Measure real not vanity metrics in the customer journey

1. VALUE STRE AM
DISCO VE RY

2. VALUE STREAM DISCOVERY
WHERE SHOULD WE FOCUS?
PASSIONATESATISFIEDHOPEFULCONVINCEDTRUSTINGINTRIGUEDAWARE
Hypothesize
• Customer Behavior
• Business Activity
• How to measure

3. Intrigued
Satisfied
Passionate
Aware Trusting
Convinced Hopeful
makeutility
promise
aspirationalimpact
wehopewillbe
how
toachievepromise
calltojoinjourney
1 2
3
4 5
6 7
how to demonstrate first
value
where & how to broadcast existence
to whom
proof that this organization is the right
one to fulfill promise
how to get commitment to try
VALUE STREAM DISCOVERY BOARD
Version 1.0 | Copyright © Brant Cooper. | All Rights Reserved

4. © Moves the Needle All rights reserved
VALUE STREAM DISCOVERY
INTRIGUED
business activity: intrigued marketing
UTILITY PROMISE
• Addresses a specific need: we will solve need x
ASPIRATION
• What is the emotional impact: we hope to
achieve z
CUSTOMER BEHAVIOR
• A customer is intrigued when: she does a, b, c
METRIC
• To measure behavior: we track 1, 2, 3
• x % visitors…
• y % mo/mo growth of intrigued users
business activity
metric(s)
INTRIGUED
customer behavior

6. © Moves the Needle All rights reserved
VALUE STREAM DISCOVERY
INTRIGUED Slack: intrigued marketing
UTILITY PROMISE
• Addresses a specific need: real-time messaging,
archiving, search for modern teams.
ASPIRATION
• What is the emotional impact: be less busy.
relax.
CUSTOMER BEHAVIOR
• A customer is intrigued when: she spends 5
minutes on website
METRIC
• To measure behavior: we track users’ path through
web site
• x % visitors browse listings for 5 minutes
• 10 % mo/mo growth of intrigued users
business activity
metric(s)
INTRIGUED
customer behavior

7. © Moves the Needle All rights reserved
What is your Intrigued messaging?
• What is your utility promise?
• State the underlying need you’re addressing
• Ex: Child will practice music lessons more by using the app
• What is the aspiration?
• What journey are you inviting your customer on? What’s the impact of addressing their need?
• Ex: Child will grow up to love music
• What is the behavior that indicates customer is intrigued?
• Ex: Customer clicks buy now button
• How will you measure behavior?
• Ex: # of clicks on buy now
• Ex: mo/mo growth of buy now
:10VALUE STREAM DISCOVERY
INTRIGUED

8. © Moves the Needle All rights reserved
VALUE STREAM DISCOVERY
SATISFIED
business activity: minimum viable product
UTILITY PROMISE
• How we addresses specific need: product must
have at least these characteristics to satisfy need
CUSTOMER BEHAVIOR
• A customer is satisfied when: she does a, b, c
METRIC
• To measure behavior: we track 1, 2, 3
• user does…
• y % mo/mo growth of satisfied users
business activity
metric(s)
SATISFIED
customer behavior

9. © Moves the Needle All rights reserved
SATISFIED
2000 MESSAGES
“Based on [which companies] stuck with us and which didn't, we decided
that any team that has exchanged 2,000 messages in its history has tried
Slack — really tried it,” Butterfield says. “[It] hit us that, regardless of any
other factor, after 2,000 messages, 93% of those customers are still using
Slack today.”
2,000

10. © Moves the Needle All rights reserved
VALUE STREAM DISCOVERY
SATISFIED
business activity: minimum viable product
UTILITY PROMISE
• How we addresses specific need: product must
have account management, ability to post messages,
organize messages in configurable channels
CUSTOMER BEHAVIOR
• A company’s users satisfied when: they’ve sent
2000 messages
METRIC
• To measure behavior: we track number of
messages sent/day
• all users post x messages/day
• y % mo/mo growth of satisfied companies
business activity
metric(s)
SATISFIED
customer behavior

