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(or flail around blindly...it’s up to you)Measure What MattersBen Yoskovitz@byosko
I am aproduct guyentrepreneurbloggerangel investorhttp://instigatorblog.com
What I’ve learnedIt’s easy to get zombified.Recruitment sucks.Startup accelerators are fun.Eventually you get it right.TBD.
I’m not an analytics expert.
Or a data scientist.
http://leananalyticsbook.comBut I wrote a book onanalytics anyway.
Why did I write it?h"p://www.flickr.com/photos/horiavarlan/4290549806/sizes/l/in/photostream/
We’re all liars.
The basics of Lean StartupEveryone’s idea isthe best right?People lovethis part!(but that’s not always agood thing)This is...
What I Hope You Get From Ith"p://www.flickr.com/photos/romtomtom/4382603005/sizes/o/in/photostream/
Follow the Lean model, and itbecomes increasingly hard to lie,especially to yourself.The importance of intellectual honesty
Using your gut properlyInstincts are experiments.Data is proof.
Better decision making abilitiesEveryone has data, the key isfiguring out what pieces willimprove your learning anddecision...
FocusDon’t chase shiny objects. Youmight succeed without focus, butit’ll be by accident.
Measure what matters1 What makes a good metric?2 Types of metrics3 Analytical superpowers4 Lean Analytics framework5 The O...
What Makes a Good Metric?h"p://www.flickr.com/photos/artnoose/2263480871/sizes/l/in/photostream/
Analytics is the measurement ofmovement towards yourbusiness goals.What is analytics?
comparativewww.naturalhealth365.com	  &	  www.orangeclaire.com
understandablewww.speakingpracEcally.com
ratio or rateh"p://www.flickr.com/photos/pyth0ns/4816846174/
changes your behaviorh"p://www.flickr.com/photos/68001867@N00/426536440/sizes/z/in/photostream/
If it won’t changehow you behave,it’s abadmetric.If a metric won’t change howyou behave, it’s ah"p://www.flickr.com/photos/...
h"p://www.flickr.com/photos/maImaIla/3822631755/Types of Metrics
Warm and fuzzy. Cold and hard.Unstructured,anecdotal,revealing, hard toaggregate.Numbers and stats;hard facts but lessinsi...
Discover qualitatively.Prove quantitatively.Quantitative vs. qualitative data
Do hosts withprofessionalphotography getmore business?Airbnb experiments...
Professional photography helps Airbnb’s businessGut instinctConcierge MVP20 photographers in the fieldTest resultsTwo to th...
5,000 shoots / month in Feb. 2012
Makes you feelgood but doesn’tchange how you’llact.Helps you pick adirection andchange yourbehavior.“Up and to the right.”...
HitsA metric from the early, foolish days of the Web.Count people instead.Page viewsMarginally better than hits. Unless yo...
Speculative, tries tofind unexpected orinteresting insights.Predictable, keepsyou abreast ofnormal, day-to-dayoperations.Th...
Pivoting from friends to moms•Started as Circle of Friends•Leveraged Facebook early•Grew to 10M usersBut engagement sucked!
Moms are crazy!(in a good way)Engagement solved!• Messages to one another were on average 50% longer.• 115% more likely to...
Historical metricthat shows youhow you’re doing:reports the news.Number today thatshows a metrictomorrow: makesthe news.Tr...
h"p://www.flickr.com/photos/bloke_with_camera/401812833/sizes/o/in/photostream/Analytical Superpowers(or what the heck is g...
110100100010000Ice cream consumption DrowningsJan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
SummerIce creamconsumptionDrowningCorrelatedCausalCausalTwo variables thatchange in similar ways,perhaps becausethey’re li...
Correlation lets youpredict the futureCausality lets youchange the future“I will have 420 engaged usersand 75 paying custo...
Lean Analytics Frameworkh"p://www.flickr.com/photos/ikhlasulamal/2331176652/
Your Business + StageWhat businessare you in?What stageare you at?•E-Commerce•SaaS•Free Mobile App•2-Sided Marketplace•Med...
business models
The SaaS CustomerLifecycleCustomer Acquisition Costpaid direct search wominherentviralityVISITORFreemium/trial offerEnroll...
•Stage: Revenue / Scale•Model: SaaS (Paid)•Recruitment marketing andassessment software•Switched business models frommonth...
10xrevenue increaseoff of 3x in salesvolume“People don’t do subscriptions for haircuts, hamburgers,and hiring. You have to...
h"p://www.flickr.com/photos/86791111@N00/3126955746/don’t just followthe leader
lean analytics stages
EMPATHYSTICKINESSGROWTHRATEVIRALITYREVENUESCALELean AnalyticsStagesI’ve found a real, poorly-met need thata reachable mark...
•Stage: Scale•Model: SaaS•Popular social sharing application•Focused primarily on customeracquisition•Charged from day one...
20%60%20%2%of visitors created an account(acquisition / Empathy)of sign-ups returned in the 1st month(engagement / Stickin...
skip steps at yourown risk
One MetricThat Matters.How It All Comes TogetherThe business you’re inE-Com SaaS Mobile 2-Sided Media UCGEmpathyStickiness...
Choose only one metric anddraw a line in the sand.Putting the pieces together...
•Stage: Revenue•Model: SaaS (Freemium)•Paper and digital collaboration•180,000 users•Paid churn is their One MetricThat Ma...
• Target < 4% paid churn (hitting 2% latelyon a monthly basis)•Anything over 5% means they don’t havea business that will ...
• Can we acquire more valuable customers?•What product features can increase engagement?• Can we improve customer support?...
Some interesting benchmarksGrowth5% / week (revenue or activeusers)Churn2% / monthEngaged visitors30% monthly users10% dai...
Lean Analytics cycleh"p://www.flickr.com/photos/jrodmanjr/4728457415/
Identify a key business problem,pick the OMTM, draw a line in thesand, and get started.Time to experiment
Draw a new linePivot orgive upTry againSuccess!Did we move theneedle?Measure theresultsMake changes inproductionDesign a t...
Thank you.byosko@gmail.com@byoskoORDER!follow me.instigatorblog.comleananalyticsbook.comsubscribe.email me.
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