Post on 17-Oct-2014
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Unlocking Growth Building a sustainable growth engine with the new rules of marketing.
“Most startups don’t fail at building a product. They fail at acquiring customers.”
– Gabriel Weinberg
Startup Growth Pyramid
Growth
Stacking the Odds
Product/Market Fit
Source: Sean Ellis
Growth
Stacking the Odds
Product/Market Fit
Source: Sean Ellis
Get to Product Market Fit First
What is Product/Market Fit? A large group wants/needs your product – it’s a ‘must have’.
“Focus obsessively on getting to product/market fit.”
– Mark Andreessen
Do you have PMF? Ask “How would you feel if you could no longer use the product?”
Source: Sean Ellis
“Very Disappointed” 0 – 25%
26 – 39%
40 – 100%
Keep burn low, engage, iterate
Try repositioning, retargeting
Proceed up pyramid
After PMF, transition to
growth
Growth
Stacking the Odds
Product/Market Fit
Source: Sean Ellis
Race to scale Instrument your product Activate users Increase exposure—the race to scale
Instrument your product Source data (referral source in user record) Event & cohorts Conversion rates Engagement/retention Lifetime value
Dave McClure’s Pirate Metrics Acquisition Activation Retention Revenue Referral
Find your metric that matters “x people did x searches in past week” “y people visited my site x times last month” “z users send n messages via my app each day”
Source: Josh Elman
Build a Value Delivery Engine
Build a must-have product Understand must-have experience (MHX) Calibrate hook & promise messaging Optimize flows to deliver MHX
Must-Have experience
Hook/ Promise
Source: Sean Ellis
Steps for value delivery engine
Understand MHX
Macro Optimization
Segment/Personalize
Optimize Value Delivery Engine
Successful optimization process Funnel
Analytics
Insights Test Variations
Max % that reach MH experience Build desire, reduce friction
Must-Have experience
Hook/ Promise Goals
Desire – Friction = Conversion Rate
Source: Sean Ellis
PIE test prioritization Potential Importance Ease
Source: Wider Funnel
A/B test combos Messaging Flows
Hooks based on intent/pain Promise based on MHX Clear description of solution
Flows that reduce friction Flows that frontload MHX
Language market fit What is this thing you’ve built to your users?
Store your photos Share your photos
Find a date Help people find a date
Developing promise statements Focus on a single benefit for each Limit to about 10 words Write wildly different statements
Segment/personalize last Default to macro first, then segment At a minimum manage active vs. inactive Develop programs to manage full lifecycle
Growth
Stacking the Odds
Product/Market Fit
Driving Growth is Last Step
Source: Sean Ellis
Four Types of Growth
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
1 2 3 4 5 6 7 8 9 10 11 12 13
Topline
Activated
Retained
Monetized
Source: James Currier
“Growth is about taking your product and optimizing it to create compound interest.
There are very few (if any) silver bullets when it comes to growth.”
– Andy Johns
Why Growth Hacking?
$0
$20
$40
$60
$80
$100
$120
$140
$160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
US Online Ad Spend per User
“Growth hacking: A cool-sounding euphemism for making the doer feel good about using the
same old sleazy marketing tricks.” – David Heinemeier Hansen
“Growth hacking is a recognition that when you focus on understanding your users and how they discover and adopt your products, you can build features that help you acquire and retain more users, rather than
just spending marketing dollars.” – Josh Elman
Don’t delegate growth to a ‘hacker’ Original vision on customer need Don’t abdicate fate to a marketer Growth as an organizational priority
Growth = fx (Probability of Success, Impact, Resources Required)
Source: Brian Balfour
Right marketing mix for you? What are you optimizing for? (Learning, volume, cost) What are your constraints? (Time, money, audience, legal)
Source: Brian Balfour
New User Channels
Email Facebook Twitter
Pinterest Craigslist Google+
iOS Android
Blog widget
Google SEO
Tumblr Twitter WOM
Press
Appstore Featured
TV Apps
Mobile ads
Web ads
Online video
TV ads
Radio ads
SEM
Affiliates
Viral Paid
WOM Source: James Currier
Categories of growth hacks Platform integrations Powered by Instrumented virality Data-driven hacks Igniting word of mouth
0
20
40
60
80
100
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Viral Channel Effectiveness
WOM Email
MySpace
Craigslist
iOS
Android
James Currier
Growth
Stacking the Odds
Product/Market Fit
Build Growth on a Solid Foundation
Source: Sean Ellis
Growth Engines Case Studies of How Today's Most Successful
Startups Unlock Extraordinary Growth
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