A quick review of Lean Analytics by Ben Yoskovitz and Alistair Croll. Presented at Singapore Lean Startup Circle.

1. Lean Analytics
Bringing Back the
Book Report
Presented at Singapore Lean Startup Circle
April 10, 2013

2. Hello!
● Product guy
● Mix of corp and startup
● 5+ years in SEA
● Yahoo Product Marketing
● Pollenizer SEA GM
● @sonofsarah

5. Lean 2.0 - The Growth of a
Management Science?
1980 Toyota
...
Dot Com Boom (1997 - 2000
Pre History
2000 Dot Com Crash (2000 - 2001)
Steve Blank - 4 Steps to the Epiphany (2005)
Lean Startup "coined" (2008)
2010
Lean Startup 1.0 The Lean Startup (2011)
The Lean Startup @ SXSW (2012)
The Lean Startup Conference (2012)
Lean Analytics (2013)
Lean Startup 2.0
Lean UX (2013)

6. Image Credit - http://brendanmarsh.com/lean/the-lean-startup-validation-board/

8. Lean Analytics in a Slide
CASE STUDIES and EXAMPLES
OMTM Benchmarking
Lean
Analytics
Business Model Types 5 Stage Lifecycle
Analytics for
Cohort Analysis A/B Testing Funnel Analysis
Lean
Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics

9. Refresh - Actionable Metrics
CASE STUDIES and EXAMPLES
OMTM Benchmarking
Lean
Analytics
Business Model Types 5 Stage Lifecycle
Analytics for
Cohort Analysis A/B Testing Funnel Analysis
Lean
Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics

10. Vanity Metrics Actionable Metrics
● Must go up over time ● Enables comparison
● NOT comparative ● Often a ratio
● Often a simple total ● Often cohort based
● Typically not granular ● Drives decision making
● Focused on story telling ● Can answer the question "did that
● Not directly tied to biz. health experiment work"?
EXAMPLES EXAMPLES
● Total downloads ● Conversion or retention rate
● FB likes ● Churn rate
● Registered users ● Shopping cart size

11. The 6 Startup Business Models
CASE STUDIES and EXAMPLES
OMTM Benchmarking
Lean
Analytics
Business Model Types 5 Stage Lifecycle
Analytics for
Cohort Analysis A/B Testing Funnel Analysis
Lean
Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics

12. The 6 Startup Business Models
E Commerce SAAS Free App
- CAC - CAC - CAC
- Conversion rate - Engagement - MAU
- Cart size - Free/paid conversion - Free/paid conversion
- Return purchase - Churn - Churn
- LTV (or Payback) - LTV - ARPU
Media UGC (Social) Marketplace
- MAU - MAU - Inventory (Supply)
- Engagement - Engagement - Buyers (Demand)
- PV (or equivalent) - % Creators - Search Effectiveness
- CTR - CTR - Ratings
- CPM - CPM
Takeaway - Know your funnel!

13. The Lean Analytics Stages
CASE STUDIES and EXAMPLES
OMTM Benchmarking
Lean
Analytics
Business Model Types 5 Stage Lifecycle
Analytics for
Cohort Analysis A/B Testing Funnel Analysis
Lean
Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics

14. The Lean Analytics Stages
SCALE
REVENUE
VIRALITY
STICKINESS
EMPATHY
Takeaway - Know your stage (but feel free to use other terms)

15. One Metric That Matters
CASE STUDIES and EXAMPLES
OMTM Benchmarking
Lean
Analytics
Business Model Types 5 Stage Lifecycle
Analytics for
Cohort Analysis A/B Testing Funnel Analysis
Lean
Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics

16. One Metric That Matters
● Pick one metric that is critical to biz health
● Focus the team around it (put it on screen!)
● Optimize the hell out of it
● Pick a new metric as biz grows and changes

17. Case Study - Wooboard OMTM

18. Case Study - Wooboard OMTM
PHASE METRIC TYPE METRIC
Is there a problem? User Interest Company sign ups
Do we have a solution? Engagement Woos per user
Is there a market? Revenue % of premium
conversions
This is a classic SaaS OMTM progression. See also Backupify.
● Phase 1 - site visits
● Phase 2 - trials
● Phase 3 - monthly recurring revenue
Takeaway - Pick an OMTM (or at least get data focused)

19. "The core idea behind Lean
Analytics is this: by knowing the
kind of business you are, and the
stage you are at, you can track and
optimize the One Metric that
Matters to your startup right now."
- B Yoskovitz and A Croll

20. Benchmarking
CASE STUDIES and EXAMPLES
OMTM Benchmarking
Lean
Analytics
Business Model Types 5 Stage Lifecycle
Analytics for
Cohort Analysis A/B Testing Funnel Analysis
Lean
Lean Principles Small Batch Production Startup Life Cycle Actionable Metrics

21. Some Benchmarking Examples
E Commerce SAAS Free App
Conversion Free trial - request card App size
- expect 2% - 2% try, 50% buy - stay below 50MB to avoid
- aim for 10%
download drop off
Cart abandonment Free trial - no card
- expect 65%! - 10% try, 25% buy App CAC
- Shoot for $.50 to $.75
Monthly churn - make sure CAC is less than
- < 5% for growth LTV!
- < 2% for scale
Conversion
Growth - free to aid - 2%
- increase customer revenue - In app purchases - 1.5%
by 20% a year
- upsell 2% of users/month
Takeaway - Lines in the sand are key to measuring success

22. Lean Analytics Truisms
● Know your funnel!
● Know where you're at in the lifecycle
● Establish data focus
● Set clear success metrics
● Instrument and track early!
● Make sure that you are allocating
resources to test a measurable hypothesis

23. THANK YOU