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If you’ve been reading through some of our blogs, you’re probably come across the term Lean Startup, a book written by Eric Ries, who describes the term as an agile approach for structuring the progress of your business and continuously adapting strategies where needed. The Lean Startup approach forms one of the cornerstones of our business processes within Lizard Global. In order to measure the actual progress of your business, you’ll need a solid methodology to work with. ‘Lean Analytics’ is a term coined by Benjamin Yoskovitz and Alistair Croll in their book of the same name, and can be defined as an extension of the Lean Startup approach. It is used to measure the growth of your business by analyzing the maturity phase of your product and the specific actions and metrics that drive the right kind of growth during that stage.
At Lizard Global, we use Lean Analytics to optimize our agile ways of working, and the overall growth of our own business. Building technology is just a first step. In order to turn your solution into a successful product, it’s crucial to set the right KPIs, which are going to be dependent on your target audience, the type of technology you have, and the current stage of your business. By carefully picking your KPIs and tracking them, you enable your business to measure its performance and instantly act upon your analyzed data. In this blog, we show you exactly why we decided to implement this approach, how we use it for keeping track of our progress, and how we continuously adapt our strategies based on the data we analyse.
How do we apply Lean Analytics?
Generally, Lean Analytics is about measuring progress through the “build-measure-learn” feedback loop created for validated learning. The questions we focus on using Lean Analytics are the following:
- What should we measure?
- How should we measure it?
- Why does it matter?
Lean Analytics focuses on 5 fundamental stages businesses can use to frame and aim their KPIs. Following these five elements, we can easily collect and analyze the relevant data, keep track of the success of our growth strategies, and immediately adapt where needed.
Empathy: By identifying the problem that needs to be solved, we can address the most difficult question of all three: Why does it matter? Or, will anyone care? Following the principles of design thinking, we dive into the needs of the end-user and identify why they need that specific digital solution for their problem.
Stickiness: One of the most difficult parts of turning an app into a success is customer retention. This stage focuses on the question: are users coming back to your product? In other words, how do we get people hooked?
Virality: This stage is all about the way your product gets advertised to the outside world. Once your product is there and a few users are using it on a regular basis, your added value has been validated and your solution is ready to be taken to a next level. This is where you try to get as many users to your platform as possible. It’s time to ask the following question: Are customers sharing my product or service with others? What can I do to stimulate this?
Revenue: After you have gone viral and your USPs have been confirmed by the greater mass, you are ready to monetize your solution. At this point, you need to get results from your hard work: you need to create revenue. At this stage you need to ask yourself: who your potential customers are, what you can sell to them, and how you can track your revenue success.
Scalability: After successfully monetizing your product, its lifecycle hasn’t ended yet. You can research the possibilities to scale up your business by diversifying geographically, or looking for additional verticals/industries your app could contribute to. This will enable your business to keep a sustainable and constant growth.
The most essential tool we use during the process of Lean Analytics is the One Metrics That Matters (OMTM), which we apply to help determine the right KPIs tailored to your solution and pinned objectives. It’s all about finding the right thing to track at the right time, based on factors such as the current state of your business, type of business, and the industry you’re active in. The OMTM supports us to create and encourage focus and keeps our team on track regarding measuring growth and success.
The Hook Model
At Lizard Global, we use Lean Analytics by focusing on the so-called “Hook Model”, a term coined by Nir Eyal. The Hook Model is a four-phased process businesses can use to develop products that users will stick to. The ultimate goal is to achieve voluntary and high-frequency engagement, by creating an app users will embrace in their daily lives. Basically, the Hook Model is all about creating a customer habit. The Hook model consists of four phases:
- Trigger: how does the user get in contact with the application?
- Action: what is the simplest step for the user to take to use the app?
- Variable Reward: is the user satisfied with what they get? Or do they want more?
- Investment: what work does the user have to perform to increase the likelihood of returning?
Generally, the most important phase of the Hook Model is the trigger phase. First impressions are the most important impressions to make sure your users return to the platform and understand the added value your app is providing.
How can we help you?
At Lizard Global, we are specialized in growth and innovation, and Lean Analytics forms an indispensable part of our business model. Our experience in helping our clients conceptualizing and developing digital solutions allows us to sense exactly what your product needs in order to grow in a paced and sustainable way. Our team knows how to ask the right questions at the right moment, and focus on what’s really important using the OMTM methodology.
Want to know more about what we can do for the development and successful growth of your application? Drop us a line and we tell you all about Lean Analytics and how we can help you focus on the unique character and challenges of your business.