5. People love this part
(but that’s not always
a good thing!)
This is where things start to
fall apart.
No data, no learning.
Build Measure Learn seems so easy!
Everyone has great ideas,
right?
8. A good metric is:
Understandable
If you’re busy
explaining the data,
you won’t be busy
acting on it.
Comparative
Active Users vs.
Active Users/
month
Ratio / Rate
% MonthlyActive
Users
Behavior
Changing
You’ll know how
you’ll change your
business based on
what the metric tells
you.
10. Vanity vs. Actionable metrics
Vanity Actionable
Makes you feel good but
doesn’t change how
you’ll act.
“Up and to the right.”
Helps you pick a
direction and change
your behavior.
These are good.
11. Hits
A metric from the early, foolish days of the Web. Count
people instead.
Page views
Marginally better than hits. Unless you’re displaying ad
inventory, count people.
Visits
Is this one person visiting a hundred times, or are a
hundred people visiting once? Fail.
Unique visitors
This tells you nothing about what they did, why they
stuck around, or if they left.
Followers/friends/l
ikes
Count actions instead. Find out how many followers will
do your bidding.
Time on site, or
pages/visit
Poor version of engagement. Lots of time spent on
support pages is actually a bad sign.
Emails collected
How many recipients will act on what’s in them?
Number of
downloads
Outside app stores, downloads alone don’t lead to
lifetime value. Measure activations/active accounts.
12. Qualitative vs. Quantitative metrics
Qualitative Quantitative
Numbers and stats; hard
facts, but less insights.
Unstructured, anecdotal,
revealing, hard to
aggregate.
Warm and fuzzy. Cold and hard.
13. Lagging vs. Leading metrics
Lagging Leading
Historical metric that
shows you how you’re
doing: reports the news.
Number today that shows
a metric tomorrow:
makes the news.
Start here. Try and get here.
14. Examples of leadingmetrics
A Facebook user reaching 7 friends within 10 days of signing up.
(Chamath Palihapitiya)
A Dropbox user who puts at least 1 file in 1 folder on 1 device. (ChenLi
Wang)
A Twitter user who follows a certain number of people, and a certain
percentage of those people follow the user back. (Josh Elman)
A LinkedIn user getting to X connections in Y days. (Elliot Schmukler)
15. 1. People who install the Chrome extension
2. People who connect more than 1 social account
3. People who share 15 pieces of content in 7 days
CASESTUDY
Buffer discovered 3 leading metrics
17. EricRies’
Three engines
Virality
Make people
invite friends
How many they
tell, how fast they
tell them
Price
Spend revenue
getting customers
Customers are
worth more than
they cost to get
Stickiness
Keep people
coming back
Approach
Get customers
faster than you
lose them
Math that
matters
18. Sean Ellis’
Startup growth pyramid
Scale
growth
Stack the odds
Product/market fit
Decide what you sell
to whom, then prove
it.
Find a defensible
unfair advantage and
tweak it.
Step on the gas in
new markets,
products, channels.
19. Dave McClure’s Pirate Metrics
Acquisition
Activation
Retention
Referral
Revenue
How do your users become aware of you?
Do drive-by visitors subscribe, use, etc.?
Does a one time user become engaged?
Do users promote your product?
Do you make money from user activity?
20. Acquisition
Activation
Retention
Referral
Revenue
Unique Visitors
# of Pages
# of Clicks
Time on Site
Visitors by Source & Cost
Best Performing Source
Unique Visitors – Sign-up
Sign-up Conversion
New Account Creation
Opt-in Conversion
Email Click-Through Conversion
Logs in 3 Times of More
Returns to CompleteProfile
Returns to Share
Returns to Use XFeature
Length of Use
Shares via Email
Shares via Social
Posts to FB, LinkedIn, Twitter
Invites
Referral Conversion
Paid Conversion
Leads bySource
Leads to Sales Conversion
Activation to Sales Conversion
Sales
Revenue
Identify and track your key metrics – run experiments to improve
21. The Lean Analytics Stages
Empathy You’ve found a real, poorly-met need that a reachable
market faces.
You’ve figured out how to solve the problem in a way that
users will adopt, keep using and pay for.
Your users and features fuel growth organically and
artificially.
You’ve found a sustainable, scalable business with the
right margins in a healthy ecosystem.
STAGE GATE
Stickiness
Virality
Revenue
Scale
22. The Lean Analytics Stages
Empathy You’ve found a real, poorly-met need that a reachable
market faces.
You’ve figured out how to solve the problem in a way that
users will adopt, keep using and pay for.
right margins in a healthy ecosystem.
STAGE GATE
Stickiness
Virality
Revenue
Scale
Your users and features fuel growth organically and
artificially.
Most products (and
You’ve found a sussttaarintuabples,)scfaalialbaletbthusisinesswith the
point.
42. # of transactions (for
merchants)
# of nights booked sales
total time reading monthly active users monthly recurring revenue
(MRR)
Examples of OMTM