A: Focus on Critical Few Actionable Metrics If you learn something about your experiments, share it with your team! Dave McClure, a Silicon Valley investor and founder of 500 Startups, developed the AARRR framework. Marrying Design & Development: a Match made in Heaven, not Hell (Jeff Veen & Searching for Users: SEO as an Engine for Customer Acquisition (Stephan Spenc Scalability for Startups (Frank Mashraqi, Startonomics SF 2008), Startonomics: Simple, Actionable Metrics for Startup Success. Finally, as you learn what is and isnt working at each level of your AARRR framework, you and your team can start looking for ways to adjust your product management and marketing initiatives accordingly. The user likes your product so much he refers other new users. Angel: Mashery, Mint.com, SlideShare, Twilio Acquisition: getting users come fro. To determine if your experiments are successful, ask yourself if they confirm or disprove your initial hypotheses, and to what degree. Y Combinator, TechStars, 500 Startups Result better or cheaper or faster than the available competition. Here are various business model funnels using just 3 events: After youve defined your measurement plan and ideated experiments, you need to prioritize them. VC Investors Apply resources to things that work and learn from the ones that dont. Define business objectives, problems challenges and opportunities. Startups need to focus on real numbers. Qualitative Discovery, Quantitative Validation RETENTION Emails & Alerts Blogs, Content System Events & Time-based Features, (note: *not* actuals; your mileage may vary) $2 3% Email Open / RSS view -> Clickthru Retention $10 1% Refer 1+ users who activate Referral $3 2% Refer 1+ users who visit site Referral $5 2% Repeat Visitor (3+ visits in first 30 days) Retention $25 1% User generates break-even revenue Revenue $3 2% Acct Signup (includes profile data) Activation $1 5% Email/Blog/RSS/Widget Signup (anything that could lead to repeat visit) Activation User generates minimum revenue Happy 1 st Visit (views X pages, stays Y sec, Z clicks) Doesn't Abandon (views 2+ pages, stays 10+ sec, 2+ clicks) Visit Site (or landing page, or external widget) User Status $5 2% Revenue $.25 30% Activation $.05 70% Acquisition $.01 100% Acquisition Est. better Usage Activation & Retention (AUX) Define business objectives, problems challenges and opportunities. (2+ pages, 10+ sec, 1+ clicks = dont abandon) Social (Facebook, Twitter, SnapChat, LinkedIn, TenCent) 5-25 person team Five-step model for creating a metrics framework for your business and customers, and how to apply it to your product and marketing efforts. :), LinkedIn: https://www.linkedin.com/in/dannyjpwilliams, Portfolio: http://www.dannyjwilliams.com/, Check out thoughts from Venture for Canada and its Fellows here:https://medium.com/@VentureforCanada, Product Designer @Stripe | Prev @Shopify | UX Instructor @YorkUniversity @GA | Fellow Alum @Venture4Canada, Dave McClures Startup Metrics for Pirates, one unfiltered, Master View and a Test View is considered best practice for Google Analytics. Select & Focus on Best-Performing Channels & Themes Landing Pages For a deeper dive on experimentation, growth guru Sean Ellis has a great presentation on High Tempo Testing with a Growth Model: Many of your improvement experiments wont work and some might be out-of-the-park successes. I want to be a product manager when I grow up. Broaden your product management knowledge with resources for all skill levels, The hub of common product management terms and definitions, Quick access to reports, guides, courses, books, webinars, checklists, templates, and more, Watch our expert panels share tricks of the trade in our webinars. Metrics? Campaigns, They're what allow us to be constantly improving, constantly pushing forward. at the FounderX conf (Mountain View, May 2016) Dave McClure Follow Investor at Practical Venture Capital Advertisement Advertisement 500 Startups Trouble is, theyre often made without all the facts particularly in the land of startups, where speed and execution are the only things keeping you alive. Note: Its important in this stage that your team determines an estimated dollar amount for each category of user behavior. Each one of these five metrics is critical for startups, and for businesses in general. Trouble is, they're often made without all the facts particularly in the. Beating The Series A Crunch (thru clean living & growth hacking :), Startup Metrics 4 Pirates (London, March 2011), Startup Metrics for Pirates (Twiistup, Jan 2010), Startup Metrics for Pirates (Sept 2010, Vancouver). Instrument