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Metrics: How platform managers can measure what really matters, G2 (IBS3…
Metrics: How platform managers can measure what really matters
The challenge of the platform key metrics
Help leaders ,board members and investors understand the situation quickly🤷♀️
Traditional measures
Key numbers
Cash flow
Inventory turns
Operating income
Platforms came out
💥
Transform value chains, competitive strategy, and management techniques
Internal measurement
Platform metrics
Positive network effects
The rate of interaction success
Contributing factors🔧
➡️
Designing metrics which track the life cycle
Reached critical mass
Decide how to monetize
💰
Matures
The challenge of
user retention
and
growth requires
Other competitive concerns
Startup phase
Track the growth of asset
👣
Facilitate interactions among users🤝
Including the creation, sharing, and delivery of value
Ancillary metrics
Gross margin
Overhead
Return on investment
Measure the efficiency of value flow from one end of the pipeline to the other
Stage 2:
During the growth phase
Core metrics
related to decisions you face today
Users :check:
The core interactions
Creating value:moneybag:?
Inflow of engaged users
Exceeds outflows?
Monitor the changes (user base size)
Ensure balance on the 2 sides
Producer-to-consumer ratio
Only active users who create interactions
Traditional way
Platform
Consumers
Frequency of consumption
Searches
Rate of conversion to sale
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Producers
Frequency of participation
Listings created
Outcomes achieved
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Startup VS Growth
What are the differences?
Interaction conversion rate
Percentage of searches/queries lead to the interactions
Enhance continued growth
Side switching rate
Consumers:arrow_right:Producers
Maintain balance
Distance between consumers& producers
Direct interactions between the two users
Minimize the gap
Stage 1:
Metrics During The Startup Phase
Startup Companies
Resources are usually stretched
Core interaction & benefits creates on the platform
Future is unpredictable
Can not use general management tools
Three main metrics
to define success
Liquidity
Tracking the percentage of listings that lead to interactions within a given time period
Depending on the market category
Most meaningful metrics are comparative ones
Look for and track the occurrence of illiquid situations
EX: Uber but no car
Matching Quality
Search algorithm and the intuitiveness of the navigation tools
Matching quality is critical to delivering value and stimulating
Matching quality is closely related to the effectiveness
Find what they’re looking for as quickly as possible
Tracking the sales conversion rate
Trust
Users of a platform feel comfortable on the level or risk
EX: Airbnb Allows hosts and guests to review each other
Kind of platform business involved
Valuable: Engagement per interaction & Time between interactions & Percentage of active users
EX: Airbnb, tracks the number of nights booked
EX: Amazon: measure interaction capture
EX: Dating and matrimonial sites
EX: Talk about number of women registered
G2
IBS3 Cathy
DFLL4 Evelyn
IBSM2 Brianna
SDEI M2 Antony
YES!
Platform
is
growing :smiley:
STAGE 3:
During the maturity phase
🔴 Major requirements
1️⃣Drive innovation
2️⃣ High signal-to-noise ratio
3️⃣ Facilitate resource allocation
Measure the drivers of value
Adoption
Allocate resources
Satisfaction
Engagement
Metrics
matter most for company
❌ Measure everything
❌ Over-complex
👀 Performance & value creation.
Adapt to user needs
Competitive /regulatory
environment changes
Functionalisties missing
Features provided by third parties
become users value.
Consider to absorb
🔴 Design elements
Simplicity
Overcomplex metrics
Less effective management
Vanity metrics
Can't measure
critical mass & liquidity needs
EX: Total sign-ups
Often increases
(even interaction is flat / declining.)
3 A’s test
Select metrics design and use
Different platform
require different metrics
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Actionable
Accessible
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Conclusion
Startup phase
Metrics
Track the strength of platform's core interactive features
Growth phase
Metrics
Likely to impact growth
&
Enhanced value creation
maturity phase
metrics
drive innovation by identifying new functionalities
create value for users
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