By the Numbers

What It Covers

37signals co-founders Jason Fried and David Heinemeier Hansson explain why they eliminated their full-time data analyst role, how they approach product development without quantitative projections, and which business metrics actually matter.

Key Questions Answered

• •Data analyst elimination: After two analysts over multiple years, 37signals discovered heavy data analysis rarely changed their decisions. They now handle occasional analytics through their finance lead using AB testing software, avoiding full-time analysis that produces interesting but unusable insights.
• •Product launch philosophy: 37signals builds new products like Fizzy without revenue projections or success metrics. They view experiments as worthwhile even if they fail because new projects cure boredom, enable fresh thinking, and generate learnings that transfer to existing products.
• •Cost reduction aesthetics: Treating expense management like editing prose creates margin and freedom. Reducing line items from twenty-five to fourteen provides psychological lightness and operational flexibility, though cutting too lean eliminates the value of activities entirely, requiring balance around B-plus efficiency.
• •Conversion rate reality: Rigorous analysis of Basecamp usage patterns revealed only obvious conclusions like people who use Basecamp with others stay longer. The search for a holy grail metric similar to Facebook's three-photo upload trigger produced no actionable single conversion driver.