Analytics for Startups - Dublin Web Summit 2015
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Transcript of Analytics for Startups - Dublin Web Summit 2015
Andy Young // @andyy // [email protected]
How do I analytics?a practical guide forpragmatic startups
Dublin Web Summit 2015
Andy Young // @andyy // [email protected]
What do we measure, and why?
Vanity metricsRevenue metrics
Conversion rate metricsPirate metrics..
We need to know how we’re doing.
Andy Young // @andyy // [email protected]
If you're not keeping score there's no point playing the game -
you'll never know if you'rewinning or not
- @distrodom
Andy Young // @andyy // [email protected]
Today’s tools make it super-easy to track
thingsGoogle Analytics
MixpanelKissMetricsLocalytics
Branch Metrics..
Andy Young // @andyy // [email protected]
Today’s tools make it super-easy to track
thingsBUT they also make it really easy to
- become overwhelmed with data- focus on the wrong things
Andy Young // @andyy // [email protected]
Typical analytics challenges/pitfalls
Drowning in too much data
Failure to select + focus on the top metrics that matter
Not tracking the data you need to answer key questions
Andy Young // @andyy // [email protected]
Why analytics?
1. How are we doing? - are KPIs on the right track?
2. What are the results of our experiments?- so we can learn
3. What’s happening right now?- did something great or terrible just happen?
Andy Young // @andyy // [email protected]
A. How are we doing?
Andy Young // @andyy // [email protected]
Identify top-level KPI
if you pick the wrong KPIs, you're screwed.
If you pick KPIs and then ignore them, you're screwed.
If you pick and monitor KPIs diligently, but don't assess everything you and your whole team does on the basis of whether your tasks are the most effective way to grow your KPIs, you're screwed.
Andy Young // @andyy // [email protected]
Identify top-level KPI
Keep it simple!
The good news: there’s probably apre-determined answer
forwhat drives your business
Andy Young // @andyy // [email protected]
Identify top-level KPI
There’s probably a pre-determined answer for what drives your business
Spoiler: ultimately it’s $$$
Andy Young // @andyy // [email protected]
How’re we doing?
There’s probably a pre-determined answer for what drives your business
Commerce: # salesSubscription / SaaS: # subscribers
Marketplace: # transactions
Andy Young // @andyy // [email protected]
How’re we doing?
1. Identify top-level KPI2. Next, add nuance
Andy Young // @andyy // [email protected]
How’re we doing?
Nuance behind your top level KPI
E.g. for commerce: # salesNuance: average sale $; # customers
Andy Young // @andyy // [email protected]
How’re we doing?
1. Identify top-level KPI2. Add nuance3. Add drivers
Andy Young // @andyy // [email protected]
How’re we doing?
Drivers behind your top level KPI
E.g. for marketplaces: # transactionsDrivers: # suppliers, # customers
Andy Young // @andyy // [email protected]
How’re we doing?
1. Identify top-level KPI2. Add nuance3. Add drivers
4. Add funnel for these drivers
Andy Young // @andyy // [email protected]
How’re we doing?
1. Identify top-level KPI2. Add nuance3. Add drivers
4. Add funnel for these drivers
End up with AARRR
Andy Young // @andyy // [email protected]
How’re we doing?
1. Identify top-level KPI2. Add nuance3. Add drivers
4. Add funnel for these drivers
Put in a spreadsheet(Template Google Sheet: http://bit.ly/kpi-sheet)
Andy Young // @andyy // [email protected]
How’re we doing?
Put in a spreadsheet
- key KPI at the top, nuance and drivers below, finally the detailed funnel below for reference
- columns for weekly numbers, w/w growth
- review weekly- share with whole team
Andy Young // @andyy // [email protected]
Weekly/Monthly reporting
% week-on-week or month-on-month growthin your one metric that matters
Andy Young // @andyy // [email protected]
Tracking events
Andy Young // @andyy // [email protected]
Tracking events
Events vs. Properties vs. People
Events: something happenedProperties: something about what just happened
People: connect events to particular users- people can also have properties
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Track events from where?Client/app vs. server
Tracking events
Andy Young // @andyy // [email protected]
Tracking events
Tip #1: Choose easy-to-read and meaningful event names
Short!Pick a convention; stick to it
Omit superfluous words
“user_viewed_homepage”“Viewed homepage”
Andy Young // @andyy // [email protected]
Tip #2: Track each user based on a distinct ID
Don’t use email address -use autogenerated user_id from your own DB
Use aliasing to connect up events tracked pre/post signup
Tracking events
Andy Young // @andyy // [email protected]
Tip #3: Annotate your users with source data
referrer; utm tags; install tracking via AppsFlyer1. Track a signup event
2. Add as user properties3. Potentially also as properties to key events
Tracking events
Andy Young // @andyy // [email protected]
Tip #4: (Mixpanel specific) - People vs. Events
Mixpanel won’t let you query for userswho did particular events
So, our options:- Do this using your own DB
- Annotate your users (People) with properties for each key event
Tracking events
Andy Young // @andyy // [email protected]
Tip #5: Ecommerce/revenue tracking
Mixpanel/AppBoy etc havenative support for tracking revenue
Annotate your Purchase events with revenue data using the relevant properties for each platform
Tracking events
Andy Young // @andyy // [email protected]
Tip #6: Use a development project for testing
Tracking events
Andy Young // @andyy // [email protected]
Tracking the funnel
Start with the pirate metrics AARRR
Top of funnel: acquisition; signups/installsMid funnel: post-install events; engagement;
retentionBottom of funnel: purchase / monetisation.
