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BUILDING A GROWTH MACHINE
THE METHOD BEHIND THE MACHINE
!
Brian Balfour :: @bbalfour :: http://www.coelevate.com
WHAT TACTIC WOULD YOU USE TO GROW
MY COMPANY?
Brian Balfour :: @bbalfour :: http://www.coelevate.com
4
Brian Balfour :: @bbalfour :: http://www.coelevate.com
ONE…
TIP…
SECRET…
HACK…
TACTIC…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
Brian Balfour :: @bbalfour :: http://www.coelevate.com
THE ANSWER TO…
IS NOT WHAT MOST THINK IT IS
WHAT TACTIC WOULD YOU USE TO GROW
MY COMPANY?
Brian Balfour :: @bbalfour :: ht...
IT HAS NOTHING TO DO WITH TACTICS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
IT HAS EVERYTHING TO DO WITH PROCESS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
PROCESS?!?!?!
WHAT CAN BE SO SPECIAL ABOUT PROCESS?
Brian Balfour :: @bbalfour :: http://www.coelevate.com
4 REASONS TO FOCUS ON
PROCESS FIRST, TACTICS SECOND
Brian Balfour :: @bbalfour :: http://www.coelevate.com
12
1. WHAT WORKS FOR OTHERS, WON’T
WORK FOR YOU
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR AUDIENCE IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR PRODUCT IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR BUSINESS MODEL IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR CUSTOMER JOURNEY IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR BUSINESS IS DIFFERENT
PLAIN AND SIMPLE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
18
2. GROWTH = SUM(1, 2, 3, 4….X)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
What happened here?
Brian Balfour :: @bbalfour :: http://www.coelevate.com
20
SILVER BULLETS DON’T EXIST
Brian Balfour :: @bbalfour :: http://www.coelevate.com
21
3. RATE OF CHANGE IS ACCELERATING
Brian Balfour :: @bbalfour :: http://www.coelevate.com
SEO No Keyword Data, Author Rank, Content
Freshness, Social Shares, Search Result Format
DISPLAY RTB, No Cookies, Mobile
E...
CHART CREDIT: JAMES CURRIER
Brian Balfour :: @bbalfour :: http://www.coelevate.com
24
4. YOU NEED A MACHINE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
A MACHINE IS…
1
2 PREDICTABLE
SCALABLE
3 REPEATABLE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
THE MACHINE PRODUCES THE TACTICS
THE PROCESS MAKES THE MACHINE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
SO LET’S SEE THE PROCESS…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
THE GOALS OF THE PROCESS
1 RHYTHM
Momentum is powerful. Establish a cadence to fight
through failures, get to successes, an...
THE FIRST STEP: KNOW WHERE
WE ARE GOING
Brian Balfour :: @bbalfour :: http://www.coelevate.com
HOW WE SET GOALS
OBJECTIVE: Qualitative statement
!
TIMEFRAME: 30 - 90 Days
!
KR1: Measurable Goal 1 (Hit 90% Of Time)
KR2...
ONCE WE KNOW WHERE WE ARE GOING WE
HIT THE ROAD AS FAST AS POSSIBLE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
6. Systemize
(Playbooks)
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
3. Test
(Experiment Doc)
4. Impl...
FOUR KEY DOCUMENTS
1 BACKLOG The backlog of experiment ideas.
2 PIPELINE Experiments that were ran or are currently runnin...
STEP ONE: BRAINSTORM
BRAINSTORM ON THE INPUTS
NOT THE OUTPUTS…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP ONE: BRAINSTORM
ACTIVATION RATE = STEP 1 CONV * STEP 2 CONV * STEP 3 CONV
IF WE WANT TO
IMPROVE THIS
WE BRAINSTORM ON...
4 WAYS TO GENERATE GROWTH IDEAS
(Read The Innovators Solution)
1 OBSERVE How are others doing it? Look outside of your
imm...
