How to trive as an early stage startup by using the right metrics
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The document discusses using the right metrics for early stage startups. It emphasizes focusing on one main metric, called the One Metric That Matters (OMTM), that directly impacts the business goals. It provides examples of potential OMTMs for different stages of growth, from empathy and stickiness to virality and revenue generation. The document also highlights the importance of testing hypotheses through experiments and iterating based on metric results.
![[NAME] was [ACTIVITY] at [LOCATION] with
his/her [PRODUCT] on.
He/She is looking for the right metric to
see if people at [LOCATION] want to buy
his [PRODUCT]. He believes that [METRIC]
will do that. He starts with a campaign via
[CHANNEL] to sell [NUMBER ] products and
targets [MARKET]. Do you think he has
what it takes?](https://image.slidesharecdn.com/sbc-growth-week-marketing-metrics-mike-van-hoenselaar-151130123814-lva1-app6892/85/How-to-trive-as-an-early-stage-startup-by-using-the-right-metrics-72-320.jpg)
How to trive as an early stage startup by using the right metrics
- 1. How to thrive as an early stage startup by using the right metrics
- 2. Founder / Growth Hacker 7 years Founder 1 year Growth Coach / Growth Hacker 1 year Organizer / Mentor 4 years @MikevHoenselaar mike@onlineboswachters.nl
- 3. Find them again at http://vruc.ht/sbcghmm @MikevHoenselaar
- 5. “I believe we are all liars, but I think to a certain degree it’s a necessity. To get up in the morning and face the universe as an entrepreneur, you need to have a bit of a reality distortion field.” Ben Yoskovitz Author Lean Analytics @MikevHoenselaar
- 6. The oxygen for Growth Comparative, Understandable, Ratio or rate Metrics are @MikevHoenselaar
- 8. Where to start? It depends :) What drives your startup, what is it’ s oxygen? Who is your customer? What do your customers want to achieve with your product? What do you want to learn? Take the first step! @MikevHoenselaar
- 9. Know that you don’t know Donald Rumsfeld, US Secretary of Defense Image: Karin Cooper/Getty Images @MikevHoenselaar
- 11. The One Metric That Matters OMTM @MikevHoenselaar 55
- 12. Yes! Not working? Pick another one. Can I use made-up metrics? @MikevHoenselaar
- 15. $40 a month $40 per month Supports lots of API’s Free Less customizability < 5 minutes setup for basics $9 per month Lots of custom options Longer setup
- 16. What happens if ratio increases/ decreases? Make an action plan! @MikevHoenselaar
- 17. @MikevHoenselaar Intelligence Events “Send notification if the average amount per order drops 10% since the week before.” < 1 hour setup Works by default in Google Analytics. 6 months in, this alert triggered. What happened was that dev team deployed new version of website with “discounts sidebar” visible on cart page. Oops! :)
- 18. 5 stages Empathy, Stickiness, Virality Revenue and Scale @MikevHoenselaar
- 19. @MikevHoenselaar
- 20. @MikevHoenselaar What could be their OMTM? Videos uploaded per minute (enough new content being added) Hours watched per day (per user) (enough people watching the content) Shares per video per day (enough people talking about the videos) 100M views (vanity) (when does a video reach 100M views, record is 4 days ‘Gentlemen’)
- 21. @MikevHoenselaar Our OMTM? 242 listings, 750 reviews Requests per day (give enough value to escaperooms, 11 per day atm) Users per month (are we getting enough people in, 20k per month atm) Reviews per user (are people coming back. 1,3 reviews per user) Shares per listing (Do people share their favorite escaperoom, answer is NO)
- 23. Empathy See if others pretend to believe your lies. Will anyone care? 159 @MikevHoenselaar
- 24. @MikevHoenselaar Test value proposition “Can we get people to click on a FB ad and test what is the biggest pain for our target audience?” 14 ads in one ad group 1 week of testing No real landing page Focus on CTR < 500 euro We found right direction to continue product and use in next experiment.
- 25. ! FB picks winner after 48 hours @MikevHoenselaar
- 26. @MikevHoenselaar Test value proposition “How do people perceive the purpose of our landing page design?” 1 image 5 second test 1 week of testing Only time needed (2 hours of clicking other people’s tests and learn from those as well) We found people wouldn’t get the premise of the landing page. Changed it, did it again. Saw positive uplift.
- 27. @MikevHoenselaar
- 28. Stickiness People believe your lies and you want them to come back to hear more of them 203 @MikevHoenselaar
- 29. Top landing pages Top Exit pages Highest traffic pages Most expensive pages Identify your most important pages @MikevHoenselaar
- 32. @MikevHoenselaar “How can we find the best places to optimize to increase conversion?” Pick your funnel (cart -> info -> payment -> thank you) Implement Enhanced E-commerce View report in Google Analytics and see where most people drop off. We removed friction for client in form (IE problem) and increased conversion uplift of 10%, sales per month increase of € 15k) (It’s also interesting to see where they drop off to! Use segmentation!) Conversion
- 34. Watch 30 videos, get your hypothesis! @MikevHoenselaar
- 35. @MikevHoenselaar E-mailmarketing “Can we get people to come back that visited an escape room?” We already had their email addresses, we didn’t need an opt-in anymore. We decided to do a mailing to ask for a review. We knew when they visited the escaperoom to make it relevant. 40% of people engaged with the email and 50% gave their review. Currently 750 reviews in 6 months.
