Global markets it_strategy & growth hacking 2014.6

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IT Strategy & Growth Hacking

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Global markets it_strategy & growth hacking 2014.6

  1. 1. KYODO Consulting Group Young KwonKYODO Consulting Group Young Kwon Global Capital Markets Strategy and Roadmap Study
  2. 2. June 2, 2014 2 Global Capital Markets Strategy & Roadmap Challenge: This top 10 Bank was facing large inefficiencies in its systems that supported foreign exchange, treasury and derivatives trading activities. The current system infrastructure included costly and inefficient manual processing, ineffective risk management capabilities and impeded the ability to grow the business. Specific issues included: • Current trading and operations processes feature manual steps that lead to STP rates that are lower than desired, increasing operational risk and impacting BASEL 2 compliance • There is insufficient and inconsistent functionality for REPORTING of critical corporate information such as P&L, pipeline, and risk in an easily accessible and timely manner to senior and executive management • Systems and processes are not optimized for managing and reducing CREDIT RISK; consolidated customer CREDIT limits are not available in real-time across channels • There is significant difficulty providing effective access to all products and services as a single point of entry from the customer’s chosen CHANNEL • Current PIPELINE management systems are ineffective across lines of business and inter-office groups • PRICING is inhibited by lack of effective modeling tools, timely and complete market data and efficient delivery to customers • Traders and Sales staff face a variety of trade capture, customer information, risk management, pricing and information SCREENS from a variety of products with little consolidation of information and frequent duplication of functions
  3. 3. June 2, 2014 3 AnalysisResearch Synthesis (Aligning the strategies) Roadmap (Timeline with current & planned initiatives) • Phased implementation approach • Change impact analysis • System architecture, data architecture and data ownership for shared services • Architecture to focus technology on business and user needs Business themes Systems themes User themes Logical Timeline Project 1 Project 2 Project 3 Execution Surveyor Process Business needs Systems needs User needs Surveyor is a process to develop technology strategy and roadmap that is aligned to business goals, user needs and system capabilities: Definition
  4. 4. June 2, 2014 4 Research Mapping Approach and Objectives to Strategy Strategy Focus resources on competitive advantages, “the core relationship franchise”:  Relationship and solutions focused (“Expert Ally”)  Restructure portfolio to reduce risk, volatility  Maximize fee product growth  Execute through the right people, process, technology Mission To be the primary bank for our customers, in our core footprint, driving revenue and earnings growth for our shareholders through superior attention to customer, employee, and asset quality.  Predictability in earnings  Noiseless quarters  Focus on core competency Objectives Align technology investments with Commercial Financial Services’ business strategy in order to position its portfolio of systems as competitive levers over the next three years:  Improve accuracy and operational efficiency through automation  Ensure business continuance  Streamline information delivery  Thin Branch Approach  Focus on target clients; cross-sales, product penetration strategies  Build upon core competencies  Enhance distribution and risk management  Support strategic relationships with integrated client solutions
  5. 5. June 2, 2014 5 Strategic Context Treasury Strategy  Support the Bank by:  Ensuring funding / liquidity for Bank assets  Optimizing capital management by ensuring adequate capital position  Managing structural market risk embedded in balance sheet  Providing supplemental earnings income  Provide investment opportunities to middle market and corporate customers  Provide earnings income  Focus on customer relationship to improve opportunities for organic growth and improve overall customer service experience  Reduce costs, optimize processes and improve automation Mission To be the primary bank for our customers, in our core footprint, driving revenue and earnings growth for our shareholders through superior attention to customer, employee, and asset quality.  Predictability in earnings  Data Measurement  Focus on core competency Objectives Align technology investments with the Bank’s Treasury mission and objectives in order to position its portfolio of systems as levers over the next three years:  Continuous service level improvement using efficient, cost effective, and controlled processes  Automation of processes to achieve STP  “The right service at the right price”  Improve risk measurement and modeling capabilities  Enhance data quality and timeliness of information delivery Credit Bureau (Customer Data) Money Center Bank
  6. 6. June 2, 2014 6 Observations Patterns Capabilities needed to facilitate activities within the transaction flow are met with challenges that can be categorized on the basis of the users who perform these functions Customers Sales & Traders Operations Treasury Pipeline Pricing Credit Management Trade Capture Customer Setup Trade Fulfillment Investigation Channels Relationship Management Balance Sheet Management System Functionality Straight Through Processing Processing Reporting Credit Risk Management Information Supply Chain Capabilities needed to facilitate activities across the transaction flow are met with challenges that can be categorized as Processing and Information Supply Chain issues
