lean & aarr

@oxygenaccel www.oxygenaccelerator.com

PAIN, LEAN & AARRR

Simon Jenner CEO, Oxygen Accelerator

@simonjenner


you are here

success


deadpool road

Not Lean I think the problem is X The solution looks like this:

A website with social logon Location based HTML 5 mobile ready front end Cloud based, multi continent hosting for resilience Ability for users to like each others profiles Monetization via adverts We can launch in 6-9 months

YOU JUST CREATED A PRODUCT THAT NO ONE CAN USE OR WANTS

Feel the pain


Pain Threshold

Pain is felt

No pain is felt

Cure for cancer

Ferrari

In the beginning


Lean manufacturing - Toyota

2011

How to drive a startup


Vision

Strategy

Product Optimization

Pivot

True North

STRATEGY IS BASED ON ASSUMPTIONS


Customers can be acquired for $1 Customers will use a mobile app

Each customer will invite 0.5 other customers Customers wants to do X We can build in in 3-months

Advertisers will pay $3 per customer There are 100,000 early adopters

We will attract customers via social media

Customers will come back to the app daily

LEAP of FAITHs


Some assumptions are Leaps of Faith iPod -  People want to listen to music on the move -  People will pay for music

KEY ASSUMPTION


Value creation Growth

BUILD, MEASURE, LEARN


BUILD LEARN

MEASURE

IDEAS

PRODUCT DATA

BUILD


Build a key assumptions solving Minimum Viable Product (MVP)

MEASURE


Must be real data What to measure – everything AARRR – Pirate metrics

LEARN


Test data with customers Must impact business results

CYCLE FAST


BUILD LEARN

MEASURE

IDEAS

PRODUCT DATA

PIVOT or PERSEVERE


Get enough data then make Data based decisions Customer based decisions

PIVOTS


-  Zoom in pivot –more niche -  Zoom out pivot – less niche -  Customer segment pivot -  Customer need pivot -  Technology pivot -  Business model pivot -  Channel pivot

PIVOT


sortedlocal.com

Assumptions -  People wanted unskilled tasks doing (customers) -  People wanted unskilled per hour work (sorters) -  Attracting sorters was going to be difficult -  Customers will want to use mobile

An unskilled tasks market place

PIVOT


sortedlocal.com

MVP -  Customer task led mobile app

-  Customer creates profile & then task “I need a cleaner on Friday at 4pm to clean my flat”

-  Sorters respond via messaging system saying they will do it & their price per hour

-  Customer selects a Sorter & pays


PIVOT


sortedlocal.com

Data 1st Month -  1st task posted was an advert not a task -  600 Sorters signed up -  20 Customers signed up -  60% bounce rate on website -  Zero tasks completed -  Customers saying to many responses to task, takes to long to

message each sorter, trust issues with sorters


PIVOT


sortedlocal.com

Pivot – Live for 2 weeks -  Sorter led task market place -  Each sorter has a profile -  Customer searches by task & location (i.e. cleaning) -  Customer selects Sorter from a list of profiles


PIVOT


sortedlocal.com

Data – 2 weeks old -  2000 customers signed up -  31 tasks posted -  5% bounce rate on website -  Zero tasks completed (via site) -  Transactions are being taken off-line -  150+ clicks on Book now button on Sorter profile


GROWTH ENGINES


- Sticky Engine - Viral Engine - Paid Engine


LAUNCH


AARRR – Pirate Metrics

Simon Jenner CEO, Oxygen Accelerator

@simonjenner

AARRR


- Acquisition - users come to the site from various channels

- Activation – users enjoy 1st experience

- Retention - users come back re-visit site

- Referral - users like it enough to refer others

- Revenue – users pay

AARRR


ACQUISITION


-  What?

-  SEO, Social Media, Blogs, Email -  Affiliates, Direct, pay per click adverts

-  Measure? -  Unique visits, visitor sources, user demographic,

cost per acquisition

CPA

ACTIVATION


-  What?

-  Landing page optimization -  UI/UX iterations -  Value proposition

-  Measure? -  Conversions (signup, download) -  Bounce rate -  Dwell time CPA

RETENTION


-  What?

-  Email reminders, notifications, newsletters -  Notifications, popups -  Re-target advertising

-  Measure? -  Monthly active users (MAU) -  Web re-visits -  Email open % -  Click though % from reminder/notification LTV

REFERRAL


-  What?

-  Social sharing, discounts, invitations, competitions

-  Measure? -  Viral Loop or virality ratio -  Invite to signups (1:0.2)

CPA

REVENUE


-  What?

-  In app purchases, subscription, one off payment

-  Measure? -  Revenue per user

LTV

FUNNEL


£££££

Visitors Clicks on more information button

Clicks on start free trial

Completes registration info Verifies e-mail address

Logs on

Logs on twice

50,000

5,000 10:1 Funnel

2:1

100:1

KEY


-  Cost Per Activation (CPA)

-  How much do you spend to activate each user -  Calculated by acquisition spend divided by the number of

signups -  i.e. spend £100 to get 10 users = £10 CPA

-  Life Time Value (LTV) -  Revenue from customer over the length of time they stay with

you -  Calculate by monthly revenue timed by average months

retained -  i.e. £10 per month * 4 –months = £40 LTV

LTV CPA


IF IT MOVES MEASURE IT


CONTACT

Simon Jenner [email protected]

@simonjenner

lean & aarr

Technology

customers customers

customers people

unskilled tasks market

difficult customers

mvp customer task

task market place

hour customer

mobile app customer