Presentation about Marketing Metrics by Mike van Hoenselaar on StartupBootcamp (SBC) Growth Week.

1. How to thrive as an early stage
startup by using the right metrics

2. Founder / Growth Hacker
7 years
Founder
1 year
Growth Coach / Growth Hacker
1 year
Organizer / Mentor
4 years
@MikevHoenselaar
mike@onlineboswachters.nl

3. Find them again at http://vruc.ht/sbcghmm
@MikevHoenselaar

4. ●
You tell
lies!
@MikevHoenselaar

5. “I believe we are all liars, but I think
to a certain degree it’s a necessity.
To get up in the morning and face
the universe as an entrepreneur,
you need to have a bit of a reality
distortion field.”
Ben Yoskovitz
Author Lean Analytics
@MikevHoenselaar

6. The oxygen
for Growth
Comparative, Understandable, Ratio or rate
Metrics are
@MikevHoenselaar

7. Behavior changing
Metrics are
@MikevHoenselaar

8. Where to
start?
It depends :)
What drives your startup, what is it’
s oxygen?
Who is your customer?
What do your customers want to
achieve with your product?
What do you want to learn?
Take the first step!
@MikevHoenselaar

9. Know that you
don’t know
Donald Rumsfeld, US Secretary of Defense
Image: Karin Cooper/Getty Images
@MikevHoenselaar

10. 16
@MikevHoenselaar
Image: Lean Analytics book

11. The One Metric
That Matters
OMTM
@MikevHoenselaar
55

12. Yes! Not working?
Pick another one.
Can I use made-up metrics?
@MikevHoenselaar

13. ‘analysis paralysis’
NFA #6

14. Focus!
1@MikevHoenselaar

15. $40 a month
$40 per month
Supports lots of API’s
Free
Less customizability
< 5 minutes setup for basics
$9 per month
Lots of custom options
Longer setup

16. What happens if
ratio increases/
decreases?
Make an action plan!
@MikevHoenselaar

17. @MikevHoenselaar
Intelligence Events
“Send notification if the average
amount per order drops 10%
since the week before.”
< 1 hour setup
Works by default in Google
Analytics.
6 months in, this alert triggered.
What happened was that dev
team deployed new version of
website with “discounts sidebar”
visible on cart page. Oops! :)

18. 5 stages
Empathy, Stickiness, Virality
Revenue and Scale
@MikevHoenselaar

19. @MikevHoenselaar

20. @MikevHoenselaar
What could be their OMTM?
Videos uploaded per minute
(enough new content being added)
Hours watched per day (per
user)
(enough people watching the
content)
Shares per video per day
(enough people talking about the
videos)
100M views (vanity)
(when does a video reach 100M
views, record is 4 days ‘Gentlemen’)

21. @MikevHoenselaar
Our OMTM?
242 listings, 750 reviews
Requests per day
(give enough value to
escaperooms, 11 per day atm)
Users per month
(are we getting enough people in,
20k per month atm)
Reviews per user
(are people coming back. 1,3
reviews per user)
Shares per listing
(Do people share their favorite
escaperoom, answer is NO)

22. 400%
month
over
month
60%
month
over
month
@MikevHoenselaar

23. Empathy
See if others pretend to believe your lies.
Will anyone care?
159
@MikevHoenselaar

24. @MikevHoenselaar
Test value proposition
“Can we get people to click on a
FB ad and test what is the
biggest pain for our target
audience?”
14 ads in one ad group
1 week of testing
No real landing page
Focus on CTR
< 500 euro
We found right direction to
continue product and use in next
experiment.

25. !
FB picks
winner after
48 hours
@MikevHoenselaar

26. @MikevHoenselaar
Test value proposition
“How do people perceive the
purpose of our landing page
design?”
1 image
5 second test
1 week of testing
Only time needed (2 hours of
clicking other people’s tests and
learn from those as well)
We found people wouldn’t get
the premise of the landing page.
Changed it, did it again. Saw
positive uplift.

27. @MikevHoenselaar

28. Stickiness
People believe your lies and you want them to come
back to hear more of them
203
@MikevHoenselaar

29. Top landing pages
Top Exit pages
Highest traffic pages
Most expensive pages
Identify your most important pages
@MikevHoenselaar

30. P.I.E.
S@MikevHoenselaar

32. @MikevHoenselaar
“How can we find the best
places to optimize to increase
conversion?”
Pick your funnel
(cart -> info -> payment -> thank you)
Implement Enhanced E-commerce
View report in Google Analytics and
see where most people drop off.
We removed friction for client in
form (IE problem) and increased
conversion uplift of 10%, sales per
month increase of € 15k)
(It’s also interesting to see where
they drop off to! Use segmentation!)
Conversion

33. Measure, test, iterate!
@MikevHoenselaar

34. Watch 30 videos, get your hypothesis!
@MikevHoenselaar

35. @MikevHoenselaar
E-mailmarketing
“Can we get people to come
back that visited an escape
room?”
We already had their email
addresses, we didn’t need an opt-in
anymore.
We decided to do a mailing to ask
for a review. We knew when they
visited the escaperoom to make it
relevant.
40% of people engaged with the
email and 50% gave their review.
Currently 750 reviews in 6
months.

