2. Agenda
• Chapter 5 - Analytics Frameworks
• Chapter 6 – The Discipline of One Metric That Matters
3. Dave McClure’s Pirate Metrics (AARRR)
Eric Ries’s Engines of Growth
Ash Maurya’s Lean Canvas
Sean Ellis’s Startup Growth Pyramid
The Long Funnel
The Lean Analytics Stages and Gates
Chapter 5 - Analytics Frameworks
4. Dave McClure’s Pirate Metrics - AARRR
These five elements don’t
necessarily follow a strict order
5. • Sticky Engine ( )
• Virality Engine ( )
• Paid Engine
– Customer lifetime value (CLV)
– Customer acquisition cost (CAC)
Eric Ries’s Engines of Growth
6. Ash Maurya’s Lean Canvas
Respondents who have this
need, respondents who are
aware of having the needRespondents who try the MVP,
engagement, churn, most-
used/least-used features, people
willing to pay.Feedback scores, independent ratings,
sentiment analysis, customer-worded
descriptions, surveys, search, and
competitive analysis
How easy it is to find
groups of prospects,
unique keyword segments,
targeted funnel traffic from
a particular source
Leads and customers per channel,
viral coefficient and cycle, net
promoter score, open rate, affiliate
margins, click-through rate, Page
rank, message reach
Respondents’ understanding of the
UVP (Unique Value Proposition),
patents, brand equity, barriers to
entry, number of new entrants,
exclusivity of relationships
Lifetime customer value, average
revenue per user, conversion rate,
shopping cart size, click-through
rate
Fixed costs, cost of customer
acquisition, cost of servicing the nth
customer, support costs, keyword
costs
7. Sean Ellis’s Startup Growth Pyramid
You can send customers a
survey to determine if
you’re ready for accelerated
growth
Go to http://survey.io/
How would you feel if you could
no longer use this product or service?
>40%
Find
Market Fit
11. Real Time Analytic Tools
• Geckoboard
• Mixpanel
• Kissmetrics
• Totango
• Chartbeat
http://goo.gl/kah50B
12. Case Study
Moz tracks Fewer KPIs to Increase Focus
• “We are very metrics-driven
– customer count
– free trial counts
• Net Adds = new paid subscribers - total who cancelled
– Total Paying
– New Free Trials Yesterday
– 7-Day Net Add Average
13. Why One Metric That Matters?
• It answers the most important question you have
• It forces you to draw a line in the sand
– have clear goals
• It focuses the entire company
– report too many things: data puking
• It inspires a culture of experimentation
– build→measure→learn cycle
14. Case Study
Solare Focuses on a Few Key Metrics
• At the Restaurant
– The ratio of staff costs to gross revenues for the previous day
• per-diner revenues vs. staffing cost
– Why ratio work?
• Simple
• Immediate
• Actionable
• Comparable
• Fundamental
staffing cost
gross revenue
+30%
1. spending too much on staff ?
2. not deriving enough revenue per
customer
24%
staffing cost
gross revenue
15. Drawing Lines in the Sand Target Goal
• New Customers Per Week
– How many new customers per week do you need?
• what success looks like?
– Comes from your business mode (industry baseline)
How many new customers per week (per acquisition channel) do you
think defines a level of success that enables you to double down on user
acquisition and move to the next step in the process?
16. The Squeeze toy ( )
• Tuning OMTM might cause new OMTM
– number of enrollments cost per customer
– increased traffi maximize conversion
– foot traffi need to get people to buy several coffees
