Boost Your Growth Engine with Analytics
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The document discusses key metrics and analytics essential for startups to optimize growth and user engagement. It highlights the importance of understanding metrics tailored to business type and growth stage, as well as focusing on customer retention, engagement, and acquisition strategies. The author emphasizes finding a single critical metric that drives decision-making and aligning it with product-market fit to ensure sustainability before financial resources are depleted.
![Product/Market Fit Question
“How would you feel if you could no longer use [your
product]?”
Measure results on a scale, and define the success
Eg. At least 40% of users should say “Very disappointed”](https://image.slidesharecdn.com/copyof8-boostyourgrowthenginewithanalytics-websummit2014november-cemalbuyukgokcesu-150129031224-conversion-gate02/85/Boost-Your-Growth-Engine-with-Analytics-15-320.jpg)
Boost Your Growth Engine with Analytics
- 1. Boost Your Growth Engine with Analytics* @buyukgokcesu BoostingConversion.com BoostingConversion.com Cemal Buyukgokcesu Analytics and Conversion Consultant
- 2. analytics
- 3. analyticsdigital analyticsanalytics insightsstartup analyticsdigital analyticsanalytics insights
- 5. analyticsdigital analyticsanalytics insightsstartup analyticsstartup analytics
- 6. 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
- 7. 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)
- 8. 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
- 9. Before choosing the right metric for you... Qualitative vs Quantitative Leading vs Lagging Correlated vs Causal Vanity vs Actionable
- 12. 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/
- 13. Pirate metrics by Dave McClure (venture capitalist) Source: http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version
- 14. 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
- 15. Product/Market Fit Question “How would you feel if you could no longer use [your product]?” Measure results on a scale, and define the success Eg. At least 40% of users should say “Very disappointed”
- 16. 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
- 17. A segment is a group that shares some common characteristics eg. Visitors using firefox browser have significantly fewer engagement
- 18. 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
- 19. We are all delusional Virality: Focus on user acquisition and growth - but keep an eye on your stickiness too
- 20. NPS = % Promoters - % Detractors One question survey: “How likely is it you would recommend my product to a friend or colleague?”
- 21. 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
- 22. 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
- 23. 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
- 25. Cancellation rate = Percentage number of customers who cancel in any given month compared to total (paying) customers
- 26. # months = 1 / cancellation rate LTV = monthly revenue / cancellation rate Customer lifetime value (LTV) = Monthly revenue x # months in lifetime
- 27. 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
- 28. 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
- 29. 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/
- 32. Purpose of analytics To find your way to the right product and market before the money runs out A good metric A good metric is comparative, understandable, ratio or rate, actionable Segments, cohorts, tests Use segments, analyze cohorts, make testing part of your DNA Before deciding on metrics to track Confirm your “Business Type” and “Stage of your startup’s growth” Focus on one metric Find your One Metric That Matters
- 33. Thanks! @buyukgokcesu BoostingConversion.com BoostingConversion.com Cemal Buyukgokcesu Analytics and Conversion Consultant