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Growth Hacking
A New Approach to Marketing:What it is and How You Can Use It
What is Growth Hacking?
• Its how all the major start-ups grew, and how all the new ones are trying to grow
• Used as an approach to growth instead of marketing in Silicon Valley
• At its heart: it integrates product development in the marketing process
Google’s Hack of Yahoo
Between 2000 – 2004 google experienced a ten fold increase in daily search queries
Yahoo search results somewhere between 2000 and 2004
So what is it?
Move Fast Focus On Big Wins
Target The Right
Customers
Automation is key
Your Product Is Your
Marketing
Tends not to be
Paid Based on pushing a proposition to a customer
Tends to beFar more data driven Far more tech driven
>not suggesting enterprises drop traditional marketing, but these techniques and approaches will improve your marketing
Output: Non-traditional marketing approaches that drive exponential growth.
PR
INC
IPL
ES
So what is it really?
“…..you have to search through your data from
your more active and passionate users and discover
the deep core patterns that encouraged those users
to become active” - Josh Elman
Twitter’s on-boarding
Insight:
• If you manually select and followed at least 5-10 Twitter accounts in your first day on Twitter, you are much more likely to become a long term user
2007: 2 million users 2014: 200 million active users
Product Change:
How do you make that happen?
Marketing Product/Tech
Marketing Product/Tech
TR
AD
ITIO
NA
L
MA
RK
ET
ING
GR
OW
TH
T
EA
MS
• Separate teams• Marketing brief goes into the work
stack – you may see it next year• Marketing thinks Product/Tech are
slow and are prone to saying “no”• Product/Tech thinks Marketing are
reckless
• Unified Teams, unified KPIs• Marketing & Product/Tech form the brief
as a team• Leverages the ability of the product itself
to market• Reckless briefs become increasingly
viable• Tech response becomes increasingly in
tune with business reality
Structure: How an enterprise can growth hack
Marketing
ProductData
Growth team• 1-2 technical marketers• One Data Scientist• 2 developers not reporting into product development• Work on marketability of the product
Product Team• Current team• Work on
product improvement
Marketing Team
• Traditional Marketing outputs
Data Team• Data
Requests • Some insight
Some concepts with examples
How have things changed: Marketing is LOPA
Publisher Destination
Publisher Destination
TR
AD
ITIO
NA
L
MA
RK
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GR
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HA
CK
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• You buy an ad• If your ad is good enough,
people visit
• You integrate with publisher sites by providing content
• The content must add value on the site
• If compelling enough people will visit
• You need not pay all the time
LOPA: Leveraging other peoples audiences
Air bnb – Growth hacking Craigs list using LOPA
It took just 4 years for airbnb to serve its 1st 4 million guests
MonetiseDrive UsageFind users
……and oh yes, they think they are pirates
A A R R R!
Acquisition Activation Retention Referral Revenue
Acquisition Revenue
Acquisition Activation Revenue
THE GROWTH HACKER
THE OLD SCHOOL
THE FREMIUM
Acquisition Referral Activation Retention RevenueTHE GROWTH ENGINEER
Drop-Box’s Incentivised sharing & onboarding
Dropbox grew from 100,000 users to 4,000,000 in under two years
Activate
Retain
Refer
Some new metrics you need to be using
New Metrics: K Coefficient
• VK – Visitors plus referred visitors from networkVK 1000 visitors £5 CPA Effective CPA
V0 1000+0 = 1000 £5000 £5
V0.1 1000+100 = 1100 £5000 £4.55
V0.2 1000+200 = 1200 £5000 £4.17
V1 1000+1000 = 2000 £5000 £2.5
V2 1000+2000 = 3000 £5000 £1.6
V3 1000+3000 = 4000 £5000 £1.25
• Reality is this most outcomes will not go viral• Your goal is to get it above 0, to get effective CPA down
Viral
grow
th
Linkedin – leveraging your connections
Member growth• 6k in 2003• 100k in 2004• 1.7m in 2005• 4.2 in in 2006• 90m 2010• 300m 2014
Aggregating it all together
Traffic source 1
Traffic source 2
Audience 1 Audience 2 Content group
Acquisition(Engaged traffic) 60,000 63,000 14,400 18,000 72,000
Activation(Micro conversion)
9,000(15%)
8,505 (14%)
3,240(23% )
2,700 (15%)
10,800 (15%)
Referral(K Coefficient)
450 (5%)
425 (5%)
324 (10%)
135 (5%)
540 (5%)
Retention 2,700 (30%)
2,552 (30%)
972 (30%)
810 (30%)
3,240 (30%)
Revenue 180(2%)
170 (2%)
81(2.5%)
54 (2%)
216 (2%)
A totally new way at looking at your metrics:
What does this mean for enterprise – how do you use it?
1. Set up your KPIs for success: Know when you shift the dial
2. Set up internal growth team: Keep it small: 3-5 people: requires: marketer, technical, data) – all on the same KPI
3. Do some basics: All the things you couldn’t do before. Get some basics over the line
4. Brainstorm 10-20 growth hacks: work them through with your team – what is achievable, what will have a big impact and wont get watered down
5. Attempt no more than 4: expect 3 of them to fail, if 1 succeeds, iterate to get it as big as possible
