Thursday, March 17, 2011

Lean Metrics

Chris Eben hosted this morning's Thursday session of Lean Coffee Toronto at The Working Group.

We chatted about Metrics, including:
  • What are metrics? Defining the things that are most important to your business
  • Don't base decisions on metrics until you know they're the right metrics
  • Start at revenue and work backwards to find out the actions that lead to revenue
  • Be careful about which numbers you're basing decisions on:
    • Does your sales funnel indicate whether your pricing is wrong?
    • ...or if you're trying to sell to the wrong people?
  • Try to see where the bottleneck is -- eg: What are they key indicators of dropoff?
  • Don't make decisions on the "marketing/vanity" metrics
  • Another thing aggregate metrics often don't tell you:
    • One user might be 10x more valuable than another
    • How do you know which ones?
  • "Stop listening to" and "start watching" your customers
  • Product-market fit: 40% of your users would care if you disappeared
  • Can't apply metrics from one customer segment to another
    • ie. early adopters vs. majority
  • Track at least one key metric in each part of the AARRR model
  • Practical example:
    • If you notice that conversions suck after 1 month, could be "honeymoon period"
    • Trim eval period back to 10 days and improve conversions
  • One of the best tools: Another set of eyes, second opinion
  • OKCupid demographics data set overviews -- generally useless but entertaining
  • Need to change your key metrics you have as you move into new business phases

We also spoke briefly about my recent software project management survey, how survey design is difficult, and how we could spend an entire session talking about surveys. I'd be happy to plan and moderate such a session, but would need a location.

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