Metrics for product development and business growth

©jesperforslund.se

©JesperForslundjesperforslund.se

MetricsFromaproductdevelopmentandbusiness

growthperspec<vePresented@ChalmersVentures,StartupCamp

2016-03-30

Aboutme

CaptainOfOpera<on@SpeedLedgerCaptainofthejury@VentureCup

Mentor@ConnectVästCrossfunc6onalbusinessninjawithametricdrivenapproachtogrowth

About

[email protected]

SaaSgrowthcompanyprovidingthebestaccoun<ngproductbasedonautoma<onandsimplicity

-empoweredwithaccoun<ngsupport! Allatafixedprice:)

Whymetricsareimportant

AskLarrySmarr!

Whyarewehere!

You(thinkyou)have anawesomeproduct.

Youneedcustomers…

…thatlovesyourproduct!(alsoknownforproduct<3marketfit)

Soyoucanmakemoney…

…andpayforthebusiness

opera<on

+ + → >

Howtobuildproducts

BUILD

MEASURELEARN

Whywemeasure

wemeasuretogaininsightssowecanlearn,soinordertomeasureweneedtoknow

whatweexpecttolearn-simplywhichhypothesishavewebuiltupon

andhowcanweconfirmit

2approaches

Talktocustomers

Measureac<vity

NumberofcustomersSome HumongousFocuson

Product/MarketfitYes Keystuff

FocusonScaleSome<mes Yes

KPIsvsMetrics

http://adambriggs.ca/illustration/#/illustration/ice-burg/

KPI

Metrics

Anyexamples?Sure!

Impactofproductchanges

Cohortreport

realexample-fakedata

Impactofproductchanges

CohortreportMeasureconversionover<meforaspecificcohort

GoodfortrackingproductCHANGES

FunnelreportMeasureconversionbetweenmul<plesteps

GoodfortrackingproductFLOWS

Productflow

Canyoufindvaria<onsbetweensegments?!

Dothis:

• Countnumberofnewusersinthisjourney

• Funnelreport:Conversionbetweeneachstep

• Talktodeadusers

• Asksuccessfuluserswhatalmostkilledthem

Customerjourney

?

! :)

Metricsforgrowth

image credit: uberoff202 ff/flickr/cc

Metricsdependingonbusinessmodel

Onerevenueperorder

Recurringrevenueperorder

Exempel:(E-)commerce,consultants,customerprojects.

Exempel:subscrip6on,SaaS.

CustomerGrowthChurn

CACochLTVRevenueGrowth

Exempel:Customerprojectincludingmaintenance.

SalesforecastMarginsondeliveryCustomerloyaltyRevenueGrowth

Keymetricsforstartups

ProductMarketFit

Promisingsaleschannel

CustomerSuccess

Usage/Engagement

Profitableandrepeatablebusiness

model

Scaleit

Growth#customers

ARPU

Churn

NPS

CustomerSuccess

Usage/Engagement

Growth#customers

ARPU

Churn

NPS

CustomerSuccess

Usage/Engagement

CACperchannel

MRR

Payback6me

Thekeyproductques<onHowwouldyoufeelifyoucouldnolongeruse[product]? 1 Verydisappointed 2 Somewhatdisappointed 3 Notdisappointed(itisn’treallythatuseful) 4 N/A–Inolongeruse[product]

Howmanyareverydisappointed?

Above40%→Below40%→

NPSHowlikelyisitthatyouwould

recommend[brand]toafriendorcolleague?Detractors NeutralPromoters

NPScalcula<on:%promoters-%detractors

Above30→GoodBelow30→Bad

Visualise!

Easyandfunwithgeckoboard.com

Keymetricsshouldalwaysbevisiblefortheteamandeveryonemustunderstandthegoalandthecurrentstate.

Onceagain

1. Highvolumeofusersincreasetheneedfor

“measurewithmetrics”.

2. Usecohortreportsandfunnelreports.

3. Trac6onandengagementiskeyforproductusagegrowth.

Finalword….

Growthisaboutlearning sowecanunderstandwhatworksandnot

!

Feedbackisthecoreoflearning!

TalktocustomersANDsetupyourmetrics

Ques<ons?

hRps://www.flickr.com/photos/derek_b/

hRps://www.flickr.com/photos/derek_b/

Moreaboutmetricsandhowtohackgrowth?

[email protected] jesperforslund.se

hRps://www.flickr.com/photos/tom-margie/3001927566