The Importance of Customer Acquisition Costs for Startups


I recently came across the blog of David Skok of Matrix Partners and was inspired to write this post by an article on customer acquisition costs. If you have not yet read through his blog’s vast resources for entrepreneurs, I suggest you do so – particularly if you plan to pitch your startup to VCs anytime soon.

After being pitched countless times by startups, as a VC I’d like to identify a common misconception that web-based startups often have about their own growth potential and the costs associated with their plans. Management of web services companies, SaaS companies and mobile (web-based) applications commonly believe that because they are situated online, customers will come across their service, submit a purchase order (or subscribe) and notify friends or other companies to use the service as well. Although this may happen from time to time, it is very rare for any company to experience sustained viral growth.

Many companies don’t understand the difference between viral marketing and viral growth. Viral marketing is essentially “word of mouth” or “person-to-person distribution” and is the latest buzzword. Viral growth implies a K-factor greater than 1 (i.e. for each new person who tries a product/service, they will each invite more than 1 registered user of the product on average). Since true viral growth is so hard to achieve in practice, many companies miscalculate the actual costs it will incur to acquire customers. As David points out in his article, the majority of startup pitches lack detail/emphasis on how much it will cost to acquire customers. I second this statement entirely.

Business Model Viability
For a business to be profitable on each new customer, startups must balance two variables: (1) Cost to Acquire Customers (CAC); and (2) Lifetime Value of a Customer (LTV).

CAC can be calculated by taking the business’s entire cost of sales and marketing over a given period (including salaries and other employee expenses) and divide it by the number of customers that the business acquired in that period.

LTV can be calculated by looking at the Average Revenue Per User/Customer (ARPU) over the lifetime of a business’s relationship with a customer.

As Steve Blank mentioned in his recent post, an early indication that a business has found the right business model is when the cost of acquiring customers becomes less than the revenues generated from the customer. “For web startups, this is when the cost of customer acquisition is less than the lifetime value of that customer. For biotech startups, it’s when the cost of the R&D required to find and clinically test a drug is less than the market demand for that drug.”


Credit: David Skok.

Zynga is a great example of a company that has managed to decipher the business model of online social gaming. After thousands of A/B tests and experiments, Zynga finally found a business model where CAC was less than LTV. Once they cracked the nut, the company spent so much on customer acquisition that it was rumored that they accounted for upwards of 30% of Facebook’s revenue in 2009 though its aggressive social ad buying strategies. Similar business models and opportunities exist in virtual worlds, massively multiplayer online games (MMOGs) and many other online businesses. Many social games, such as those created by Zynga, leverage virtual currency, micro-transactions, emotional response mechanisms and social influence to promote the sale of decorative and functional virtual goods.

Before investing in a web-centric startup, good VCs will look deep into a company’s business model and know to look for CAC and LTV metrics. In fact, Trident Capital recently held a meeting with their online advertising and ecommerce companies to help exchange best practices for customer acquisition and improving LTV. My advice to startups: prove out your business model and you will have a much better shot at raising VC dollars. Skok suggests that two key equations be followed by web startups:

  • CAC < LTV (3x appears to be a rough minimum for SaaS businesses)
  • CAC should be recovered in < 12 months (for subscription businesses)

Startups, if you’ve already figured out your business model and how to make CAC < LTV, stay very quiet and add as much fuel to the fire as you can afford. Your competitors will likely try to hone-in on your tactics and fight back for their share of the market.


Credit: Steve Blank.

Leverage Startup Metrics
Startups are different from larger companies and therefore need different metrics than larger companies. Metrics will give startups a lens into how well the search for the business model is going and help to identify when to scale the company. Besides CAC and LTV, some essential metrics that startups should be familiar with include Viral Coefficient (K-factor)  and Customer Lifecycle. Dave McClure from Founders Fund recently updated his Startup Metrics for Pirates presentation for web sales pipelines. Take a look!

