Hotspot ALPHA Camp_Setting Course with Metrics
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This document discusses the importance of metrics for businesses and provides examples of different types of metrics. It covers: - Why businesses need metrics to monitor health, make decisions, and set focus. - Examples of business, product, and marketing metrics like revenue, daily/monthly active users, click-through rate, cost-per-click. - How to establish success formulas using metrics at the business, product, and marketing levels. - The concept of a metric framework to define key events, tactics to drive those events, and metrics to measure performance for an AARRR strategy. - Important early stage metrics like retention rates and cohort analysis, as well as the idea of a "North
![36
Metrics helps you define whats most important
For Facebook -
Get any individual to 7 friends in 10 days
http://www.youtube.com/watch?v=raIUQP71SBU [20:45]
Chamath Palihapitiya
VP of Growth, Facebook](https://image.slidesharecdn.com/hotspot-alphacamp-metrics-20160510-160512042700/85/Hotspot-ALPHA-Camp_Setting-Course-with-Metrics-36-320.jpg)
![Early stage: what matters most for growth?
http://startupclass.samaltman.com/ - Lecture #6: Growth [1:45][9:50]](https://image.slidesharecdn.com/hotspot-alphacamp-metrics-20160510-160512042700/85/Hotspot-ALPHA-Camp_Setting-Course-with-Metrics-66-320.jpg)
![Post-product-market fit: how to use metrics?
http://startupclass.samaltman.com/ - Lecture #6: Growth [9:50]
North Star](https://image.slidesharecdn.com/hotspot-alphacamp-metrics-20160510-160512042700/85/Hotspot-ALPHA-Camp_Setting-Course-with-Metrics-71-320.jpg)
![73
http://startupclass.samaltman.com/courses/lec06/ [11:22]](https://image.slidesharecdn.com/hotspot-alphacamp-metrics-20160510-160512042700/85/Hotspot-ALPHA-Camp_Setting-Course-with-Metrics-73-320.jpg)
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Hotspot ALPHA Camp_Setting Course with Metrics
- 1. Bernard Chan Setting course with Metrics
- 2. I have an app idea. Should I quit my job and start the startup?
- 3. I want to promote my product. Should I advertise on FB or Google?
- 4. 4 METRICS
- 5. Why we need metrics?
- 6. Use of metrics - Monitor health of business - Make decision - Focus (North Star)
- 7. Use of metrics - Monitoring
- 8. 8 Make Decision Opinions are like assholes. Everybody's got one and everyone thinks everyone else's stinks Let the number speak.
- 9. When making decision, always ask Whats your objective?
- 11. 11
- 13. Nature of Metrics - Quantifiable - Measurable - Can be recorded an analyse Question Is weight a metrics?
- 14. Nature of Metrics - Quantity (How Many): No. of Downloads, Revenue, Daily Active Users (DAU) - Quality (How well): Click-thru-rate (CTR), Activation Rate, Margin
- 15. 15 Establish success formula on 3 levels 1. Business 2. Product 3. Marketing
- 16. Whats most important on Business Level?
- 17. 17 Visits Conversion per Visit Avg Order ValueX X Revenue= VCAR E-commerce: Business level metrics: E-Commerce
- 18. 18 Business level metrics: Digital Media Visits CPM (Yield) No. of Ad Units per PageX X Revenue= PAYR Digital Media: 1,000 Avg Page/VisitX Pageview
- 19. Unit economics Business model (revenue and cost) for a single customer Examples ARPU - Average Revenue Per User LTV - Lifetime value CAC - Customer acquisition cost
- 21. Mark is considering to acquire one of these messenger app: Whatsapp, Cubie, Snapchat. As Head of M&A you can ask these companies for 3 metrics. Which would you choose? Exercise A. No. of download B. Valuation C. No. of messages per user per month D. No. of messages handled total E. Monthly revenue F. Active user growth rate (monthly / quarterly / YoY) G. No. of monthly active users Read: WhatsApp vs. bull-shit metrics A way to think about Whatsapp staggering price
- 22. Product Metrics
- 23. Product Metrics Product Level Metrics tie directly with the product; it includes everything that relates to - Users - Usage - Core Product Value
- 24. 24 Button Click-Thru-Rate (CTR) No. of Downloads Daily Active User (DAU)Unique Visitors (UV) Page Views (PV) Monthly Active Users (MAU) Retention Rate Bounce Rate Session Length Download-to-Activation (%) DAU/MAU Product Metrics examples 2nd Day Retention Rate Message Sent per User per Day Total Monthly Post per Month Sell-thru-rate
- 28. Whats most important about Product Metrics
- 29. Answers to - Is our product delivering core product value? Are our users experiencing our core product value?
