TY - BOOK AU - Croll,Alistair AU - Yoskovitz,Benjamin TI - Lean analytics: use data to build a better startup faster T2 - The lean series SN - 9781098168186 AV - HD62.5 .C77 2024 U1 - 658.834 23 PY - 2024///] CY - Sebastopol, CA PB - O'Reilly KW - New business enterprises KW - Entrepreneurship KW - Success in business N1 - Includes bibliographical references (page 393) and index; Preface Who This Book Is For How This Book Works The Building Blocks Customer Development Lean Startup We’d Like to Hear from You O’Reilly Safari Thanks and Acknowledgments I. Stop Lying to Yourself 1. We’re All Liars The Lean Startup Movement Poking a Hole in Your Reality Distortion Field Airbnb Photography—Growth Within Growth 2. How to Keep Score What Makes a Good Metric? Qualitative Versus Quantitative Metrics Vanity Versus Real Metrics Eight Vanity Metrics to Watch Out For Exploratory Versus Reporting Metrics Circle of Moms Explores Its Way to Success Leading Versus Lagging Metrics Correlated Versus Causal Metrics Moving Targets HighScore House Defines an “Active User” Segments, Cohorts, A/B Testing, and Multivariate Analysis Segmentation Cohort Analysis A/B and Multivariate Testing The Lean Analytics Cycle Evaluating the Metrics You Track 3. Deciding What to Do with Your Life The Lean Canvas What Should You Work On? Create a Lean Canvas 4. Data-Driven Versus Data-Informed How to Think Like a Data Scientist Lean Startup and Big Vision II. Finding the Right Metric for Right Now 5. Analytics Frameworks Dave McClure’s Pirate Metrics Eric Ries’s Engines of Growth Sticky Engine Virality Engine Paid Engine Ash Maurya’s Lean Canvas Sean Ellis’s Startup Growth Pyramid The Long Funnel The Lean Analytics Stages and Gates 6. The Discipline of One Metric That Matters Moz Tracks Fewer KPIs to Increase Focus Four Reasons to Use the One Metric That Matters Solare Focuses on a Few Key Metrics Drawing Lines in the Sand The Squeeze Toy Define Your OMTM 7. What Business Are You In? About Those People The Business Model Flipbook Lots to Choose From Six Business Models Pick Your Business Model 8. Model One: E-commerce What Mode of E-commerce Are You? A Practical Example Conversion Rate Purchases Per Year Shopping Cart Size Abandonment Cost of Customer Acquisition Revenue Per Customer WineExpress Increases Revenue by 41% Per Visitor Keywords and Search Terms Recommendation Acceptance Rate Virality Mailing List Click-Through Rates Offline and Online Combinations Shipping Time Stock Availability Visualizing the E-commerce Business Wrinkles: Traditional E-commerce Versus Subscription E-commerce Key Takeaways 9. Model Two: Software as a Service (SaaS) Backupify’s Customer Lifecycle Learning Measuring Engagement Churn Churn Complications Visualizing the SaaS Business ClearFit Abandons Monthly Subscriptions for 10x Growth Wrinkles: Freemium, Tiers, and Other Pricing Models Key Takeaways 10. Model Three: Free Mobile App Installation Volume Average Revenue Per User Percentage of Users Who Pay Churn Visualizing the Mobile App Business Wrinkles: In-App Monetization Versus Advertising Key Takeaways 11. Model Four: Media Site Audience and Churn Inventory Performance and the Sessions-to-Clicks Ratio Ad Rates Content/Advertising Trade-off Visualizing the Media Business Wrinkles: Hidden Affiliates, Background Noise, Ad Blockers, and Paywalls Key Takeaways 12. Model Five: User-Generated Content Visitor Engagement Content Creation and Interaction Engagement Funnel Changes Value of Created Content Content Sharing and Virality Notification Effectiveness Visualizing a UCG Business Wrinkles: Passive Content Creation Key Takeaways 13. Model Six: Two-Sided Marketplaces What DuProprio Watches Rate at Which You’re Adding Buyers and Sellers Rate of Inventory Growth Buyer Searches Conversion Rates and Segmentation Buyer and Seller Ratings Percent of Flagged Listings Visualizing a Two-Sided Marketplace Wrinkles: Chicken and Egg, Fraud, Keeping the