Questions to my Readers
Please consider the following questions and share your perspectives with my other readers and the tech community at large.

  1. What metrics do you consider the most valuable?
  2. Do you use any tools to help measure specific metrics for your business?
  3. What mistakes have you made (and corrected) that can help others succeed?

Leaving Comments Just Got Easier!


For as long as I have had this blog online, one of my strongest concerns was the friction (caused by WordPress and anti-spam tools) preventing my readers from easily leaving comments on my blog.

Now, thanks to an excellent plug-in called IntenseDebate, anybody can now leave comments by signing in through Facebook, Twitter, OpenID, WordPress or IntenseDebate. The plug-in also has some great sidebar tools that dynamically generate a list of the most popular blog posts (ranked by number of comments received) and recent comments received.

If there had been a comment that you wanted to make in response to a previous article, but were turned off by the process involved, I now invite you to participate in those discussions.

To my readers: Thank you all for subscribing and I’m looking forward to the additional conversations that result from these changes. Have a great weekend!

The Future of Contextual Mobile Commerce


In the early days of the gold rush to create location aware and contextually relevant mobile applications for smartphones, I was constantly bombarded with business plans that showed revenue models driven from advertising. Although advertising is a plausible way of earning revenue, there is a high level of inherent risk since those businesses are largely at the mercy of market rate CPMs/eCPMs and available ad inventory (unless you have a rockstar in-house ad sales team). Ad inventories are beginning to improve as advertisers are becoming more and more aware of the high interaction and engagement rates of mobile ads. However, for startups looking to differentiate in their niche, monetizing solely through ads is a risky road to travel. That being said, I believe that ads are still relevant  for *lite* versions of apps that supplement a paid model of some form and for monetizing certain consumers that would not otherwise become a paying customer.

Tim O’Reilly wrote a short article last week on the convergence of Advertising and E-commerce and I thought he hit the nail right on the head. He says that “E-commerce is the killer app of the phone world. Anyone whose business is now based on advertising had better be prepared to link payment and fulfillment directly to search, making buying anything in the world into a one-click purchase. Real time payment from the phone is in your future.” I completely agree. Square is a great example of real-time point-of-sale (POS) coming to iPhone.

In the article, O’Reilly arrives at this conclusion by making a few theories about what can be expected from the marketplace based on some recent announcements and common sense:

  • Google, Apple, and Microsoft will announce e-commerce programs akin to AdSense, in which retailers will register with “app stores” to allow physical goods and services to be bought as easily as apps
  • We can expect announcements of partnerships between phone providers and Amazon or Wal-Mart to fulfill mobile e-commerce requests

There are a number of mobile apps that are positioned well to capitalize on some of these trends such as foursquare and other mashups of local and geocoded information. IMHO, there is a more exciting category that is only starting to gain excitement. Companies like Layar, Tonchidot (Sekai Camera), Mobilizy (Wikitude) and TAT (Recognizr) are creating augmented reality browsers and applications that use location data and combine it with image recognition technology to recognize specific people or places in the physical world and allow the application user to interact with them in some capacity. I strongly believe that these are some of the fundamental technologies that will make this category of future applications possible. By linking interaction of location-aware data through to payment and fulfillment functions, one can point a phone at a local pizza restaurant and order a pizza to their home en route. Another example may be pointing a phone at a friend and performing a money transfer with only a few clicks.

What killer apps can you think of that combine hyperlocal, e-commerce and fulfillment?

DemoCamp 25 Toronto Roundup


DemoCamp is a concept that started 4 years ago in the Bubbleshare office boardroom. It is a forum for startups to share ideas, code and development tips at a “safe” venue within the community. Now at DemoCamp 25, audiences topped 450 people as they filled up an entire auditorium-style classroom at Ryerson University – pretty impressive. Check out the Flickr photos.

