2. source: OReilly 3. book contentadditional stuffgroup discussion? 4. Book Parts1 Stop Lying to Yourself2 Finding the Right Metric for the Right Time3 Lines in the Sand4 Putting Lean Analytics to Workwont be covered tonight 5. Stop Lyingto Yourself1 6. Data? Lean Startup?I just go with my gut feeling.(too) many people 7. watch it here: http://www.ted.com/talks/tali_sharot_the_optimism_bias.html 8. Follow the Lean model, and itbecomes increasingly hard to lie,especially to yourself. 9. Instincts are experiments.Data is proof. 10. Do hosts withprofessionalphotographyget more business?image by mark sebastian / flickr 11. Gut instinctProfessional photography helps Airbnbs businessConcierge MVP20 photographers in the fieldTest resultsTwo to three times more bookings! 12. You are not building a product.You are building a tool to learnwhat product to build. 13. Finding theRight Metric2 for right now! 14. Good Metrics?image by kevin dooley / flickr 15. image by flopper/ flickrcomparativeimage by wikia.com 16. understandableimage by Jeff Kubina / flickr 17. rate or ratioimage by Gabe Photos / flickr 18. changes the way you behaveimage by will ockenden / flickr 19. image by 55Laney69 / flickrThe One Metric That Matters 20. 1 answers the most important question you have2 forces you to draw a line in the sand3 focuses the entire company4 inspires a culture of experimentation 21. Should you really focuson one metric? 22. Restaurants Effectiveness MetricsDelivery Usage Customer Satisfaction Possible InterpretationCrazy! Time to look at other metrics toimprove your business.Source: Klubeck, Metrics, page 149fGreat food and a loyal, but very smallcustomer base. Maybe a bad location.The only game in town. Or a productcustomers need but dont want.OK, something is wrong here. Youknow that.with Triangulation 23. Restaurants Effectiveness MetricsCustomer Satisfaction Possible InterpretationgoodSource: Klubeck, Metrics, page 149fgoodbadbadwithout TriangulationDelivery Usage Customer Satisfaction Possible Interpretationfocus on 24. ratio =staff costsgross revenuesimage by Giorgio Montersino / flickr 25. What Business are you in?E-Commerce SaaS Free Mobile AppMedia SiteUser-GeneratedContentTwo-SidedMarketplaces 26. What Stage are you at?Empathy Stickiness ViralityRevenue Scale 27. What is your OMTM? 28. Lines inthe Sand3 29. One of the most challengingthings for a startup to do:find a relevant number againstwhich to compare yourself. 30. Some interesting bottom linesGrowth5% (revenue or active users)Engaged Visitors30% monthly users10% daily usersMailing List Effectiveness20-30% open rate5% click-throughs 31. image by Robert Scoble / flickrShould you ask forbilling information upfront? 32. Trial usersSubscribersChurn 1st perriodEnd to end2%50%up to 40%0.6%10%15%up to 20%1.2% 33. Questions?