Lean Analytics. Use Data to Build a Better Startup Faster Alistair Croll, Benjamin Yoskovitz

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• Lean Analytics: Use Data to Build a Better Startup Faster
• Praise for Lean Analytics
• Dedication
• Foreword
• Preface
  • Who This Book Is For
  • How This Book Works
  • The Building Blocks
    • Customer Development
    • Lean Startup
  • Wed Like to Hear from You
  • Safari Books Online
  • Thanks and Acknowledgments
• I. Stop Lying to Yourself
  • 1. Were All Liars
    • The Lean Startup Movement
    • Poking a Hole in Your Reality Distortion Field
    • Airbnb PhotographyGrowth 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 McClures Pirate Metrics
    • Eric Riess Engines of Growth
      • Sticky Engine
      • Virality Engine
      • Paid Engine
    • Ash Mauryas Lean Canvas
    • Sean Elliss 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)
    • Backupifys 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 Youre 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 Youre At
  • 15. Stage One: Empathy
    • Metrics for the Empathy Stage
    • This Is the Best Idea Ive Ever Had! (or, How to Discover Problems Worth Solving)
    • Finding a Problem to Fix (or, How to Validate a Problem)
    • Signs Youve 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
      • Dont 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 Isnt 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
    • OfficeDrops 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 1From Links to a Community
    • Engagement Funnel Changes
      • Bottom Line
    • Reddit Part 2Theres 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 Dont 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
    • Changingor 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, Dont 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
      • Dont Eliminate Your Gut
      • Ask Good Questions
• A. References and Further Reading
• B. About the Authors
• C. The Lean Series
• Index
• About the Authors
• Copyright

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