A Brief History
Dave McClure 500 Startups
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Unaware visitor
Passionate Happy Customer
Pirate Metrics as a Marketing Funnel
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Challenge 1: Funnels lack emotion
70%
30%
3%
2%
1%
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Challenge 2: Customer journeys are non-linear
When does referral happen?
Or Here?
Here?
Here?
ACQUISITION
ACTIVATION
RETENTION
REVENUE
REFERRAL
Challenge 3: Hard to internalize complex concepts
What’s my engine of growth?
Where is value created?
Where do I focus first?
So I redrew Pirate Metrics…
Pirate Metrics as a Customer Factory Blueprint
A metaphor for your business model
Metrics are people first
Easier to visualize the job of the business model
The Job: Turn unaware visitors into happy customers
Happy passionate customers
Unaware visitors
How You Do This:
Acquire raw materials
Create customer value
How You Do This:
Deliver customer value through your Happy Customer Loop
How You Do This:
Capture Value through your Monetization Engine
Trigger the Referral Loop
Helps simplify complex concepts
Notice two hotspots
Node with the most number of lines leaving
Node with the most number of lines entering
Customer value creation is a causal step
It causes:
People to spend more time with you
It causes:
People to spend more money with you
It causes:
People to refer others to you
The inverse is also true:
People leave you negative reviews
People leave and don’t come back
People ask for refunds
Helps Unlock the 3 Ways to Grow Your Business
Your Customer Factory
Engines of Growth
PAID
STICKY
REFERRAL
PAID Engine of Growth
STICKY Engine of Growth
REFERRAL Engine of Growth
Can be mapped to any type of business
The Lean Canvas App Customer Factory
Makes for the perfect metrics dashboard
Helps identify bottlenecks
And achieve breakthrough
IN STORES JUNE 14TH. BUY THE BOOK:
“Before you can prioritize waste, you have to be able to see the factory floor.”
- Ash Maurya, Scaling Lean
Master the Key Metrics for Startup Growth (AKA Traction)
SCALING LEAN
GET MORE FROM ASH AT LEANSTACK.COM