How to Optimize Your Product Using Analytics
Dan Olsen, a product management consultant, discusses optimizing products using analytics, assuming the product is already launched. He outlines the “Lean Analytics Process,” starting with identifying important metrics, establishing baselines, and assessing upside potential. The “AARRR” (Acquisition, Activation, Retention, Referral, Revenue) framework, or “Startup Metrics for Pirates,” is introduced as a holistic way to think about metrics for any business. Olsen emphasizes focusing on the “Metric That Matters Most,” often prioritizing retention first for new products. He advocates for analyzing retention through cohort curves to gauge product-market fit, aiming for a flat, non-zero tail. Finally, he explains how to break down business revenue into an equation to identify actionable metrics, illustrating with a Friendster case study where adding an address book importer significantly boosted viral growth by targeting the “invites per sender” metric.
Source: Product School