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[500DISTRO] The Only Metric That Matters

Date post:08-Sep-2014
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Josh Elman, Partner, Greylock Partners
  • The only metric that matters Josh Elman @joshelman August 7, 2014
  • Everybody starts at zero
  • With a dream of making an impact
  • But along the way, how do you know if its working?
  • You have to track things somehow but it can be overwhelming
  • Our D7 retention is 60%. D30 is 22%. 250 million PVs in the last 30 daysWe just topped 200,000 sign ups We have a 50% DAU/MAU ratio We have over 1 million downloads Everybody has a data point
  • But where do I start?
  • ARE PEOPLE USING YOUR PRODUCT? Just focus on one thing:
  • Ok, but how can I tell? 1) Usage: Do they use your product how you expect? Track: #users taking core actions each day ! 2) Cycle: Do they use it at the frequency you expect? Track: #users who visit at least N days in a week or month ! 3) Retention: Are they sticky? Will come back to this
  • LinkedIn Circa 2005 Usage: Find and be found ! Cycle: Find: 2-3x/week Track: #users who log in and search per day ! Be found: 1-2x/year(?) Track: response rate to InMail
  • Yelp Usage: Find local businesses/ services. And review them. ! Cycle: Searchers: 2-3x/week Track: #users who search per day Reviewers: 1x/week(?) Track: #reviews / day
  • Facebook Usage: Stay connected with friends ! Cycle: 2-3x/day Track: #users who log in and view News Feed
  • Expedia Usage: Plan a great trip ! Cycle: 3-5x/year Track: #users who search per day
  • ARE PEOPLE REALLY REALLY USING YOUR PRODUCT? So they may be using it once, but
  • Really really using? (aka Core Users) 1) Top of Mind: Do they come directly to your product vs referred by a link or special offer Track: % users with direct traffic / engagement ! 2) Recurring: Do they come back again and again Track: % users who return weekly/monthly ! 3) Referring: Do they share it with others? Track: k-factor, and % users who are referrers
  • Step 1) Analyze month over month usage # days visited in month 1 %whovisitedNdaysinmonth2
  • Step 2) Determine threshold for core 0%# 10%# 20%# 30%# 40%# 50%# 60%# 70%# 80%# 90%# 100%# 1# 2# 3# 4# 5# 6# 7# 8# 9# 10# 11# 12# 13# 14# 15# 16# 17# 18# 19# 20# 21# 22# 23# 24# 25# 26# 27# 28# 29# 30# 31# 32# Reten%on'Rate'based'on'#'%mes'used'in'month'1'
  • Step 3) Understand activation buckets CORE CURIOUS NEW CASUAL COLD 20% 90% 40% 40% 40% 8% 50% 10% 95% 4% 1%
  • Step 4a) Find out why from your data Following more than 30 accounts 1/3 - mutual follows 2/3 - one-way follows
  • Step 4b) Find out why call them!
  • Cherish them. They are your super heroes
  • I have a few core users. I want more!
  • Problem 1: not enough people sign up
  • Clone your core users 1) Word-of-mouth Virality: help your core users describe your product. Say it yourself to the press. Inception! ! 2) Demonstration Virality: have your core users share content and more from your product. Demonstrate their deep usage. ! 3) Infectious Virality: encourage users to bring their friends in so the experience is better for both. Incentives ok too!
  • Problem 2: people sign up, no one sticks around
  • Onboard users all the way to Core 1) Learn Flow: teach your users your product as they sign up. Take your time. They are there to learn. Dont rush it. ! 2) Welcome Week: if users dont do it the first day, nudge them to come back and keep going ! 3) Social Pressure: if friends are on the system, use them to welcome, teach, and connect with the new folks
  • One metric to rule them all: HOW MANY PEOPLE ARE REALLY USING YOUR PRODUCT?
  • The only metric that matters Josh Elman @joshelman August 7, 2014
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