I was talking to a start-up founder and was pleasantly surprised at how data informed their decisions were.
There seems to be largely two kinds of startup founders –
One who trusts data driven/data informed product building.
And then those who use data and analytics as an after thought.
As a founder, you get to choose where you focus on – and when used right, data informed product building can be truly a competitive advantage
And this isn’t about using shiny new toys or algorithms but to get fundamentals right –
#1 Well defined North-star metrics and success framework – Aligned to your company’s core mission. Example, is that ‘daily or weekly active usage’ if you are growth focused? Avoid too many metrics and/or vanity metrics.
#2 Engagement <> Stickiness : Are your customers returning because of notification or through their own volition? Do you have metrics tracking that. What is a meaningful product interaction?
#3 Retention – How does your quick ratio look like? Do you look at retained and win-back cohorts over time? If you have net positive growth but very few of them are retained, then product doesn’t seem to have a core value prop and is acquiring users through growth hacking probably…
#4 How do you measure health – Across growth, user adoption, market metrics and retention
#5 Segmentation – Are you monitoring growth across multiple dimensions that are relevant to your business?
What has been your focus as a start-up founder in making data assets your competitive advantage?
**************************************************
#startups
#datadrivenculture
#reviewswithranjani