STEP ONE: BRAINSTORM
CREATE A BACKLOG
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP TWO: PRIORITIZE
1
2 IMPACT
PROBABILITY
3 RESOURCES	
LOW - 20%, MEDIUM - 50%, HIGH - 80%
Comes from your hypothesis. T...
STEP TWO: PRIORITIZE
CREATING A HYPOTHESIS
IF SUCCESSFUL, [VARIABLE] WILL
INCREASE BY [IMPACT], BECAUSE
[ASSUMPTIONS].
Bri...
STEP TWO: PRIORITIZE
JUSTIFYING YOUR ASSUMPTIONS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1
2 QUALITATIVE
QU...
STEP TWO: PRIORITIZE
CREATE EXPERIMENT DOC
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP THREE: TEST
WHAT IS THE MVT
(MINIMUM VIABLE TEST)
TO UNDERSTAND OUR HYPOTHESIS?
Brian Balfour :: @bbalfour :: http://...
STEP THREE: TEST
WRITE THE EXPERIMENT DESIGN IN EXPERIMENT DOC
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP FOUR: IMPLEMENT
GET SHIT DONE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP FIVE: ANALYZE
1
2 ACCURACY
IMPACT
3 WHY?	
How close to your hypothesis?
The most important question you can ask. Why ...
STEP FIVE: ANALYZE
LEARNINGS + ACTION ITEMS IN EXPERIMENT DOC
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP SIX: SYSTEMIZE
1 PRODUCTIZE Productize as much as you can with technology
and engineering.
2 PLAYBOOKS For the things...
6. Systemize
(Playbooks)
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
3. Test
(Experiment Doc)
4. Impl...
WHAT A TYPICAL WEEK LOOKS LIKE
Monday Tuesday Wednesday Thursday Friday
Growth Meeting
- Personal Learnings
- Goal Review
...
ZOOM OUT (set OKR’s)
ZOOM IN (4 - 12 weeks)
ZOOM OUT
ZOOM IN
ZOOM OUT….
Brian Balfour :: @bbalfour :: http://www.coelevate...
MACRO OPTIMIZATION
QUARTERLY REVIEW
1
2 ACCURACY
BATTING AVG
3 THROUGHPUT	
How many successes to failures? Is it improving...
THANKS!
MORE ON MY SITE: HTTP://WWW.COELEVATE.COM
Brian Balfour :: @bbalfour :: http://www.coelevate.com
BRIAN BALFOUR
VP ...
[500DISTRO] The Scientific Method: How to Design & Track Viral Growth Experiments
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[500DISTRO] The Scientific Method: How to Design & Track Viral Growth Experiments

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Brian Balfour, VP Growth, HubSpot

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Transcript of "[500DISTRO] The Scientific Method: How to Design & Track Viral Growth Experiments"

  1. 1. BUILDING A GROWTH MACHINE THE METHOD BEHIND THE MACHINE ! Brian Balfour :: @bbalfour :: http://www.coelevate.com
  2. 2. WANT TO KNOW THE #1 QUESTION I’M ASKED ABOUT GROWTH? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  3. 3. WHAT TACTIC WOULD YOU USE TO GROW MY COMPANY? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  4. 4. 4 Brian Balfour :: @bbalfour :: http://www.coelevate.com
  5. 5. ONE… TIP… SECRET… HACK… TACTIC… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  6. 6. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  7. 7. THE ANSWER TO… IS NOT WHAT MOST THINK IT IS WHAT TACTIC WOULD YOU USE TO GROW MY COMPANY? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  8. 8. IT HAS NOTHING TO DO WITH TACTICS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  9. 9. IT HAS EVERYTHING TO DO WITH PROCESS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  10. 10. PROCESS?!?!?! WHAT CAN BE SO SPECIAL ABOUT PROCESS? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  11. 11. 4 REASONS TO FOCUS ON PROCESS FIRST, TACTICS SECOND Brian Balfour :: @bbalfour :: http://www.coelevate.com
  12. 12. 12 1. WHAT WORKS FOR OTHERS, WON’T WORK FOR YOU Brian Balfour :: @bbalfour :: http://www.coelevate.com
