Post on 14-Apr-2017
Product RoadmapStatistics are your road signs
Who am I?
Why road signs?
You won’t know which way to go without them
PS.There is no Sat Nav, GPS or Google Maps to lead you directly home
The goal of every business
Time
Revenue
How to know where you are on this graph?
By gathering data and analyzing it!
Why?
1 simple reason:
Data doesn’t lie!
Divide the roadmap into 3 phases
Divide the roadmap into 3 phases
Product Market Fit
Divide the roadmap into 3 phases
Initial traction
Divide the roadmap into 3 phases
Growth
CAC, MRR, ARPU, LTV, RoI, COGS, NPS
CAC (Customer Acquisition Cost),MRR (Monthly Recurring Revenue), ARPU (Average Revenue per User), LTV (Lifetime Value), RoI (Return on Investment), COGS (Cost of Goods Sold),NPS (Net Promoter Score)
Product Goals
Profitability
Cash
Growth
Other (ie Market Share)
Revenue (MRR)
Months to recover CAC
Key guideline for startups
LTV 3x CAC<
Key guideline for startups
Time to recover CAC
12 months<
How to look at profitability #1 Microeconomics
ProfitabilityMicroeconomics (per customer profitability)
CAC
LTV
How to look at profitability #2 Overall profitability
ProfitabilityOverall
Profitability (Accounting)
Revenue
Expenses
COGS
MRR
Services Revenue
How to look at profitability #3 Per employee
Profitability Profitability per employee
Revenue per employee
Expenses per employee
Drilling down to MRR
MRR
New customers from sales
funnel
Churn
Total no. of customers
ARPU
Drilling down on Microeconomics
$
Time
LTV
CAC
What’s the biggest startup killer?
The cost of acquiring users (CAC)
Are you profitable?
Customer Profitability
LTV
CAC
What is LTV?
LTV
ARPU
Cust Average Lifetime
Cost to serve
% Churn rate
LTV = ARPU x Average Lifetime of a customer - COGS (Cost to serve them)
How to calculate LTV
What is CAC?
CAC
# closed deals
Total cost of sales &
marketing
Sales funnel convertion
metrics
Marketing program
cost
Level of touch
required
Personnel cost
CAC = Total cost of sales&marketing / Number of deals closed
How to calculate CAC
How to put this data into action?
Old School funnel
What did the marketing normally do??
Lead acquisition
Who here knows who is Dave McClure?
What are Pirate Metrics?
Pirate Metrics
Why Pirate Metrics? (AARRR!!!)
AARRR
Users come to your site/product from various sources
Examples of Acquisition Tactics
● SEO● SEM● PR● Social● Content
Marketing● Biz Dev● Webinar
● Referrals● Free trial● Newsletter● Guest post● Outreach● Q&A
Disclaimer:You don’t need huge volumes to acquire customers. If you have a few hundred of very targeted visitors every month - its fine!
Users come to your site/product from various sources
Users enjoy 1st visit: ‘happy’ user experience and leave contact info
Examples of Activation Tactics
● Social● Content
Marketing● Newsletter
● Lead nurturing● On-boarding● Screencasts
Difference between B2B & B2C
Example of a B2B Activation● Website form● RFP
Examples of B2C Activations● Create account● Buy something● Leave email
Users come to your site/product from various sources
Users enjoy 1st visit: ‘happy’ user experience
Users come back, visit the site multiple times
Examples of Retention Tactics
● Social● Content
Marketing● Newsletter
● Lead nurturing● On-boarding● Screencasts
Users come to your site/product from various sources
Users enjoy 1st visit: ‘happy’ user experience
Users come back, visit the site multiple times
Users conduct some monetization behavior
Examples of Revenue Tactics
● Scarcity● Discount● Annual plan● Up-sells
● Cross-sells● Evangelism● Guarantees● Support
Users come to your site/product from various sources
Users enjoy 1st visit: ‘happy’ user experience
Users come back, visit the site multiple times
Users like the product so much they refer it to others
Users conduct some monetization behavior
What should be the job of marketing?
