HOW TO CHOOSE THE RIGHT METRICS FOR YOUR STARTUP?

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TheFamily

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BALTHAZAR DE LAVERGNE PARTNER @THEFAMILY

HOW TO CHOOSE THE RIGHT METRICS FOR YOUR STARTUP?

METRICS ✓ Slack has 2M daily active users✓ Deezer has 6.6M subscribers✓ 240 people attending this workshop on meetup.com

VANITY VS BUSINESS ✓ #sessions, applicants etc.✓ #transactions, active users etc.

COMMUNICATION ✓ Adapt depending on who you talk to✓ What should you hide ?

GROWTH IS THE METRIC

✓ DON’T GET DISTRACTED

✓ RUN AFTER IT

GROWTH FORMULA ✓ Compound growth✓ (Week N / Week 1) ^ ( 1/N ) - 1

MEET THE EXPONENTIAL

✓ 10 000 users✓ One year at 7% WoW—> 337 000✓ Two years —> 11 373 991

YOU WANT THAT ? ✓ What you measure gets better✓ So focus on one metric✓ WoW, MoM ?

WHAT METRIC SHOULD YOU CHOOSE ?

FIGURE OUT WHAT YOU AIM FOR

BEFORE P/M FIT ✓ Conversion rate, emails, pre-orders, …

AFTER P/M FIT ✓ DAU, MRR, #of transactions …

ORGANISE YOUR METRICS

✓ Choose the most downstream metric✓ Create your funnel

ECOMMERCE ✓ Point of contact (CTR)✓ Visitor (Bounce rate)✓ User (Conversion rate)✓ Buyer (Conversion rate)✓ Customer (Referral, Repeat)

:APP ✓ Point of contact✓ Download✓ Activation✓ Buyer✓ Ambassador

SAAS ✓ Point of contact✓ Demo / Trial✓ Converted User✓ UpSell

FOCUS ON TRANSFORMATIVE

IMPACT ✓ Especially in the beginning✓ No incremental✓ No A/B test

AARRR ✓ A simple framework✓ Don’t be fooled by the order

ACQUISITION ✓ It’s a growth problem✓ Anything should be considered✓ Organise your days

ACTIVATION ✓ You NEED that✓ % of conversion✓ Focus on value & experience

RETENTION ✓ Find the Ahah moment✓ Use a cohort✓ Focus on the important features

REFERRAL ✓ Word of Mouth, Incentive✓ Virality: K factor. K = i * c✓ K > 1

REVENUE ✓ Every good company makes money✓ MRR, ARR …

FOCUS ON RETENTION

BUSINESS METRICS

UNIT ECONOMICS

CAC

LTV

PAID VS FREE ACQUISITION

✓ Margin ? ✓ Time needed ? ✓ Segmenting ?✓ Scale ?

GOOD METRICS ? ✓ CTR✓ Email opening rate✓ Landing page conversion rate✓ Retention (Before/After P/M Fit)✓ Growth ✓ #of users

SEE YOU SOON!

LOVE.

THEFAMILY.CO

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