  13. 13. YOUR AUDIENCE IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  14. 14. YOUR PRODUCT IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  15. 15. YOUR BUSINESS MODEL IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  16. 16. YOUR CUSTOMER JOURNEY IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  17. 17. YOUR BUSINESS IS DIFFERENT PLAIN AND SIMPLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  18. 18. 18 2. GROWTH = SUM(1, 2, 3, 4….X) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  19. 19. What happened here? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  20. 20. 20 SILVER BULLETS DON’T EXIST Brian Balfour :: @bbalfour :: http://www.coelevate.com
  21. 21. 21 3. RATE OF CHANGE IS ACCELERATING Brian Balfour :: @bbalfour :: http://www.coelevate.com
  22. 22. SEO No Keyword Data, Author Rank, Content Freshness, Social Shares, Search Result Format DISPLAY RTB, No Cookies, Mobile EMAIL Tabbed Inboxes, Inbox Actions, Unsubscribe, Mobile FACEBOOK Newsfeed Ads (4 formats), Video Ads, Optimized CPM, CTA Format, Custom Audiences, etc, etc
  23. 23. CHART CREDIT: JAMES CURRIER Brian Balfour :: @bbalfour :: http://www.coelevate.com
  24. 24. 24 4. YOU NEED A MACHINE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  25. 25. A MACHINE IS… 1 2 PREDICTABLE SCALABLE 3 REPEATABLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  26. 26. THE MACHINE PRODUCES THE TACTICS THE PROCESS MAKES THE MACHINE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  27. 27. SO LET’S SEE THE PROCESS… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  28. 28. THE GOALS OF THE PROCESS 1 RHYTHM Momentum is powerful. Establish a cadence to fight through failures, get to successes, and find momentum 2 LEARNING Constant learning of our customer, product, channels and feeding that learning into the process to improve. 3 AUTONOMY Individuals decide what they work on to achieve the team goals. 4 ACCOUNTABILITY With autonomy, comes accountability. You don’t have to be right all the time, but there is an expectation to improve. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  29. 29. THE FIRST STEP: KNOW WHERE WE ARE GOING Brian Balfour :: @bbalfour :: http://www.coelevate.com
  30. 30. HOW WE SET GOALS OBJECTIVE: Qualitative statement ! TIMEFRAME: 30 - 90 Days ! KR1: Measurable Goal 1 (Hit 90% Of Time) KR2: Measurable Goal 2 (Hit 50% Of Time) KR3: Measurable Goal 3 (Hit 10% Of Time) ! Brian Balfour :: @bbalfour :: http://www.coelevate.com
  31. 31. ONCE WE KNOW WHERE WE ARE GOING WE HIT THE ROAD AS FAST AS POSSIBLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  32. 32. 6. Systemize (Playbooks) 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 3. Test (Experiment Doc) 4. Implement 5. Analyze (Experiment Doc) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  33. 33. FOUR KEY DOCUMENTS 1 BACKLOG The backlog of experiment ideas. 2 PIPELINE Experiments that were ran or are currently running and the highlights of their results. 3 EXPERIMENT DOC Objective, Hypothesis, Experiment Design, Results, Analysis, and Learnings 4 PLAYBOOKS Step by step guides for successful experiments that should be repeated. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  34. 34. STEP ONE: BRAINSTORM BRAINSTORM ON THE INPUTS NOT THE OUTPUTS… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  35. 35. STEP ONE: BRAINSTORM ACTIVATION RATE = STEP 1 CONV * STEP 2 CONV * STEP 3 CONV IF WE WANT TO IMPROVE THIS WE BRAINSTORM ON THESE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  36. 36. 4 WAYS TO GENERATE GROWTH IDEAS (Read The Innovators Solution) 1 OBSERVE How are others doing it? Look outside of your immediate product space. Walk through together. 2 QUESTION Question brainstorming. Why? What is… What if… What about… How do we do more of… 3 ASSOCIATE Connect the dots between unrelated things. i.e What if our activation process was like closing a deal? 4 NETWORK Growth mastermind groups. Build your network of growth people. I’m on the phone every day for ideas
