5 frameworks of analytics
TRANSCRIPT
5 methodsof startup analyticsComparison and Choice
How it’s supposed to be vs how it is
To be discussed○Ash Maurya and Lean Canvas○Eric Ries’ Three Engines of Growth○McClure’s Pirate Metrics○Ellis’ Pyramid of Growth○Lean Analytics and Stages of Growth○What to choose?
Four rules of a good metric
Clear Comparable
Relevant Actionable
Lean Canvasby Ash Maurya
Fill in and check in the noted order
1. Problem
2. Segments
3. UVP
4. Solution
Related metrics1. Q-ty of respondents with
this problem, Q-ty of those seeking solution
2. Unique keywords, traffic from “habitat”
3. Ratings, descriptions, reviews, benchmarking
4. Retention, conversion to active, churn rate
Related metrics5. Channels
6. Revenue
7. Costs
8. Unfair advantage
5. Leads per channel, CTR, viral rate
6. CLV, ARPU, conversion to sale, average sale7. Fixed costs, CAC, CSC
8. Patents, brand value, goodwill, number of deals
by Eric Ries
Growth Engines
Sticky engine (stickiness)What it means:
What to measure:
Return and retain first customers (early adopters)Retention, % returns per period,visit frequency, churn rate
Viral engine (virality)What it means:
What to measure:
User invites friends/recommends product
Viral cycle time, viral rate, stage conversion
Paid engine (paid growth)What it means:
What to measure:
We pay to acquire a user
САС, CLV, conversion to sale, fixed costs
Pirate Metricsby Dave McClure
Why Pirate?
What to measure on each stage?LP-bound traffic, mentions, CPC, CAC, CTR
Signup conversions, subscriptions, key feature usage
Returns, retention, daily/monthly active users, churn rate
CLV, average order/sale, conversion to sale
Number of referrals per new user, viral rate, viral cycle time
Stage by stage development
1. Visits2. Trial signups на триал3. Conversion to sale - MRR (monthly revenue
rate)4. САС vs CLV
Bad? Must be wrong market
Result = pivot to SMB.
CAC = $243CLV=$39 annually
Growth Pyramidby Sean Ellis
Three stages of the pyramid
Understand what you sell and to whom
Find and use your unfair advantage
Experiment with new products, channels and markets
What to measure?
New/old users, activation, key feature conversion, churn rate
Retention per period, viral rate, САС, CLV
САС, ARPU for non-organic growth, variable price conversion
How do you know the market is “ready”?
If >40% of your users look like this, when your server is down.
Tale of One Metric That Matters
Lean Analytics
Five Stages of GrowthFound a real need on an obtainable market which has few solutions
Found a way to meet the need which will be used and paid for
Found a way to encourage users to share their knowledge about the product with friends
Users and features stimulate growth organically and non-organically
Found a stable, scalable model with an acceptable margin in a healthy business environment
Too many numbers? Watch one
Use one indicator to see if the company is “healthy” - Net Adds.
Net Adds = Total Subscribers - Total Cancels
Use one indicator to see if the company is “healthy” - Paid Churn.
Paid Churn = Total Cancels / Total Paying Users (at month’s start)
One Metric That Matters
What to watch on each type
Data is an ocean
Analytics is a map and a compass
