1. The Metrics-Driven Startup
Which Metrics Matter and Why
Hiten Shah
Lean LA • September 21st, 2010

2. Ferrari F430 Spider

3. 152 miles per hour

4. Most Startups Crash and Burn

5. Let’s talk about what else is easy.

8. Stop measuring what’s easy.

9. Start measuring what matters.

10. Failure attracted me to The Lean Startup

11. Vanity Metrics

12. Actionable Metrics

13. Are the metrics you are tracking
helping you make decisions?

14. Example SaaS Web App
• People sign up and pay online
• They first sign up for a 7 day free trial
• Then they pay $97 per month

15. Example SaaS Web App
• People sign up and pay online
• They first sign up for a 7 day free trial
• Then they pay $97 per month
What are your assumptions?

16. Software as a Service Product
(Assumptions)
Key Actions % of people # of people
Visit Site 100% 1000
Sign Up 10% 100
Activate 5% 50
Upgrade 1% 10
Revenue $970 per month

17. Baseline these key actions and
assumptions.

18. Software as a Service Product
(Actual Baseline)
Key Actions % of people # of people
Visit Site 100% 1000
Sign Up 3.6% 36
Activate 1.2% 12
Upgrade 0.4% 4
Revenue $388 per month

19. What would you try to improve?
Key Actions % of people # of people
Visit Site 100% 1000
Sign Up 3.6% 36
Activate 1.2% 12
Upgrade 0.4% 4
Revenue $388 per month

20. Software as a Service Product
(Video Test)
Key Actions % of people # of people
Visit Site 100% 1000
Sign Up 6.5% 65
Activate 1.8% 18
Upgrade 0.3% 3
Revenue $291 per month vs. $388 baseline :(

21. Get Inspired!

22. Software as a Service Product
(Inspired Test)
Key Actions % of people # of people
Visit Site 100% 1000
Sign Up 7.7% 77
Activate 2.8% 28
Upgrade 1.2% 12
Revenue $1164 per month vs. $388 baseline :)

23. Software as a Service Product
(Compare all 3)
Key Actions Baseline Video Test Inspired Test
Visit Site 100% 100% 100%
Sign Up 3.6% 6.5% 7.7%
Activate 1.2% 1.8% 2.8%
Upgrade 0.4% 0.3% 1.2%
Revenue $388 per $291 per $1164 per
month month month

25. Crazy Egg Pricing Before

26. Crazy Egg Pricing After

27. Crazy Egg Pricing Results
• Before - 150 sign ups per day
• After - 15 sign ups per day
• But revenue doubled in the first month!

28. Start measuring what matters.

29. Questions?
Got questions? Want advice? Email Me!
hiten@kissmetrics.com