CUSTOMER ACQUISITION 101

Andrea Sharfin FriedensonJuly 2016

@asharfinhttps://www.linkedin.com/in/asharfin

AGENDA

ABOUT ME

DON’T SUCCEED BY LUCK

MODELLING

TESTING

PROCESS

HOW MUCH TO PAY

IDEAS AND RESOURCES

ABOUT ME

DON’T SUCCEED BY LUCK

Luck Is a Bad Marketing Plan

UnpredictableIf it fails, you won’t know why

Marketing via Luck

Idea: Let’s tweet about our program!

OMG it went viral!

Some retweets. One signup. Was that enough?

Luck Leaves Your Biggest Questions Unanswered

Why was the campaign good or bad? What should you do next?

A Better Plan: Model & Test

Model

Identify your goal

Map out steps to get there

Put #s next to each step

Test

Establish hypothesis

Run cheap experiments

Measure results

Bet more into winning tactics, abandon losers

Document outcomes so you don’t repeat work

MODELLING

Modelling: The Funnel

Awareness

Acquisition

Engagement

Monetization

The FunnelNote: #s for discussion purposes only

Stage StepConversion Rate # People Est Value

AwarenessSees tweet about Reboot Accelerator 1,000 $0.99

Acquisition Visits Site 10% 100 $9.90

Engagement Signs up for newsletter 5% 5 $198.00

EngagementVisits SV Immersion Accelerator Payment Page 60% 3 $330.00

GOAL: Monetization Registration 66% 2 $500.00

TESTING

Start with Pinch Points

Stage StepConversion Rate # People Est Value

AwarenessSees tweet about Reboot Accelerator 1,000 $0.99

Acquisition Visits Site 10% 100 $9.90

Engagement Signs up for newsletter 5% 5 $198.00

EngagementVisits SV Immersion Accelerator Payment Page 60% 3 $330.00

GOAL: Monetization Registration 66% 2 $500.00

Then...

Brainstorm ways to get more people to sign up.

More aggressive popup?

Shorter sign-up form?

More sales-y copy?

Conduct an A/B test. Measure results.

Make sure they’re statistically significant!

PROCESS

Pick a North Star MetricAirbnb = nights bookedFacebook = MAURevenue = P * Q. North Star is your Q.

Resource the ProcessSelect a Growth Lead to own North Star metric and run weekly growth planning sprint meetings

Brainstorm and Prioritize

Run a company-wide 1 hr+ brainstorm session to seed an idea backlog

Rank ideas by ICE

Impact

How much do we think this will make us?

Confidence

How confident are we in that assessment?

Ease

How much work will it take to do this?

Commit and Kick-OffCalendar and launch highest-priority tests

Manage Progress with Weekly Growth Sprint Meetings

15 min: North Star metric review10 min: Review last week’s testing sprint (any issues?)15 min: Key lessons learned from analyzed tests15 min: Select tests for this week’s sprint5 min: Check growth of ideas backlog

http://www.slideshare.net/seanellis/building-the-ultimate-full-company-growth-team?ref=https://growthhackers.com/slides/building-the-ultimate-full-company-growth-team

HOW MUCH TO PAY

Work Backwards Through the FunnelNote: All #s are for discussion purposes only

Don’t pay more than $0.99/1,000 people! (~$0.99 CPM)

Stage StepConversion Rate # People Est Value

AwarenessSees tweet about Reboot Accelerator 1,000 $0.99

Acquisition Visits Site 10% 100 $9.90

Engagement Signs up for newsletter 5% 5 $198.00

Engagement

Visits SV Immersion Accelerator Payment Page 60% 3 $330.00

GOAL: Monetization Registration 66% 2 $500.00

IDEAS & RESOURCES

Tactics that Can Help with Each Funnel Stage

Awareness: Customer sees your message PRSEOSocial Media

Acquisition: Customer visits your site Test different paid channelsTest channel messaging

Engagement: Good 1st experience on site Optimize contentInvest in engaging design

Retention: Customers come back Email newsletterDiscounts on future purchasesExpanded product line

Referral: Each customer brings you at least 1 more Referral program

Revenue: $$$ Optimize sign-up flowEmail nurture campaigns

Free Idea from Me

Influencer marketing: Create an event for your category and invite thought leaders with significant social media followings and popular email lists to speak. They will promote the speaking gig on their channels. Win-win!

Who to choose: Use your funnel to back out how big a social audience someone will have to have to make it worth your contacting them.

Resources

Testing CalendarSimple Sample FunnelSignificance Calculator

Further reading:● Dave McClure’s Startup Metrics for Pirates● Sean Ellis: Building the Ultimate Company Growth

Engine

Useful Tech

Ideas: SimilarWeb and SpyFuOn-Site Testing: OptimizelyLanding Page Testing: UnbounceTesting Onboarding Process: SparkPageGrowth Process Tracking: Growth Hackers Projects

THANK YOU!

@asharfin andreafriedenson@gmail.com https://www.linkedin.com/in/asharfin