Start-up metrics for Product Marketing & Product Management AARRR – "It's about how to develop a model of your customer behavior, and then use conversion metrics/web analytics to assist your internet marketing & product management efforts" Dave McClure 500 Startups Designed by www.GetStandingOvation.com The presentation design studio trusted by CXOs & Founders View Dave's original presentation slides https://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version/7-Customer_Lifecycle_Conversion_Behavior_Websitecom Watch Dave's presentation video https://www.youtube.com/watch?v=irjgfW0BIrw Download the High-resolution version of the redesign https://drive.google.com/open?id=1MO3rIps8w6PC844KUGhLPXT1ibGU9hlz Have a critical meeting? Email us to get your presentation designed Hello@GetStandingOvation.com

1. Metrics
Pirate

2. a model of your customer behaviour,
1

3. Acquisition Activation Revenue
A
A
R
R
R
Customer
Lifecycle
Referral
Retention
A A R R R

4. Get people to your website &
signup for your software
Social
Networks
Email SEM/
SEO
Campaigns
Contests
Biz Dev Other
Channels
Marketing
Channels
Target
Audience
Get users to come to the
site/product through
various channels
1 Acquisition
A

5. 2
Users enjoy 1st visit "happy" user experience
Activation criteria: User completes some key actions on
your site/product | 10-to-30+ seconds usage | 2-to-3+
page views | 3-to-5+ clicks | 1 key feature usage
Homepage/Landing
page/Product features
Do lots of landing page
& A/B tests - just make
lots of dumb guesses &
quickly iterate
Activation
A

6. Retention
Users come back, use the site/product
multiple times.They get the value
proposition
Emails & Alerts
Automated emails are a simple & easy retention feature
Lifecycle emails @ +3, +7, +30d
Status emails weekly/monthly
Event-based emails as they occur
System events & time-based features, blogs, content
Win
Back
New Customer Existing Lapsed
Active Customers Declining activity
Entering customer base
Browser
Abandonment
Cart
Abandonment
New
Subscriber
First
Purchase
Review
Request
Cross
Sell
Replenishment
Up
Sell
Lifecycle Emails
E-Commerce
Powered by www.rejoiner.com
3
R

7. Referral
Only encourage users to refer *after* they have had a
“happy” user experience; avg score >= 8 out of 10
Tactics: Campaigns, Contests, Emails & Widgets
Users like your site/product
enough to refer others
SEND
4
R

8. Revenue
Ads, Lead Gen, Subscriptions, etc.
as per your business model
Users conduct some
monetization behavior
5
R

9. use conversion metrics/web analytics
2

10. Qualitative Quantitative Comparative Competitive
Metrics &
Measurement
4 Types of

11. Usability Testing Session Monitoring
1
Watch what users do, figure out problems &
solutions from small number of users
Users Reaching feature goal?
Qualitative

12. Quantitative
Report what users do, track usage & conversion
% for all or empirical sample number of users.
Traffic analysis. User engagement
650
243
565
37%
Flight
searched
Viewed
Listing
Booked
Ticket
43%
87% Conversion trend
Conversion
2

13. Comparative
Compare what users do in one scenario
vs another, see which copy/graphics/UI is
most effective.A/B, Multivariate testing
A - Control B - Variation
37%
23%
- VS -
3

14. Competitive
Track competitor activity & compare against yours; if possible
compare channels, keyword traffic, demographic targeting,
user satisfaction, etc.
Monitor news
& websites
Listen to
social media
conversations
Track search
rankings
Track paid
marketing
4

15. Acquisition
1
VisitSite
or landing page, or
external widget
Doesn't Abandon
Views 2+ pages, stays 10+ sec,
2+ clicks
100% Conversion
$0.01 Estimated value
70% Conversion
$0.05 Estimated value
Case study
HOME
Search

16. Activation
2
Happy 1st Visit
Views X pages, stays Y sec, Z clicks
Account Signup
includes profile data
Something for returning
Email/Blog/RSS/Widget Signup
anything that could lead to repeat visit
30% Conversion
$0.25 Estimated value
5% Conversion
$1 Estimated value
2% Conversion
$3 Estimated value
Search
Results
Register
Cart

17. Retention
3
Email/notifications
Email Open/RSS view
⇥ Clickthru
Repeat Visitor
3+ visits in first 30 days
3% Conversion
$2 Estimated value
2% Conversion
$5 Estimated value
Product
Email

18. referral
4
Referral to Visit
Refer 1+ user who
visits the site
Referral to activation
Refer 1+ user who
activates
2% Conversion
$3 Estimated value
1% Conversion
$10 Estimated value
Home
Share
Home
Share
Register

19. Cart
Revenue
5
Minimum
User generates minimum revenue
Break-even
User generates break-even revenue
2% Conversion
$5 Estimated value
1% Conversion
$25 Estimated value
Cart
Payment
Payment

20. Visit
ADD TO cart
register
Happy 1st visit
Sale alert
Re-marketing
Email/notifications
Break-even Revenue
Minimum Revenue
REVENUE
ACTIVATION
Acquisition
Marketing
70%
5%
Word-of-mouth
Word-of-mouth
Email/notifications
Summary
Case study
Direct
CHANNELS RETENTION
Referral

21. internet marketing & product management efforts
3

22. Measure channel effectiveness *deeper* down the
conversion funnel, and not just to website/landing page.
Conversion @ deepest possible level (ideally $$$)
what channels/who do you market to?
Conversion
%
Volume
Marketing channels
Focus on low cost
Design, Test & measure
1 2
Marketing question

23. Just guess, then A/B test a lot. Measure
conversion improvement. Rinse & repeat
how do you choose what to build?
80%
Focus on Optimizing existing feature
20%
Develop new features
Product question

24. Hypothesize customer lifecycle & refine.Choose 5-10
conversion steps. Less, not more is better. But
measure & iterate. Focus on conversion improvement.
Delegate each metric to someone to own
What metrics do you choose to watch?
Ecommerce Dashboard
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Founder/CEO question

25. Dave McClure
500 Startups
“AARRR” – the Pirate metrics
Originally presented the

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The presentation design studio trusted by CXOs & Founders
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28. qualitative
Quantitative
comparative
competitive
analysis
Referral
Lifecycle
emails

29. Cover photo by una.knipsolina / photocase.com
E-Commerce lifecycle emails www.rejoiner.com
Ecommerce Dashboard www.geckoboard.com
Funnels mixpanel.com/funnels/
Heatmaps inapptics.com
Dropbox referrals http://ui-patterns.com/patterns/invite-friends/examples/17083
Revenue Oleg Andrianov http://anoff.ru
Ash Maurya www.slideshare.net/ashmaurya/pirate-metrics-20-aarrr
YAROSLAV LEHENCHUK producttribe.com/revenue-amp-growth/aarrr-framework-best-guide

30. Hello@GetStandingOvation.com
GetStandingOvation
The presentation design studio trusted by CXOs & Founders