Chapter 7: Measure

Chapter 7: Measure

1. Cohort analysis: this is one of the most important tools of startup analytics. Instead of looking at cumulative totals or gross numbers such as total revenue and total number of customers, one looks at the performance of each group customers that comes into contact with the product independently

2. Pattern for making a pivot or preserve: poor quantitative results force us to declare failure and create the motivation, context, and space for more qualitative research. These investigations produce new ideas – new hypotheses – to be tested, leading to a possible pivot.

3. Tuning the engine: Once the baseline has been established, the startup can work toward the second learning milestone: tuning the engine. Every product development, marketing other initiative that a startup undertakes should be targeted at improving one of the drivers of it growth models.

4. Pivot or preserve: If we are not moving the drivers of our business model, we are not making progress. That becomes a sure sign that it is time to pivot. When a company pivots, it starts the process all over again, reestablishing a new baseline and then tuning the engine from there.