Post on 17-Feb-2017
MOST PRODUCTS FAIL
RAISED LOTS OF MONEY TONS OF USERS HIGH TRANSACTION VOLUME
On September 22nd, 2015 Quirky Declared Bankruptcy
What can we learn from looking at companies like Quirky?
How can you chart the unknown territory of innovation?
How do todays growth companies use metrics to stay ahead?
DATA STRATEGIES
The right data strategy is transformative for your product,
people, and business
1. Avoid “Vanity” MetricsDATA STRATEGY
SYMPTOM 1 VANITY METRICS
Vanity metrics are designed to make you feel good
SYMPTOM 2 VANITY METRICS
Vanity metrics are not tied closely to business progress
SYMPTOM 3 VANITY METRICS
Vanity metrics are typically defined as raw numbers
The problem with vanity metrics:
Image from https://blog.kissmetrics.com/throw-away-vanity-metrics/
Vanity metrics examples:• Pageview count
• Website hit count
• Total registered users
• Number of unique visitors
• Number of followers/friends/likes
• Time on site/number of pages
• Emails collected
• Total downloads
Who do we measure meaningful and actionable information?
2. Use “Actionable” MetricsDATA STRATEGY
ACTIONABLE METRICS
Actionable metrics tie specific and repeatable
actions to observed results
SYMPTOM 1 ACTIONABLE METRICS
Actionable metrics are commonly represented using
funnels, cohorts, or A/B testing
SYMPTOM 2 ACTIONABLE METRICS
Actionable metrics are high level enough to point in the direction of a problem (but not solve it)
Actionable metrics examples:
Metric Types:
• A/B Testing
• Per-customer metrics
• Cohort analysis
• Funnel analysis
Examples:
• Customer Lifetime Value
• Customer Acquisition Cost (paid/blended)
• Active Users (per time period)
• Churn
• Month-on-month growth
Vanity Metrics Actionable MetricsVS
• Raw numbers like page views
• Don’t represent business progress
• Don’t represent customer value
• Tie actions to results
• Per-customer or cohort
• Often represent value creation
How can you start small today?
3. Unit EconomicsDATA STRATEGY
What are unit economics?
Pirate metrics
Acquisition
Activation
Retention
Revenue
Referral
How do users find you?
Do users have a great first experience?
Do users come back?
How do you make money?
Do users tell others?
Cohort Analysis
Retention (50) Retention (100)
Acquisition (1000)
Activation (300)
Revenue (10)
Referral (5)
Acquisition (1000)
Activation (300)
Revenue (20)
Referral (10)
Acquisition
Activation
Retention
Revenue
Referral
Week 1 Week 2 Week 2
Simple & Easy to Track
4. Give Metrics PowerDATA STRATEGY
1. Create a build-measure-learn loop
Image from http://leanstack.com/how-we-use-lean-stack-for-innovation-accounting/
2. Take a step back from features
2. Take a step back from features
Ideas to increase customer engagement
3. Use the three “A’s”
Actionable
Accessible
Auditable
1. Avoid “Vanity” Metrics
2. Use “Actionable” Metrics
3. Unit Economics
4. Give Metrics Power