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E V O L V E D I G I T A L L Y
E V O L V E D I G I T A L L Y
Growth HackingSeparating the Hype from the Hustle
E V O L V E D I G I T A L L Y
1 OverviewGreetings + Definition
2 MethodologyDigital Marketing Canvas
3 Case StudiesAirBnB, Dropbox
4 MetricsMagic Number
5 Q&A What Are You Stuck On?
agenda
E V O L V E D I G I T A L L Y
Definition
Growth hacking is an ongoing process for unlocking user engagement by testing marketing ideas after Product/Market fit.
(make stuff people want)
E V O L V E D I G I T A L L Y
Definition
Here’s why: Nothing kills a useless product faster than great marketing.
E V O L V E D I G I T A L L Y
Product/Market Fit: Technology Adoption Curve
Source: http://www.technology.org/2013/06/25/the-long-road-for-electric-vehicles/
These Folks Love New Stuff(“Squirrel?!!!”)
These Folks Just Want Solutions That Work(“Nobody Got Fired for Buying IBM”)
E V O L V E D I G I T A L L Y
Process
Trying Stuff
Experiment #2
Experiment #3
Experiment #4
Experiment #5
Which means you have to try lot’s of stuff and experiment to drive compound growth across the adoption curve
E V O L V E D I G I T A L L Y
Product/Market Fit
“A good growth rate during YC is 5-7% a week. If you can hit 10% a week you're doing exceptionally well. If you can only manage 1%, it's a sign you haven't yet figured out what you're doing.”- Paul GrahamFounder of YCombinator
Source: http://www.paulgraham.com/growth.html
E V O L V E D I G I T A L L Y
1 OverviewGreetings + Definition
2 MethodologyTools & Tactics
3 Case StudiesAirBnB, Dropbox
4 MetricsMagic Number
5 Q&AWhat Are You Stuck On?
agenda
E V O L V E D I G I T A L L Y
Process
How might we manage these experiments?
E V O L V E D I G I T A L L Y
Tadpull’s 5 Steps for Growth Hacking
Research
Strategy
ExecutionMeasure
Refine
E V O L V E D I G I T A L L Y
Data not Dreams
Pay per click
Blog post gets retweeted by influencer
Paid Advertising + Retargeting
Tech & Major Press
Each New Market Segment Requires Different Tactics to Unlock Continued Growth
Viral Referral Program
E V O L V E D I G I T A L L Y
Process
Here’s Why…
E V O L V E D I G I T A L L Y
Fundamental Truth: Law of Shitty Clickthroughs“Over time, all marketing strategies result in shitty clickthrough rates.” - Andrew Chen
E V O L V E D I G I T A L L Y
Fundamental Truth
The Challenge of the 1%~99% of Users are not ready to Convert.(So, it’s often all about the Nurturing to Conversion) 99%
1%
Not Yet Ready
E V O L V E D I G I T A L L Y
Key TakeawayConstant tweaking and testing is required to breakthrough to new growth channels
E V O L V E D I G I T A L L Y
Process
Tools & Tactics
E V O L V E D I G I T A L L Y
ExampleOnline Store That Sells Headphones
E V O L V E D I G I T A L L Y
Workflow: Hypothesis: Maybe triathletes are a good target market?1. Define your Business Goals2. Map the Digital Channels for acquisition + nurture3. Color code riskiest hypotheses4. Update based on data (Analytics & Conversations)
E V O L V E D I G I T A L L Y
“Best headphones for triathlon training”
We’ll use PPC to bid on keywords with “triathlon” during season
Business Goal: 5% month over month growth in Sales
Blog: Tips on using music on long training rides
Email Opt-in
Posting blog content on Facebook during triathlon season
Pulling users back onsite with special offers
Crowdsourced playlists/artists for cycling
% users coming in from Facebook and purchasing
Purchasing headphones at a reasonable cost-per-acquisition
SEO Social PPC
E V O L V E D I G I T A L L Y
Tools (there’s a zillion of ‘em)
SEO Social PPCConnect
Cultivate
Close
E V O L V E D I G I T A L L Y
Create real-time dashboards of your Key Performance Indicators (KPIs)
(we like Cyfe)
Tools Managing the Firehouse of Data
E V O L V E D I G I T A L L Y
Process
Sample Numbers to Know (Good Stuff to Track Across SEO, Social, Paid)
E V O L V E D I G I T A L L Y
Process
Customer Acquisition Costs by channel• Viral Coefficients (if applicable to your product)• SEO Keyword Traction (Long-play but Conversions can be quite good)• SEM (Instant engagement but Arms Race)• Social (Usually lower Conversion Rate when a sale is involved)• Activation %’s (“Are certain channels turning into customers fasters?”)
Retention by channel• % Churn (Critical for SaaS companies & eCommerce)• Daily/Weekly/Monthly Active User (Different for B2B vs. B2C)• Net Promotor Score (“Would you recommend us to a friend?”)
Customer Lifetime Value by channel• Dependent on Acquisition, Nurturing + Internal Costs• Highly tied to Retention (which is why Product/Market Fit is so key)
E V O L V E D I G I T A L L Y
Key TakeawayYour customer funnel and acquisition channels will be unique to your product, platform, and user.
