Growth Hacking Workshop

Growth Hacking Workshop

Marketing, Experimentation, Growth @

Jared Waxmanjared@benchmark-analytics.com

Neil PatelCrazyEgg, KissMetrics, Hello BarAndrew ChenUber, Mohr DavidowBrian BalfourHubSpotSean EllisQualaroo, Xobni, Dropbox

Dave Macclure500 Startups

Alex SchultzFacebook

Thanks Guys!

There are some of the trailblazers and teachers to which I owe my education.3

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5 min

Discussion: Growth HackingWhy is this topic in such high demand?

Do we all have the same definition?

What do you want to learn? 10 min

10 min

WIIFM? Want you to leave this withUNDERSTAND (1 hour)Understanding of macro trends leading to itUnderstanding of the disciplines involvedClear litmus test for what a Growth Hack isUnderstand two main growth loops, subtypesUnderstand channel vs platform hijacksHave examples of loops and hijacksUnderstand k-factor, growth multipliers, cycle time

DO (1 hour)1. Market FitQualitative measurementQuantitative measurement2. Growth FitCompute Growth Fit Score3. Find Core LoopsComplete brainstorming exercises towards discovering your main loops4. Model LoopsModel out your top loop5. Growth RoadmapStart to fill out a growth roadmap

In the beginningThere was brand marketing.Broadcast outExpensiveUntrackable

Next comes Performance Marketing:ScalabilityTrackablePrecise

And there was still Other:ReferralsUnknown originWord of mouthOrganic???

Drive one home today!Our Cars Are the Fastest

2551 Steven Creek Boulevard, San JoseGrowth Harnesses The OtherBrand & Performance MarketingGrowth MarketingRequires large budgetsCosts are linear to salesMust breakthrough noise

Consumers share message with other consumers

Company shouts message to consumerSmaller, one-time investmentsPotentially exponential returnsReferrals & content more persuasive

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Analog MediaDigital MediaDigital ConversationsBrand Marketing

Performance Marketing

Growth Marketing

197619962016

Growth Hacking is a Blend of Disciplines

ExperimentationAnalyticsAgility

CodingAPI hacksGrey Hat

Product ManagementFeature developmentRoadmap prioritizationGamification

Social MediaPerformance MarketingMobile app chops

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Is there a platform hijack?

Is there a loop?Identifying a Growth Hack: The TestIf you answer yes to either question, its a growth hack.or

New user signs upWhats a (Viral) Loop?

Some users import address bookSome users send invitesSome friends click throughS: Chen & Balfour, SVBR

Viral Funnel

Traditional funnel starts with non-users to hopefully generate some users.Growth funnel starts with a user, and that users generates more users16

Viral Loops3 Types of Viral LoopsNatural, Delight-DrivenUber, Zume, X.aiBy-Product of Offering FunctionalityFacebook, Hotmail, PayPal, LinkedIn, X.aiIncentivizedCandyCrush, PayPal, Square, HotJar

Note how companies leverage more than one viral loop type.

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Hotmail

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X.AI

Other parties will think, Hey whats this. Can I sign up too?

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PayPal

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PayPal -> Get $10

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Airbnb Referral

Standard double sided or double loop referral22

HotJar-> cut in line

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Share Square -> get free processing

Candy Crush -> Unlocks

LinkedIn with Contacts UploaderLinkedIn (Few users in early days)Your Contacts ListReferral LoopInvite new users

Connection request existing usersRe-engagement Loop

Find ConnectionsUpload contacts (Gmail, Outlook, etc.)Accept connectionSuggest more friends

Create account

New user signs upWhats a (Content) Loop?Some create new contentSome of the content gets indexed by Search EnginesSome searchers see content and click through

Content tends to be a slower loop than referrals.27

New user signs up for LinkedInContent Loop for LinkedIn on GoogleCreates Profile,Indexed by GoogleSomeone searches for John P. AppleseedVisit to Johns profile

Content tends to be a slower loop than referrals.28

Content LoopsExamples:Social Profiles & DirectoriesLinkedIn, Facebook, FindLawReviews, CurationAmazon ReviewMarketplacesCraigslist, Ebay, AirBNBCafePress, ThingaverseSoundCloudInformationSlideshare, YouTubeQuora, JustAnswers, WikisMedium, UdemyAd Sponsored ProductsYahoo Websites, Wix, VistaPrint

Do your users generate content?

Is that content indexed and public?andIf both of these are true, then you have a content loop.

Channels vs Platform HijacksTraditional ChannelsTVRadioPrintDirect MailEmailOutbound salesPaid searchDisplay

Growth Platform HijacksCraigslistAlignable, NextDoorFacebook, TwitterPintererst, Instagram, TumblrReddit, YikYak, SnapChatWeChat, WhatsApp, Line iMessage, Facebook Messenger, SlackYoutube, PeriscopeBloggers & Blog commentsContacts UploaderOffice365KeyboardBrowserMooCsAdd-ins, Plug-ins, ModulesMarketplaces & App StoresQuora, StackExchange

Other Peoples Audience (OPA)!