Basic Dashboard, Conversion Metrics note: basically same as FOWA talk, minor update added slide 17. Here are a few examples of each: In the AARRR framework, acquisition refers to all of the channels you use to introduce people to your product. Be sure to write it down and engage your team when drafting it. Marketing time & resources Measure, Iterate. Affiliates Users, Call-to-Action Referral Do users like the product enough to tell others about it? DATA Activation Homepage / Landing Page Product Features 1. Customer Needs / Benefits Customer Profle Data (email, connect, profile) Winning = Users, Revenue, Profit? HubSpot for Startups | Sample Pitch Deck Template, The investor presentation we used to raise 2 million dollars, Startup Metrics For Pirates - Copied by Dave McClure, Startup metrics for pirates long version463, Startup Metrics For Scottish Pirates (AARRR!) As McClure shows in his blog introducing the AARRR pirate metrics framework, your first step is to identify conversion metrics for each of these five user behaviors. Five-step model for creating a metrics framework for your business and customers, and how to apply it to your product and marketing efforts. Revenue $$$ Building Product => Cheaper, Faster, Better Hypothesize Customer Lifecycle Here is a visual representation of what the funnel looks like: To make a framework like pirate metrics work, you need to do 5 things: Define, Measure, Analyze, Improve and Control. 1. Assuming your product, app, or content is digital and online; you can use tools such as Google Analytics or KISSmetrics to capture much of this information. (Madrid, Oct 2016), Farming Unicorns: Building Startup & Investor Ecosystems, 500 Startups #Batch17 #DemoDay: "Beauty and the GEEK", Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016). Low-Hanging Fruit: MakerBot (acq SSYS, $400M) Measure conversion to target customer actions The user pays you. Q: What Features to Build? Improve product/service based upon findings from analysis. Search (Google, Baidu) McClure saw that many startup companies were easily distracted by superficial metrics, such as likes on social media. Dave McClure Follow Investor at Practical Venture Capital Advertisement Advertisement - Retention (visits over time, cohort behavior) (Search, Social, Mobile), CEO % Est. NS-CUK Seminar: S.T.Nguyen, Review on "Improving Graph Neural Network Express Module II Partition and Generating Function (2).ppt, Hackolade Tutorial - part 1 - What is a data model, Pirates: AARRR! The RealReal Every day companies are required to make mission-critical decisions. BUILT TO LEARN This is the core feedback loop that powers startups. Engineer: Johns Hopkins88, BS Eng / Applied Math, 500? GrabTaxi ($1B+) make sure youre moving in optimal direction 2 local max Avg Txn Value (ATV), Ann Rev Per User (ARPU), Cust Lifetime Value (CLV) Before you can measure success, you have to understand your companys objectives. The 5 stagesAARRR: Acquisition: prospective users visit your site from different channels. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains 3. % SEO Progress Features (Less = More) 5% $1 Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, (note: *not* actuals your mileage may vary) Stage Conversion Status Conv. Networks Future Milestones: Profitable/Sustainable, Exit Options. Iterative Product & Marketing Decisions based on Measured User Behavior, Startups If Users Use Your Product Then Its GOOD. 500 Startups A measurement plan is a great way to do this. PMF = F(Customer, Solution, Alternatives*) Startup Metrics For Scottish Pirates (AARRR!) 15% $.25 Achieve High Cust Value + Low ACQ$ @ Scale, Viable Product ? Retention Users Come Back; Multiple Visits Top 10 - 100 words Dave McClure Follow Investor at Practical Venture Capital Advertisement Advertisement Increase Conversion (stop iterating when increase decelerates) (Startonomics SF 2008), Startup Metrics for Pirates (SeedCamp 2008), Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008), Startup Marketing Slides from Lean Startup Circle LA, HubSpot for Startups | Sample Pitch Deck Template, How to make an investor pitch deck that really works, Startup Metrics for Pirates (SeedCamp, Sept 2009), How to Create an Epic Pitch Deck Thatll Get You Funded. Connect with Distribution Partners Funding + Co-working + Mentoring -> Design, Data, Distribution Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets Investment Thesis Fundamentals (April 2016), Al Pacino, 83, Expecting Fourth Child with Girlfriend, Noor Alfallah, 29, BKNIX Peering Forum 2023: APNIC Measurement Update, cybersecurity-series-2019-threat-hunting.pdf, Empowering