data analytics for startups - tetuan valley startup school fall 2015

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Data Analytics: because everything

countsJusto Hidalgo@justohidalgo

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Hi!

• Co-founder, – BizDev– Publisher Relations– Investor Relations– Data Analytics

• Background: Data Integration and Management, Product Strategy and Innovation

• Ph.D. in Computer Science on Data Integration and Web Automation

• Ergo: Love Data J

• @justohidalgo

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A service to read and discover digital books that works on any device

4@justohidalgo

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1. Data analytics models and their relation to Lean2. User acquisition. Metrics, analysis of results and cases3. User activation. Metrics, analysis of results and cases4. User retention. Metrics, analysis of results and cases5. Virality and Referral. Metrics, analysis of results and cases6. Revenue. Metrics, analysis of results and cases

Workshop Agenda

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Vanity Metrics

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Hooooray!!! Or not?

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Typical vanity metrics

• Number of hits• Number of page views• Number of visits• Number of unique visitors• Number of followers/friends/likes• Time on site/number of pages• Emails collected• Number of downloads

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Cohort Analysis

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Cohort Analysis

Jan 2015

Feb 2015

Mar 2015

Apr 2015

May 2015

Jun 2015

Jul 2015

Aug 2015

Sep 2015

Oct 2015

Nov 2015

Cohort: Jan 2015

1059 520 265 142 66 33 29 17 8 4 2

Cohort: Feb 2015

1200 760 354 179 89 45 35 24 12 6

Cohort: Mar 2015

1250 800 230 154 67 66 55 23 12

Cohort: Apr 2015

1210 760 340 156 65 54 45 32

Cohort: May 2015

1450 1000 750 560 450 345 312

Cohort: June 2015

1540 1210 1002 890 600 530

Inspiration: http://christophjanz.blogspot.de/2012/05/know-your-user-cohorts.html

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A/B Testing

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One key question for the whole customer lifecycle

• How effective is a web page compared to another?– Effective = conversion rate, usage rate, payment rate, …

?

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What’s A/B Testing?

Version A Version BVisitors are randomly distributed

time

1200 new users 1000 new users

Version A is better than B

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Analytics Models

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AARRR

Acquire Activate Retain Refer Get Revenue

SEOSEMCampaignsEmailBlogs…

Landing Page

Product Features

…

Content (blogs, articles, …)

EmailsAlerts…

CampaignsEmails…

Shopping cart

SubscriptionsLead Gen…

traffic social business

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What’s next

• Session 2: User acquisition. Metrics, analysis of results and cases



Landing Page

Product Features

…


EmailsAlerts…

CampaignsEmails…

Shopping cart


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How do people find your site?

Acquisition

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Case in point

20@justohidalgo

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15 seconds in “La 1”

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Videos work quite fine

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Metrics that Matter

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MetricsNumber of visits Distributions (per browser, region,

…)

Number of page views

Bounce rate

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What’s next

• Session 3: User activation. Metrics, analysis of results and cases



Landing Page

Product Features

…


EmailsAlerts…

CampaignsEmails…

Shopping cart


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How sticky is your site?

AActivation

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Case in point

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Survey tool

qidiq

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Metrics that Matter

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Metrics

40000

45000

50000

55000

60000

65000

70000

75000

80000

85000

Time per page

Time on site

# Sign ins!!! Recency (time since user did something meaningful)

(and churn as well!!!)

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What’s next

• Session 4: User retention. Metrics, analysis of results and cases



Landing Page

Product Features

…


EmailsAlerts…

CampaignsEmails…

Shopping cart


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Why do users come back?

AARetention

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6 Hacks

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1. Weekly digest of app/service activity

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2. Activity notifications from within the app

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3. Onboarding emails

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4. Product / Content update newsletters

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5. Basic loyalty program

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6. Automated emails for inactive users

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Case in Point

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Metrics that Matter

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Number of unique/returning visitors

Visits over time

Average session time

Metrics. The standard ones…

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D/WAU: Daily/Weekly Active Users

MAU: Monthly Active Users

Stickiness =

… engagement…

D/WAUMAU

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# Active readers# Books read per userPages read per active reader per month

… but also domain-specific!!!

Pages read per paid user per month

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What’s next

• Session 5: User referral and virality. Metrics, analysis of results and cases



Landing Page

Product Features

…


EmailsAlerts…

CampaignsEmails…

Shopping cart


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Do people talk about your site?

AARReferral

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Case in Point

62@justohidalgo

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Metrics that Matter

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Amplification rate: – (#shares, #RTs, …)

K-Factor = AR * conversion rate– = 1: steady state– > 1: growth➤ 1.4 < x < 2.1 => hot & viral!!!

– < 1: decline

Virality

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What’s next

• Session 6: Revenue. Metrics, analysis of results and cases



Landing Page

Product Features

…


EmailsAlerts…

CampaignsEmails…

Shopping cart


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Do you make money?

AARRRevenue

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Metrics that Matter

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CMRR

LTV

CACR

3 (main) metrics for SaaS

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Churn

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SaaS = recurring revenuesCMRR = Committed Monthly Recurring Revenue– Recurring + new accounts + new upsells – churn

CMRR

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Lifetime Value =100%

LTV

Source: http://blog.kissmetrics.com/how-to-calculate-lifetime-value/

Churn rateARPU *

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Of course, LTV > CACBut, moreover: LTV > 3x CAC

LTV vs CAC

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Conclusions

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2. Have someone taking care of your metrics

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3. Only measure what you truly care about

@justohidalgo

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4. Beware vanity metrics…

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… they may hide an awful truth

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Thanks for your time!

@justohidalgo

Justo Hidalgohttp://www.loscuentosdelabuelo.com

[email protected]

data analytics for startups - tetuan valley startup school fall 2015

Data & Analytics