Lean Analytics - Bringing Back the Book Report
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The document presents insights from a presentation on lean analytics shared at the Singapore Lean Startup Circle in 2013. It emphasizes understanding business models, actionable metrics, and various stages of startup life cycles to effectively track and optimize critical metrics. Key takeaways include the importance of knowing your funnel, establishing clear success metrics, and focusing on a single metric that matters for business health.
Lean Analytics - Bringing Back the Book Report
- 1. Lean Analytics Bringing Back the Book Report Presented at Singapore Lean Startup Circle April 10, 2013
- 2. Hello! ● Product guy ● Mix of corp and startup ● 5+ years in SEA ● Yahoo Product Marketing ● Pollenizer SEA GM ● @sonofsarah
- 5. Lean 2.0 - The Growth of a Management Science? 1980 Toyota ... Dot Com Boom (1997 - 2000 Pre History 2000 Dot Com Crash (2000 - 2001) Steve Blank - 4 Steps to the Epiphany (2005) Lean Startup "coined" (2008) 2010 Lean Startup 1.0 The Lean Startup (2011) The Lean Startup @ SXSW (2012) The Lean Startup Conference (2012) Lean Analytics (2013) Lean Startup 2.0 Lean UX (2013)
- 6. Image Credit - http://brendanmarsh.com/lean/the-lean-startup-validation-board/
- 8. Lean Analytics in a Slide CASE STUDIES and EXAMPLES OMTM Benchmarking Lean Analytics Business Model Types 5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel Analysis Lean Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics
- 9. Refresh - Actionable Metrics CASE STUDIES and EXAMPLES OMTM Benchmarking Lean Analytics Business Model Types 5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel Analysis Lean Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics
- 10. Vanity Metrics Actionable Metrics ● Must go up over time ● Enables comparison ● NOT comparative ● Often a ratio ● Often a simple total ● Often cohort based ● Typically not granular ● Drives decision making ● Focused on story telling ● Can answer the question "did that ● Not directly tied to biz. health experiment work"? EXAMPLES EXAMPLES ● Total downloads ● Conversion or retention rate ● FB likes ● Churn rate ● Registered users ● Shopping cart size
- 11. The 6 Startup Business Models CASE STUDIES and EXAMPLES OMTM Benchmarking Lean Analytics Business Model Types 5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel Analysis Lean Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics
- 12. The 6 Startup Business Models E Commerce SAAS Free App - CAC - CAC - CAC - Conversion rate - Engagement - MAU - Cart size - Free/paid conversion - Free/paid conversion - Return purchase - Churn - Churn - LTV (or Payback) - LTV - ARPU Media UGC (Social) Marketplace - MAU - MAU - Inventory (Supply) - Engagement - Engagement - Buyers (Demand) - PV (or equivalent) - % Creators - Search Effectiveness - CTR - CTR - Ratings - CPM - CPM Takeaway - Know your funnel!
- 13. The Lean Analytics Stages CASE STUDIES and EXAMPLES OMTM Benchmarking Lean Analytics Business Model Types 5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel Analysis Lean Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics
- 14. The Lean Analytics Stages SCALE REVENUE VIRALITY STICKINESS EMPATHY Takeaway - Know your stage (but feel free to use other terms)
- 15. One Metric That Matters CASE STUDIES and EXAMPLES OMTM Benchmarking Lean Analytics Business Model Types 5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel Analysis Lean Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics
- 16. One Metric That Matters ● Pick one metric that is critical to biz health ● Focus the team around it (put it on screen!) ● Optimize the hell out of it ● Pick a new metric as biz grows and changes
- 17. Case Study - Wooboard OMTM
- 18. Case Study - Wooboard OMTM PHASE METRIC TYPE METRIC Is there a problem? User Interest Company sign ups Do we have a solution? Engagement Woos per user Is there a market? Revenue % of premium conversions This is a classic SaaS OMTM progression. See also Backupify. ● Phase 1 - site visits ● Phase 2 - trials ● Phase 3 - monthly recurring revenue Takeaway - Pick an OMTM (or at least get data focused)
- 19. "The core idea behind Lean Analytics is this: by knowing the kind of business you are, and the stage you are at, you can track and optimize the One Metric that Matters to your startup right now." - B Yoskovitz and A Croll
- 20. Benchmarking CASE STUDIES and EXAMPLES OMTM Benchmarking Lean Analytics Business Model Types 5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel Analysis Lean Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics
- 21. Some Benchmarking Examples E Commerce SAAS Free App Conversion Free trial - request card App size - expect 2% - 2% try, 50% buy - stay below 50MB to avoid - aim for 10% download drop off Cart abandonment Free trial - no card - expect 65%! - 10% try, 25% buy App CAC - Shoot for $.50 to $.75 Monthly churn - make sure CAC is less than - < 5% for growth LTV! - < 2% for scale Conversion Growth - free to aid - 2% - increase customer revenue - In app purchases - 1.5% by 20% a year - upsell 2% of users/month Takeaway - Lines in the sand are key to measuring success
- 22. Lean Analytics Truisms ● Know your funnel! ● Know where you're at in the lifecycle ● Establish data focus ● Set clear success metrics ● Instrument and track early! ● Make sure that you are allocating resources to test a measurable hypothesis
- 23. THANK YOU