My notes on this video by Suhail Doshi the founder of Mixpanel.
Suhail is great and he summarizes everything you should consider about metrics when creating your startup nonetheless this is a really high overview of what measuring entails.
If you are searching for something more deep and actionable maybe try with Lean Analytics.
Is my product easy to understand?
Is it easy to get started with my product (For customers)?
Are people coming back to my product?
Those 3 are the most important questions you could ask yourself when building your startup.
These nexts factors are the levers for your successful startup. The more you have down the funnel, the better you do.
People hitting your landing page or mobile app screen.
The number of people who then sign up.
The number of people who do the thing the product was made for.
The number of people who then subsequently come back and do that valuable thing again.
The number of people who want other people to know about your product (sharing, word of mouth, sales, etc).
The basics are really important.
All of the levers mentioned before are the basics. Most startup founders never get the basics right.
They overcomplicate their metrics with thousands of fancy KPI’s that are just vanity metrics and ignore the really important stuff.
If you focus on the basics and get them right. You’ll grow.
Pick 3–5 metrics.
These are things that guide the team.
You should be able to assess why you’re not growing with this simple formula
This is how the funnel looks like
Once you know why you’re not growing then you should be able to take action on a lever & fix it.
Do people bother to sign up?
Ratio of single page visits to multi-page engagement
B2B: Do they visit your pricing page?
Consumer: Performing A/B tests of your copywriting
People who do one valuable thing (ie: watch a video)
Measure a funnel of your initial user experience
Speed to doing that valuable
Email/text confirmations will have significant drop-off
Constantly iterate on your initial user experience
Let users in the product before asking them to sign up
Poor retention is often the most ignored metric by early founders. It’s often the reason even products with millions of users die.
New users who came back 1 week + 30 days later to do a valuable thing again.
Number of people who use the product every day (DAU instead of MAU)
B2B: Revenue churn — monthly $ lost in a given month
Talk to your customers. Write everything down. You will always get more information from talking to customers than checking it on a graph.
Pick one north star & choose 3–5 metrics. Less is more.
A frequent mistake is having too many metrics that you monitor.
16 startup metrics:https://a16z.com/2015/08/21/16-metrics/
After the Techcrunch bump:http://redeye.firstround.com/2008/01/after-the-techc.html
On Negative Churn:http://tomtunguz.com/negative-churn/
A/B testing by Eric Ries:http://www.startuplessonslearned.com/2008/09/one-line-split-test-or-how-to-ab-all.html
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