Warehouse Operations Seamless WiFi Service in New York.pdf. Q: Which Customers? Solutions Fast, Cheap Fail, network effects, quantitative + iterative investments, Not Evil) Qualitative: Create Emotion, Drive Action Thanks for reading! Start with lots of small experiments, filter out failure, and Startup Metrics presentation for Startonomics.com conference (San Francisco, Oct 2008) by Dave McClure, 500 Hats. Track Metrics that are Simple & Actionable, Model De Facto Guide to "Startup Metrics for Pirates" Read original here --- De Facto Guide to "Startup Metrics for Pirates" Every day companies are required to make mission-critical decisions. Second, help these companies use the right data to gauge the success of their product management and marketing efforts, then improve those initiatives that arent working. Develop Metrics & Filter for Follow-on Investment, Structure Tweet your comments to me @dannyjpwilliams or comment below. 2. The Lean Startup Basics and Intro for Beginners, Innovation accounting and key metrics for startups, Vision, hypotheses and customer discovery, Different types of startups, markets and whys, 10 Challenges for Emerging Market Startup Ecosystems, Startup Metrics for Pirates (Nov 2015, Platzi), Startup Metrics for Pirates (KAUST, Nov 2013), Startup Metrics for Pirates (Brazil, Nov 2011), Startup Metrics 4 Pirates (Brazil, April 2011), Startup Metrics 4 Pirates (Wildfire Interactive, May 2012). Determine Org Structure, Key Hires, Structure As you gather this data, McClure recommends running plenty of A/B tests to find places where you can improve user engagement at each stage of the AARRR framework. GOOD Metrics. When are you Done? Scalability & Infrastructure, Customer Service & Operations CODE Correct Answers: $10 Improve Product, Expand Market, Test Revenue: Optimize for Conversion Improvement Mobile: Apple (iOS), Android, Xiaomei Activation: users enjoy 1st visit: "happy experience Hackolade Tutorial - part 3 - Query-driven data modeling based on access patt NS-CUK Seminar: V.T.Hoang, Review on "Graph Clustering with Graph Neural Netw zkStudyClub - cqlin: Efficient linear operations on KZG commitments. You might run several versions of a referral contest, for example, to see which one drives the most users to tell their friends about your product. Measure customer behavior and use conversion metrics and web analytics to assist internet marketing and product management efforts. :), LinkedIn: https://www.linkedin.com/in/dannyjpwilliams, Portfolio: http://www.dannyjwilliams.com/, Dave McClures Startup Metrics for Pirates, one unfiltered, Master View and a Test View is considered best practice for Google Analytics. TalkDesk Define 1-5 TESTABLE Conversion Metrics of Value Fast, Frequent Iteration (+ Feedback Loop) $100K-$2M investment [Gradually] Match Channel Costs => Revenue Potential Images understand ACQ$ vs REV$, optimize 4 short-term 5, 2016 0 likes 53,011 views Download Now Download to read offline Report Internet slides for my talk on Startup Metrics for Pirates (AARRR!) Referral: users enjoy your product/service enough to refer others. Competitive: Quantcast, Compete.com, Alexa, Hitwise, Comscore, Nielsens. Please use the responses box of this article to leave your feedback. Startup Metrics for Pirates: AARRR!!! Acquisition (or awareness) How are people discovering our product or company? Emails & Alerts Or you might experiment with increasing your public relations output (earned media) while lowering your online ad spend (unearned media). The user continues to use your product, indicating they like your product. Q: Which of these is best? Customer Sat 6 => Get to Doesnt Suck http://500.co Your Brand / Products Blogs Retention: getting users to come back and visit site multiple times4. Revenue: users complete some sort of conversion event that translates into $$$. 00s & 10s: Call-to-Action v1.3, The Economic Value of Customer Success for Enterprise SaaS Companies, Startup Funding Deck PowerPoint Presentation Slides, How To Make The Perfect Startup Pitch Deck, Vision, hypotheses and customer discovery, Startup Metrics for Pirates (FOWA/Miami, Feb 2009), Startup Metrics for Pirates (Foo Camp 2008), Startup Metrics For Pirates: AARRR! 