The theme of this DemoCamp was social gaming, with a few other social applications thrown into the mix. All the presentations were very interesting, but I have selected a few that stood out in my mind:

Gurbaksh Chahal (gWallet)

Gurbaksh gave an inspirational talk on entrepreneurship to the crowd, basing the majority on his life story and how he sold his first two companies for $40 million and then $300 million respectively. CEOs, take a look at his 9 entrepreneurship lessons. His new venture, gWallet, provides the next generation virtual currency platform for social media including social gaming, virtual worlds, mobile platforms, abandoned shopping carts and microtransaction environments. Essentially, it is another offer network that is looking to diversify itself from the realms of OfferPal and the like. It was great to see gWallet in action in one of the subsequent demos during the evening.

Albert Lai (Kontagent)

It’s always good to see Albert. I’ve had a beat on Kontagent for a while now, and I still love what they are doing. If you’re developing a social Facebook app, there is no excuse for not using Kontagent, unless of course you have no desire to really know what your users are doing and how best to improve the growth and distribution of your application across the social network. Kontagent really drives down to better understanding the Life-Time Value (“LTV”) of a user based on your Average Revenue Per User (“ARPU”) less the cost of acquiring an individual user – and Kontagent gets very granular so that you, the developer, can determine which sources of traffic tend to monetize well across your social application. If you haven’t heard of Kontagent, check it out.

Greg Thomson (Tall Tree Games)

Greg seemed to be in fine form last night. He demoed their latest game called FishWorld, which was a stellar rip of Zynga’s (and other) aquarium-based games. It was stellar not because Zynga does it to everyone else, but because it went above and beyond other aquarium-style games. Greg and the company really thought through the game mechanics and the game player’s psychology to maximize revenue-making opportunities. One of the best quotes that he said during his presentation was to “Create a problem for your users and sell them back a solution.” For example, in FishWorld the tanks constantly get dirty, but the game offers a suckerfish for $2 that will keep your tank clean and will prevent you from having to do maintenance on the fish tank to keep it clean. Another very smart move was to sell a shark, a premium and monetizable fish that people think are “cool” to have in their tank, but the shark eats other fish that users will then have to replace through coins or credits. In short, great game mechanics. Check it out! You will learn a lot by studying this game.

Greg Balajewicz (Realm of Empires)

Realm of Empires looks like a pretty engaging game where users can build relationships with each other, strategize, and plan their schemes of “virtual world domination”. They have build the company without many game mechanics for increasing monetization, as that did not seem to be their motivating force; these nice guys actually created a “fair” game where users can genuinely compete on skill and strategy – you are not able to buy your way to the top. While very refreshing from a user game-play point of view, it will be interesting to see how this pans out from a business operations standpoint. I think there is lots of potential for growing revenues in this company and that a great business mind could join this team and together they can really cash-in.

There were a few other demos by Oz Solomon (Social Gaming Studios), Joel Auge (HitGrab), Mark Zohar (Scenecaster) and Roy Pereira (ShinyAds.com), and while interesting, they weren’t inherently social games, which I set out to cover in this post. Feel free to check out my reviews from DemoCamp 21 (July 2009).

If you’d like a more in-depth review of your game or game mechanics, flip me a note and I’d be glad to take the time chat, understand your game / mechanics and review it in a subsequent post.

BASES: A Resource for Tech Startups


I have been a subscriber to the BASES weekly digest for several years now (note: BASES stands for Business Association of Stanford Entrepreneurial Students). It is an extremely valuable resource to any tech entrepreneur, especially if you live in the valley or travel to the Bay Area often. They generally include a section on upcoming events and deadlines; for example, below is a list found in their most recent digest:

