Date post: | 14-Jun-2015 |
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Business |
Upload: | sam-witteveen |
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Getting TractionSam Witteveen
Traction shows your idea is working
What is traction for you?
Users? Customers? Money?
B2B - Measure 1. Customers 2. Number of transactions 3. Size of transaction 4. Money
B2C - Measure 1. Traffic 2. Conversion to Users 3. User Engagement (desired actions) 4. Money
It’s the sign of real & consistent growth.
Define what it means to you. - vanity metrics are for press only
Know Your Customer
Who is really the customer?
The Customer is who gives you the money.
If your making an advertising play the customer is the advertiser not the users
If you are doing freemium play then not all your users are your customers
The Channels
Ads
PR
SEO/SEM
Content Marketing
Email Marketing
Virality
Social Marketing
Partnerships
Biz Dev
Direct Sales
Affiliates
Community Outreach
Events
Distribution Channels
Pick and test your channels carefully.
Don’t just use what everyone else uses.
You usually have one that delivers 80%
Often the disruption of big companies is a disruption of distribution.
No Traffic Problems
You don’t have a traffic problem you have an offer problem - offer not converting enough to buy traffic
Offer Problem - no offer , wrong offer , not sustainable offer.
Measurement Problem - Most startups don’t know what traffic is worth to them
Traffic is Everywhere
You just need to know how much you can pay
B2C - Kabam $13 / per user
B2B - R.E. $5,000
Do Stuff that Doesn’t Scale
Reach out to people manually
At the start going from 1 to 2 customers is 100% growth
Evangelize - Do whatever it takes to get people on board.
Read Paul Graham piece
B2B
The Musts
Everyday you need to something to get a new customer.
Send a email, make a phone call, visit people
You have to be the companies best sales person
Know Your Numbers
LTV - Life time value
CAC - Customer Acquisition Cost
Conversion Rate
Can you go negative?
If you have a high LTV then CAC can be more than the cost of the first purchase.
The more you can spend that your customers the more likely you can beat them.
SAAS - Freemium
Reward continuity - give a discount for yearly
$67 is the magic number
Most SAAS will plateau out at a few k paying users
B2C
A Good Goal
$1/ User / Month
Ads , Sell own products, Affiliate Offers
Early growth 1%/day
Know Your Numbers
Retention/Engagement Rates
ARPU - Average Revenue Per User
Cohort Analysis - Watch Phil Libin video
DAU/MAU percentage - you want 50% often get 10%
Measure Actions not people - Messaging / posts
Know What Causes your Traction
Facebook: 30 Friends = come back everyday
Starts with 10 Friends in 14 Days
On boarding Process
Virality & Sharing?
Ads - Adwords etc?
Virality
K Factor Viral Loop
Signup-> email friend (10) -> Email Opens(50%) -> CTR (40%) -> Sign Up (20%) = 0.4
0.9 is dying 1.1 is success
Buying Users/Downloads
Don’t buy users to look cool
FP didn’t buy till we had over 1 mil organic
You can buy to do tests of virality
If doing it Facebook is the best platform
Seeding
Creating the community
Posting yourself - Kevin Rose Tiiny
Post to bring people back to your site
Overall
Focus 50% of your time on getting traction
Measure like crazy. Experiment like crazy.
As you grow try new stuff. What doesn’t work now could work later on.