The Hack - 6 Key Metrics You Must Worship
AARRR stage - Revenue
Growth Problem - Which Metrics Should be
Religiously Tracked
Haxplanation:
You started in the growth hacking game because you get excited
by numbers. Crazy numbers, that is. Like growing your users base
6000% in under a year. Or hacking revenue growth to 300%
month-on-month. You know, those kind of numbers. As a growth
hacker, you never signed up to learn a new language though.
MRR. LTV. CMRR. MAU. DAU. CAC. MQL… Blah! Need we go on? Sad but
true, metrics are as much a part of the growth hacking game as your
gold plated iPhone 6. Oh sorry, are you not one of the
co-founders of Facebook? In that case, as much as your desktop drum set
.
But you have no choice. A growth hacker lives and dies by the
metrics! So, put on your oversized hipster glasses, grab a soy
latte and prepare for a session of rote learning. And here you were
thinking that growth hacking was all about beating the co-founders
at table tennis…
Just Hack It:
- So, let's get down to this metrics business. Out of all of the
krazy acronyms that you should be tracking, there is a small list
of those that will fill your phone's inbox with smiley face
emoticons from your investors
- That alone is worth the price of filling your brain cavities
with more senseless acronyms
- Without further ado, meet your new best (nerdy) friends:
-
- Churn - your arch-nemesis. The one metric you need to beat into
submission until it's as small as a mouse. See customers
cancelling? Kung-fu their asses with a discount - that'll do it.
For now.
- CMRR (Contracted Monthly Recurring Revenue) - this mouthful of
a metric measures something important. Just don't try to work it
out at home - best left to the big-wig growth hackers at places
like Amazon
- Cash - this one needs no introduction. If you ain't got much of
this then you need to start
hustling
- LPC (Lifetime Profit per Customer) - shows you how much you're
really making from each sucker, ehm, user over the course of their
custom with your shady operation. Pretty useful stuff but a little
hard to compute
- Customer Acquisition Cost Ratio - you know all that VC money
that you've been blowing on 'marketing' over the last few months?
Well, this metric will tell you how long it will take to recoup it
all. One of the more depressing numbers to look at so don't bother
with it on Fridays
- Cost Per Acquisition - you know this one. Oh yeah - you KNOW
this one. It's the one the CEO always tells you to keep under
control. But then you go and try that new awesomes ad exchange or
upload a new custom audience into Facebook. Remember, admitting you
have a problem is half the battle
There… Wipe the sweat of your glasses and get back to reading
Buzzfeed. Just the fact that you (sort-of) know what these mean
puts you well ahead of the pack
Ok, ok. Go and get yourself another soy latte - you deserved
it!
Source or Inspiration:
http://readwrite.com/2010/09/05/6-saas-metrics-you-should-trac