Lean analytics for startups - Leweb2010

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    18-Sep-2014

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20-minute speed-run presentation on what metrics and web analytics information startups need to collect. Focuses on companies with a lean methodology, and the kinds of data that will actually help them achieve product/market fit before the money runs out.

Transcript

Lean analytics for startupsWednesday, December 8, 2010@acroll(if you have questions)Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Lean Not leanWednesday, December 8, 2010Ries, Mclure, and Blankare often misquoted.Wednesday, December 8, 2010They never said fail faster.Wednesday, December 8, 2010Instead:Learn and adapt.Wednesday, December 8, 2010Waterfall, agile, and leanThree approaches for three situations.Wednesday, December 8, 2010Waterfall approachYou know the problem and the solution.Wednesday, December 8, 2010Known set of requirementsKnown ways to satisfy themSpec Build Test LaunchWednesday, December 8, 2010Agile methodologiesKnow the problem, find the solutionWednesday, December 8, 2010Known set of requirementsUnclear how to satisfy themBuild Test LaunchViable?ProblemstatementAdjustSprintsUnknown set of requirementsWednesday, December 8, 2010Most startupsDont even know what problem they solve.Wednesday, December 8, 2010Possible problem spacePossible viable offeringTrial startupPossible viable offeringTrial startupPossible viable offeringTrial startupPossible viable offeringTrial startupYou are herePIVOTWednesday, December 8, 2010All startups are lean at first.Which has some interesting consequences.Wednesday, December 8, 2010Getting features right matters less.Knowing whats not working, quickly, matters more.Wednesday, December 8, 2010We should matters less.What if matters more.Wednesday, December 8, 2010Your roadmap matters less.Parallel experiments matter more.Wednesday, December 8, 2010User groups and surveys matter less.Real-world adoption & usage analysis matters more.Wednesday, December 8, 2010Business plans matter less.Business models matter more.Wednesday, December 8, 2010http://www.flickr.com/photos/tinfoilraccoon/197640807/Wednesday, December 8, 2010CostRevenue Lemonade( ) x Units sold + tipsLemon + cups + sugar( ) x Units madeMarkers + cardboard( ) x Signs madeStaffing( ) x Hours workedProfit!Wednesday, December 8, 2010Wednesday, December 8, 2010http://www.flickr.com/photos/ethanhein/3207831470/#/(maybe not that fun a game)Wednesday, December 8, 2010Clouds and analyticsIts never been a better time to start a company.Wednesday, December 8, 2010Clouds make experimenting easy, avoid upfront dilution.Analytics make experimenting smart & fast.Wednesday, December 8, 2010http://www.flickr.com/photos/ecastro/3053916892/I love to talk about clouds(but not today)Wednesday, December 8, 2010Im going to focus on the other partWhat to watch on your website, if youre a startup.Wednesday, December 8, 2010So what could we watch?Wednesday, December 8, 2010Analytics(what did they do on the site?)Competition(what are they up to?)Performability(could they do what they wanted to?)VoC(what were their motivations?)Usability(how did they interact with it?)Community(what were they saying?)Hard dataSoft dataComplete Web MonitoringWednesday, December 8, 2010http://www.flickr.com/photos/itsgreg/446061432/Analytics is the measurement of movement towards your business goals.Wednesday, December 8, 2010NEWVISITORSGROWTHBOUNCERATELOSSCONVERSIONRATEGOALVALUExTIMEONSITEPAGESPERVISITNUMBEROF VISITSSEARCHESTWEETSMENTIONSADS SEENATTENTION ENGAGEMENT CONVERSIONWednesday, December 8, 2010ConversionsVisitsShopping cartPayment optionsWednesday, December 8, 2010ConversionsVisitsShopping cartPayment optionsKPIsConversionrateBouncerateWednesday, December 8, 2010http://www.flickr.com/photos/mrmoorey/160654236Wednesday, December 8, 2010http://www.flickr.com/photos/duncan/1252272164/Wednesday, December 8, 2010http://www.flickr.com/photos/intherough/3573333256/Wednesday, December 8, 2010http://www.flickr.com/photos/jetheriot/648950773/Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010Impact of page load time on average daily searches per user-0.60%-0.45%-0.30%-0.15%0%50ms pre-header 100ms pre-header 200ms post-header 200ms post-ad 400ms post-headerWednesday, December 8, 2010Wednesday, December 8, 2010Impact of additional delay on business metrics-5.00%-3.75%-2.50%-1.25%0%50 200 500 1000 2000Queries/visitor Query refinement Revenue/visitorAny clicks SatisfactionWednesday, December 8, 2010Shopzillas makeoverWednesday, December 8, 20105-12%Wednesday, December 8, 2010Wednesday, December 8, 2010Traffic levels02,2504,5006,7509,000Optimized Unoptimized4,7408,505Total number of visitsVisitor experienceWednesday, December 8, 2010Bounce rate05101520Optimized Unoptimized14.35%13.38%Visits that bouncedVisitor experienceWednesday, December 8, 2010Average time on site08162331Optimized Unoptimized23.8330.17Time on site (minutes)Visitor experienceWednesday, December 8, 2010Pages per visit0481216Optimized Unoptimized11.0415.64Average pages seenVisitor experienceWednesday, December 8, 2010Conversion rateand order value05101520Conversion