Cosi102

* **READING**: <a href="/content/topics/homeworks/hw_readings_102/80_hw_102_leanstartup_10/">(R) Read LS Chapter 10</a>

*Reminder: Readings are your responsibility. You will be expected to come to class prepared, having read the material, and ready to participate in the discussion*

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### Logistics
* Ok to sit in the first row of the back section. But not behind that. Teams sit together
* Adding a class where all projects present to each other, early on
* If for some reason you did not submit the MVP work by the cutoff, as for an extension!

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### 3x5 card feedback
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* Confused by grading. What does it mean to have a "meets expectations" (5x)
  * Lets look at the blurb for the MVP assigment and discuss it.
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* About 50% do the reading and 50% don't
* Reasons:
  * Too much reading
  * Students find it difficult to identify and remember the key points. Would like me to provide them!?
  * No Slides? THESE are the slides!
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* Cold calling is stressful (5x) (One person likes it).
  * Would you prefer a snap question on Moodle?
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* More interactivity. Maybe reserve 10 minutes at end for teams to talk to each other (5x)

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## Lean Startup Discussion

* <a href="/content/topics/leanstartup_book/08_ch8/">Lean Startup Chapter 8: Pivot</a>

* <a href="/content/topics/leanstartup_book/10_ch10/">Lean Startup Chapter 10: Grow</a>
  
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<h2 id="the-funnel">The Funnel</h2>

<ul>
  <li>Getting from random to a paying customer</li>
  <li>Metaphor useful for modeling, planning and execution</li>
  <li>Identify the key ‘stages’ in relationship between prospect and business</li>
  <li>Each stage needs to be somehow measurable!</li>
  <li>This framework will inform the metrics you collect, your decisions around a pivot and even how your operating model is designed</li>
</ul>

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<h3 id="stages-one-example">Stages (one example)</h3>

<ol>
  <li>Acquisition (or awareness). A potential customer has found out about our product or web site</li>
  <li>Activation. They have taken the “action that we want them to”</li>
  <li>Retention – They are coming back, using, signing up for a free trial, to show that we are rataining them</li>
  <li>Referral – They are telling others about our product, sending them referral links, actively recruiting them</li>
  <li>Revenue - They are paying</li>
</ol>

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<h3 id="applications">Applications</h3>

<ul>
  <li>Makes us really think about what the key metrics are to collect</li>
  <li>In helps us identify our engine of growth</li>
  <li>Measuring the metrics in cohorts informs the tuning of the engine</li>
  <li>Permits the modeling (prediction) of how many at each stage</li>
  <li>Based on marketing and other investments</li>
</ul>

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<h2 id="tuning-the-engine-of-growth">Tuning the Engine of growth</h2>

<ul>
  <li>What is <em>an engine of growth</em>? It’s A metaphor and a financial model</li>
  <li>Approach
    <ol>
      <li>Identify key stages of relationship with customer</li>
      <li>Measure customers at each stage</li>
      <li>Analyze impact on financial model</li>
      <li>Tune the engine</li>
    </ol>
  </li>
</ul>

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<h3 id="broader-view-of-the-stages">Broader View of the stages</h3>

<ul>
  <li>Visit: users come to the site from various channels</li>
  <li>Repeat: come back to the site because they liked it.</li>
  <li>Register: request a log in or register to become a user</li>
  <li>Activate: actually activate their account (respond to an email)</li>
  <li>Retain: come back at lease X times and use the site repeatedly</li>
  <li>Refer: they refer their friends within X days</li>
  <li>Pay: Actually send you money within X days</li>
  <li>Abandon: Don’t log in again after X days</li>
  <li>Cancel: Actually cancel their account</li>
</ul>

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<h3 id="measure">Measure</h3>

<ul>
  <li>Which stage can you actually measure in your product or service?</li>
  <li>Be very precise about the ones you decide to measure</li>
  <li>You can’t/shouldn’t measure all of them</li>
  <li>The ones that matter to you are the ones that tie in with your engine of growth</li>
</ul>

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<h3 id="model">Model</h3>

<ul>
  <li>How do you plan to make money or achieve your objectives?</li>
  <li>Remember the different types of engines of growth
    <ol>
      <li>Sticky Engine of Growth (subscription)</li>
      <li>Viral (users invite other users)</li>
      <li>Paid (simple purchase, one shot)</li>
      <li>Accessory (in product purchases)</li>
    </ol>
  </li>
</ul>

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<h3 id="tune-make-changes-see-the-impact">Tune: Make changes, see the impact</h3>

<ul>
  <li>Now that you know what you’re optimizing for</li>
  <li>And you have a way to see before and after</li>
  <li>You can experiment and tune your engine</li>
</ul>