Lean Analytics Cycle
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The document discusses the lean analytics cycle of metrics, hypothesis, experiment, and act. It provides examples of how Hello Bar used this process to improve their installation rate. They found a low installation rate in metrics, hypothesized that more options would increase installations, tested this in an experiment, and achieved a 40% increase. Through dozens of experiments, their rate increased by 89%. The document encourages analyzing metrics to find opportunities, forming hypotheses through research, rigorously testing hypotheses, and making data-driven decisions.
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Lean Analytics Cycle
- 1. Lean Analytics Lean Product & Lean UX Silicon Valley - July 2014 Hiten Shah hnshah@gmail.com Download the slides: h p://kiss.ly/leanprod2014
- 3. Continuous Learning & Improvement
- 4. Don’t know where to start?
- 5. Wondering if you’re working on the right things?
- 6. Or, you just want to hear me babble!
- 8. Lean Analytics helps you Optimize for Learning
- 9. Lean Analytics Cycle AVINASH KAUSHIK HTTP://KISS.LY/LEANAC
- 10. Metrics → Hypothesis → Experiment → Act
- 12. What is Hello Bar?
- 21. Metrics Figure out what to improve Hypothesis Make an educated guess Experiment Test your guess Act Decide what’s next
- 22. Our funnel showed a low installation rate Hello Bar Funnel Metrics Steps Visitors Homepage URL Entries Created First Bar Completed Registration Installed Totals 15068 1868 716 688 398 % prev step 12.40% 38.33% 96.09% 57.85% % drop off -87.60% -61.67% -3.91% -42.15% % of visitors 100% 12.40% 4.75% 4.57% 2.64%
- 23. We achieved a 40% increase for our installa2on rate with just this one first experiment. The Lean Analytics Cycle At Work
- 24. Original Hello Bar installation screen
- 25. Metrics Figure out what to improve Hypothesis Make an educated guess Experiment Test your guess Act Decide what’s next
- 26. Find out why people don’t install Hello Bar
- 27. Didn’t Meet My Expectations
- 28. I Had Trouble Installing It
- 29. I Don’t Have A Website
- 30. Not Ready To Install
- 31. Other
- 32. Hello Bar Experiment Hypothesis If more installa2on op2ons are given, then more people will add Hello Bar to their website due to the need for a WordPress plugin and ability to email the code to someone else.
- 33. Metrics Figure out what to improve Hypothesis Make an educated guess Experiment Test your guess Act Decide what’s next
- 34. Created a new flow to test
- 35. I can install code myself.
- 36. 41.67% responded with “WordPress Plugin”
- 37. 25% responded with “email my developer / web designer”
- 38. I need help.
- 39. Metrics Figure out what to improve Hypothesis Make an educated guess Experiment Test your guess Act Decide what’s next
- 40. Full funnel metrics for the experiment Variation Steps Visitors Homepage URL Entries Created First Bar Completed Registration Installed Totals 7456 906 342 329 276 % prev step 12.15% 37.75% 96.20% 83.89% % drop off -87.85% -62.25% -3.80% -16.11% % of visitors 100% 12.15% 4.59% 4.41% 3.70% Control Steps Visitors Homepage URL Entries Created First Bar Completed Registration Installed Totals 7469 925 353 341 197 % prev step 12.38% 38.16% 96.60% 57.77% % drop off -87.62% -61.84% -3.40% -42.23% % of visitors 100% 12.38% 4.73% 4.57% 2.64%
- 41. Resulted in a 30% installation rate increase HTTP://ISVALID.ORG Experiment resulted in a 40% improvement
- 42. ACer a dozen more experiments, our installa2on rate is now hovering between 5% and 7% That’s an addi;onal 89% increase!!! The Lean Analytics Cycle At Work
