Hacking GrowthJohn Hathorn

Michael Hourigan

Agenda• Quick intro to growth hacking• Looking at your business as a Funnel• Visualizing Bottlenecks• Hacking in Action• Tools We Use• Questions

What is Growth Hacking?

• The term was first used by Sean Ellis• Core focuses:

• Scalability• Innovation• User Connectivity

2-3X

What are the Pirate Metrics?

• Pirate Metrics is a metrics model for startups devised by Dave McClure of 500 Startups

AARRR!

Step 2 Step 3 4 5

Activation Retention

ReferralRevenue

100% 90% 80% 70% 60%

Macro Funnel

Step 1

Acquisition

Acquisition

• Someone visits your website• Lead• Someone walks into your store

Activation• Turning a lead into a user• Listing your first item on a FSBO site

• Creating a profile

Activation

Retention• Coming back to your site 3x• Listing a second item on a FSBO site• Opening your company’s iPhone app one

week after downloading• Submitting a receipt after two weeks of

creating an account

Revenue

Referral

• Word of Mouth• Incentivized

Referrals• Reviews

HomepageTesting

WelcomeExperience UX/UI

Optimization

AlternativeTrials

CouponOffers

Visualizing Bottlenecks

Step 1 Step 2 3 4

100% 90% 80% 90%40%

AcquisitionActivation

RetentionRevenue

Referral

Where do we start?

Split Testing

Never call a test before statistical significance has been reached!

One Step vs. Multi-step Optimization

Step 1 2 3 4 5

100% 90% 45% 70% 90% 25%

10,000 9000

40502835

2551638

One Step Optimization

Step 1 2 3 4 5

100% 90% 55% 70% 90% 25%

10,000 9000

49503465

3118780

22% INCREASE(Relative)

Compounding Gains

Step 1 2 3 4 5

100% 90% 55% 80% 90% 50%

10,000 9000

49503960

35641782 279%

INCREASE!(Relative)

Size of Funnel

Step 1 2

100% 90%

10,000 9000

80% 70%

3

72005040

More or lesssuccessful?

Let’s Look at Two Shoeboxed Examples

• 1. Mobile App• 2. Web Registration Pathway

Example 1:Mobile App

Mobile App

Step 2Step 3

80%

40%80%

25%

DownloadApp

Create Account

Clicked UpgradeBanner

Upgraded

4 5Made it to App-Store

Listing

Step 1

c

(iAd)PPC (Affordable)

$0.15

100%

Mobile App; Attacking the Bottlenecks

40% 25%Clicked UpgradeBanner Upgraded4 5

50% 35%

Delta +25% Delta +40%

Mobile App

Step 2Step 3

80%

50%

80%35%

DownloadApp

Create Account

Clicked UpgradeBanner

Upgraded

4 5App-Store

Listing

Step 1

+75%

PPC (Affordable)75% higher

c

(iAd)

100%

Example 2:Hacking the Registration

Path

Visit Homepage

Step 1 Step 2

60% 20%80% 30%

Enter Email

Name &Address

StartSubscription

Enter CreditCard

100%

SelectPlans

3 4 5

80%

Used to be 40%!

Hacking the Reg Path

Step 1 Step 2

60% 20%80% 30%100%

3 4 5

80%

1000 600 480 384 77 23

Visit

Email Address Plans Secure Subscription

Hacking the Registration Path

Hacking the Registration Path

Hacking the Registration Path

88%

Hacking the Registration Path

Visit Homepage

Step 1 Step 2

60% 37.6%80% 30%

Enter Email

Name &Address

StartSubscription

Enter CreditCard

100%

SelectPlans

3 4 5

80%

Hacking the Registration Path

Step 1 Step 2

60% 37.6%80% 30%100%

3 4 5

80%

1000 600 480 384 144 43+67 +20

Next Step: Iterating on the Gains

Hacking the Registration Path

Hacking the Registration Path (Compounding Gains)

Visit Homepage

Step 1 Step 2

80% 37.6%80% 30%

Enter Email

Name &Address

StartSubscription

Enter CreditCard

100%

SelectPlans

3 4 5

80%

Step 1 Step 2

80% 37.6%80% 30%100%

3 4 5

80%

1000 800 640 512 193 58+115 +35+200 +160 +128

Hacking the Registration Path (Compounding Gains)

250%Hacking the Registration

Path (Compounding Gains)

Where do you get ideas?

• Case Studies• Competitors• UI/UX Designers• Conversion Optimization Blogs (VWO,

Optimizely)• Analyzing Customers

Other Tests We’ve Run

• Upgrade Ad Creatives• Different Email Drip Campaigns• Calls to Action• Different Business Models (Pricing, Trial Types)• Incentives• Coupons• Push Notifications• App Store Optimization

Tools We Use

Take Aways• Use Pirate Metrics• Think of business in terms of funnels

and multi-step systems• Optimize everything, starting with

bottlenecks• A/B Test• Repeat

Questions?