Growth Hacking: A Crash Course

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Transcript of Growth Hacking: A Crash Course

  • Growth Hacking: A Crash Course

    @davelocity

  • Lets start with a story

  • The year is 2008

  • Theres a new product

    Its a product that tries to solve a problem a lot of people have

  • Its gotten some traction

    They consistently get users and they feel theyre at product-market fit

  • Its time to go bigger

    Time to scale up. Problem: the founders have zero marketing experience

  • So whats next?

    So they do what they think theyre supposed to do

  • So whats next?

    Get PR coverage!

  • So whats next?

    Get PR coverage!Buy ads!

  • So whats next?

    Get PR coverage!

    Post on social media!

    Buy ads!

  • So whats next?

    Get PR coverage!

    Post on social media!

    Buy ads!

    Hire an SEM guru!

  • So whats next?

    Get PR coverage!

    Post on social media!

    Buy ads!

    Hire an SEM guru!

    And you know what, it worked.

  • So whats next?

    Get PR coverage!

    Post on social media!

    Buy ads!

    Hire an SEM guru!

    BUT

  • So whats next?

    Get PR coverage!

    Post on social media!

    Buy ads!

    Hire an SEM guru!

    Customer acquisition FAIL

    It worked, but the economics were totally broken. Its possible to grow and fail.

  • So whats next?

    Get PR coverage!

    Post on social media!

    Buy ads!

    Hire an SEM guru!

    Customer acquisition FAIL

    e.g. adsCPA = $388, LTV = $99

  • Okay, lets regroup.How about we

    Back to the drawing board; otherwise they wouldve used up all their funding

  • Okay, lets regroup.How about we

    Hey, look at this data I found

    Suddenly, a wild usage-data insight appears

  • Okay, lets regroup.How about we

    Our customers LOVE telling their friends about us

  • Okay, lets regroup.How about we

    Is there a way we can help them do that?

  • Okay, lets regroup.How about we

    How about a referral program?

    Instead of paying for users, could they just amplify organic WOM behavior?

  • Okay, lets regroup.How about we

    Is there a way we can help them do that?

    Good idea J

  • Okay, lets regroup.How about we

    Is there a way we can help them do that?

    Good idea J 35% of signups came from referral program

  • Okay, lets regroup.How about we

    Is there a way we can help them do that?

    Good idea J 35% of signups came from referral program

    Customer base grew 40X in 15 months

  • Okay, lets regroup.How about we

    Is there a way we can help them do that?

    Good idea J 35% of signups came from referral program

    Customer base grew 40X in 15 months 15% MoM growth

  • True story

    Source: Startup Lessons Learned by @drewhouston

  • Dropbox

  • Dropbox

    (2008: 100K users)

  • Dropbox

    (2014: 275M users)

  • How did they do that?

  • They stumbled on a Growth Hack

    How did they do that?

  • How did they do that?

    They stumbled on a Growth Hack

    A fancy way to describe a tactic forgetting more customers by using a

    certain combo of skills

  • How did they do that?

    They stumbled on a Growth Hack

    A fancy way to describe a tactic forgetting more customers by using a

    certain combo of skills

    Growth with skills, not money

  • Skills Needed To Find Growth Hacks

    We can deconstruct what they did. There were 3 skills at play:

  • MARKETING

    Skills Needed To Find Growth Hacks

    Stats, measurement, copywriting, creative, channel analysis, etc

  • MARKETING PRODUCT

    Skills Needed To Find Growth Hacks

    Understanding user behavior, roadmap planning, managing resources

  • MARKETING PRODUCT

    TECH

    Skills Needed To Find Growth Hacks

    Ability to create repeatable processes, engineering mindset (not nec. coding)

  • MARKETING PRODUCT

    Growth hacker

    Skills Needed To Find Growth Hacks

    TECH

    Growth hacks can be found at the intersection of the 3 skillsets

  • Growth Hackersare people who have

    all 3 skillsets

  • Growth Hackersare people who have

    all 3 skillsets

  • Growth Hackersare people who have

    all 3 skillsets

    Growth Hackingis the act of finding opportunities

    using these 3 skillsets

  • How Growth Hacking Works

  • FIRST Your product has to be ready for growth

  • FIRST Your product has to be ready for growth

    x =

    If you just launched, or biz model not defined, just stop. Youre pouring gas on cold wood. Waste of resources. Start a fire first.

