Before you can improve anything in your product, you should have a solid understanding of your current baseline performance. Keep in mind that it will take you a few months to properly gauge your baseline performance which is why some companies never do it.
To run a baseline analysis, here are a few questions that I recommend answering:
- Is the data accurate? How do we know?
- What is the average rate for this KPI?
- How long does it take to complete this action/flow and how do conversions change if we make the window (5 minutes, 24 hours, 30 days) smaller/larger?
- Are users skipping steps or returning to the previous steps? Useful for flows with multiple steps like onboarding.
- How does conversion differ across common segments such as geographic, demographic, marketing campaigns and behavioral actions?
- How do our best users perform or what is the ideal performance?
Remember to track these answers across weekdays/weekends and any other seasonal changes in your business. You will also need a few hundred data points (at a minimum) before you start to feel confident in the data.
Actions for This Week:
Does your team know the baseline performance of your product across major KPIs? This includes areas like onboarding, retention, usage, etc. If not, then run through the questions above using the last 6 months worth of data.
Interesting Reads and Resources
- I love this Mckinsey piece on biases and decision making.
- The language we use in sales, marketing, and our life matters. I love this piece on the subtle effects of the words that we use to justify actions (or lack of) with other people.
One more thing before you go! Are you getting the data you need to grow your company?
I find most companies are stuck with high-level metrics and they aren't able to properly understand what actually drives user growth for their web and mobile products. To do that, you need the right data and the right tools.
If this sounds like your situation, then you should download our free tracking plan (and tutorial video). This is the document that you should create
before you ever implement tools like Mixpanel, Amplitude, Segment, and Intercom. Click the image below to download your own free tracking plan (and tutorial video).