Pivot vs. Iteration & Startup Metrics Lecture

Vocabulary flashcards covering key concepts from the lecture on when to pivot vs. iterate, core startup metrics, pivot types, and data-driven iteration tools and strategies.

Pivot

A fundamental change in product direction to solve a different, more urgent problem uncovered by user data and feedback.

Iteration

Incremental refinement of an existing product to solve the same problem better without altering its core purpose.

Low Engagement Despite High Traffic

A mismatch where many visitors arrive but few interact—a classic signal that a pivot may be needed.

Loyal Niche Audience

A small, passionate user group indicating the product is valuable and should be improved (iterated) rather than abandoned.

Retention Rate

Percentage of users who return after first use; ≥40 % by week 4 is strong for consumer apps.

Churn Rate

Percentage of customers leaving during a period; <5 % per month is considered healthy for SaaS.

DAU / MAU Ratio (Stickiness)

Daily active users divided by monthly active users; >20–30 % shows users come back consistently.

Activation Rate

Share of sign-ups reaching the initial “aha” moment of value; 40–60 % is a solid benchmark.

Qualitative Data

Non-numeric insights from interviews, observations, and open feedback that reveal user motivations and pain points.

Zoom-In Pivot

Pivot where one successful feature becomes the entire product (e.g., Instagram focusing solely on photo sharing).

Zoom-Out Pivot

Pivot expanding a narrow product into a broader solution, making the original feature just one part (e.g., Flickr).

Customer Segment Pivot

Shift in primary target audience when another user group gains more value (e.g., PayPal focusing on eBay sellers).

Business Architecture Pivot

Change in monetization or operational model, such as moving from high-margin/low-volume to low-margin/high-volume.

A/B Testing Platform

Tool that compares multiple versions of a feature to see which performs better (Optimizely, VWO, Google Optimize).

Surveys & Feedback Forms

Simple instruments (Typeform, Google Forms, Hotjar) for directly asking users about friction points and desired features.

Product Analytics Tools

Software (Mixpanel, Amplitude, Heap) that tracks clicks, funnels, and drop-offs to pinpoint improvement areas.

Session Replays

Recordings that let teams watch individual user sessions to uncover usability issues (FullStory, Hotjar, Mouseflow).

Heat Maps

Visual reports showing where users click, scroll, or hover, highlighting engagement hot spots and pain points.

User Interviews & Usability Tests

Direct conversations or observed tasks revealing deep qualitative insights no metric alone can show.

Market Readiness

Extent to which customers currently recognize and demand a solution; launching too early stalls adoption.

Macro-economic Events

Large external shifts (pandemics, inflation) that rapidly change user priorities and market opportunities.

Competitive Shift

A rival’s game-changing release or traction that pressures you to differentiate or pivot quickly.

Platform Changes

Ecosystem alterations (App Store rules, API limits) that can threaten or open opportunities for your product.

Timing

Alignment between product launch or pivot and external conditions; good timing amplifies success, bad timing hinders it.

Early Evangelists

Passionate first users who advocate for the product and provide focused feedback for early iterations.

Stickiness Metric

Alternative name for the DAU / MAU ratio, indicating how frequently users return to the product.

Activation Moment

The specific action when a user first experiences core value (e.g., uploading a first file in Dropbox).

High-Margin / Low-Volume Model

Business structure selling fewer units at high profit per unit.

Low-Margin / High-Volume Model

Business structure relying on large scale, selling many units at small margins.