Lean Analytics: A short summary
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The document discusses key principles of the Lean Startup methodology, focusing on the importance of data over gut feelings, and emphasizes the need for effective metrics. It outlines the concept of a 'One Metric That Matters' (OMTM) that directs a startup's focus and decision-making. Additionally, it highlights the significance of understanding business context and continuously evaluating metrics to drive improvement.
Lean Analytics: A short summary
- 1. Jan König Lean Startup Meetup Karlsruhe @einkoenig 22.04.2013
- 3. book content additional stuff group discussion?
- 4. Book Parts 1 Stop Lying to Yourself 2 Finding the Right Metric for the Right Time 3 Lines in the Sand 4 Putting Lean Analytics to Work won’t be covered tonight
- 6. Data? Lean Startup? I just go with my gut feeling. (too) many people
- 7. watch it here: http://www.ted.com/talks/tali_sharot_the_optimism_bias.html
- 8. Follow the Lean model, and it becomes increasingly hard to lie, especially to yourself.
- 9. Instincts are experiments. Data is proof.
- 11. Do hosts with professional photography get more business? image by mark sebastian / flickr
- 12. Gut instinct Professional photography helps Airbnb’s business Concierge MVP 20 photographers in the field Test results Two to three times more bookings!
- 14. You are not building a product. You are building a tool to learn what product to build.
- 15. Finding the Right Metric2 for right now!
- 16. Good Metrics? image by kevin dooley / flickr
- 17. image by flopper/ flickr comparative image by wikia.com
- 18. understandable image by Jeff Kubina / flickr
- 19. rate or ratio image by Gabe Photos / flickr
- 20. changes the way you behave image by will ockenden / flickr
- 21. image by 55Laney69 / flickr The One Metric That Matters
- 22. 1 answers the most important question you have 2 forces you to draw a line in the sand 3 focuses the entire company 4 inspires a culture of experimentation
- 23. Should you really focus on one metric?
- 24. Restaurant’s Effectiveness Metrics Delivery Usage Customer Satisfaction Possible Interpretation Crazy! Time to look at other metrics to improve your business. Source: Klubeck, “Metrics”, page 149f Great food and a loyal, but very small customer base. Maybe a bad location. “The only game in town.” Or a product customers need but don’t want. OK, something is wrong here. You know that. with Triangulation
- 25. Restaurant’s Effectiveness Metrics Customer Satisfaction Possible Interpretation good Source: Klubeck, “Metrics”, page 149f good bad bad without Triangulation Delivery Usage Customer Satisfaction Possible Interpretation focus on
- 26. ratio = staff costs gross revenues image by Giorgio Montersino / flickr
- 27. What Business are you in? E-Commerce SaaS Free Mobile App Media Site User-Generated Content Two-Sided Marketplaces
- 28. What Stage are you at? Empathy Stickiness Virality Revenue Scale
- 29. What is your OMTM?
- 31. One of the most challenging things for a startup to do: find a relevant number against which to compare yourself.
- 32. Some interesting bottom lines Growth 5% (revenue or active users) Engaged Visitors 30% monthly users 10% daily users Mailing List Effectiveness 20-30% open rate 5% click-throughs
- 33. image by Robert Scoble / flickr Should you ask for billing information upfront?
- 34. Trial users Subscribers Churn 1st perriod End to end 2% 50% up to 40% 0.6% 10% 15% up to 20% 1.2%
- 35. Questions?