Monday, January 25th – Learn Web Metrics from the Master Featuring Dave McClure
Monday, January 25th – British Consulate / Seedcamp Reception
Monday, January 25th – Nordic Entrepreneurs and Venture Spinouts
Tuesday, January 26th – Girls in Tech: Catalyst Conference – 15% off
Tue & Wed, January 26th & 27th – Web 3.0 Conference
Wednesday, January 27th – Vator Splash Competition – Applications are Due
Wednesday January 27th – Social E-Challenge Speed Dating Mixer
Thursday, January 28th – FounderDating – Where Founders Meet
Sunday, January 31st – Lightspeed Venture Partners Grant Program Application Deadline
Wednesday, Februray 3rd – Bootup Labs (Canada) Demo Days
Wednesday, Februray 3rd – Geo-Loco! The future of geo-location services
Wednesday February 21st – 28th – E-Week at Stanford University

BASES recently launched their “Help A Startup Out” section to more efficiently match the needs of startups with their large and fast-growing global network of entrepreneurs, investors, and top-quality service providers. Startups, give them your input to help make this a success.

I had a chance to work with a few members from the BASES group last year when I volunteered as a judge and mentor for a student team competing in the 2009 Social Entrepreneurship Challenge. They are a great group of people doing great things for the community.

Which subscriptions to tech/startup newsletters and RSS feeds do you read religiously? I’m looking for more sources…

2010 Mobile Trends via Forrester


I finally had the chance to review the 2010 mobile trends predictions from Thomas Husson, a Senior Analyst at Forrester. The report hit on a fundamental concept: mobile performed exceptionally well during the 2009 economic recession. To reflect on this, the industry has really been bullish from an M&A perspective. As the year came to an end, the M&A market began to pick up with a number of acquisitions including the now-over-hyped Google purchase of AdMob as well as the Apple acquisition of Lala (music streaming service). Thus far, 2010 has seen continued M&A activity, with emphasis on mobile advertising companies including Quattro Wireless being acquired by Apple and Ad Marvel being acquired by Opera. Larger industry players are plucking companies to secure their seat at the table to reap the profits that the mobile industry is beginning to offer maturing companies. There is also a flurry of investment activity surrounding mobile games companies (which I will leave for another post).

The 2010 Mobile Trends report offers these high level statements:

  • More brands will start taking the mobile web into account in their strategies.
  • Innovation in mobile payments will accelerate.
  • Google will shake up the mobile navigation business.
  • Location will start enabling richer mobile experiences.
  • Social Computing and mobile phones will expand their love affair.
  • Live mobile TV will be hyped again.
  • The OS arms race will heat up.
  • Application stores will continue to flourish, but none will replicate Apple’s success in 2010.
  • Some operators will want to reduce their increasing dependency on Apple.

Read the Forrester blog for a deeper dive into these trends.

My $0.02 on the “Live mobile TV” Trend
If you’re a die-hard TV fan, getting live TV to your mobile phone has been around for a while from Slingbox, which allows you to stream shows from your PVR/DVR at home to a BlackBerry or iPhone. In 2010, I believe much more than live mobile TV is going to heat up in the mobile video segment. Since mobile carriers are now extending the capabilities of their networks beyond 3G, such as the multiple WiMax network deployments by Clearwire/Sprint, higher-quality mobile video finally has rails that can support its intense-bandwidth needs. This means more services that will bring consumers music videos, concerts, plays, festivals, live sporting events, tv shows (live and archived), movies (full length and in bite-sized snacks) — and my personal favourite — video-calling. I’m quietly keeping my fingers crossed that the iPhone 4G supports video calls! One last thing, mobile advertising networks will likely be the default solution to monetizing “lite” apps; as mobile video continues to build traction, watch out for hype surrounding mobile video advertising to heat up.

Designing the Perfect Mobile Application Store


I briefly touched on application stores as part of my last post, Creating a Better BlackBerry Experience. After re-reading the post and reflecting on some of the comments, I felt that a more in-depth follow-up was required to discuss why the overarching design of a mobile application store is paramount to its adoption, usability and ultimately, success.

This post will focus on how I believe the design of BlackBerry App World (“BBAW”) can be improved for both enterprises and consumers.

