Every new issue is a challenge that needs to be resolved. As a data analytics professional, you are expected to undertake a lot of analysis and trials to make informed decisions. No matter how unique a situation may be, there are tried-and-true techniques to handle it while keeping in mind the broader picture, and this blog will emphasize the same.
Defining a Framework
A framework is a set of rules or structures that is the foundation for any process or enterprise. And depending on the setting, it can take on several shapes. So, imagine you are constructing a home; you might frame the house and pour the foundation yourself. You could do it, but it would take a lot of time. However, if someone already completed all of it for you, it would save you a lot of time, mainly if skilled home builders did it. A framework does an equivalent task in software development. Meanwhile, there are four fundamental types of analytics frameworks:
#1 Pirate Metrics by Dave McClure
In 2007, “Pirate Metrics” was first coined by Dave McClure, the founder of 500 Startups and a well-known figure in the startup world. Startups can use Pirate Metrics, sometimes known as “AARRR,” to think through the five most crucial company metrics: acquisition, activation, retention, referral, and revenue.
For new firms as well as all businesses, each of these five indicators is essential. And without monitoring these measures, your firm won’t be scalable or sustainable, and you won’t be able to gauge its success.
#2 Engines of Growth by Eric Ries
Eric Ries, the author of The Lean Startup, is the creator of the idea of the engines of growth. Based on how customers use your product or service, the engines are indicators that can show you how to generate sustainable development. As such, the sticky engine, the paid engine, and the viral engine are available, and each engine contributes a unique trajectory for growth and a particular form of growth. Meanwhile, focusing on just one of these engines can help you better understand what is and is not working for your startup.
#3 Lean Canvas by Ash Maurya
Writing a business plan takes too much time, they are rarely updated, and people hardly ever read them. Dynamic models, not static techniques, are required when moving exceptionally quickly and in the face of great uncertainty.
Long and tedious company plans are replaced by a 1-page, easily-read business model thanks to the Lean Canvas. And Ash Maurya’s 1-page Lean Canvas template can help you break down your idea into its fundamental premises. It is modified for Lean Startups from Alex Osterwalder’s Business Model Canvas. Besides, a one-page business model is used here in place of complex business strategies.
#4 Startup Growth Pyramid by Sean Ellis
Sean Ellis is an established businessman and marketer who created the term “growth hacker” and has been closely associated with several firms that have experienced rapid growth.
This model raises the question of determining if product/market fit has been attained and how to decide whom to sell your product to. So, Sean came up with a quick quiz you can send your clients to see if you’re prepared for rapid expansion. The survey’s most crucial question is how you would feel if you could no longer use this product or service. According to Sean, you’ve found a fit, and it’s time to scale if 40% of people (or more) indicate they’d be agitated to lose the service.
In the end, there are a lot of valuable analytics frameworks that can aid in your business-related thinking. Some strategies, including Pirate Metrics and the Long Funnel, concentrate on attracting and converting clients. Others offer guidance on when and how to grow, such as the Startup Growth Pyramid and the Engines of Growth. Meanwhile, some, like the Lean Canvas, assist you in outlining the elements of your business model so you may assess them separately. So, select a framework that works best for you and your startup.