Transaction, and Auctions Key Takeaways 14. What Stage Are You At? Pick the Stage That You’re At 15. Stage One: Empathy Metrics for the Empathy Stage This Is the Best Idea I’ve Ever Had! (or, How to Discover Problems Worth Solving) Finding a Problem to Fix (or, How to Validate a Problem) Signs You’ve Found a Problem Worth Tackling Running Lean and How to Conduct a Good Interview How to Avoid Leading the Witness Convergent and Divergent Problem Interviews How Do I Know If the Problem Is Really Painful Enough? Calculating the Scores Cloud9 IDE Interviews Existing Customers How Are People Solving the Problem Now? Are There Enough People Who Care About This Problem? (or, Understanding the Market) What Will It Take to Make Them Aware of the Problem? A “Day in the Life” of Your Customer Finding People to Talk To Getting Answers at Scale LikeBright “Mechanical Turks” Its Way into TechStars Creating an Answers-at-Scale Campaign Build It Before You Build It (or, How to Validate the Solution) Localmind Hacks Twitter Before You Launch the MVP Deciding What Goes into the MVP Measuring the MVP Don’t Ignore Qualitative Analytics Be Prepared to Kill Features Static Pixels Eliminates a Step in Its Order Process A Summary of the Empathy Stage Should You Move to the Next Stage? 16. Stage Two: Stickiness MVP Stickiness Iterating the MVP qidiq Changes How It Adds Users Premature Virality The Goal Is Retention Seven Questions to Ask Yourself Before Building a Feature How Rally Builds New Features with a Lean Approach How to Handle User Feedback The Minimum Viable Vision The Problem-Solution Canvas VNN Uses the Problem-Solution Canvas to Solve Business Problems A Summary of the Stickiness Stage Exercise #1: Should You Move to the Next Stage? Exercise #2: Have You Identified Your Biggest Problems? 17. Stage Three: Virality The Three Ways Things Spread Inherent Virality Artificial Virality Word-of-Mouth Virality Metrics for the Viral Phase Beyond the Viral Coefficient Timehop Experiments with Content Sharing to Achieve Virality Instrumenting the Viral Pattern Growth Hacking Attacking the Leading Indicator What Makes a Good Leading Indicator? Correlation Predicts Tomorrow Causality Hacks the Future A Summary of the Virality Stage Should You Move On to the Revenue Stage? 18. Stage Four: Revenue Metrics for the Revenue Stage The Penny Machine Penny Machines and Magic Numbers Finding Your Revenue Groove Where Does the Money Come From? Customer Lifetime Value > Customer Acquisition Cost Parse.ly and the Pivot to Revenue Market/Product Fit Review Your Old Assumptions Begin a Process of Elimination Deep Dive Find Similarities The Breakeven Lines in the Sand Breakeven on Variable Costs Time to Customer Breakeven EBITDA Breakeven Hibernation Breakeven Revenue Stage Summary 19. Stage Five: Scale The Hole in the Middle Metrics for the Scale Stage Is My Business Model Right? Buffer Goes from Stickiness to Scale (Through Revenue) The Three-Threes Model Finding Discipline as You Scale A Summary of the Scale Stage 20. Model + Stage Drives the Metric You Track III. Lines in the Sand 21. Am I Good Enough? WP Engine Discovers the 2% Cancellation Rate Average Isn’t Good Enough What Is Good Enough? Growth Rate Is Growth at All Costs a Good Thing? Bottom Line Number of Engaged Visitors Bottom Line Pricing Metrics Socialight Discovers the Underlying Metrics of Pricing Bottom Line Cost of Customer Acquisition Bottom Line Virality Bottom Line Mailing List Effectiveness Bottom Line Uptime and Reliability Bottom Line Site Engagement Bottom Line Web Performance Bottom Line Make Your Own Lines in the Sand 22. E-commerce: Lines in the Sand Conversion Rate Bottom Line Shopping Cart Abandonment Bottom Line Search Effectiveness Bottom Line 23. SaaS: Lines in the Sand Paid Enrollment Bottom Line Freemium Versus Paid Upselling and Growing Revenue Bottom Line Churn OfficeDrop’s Key Metric: Paid Churn Bottom Line 24. Free Mobile App: Lines in the