BlackBerry App World for Enterprises

When BBAW was first released, many BES-connected users had problems downloading applications due to permission-based issues. RIM can’t do much to change corporate policies, but RIM can implement a highly-anticipated BBAW for the enterprise. I am proposing that RIM creates an enterprise app store, similar to the app store announced by MobileIron in December 2009. MobileIron’s enterprise app store allows enterprises to create a repository of approved content and apps, which employees can then download and use with the full blessing of IT. In addition, an enterprise can create device or employee categories with permissions for certain types of content. As mentioned by Kevin Fitchard of Connected Planet, “Salesmen, for instance, would find Salesforce.com’s app in their approved storefront, while a field engineer would not. Both field engineers and salesman could have access to vehicle navigation services, and while a desk jockey might be able to download that same application, the company could set usage restrictions limiting when he or she could use it (say, business trips) or require the employee to pay the monthly service fee in a separately generated bill.” To me, this concept sounds like an app store that would help RIM sell more BlackBerry devices to enterprises, help IT administrators and make employees more productive (and happy) when mobile. Obviously, a more tidy billing mechanism will have to be in place, since I’d reckon the majority of enterprise won’t want to pay via PayPal.

BlackBerry App World for Consumers

In creating v2.0 of BBAW, RIM has a lot of work to do. My last post discusses a few elements that need improvement including the billing systems, pre-loads and fewer bugs. I’d like to add a few more points to the discussion. To begin with, the billing system needs to be more dynamic and allow customers to attach credit cards to their profile for frictionless billing. The billing systems should also be flexible enough to power additional business models for application developers including subscription billing and in-application micro-transactions. Why not bring the minimum price-point to $0.99 as well?

Steven Berkovitz chimed-in to mention that with BES 5.0, there’s a full-blown web version of desktop manager; it uses an ActiveX control to connect to your Blackberry for operations requiring a physical connection and personal data is sync’d over-the-air (“OTA”). However, this functionality doesn’t yet extend to previously installed, licensed and configured applications. As a consumer, wouldn’t it be nice to buy your next BlackBerry, insert your SIM card, load your user profile from within an OTA-driven application and click “Restore Profile” to then have your data, applications (auto-detect new BlackBerry OS and download proper build for the new device) and configuration settings loaded onto your new device OTA? That is one step towards a BlackBerry device that can compete with future iPhone models in delivering the experience sought after by the ever-smarter and bells-and-whistles-seeking consumer today.

Many users are also confused by not being able to find certain apps in BBAW that show up for their friends or colleagues. By design, RIM only shows its users the apps available for their device. In a future version of BBAW, it would be nice to show users all the apps and allow users to be notified (by push, email, SMS, etc…) when the app is launched for their specific OS and device model. This could also give developers a sense of what devices are generating the most demand for their product so that they could focus their development efforts on the makes/models and locations that are going to yield that greatest financial rewards or user adoption.

Ubiquitous Access

BBAW needs to come pre-loaded on all (new) handsets. End of story. In cases where mobile carriers have a contractually dominant position over RIM on controlling content or applications available to mobile devices, RIM should provide those carriers with sufficient access and privileges to formally reject specific applications for use by their subscribers for their own reasons. In concert with these changes, RIM should enter into a formal revenue sharing agreement with carriers so that revenues generated from application one-time sales, subscriptions and micro-transactions can be shared. Once these deals are signed, RIM (or the mobile carrier) should push App World down to all BlackBerry devices. IMHO, this would be a win-win-win scenario for RIM, carriers and consumers.

If you were RIM, how would you design BlackBerry App World v2.0?

Creating a Better BlackBerry Experience


Over the last 18 months, I have had the unique opportunity to become entrenched in the mobile ecosystem from the viewpoint of business startups, independent developers and as a consumer. I walk around with a BlackBerry Bold and an iPhone and test smartphone apps in all shapes and sizes.