rate Order value5.5116.07Dierence due to optimizationWednesday, December 8, 2010Community managementHuggingBunniesRetweetsFriends!Wednesday, December 8, 2010ConversionsVisitsShopping cartPayment optionsUnpaid search CommunitymentionsEmailcampaign Banner ad Google PageRank Sessions-to-clicksratio Cost of ads(CPM) Clickthroughrate Open rate Opt-out rate?Wednesday, December 8, 2010But theres a danger:vanity metrics.Wednesday, December 8, 2010Wednesday, December 8, 2010So what should you watch?The lean analytics shortlist.Wednesday, December 8, 2010In a startup, the purpose of analytics is to iterate to a product/market fit before the money runs out.If you remember only one thing...Wednesday, December 8, 2010Message reachInfrastructure healthMarket sentimentUser engagementBusiness modelSustainabilityViral coefficientAmplificationPerformabilityCustomer researchCommunity sentimentTime since last visitCore goalsExtended funnel abandonmentMovement towards goalsCost per engaged visitorPeak to average ratioMinimum sustainable burnWednesday, December 8, 2010Viral coefficientOn average, for each message they hear, how many people does someone tell?1Wednesday, December 8, 2010------------------------------------------------------Get your free private email at http://www.hotmail.com------------------------------------------------------Wednesday, December 8, 2010!Wednesday, December 8, 2010v 1, pt =p0 (1 vt+1) / (1 v) + p0http://robert.zubek.net/blog/2008/01/30/viral-coefficient-calculation/Wednesday, December 8, 2010How well are messages being amplified?2Wednesday, December 8, 201050% 75% 100% 50% = 42 3 1 = 614.5Downstream reach (aggregate followers)Amplification chance(how relevant the content is + what the recipient thinks of the sender)25%.550%250%1 = 3.5Wednesday, December 8, 2010Repurposing(spread to othercommunities)Amplification(virality andmessage spread)ConversionsVisitsShopping cartPayment optionsSeed (startingcommunity)Reach (impressions)Wednesday, December 8, 2010Viral message spreadConversionsVisitsShopping cartPayment optionsReach (impressions) Emphasis on getting viral ratio above 1(Retweeting, Fan, Email forward, Reddit upvote, other loops)Wednesday, December 8, 2010Megablogger proponentsConversionsVisitsShopping cartPayment optionsSeed (startingcommunity)Reach (impressions)Emphasis on convincing highly-followed, highly acted-upon seed group to spread the word.Wednesday, December 8, 2010A call to actionConversionsVisitsShopping cartPayment optionsReach (impressions)Emphasis on maximizing impression-to-click ratio within the communityWednesday, December 8, 2010Goal attainment: funnel700,000s1,642150RT3271015x $100x $20x $720Seed ratio:35,000:1FollowersVisitors:0.23%Conversions:1.95%Revenues:Average: $39.54Median: $20Total: $1,005Amplification: 2.9%2 Repurposing2,000Wednesday, December 8, 2010How performable are we?Health of the infrastructure (uptime, latency)3Wednesday, December 8, 20101 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1605,000Unique page views>4s or error2-4sWhat do visitors think of us?Both on the site (VoC) and in the world (community monitoring)4&5Wednesday, December 8, 2010Wednesday, December 8, 2010Wednesday, December 8, 2010How engaged are users?Time since last visit, as a histogram, not an average, compared to baselines.6Wednesday, December 8, 2010Days since last visit1200100080060040020001 2 3 4 5 6 7 8 9Days since last engagementJanuary FebruaryDisengaged(>10 days)2500020000150001000050000Number of usersWednesday, December 8, 2010Core goals driving the businessPick the 3-4 tasks youve set for users. Always know what these are and why they correlate to business growth.7Wednesday, December 8, 2010CostRevenue Lemonade( ) x Units sold + tipsLemon + cups + sugar( ) x Units madeMarkers + cardboard( ) x Signs madeStaffing( ) x Hours workedProfit!(Remember the model?)Wednesday, December 8, 2010Extended funnel abandonmentNot just on the site: Email open rate8Wednesday, December 8, 2010Wednesday, December 8, 2010In the last build, what moved us towards & away from goals?Requires knowing the goals and the key features added9Wednesday, December 8, 2010Cost per visitorOperations costs per site visitor10Wednesday, December 8, 2010(this had better be greater than the revenues and conversion rate.)Wednesday, December 8, 2010Peak-to-average ratioHow much busier are you at busy times?What premium do you pay for that surplus?Can you decommission well?11Wednesday, December 8, 2010http://community.microsoftadvertising.comWednesday, December 8, 2010Wednesday, December 8, 2010Minimum sustainable burn12Wednesday, December 8, 2010http://www.flickr.com/photos/dougww/833127501/Wednesday, December 8, 2010Message reachInfrastructure healthMarket sentimentUser engagementBusiness modelSustainabilityViral coefficientAmplificationPerformabilityCustomer researchCommunity sentimentTime since last visitCore goalsExtended funnel abandonmentMovement towards goalsCost per engaged visitorPeak to average ratioMinimum sustainable burn12thingstowatchWednesday, December 8, 2010Thanks!alistair@bitcurrent.com@acrollwww.yearonelabs.comwww.rpmmtl.comwww.watchingwebsites.comwww.bitcurrent.comwww.human20.comWednesday, December 8, 2010