2. Measure, A/B Test, Iterate FAST (daily/weekly) Here are various business model funnels using just 3 events: After youve defined your measurement plan and ideated experiments, you need to prioritize them. Be sure to write it down and engage your team when drafting it. )First presented by Dave McClure on Ignite, Seattle - 8/8/2007.Animated by https://breadnbeyond.com/Get in touch by send email directly to sales@breadnbeyond.com Creating multiple views of your data to accommodate filters (i.e. Referrals. Test, Measure, Iterate to Improve, (both User + Business) Value (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page (2+ pages, 10+ sec, 1+ clicks = dont abandon) 60% $.05 Activation Happy 1 st Visit; Usage/Signup (clicks/time/pages, email/profile reg, feature usage) 15% $.25 Retention Users Come Back; Multiple Visits (1-3x visits/mo; email/feed open rate / CTR) 5% $1 Referral Users Refer Others (cust sat >=8; viral K factor > 1; ) 1% $5 Revenue Users Pay / Generate $$$ (first txn, break-even, target profitability) 2% $10, disclaimer: estimates of vol, cost/user, time & effort are subjective actual costs are dependent on your specific business, driving referrals * after * users have a happy experience; avg score >= 8 out of 10 Referral Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, is the part *you* still have to figure out (we dont know jack about your business) R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, Do not sell or share my personal information. Target ~3-5 Conversion Events Marketing is Both Qualitative + Quantitative Consider Costs, Scarce Resource Tradeoffs Words Domains v1.3, Silicon Valley 2.0: The Startup Metrics Revolution (Tokyo, December 2008), Startup Metrics for Pirates (SeedCamp 2008), Numbers not Napkins: Simple Startup Metrics, The investor presentation we used to raise 2 million dollars, MySQL fundraising pitch deck ($16 million Series B round - 2003), How to Create the Perfect Startup Pitch Deck, Mixpanel - Our pitch deck that we used to raise $65M, Startup Metrics for Pirates (Twiistup, Jan 2010), Startup Metrics 4 Pirates (DogPatch Labs, Boston, March 2010), Startupmetrics 4 Pirates (Haas April, 2010), Startup Metrics 4 Pirates (Montreal, May 2010), Startup Metrics for Pirates (Startonomics Hawaii Nov 2009), Startup Metrics for Pirates (Chicago, Aug 2010), Startup Metrics for Pirates (Startonomics Beijing, June 2009), Startup Metrics for Pirates (FOWA/Miami, Feb 2009), Startup Metrics for Pirates (Sept 2010, Vancouver), How to be a Web 2.0 Metrics Jedi (Web 2.0 Expo, April 2009), Startup Metrics 4 Pirates (Brazil, April 2011), Startup Metrics 4 Pirates (London, March 2011), Startup Metrics for Pirates (Brazil, Nov 2011), Startup Metrics For Pirates: AARRR! (will pay for), Users CARE About Your Product? REFERRAL Emails & widgets Campaigns, Contests 5. Test audience segments, campaign themes, Call-To-Action (CTAs) Therefore, youll see many product management and marketing professionals refer to it this way as well. This could include: Activation refers to users taking the desired actions, or next steps, after their first encounter with your companys product, website, or content. This article is part of a series of articles guiding readers in exploring the many frameworks and methodologies in product management. Activation Are these people taking the actions we want them to? A: Easy-to-Find, Fun/Useful, Unique Features that In that vein, Ive pulled together a guide for a popular framework Ive found effective in making informed product decisions. Users, Pages, Clicks, Emails, $$$? Constructing MVP: Just ONE Feature? Value (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page (2+ pages, 10+ sec, 1+ clicks = dont abandon) 60% $.05 Activation Happy 1 st Visit; Usage/Signup (clicks/time/pages, email/profile reg, feature usage) 15% $.25 Retention Users Come Back; Multiple Visits (1-3x visits/mo; email/feed open rate / CTR) 5% $1 Referral Users Refer Others (cust sat >=8; viral K factor > 1; ) 1% $5 Revenue Users Pay / Generate $$$ (first txn, break-even, target profitability) 2% $50, driving referrals * after * users have a happy experience; avg score >= 8 out of 10 Referral Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, is the part *you* still have to figure out (we dont know jack about your business) R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, Do not sell or share my personal information. ACQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains 3. ACQUISITION Tweet your comments to me @dannyjpwilliams or comment below. Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 2. Passionate Dave McClure, 500 Hats. Thanks for reading! Positive? Product / Market Fit occurs when: Wireframes = Conversion Steps Present 5 questions of the AARRR model creatively using pirate ship Illustration. Relative to Competitive Alternatives (that your customers know about) SeedCamp 2008 University College London 09/16/08 Dave McClure, Master of 500 Hats http://500hats.typepad.com/ http://www.500hats.com/ http://slideshare.net/dmc500hats/, Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, Model (Users + Conversions + Priorities) Q2: What actions could they take to help you or them ? Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016), Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016), 500 Startups / Batch 16 Demo Day (Q1/2016 update), Startup Metrics for Pirates (FounderX, May 2016), Swarm Intelligence Applications in Unmanned Aerial Vehicles.pdf, fyp presentation of group 43011 final.pptx, Cloud-Native & Sustainability: How and Why to Build Sustainable Workloads, #9 Calicut MuleSoft Meetup - Munits in Mule 4.pptx, Respberry Pi 3 Model B ubiquity ROS image.docx. The key is to identify when something is working and double-down on it. Build Functional Prototype / Minimum Viable Product (MVP): 1,000,000 one-time, unregistered unique visitors Attention/Usage (session time, clicks) (Eric Ries, Do not sell or share my personal information. Semantic Equivalents Apps & If you dont remember anything else, perhaps this graphic & the next 2-3 might be useful. Time-based Prove Solution/Benefit, Assess Market Size AARRR! Simple (acq BBVA, $117M) MORE Customers via ONLINE platforms (100M+ users) Context The aha moment or first taste of your core benefit. Their goal is not to optimize the time it takes to do any one of these steps. Youll want to know, for example, how to define users who are generating: After youve identified the types of data you want to collect for each of these stages of the AARRR framework, you then need to implement tools and methods for collecting analyzing the data. With AARRR, McClure had a twofold goal. Features The framework is Dave McClures Startup Metrics for Pirates. AARRR! [500DISTRO] The Scientific Method: How to Design & Track Viral Growth Experim Startup Metrics for Pirates: AARRR! 3000+ Founders / 250+ Mentors Actual $ expenses Define Metrics, Measurability for Design / UX MktgPlan => Predictable Channels / Campaigns + Budget System Events & These are some of the most difficult metrics to track because people use all sorts of ways to tell others about apps and businesses. 2% $50, Eng / Design Id love to know what YOU think. And, as we all know, goals are just dreams with deadlines. Differentiated = better than other stuff availabile, Sales Ipsy 20% on new feature development, Fit ? The AARRR ( also known as Startup Pirate Metrics because the acronym sounds like a popular pirate expression) is a startup metrics model developed by the entrepreneur and angel investor, Dave McClure. Use the hypotheses in your measurement plan to guide your analysis. Dave McClure, 500 Hats. Startupfest 2013 - How to beat the Series A crunch. Use the hypotheses in your measurement plan to guide your analysis. (clicks/time/pages, email/profile reg, feature usage) Search: Google, Baidu Stupid Look on my face: FREE! (*not* cost) 1 of 40 Startup Metrics for Pirates (FounderX, May 2016) May. - Revenue (direct or indirect) more Users -- Distribution / Acquisition This is super important. LESS Capital required to build product, get to market 20,000 registered users w/ email address In most cases, failure is due to an ill-defined goal and insufficient focus on metrics that measure how the idea is working towards its goal. People support what they help build, so engage them early in the process. Private Label Clothing Manufacturers: Tailored Solutions for Your Brand's Uni Pirates: AARRR !!! [Click here to download the guide(opens in a new tab.)]. Twilio ($1B+) Prove/Expand Market, Operationalize Business I don't want it to look like Orlando Pirates are against the success of Sundowns, however . Increase Vol. - Ignite Seattle 2007-8-8 Updated presentation on Startup Metrics, delivered at SeedCamp 2008 in London, England. News Feeds, Pirates Udemy Widgets what causes pleasure? what causes pain? Retention: a measurement of users coming back to your product/service. Pirate Metrics allows you to identify leaky areas at different stages of your customer life cycle and make informed decisions to improve it. Without metrics, it would be next to impossible to set goals and measure our progress towards them. - Referral (users evangelize to other users), *not* actuals your mileage may vary) Value 1-3 founders Wildfire (acq GOOG, $350M) see more info at: http://webanalyticsassociation.com/ (WAA) http://kaushik.net/ (Avinash Kaushik) http://grokdotcom.com/ (Eisenbergs) http://www.emetrics.org/ (Jim Sterne). People Make a Good Product: Activation & Retention Awesome (enough, see above) Note: Because of its funny pronunciation (say it out loud), McClure also calls