article thumbnail

Conservation of Intent: The hidden reason why A/B tests aren’t as effective as they look

Andrew Chen

Then your revenue/installs/whatever goes up by +10% right? This is why you can’t add up your A/B test results. Similarly, this is a reason to be skeptical of vendors and 3rd parties who have case studies that’ll increase your revenue by X just because they increase their ad conversion rate (or whatever) by X.

article thumbnail

How to build a billion dollar digital marketplace – examples from Uber, eBay, Craigslist, and more

Andrew Chen

Since the 2014 article, Uber has blown past his estimate by 10X, with top line revenues to support it. Today, Craigslist in over 57,000 cities, generating $700M in revenue per year (on job listings fees!) Optimization : A/B testing growth levers – from email/SMS/push copy – to when/how to reach out.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

What to look for when you’re hiring a Head of Growth

Andrew Chen

Growing your startup’s users and revenue is so critical that it makes sense to hire someone to run it, and to potentially add a team underneath them to support this goal. There were projects to help with A/B testing (Morpheus!), It’s asked often for good reason. This is when a market hits its Tipping Point.

Scaling 82
article thumbnail

a16z Podcast: Why paid marketing sucks, Network effects, Viral Growth, and more

Andrew Chen

So not revenue per CAC is that you know typically there’s cost associated to user. And you can start to draw conclusions, sort of a natural A/B test in order to do that. Is a tricky one in some cases like subscription Hulu, Netflix, and then also in the SaaS world. Jeff: Well, let’s break them down.

article thumbnail

What to do when product growth stalls

Andrew Chen

Yes, of course, it’s when a top line number (like revenue, or active users, or otherwise) stops growing. There’s equivalent numbers for net revenue retention, session lengths, and lots of other metrics too. An enterprise SaaS product would have its own set of metrics. But what’s happening under the covers?