E V O L V E D I G I T A L L Y
1 OverviewGreetings + Definition
2 MethodologyDigital Marketing Canvas
3 Case StudiesAirBnB, Dropbox
4 MetricsMagic Numbers
5 Q&AWhat Are You Stuck On?
agenda
E V O L V E D I G I T A L L Y
“Hiring professional photographers to shoot the apartments led to two to three times as many bookings on New York listings, and by the end of the month Airbnb’s revenue in the city had doubled.”
Source: https://growthhackers.com/companies/airbnb/
Analytics tells the “what” happened but you have to get to the “why” it happened - this is super important.
E V O L V E D I G I T A L L Y
60% increase
in sign-ups
Source: http://www.slideshare.net/gueste94e4c/dropbox-startup-lessons-learned-3836587
Sometimes you can turn users into an evangelist army that kicks off a viral loop - if your product offers value to both Referrer and New Customer.
E V O L V E D I G I T A L L Y
Key TakeawayKnow your analytics to identify friction (“what” happened) and then investigate the “why it happened” offline.
E V O L V E D I G I T A L L Y
1 OverviewGreetings + Definition
2 MethodologyDigital Marketing Canvas
3 Case StudiesAirBnB, Dropbox, Hotmail
4 MetricsMagic Number
5 Q&AWhat Are You Stuck On?
agenda
E V O L V E D I G I T A L L Y
Definition
A Magic Number helps unite engineering, marketing, and sales around a simple metric to focus everyone’s efforts.(It’s like a ball of string for herding cats)
E V O L V E D I G I T A L L Y
Your Magic Number for Growth Hacking
What metric is key to the business growing and will kill you if you ignore it?
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2
3
How can you influence this?
Where can you get the biggest lift?
E V O L V E D I G I T A L L Y
Facebook’s Magic Number for Growth Hacking
Users who added 10 friends within a week were likely to stay active on Facebook
Source: https://growthhackers.com/companies/slack-fastest-growing-b2b-saas-business-ever/
10
E V O L V E D I G I T A L L Y
Twitter’s Magic Number for Growth Hacking
Users who followed 30 others were much more likely to remain engaged with the service over time
Source: https://growthhackers.com/companies/slack-fastest-growing-b2b-saas-business-ever/
3030
E V O L V E D I G I T A L L Y
Slack’s Magic Number for Growth Hacking
Users who send 2,000 messages are much more likely to keep using and eventually paying for the service.
Source: https://growthhackers.com/companies/slack-fastest-growing-b2b-saas-business-ever/
2000
E V O L V E D I G I T A L L Y
”
“You have to figure out what conversion means in your case. What does retention mean? What does activation mean? For every business, it’s going to be slightly different because of the nature of the product and the kinds of people who use it.
- Stewart Butterfield, Cofounder of SlackFastest Growing B2B SaaS Company in History
E V O L V E D I G I T A L L Y
Key TakeawayKnow what number is critical to your success and execute/test relentlessly to achieve it by investing in a high quality and tech-savvy team
E V O L V E D I G I T A L L Y
Metrics
Quick Summary
E V O L V E D I G I T A L L Y
Quick Review
Make sure you have Product/Market fit (Shoot for 5-10% growth)
Define and run experiments based on where you are in customer adoption curve (Squirrel? vs. “I buy IBM”)
Think long and hard on your Magic Number (this can change as you grow through adoption curves)
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2
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4Conversations with real users are often just as powerful as technology stacks early on (What vs. Why)
E V O L V E D I G I T A L L Y
Metrics
Frequently Asked Questions
E V O L V E D I G I T A L L Y
Mistakes We See
“How do I get growth?”Answer: Do your absolute best to get Product/Market fit (make stuff people want). Know which acquisition channels produce results based on where you are in the adoption curve and think of ways to lower acquisition costs.
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E V O L V E D I G I T A L L Y
Mistakes We See
“Tactic X worked for Uber/AirBnB/etc. how can we replicate that?”Answer: Steal for creative inspiration but copying growth hacking tactics exactly rarely produces results. Growth is usually the result of trying lot’s of stuff and doubling down on what works - each company is unique.
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E V O L V E D I G I T A L L Y
Mistakes We See
“Which technology stack do I need?”Answer: Honestly, technology stacks for driving growth are quickly becoming commodities. Instead, focus on simplicity, speed, and building tech around user’s needs with good measurement tools in place. Here’s where open source rules.
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E V O L V E D I G I T A L L Y
Mistakes We See
“What analytics package is best?”Answer: Depends on web vs. mobile but you want tools that will help you measure your Magic Number and factors influencing that. Google Analytics, Mixpanel, RJ Metrics, etc - all are quite powerful but consider the 80/20 Rule when using them
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E V O L V E D I G I T A L L Y
Mistakes We See
“How do I hire for growth hacking?”Answer: Great talent always has great options. Be prepared to invest. Cutting costs here can have big consequences for SEO, SEM, and content. You need great product + great marketing (with analytics savviness) to produce growth.
5
E V O L V E D I G I T A L L Y
summary
ThankYou
Empathy Builds Empires!
e: [email protected] t: @jacobmcook
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