AARRR his Pirate Metrics framework. Q: what competitive solutions are available? (Madrid, Oct 2016), Farming Unicorns: Building Startup & Investor Ecosystems, 500 Startups #Batch17 #DemoDay: "Beauty and the GEEK", Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016). This is a 5-step model for creating a metrics framework for your business & customers, and how to apply it to your product & marketing efforts. Marketing: Distribution, Distribution, Distribution. (say it with me now: AARRR!!! Also, youll need to plan ahead for things like: Contrary to popular belief, mindlessly rummaging through data does not actually help you accomplish anything So dont stare at your metrics every minute of every day. Develop Minimal Critical Feature Set => Get to It Works Make Money, Get to Sustainability: Intercom De Facto Guide to "Startup Metrics for Pirates" Every day companies are required to make mission-critical decisions. Tradesy Retention. How do you know? Also, youll need to plan ahead for things like: Contrary to popular belief, mindlessly rummaging through data does not actually help you accomplish anything So dont stare at your metrics every minute of every day. Automated Emails, 100M-1B+ Blogs, RSS, Volume (#), Cost ($), Conversion (%). Ship the simplest, fastest solution that solves the problem; Activation - Are these people taking the actions we want them to? Incubator: $0-100K (Product Viability) A/B test & Iterate, if Design/UX is Good? (first txn, break-even, target profitability) 80s & 90s: PR Biz Dev There are many specific practices that can power lean startups, and well cover a few in this presentation. Talk to Customers; Discover Problems AARRR). Generally speaking, some of the best decisions are data-driven. (Startonomics SF Oct 2008), Startup Metrics for Pirates (Startonomics Beijing, June 2009), Startup Metrics for Pirates (Startonomics Hawaii Nov 2009), How to be a Web 2.0 Metrics Jedi (Web 2.0 Expo, April 2009), Startup Metrics 4 Pirates (Montreal, May 2010), Startup Metrics for Pirates (Chicago, Aug 2010), Startup Metrics for Pirates (Twiistup, Jan 2010), Startup Metrics 4 Pirates (DogPatch Labs, Boston, March 2010), Startupmetrics 4 Pirates (Haas April, 2010), Startup Metrics for Pirates (Sept 2010, Vancouver), Startup Metrics 4 Pirates (London, March 2011), Startup Metrics for Pirates (Brazil, Nov 2011), How to VC: Creating a VC fund portfolio model, Skip the J-Curve: An Intro to Venture Capital Secondary, Tech and Venture Capital in the Time of Corona, Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment, Take a Walk on the Dark Side: Branding for Startups & Sith Lords, Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets, Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex, The Unicorn Hedge: Why Are Corporations Buying Unicorns? REFERRAL Emails & widgets Campaigns, Contests 1. Qualitative: SurveyMonkey (surveys), CrazyEgg (heatmap), TechSmith Morae / UserVue (ux recording), RobotReplay, TapeFailure. It may come in handy in future. Make Money: Revenue & Profitability, problems in 3 key areas: Value (*not* cost) Acquisition Visitors -> Site/Widget/Landing Page (2+ pages, 10+ sec, 1+ clicks = dont abandon) 60% $.05 Activation Happy 1 st Visit; Usage/Signup (clicks/time/pages, email/profile reg, feature usage) 15% $.25 Retention Users Come Back; Multiple Visits (1-3x visits/mo; email/feed open rate / CTR) 5% $1 Referral Users Refer Others (cust sat >=8; viral K factor > 1; ) 1% $5 Revenue Users Pay / Generate $$$ (first txn, break-even, target profitability) 2% $10, disclaimer: estimates of vol, cost/user, time & effort are subjective actual costs are dependent on your specific business, driving referrals * after * users have a happy experience; avg score >= 8 out of 10 Referral Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, is the part *you* still have to figure out (we dont know jack about your business) R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce Acquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains Retention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds, Model (Users + Conversions + Priorities) Q2: What actions could they take to help you or them ? Revenue Are our personas willing to pay for this product?). A measurement plan is a great way to do this. (Startup Metrics for Product Marketing & Product Management) Dave McClure Master of 500 Hats blog: http://500hats.typepad.com/ website: http://www.500hats.com/ slides: http://slideshare.net/dmc500hats/ * reminder: National Talk Like a Pirate Day is Sept 19 th ! The key is to identify when something is working and double-down on it. & Troublemaker, 500 Startups ], [Let us know if you are aware of books about AARRR! The user uses your product, indicating a good first visit. But more important than any specific practice is this core idea: startups should be built to learn. 