- 30. Be-careful with numbers Our app is opened 3,000 times per week. Lots of users like us! Question Whats wrong with this statement?
- 31. Measuring busi-ness is far easier than measuring business Seth Godin
- 32. What to measure? Whats your core product value?
- 33. Exercise You are product manager of mobile marketplace for 2nd goods. Your revenue model is transaction fee (%). What are two most important core product metrics in first year?
- 34. Exercise Phase 1: No. of Active Users No. of Listings Phase 2: Gross Merchandise Value (GMV) Avg. time from listed to sold (hrs)
- 36. 36 Metrics helps you define whats most important For Facebook - Get any individual to 7 friends in 10 days http://www.youtube.com/watch?v=raIUQP71SBU [20:45] Chamath Palihapitiya VP of Growth, Facebook
- 37. 37
- 39. Marketing Metrics Measure cost and effectiveness of your distribution channels In the internet world - we can measure everything
- 40. 40 Cost-Per-Click (CPC) Cost-Per-Acquisition (CPA) Return-on-Investment (ROI) Cost-Per-Download (CPD) Cost-Per-Milli (CPM) Marketing Metrics examples Return-on-Ads-Spend (ROAS) Share-of-Voice (SOV) Click-thru-rate (CTR) Conversion Rate No. of Clicks No. of Conversion Reach Frequency
- 41. 41 Metrics used by most US Marketers (2011) Digital marketers today are drowning in metrics, but they dont know which ones are important or how to connect the dots in a meaningful way that will drive marketing performance
- 43. Using Marketing Metrics - Whats my impact / ROI? - What do I learn about the channel? - What do I learn about our (potential) users?
- 44. Exercise You want to promote your landing page on Google, Facebook, and Yahoo. You have SGD 10,000 budget for each channel. Pricing: CPC How would you compare their effectiveness?
- 45. Hardest part about startup is choosing what not to do
- 46. Vanity vs. Actionable Metrics
- 47. a16z http://a16z.com/2015/08/21/16-metrics/16 Startup Metrics http://a16z.com/2015/09/23/16-more-metrics/16 More Startup Metrics
- 48. Analytics Tools: Google Analytics
- 50. The purpose of metrics Answer questions - Is my business healthy? Is my marketing effort (campaign) effective? Is my product solving my users problem? Delivering value? Make decisions - how can we do better? Set your company North Star
- 52. 52
- 53. Defining AARRR Strategy 1) Define key events for each AARRR step 2) Define tactics that drive these events 3) Define key metrics to measure performance / results Events Tactics Metrics
- 54. Lets try this
- 55. 1) Define key event for each step
- 56. 1) Define key event for each step Open an Account Upload first photo Upload more Share on FB 5.99 above 10GB
- 57. 2) Design tactics that drive these events Open an Account Upload first photo Upload more Share on FB 5.99 above 10GB FB ads Free 10GB + on boarding auto upload photos Easy share mechanism 5.99 above 10GB
- 58. 3) Measure results: metrics Visitor to Account Opening conversion rate (%) Download to activation (%) 2nd Day Retention avg. no. of share per user Paid users / all users (%) Free 10GB + on boarding auto upload photos Easy share mechanism 5.99 above 10GB FB ads
- 59. 59
- 60. Please design your campaign for
- 61. Please design your AARRR campaign for Uber Events Tactics Metrics In class workshop (30min)
- 62. 62 You can also Set Target Conversion % & Estimated Value
- 63. 63
- 64. 64
- 65. 65Source: Metrics for Early Stage Startups by @andreasklinger
- 66. Early stage: what matters most for growth? http://startupclass.samaltman.com/ - Lecture #6: Growth [1:45][9:50]
- 67. User Accounting
- 68. Retention - users vs. time
- 69. 69
- 70. Cohort analysis (measuring retention) Source: http://creativetraction.com/2014/06/06/cohort-analysis-new-customers-acquisition-costs/
- 71. Post-product-market fit: how to use metrics? http://startupclass.samaltman.com/ - Lecture #6: Growth [9:50] North Star
- 72. North Star The key metric(s) set the goal, purpose, and culture of your startup Let everyone in the company know what is most important to the company, in turn affect every business decision, product feature, resource investment, etc.
- 74. 74
- 75. 75 Confirmed Registered Users (CRU)
- 76. 76 Active Confirmed Registered Users (CRU)
- 77. ~ END ~ 油 http://alphacamp.tw