Identifying Key Metrics for Zoom using AARRR Framework

Assignment Identifying Key Metrics Avi Tankaria

Problem Statement DESCRIPTION You have recently joined as the Product Manager (Analytics) at Zoom, which is one of the fastestgrowing SaaS startups. Zoom is the leader in modern enterprise video communications, which provides a cloud platform for video and audio conferencing, collaboration, chat, and webinars. It helps businesses and organisations bring their teams together in a frictionless environment. Your first project at Zoom is to build a web-based analytics dashboard that will track all the relevant metrics across the lifecycle of the product. For this, you need to first identify the relevant metrics that you will monitor for the different stages and then build a wireframe for the dashboard, which will help track all these metrics.

ELEMENTS TO CONSIDER In one of the previous sessions, you learnt the AARRR framework for prioritisation of metrics. It is a common framework, which was proposed by Dave Mcclure. AARRR, which stands for acquisition, activation, retention, referral and revenue are the different stages of a user’s journey through your product. You can use this framework to find the relevant metrics for Zoom.

Assignment Instructions DELIVERABLES 1. First, you have to identify all the relevant metrics that Zoom should monitor across the lifecycle of the product. You also need to provide a brief explanation for choosing each metric.

2. Second, you have to build the wireframe for the analytics dashboard, which will help monitor all these relevant metrics. This dashboard will help you to visually track, analyse and display key metrics and data points to monitor the health of the product.

SUBMISSION GUIDELINES 1. In your final submission, identify the relevant metrics (along with an explanation of why you will use them) and then share the screenshots of your wireframes.

2. You can add your responses in the submission file attached below.

3. Convert this presentation into PDF format for the final submission.

Recap - AARRR Framework Retention

Acquisition

A

A Activation

R

Find the core Concept

R

R

Revenue

Referral

Part 1 Identifying the relevant metrics for Zoom based on the AARRR Framework

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Acquisition Metrics ❖ Number of successful signups. ❖ Number of app downloads. ❖ CAC (Customer Acquisition Cost) – This metric measures how much money is spent on sales and marketing activities to acquire customers and how long will it take to recoup initial investments. ❖ CLV (Customer lifetime value) – This metric measures the revenue generated by a user over his/her lifetime as a customer. CAC greater than CLV is a red flag and corrective measures need to be taken.

Starting with number of people availing the services provided by Zoom by signing up and subscribing for services, will let us know the acquisition efforts across various channels. This also helps us derive the acquisition cost per user as well as determine the most effective channel for customer acquisition.

Activation Metrics ❖ Number of signups for Zoom premium membership. ❖ Activation Rate – This metric helps analyse the percentage of acquired customers that are actually using the product. ❖ Number of users who scheduled their first meeting on Zoom. ❖ Average onboarding time – This metric helps analyse the time taken by customer to start using the product. If the customer takes too long to onboard then some corrective measures are required to rectify the same.

Activation shows percentage of users who achieved/found value, out of total acquired users and activation can be tracked through the above metrics.

Retention Metrics ❖ Customer retention rate – The percentage of customers you want to retain, relative to the number of customers in the initial period. Customer retention rate also gives an indication of how loyal the customer base is. By tracking and benchmarking CRR we can find new ways to improve the areas of business. ❖ Number of meeting conducted/attended by a particular user account. ❖ Meeting minutes per month. ❖ Churn rate – It is important to track how many customers are lost over a period of time to understand the company’s retaining ability.

Customer retention indicates the number of users who continue using/paying for our product.

Retention can be measured through number of unique users attending the meeting with Zoom and how many minutes they spend per meeting in a month. These metrics gives a overall picture of the Zoom usage by our customers and who among them are actually going to continue our service.

Revenue Metrics ❖ Average revenue per user(ARPU) - This metric can help increase revenue/customer base.

Once we’ve gotten our churn rate under control and have a reliable way to acquire customers, the keys to increasing the revenue you’re receiving are up-sells and cross-sells. ❖ Average annual contract value(ACV) - Annual Contract Value (ACV) is the average annual revenue generated from each customer contract, excluding fees. ❖ Monthly recurring revenue(MRR) - In order to make business sustainable, it is important to realize the fixed revenue that is incoming every month. This will help in recuperating the upfront investments made at the beginning along with making steady progress on development initiatives and resources. ❖ Customer life time value(CLTV) - The total revenue you can expect to get from each customer is your average order value divided by one minus the repeat purchase rate, or $50 / ( 1 - 0.1) = $55.56. Subtract your customer acquisition cost from that, and you get a customer lifetime value of $40.56.

Referral Metrics ❖ ❖

❖ ❖

NPS(Net promoter score) - It is used to measure the loyalty of a company’s customers. NPS gives quick and reliable feedback from customers.

Viral Coefficient - It is the number of new users an existing user generates. This metric calculates the exponential referral cycle. This metric will help us understand if our referral scheme is actually making an impact or not.

Number of users provide rating at the app store.

Number of users follow Zoom in social media channels.

Referral is another important aspect to predict product future and can be measured through various metrics. Those users who finds value in our service will be retained and promoted to premium bucket. These are the people who results high NPS during survey. And also users those who give 4/5 star rating and follow on social media accounts comes under valuable users. These users will mostly refer our product in their circle.

most

Part 2 Building the Wireframes for the Web-based Analytics Dashboard

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Wireframe - Analytics Dashboard

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