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Startup 101 Metrics at Web 2.0 Expo

In Events on 22 April 2008 with Comments

I’m attending the Startup 101 Metrics at Web 2.0 Expo right now. Dave McClure and Hiten Shah are giving at talk about at Web 2.0 about Startup 101 Metrics. They break down the key points in online marketing: (1) Acquisition, (2) Activation (3) Retention (4) Referral, and (5) Revenue. You can remember as AARRR, like a pirate Below are the slides.

         

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As you guys probably realized, I was able to get into Web 2.0.  Can’t exactly say what happened, but am lucky to know some people. The atmosphere was definitely different from that of Startup School. I felt young again as everyone was older than me. I’ve learned a lot from this workshop and attached my own key notes below:

1. Acquisition

What channels? Which user? Why?
A: High Volume (#), Low Cost ($), HIgh Conv (%)
Find the channels have provide these factors. Possible channels:

• SEO/SEM – Paid search and organic
• Blogs
• Email
• Social Media/Networks
• Domain – mini-sites.

Acquisition (Keyword Vocabulary)

• Top 10-100 words
• Your Brand / Products
• Customer Needs / Benefits
• Competitor’s Brand / Products
• Semantic Equivalents
• Misspellings

Things to analyze: Sources, Volume, Cost, Conversion
Key Metrics to Track: Quantity (#), Cost ($), Conversions (%)

2. Activation

What do users do on their first visit?

Example Activation Goals:

•   Click on something!
•   Acount sign up / Emails
•   Referrals / Tell a friend
•   Widgets ? Embeds
•   Low Bounce Rate

Activation Tips: Less is more, Focus on user experience / usability, Provide incentives & call to actions, Test and iterate continuously
Key Metrics to track:, Pages per visit, Time on site, Conversions (ie .sign ups)
Tools: CrazyEgg, Google Analytics 

3. Retention

Retention involves getting your users to come back to your site. 

Example Retention Goals:

• 1 – 3+ visits per month
• 20% open rat / 2% CTR
• High deliverability / Low spam rating
• Long customer life cycle / Low decay
• Identify fanatics and cheerleaders

Email is simple and it works
BUT make unsubscribe easy
80% subject line / 20% body text

Tools: Campign Monitor, MailChimp, TriggerMail, Litmus

4. Referral

Referral generally means viral loops, affiliates that 

• Send to a Friend: Email / IM
• Social Media
• Widgets / Embeds
• Affiliates

5. Revenue