Jan König Lean Startup Meetup
Karlsruhe @einkoenig 22.04.2013

source: O’Reilly

book content additional stuff group
discussion?

Book Parts 1 Stop Lying
to Yourself 2 Finding the Right Metric for the Right Time 3 Lines in the Sand 4 Putting Lean Analytics to Work won’t be covered tonight

Stop Lying
to Yourself1

Data? Lean Startup? I just
go with my gut feeling. (too) many people

watch it here: http://www.ted.com/talks/tali_sharot_the_optimism_bias.html

Follow the Lean model, and
it becomes increasingly hard to lie, especially to yourself.

Instincts are experiments. Data is
proof.

Do hosts with professional photography
get more business? image by mark sebastian / flickr

Gut instinct Professional photography helps
Airbnb’s business Concierge MVP 20 photographers in the field Test results Two to three times more bookings!

You are not building a
product. You are building a tool to learn what product to build.

Finding the Right Metric2 for
right now!

Good Metrics? image by kevin
dooley / flickr

image by flopper/ flickr comparative
image by wikia.com

understandable image by Jeff Kubina
/ flickr

rate or ratio image by
Gabe Photos / flickr

changes the way you behave
image by will ockenden / flickr

image by 55Laney69 / flickr
The One Metric That Matters

1 answers the most important
question you have 2 forces you to draw a line in the sand 3 focuses the entire company 4 inspires a culture of experimentation

Should you really focus on
one metric?

Restaurant’s Effectiveness Metrics Delivery Usage
Customer Satisfaction Possible Interpretation Crazy! Time to look at other metrics to improve your business. Source: Klubeck, “Metrics”, page 149f Great food and a loyal, but very small customer base. Maybe a bad location. “The only game in town.” Or a product customers need but don’t want. OK, something is wrong here. You know that. with Triangulation

Restaurant’s Effectiveness Metrics Customer Satisfaction
Possible Interpretation good Source: Klubeck, “Metrics”, page 149f good bad bad without Triangulation Delivery Usage Customer Satisfaction Possible Interpretation focus on

ratio = staff costs gross
revenues image by Giorgio Montersino / flickr

What Business are you in?
E-Commerce SaaS Free Mobile App Media Site User-Generated Content Two-Sided Marketplaces

What Stage are you at?
Empathy Stickiness Virality Revenue Scale

What is your OMTM?

Lines in
the Sand3

One of the most challenging
things for a startup to do: find a relevant number against which to compare yourself.

Some interesting bottom lines Growth
5% (revenue or active users) Engaged Visitors 30% monthly users 10% daily users Mailing List Effectiveness 20-30% open rate 5% click-throughs

image by Robert Scoble /
flickr Should you ask for billing information upfront?

Trial users Subscribers Churn 1st
perriod End to end 2% 50% up to 40% 0.6% 10% 15% up to 20% 1.2%

Questions?