Each source should have a dedicated funnel
Example1000 (100%)
Example
100 (10%)
1000 (100%)
Example
50 (5%)100 (10%)
1000 (100%)
Example
20 (2%)
50 (5%)100 (10%)
1000 (100%)
5 (0,5%)
Example
20 (2%)
50 (5%)100 (10%)
1000 (100%)
Friends, press, school, SEO, referral
Add 5 or more friends
FacebookFriends, press, school
You come back to see what are your friends doing
Add 5 or more friends
Friends, press, school
You click on ads in your news feed
You come back to see what are your friends doing
Add 5 or more friends
Friends, press, school
You ask your friends to join because you want to follow what they’re doing
You click on ads in your news feed
You come back to see what are your friends doing
Add 5 or more friends
Friends, press, school
Friends, press, SEO, referral
Dropbox
Set up your account to store and share files
DropboxFriends, press, SEO, referral
You want to upload more files or use the ones you’ve uploaded
Dropbox
Set up your account to store and share files
Friends, press, SEO, referral
You need more space, so you buy it
Dropbox
You want to upload more files or use the ones you’ve uploaded
Set up your account to store and share files
Friends, press, SEO, referral
You need more space so you invite your friends - invites give you both more space
Dropbox
You need more space, so you buy it
You want to upload more files or use the ones you’ve uploaded
Set up your account to store and share files
Friends, press, SEO, referral
Friends, press, SEO, referral
Uber
Your first ride (most likely for free)
UberFriends, press, SEO, referral
You want to use your remaining free rides / You never want to go back to regular taxi services
UberFriends, press, SEO, referral
Your first ride (most likely for free)
You start paying for rides because your free codes are gone
Uber
You want to use your remaining free rides / You never want to go back to regular taxi services
Friends, press, SEO, referral
Your first ride (most likely for free)
You and your friend both get free codes for the referral
Uber
You start paying for rides because your free codes are gone
You want to use your remaining free rides / You never want to go back to regular taxi services
Friends, press, SEO, referral
Your first ride (most likely for free)
PS. My referral code is atbe5wgge
SEO, Social Media, Referral, Influencers
eStore with socks
Unique sock patterns & great delivery terms
eStore with socksSEO, Social Media, Referral, Influencers
Remarketing kept stalking you until you really wanted these socks
eStore with socks
Unique sock patterns & great delivery terms
SEO, Social Media, Referral, Influencers
You bought the socks you liked so much….and 3 other pairs
eStore with socks
Remarketing kept stalking you until you really wanted these socks
Unique sock patterns & great delivery terms
SEO, Social Media, Referral, Influencers
The newsletter said that if your friend bought 4 pairs, the you’d get one for free so you talked your friend into it
eStore with socks
You bought the socks you liked so much….and 3 other pairs
Remarketing kept stalking you until you really wanted these socks
Unique sock patterns & great delivery terms
SEO, Social Media, Referral, Influencers
SEO, Social Media, Referral, Blog
CRM
Great features, many integrations, good pricing
CRMSEO, Social Media, Referral, Blog
You left your email and the nurturing campaign together with remarketing
CRM
Great features, many integrations, good pricing
SEO, Social Media, Referral, Blog
You decided to give it a go and after 30 days it was all you ever needed, so you started to pay
CRM
You left your email and the nurturing campaign together with remarketing
Great features, many integrations, good pricing
SEO, Social Media, Referral, Blog
You were so happy with the features, customer support and UI that when a friend was looking for a CRM - you recommended this one
CRM
You decided to give it a go and after 30 days it was all you ever needed, so you started to pay
You left your email and the nurturing campaign together with remarketing
Great features, many integrations, good pricing
SEO, Social Media, Referral, Blog
SEO, Social Media, Referral, Blog, Ads
Apple Equipment Fixing Service
Good reputation, they can fix my problem, pricing is within my range
Apple Equipment Fixing ServiceSEO, Social Media, Referral, Blog, Ads
I keep seeing their ads everywhere (remarketing) or I signed up to their newsletter and I need to fix my iPad
Apple Equipment Fixing Service
Good reputation, they can fix my problem, pricing is within my range
SEO, Social Media, Referral, Blog, Ads
You send/give them your device to fix
Apple Equipment Fixing Service
I keep seeing their ads everywhere (remarketing) or I signed up to their newsletter and I need to fix my iPad
Good reputation, they can fix my problem, pricing is within my range
SEO, Social Media, Referral, Blog, Ads
They did it really quick, the courier was free, they ask you to refer 5 friends and they will get you your next fix on the house while your 5 friends get a 15% discount - win win!
Apple Equipment Fixing Service
You send/give them your device to fix
I keep seeing their ads everywhere (remarketing) or I signed up to their newsletter and I need to fix my iPad
Good reputation, they can fix my problem, pricing is within my range
SEO, Social Media, Referral, Blog, Ads
Learn more on our meetups!
Any questions ?You can find me at◉ tomzduda@gmail.com◉ facebook.com/growthenginexyz
Thanks!