1 2 3 1 2 3 1 3 2 1 3 2, (note: *not* actuals your mileage may vary) Stage Conversion Status Conv. Comparative: Google Website Optimizer, SiteSpect, Optimost, Offermatica, Vertster, Kefta. Creating multiple views of your data to accommodate filters (i.e. NS-CUK Joint Jouarl Club: JHLee, Review on "GraphMAE: Self-Supervised Masked #9 Calicut MuleSoft Meetup - Munits in Mule 4.pptx, Hackolade Tutorial - part 4 - Create your first data model. Dave calls this a 5-Step Framework for the growth of your business. Pitch ideas to your team and peer review them to prioritize. Making Users Beg for More (Ted Rheingold, Startonomics SF 2008). (Startonomics SF 2008), Lessons we learned from designing 30+ pitch decks, Startup Metrics 101: a Product & Marketing Workshop, Startup Metrics for Pirates (FounderX, May 2016), Numbers not Napkins: Simple Startup Metrics, Startup Metrics for Pirates (SF, Jan 2010), Business Model Innovation - Key Note Speech, Fundraising-Pitch deck template raising seed capital, Startup Metrics For Scottish Pirates (AARRR!) Startupmetrics 4 Pirates (Haas April, 2010), Startup Metrics for Pirates (Startonomics Hawaii Nov 2009), Startup Metrics 4 Pirates (DogPatch Labs, Boston, March 2010), How to VC: Creating a VC fund portfolio model, Skip the J-Curve: An Intro to Venture Capital Secondary, Tech and Venture Capital in the Time of Corona, Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment, Take a Walk on the Dark Side: Branding for Startups & Sith Lords, Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets, Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex, The Unicorn Hedge: Why Are Corporations Buying Unicorns? Putting the Fun in Functional (Amy Jo Kim, Startonomics SF 2008), Hackolade Tutorial - part 4 - Create your first data model, #9 Calicut MuleSoft Meetup - Munits in Mule 4.pptx, Cloud-Native & Sustainability: How and Why to Build Sustainable Workloads, Module II Partition and Generating Function (2).ppt, Pirates AARRR! Crowdfunding, KickStarter, Angel List, Funders Club, etc (Madrid, Oct 2016), Farming Unicorns: Building Startup & Investor Ecosystems, 500 Startups #Batch17 #DemoDay: "Beauty and the GEEK", Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016). Venture: $1M-$10M (Maximize Revenue), Structure $0-$100K investment Define States of User + Business Value # Users, Bandwidth = More. This way youre goal-oriented, time efficient and more likely to find valuable insights. Adoption (10-1000 users) / Cust. AARRR Pirate Metrics framework is an acronym for a set of five user-behavior metrics that product-led growth businesses should be tracking: acquisition, activation, retention, referral, and revenue. "Teboho Mokoena's work is there for everyone to see. Marketing: PayPal, Simply Hired, Mint.com, OReilly Product: Build Right Features. 200,000 visitors who clicked on a link or button Match/Drive channel cost to/below revenue potential costs may change as volume increases, Investor Model @DaveMcClure Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016), Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016), 500 Startups / Batch 16 Demo Day (Q1/2016 update). 3 Steps to AARRR: Product, Market, Revenue Button/Link Satisfaction (Scale: 1-10) The 5 stages AARRR: Acquisition: prospective users visit your site from different channels. Negative? Optimize for conversion to target CTAs, not just site/landing page VC: Founders Fund, Facebook fbFund, 500 Startups Kathy Sierra: Related Terms: HEART framework / lifetime value (LTV) / churn / monthly recurring revenue (MRR) / vanity metrics. that your customers know about? AARRR! Competitors Brand / Products (Startup Metrics for Product Marketing & Product Management) Dave McClure Master of 500 Hats blog: http://500ha. Pitch ideas to your team and peer review them to prioritize. Startup Metrics, a love story. Optimize for User Happiness + Business $$$ Prioritize (Estimate) Relative Value of Each State A good question to ask here is what experiments are likely to have the biggest impact? If you spot a high bounce rate or see users drop off at a stage in your onboarding process, ask why! Revenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, etc 2. Before you can measure success, you have to understand your companys objectives. If you spot a high bounce rate or see users drop off at a stage in your on-boarding process, ask why! & Conversion, Decrease