At the BlackBerry Partners Fund, we’ll invest in mobile businesses agnostic to the device that the application is based on; however, we expect that as a business owner you’ve chosen to target the right devices for the right reasons in the right market verticals. With that in mind, I get the opportunity to see the merits of developing applications for one platform versus another in a variety of contexts and business situations. From my experience, I have learned that generally, developers want to reach as many target users (or screens) as possible with the minimum amount of work, cost and time invested – and this makes a ton of sense!

BlackBerry Partners Fund is often perceived as the corporate venture arm of Research In Motion (“RIM”) – but it is not. RIM is an investor in the Fund and it is co-managed by RBC Venture Partners and JLA Ventures. As an employee of RBC, I don’t have access to internal information at RIM and I operate at an arm’s length from the company. However, as a fellow Canadian, I would love nothing more than to see RIM continue its dominance in the global smartphone market.

For RIM to remain one of the leaders in the marketplace, I strongly believe that a few fundamental changes need to happen at the developer level through to the end-user experience.

mobile-value-chain

Figure 1. Mobile application value chain from developer to end-user.

Developer Tools
As I mentioned previously, developers want to find the fastest, cheapest and quickest way (while retaining quality) to develop their applications. Many developers who develop for BlackBerry run into two huge fragmentation issues – the first at the device level and the second at the carrier level. My advice to RIM is to either acquire a company that has figured out how to port between BlackBerry models or develop an in-house multi-device porting tool that can be released as part of the BlackBerry SDK for developers. A tool with these capabilities would be helpful to RIM and to developers; there’s a simple equation: “BlackBerry-wide porting tool = more developers + more applications (net, on more handsets) = more revenues for RIM and developers + happier developers” (Note: No scientific studies exist to prove or disprove this equation). Just to be clear, RIM isn’t the only company with this problem. Device software fragmentation has been a problem for Windows Mobile for years and is now beginning to become an issue for Google Android. Microsoft is now trying to combat this with the Windows Mobile 7 platform by taking a standardized approach with no backward compatibility.

Application Stores
Application stores have become an essential distribution platform for mobile applications since the launch of the Apple App Store and are expected to reach $7 billion in revenue in 2010. One of the core elements to ongoing vitality in the app store ecosystem is the ability to create a seamless customer experience, which includes availability of quality apps and the ability to purchase apps easily and quickly, while on-the-go. RIM has a great start with BlackBerry App World (available via mobile and online), but for RIM to improve upon their current application store, I strongly believe that a number of things need to happen:

(1)    A credit card needs to be added to each user’s profile to allow payment beyond PayPal.

(2)    BlackBerry App World needs to come pre-loaded on all handsets; in situations where carriers keep “walled-gardens”, there should be rev share deals in place to push down App World and split revenues on pre-agreed terms with RIM rather than fragmenting distribution for developers who have a hard enough time distributing across all handset models.

(3)    BlackBerry App World needs to run faster and without as many bugs; it crashes far too often IMHO.

I’d like to further note that easing the end-user’s ability to purchase mobile applications would result in more revenues going back to developers who will in turn create more compelling applications for users (as seen in Figure 1, above). It’s a very nice cycle that would benefit RIM, developers and consumers.

Alternative or Cloud Device Management
I think that Apple maintained such a strong, early and rapid acceleration of mobile application adoption because of their centralized billing platform and iTunes. iTunes was a very smart way of leveraging a desktop application (used frequently) to create a simple management console for the iPhone. I believe that RIM should take on a similar strategy. My recommendation to the company would be to have each BlackBerry user create a profile online, hosted in the “cloud”, and accessible through a variety of interfaces. As a primary interface, I would suggest that RIM creates a plug-in that hooks into Microsoft Outlook (the most commonly used application by business users) that would allow full device management capabilities (updates, application purchase, install, sync, etc…); this would take place of the current BlackBerry Desktop Manager. I would also make alternative means of syncing the ‘Berry available such as a plug-in for Firefox or a completely online, hosted solution. However it is done, the core premise remains: make it simple for the user to update, backup, sync and install new applications. IMHO, the simplest way is to embed or plug-in to an existing application that is already running on the user’s machine for the majority of the day. Just like the proverb “out of sight, out of mind,” I believe the opposite is true here.