- 36. 15% growth in reviews per week @MikevHoenselaar
- 38. Virality People are convincing others about your ‘lies’ 227 @MikevHoenselaar
- 39. 74% of high growth startups fail due to premature scaling Startup Genome Report Extra: Premature Scaling → http://vruc.ht/sgr@MikevHoenselaar
- 40. Viral coefficient Amount of new customers that each existing customer is able to convert @MikevHoenselaar
- 41. invitation rate (invites sent / users) * acceptance rate (signups / invites) Viral coefficient @MikevHoenselaar Customers Time
- 42. invitation rate (invites sent / users) * acceptance rate (signups / invites) Viral coefficient @MikevHoenselaar 1250 users that send 2000 invites Invitation rate = 1.6 Of those 2000 invites 580 people accept the invite (signup) acceptance rate = 0.29 (29%) VC = 1.6 * 0.29 = 0.464 Long way to go :)
- 44. When was the last time you invited someone to Dropbox? (For me it has been years ago) @MikevHoenselaar Happens mostly once
- 45. Revenue People believe your lies, you want them to start paying for them @MikevHoenselaar 241 Are they still lies?
- 46. 25% 25 of 100 people churn per month Customer lifetime is 4 months (100/25 = 4) CLV = 20 * 4 = € 80 max CAC = 80 / 3 = € 26,50 10% 10 of 100 people churn per month Customer lifetime is 10 months (100/10 = 10) CLV = 20 * 10 = € 200 max CAC = 200 / 3 = € 66,50 2% 2 of 100 people churn per month Customer lifetime is 50 months (100/2 = 50) CLV = 20 * 50 = € 1000 max CAC = 1000 / 3 = € 333 What do you earn per customer per month? € 20 Lots of startups take ⅓ of their CLV as max CAC (in the end it’s up to you) CLV and CAC @MikevHoenselaar
- 47. Spent € 263,25 and you got 3 conversions. CAC is € 87,75 here. (Notice the € 0!) @MikevHoenselaar
- 48. More Dropbox lessons from Drew Houston (CEO)? http://vruc.ht/dropboxll @MikevHoenselaar
- 50. CTR 3% conversion 15% Exit survey 1% 7% € 600 ads € 2500 setup 363 clicks € 5k+ in sales max CAC was € 60 our CAC was € 104 video tracking 25 units € 199 2500 people @MikevHoenselaar
- 51. CTR 3% 17% Exit survey 1% 7% € 600 ads € 500 setup 425 clicks € 6k in sales max CAC was € 60 our CAC was € 37 video tracking 30 units € 199 2500 people @MikevHoenselaar
- 52. Scale Competitors are starting to tell lies about you but will shoot for the stars! 255 @MikevHoenselaar
- 53. Let the Growth Hacking begin But you can implement techniques of GH a lot earlier of course :) @MikevHoenselaar
- 56. @MikevHoenselaar mike@onlineboswachters.nl Q&A Download slides on http://vruc.ht/sbcghmm
- 61. Pivot != iterate Focus on OMTM @MikevHoenselaar@MikevHoenselaar
- 62. 1. What is your business objective? 2. Define your metrics (KPI’s) 3. What is your conversion funnel? 4. Define segmentation criteria 5. Define objectives @MikevHoenselaar
- 64. Business model & stage and metrics @MikevHoenselaar Lean Analytics infographic Get them at http://vruc.ht/lai
- 65. 24sessions, Clickly, Crazylister, Liater, Trylikes, StoreGecko
- 66. The Core of Lean is iteration This is where things fall apart
- 67. People invite their own network (The ones you invite are most likely in the same network) @MikevHoenselaar declines when everybody is using your product
- 69. Something that has never ever ever being said about marketing metrics @MikevHoenselaar
- 70. 1 Number 1 Product 1 Market 1 Name 1 Location 1 Metric 1 Channel
- 71. is a superpower A leading, causing metric Predicts the future and directly impacts a dependent metric. Current prospects in sales funnel for instance.
- 72. [NAME] was [ACTIVITY] at [LOCATION] with his/her [PRODUCT] on. He/She is looking for the right metric to see if people at [LOCATION] want to buy his [PRODUCT]. He believes that [METRIC] will do that. He starts with a campaign via [CHANNEL] to sell [NUMBER ] products and targets [MARKET]. Do you think he has what it takes?
- 73. Don’t build something without metrics @MikevHoenselaar Or a kitten dies
- 74. ● Customer Acquisition Cost (CAC) ● Customer Lifetime Value (CLV) ● Viral Coefficient ● Customer Retention Rate ● Number of hits ● Page views ● Unique visitors (not always) ● Followers/likes ● Emails collected ● App downloads Vanity Metrics
- 75. metrics @ helpdesk It’s dangerous to assume that speed automatically equals a positive customer experience.
- 76. An inaccurate or false statement; a falsehood.