else is just voting for a friend.
Now: AARRRR = THE PAIN THE PAIN = ACTIONABLE
“AARRR” IS THESOuND OF PAIN
ACQuISITIONYou need a way to reach the user.
(Dave is wrong. A visit is just fog.s)�\^%�i\^`jk\i\[�"�ZfeÕid\[�\dX`c
ACTIvATIONThe user has seen the real core of your
product and used it. (segment in user groups if multifaced)
RETENTION The user did an action that leads to value. (if
possible close to money or coreaction)
REFERRALNot only shared but invited users came.
REvENuEMoney.
TOO MANYMETRICS
AREBAD FOR
YOuR EYES
FOCuS
#LEANCAMP | @andreasklinger
TOO MANYMETRICS
AREBAD FOR
YOuR EYES
On your dashboards only watch those metrics you are currently iterating with
your product on.
There are always numbers going up and [fne�lek`c�pfl�_Xm\�X�jkXYc\�lj\iÖfn%�
Don’t go crazy because of that.
Focus your product discovery around assumptions. Align your metrics to that.
Example: At LOOKK we removed revenue from our dashboards while focusing on
newsfeed and community features.
LESSONSLEARNED
TOOLS
#LEANCAMP | @andreasklinger
TOOLS
TL;DR: All Suck.
TOOLS
TL;DR: All Suck.
…but are useful for certain parts:
TOOLS
TL;DR: All Suck.
…but are useful for certain parts:
>ff^c\�8eXcpk`Zj�4�KiXùZ�8eXcpj`jKissmetrics, Mixpanel = People AnalysisYour own Database = drilldown
Be consistent throughout all tools:�$�N_\e&N_\i\�kf�d\Xjli\�X�ÕeXc�^fXc - Naming of goals - Logging and Naming of user types (eg. user, Designer, Admin, visitor)
TOOLS
TL;DR: All Suck.
…but are useful for certain parts:
>ff^c\�8eXcpk`Zj�4�KiXùZ�8eXcpj`jKissmetrics, Mixpanel = People AnalysisYour own Database = drilldown
There are three things you want to do:
* Insights (how many…)* Accounting (compare birdeye weeks/months)* Comparing (eg. A/B or focused cohorts)
TOOLS
google Analytics
Dashboards rock.
Unfortunately single
player only (yet)
- Referrals - Optimize Online Marketing, - Bird eye view Website - Suck for funnel analysis (no ad-hoc eg) - Suck for consistancy (goals are easy to break)
Don’t do funnel testing in gA - only track the last step
Don’t go too crazy with customization - it will break.
READ: Cohorts in google Analyticsby http://danhilltech.tumblr.com/
TOOLS
KissMetrics
“View this people” feature is genius
- Insights on Conversions- Quick reports on features/pages- Suck (yet) at dashboards
use it for funnel optimization.Lj\�`k�]fi�hl`Zb�Ö\o`Yc\�`ej`^_kj%Lj\�`k�kf�Õe[�lj\ij�^iflgj
If you are a SaaS use it for everything ;)
Don’t expect too much and also test mixpanel.
TOOLS
LOOKKButler
- SQL = quick, Tables = cheap- You can drilldown to your actionable KPIs- Dashboards for team members- Suck at bird-eye view, not ad-_fZ�Ö\o`Yc\
Questions:Who are the most popular designers if you only count people who vote for more than one designer?
N_f�Xi\�fli�dfjk�`eÖl\ek`Xc�users?
TOOLS
LOOKKButler
Team dashboards are easy to do
BuT…ALWAYS REMEMBER
IN PRE-PMF
CuSTDEv > METRICS
#LEANCAMP | @andreasklinger
THANKS.
PLEASESHAREYOuR
LESSONS
@ANDREASKLINgER
Presentation slides: http://slideshare.net/andreasklinger