36. 15% growth
in reviews
per week
@MikevHoenselaar

37. Read this!
@MikevHoenselaar

38. Virality
People are convincing others about your ‘lies’
227
@MikevHoenselaar

39. 74% of high growth
startups fail due to
premature scaling
Startup Genome Report Extra: Premature Scaling → http://vruc.ht/sgr@MikevHoenselaar

40. Viral coefficient
Amount of new customers that
each existing customer is able to
convert
@MikevHoenselaar

41. invitation rate
(invites sent / users)
*
acceptance rate
(signups / invites)
Viral coefficient
@MikevHoenselaar
Customers
Time

42. invitation rate
(invites sent / users)
*
acceptance rate
(signups / invites)
Viral coefficient
@MikevHoenselaar
1250 users that send 2000 invites
Invitation rate = 1.6
Of those 2000 invites
580 people accept the invite (signup)
acceptance rate = 0.29 (29%)
VC = 1.6 * 0.29 = 0.464
Long way to go :)

43. Image: http://www.slideshare.net/timhomuth/think-like-a-growth-hacker
@MikevHoenselaar

44. When was the last time you invited someone to
Dropbox?
(For me it has been years ago)
@MikevHoenselaar
Happens
mostly
once

45. Revenue
People believe your lies, you want them to start
paying for them
@MikevHoenselaar
241
Are they
still lies?

46. 25%
25 of 100 people churn per month
Customer lifetime is 4 months
(100/25 = 4)
CLV = 20 * 4 = € 80
max CAC = 80 / 3 = € 26,50
10%
10 of 100 people churn per month
Customer lifetime is 10 months
(100/10 = 10)
CLV = 20 * 10 = € 200
max CAC = 200 / 3 = € 66,50
2%
2 of 100 people churn per month
Customer lifetime is 50 months
(100/2 = 50)
CLV = 20 * 50 = € 1000
max CAC = 1000 / 3 = € 333
What do you earn per customer per month? € 20
Lots of startups take ⅓ of their CLV as max CAC (in the end it’s up to you)
CLV and CAC
@MikevHoenselaar

47. Spent € 263,25 and you got 3
conversions. CAC is € 87,75 here.
(Notice the € 0!)
@MikevHoenselaar

48. More Dropbox lessons from
Drew Houston (CEO)?
http://vruc.ht/dropboxll
@MikevHoenselaar

49. One more thing
pleassse…
@MikevHoenselaar

50. CTR 3%
conversion 15%
Exit survey
1%
7%
€ 600 ads
€ 2500 setup
363 clicks
€ 5k+ in sales
max CAC was € 60
our CAC was € 104
video tracking
25 units
€ 199
2500 people
@MikevHoenselaar

51. CTR 3%
17%
Exit survey
1%
7%
€ 600 ads
€ 500 setup
425 clicks
€ 6k in sales
max CAC was € 60
our CAC was € 37
video tracking
30 units
€ 199
2500 people
@MikevHoenselaar

52. Scale
Competitors are starting to tell lies about you but
will shoot for the stars!
255
@MikevHoenselaar

53. Let the Growth
Hacking begin
But you can implement
techniques of GH a lot earlier of
course :)
@MikevHoenselaar

54. Inspiration
petithacks.com
growthhackers.com
inbound.org
quicksprout.com
growthhack.com
@MikevHoenselaar

56. @MikevHoenselaar
mike@onlineboswachters.nl
Q&A
Download slides on http://vruc.ht/sbcghmm

60. AND NOW...
@MikevHoenselaar

61. Pivot != iterate
Focus on OMTM
@MikevHoenselaar@MikevHoenselaar

62. 1. What is your business objective?
2. Define your metrics (KPI’s)
3. What is your conversion funnel?
4. Define segmentation criteria
5. Define objectives
@MikevHoenselaar

64. Business model &
stage and metrics
@MikevHoenselaar
Lean Analytics infographic
Get them at
http://vruc.ht/lai

65. 24sessions, Clickly,
Crazylister, Liater, Trylikes,
StoreGecko

66. The Core of
Lean is iteration
This is where
things fall apart

67. People invite their own network
(The ones you invite are most likely in the same
network)
@MikevHoenselaar
declines
when
everybody
is using
your
product

69. Something that has
never ever ever
being said about
marketing metrics
@MikevHoenselaar

70. 1 Number
1 Product
1 Market
1 Name
1 Location
1 Metric
1 Channel

71. is a superpower
A leading, causing metric
Predicts the future and directly impacts a dependent metric.
Current prospects in sales funnel for instance.

72. [NAME] was [ACTIVITY] at [LOCATION] with
his/her [PRODUCT] on.
He/She is looking for the right metric to
see if people at [LOCATION] want to buy
his [PRODUCT]. He believes that [METRIC]
will do that. He starts with a campaign via
[CHANNEL] to sell [NUMBER ] products and
targets [MARKET]. Do you think he has
what it takes?

73. Don’t build
something
without metrics
@MikevHoenselaar
Or a kitten dies

74. ● Customer Acquisition Cost (CAC)
● Customer Lifetime Value (CLV)
● Viral Coefficient
● Customer Retention Rate
● Number of hits
● Page views
● Unique visitors (not always)
● Followers/likes
● Emails collected
● App downloads
Vanity Metrics

75. metrics @ helpdesk
It’s dangerous to assume that
speed automatically equals a
positive customer experience.

76. An inaccurate or
false statement; a
falsehood.