Measure and optimize
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The document addresses the challenges startups face in achieving product-market fit despite having released a minimum viable product (MVP). It emphasizes the importance of metrics, innovation accounting, and the need for rigorous measurement to drive growth and informs on the concept of pivoting versus preserving the current strategy. Additionally, it highlights the significance of understanding customer needs and the consequences of focusing on vanity metrics.
Measure and optimize
- 1. Measure and Optimize MVP is released in the market but business is not growing.
- 2. Overview ● Goal of product. ● Role of metrics and measurement. ● Innovation Accounting. ● A/B T esting and Cohorts. ● Pivoting.
- 3. Where have you reached till now?The early days. ● A basic product released in the market. ● A business plan on paper. ● Some goals you expect to hit in the market.
- 4. Goal of a product. The product market fit What if Iremove my service/product from customer’s life? The 40% rule
- 5. How to reach product market fit in fast efficient way? ● Rigorous measurement. ● Device a method to push your graph towards the numbers you have targeted. ● Get ready to face hard truths and numbers.
- 6. Always remember! No product has zero traction. ❖ Even those companies that have failed had some early customers.
- 7. Accounting-The key to success ● It is considered to be a boring and dry profession. ● How did it bring companies to the goals they desired?
- 8. A general question to growing startups: But...Sometimes it may happen that you end up adding features that your customers don’t desire! How are you optimising your product?How do you analyse it? ● Numbers are high for this month. ● We are hitting milestones every time.
- 9. The correct way of accounting for startups. ● Manufacturing Company ● Production ● Networking SaaS. ● Building networks.
- 10. Are you developing the product in correct direction? Is your consumer analysis correct? INNOVATION ACCOUNTING
- 11. How can Ifollow Innovation Accounting? ● Know the stage of your company. ● Establish a baseline for product. ● Pivot or preserve.
- 12. Vanity metrics-Warning ● Focuses on cumulative and gross results. ● Innovative accounting won’t work in this case.
- 13. A/B Testing or Cohort Analysis Registered but didn't log in Logged in Had one conversation Had five conversations Paid
- 14. Split Test and Cohorts. ● Different features are offered to different customers at same time
- 15. The three A’s of metrics. ● Actionable-Demonstrates clear cause of rise and fall. ● Accessible- Metrics are like people. Respond everyone on different way. ● Auditable-Data is credible to employes.
- 17. Pivot or Preserve. ● A structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth. ● Companies that cannot bring themselves to pivot to a new direction on the basis of feedback from the marketplace can get stuck in the land of the living dead. ● Hardest decisions entrepreneurs face.
- 18. Innovation Accounting as a helper to Pivot. ● Better its early to pivot. ● Tough decision and you need to start over again. Build-Measure-Test loop. ● Types of pivot(could be a partial pivot in a certain department).
- 19. The negative aspect of Pivot(may be a myth).
- 20. Thank you!