Lean Analytics - Bringing Back the Book Report

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A quick review of Lean Analytics by Ben Yoskovitz and Alistair Croll. Presented at Singapore Lean Startup Circle.

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  • 1. Lean Analytics Bringing Back theBook ReportPresented at Singapore Lean Startup CircleApril 10, 2013

2. Hello! Product guy Mix of corp and startup 5+ years in SEA Yahoo Product Marketing Pollenizer SEA GM @sonofsarah 3. Lean 2.0 - The Growth of a Management Science? 1980 Toyota...Dot Com Boom (1997 - 2000Pre History 2000 Dot Com Crash (2000 - 2001)Steve Blank - 4 Steps to the Epiphany (2005)Lean Startup "coined" (2008) 2010Lean Startup 1.0The Lean Startup (2011)The Lean Startup @ SXSW (2012)The Lean Startup Conference (2012)Lean Analytics (2013)Lean Startup 2.0Lean UX (2013) 4. Image Credit - http://brendanmarsh.com/lean/the-lean-startup-validation-board/ 5. Lean Analytics in a SlideCASE STUDIES and EXAMPLESOMTMBenchmarkingLean Analytics Business Model Types5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel AnalysisLeanLean Principles Small Batch ProductionStartup Life Cycle Actionable Metrics 6. Refresh - Actionable MetricsCASE STUDIES and EXAMPLESOMTMBenchmarkingLean Analytics Business Model Types5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel AnalysisLeanLean Principles Small Batch ProductionStartup Life Cycle Actionable Metrics 7. Vanity Metrics Actionable Metrics Must go up over time Enables comparison NOT comparativeOften a ratio Often a simple total Often cohort based Typically not granular Drives decision making Focused on story telling Can answer the question "did that Not directly tied to biz. healthexperiment work"? EXAMPLESEXAMPLES Total downloads Conversion or retention rate FB likes Churn rate Registered users Shopping cart size 8. The 6 Startup Business ModelsCASE STUDIES and EXAMPLESOMTMBenchmarkingLean Analytics Business Model Types5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel AnalysisLeanLean Principles Small Batch ProductionStartup Life Cycle Actionable Metrics 9. The 6 Startup Business Models E Commerce SAAS Free App- CAC- CAC- CAC- Conversion rate- Engagement - MAU- Cart size- Free/paid conversion - Free/paid conversion- Return purchase- Churn- Churn- LTV (or Payback) - LTV- ARPU MediaUGC (Social)Marketplace- MAU- MAU- Inventory (Supply)- Engagement - Engagement - Buyers (Demand)- PV (or equivalent) - % Creators - Search Effectiveness- CTR- CTR- Ratings- CPM- CPM Takeaway - Know your funnel! 10. The Lean Analytics StagesCASE STUDIES and EXAMPLESOMTMBenchmarkingLean Analytics Business Model Types5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel AnalysisLeanLean Principles Small Batch ProductionStartup Life Cycle Actionable Metrics 11. The Lean Analytics StagesSCALEREVENUE VIRALITY STICKINESSEMPATHYTakeaway - Know your stage (but feel free to use other terms) 12. One Metric That MattersCASE STUDIES and EXAMPLESOMTMBenchmarkingLean Analytics Business Model Types5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel AnalysisLeanLean Principles Small Batch ProductionStartup Life Cycle Actionable Metrics 13. One Metric That Matters Pick one metric that is critical to biz health Focus the team around it (put it on screen!) Optimize the hell out of it Pick a new metric as biz grows and changes 14. Case Study - Wooboard OMTM 15. Case Study - Wooboard OMTM PHASE METRIC TYPEMETRICIs there a problem?User InterestCompany sign upsDo we have a solution? Engagement Woos per userIs there a market? Revenue% of premiumconversionsThis is a classic SaaS OMTM progression. See also Backupify. Phase 1 - site visits Phase 2 - trials Phase 3 - monthly recurring revenueTakeaway - Pick an OMTM (or at least get data focused) 16. "The core idea behind LeanAnalytics is this: by knowing thekind of business you are, and thestage you are at, you can track andoptimize the One Metric thatMatters to your startup right now." - B Yoskovitz and A Croll 17. BenchmarkingCASE STUDIES and EXAMPLESOMTMBenchmarkingLean Analytics Business Model Types5 Stage Lifecycle Analytics for Cohort Analysis A/B Testing Funnel AnalysisLeanLean Principles Small Batch ProductionStartup Life Cycle Actionable Metrics 18. Some Benchmarking Examples E CommerceSAAS Free AppConversion Free trial - request card App size- expect 2%- 2% try, 50% buy - stay below 50MB to avoid- aim for 10% download drop offCart abandonment Free trial - no card- expect 65%!- 10% try, 25% buyApp CAC - Shoot for $.50 to $.75 Monthly churn - make sure CAC is less than - < 5% for growth LTV! - < 2% for scale Conversion Growth- free to aid - 2% - increase customer revenue - In app purchases - 1.5% by 20% a year - upsell 2% of users/month Takeaway - Lines in the sand are key to measuring success 19. Lean Analytics Truisms Know your funnel! Know where youre at in the lifecycle Establish data focus Set clear success metrics Instrument and track early! Make sure that you are allocatingresources to test a measurable hypothesis 20. THANK YOU

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