Result Measuring Methodology

Lean Strategies for Startups and Innovative Ideas Fundamentals of Lean Strategies for Business
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Transcript

The Lean Startup after we have been the product we have tested so against what what we are going to measure the results. So, we are going to measure the results again, certain matrices the quality of matrices need to be actionable means the matrices should show a cause and effect relationship between the matrices. What will happen some if, let's say, what what is happening, what is the cause and what is its effect? For example, how many customers are we joining So, what how many of them are retained. So, there's a cause and effect relationship or we are able to show if we launched this particular feature in the product in the product, what was the impact on the customer retention ratio or customer usability ratio or how many new customers we were able to contain. So, it should show some cause and effect relationship between the two different things so that it is actionable.

And it has to be accessible means it has to be visually understand By customer by the startup by the employees, all employees are not able to access certain matrices by themselves they need system they need a visualization and they may not understand it. So, you need to train the people so that they understand those particular matrices, how to read the chart, how to read the matrices, how to read the results, so that they are clear on how to understand the matrices and what to figure it out from them. And finally, if the data which you are presented has to be auditable, rather than playing a blame game that okay you blame on the data you blame on the features do you blame on the employees you blame on the project management? So there should not be a blame game in the author in the process, the results which are displayed has to be auditable has to be correct.

So that the employees are feeling more confident on the matrices rather than just sharing. Sharing the numbers. They are we feel more comfortable and they can accept the results. Take necessary actions. So, after we have collected the matrices we collected data the next process is to analyze the data. So, how we analyze the data there are a couple of types of analysis.

One is cohort analysis the traditional matrices are accumulative and then So, they are not really four they will not really work when you are continuously developing new features Introducing the new features. So, community metrics will not be able to give you a very good picture of how the data is affecting the certain matrices. So, we do cohort analysis cohort analysis means after you have developed certain features before you maybe for a week or two weeks or that that becomes a cohort. So, a group of customers who are joining after launching certain product certain features and then before or after joining certain features they are different groups because they are using different type of product. So, how they are behaving after each launch of the features, so, that becomes a cohort. So, what is the impact on the customer retention?

What is the impact on revenue? What is the impact on costs? What is the impact on the usability and return ratios? So, what are the impact of certain different features that big that is easier by cohort analysis, if you use a normal traditional method bar charts or any cumulative matrices, that will not give you a very good picture of the the picture the results because they are accumulative they are the results may accumulate previous features previous one time spending on the marketing. So, that means, you may not you may be mixing the ideas you may get a rosy picture by by looking at certain when looking at those accumulative matrices, but cohort analysis will give you a very clear picture of how the customers are behaving especially are reacting to the launch have different different features. Another way of testing a measuring the result is a split testing.

So, what is split testing means you are developing two different features at the same time and they split into two different customers to test their behavior to test their their feedback. So, it the higher feedback something can get mean that those with to understand which features are more important than the others. That's why we do split testing. What is a Kanban method means Kanban is may a way of project management where we restrict the capacity of the team to offer backlog so there are many features we want to develop. So we take up only a few developer features at one point of time. So there may be in the backlog they may be in the maybe in the progress and they may be on the belt and they may be on the validated so there are no more than three in each bucket.

So there are buckets backlog in progress built and validated. So, we never take any other new project unless the all the backlog is clear. So, once let's say we move the F into validated procedure is validated. So, f will come to validate it the in progress D will come to build and then after that the A will come into the progress and then you can add one more into the backlog. So, that way you are able to maintain your feature prioritizing the features which will go first into the development phase and you're not stressing out your resources. So, this is one way of progress management.

So, there are so, what we are doing is the all the measurements and matrices depend on what kind of knowledge we are looking for the board and what will happen if we get this knowledge and what what we are going to do with this knowledge. So, what So, that is what we that is the objective of Measuring the results and that is the objective of how we what are we doing with the results

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