Presentation about Data Analytics for Tetuan Valley Startup School, Fall 2015 (Nov)

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Data Analytics:
because everything
counts
Justo Hidalgo
@justohidalgo

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Hi!
• Co-­founder,
– BizDev
– Publisher Relations
– Investor Relations
– Data Analytics
• Background: Data Integration and
Management, Product Strategy and
Innovation
• Ph.D. in Computer Science on Data
Integration and Web Automation
• Ergo: Love Data J
• @justohidalgo

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A service to read and discover digital books that
works on any device

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@justohidalgo

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1. Data analytics models and their relation to Lean
2. User acquisition. Metrics, analysis of results and cases
3. User activation. Metrics, analysis of results and cases
4. User retention. Metrics, analysis of results and cases
5. Virality and Referral. Metrics, analysis of results and cases
6. Revenue. Metrics, analysis of results and cases
Workshop Agenda

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Vanity Metrics

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Hooooray!!! Or not?

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Typical vanity metrics
• Number of hits
• Number of page views
• Number of visits
• Number of unique visitors
• Number of followers/friends/likes
• Time on site/number of pages
• Emails collected
• Number of downloads

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Cohort Analysis

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Cohort Analysis
Jan
2015
Feb
2015
Mar
2015
Apr
2015
May
2015
Jun
2015
Jul
2015
Aug
2015
Sep
2015
Oct
2015
Nov
2015
Cohort:
Jan
2015
1059 520 265 142 66 33 29 17 8 4 2
Cohort:
Feb
2015
1200 760 354 179 89 45 35 24 12 6
Cohort:
Mar
2015
1250 800 230 154 67 66 55 23 12
Cohort:
Apr
2015
1210 760 340 156 65 54 45 32
Cohort:
May
2015
1450 1000 750 560 450 345 312
Cohort:
June
2015
1540 1210 1002 890 600 530
Inspiration: http://christophjanz.blogspot.de/2012/05/know-­your-­user-­cohorts.html

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A/B Testing

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One key question for the whole
customer lifecycle
• How effective is a web page compared to
another?
– Effective = conversion rate, usage rate, payment rate,
…
?

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What’s A/B Testing?
Version A Version B
Visitors are randomly distributed
time
1200 new users 1000 new users
Version A is better than B

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Analytics Models

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AARRR
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…
traffic social business

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What’s next
• Session 2: User acquisition. Metrics, analysis of results and cases
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…

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How do people find your site?
Acquisition

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Case in point

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@justohidalgo

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15 seconds in “La
1”

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Videos work quite fine

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Metrics that Matter

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Metrics
Number of visits Distributions (per browser, region,
…)
Number of page views
Bounce rate

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What’s next
• Session 3: User activation. Metrics, analysis of results and cases
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…

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How sticky is your site?
AActivation

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Case in point

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Survey tool
qidiq

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Metrics that Matter

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Metrics
40000
45000
50000
55000
60000
65000
70000
75000
80000
85000
Time per page
Time on site
# Sign ins!!! Recency (time since user did
something meaningful)
(and churn as well!!!)

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What’s next
• Session 4: User retention. Metrics, analysis of results and cases
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…

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Why do users come back?
AARetention

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6 Hacks

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1. Weekly digest of app/service activity

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2. Activity notifications from within the app

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3. Onboarding emails

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4. Product / Content update newsletters

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5. Basic loyalty program

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6. Automated emails for inactive users

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Case in Point

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52

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Metrics that Matter

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Number of unique/returning visitors
Visits over time
Average session time
Metrics. The standard ones…

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D/WAU: Daily/Weekly Active Users
MAU: Monthly Active Users
Stickiness =
… engagement…
D/WAU
MAU

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# Active readers
# Books read per user
Pages read per active
reader per month
… but also domain-­specific!!!
Pages read per
paid user per
month

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What’s next
• Session 5: User referral and virality. Metrics, analysis of results and
cases
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…

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Do people talk about your site?
AARReferral

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Case in Point

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@justohidalgo

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Metrics that Matter

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Amplification rate:
– (#shares, #RTs, …)
K-­Factor = AR *
conversion rate
– = 1: steady state
– > 1: growth
➤ 1.4 < x < 2.1 => hot &
viral!!!
– < 1: decline
Virality

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What’s next
• Session 6: Revenue. Metrics, analysis of results and cases
Acquire Activate Retain Refer Get Revenue
SEO
SEM
Campaigns
Email
Blogs
…
Landing
Page
Product
Features
…
Content
(blogs,
articles,
…)
Emails
Alerts
…
Campaigns
Emails
…
Shopping
cart
Subscriptions
Lead Gen
…

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Do you make money?
AARRRevenue

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Metrics that Matter

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CMRR
LTV
CACR
3 (main) metrics for SaaS

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Churn

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SaaS = recurring revenues
CMRR = Committed Monthly Recurring Revenue
– Recurring + new accounts + new upsells – churn
CMRR

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Lifetime Value =
100%
LTV
Source: http://blog.kissmetrics.com/how-­to-­calculate-­lifetime-­value/Churn rate
ARPU *

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Of course, LTV > CAC
But, moreover: LTV > 3x CAC
LTV vs CAC

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Conclusions

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2. Have someone taking care of
your metrics

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3. Only measure what you truly care about
@justohidalgo

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4. Beware vanity metrics…

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… they may hide an awful truth

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Thanks for your time!
@justohidalgo
Justo Hidalgo
http://www.loscuentosdelabuelo.com
jhidalgo@24symbols.com