This document discusses Lean startup methodology and key performance metrics for startups. It emphasizes the importance of testing assumptions through building minimum viable products, measuring key metrics, and learning from customer feedback to iterate quickly through a process of continuous experimentation and pivoting if needed. The document also introduces the AARRR framework for tracking acquisition, activation, retention, referral, and revenue metrics.
4. 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
8. How to drive a startup
@oxygenaccel
www.oxygenaccelerator.com
Vision
Strategy
Product Optimization
Pivot
True North
9. STRATEGY IS BASED
ON ASSUMPTIONS
@oxygenaccel
www.oxygenaccelerator.com
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
20. PIVOT
@oxygenaccel
www.oxygenaccelerator.com
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
An unskilled tasks market place
21. PIVOT
@oxygenaccel
www.oxygenaccelerator.com
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
An unskilled tasks market place
23. PIVOT
@oxygenaccel
www.oxygenaccelerator.com
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
An unskilled tasks market place
35. KEY
@oxygenaccel
www.oxygenaccelerator.com
- 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