  37. 37. STEP ONE: BRAINSTORM CREATE A BACKLOG Brian Balfour :: @bbalfour :: http://www.coelevate.com
  38. 38. STEP TWO: PRIORITIZE 1 2 IMPACT PROBABILITY 3 RESOURCES LOW - 20%, MEDIUM - 50%, HIGH - 80% Comes from your hypothesis. Take into account long lasting effects vs one hit wonders. Marketing, Design, Engineering 1 Hour, 1/2 Day, 1 Day, 1 Week Brian Balfour :: @bbalfour :: http://www.coelevate.com
  39. 39. STEP TWO: PRIORITIZE CREATING A HYPOTHESIS IF SUCCESSFUL, [VARIABLE] WILL INCREASE BY [IMPACT], BECAUSE [ASSUMPTIONS]. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  40. 40. STEP TWO: PRIORITIZE JUSTIFYING YOUR ASSUMPTIONS Brian Balfour :: @bbalfour :: http://www.coelevate.com 1 2 QUALITATIVE QUANTITATIVE 3 SECONDARY Previous Experiments, Surrounding Data, Funnel Data Surveys, Support Emails, User Testing Recordings Networking, Blogs, Competitor Observation, Case Studies
  41. 41. STEP TWO: PRIORITIZE CREATE EXPERIMENT DOC Brian Balfour :: @bbalfour :: http://www.coelevate.com
  42. 42. STEP THREE: TEST WHAT IS THE MVT (MINIMUM VIABLE TEST) TO UNDERSTAND OUR HYPOTHESIS? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  43. 43. STEP THREE: TEST WRITE THE EXPERIMENT DESIGN IN EXPERIMENT DOC Brian Balfour :: @bbalfour :: http://www.coelevate.com
  44. 44. STEP FOUR: IMPLEMENT GET SHIT DONE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  45. 45. STEP FIVE: ANALYZE 1 2 ACCURACY IMPACT 3 WHY? How close to your hypothesis? The most important question you can ask. Why did you see the result that you did? What were the results of the experiment? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  46. 46. STEP FIVE: ANALYZE LEARNINGS + ACTION ITEMS IN EXPERIMENT DOC Brian Balfour :: @bbalfour :: http://www.coelevate.com
  47. 47. STEP SIX: SYSTEMIZE 1 PRODUCTIZE Productize as much as you can with technology and engineering. 2 PLAYBOOKS For the things you can’t productize, build into step by step playbooks to make them repeatable. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  48. 48. 6. Systemize (Playbooks) 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 3. Test (Experiment Doc) 4. Implement 5. Analyze (Experiment Doc) REPEAT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  49. 49. WHAT A TYPICAL WEEK LOOKS LIKE Monday Tuesday Wednesday Thursday Friday Growth Meeting - Personal Learnings - Goal Review - Experiment Review - This Week’s Experiments Predicting, Prioritizing, Implementing, Analyzing, Systemizing Brian Balfour :: @bbalfour :: http://www.coelevate.com
  50. 50. ZOOM OUT (set OKR’s) ZOOM IN (4 - 12 weeks) ZOOM OUT ZOOM IN ZOOM OUT…. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  51. 51. MACRO OPTIMIZATION QUARTERLY REVIEW 1 2 ACCURACY BATTING AVG 3 THROUGHPUT How many successes to failures? Is it improving over time? Are your hypotheses getting more accurate? How many experiments are you running in a given time period? How do you do more? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  52. 52. THANKS! MORE ON MY SITE: HTTP://WWW.COELEVATE.COM Brian Balfour :: @bbalfour :: http://www.coelevate.com BRIAN BALFOUR VP Growth @ HubSpot Previously EIR @ Trinity Ventures, Co-Founder @ Boundless, Co-Founder @ Viximo (acq by Tapjoy)

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