Readers, I’d love to know your thoughts. Do you agree with any/all of this post? Did I miss anything fundamentally important to RIM’s success going forward? Would you like your device profile and information stored in the cloud?

Note: These are my personal beliefs and do not reflect the thoughts and opinions of the BlackBerry Partners Fund.

Larry Cheng Updates Global VC Blog List


Larry Cheng updated his Global VC Blog list today (originally posted in May 2009 as top-100 in Google Reader subscriptions) and has re-ranked the global top VC blogs by average monthly unique visitors on compete.com for Q4 2009 (oct+nov+dec)/3.

As per the latest global VC blog listing, Fred Wilson from Union Square Ventures (Blog: A VC) took the top spot, shifting Guy Kawasaki from Garage Technology Ventures (Blog: How To Change The World) into second place.

Here’s the top 1012 for Q4 2009:

  1. Fred Wilson, Union Square Ventures, A VC (100,279)
  2. Guy Kawasaki, Garage Technology Ventures, How To Change The World (82,838)
  3. Paul Graham, YCombinator, Essays (71,924)
  4. Brad Feld, Foundry Group, Feld Thoughts (45,633)
  5. Mark Suster, GRP Partners, Both Sides of the Table (39,389)
  6. Bill Gurley, Benchmark Capital, Above The Crowd (23,084)
  7. Dave McClure, Founders Fund, Master of 500 Hats (21,462)
  8. Josh Kopelman, First Round Capital, Redeye VC (12,972)
  9. Bijan Sabet, Spark Capital, Bijan Sabet (12,451)
  10. Jeremy Liew, Lightspeed Ventures Partners, LSVP (12,097)
  11. Mark Peter Davis, DFJ Gotham Ventures, Venture Made Transparent (12,010)
  12. Larry Cheng, Volition Capital, Thinking About Thinking (11,851)

I kept 12 for obvious reasons. Check out the full list.

Larry, thanks for keeping tabs on all these metrics — it’s a great service to everyone looking to find knowledge in the VC and startup domains. The only problem with this methodology is that compete.com tracks only US traffic, while the blog listing is global in scope. Perhaps your next update in April 2010 can use Alexa rankings or some other novel solution.

Personal Metrics for 2010


In the early days of 2010, I have undertaken a few new year’s resolutions. One of these resolutions is to record and track a number of daily activities and fitness metrics. I was incentivized to do this by Brad Feld, whose 2009 metrics were pretty impressive! In 2010, I am going to be tracking the number of books and magazines I read (and their genre, of course), workouts (broken down by type) and logging net time as well as unique instances, daily mood (or “feeling today”) and number of hours of sleep logged. I’ve also set goals in each of these categories and I’m excited to see how the presence of a tracking mechanism affects my net performance and my choices of what I do with my ever-decreasing spare time.

There are a few tools that can help to keep track of this data for you such as Daytum, but that requires a $4/month fee; I simply created a Google Spreadsheet with inputs on one tab and a dashboard of progress on another – an economy version of sorts. Let me know if you want a copy.

Some more granular tools can keep track of some specific details if you are really into this stuff. For example, a company called Zeo has a product for $249 that tracks minute details of your night’s sleep such as time in REM and disturbances and can upload data to it’s website for further analysis and coaching on how to get a better night’s sleep; I’d love to try it, but I heard it was only semi-effective. There are also plenty of tools to track running including a suite of pedometers, GPS-enabled units and embedded heart rate monitoring to ensure that you maintain an ideal cardiac output during your workout. No need to venture into more detail here. Let me know your favourite tools that you use to track your life, workouts and whatever else you track!