What are the best metrics to track your progress and validate your hypotheses?

In a recent project, we chose to launch our MVP with significant discounts. Our goal? To attract as many ?active users? as possible who can help us refine the platform, rather than just amassing a large user base to boost our egos. Often, it's more effective to release an incomplete product and let users identify errors, bugs, and unnecessary features early on. This approach is more valuable than striving for a 'perfect solution' that may not even fit the market yet.

In my experience, the lean startup method is a game-changer. It's helped me embrace agility and adaptability in my ventures. By iterating and learning from early adopters, I've refined my ideas and fostered a growth-focused culture. This approach has taught me when to pivot or persevere, guiding me through challenges with purpose. Lean startup has truly revolutionized how I innovate.

The lean startup approach is not only applicable to startups but also to established companies looking to launch new products or services or enter new markets. However, implementing the lean startup approach requires a significant cultural shift within the organization. It requires a willingness to experiment, take risks, and embrace failure as an opportunity to learn and improve.

What's the one data point that matters the most i.e. the one that should underpin everything you do? Value to the customer'. Because value to the business is generally inherent to this. Identify what value looks like to the customer, embed this thinking into your teams and you've got strong foundations to build on.

Metrics are an essential component, but RIGHT metrics only. It's important to select metrics that align with your business goals and objectives. For example, if your primary goal is to generate revenue and profit, you might track metrics such as customer acquisition cost, customer lifetime value, and revenue per customer. If your primary goal is to increase customer engagement and retention, you might track metrics such as user engagement, churn rate, and customer satisfaction.

Experiments. It's another crucial part. Test your hypotheses and assumptions in a controlled environment. Use A/B testing at least. As metrics, design experiments must be relevant, feasible, and measurable. This means defining clear hypotheses, and appropriate metrics. As well, as identifying a target audience, and designing prototypes (not MVP) that can be tested and validated in a SHORT period of time.

What missed: - Comprehensive: Metrics should reflect the key aspects of your value proposition and business model + cover all important areas of your product or service, e.g. customer acquisition, retention, revenue, profitability, etc. - Timely: Metrics MUST be measured and reported on a regular basis, in a timely manner. This enables you to track progress and make adjustments quickly before any issues become more significant = money loss.

When it comes to choosing and using metrics, stay focused and avoid getting lost in a sea of data. I know it's easy to feel overwhelmed but use this simple rule: start by identifying a few key metrics that are directly tied to your business goals and value proposition (I hope you do not forget to identify it, right?). These metrics will be your guiding lights, helping you track progress and make informed decisions. However, avoid cementing your metrics! As your business evolves and grows, your goals and objectives may change, and so should your metrics. Don't be afraid to adjust or replace metrics that are no longer useful or relevant. Review metrics regulary.

Once you've gathered your data and analyzed it, it's time to share your insights! Don't keep your findings to yourself. Use simple and clear language, visual aids, and meaningful insights to convey your recommendations to everyone involved. This will help build trust, engagement, and support for your product or service.