How to drive startup growth with AARRR metrics

@oxygenaccel
www.oxygenaccelerator.com
PAIN, LEAN & AARRR
Simon Jenner
CEO, Oxygen Accelerator
@simonjenner

@oxygenaccel
you are here
success

@oxygenaccel
deadpool road

Not Lean
I think the problem is X
The solution looks like this:
A website with social logon
Location based
HTML 5 mobile ready front end
Cloud based, multi continent hosting for resilience
Ability for users to like each others profiles
Monetization via adverts
We can launch in 6-9 months

YOU JUST CREATED A PRODUCT
THAT NO ONE CAN USE OR WANTS

Feel the pain
@oxygenaccel
Pain Threshold
Pain is felt
No pain is felt
Cure for cancer
Ferrari

In the beginning
@oxygenaccel
Lean manufacturing
- Toyota
2011

How to drive a startup
@oxygenaccel
Vision
Strategy
Product Optimization
Pivot
True North

STRATEGY IS BASED
ON ASSUMPTIONS
@oxygenaccel
Customers can be acquired for $1
Customers will use a mobile app
Each customer will invite 0.5 other customers
Customers wants to do X We can build in in 3-months
Advertisers will pay $3 per customer
There are 100,000 early adopters
We will attract customers via social media
Customers will come back to the app daily

LEAP of FAITHs
@oxygenaccel
Some assumptions are Leaps of Faith
iPod
-  People want to listen to music on the move
-  People will pay for music

KEY ASSUMPTION
@oxygenaccel
Value creation
Growth

BUILD, MEASURE,
LEARN
@oxygenaccel
BUILDLEARN
MEASURE
IDEAS
PRODUCTDATA

BUILD
@oxygenaccel
Build a key assumptions solving
Minimum
Viable
Product (MVP)

MEASURE
@oxygenaccel
Must be real data
What to measure – everything
AARRR – Pirate metrics

LEARN
@oxygenaccel
Test data with customers
Must impact business results

CYCLE FAST
@oxygenaccel
BUILDLEARN
MEASURE
IDEAS
PRODUCTDATA

PIVOT or
PERSEVERE
@oxygenaccel
Get enough data then make
Data based decisions
Customer based decisions

PIVOTS
@oxygenaccel
-  Zoom in pivot –more niche
-  Zoom out pivot – less niche
-  Customer segment pivot
-  Customer need pivot
-  Technology pivot
-  Business model pivot
-  Channel pivot

PIVOT
@oxygenaccel
sortedlocal.com
Assumptions
-  People wanted unskilled tasks doing (customers)
-  People wanted unskilled per hour work (sorters)
-  Attracting sorters was going to be difficult
-  Customers will want to use mobile
An unskilled tasks market place

PIVOT
@oxygenaccel
sortedlocal.com
MVP
-  Customer task led mobile app
-  Customer creates profile & then task “I need a cleaner on
Friday at 4pm to clean my flat”
-  Sorters respond via messaging system saying they will do it
& their price per hour
-  Customer selects a Sorter & pays

PIVOT
@oxygenaccel
sortedlocal.com
Data 1st Month
-  1st task posted was an advert not a task
-  600 Sorters signed up
-  20 Customers signed up
-  60% bounce rate on website
-  Zero tasks completed
-  Customers saying to many responses to task, takes to long to
message each sorter, trust issues with sorters

PIVOT
@oxygenaccel
sortedlocal.com
Pivot – Live for 2 weeks
-  Sorter led task market place
-  Each sorter has a profile
-  Customer searches by task & location (i.e. cleaning)
-  Customer selects Sorter from a list of profiles

PIVOT
@oxygenaccel
sortedlocal.com
Data – 2 weeks old
-  2000 customers signed up
-  31 tasks posted
-  5% bounce rate on website
-  Zero tasks completed (via site)
-  Transactions are being taken off-line
-  150+ clicks on Book now button on Sorter profile

GROWTH ENGINES
@oxygenaccel
- Sticky Engine
- Viral Engine
- Paid Engine

@oxygenaccel
LAUNCH

@oxygenaccel
AARRR – Pirate Metrics
Simon Jenner
CEO, Oxygen Accelerator
@simonjenner

AARRR
@oxygenaccel
- Acquisition - users come to the site from various channels
- Activation – users enjoy 1st experience
- Retention - users come back re-visit site
- Referral - users like it enough to refer others
- Revenue – users pay

AARRR
@oxygenaccel

ACQUISITION
@oxygenaccel
-  What?
-  SEO, Social Media, Blogs, Email
-  Affiliates, Direct, pay per click adverts
-  Measure?
-  Unique visits, visitor sources, user demographic,
cost per acquisition
CPA

ACTIVATION
@oxygenaccel
-  What?
-  Landing page optimization
-  UI/UX iterations
-  Value proposition
-  Measure?
-  Conversions (signup, download)
-  Bounce rate
-  Dwell time
CPA

RETENTION
@oxygenaccel
-  What?
-  Email reminders, notifications, newsletters
-  Notifications, popups
-  Re-target advertising
-  Measure?
-  Monthly active users (MAU)
-  Web re-visits
-  Email open %
-  Click though % from reminder/notification LTV

REFERRAL
@oxygenaccel
-  What?
-  Social sharing, discounts, invitations, competitions
-  Measure?
-  Viral Loop or virality ratio
-  Invite to signups (1:0.2)
CPA

REVENUE
@oxygenaccel
-  What?
-  In app purchases, subscription, one off payment
-  Measure?
-  Revenue per user
LTV

FUNNEL
@oxygenaccel
£££££
Visitors Clicks on more information button
Clicks on start free trial
Completes registration info
Verifies e-mail address
Logs on
Logs on twice
50,000
5,000 10:1 Funnel
2:1
100:1

KEY
@oxygenaccel
-  Cost Per Activation (CPA)
-  How much do you spend to activate each user
-  Calculated by acquisition spend divided by the number of
signups
-  i.e. spend £100 to get 10 users = £10 CPA
-  Life Time Value (LTV)
-  Revenue from customer over the length of time they stay with
you
-  Calculate by monthly revenue timed by average months
retained
-  i.e. £10 per month * 4 –months = £40 LTV
LTVCPA

@oxygenaccel
IF IT MOVES
MEASURE IT

@oxygenaccel
CONTACT
Simon Jenner
simon@oxygenaccelerator.com
@simonjenner

How to drive startup growth with AARRR metrics

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