Lean Analytics: Use Data to Build a Better Startup Faster (Lean (O'Reilly))

When you’ve got an MVP, you don’t have a product. You have a tool for figuring out what product to build.

Market) If you find a problem that’s painful enough for people, the next step is to understand the market size and potential.

Conversion rate is simply the percentage of visitors to your site who buy something.

The first thing you’ll notice is the title: The Goal Is to Learn. This

Simply measuring metrics like “time since last use” will be misleading, too, because users are paid to use your tool. They may log in every day because it’s their job to do so; that doesn’t mean they enjoy it. The

goal is to identify a need you can solve in a way people will pay money for at scale.

Exploratory metrics are speculative and try to find unknown insights to give you the upper hand, while reporting metrics keep you abreast of normal, managerial, day-to-day operations.

The first is to measure churn by cohort, so you’re comparing new to churned users based on when they first became users. The second way is really, really simple, which is why we like it: measure churn each day. The shorter the time period you measure, the less that changes during that specific period will distort things.

ARPU is simply the revenue you’ve made, divided by the number of active users or players you have.