- 43. Metrics → Hypothesis → Experiment → Act How You Can Put It Into Practice
- 44. Metrics Figure out what to improve
- 45. “What gets measured, gets managed.” Peter Drucker
- 46. Baselines DATA DNA EBOOK HTTP://KISS.LY/OPTDATADNA
- 47. Funnels KISSMETRICS FUNNEL REPORT HTTP://KISS.LY/KMFUNNEL
- 48. SaaS Funnel KISSMETRICS FUNNEL REPORT HTTP://KISS.LY/KMFUNNEL
- 49. eCommerce Funnel KISSMETRICS FUNNEL REPORT HTTP://KISS.LY/KMFUNNEL
- 51. Spreadsheets and Calculations HELLOBAR HTTP://HELLOBAR.COM Steps Visitors Homepage URL Entries Created First Bar Completed Registration Installed Created Second Bar Totals 15068 1868 716 688 398 193 % prev step 12.40% 38.33% 96.09% 57.85% 48.49% % drop off -87.60% -61.67% -3.91% -42.15% -51.51% % of visitors 100% 12.40% 4.75% 4.57% 2.64% 1.28%
- 52. Hypothesis Make an educated guess
- 53. “A solid test hypothesis is an informed solution to a real problem – not an arbitrary guess. The more research and data you have to base your hypothesis on, the be er it will be.” — Michael Aagaard, h p://kiss.ly/abthypo
- 54. Research Tools & Tac;cs
- 56. Jobs To Be Done #JTBD HTTP://JOBSTOBEDONE.ORG
- 63. Email a survey to people HTTP://SURVEYMONKEY.COM
- 64. Ask people why they canceled HTTP://SURVEYMONKEY.COM
- 65. Get feedback right when they cancel
- 68. Find out what words people use to describe your product HTTP://QUALAROO.COM
- 69. Learn about people’s expectations HTTP://INTERCOM.IO
- 70. Learn what frustrates people HTTP://INTERCOM.IO
- 71. More actionable reading… QUALITATIVE DATA HTTP://KISS.LY/QUALABT
- 72. Experiment Hypothesis Formula DATA DNA EBOOK HTTP://KISS.LY/OPTDATADNA
- 73. Experiment Test your guess
- 74. Only 1 out of 5 tests win. 4 out of 5 tests cost you money. $
- 75. 1) Which top metric are we trying to improve? 2) What can you anchor your metric against? 3) What is your hypothesis about why this metric is at x%? 4) What do we expect from this experiment? 5) What was the result and what did we learn from it? HTTP://KISS.LY/6QSAB Answer key questions for each experiment
- 77. Don’t copy “best practices” blindly
- 78. Learn what works best for you
- 79. Act Decide what’s next
- 80. Explore the results and make data informed decisions. THE ANALYTICS THAT MATTER TO FACEBOOK HTTP://KISS.LY/FBINFORM
- 81. KISSmetrics A/B Testing Report KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
- 83. We know that people love Google Analytics
- 84. KISSmetrics Experiment Hypothesis If people authen2cate with Google, then more people will sign up due to their exis2ng familiarity with Google Analy2cs and alignment with our winning headline.
- 85. KISSmetrics Homepage Test Control
- 86. KISSmetrics Homepage Test Variation
- 87. KISSmetrics Homepage Test Signup Conversion Rate KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
- 88. KISSmetrics Homepage Test Received Data KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
- 89. KISSmetrics Homepage New Control
- 90. Inspiration
- 91. KISSmetrics Homepage New Test Variation
- 92. KISSmetrics Homepage Test Signup Conversion Rate KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
- 93. KISSmetrics Homepage Test Received Data KISSMETRICS A/B TESTING REPORT HTTP://KISS.LY/KMABTEST
- 95. Metrics Figure out what to improve Hypothesis Make an educated guess Experiment Test your guess Act Decide what’s next
- 96. Hiten Shah hnshah@gmail.com @hnshah You will get all you want in life if you help enough other people get what they want. Zig Ziglar Download the slides: h p://kiss.ly/leanprod2014