Sand Mobile Downloads Bottom Line Mobile Download Size Bottom Line Mobile Customer Acquisition Cost Bottom Line Sincerely Learns the Challenges of Mobile Customer Acquisition Application Launch Rate Bottom Line Percent Active Mobile Users/Players Bottom Line Percentage of Mobile Users Who Pay Bottom Line Average Revenue Per Daily Active User Bottom Line Monthly Average Revenue Per Mobile User Bottom Line Average Revenue Per Paying User Bottom Line Mobile App Ratings Click-Through Bottom Line Mobile Customer Lifetime Value 25. Media Site: Lines in the Sand Click-Through Rates Bottom Line Sessions-to-Clicks Ratio Bottom Line Referrers Bottom Line Engaged Time Bottom Line What Onsite Engagement Can Tell You About Goals and Behaviors Sharing with Others Bottom Line JFL Gags Cracks Up YouTube 26. User-Generated Content: Lines in the Sand Content Upload Success Bottom Line Time on Site Per Day Bottom Line Reddit Part 1—From Links to a Community Engagement Funnel Changes Bottom Line Reddit Part 2—There’s Gold in Those Users Spam and Bad Content Bottom Line 27. Two-Sided Marketplaces: Lines in the Sand Transaction Size Bottom Line What Etsy Watches Top 10 Lists Bottom Line 28. What to Do When You Don’t Have a Baseline IV. Putting Lean Analytics to Work 29. Selling into Enterprise Markets Why Are Enterprise Customers Different? Big Ticket, High Touch Formality Legacy Products Incumbents Slower Cycle Time Rationality (and Lack of Imagination) The Enterprise Startup Lifecycle Inspiration Empathy: Consulting and Segmentation How Coradiant Found a Market Stickiness: Standardization and Integration Virality: Word of Mouth, Referrals, and References Revenue: Direct Sales and Support Scale: Channel Sales, Efficiencies, and Ecosystems So What Metrics Matter? Ease of Customer Engagement and Feedback Pipeline for Initial Releases, Betas, and Proof-of-Concept Trials Stickiness and Usability Integration Costs User Engagement Disentanglement Support Costs User Groups and Feedback Pitch Success Barriers to Exit The Bottom Line: Startups Are Startups 30. Lean from Within: Intrapreneurs Span of Control and the Railroads Skunk Works for Intrapreneurs Changing—or Innovating to Resist Change? Stars, Dogs, Cows, and Question Marks Swiffer Gives Up on Chemistry Doritos Chooses a Flavor Working with an Executive Sponsor EMI Embraces Data to Understand Its Customers The Stages of Intrapreneur Lean Analytics Beforehand: Get Buy-in Empathy: Find Problems, Don’t Test Demand Skip the Business Case, Do the Analytics Stickiness: Know Your Real Minimum Viral from the Start Revenue Within the Ecosystem Scale and the Handoff 31. Conclusion: Beyond Startups How to Instill a Culture of Data in Your Company Start Small, Pick One Thing, and Show Value Make Sure Goals Are Clearly Understood Get Executive Buy-in Make Things Simple to Digest Ensure Transparency Don’t Eliminate Your Gut Ask Good Questions A. References and Further Reading B. About the Authors C. The Lean Series Index N2 - Whether you're a startup founder trying to disrupt an industry or an entrepreneur trying to provoke change from within, your biggest challenge is creating a product people actually want. Lean Analytics steers you in the right direction. This book shows you how to validate your initial idea, find the right customers, decide what to build, how to monetize your business, and how to spread the word. Packed with more than thirty case studies and insights from over a hundred business experts, Lean Analytics provides you with hard-won, real-world information no entrepreneur can afford to go without. Understand Lean Startup, analytics fundamentals, and the data-driven mindset Look at six sample business models and how they map to new ventures of all sizes Find the One Metric That Matters to you Learn how to draw a line in the sand, so you'll know it's time to move forward Apply Lean Analytics principles to large enterprises and established products ER -