Lean analytic study group ch5-ch6

Howie YU

Lean AnalyticsChapter 5 ~ Chapter 6

Agenda

• Chapter 5 - Analytics Frameworks

• Chapter 6 – The Discipline of One Metric That Matters

Dave McClure’s Pirate Metrics (AARRR)

Eric Ries’s Engines of Growth

Ash Maurya’s Lean Canvas

Sean Ellis’s Startup Growth Pyramid

The Long Funnel

The Lean Analytics Stages and Gates

Chapter 5 - Analytics Frameworks

Dave McClure’s Pirate Metrics - AARRR

These five elements don’t necessarily follow a strict order

• Sticky Engine (黏著度 )

• Virality Engine (病毒式傳播 )

• Paid Engine– Customer lifetime value (CLV)– Customer acquisition cost (CAC)

Eric Ries’s Engines of Growth

Ash Maurya’s Lean Canvas

Respondents who have this need, respondents who are aware of having the needRespondents who try the MVP,

engagement, churn, most-used/least-used features, people willing to pay.Feedback scores, independent ratings,

sentiment analysis, customer-worded descriptions, surveys, search, and competitive analysis

How easy it is to find groups of prospects, unique keyword segments, targeted funnel traffic from a particular source

Leads and customers per channel, viral coefficient and cycle, net promoter score, open rate, affiliate margins, click-through rate, Page rank, message reach

Respondents’ understanding of the UVP (Unique Value Proposition), patents, brand equity, barriers to entry, number of new entrants, exclusivity of relationships

Lifetime customer value, average revenue per user, conversion rate, shopping cart size, click-through rate

Fixed costs, cost of customer acquisition, cost of servicing the nth customer, support costs, keyword costs

Sean Ellis’s Startup Growth Pyramid

You can send customers a survey to determine if you’re ready for accelerated growthGo to http://survey.io/

How would you feel if you could no longer use this product or service?

>40%Find

Market Fit

The Long Funnel

The Lean Analytics Stages and Gates

Chapter 6 The Discipline of One Metric That Matters (OMTM)

Real Time Analytic Tools

• Geckoboard

• Mixpanel

• Kissmetrics

• Totango

• Chartbeat

http://goo.gl/kah50B

Case StudyMoz tracks Fewer KPIs to Increase Focus

• “We are very metrics-driven– customer count– free trial counts

• Net Adds = new paid subscribers - total who cancelled – Total Paying– New Free Trials Yesterday– 7-Day Net Add Average

Why One Metric That Matters?

• It answers the most important question you have

• It forces you to draw a line in the sand– have clear goals

• It focuses the entire company– report too many things: data puking

• It inspires a culture of experimentation– build→measure→learn cycle

Case StudySolare Focuses on a Few Key Metrics• At the Restaurant

– The ratio of staff costs to gross revenues for the previous day• per-diner revenues vs. staffing cost

– Why ratio work?• Simple• Immediate• Actionable• Comparable• Fundamental

staffing cost

gross revenue

+30%

1. spending too much on staff ?2. not deriving enough revenue per

customer

24%

staffing cost

gross revenue

Drawing Lines in the Sand Target Goal

• New Customers Per Week– How many new customers per week do you need?

• what success looks like?– Comes from your business mode (industry baseline)

How many new customers per week (per acquisition channel) do you think defines a level of success that enables you to double down on user acquisition and move to the next step in the process?

The Squeeze toy (操作變因，應變變因 )

• Tuning OMTM might cause new OMTM– number of enrollments cost per customer– increased traffi maximize conversion– foot traffi need to get people to buy several coffees

Thanks