Channels vs Platform HijacksTraditional ChannelsLinearObvious to marketerStableNo special tools requiredSets off prospects skepticism radar

Growth Platform HijacksExploding in size (hopefully)Non-obvious at firstSmall window of exploitation (grey hat)May require engineering toolsetFlies under the Im being sold to radar

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A user of a different platform can interact with something youve put on there.Whats a Platform Hijack?To take full advantage they sign up for your offering.They take actions within your offeringThose actions lead to more chances for others to interact on the other platformS: Chen & Balfour, SVBR

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Birth & Death of a Growth ChannelChat bots?Direct MailOvercrowded, Noisy, Spammy, ExpensiveEmail / NewslettersFacebook PostApp StoreVchat?

Early, Clever, Has Breakout, Inexpensive

AirBNB Posting to CraigslistFill out listingCross-listed on CraigslistAirBNB (Fewer eyeballs)Craigslist (Lots of eyeballs)Posted on AirBNBVisit listingRent spaceContent LoopA small subset will decide to post their own listing on AirBNB, continuing the loopLinks back to AirBNB

AirBNB on Craigslist

S: https://growthhackers.com/growth-studies/airbnb

Circa 201035

AirBNB Poaching off CraigslistFill out listingFilled out listing on CraigslistAirBNB (Fewer listings)Craigslist (Lots of listing)Posted on AirBNB

Emailed CL user to suggest posting on AirBNB too

AirBNB on CraigslistS: https://growthhackers.com/growth-studies/airbnb

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Beepi on Craigslist

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Pinterest on Facebook

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Starbucks on Office365

Not really a hack when its a bus dev deal, but gives an interesting data-point on what to include in considering a channel or platform.

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Dropbox on Office365

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Growth Loops

Initial AcquisitionGrowth LoopsNew usersConversion processVisitsImpressionsLinear + LoopsCycle TimeInvitesOptimize1. Conversion Rate 2. # of Invites 3. Cycle Time

K-FactorS: https://bothgunsblazingblog.wordpress.com/2013/10/22/the-k-factor-growth-and-going-viral/

Conv rate (c)Avg invites per user (i)c x i = k

Note: i can be invites per users for referral loops, or can be content created & published for content loops.

K-Factor

Initial AcquisitionNew usersConversion processVisitsImpressions

When k > 1When k < 1

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Growth MultiplierWhen k > 1When k < 1When k = 1Each loop produces fewer users than the one before.Declining system.Still very good to have a loop at all!To figure out the total # of users or $s from one round of (linear) inputs, use the Growth Multiplier formulaEach loop produces more users than the one before.Would go to infinity, except you eventually saturate the market and run out of potential new users. Or competition creeks in. Or the platforms shut you off. Each loop produces the same number as the one before.Linear growth of users with each loopGoes on forever (in theory)

K-Factork = 1.1k = 1.0k = 0.8

Growth Multiplier

If k < 1, Growth Multiplier = 1/(1-k)Tells you how many users you will get from your initial set of users.

Sometimes it only takes 4 loops to cap outSometimes it takes 20 loops to cap out

Growth Multiplier

Gives you leverage on conversion improvementsIts just a 10% increase in conv rate but a 67% increase in users!Initially your conversion rate is 20%But then you optimize it through testing and get 22% conversion rate.

8.3 / 5 = 1.67

More complete exampleYou will likely have more detailed steps and need to track and optimize they all.But they easily map back the simplified model.

Example LZ FB shout-outThis loop has a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.

Cycle TimeCycle Time is the 3rd variable to optimize in growth loops. This one is key to managing cash flows.

WIIFM? Want you to leave this withUNDERSTAND (1 hour)Understanding of macro trends leading to itUnderstanding of the disciplines involvedClear litmus test for what a Growth Hack isUnderstand two main growth loops, subtypesUnderstand channel vs platform hijacksHave examples of loops and hijacksUnderstand k-factor, growth multipliers, cycle timeDO (1 hour)1. Market FitQualitative measurementQuantitative measurement2. Growth FitCompute Growth Fit Score3. Find Core LoopsComplete brainstorming exercises towards discovering your main loops4. Model LoopsModel out your top loop5. Growth RoadmapStart to fill out a growth roadmap

Growth Fit Score

Product-Market FitTalent & Tools

Roadmap CriteriaCore Loops & Model

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1. Product-Market Fit

Product Market-Fit AssessmentHow would you feel if you could no longer use [product]?Very disappointedSomewhat disappointedNot disappointed (it isnt really that useful)N/A I no longer use [product]S: Sean Ellis http://www.startup-marketing.com/using-survey-io/

At least 40% need to answer in the green.40%The Test:

Sean Ellis

Product Market-Fit AssessmentS: Sean Ellis http://www.startup-marketing.com/using-survey-io/

40%Where are you?

Proceed to Growth Fit ScoreYes, its over 40%

Check engine. Narrow in on any users who answered in the green. Find point of delight and build off it. Or fix blockers to delight. If still under 40%, pivot.No, its under 40%

We havent collected this yet.Stop. Plan out how you will measure this.