Andy Young // @andyy // [email protected]
Tracking the funnel
Looking at each stage (AARRR) in aggregate is a good start
but it will only get you so far
the “truth” is much more nuanced
Andy Young // @andyy // [email protected]
Tracking the funnel
Users acquired via different channelswill have different behaviours
Different cohorts will have different experiences of your product
Different users will have been exposed to different A/B tests
Andy Young // @andyy // [email protected]
Tracking the funnel
Key: these are all properties of your users
UTM tags: source, medium, campaign, termsLanding pageSignup time
A/B test bucketsReferrer
Viral source
Andy Young // @andyy // [email protected]
Tracking the funnel
Annotate your users in your database/analytics system with these attributes
UTM tags: source, medium, campaign, termsLanding pageSignup time
A/B test bucketsReferrer
Viral source
Andy Young // @andyy // [email protected]
Other key metricsCAC, LTV, churn
Andy Young // @andyy // [email protected]
Other key metrics
Customer Acquisition Cost (CAC)how much you spend (on average) to acquire a
customer
Lifetime Value (LTV)How much revenue $$ an average customer
brings you in all time
Andy Young // @andyy // [email protected]
If yourLTV
is greater than yourCAC
then you’re in business
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If yourLTV
is greater than 3x yourCAC
then you’re in a good business
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CAC & LTV: nuances
Payback period: time to recoup CAC
Magnitude of your numberse.g. enterprise vs. social
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Calculating CAC
Simple approach: total spend / total signups
“50% of the money I spend on advertisingis wasted - the problem is I don't know which half”
- John Wanamaker
Eventual goal: calculate CAC per channel
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Calculating LTV
Problem!You don’t have a lifetime of data
We don't measure LTV - we estimate it
Extrapolate revenue curve over time
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Analysing your data
Andy Young // @andyy // [email protected]
Andy Young // @andyy // [email protected]
Andy Young // @andyy // [email protected]
Andy Young // @andyy // [email protected]
How not to do Metrics
Outdated information
Just 1 view of your data
Manual calculations
Bad metrics lead you astray
Andy Young // @andyy // [email protected]
Cohort analysis?
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Andy Young // @andyy // [email protected]
Andy Young // @andyy // [email protected]
Analytics = Knowledge
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Problems with Cohort Analysis
Time consuming
Delays to get the latest data
Inflexible
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Rolling Cohorts
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Andy Young // @andyy // [email protected]
Rolling Cohorts
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How?
Andy Young // @andyy // [email protected]
Use your existing database
Users
Learn SQL! It's not hard
Just need a slave database for analytics- “read replica” - i.e. a live copy
Andy Young // @andyy // [email protected]
Use your existing data
Users
SELECT COUNT(*) FROM users
WHERE created > ‘2013-07-01’
AND created < ‘2013-08-01’
Andy Young // @andyy // [email protected]
Use your existing data
SELECT COUNT(*) FROM users
LEFT JOIN sales USING (user_id)
WHERE users.created > ‘2013-07-01’
AND users.created < ‘2013-08-01’
AND sales.date < DATE_ADD(users.created, 1 MONTH)
Andy Young // @andyy // [email protected]
1. Automate running queries (every hour!)
2. Store the results in a simple database
3. Create a page to graph the results (HighCharts..)
Roll your own
Andy Young // @andyy // [email protected]
Andy Young // @andyy // [email protected]
Visitor numbersUsage / engagement
Revenue Conversion rates
Pirate metrics
Andy Young // @andyy // [email protected]
Good luck!