Product roadmap statistics are your road signs
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Transcript of Product roadmap statistics are your road signs
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Product RoadmapStatistics are your road signs
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Who am I?
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Why road signs?
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You won’t know which way to go without them
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PS.There is no Sat Nav, GPS or Google Maps to lead you directly home
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The goal of every business
Time
Revenue
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How to know where you are on this graph?
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By gathering data and analyzing it!
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Why?
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1 simple reason:
Data doesn’t lie!
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Divide the roadmap into 3 phases
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Divide the roadmap into 3 phases
Product Market Fit
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Divide the roadmap into 3 phases
Initial traction
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Divide the roadmap into 3 phases
Growth
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CAC, MRR, ARPU, LTV, RoI, COGS, NPS
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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)
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Product Goals
Profitability
Cash
Growth
Other (ie Market Share)
Revenue (MRR)
Months to recover CAC
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Key guideline for startups
LTV 3x CAC<
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Key guideline for startups
Time to recover CAC
12 months<
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How to look at profitability #1 Microeconomics
ProfitabilityMicroeconomics (per customer profitability)
CAC
LTV
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How to look at profitability #2 Overall profitability
ProfitabilityOverall
Profitability (Accounting)
Revenue
Expenses
COGS
MRR
Services Revenue
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How to look at profitability #3 Per employee
Profitability Profitability per employee
Revenue per employee
Expenses per employee
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Drilling down to MRR
MRR
New customers from sales
funnel
Churn
Total no. of customers
ARPU
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Drilling down on Microeconomics
$
Time
LTV
CAC
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What’s the biggest startup killer?
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The cost of acquiring users (CAC)
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Are you profitable?
Customer Profitability
LTV
CAC
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What is LTV?
LTV
ARPU
Cust Average Lifetime
Cost to serve
% Churn rate
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LTV = ARPU x Average Lifetime of a customer - COGS (Cost to serve them)
How to calculate LTV
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What is CAC?
CAC
# closed deals
Total cost of sales &
marketing
Sales funnel convertion
metrics
Marketing program
cost
Level of touch
required
Personnel cost
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CAC = Total cost of sales&marketing / Number of deals closed
How to calculate CAC
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How to put this data into action?
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Old School funnel
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What did the marketing normally do??
Lead acquisition
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Who here knows who is Dave McClure?
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What are Pirate Metrics?
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Pirate Metrics
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Why Pirate Metrics? (AARRR!!!)
AARRR
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Users come to your site/product from various sources
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Examples of Acquisition Tactics
● SEO● SEM● PR● Social● Content
Marketing● Biz Dev● Webinar
● Referrals● Free trial● Newsletter● Guest post● Outreach● Q&A
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Disclaimer:You don’t need huge volumes to acquire customers. If you have a few hundred of very targeted visitors every month - its fine!
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Users come to your site/product from various sources
Users enjoy 1st visit: ‘happy’ user experience and leave contact info
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Examples of Activation Tactics
● Social● Content
Marketing● Newsletter
● Lead nurturing● On-boarding● Screencasts
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Difference between B2B & B2C
Example of a B2B Activation● Website form● RFP
Examples of B2C Activations● Create account● Buy something● Leave email
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Users come to your site/product from various sources
Users enjoy 1st visit: ‘happy’ user experience
Users come back, visit the site multiple times
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Examples of Retention Tactics
● Social● Content
Marketing● Newsletter
● Lead nurturing● On-boarding● Screencasts
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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
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Examples of Revenue Tactics
● Scarcity● Discount● Annual plan● Up-sells
● Cross-sells● Evangelism● Guarantees● Support
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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
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What should be the job of marketing?
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Each source should have a dedicated funnel
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Example1000 (100%)
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Example
100 (10%)
1000 (100%)
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Example
50 (5%)100 (10%)
1000 (100%)
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Example
20 (2%)
50 (5%)100 (10%)
1000 (100%)
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5 (0,5%)
Example
20 (2%)
50 (5%)100 (10%)
1000 (100%)
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Friends, press, school, SEO, referral
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Add 5 or more friends
FacebookFriends, press, school
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You come back to see what are your friends doing
Add 5 or more friends
Friends, press, school
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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
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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
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Friends, press, SEO, referral
Dropbox
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Set up your account to store and share files
DropboxFriends, press, SEO, referral
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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
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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
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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
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Friends, press, SEO, referral
Uber
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Your first ride (most likely for free)
UberFriends, press, SEO, referral
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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)
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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)
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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)
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PS. My referral code is atbe5wgge
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SEO, Social Media, Referral, Influencers
eStore with socks
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Unique sock patterns & great delivery terms
eStore with socksSEO, Social Media, Referral, Influencers
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Remarketing kept stalking you until you really wanted these socks
eStore with socks
Unique sock patterns & great delivery terms
SEO, Social Media, Referral, Influencers
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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
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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
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SEO, Social Media, Referral, Blog
CRM
![Page 93: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/93.jpg)
Great features, many integrations, good pricing
CRMSEO, Social Media, Referral, Blog
![Page 94: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/94.jpg)
You left your email and the nurturing campaign together with remarketing
CRM
Great features, many integrations, good pricing
SEO, Social Media, Referral, Blog
![Page 95: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/95.jpg)
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
![Page 96: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/96.jpg)
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
![Page 97: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/97.jpg)
SEO, Social Media, Referral, Blog, Ads
Apple Equipment Fixing Service
![Page 98: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/98.jpg)
Good reputation, they can fix my problem, pricing is within my range
Apple Equipment Fixing ServiceSEO, Social Media, Referral, Blog, Ads
![Page 99: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/99.jpg)
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
![Page 100: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/100.jpg)
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
![Page 101: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/101.jpg)
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
![Page 102: Product roadmap statistics are your road signs](https://reader035.fdocuments.us/reader035/viewer/2022070520/58f0f41f1a28ab877e8b45f9/html5/thumbnails/102.jpg)
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