2 min

In my example, we started at the bottom didnt have a good collection system. So retooled NPS measures. Then got a result that was under 40%. Put together a 10 point plan to fix. Lastly, after implementing and testing all those measures, we got the NPS where it needed to be in order to proceed with activities like social referrals.56

Plan for Measuring Market-Fit - LZ1. What defines the core of your offering?2. How can you identify people who have used the core of your offering at least twice?3. And within in the last 2 weeks?

5 min

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Setup Market-Fit Survey Now

Activity: Go here now and setup your survey: http://www.survey.io/

5 minHow will you automate and motivate the survey invites?

Retention is the single most important thing for growth.- Alex Schultz

Alex SchultzFacebook

Quantitative Check on Product-Fit Viability

There is a segment of the population that finds this offering compelling to use regularly.There is no segment of users that finds it compelling for ongoing use.Hypothetical Scenario where new user growth is in steady stateS: Alex Schultz https://www.youtube.com/watch?v=n_yHZ_vKjno

So Sean Ellis says get above 40% on the qualitative survey of usefulnessAlex Schultz takes it a step further, and says to measure MAUs vs Days Since Signup. If you retention curve goes asymptic to a line parallel with the X axis, you have market fitIf your retention curve slopes down vs X axis, it will intercept it, and youre not ready to do growth hacking

Its ok if the green line is lower, so long as it basically flattens out to go parallel to x axis.

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Quantitative Check on Product-Fit Viability

Adding an increasing number of users at the top of the funnel doesnt help if the product doesnt have fit.Hypothetical Scenario where new user growth increases 2% per day

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We spent a bajillion bucks on the Tables ad. And now we have Million installs. Butinstalls isnt really the metric that matters. We need Daily Active Users people who come back to the platform.

They got 500K installs but only 19K DAUs. 62

2. Growth Fit ScorePersonal or embarrassing topicNatural topic of conversationLong Lead TimeRapid IterationIn person interactionCollects lots of dataIncremental featuresGame changerConsumption onlyOutputs user generated contentHard to locate prospectsUnwalled garden of prospects existsVitaminPainkillerSolo usageFacilitates interactionFasterSlower

Some offerings have the right dynamics to go fastOthers can leverage growth strategies, but should not expect the same results

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Personal or embarrassing topicNatural topic of conversationLong Lead TimeRapid IterationIn person interactionCollects lots of dataIncremental featuresGame changerConsumption onlyOutputs user generated contentHard to locate prospectsUnwalled garden of prospects existsVitaminPainkillerSolo usageFacilitates interaction

5 min

Some offerings have the right dynamics to go fastOthers can leverage growth strategies, but should not expect the same results

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3. Brainstorm Your Core Loops

15 min

SharingQAApplications for GrowthWhat about your app would make it a topic of conversation?What moment in the experience can you nudge user to share?What human emotion can you tap to motivate sharing?What added non-monetary incentives can you offer to propel more sharing?What sort of monetary incentives could you offer? How would you model out the ROI?

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InteractionsQAGrowth ImplicationsWhat person-to-person interactions does your app already facilitate?What interactions could your app facilitate?

What sort of value can you create for those persons on the non-user side of the interaction?How much activation energy would that require from the non-user and how can you leverage that?

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ContentQAApplications for GrowthWhat kind of content does your app create?What kind of content could it create?What kind of user generated content may be related to this same problem?

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Platform HijacksQAGrowth ImplicationsWhat desktop apps do your prospects use often?What website do your prospects use often?What mobile apps do your prospects use often?Where do your prospects live & work? Where do they play?Who are the biggest influencers for your prospects?Who are the biggest intermediaries for your prospects?From where do your prospects draw inspiration?

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Platform HijacksQAGrowth ImplicationsWhich platforms that you identified provide some level of programmatic access?Which platforms that you identified can you build your own programmatic access into?How can you flow your content into their platform?How can you flow their users into your platform?

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Your PlanCore LoopSecondary LoopPlatform Hijack

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4. Model Out Your Loops

Example FB shout-outThis loop as a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.

Model Growth loopYour turn.

Go here to download template:http://bit.ly/growthmodel_tvlp

10 min

5. Draft Your Growth Roadmap

AARRR for PiratesDave Macclure

S: Dave Macclure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version/3-Customer_Lifecycle_Conversion_Behavior_Websitecom

S: http://mattyford.com/blog/2014/10/9/the-aarrr-framework-metrics-for-pirates

Growth Roadmap0. Market-Fit1. Acquisition2. ActivationPaid vs Trial vs Freemium etc.Tripwire sale vs Core sale3. Referrals & HijacksFind main loops and hijacksRaise k-factorTests to increase i Tests to increase c Tests to shorten cycle time4. RevenuePricing, packagingX-sells, upsells5. RetentionHooked frameworkOctalysis frameworkPotential impact from growth modelEvaluate ideas based on:Change of it succeedingTime & Effort to test itxxPerhaps most important. Go big or go home.Hard to predictImportant, but dont only test the easy things or you could miss out on biggest opportunitiesTips on Weighting

Growth RoadmapExperiments to:Potential Value from k-factor modelLikelihood to SucceedTime & Money to test itScoreIncrease # of invitesIncrease conversionDecrease cycle time

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