11. © Moves the Needle All rights reserved
What defines an active or engaged user?
• What MUST you provide to fulfill utility promise?
• Describe the minimum functionality required to address the underlying need
• Ex: iPad app that records and plays back music using silly avatar
• What is the behavior that indicates customer is satisfied?
• Ex: Child sings to iPad and listens to recording 3x/week
• How will you measure behavior?
• Ex: # of users who record and listen using app 3x/week
• Ex: mo/mo growth of satisfied (engaged/active) users
:10VALUE STREAM DISCOVERY
SATISFIED

12. © Moves the Needle All rights reserved
VALUE STREAM DISCOVERY
PASSIONATE
business activity: amazing UX
ASPIRATION
• How we create impact: product must be so easy to
use, users dramatically reduce use of email and text
messages to communicate
CUSTOMER BEHAVIOR
• A company’s users are passionate when: they
invite others to join; post on social media
METRIC
• To measure behavior: we track number of referrals
• # of social media posts/day
• viral coefficient
business activity
metric(s)
customer behavior
PASSIONATE

13. © Moves the Needle All rights reserved
PASSIONATE USERS
FROM 0 TO 1 BILLION
“added my entire cohort…”

14. © Moves the Needle All rights reserved
VALUE STREAM DISCOVERY
PASSIONATE
business activity: amazing UX
ASPIRATION
• How we create impact: product must be so easy to
use, users dramatically reduce use of email and text
messages to communicate
CUSTOMER BEHAVIOR
• A company’s users are passionate when: they
invite others to join; post on social media
METRIC
• To measure behavior: we track number of referrals
• # of social media posts/day
• viral coefficient
business activity
metric(s)
customer behavior
PASSIONATE

15. © Moves the Needle All rights reserved
What defines an active or engaged user?
• What MUST you provide to go on aspiration journey
• Describe the journey you wish to take user on and what you must provide
• Ex: iPad adds effects to singing and uploads to youtube
• What is the behavior that indicates customer is passionate?
• Ex: Child uploads her song to app youtube
• Ex: Parent shares with other parents and family
• How will you measure behavior?
• Ex: # of users who upload songs
• Ex: viral coefficient
:10VALUE STREAM DISCOVERY
PASSIONATE

16. IM PACT MET RIC

17. © Moves the Needle All rights reserved
METRICS THAT MATTERS
WHAT IS THAT?
It doesn’t mean there’s only one metric you care about from the day
you wake up with an idea to the day you sell your company.
It does, however, mean that at any given time, there’s one metric you
should care about above all else. Communicating this focus will really
help your team concentrate your efforts.

18. © Moves the Needle All rights reserved
MEASURING SATISFACTION
IMPACT METRIC
IMPACT METRIC
The one metric that indicates the user is receiving the value promised by our
product.
To determine what indicates a “Satisfied” user, you must:
• Understand deeply the underlying problem you’re solving.
• List the specific interaction with your solution to extract value.
• Specify behavior within a timeframe.
Guide
• What behavior indicates “engagement” with the product
• Probably not just one time activity
• What defines an “active” user
• Not every user will achieve “satisfied”

19. VALUE STREAM DISCOVERY
WHERE SHOULD WE FOCUS?
PASSIONATESATISFIEDHOPEFULCONVINCEDTRUSTINGINTRIGUEDAWARE
Hypothesize
• Customer Behavior
• Business Activity
• How to measure

20. © Moves the Needle All rights reserved
FROM 0 TO VALUED AT 1 BILLION
IN TWO YEARS

21. © Moves the Needle All rights reserved
MEASURING SATISFACTION
IMPACT METRIC EXAMPLES
• Youtube
Upload video and share with 10 friends, 3 times per month
• Uber
Take a ride 12 times in 6 months
• Facebook
10 friends within first 7 days
• PUR Contact Lenses
Purchase cleaning solution 3 times within first 3 months
• Blue Apron
Order 3 meals every 2 weeks
METRIC
IMPACT

22. © Moves the Needle All rights reserved
Find the metric that matters!
• What is the value you’re providing the user/customer?
Understand deeply the underlying problem you’re solving.
• What must the user/customer do to get that value?
List the specific interaction with your solution to extract value.
• How can you measure what the customer does to get value?
What behavior indicates “engagement” with the product?
:20COACHING PRACTICE
IDENTIFY THE IMPACT METRIC
• How often should the customer do this? Over what time period?
Specify behavior within a timeframe.