Startup Metrics That Matter masterclass
An introduction to 15 metrics for startups. (Best suited to post-launch startups, pre-seed and seed stage.) Pete's rough notes and screenshots: https://docs.google.com/document/d/1WSQIwiwNlSE4R6bMPO4hazQurECPsmXw9wUbd8VNU2o/edit?usp=sharing Worksh...
NDRC Startup Metrics That Matter Masterclass
23 June 2021
- Why metrics? Make decisions, not guesses.
- SISU prescription beauty salons
- Cost of Acquisition
- If we get low enough CAC we can give first consultation free
- Now it becomes a conversion cost
- Spend per practitioner (per hour)
- Look at these metrics on a daily basis
- The most important
- Spend per doctor per session
The Must-Have Survey (Sean Ellis)
- How disappointed would you be if you no longer had this product?
- Different to satisfaction. Identifies an emotional connection (or not).
- ~40% highly disappointed = you’re on to something.
- Further down the track
- On a cohort basis, retention over time.
- Common mistakes or pitfalls
- Data tells you the what, but not the why.
- Not investing in the data setup early enough. Do you have access to the right data? Events the customer takes etc.
- Use cohort numbers, not just top-line, aggregate numbers.
- Correlation vs causation.
- Growth is about connecting people to the core product value.
- Always on, compounding ways of growing.
- Pre-seed and early stages
- Can you get to $100m ARR in 6-7 years?
At pre-seed, everyone knows the numbers are wrong. But VCs want to see how you got there -- how you think.
Size an opportunity at a scale that’s available to you.
More about the narrative than the numbers. Smart numbers can be small.
In our room someone described these big numbers as “please listen to me numbers”!
How much money do you make on a per-transaction basis?
Allison Kopf on pricing
- Don’t tie price to the cost of your product
- Look at the value it provides to the customer
- Do market research. Talk to customers.
- Saving time
- Saving money
- Peace of mind
- Access to market
- Put a price tag on your value proposition.
- E.g. if automating the job of someone in the business.
- Cost is $X per year
- Price according to that saving
- Marketplace -- getting an extra 10% of sales. Tie your pricing to this.
- You can and should increase your product pricing. But don’t start as low as possible.
- “Do you want that value?” vs “Do you want to pay this dollar price?”
- Think of your customers as partners. Work with them early on to establish price.