@rilinho@paorapetti

Business & Measurement

Agenda

● What Does Business Do?

● How We Got Here?

● How to Begin to Measure?

● Data and Decisions

What do Business do?

ProductService Value Clients

Value ($)Business

What did it take for them to build their products?

Research & Development, Exploration, Testing, etc.

What did it take for them to build their products?

Client Segments, Multi-Product, Big Marketing, etc.

What did it take for them to build their products?

What did it take for them to build their products?

Find Talent, Find Distribution, Licensing, etc.

What did it take for them to build their products?

Ecosystems, Venture Capital, Patents, etc.

Build Product First, then Go To Market

● Making Products is expensive and takes time

● Marketing and Sales are expensive and take time

The Startup of 15 Years Ago (Dave McClure)

● Big Costs○ IT: Sun / Oracle○ Marketing: PR, Advertising

● Long Cycles○ 12 - 24 mo for dev, then○ 6 - 18 m for sales

● Small Market○ <100M people online

● Limited # of Investors

The Startup of Today (Dave McClure)

● Smaller Costs (Much Free)○ IT: Amazon, Google, Paypal○ Marketing: Social Media, Blogs○ Data: GA, MP, Heatmaps

● Short Cycles○ 3 - 90 days for dev○ Sales Online

● Large Market○ <3B people online

● More Investors (Angels)

Making Products Today

● “Fit” is determined by

Data / Metrics

● Lower Costs = More

Competition

● Specialization / Niche

Generating Business Value How To Track It

Looking at a Random Business

“Museo Torres Garcia”

● How can we define success?

● What can we use to measure that?

● What is their value?● What is the potential

market?

What Every Business Does (very simplified)

1. Get client’s attention

2. Make them a customer

3. Earn repeat business

4. Earn referral business

Enter the Shop

Shop in the Street

Buy Something

Come Back

Tell their friends

Visit your Site

Sign Up

Buy Every Month

Tell their friends

Online Application

Buy

What Every Business Does (very simplified)

1. Get client’s attention

2. Make them a customer

3. Earn repeat business

4. Earn referral business

Acquisition

Activation

Retention

Referral

Marketing

How “Sticky” is Your Product? (Dave McClure - AARRR Metrics)

Acquisition

Activation

Retention

Referral

Visit Your Site

Doesn’t Abandon (i.e. stays 1 minute)

Happy Visit (stays X minutes, sees Y pages)

Takes Action: Sign Up for Blog / Newsletter

Use / Buy Core Product

Premium Services

Tells their Friends

Repeats Use of Core Product

100%

70%

30%

5%

2%

1%

Compare to Users

Focusing on your Value

● Pick a Metric / Stage ○ 75% Accuracy Now > 100% Later

○ Validate by talking with users

● Single Purpose for Team○ Everyone pointed in one direction

○ Do not measure everything

● No Marketing / Growth / Partnerships until you get there

What is your “Magic Moment”?

Find The Users that Love You#

of U

sers

Friend Zone A Whole Lotta Love

Cliches, but for a reason

● Understand your users

● Few Loves is better than Many Likes

● Give amazing customer service

● You make what you measure

● Spend very little

● Be focused and avoid distractions

● Deals fall through, don’t give up

Thanks!

@rilinho@paorapetti