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πŸ’Ž Testing velocity, success rate and average impact

The throughput funnel for a team is a function of velocity, success rate and average impact:

  • Velocity: how many feature experiences are you putting out per engineer per week? Example at Airbnb: 1 test/engineer per week.
  • Success rate: for 100 experiments, how many are a statistically significant winner that you’re going to roll out? A good benchmark is a 20-30% success rate which means you should expect 70-80% of your test to be flat or negative.
  • Average Impact: if you have a 30% success rate, what’s the average impact over these?

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CAC/LTV ratio

A lot of times, business health and growth can be at odds with each other because you can trade health for more growth. Looking at the CAC/LTV ratio in combination with Revenue is healthy because it considers both. It also gives you a common reference across the whole business.

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CURATED BY

sylvainww

⛏️ πŸ’Ž Mining Best-in-class Mobile Growth Insights @ GrowthGems.co / Product Growth & Mobile Marketing @ Babbel Love learning and getting better at it. Stay savvy!

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