Cost, Optimize for Revenue Potential via GIPHY Cashflow timing of expense vs. revenue, profit (note: If youre in a hurry, Google RAMP Mktg & $$$ AFTER its clear your MVP is: (Startonomics SF Oct 2008), Startup Metrics for Pirates (FOWA/Miami, Feb 2009), Startup Metrics for Pirates (Startonomics Hawaii Nov 2009), Startup Metrics for Pirates (SeedCamp 2008), Startup Metrics for Pirates (Startonomics Beijing, June 2009), Numbers not Napkins: Simple Startup Metrics, Startup Metrics for Pirates (Foo Camp 2008), Startupmetrics 4 Pirates (Haas April, 2010), Startup Metrics for Pirates (Twiistup, Jan 2010), Startup Metrics 4 Pirates (DogPatch Labs, Boston, March 2010), Startup Metrics for Pirates (SF, Jan 2010), Startup Metrics for Pirates (Chicago, Aug 2010), Startup Metrics 4 Pirates (Montreal, May 2010), Startup Metrics for Pirates (Sept 2010, Vancouver), Sean Percival - Social Media is Dead, Long Live Social Media at Startonomics LA, Customer Service is the New Marketing (Thor Muller, Startonomics SF 2008). IDEAS Cheaper, Smarter RETENTION Emails & Alerts Blogs, Content System Events & Time-based Features, Conversion Behavior Website.com This is the part * you * have to figure out I dont know jack about your business 5. Est. AUX = F(Customer, Design/UX, Metrics) Retention Market the Product: Acquisition & Referral MEASURE 1 of 46 Startup Metrics for Pirates (SeedCamp 2008) Sep. 16, 2008 0 likes 41,329 views Download Now Download to read offline Technology Business Updated presentation on Startup Metrics, delivered at SeedCamp 2008 in London, England. Startup Metrics for Pirates: AARRR !!! http://slideshare.net/dmc500hats What Do Users Care About Enough to Fuck or Kill ? Demonstrate Concept, Reduce Product Risk, Test Functional Use 80% on existing feature optimization Activation: users perform the very first step or event to start using your product. Getting Customers => Easier, More Measurable 3 Important Factors = Volume (#), Cost ($), Conversion (%) (Startonomics SF Oct 2008), How to VC: Creating a VC fund portfolio model, Skip the J-Curve: An Intro to Venture Capital Secondary, Tech and Venture Capital in the Time of Corona, Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment, Take a Walk on the Dark Side: Branding for Startups & Sith Lords, Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets, Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex, The Unicorn Hedge: Why Are Corporations Buying Unicorns? Sit Stay Click! http://500hats.com This visual uses the Pirate Metrics framework to list online tools to guide people though your conversion funnel. Were your initial hypotheses proven correct or were they proven wrong? Revenue: how you can make money from thisIt's important to understand about AARRR, because only when you understand all the metrics, you will understand where exactly is wrong with your startup, so you don't guess and make the wrong assumptions. 1 of 55 Startup Metrics for Pirates (March 2009) Mar. Activation: users perform the very first step or event to start using your product. 1,000 monthly subscribers @ $5/mo Former Product Manager at VerticalScope.com and Bell Media (cp24.com & ctvnews.ca). Design & Test Multiple Marketing Channels + Campaigns Comm (Email, IM/Chat, Voice, SMS, etc) The framework is Dave McClures Startup Metrics for Pirates. For example: After youve activated new users by persuading them to take action, youll want to monitor how many of these users are continuing to show interest in your product. Pirate Metrics allows you to identify leaky areas at different stages of your customer life-cycle and make informed decisions to improve it. For a deeper dive on experimentation, growth guru Sean Ellis has a great presentation on High Tempo Testing with a Growth Model. However, this does not mean that nine out of ten ideas are bad. Products Quantitative: Measure Results of Action Dave McClure Follow Global Seed Fund & Startup Accelerator. Dramatically reduced $$$ on servers, software, bandwidth SEM Startup Metrics & watch 5m video), a Time. Why? 120+ people / 30+ investing partners / 20 Countries Many of your improvement experiments wont work and some might be out-of-the-park successes. Social: Facebook, SnapChat, Twitter, LinkedIn, TenCent/QQ/WeChat ], [Let us know if you you are aware of anyone teaching a course about AARRR! Control improvements by doubling down on whats working. Which users? Dealmaker Media Follow CEO at Dealmaker Media Advertisement Advertisement We called it, startup. Social (cust sat >=8; viral K factor > 1; ) How to Create the Perfect Startup Pitch Deck. 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