The throughput funnel for a team is a function of velocity, success rate and average impact:<ul><li>Velocity: how many feature experiences are you putting out per engineer per week? Example at Airbnb: 1 test/engineer per week.</li><li>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.</li><li>Average Impact: if you have a 30% success rate, what’s the average impact over these?</li></ul>

💎 Testing velocity, success rate and average impact

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.

CAC/LTV ratio

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Webinar: Growth Optimization: Metrics & Frameworks by MasterClass Sr PM, Michael Berliner

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CAC/LTV ratio

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Webinar: Growth Optimization: Metrics & Frameworks by MasterClass Sr PM, Michael Berliner

💎 Testing velocity, success rate and average impact

CAC/LTV ratio

IDEAS ABOUT

MORE LIKE THIS

Webinar: Growth Optimization: Metrics & Frameworks by MasterClass Sr PM, Michael Berliner

Stop Taking Your Fears to Social Media

How to Stop Worrying Whether or Not They Like You

It's time to

READ

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A PRO!

Bite-sized knowledge
to upgrade
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