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The annual repurchase rate is an early indicator of how an e-commerce startup will succeed in the long term. Even before a year has elapsed, an e-commerce company can look at 90-day repurchase rates and get a sense of which model it’s in. A 90-day repurchase rate of 1% to 15% means you’re in acquisition mode. A 90-day repurchase rate of 15% to 30% means you’re in hybrid mode. A 90-day repurchase rate of over 30% means you’re in loyalty mode.
Lean Analytics
Alistair Croll, Benjamin Yoskovitz
Alistair Croll and Benjamin Yoskovitz say, in their excellent book Lean Analytics: “A good metric is comparative. Being able to compare a metric to other time periods, groups of users, or competitors helps you understand which way things are moving. Increased conversion from last week” is more meaningful than “2% conversion.” A good metric is understandable. If people can’t remember it and discuss it, it’s much harder to turn a change in the data into a change in the culture. A good metric is a ratio or a rate. Accountants and financial analysts have several ratios they look at to understand, at a glance, the fundamental health of a company. You need some, too… . A good metric changes the way you behave. This is by far the most important criterion for a metric: what will you do differently based on changes in the metric?”
Radical Focus SECOND EDITION
Christina Wodtke
**Frame a leapfrog question**
Once you’ve identified a strategic problem that is clear, impactful, and based on your customers' behaviors, your next step in the strategic process is [framing a question to guide your thinking](https://www.ideou.com/blogs/inspiration/why-leadership-is-not-about-having-all-the-answers?_pos=4&_sid=ef4547913&_ss=r). A common mistake Roger sees people make in this step is [framing a catch-up question](https://rogermartin.medium.com/the-tragic-futility-of-investing-to-catch-up-aaf4b5c90e0f)[.](https://rogermartin.medium.com/the-tragic-futility-of-investing-to-catch-up-aaf4b5c90e0f)
You want to pursue a strategy that’s worth pursuing. Catch-up measures, like investing $300 million to get your distribution system “up to par,” are often less effective than expected, while leapfrog measures lead to greater returns than planned. Instead of asking how you might catch up with a competitor, ask how you can win in the marketplace.
Strategic Planning: How to Get Started
IDEO U
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