  • FIRST Your product has to be ready for growth

    x =

    x =

    But, if you have a small fire you have traction, customers, revenue go for it

  • Use data. Use the Pirate Metrics frameworkto visualize your funnel

    SECOND

    This is one of many frameworks you can use. I just find this to be the simplest

  • SECOND Use data. Use the Pirate Metrics frameworkto visualize your funnel

    AARRR!

    Based on Startup Metrics for Pirates by @dmc500hats

  • Acquisition

    Note that each stage means different things to different companies

  • Acquisition

    Activation

    Everyones definition of Activation, Retention, etc is different.The point is to define the metric and use GH skills to improve them

  • Acquisition

    Activation

    Retention

  • Acquisition

    Activation

    Retention

    Referral

  • Acquisition

    Activation

    Retention

    Referral

    Revenue

  • Acquisition

    Activation

    Retention

    Referral

    Revenue

    Growth Hackers use their skills to grow the number of people

    at each stage

  • Acquisition

    Activation

    Retention

    Referral

    Revenue

    Growth Hackers use their skills to grow the number of people

    at each stage

  • 1. Acquisition

  • Acquisition

    M

    P

    T

    What channels are most effective?

    What attracts people to our product?

    How can we make it scalable?

    How can each skill contribute to increasing the number of people at each stage?

  • Acquisition

    M

    P

    T

    Use analytics to rank channels

    What attracts people to our product?

    How can we make it scalable?

    (This is just a small sample of what you could do for each skill)

  • Acquisition

    M

    P

    T

    Use analytics to rank channels

    Study customer behavior for insights

    How can we make it scalable?

  • Acquisition

    M

    P

    T

    Use analytics to rank channels

    Study customer behavior for insights

    Use available tech to make it easy

  • Acquisition

    HotmailP.S. I love you. Get Hotmail.

    M = what channels can we use? P = how can we hook into product? T = how can we make it scalable?

  • Acquisition

    AirbnbPost to Craigslist

    Via http://bit.ly/11wtYR4

  • 2. Activation

  • Activation

    M

    P

    T

    What messaging is most effective?

    What factors have the most impact?

    How can we implement?

    At this stage, you want people to engage with product in a meaningful way

  • Activation

    M

    P

    T

    Measure and compare campaigns

    What factors have the most impact?

    How can we implement?

    You have their attention; figure out what the best message is

  • Activation

    M

    P

    T

    Measure and compare campaigns

    Understand what levers you have

    How can we implement?

    What assets do you have that can help you hook them in?

  • Activation

    M

    P

    T

    Measure and compare campaigns

    Understand what levers you have

    Use A/B testing tools

    How can you use data to inform your decisions?

  • Activation

    LinkedInGamified profiles

    LinkedIn hooks you by getting you committed to filling out your profile

  • Activation

    EcommerceA/B test product photos

    A B

    How can you increase the # of people who browse multiple pages on your site?

  • 3. Retention

  • Retention

    M

    P

    T

    How can we stay top of mind?

    What causes customers to churn?

    What can we automate?

    What MPT questions would you ask to increase # of ppl at this stage?

  • Retention

    M

    P

    T

    Audit available channels

    What causes customers to churn?

    What can we automate?

    And heres a small set of the things you could do to answer those questions

  • Retention

    M

    P

    T

    Audit available channels

    Mine usage data for insights

    What can we automate?

  • Retention

    M

    P

    T

    Audit available channels

    Mine usage data for insights

    Create processes or tools

  • Retention

    QuoraDigest emails w/ cool content

    Quora gets you to come back by teasing you with content they know youre interested in

  • Retention

    ZyngaEmail to churning players

    Social games know they can make you come back by offeringyou valuable in-game items for free

  • 4. Referral

    At this point, you should have communicated your value so clearly thatreferrals feel natural

  • Referral

    M

    P

    T

    What copy will provide the