  7. 7. June 2, 2014 7 Capabilities & Issues: Management Reporting There is insufficient and inconsistent functionality for REPORTING of critical corporate information such as P&L, pipeline, and risk in an easily accessible and timely manner to senior and executive management –Reporting functions within many Treasury and Capital Markets areas are limited to manually maintained spreadsheets and databases limiting ability of senior Global Markets management to make effective intra day decisions –Inordinate time and effort spent extracting, massaging and deriving data values from core trading systems (OPICS, Summit, TradingDesk) to overcome inability to effectively access data –Corporate credit risk and profitability information systems such as Limits Management and Business Intelligence do not receive Capital Markets data in a timely or complete fashion –Assembling data for budget and forecast reporting is difficult due to multiplicity of platforms, formats and accounting cycles –Investment Portfolio reporting requires greater system sophistication than the current spreadsheet-based system provides –No current capability to produce a consolidated customer statement or view across products Customers Sales & Traders Operations Treasury Pipeline Pricing Credit Mgmt Trade Capture Customer Setup Trade Fulfillment Investigation Channels Relationship Mgmt Balance Sheet Mgmt System Functionality Straight Through Processing Processing Credit Risk Mgmt Information Supply Chain Reporting
  8. 8. June 2, 2014 8 Business Value Chain Systems’ Ability to Meet Needs Risk Management Algorithmics BANK Portfolio Execution TradingDesk (IP) Phoenix (IP) Research / Marketing CRM / Pipeline Business Flow High System Satisfaction Improvements Needed Enhancements in Progress Replacement Pending This diagram depicts where systems are used along the business process lifecycle. The business group using the system is identified in parenthesis: (GRM) – Global Rate Markets (FX) – Foreign Exchange (RFX) – Retail FX (DR) – Derivatives (IRD) – Interest Rate Derivatives (CR) – Credit Derivatives (FI) – Fixed Income (IFI) – International Fixed Income (MF) – Mutual Fund (PI) – Principle Investing (IP) – Investment Portfolio (GS) – Global Services (ALM) – Asset Liability Mgmt (SEC) - Securitization Derivatech/ Risk (FX) External FX Systems**: FXAll, FXConnect, Reuters Dealing, EBS, UBS, Volbroker BANK Portfolio Analysis Pathmaster (ALM) Historical DB Servicing & Operations FITRAC DIBS Accounting CLO (SEC) Private I (PI) YieldBook (IP) PEPM (PI) Processing Bankmaster (ALM) PEPM (PI) RM Advisor External Market Data*: Reuters, Marketsheet, Bloomberg, MCM, Telerate RM Advisor Historical DB Market Data / Pricing AnalysisExecution bankGCM.com corporate.bank.com RM Advisor CTS (FX) CRM (GRM) MBAI (RFX) SPOT (RFX) Intranet(Funds Transfer) OPICS (FX) SwisKey (IRD) Summit (DR) Sentry (DR) RTS (FI) CLO Phoenix (FI / MF) Private – I (PI) External FX Systems** External Market Data* Summit (DR) Derivatech - OTC (FX) Derivatives Partner (CR) Cognotec (FX) OPICS (FX) RM Advisor Private I (PI) RM Advisor Business Intelligence Historical DB InvestmentLink (FI) PEP Web (PE) Derivatives Partner (CR) FX Options Partner WebWire (FX/GS) SPOT (RFX) OPICS (FX) Derivatech (FX) TradingDesk (FI) External FX Systems** Treasury Express (FX) eSpeed (IRD) Summit (DR) InvestmentLink (FI) Helen (FX) Cognotec (FX) IMAGINE (IFI) MBAIT (RFX) Flexitran (RFX) LoanTrak TradeTrak ADP Bloomberg Bloomberg Bankmaster
  9. 9. June 2, 2014 9 Consolidated Requirements Model • Real-time, consolidated credit information across all products • Usable interface • Ability to integrate with channels, real- time services, and trade fulfillment Trade Capture • Robust ability to execute trades • Ability to access every product from every channel • STP to Trade Capture Channels • Maximum STP of applicable product types • Operational efficiency where manual intervention is needed • Robust reporting Trade Fulfillment • Audit trail and reporting functionality • Basic case management Investigation • Cross-product view of risk Risk Reporting • Cross-product view of customer relationship Relationship Management • Timely, competitive, consistent pricing Pricing Trading Limits Management • Real-time market rates • High-quality pricing data Pricing Data • Common tools and methods Balance Sheet Management Booking LayerReal-Time Service Layer Access Points • Transaction data enriched with corporate context • Management reporting Information Supply Chain Information Supply Chain Analytic Applications • Single-point setup across product tools • Official customer attributes available at time of setup Customer Setup • Centralized customer data across all product areas • Access to customer data at the time it is needed • Data quality controls Customer Information • Capability to manage product- specific opportunities Pipeline • Other Product Systems • Third Party Confirm Systems • Payment Processing Systems • Custodial Systems • General Ledger • Market Data Sources
  10. 10. June 2, 2014 10 • Single-point setup across product tools • Official customer attributes available at time of setup Customer Setup • Usable interface • Ability to integrate with channels, real- time services, and trade fulfillment Trade Capture • Robust ability to execute trades • Ability to access every product from every channel • STP to Trade Capture Channels • Maximum STP of applicable product types • Operational efficiency where manual intervention is needed • Robust reporting Trade Fulfillment • Audit trail and reporting functionality • Basic case management Investigation • Cross-product view of risk Risk Reporting • Cross-product view of customer relationship Relationship Management • Timely, competitive, consistent pricing Pricing • Real-time, consolidated credit information across all products • Real-time market risk of deals across all products Trading Limits Management • Real-time market rates • High-quality pricing data Pricing Data • Common tools and methods Balance Sheet Management Booking LayerReal-Time Service Layer Access Points • Transaction data enriched with corporate context • Management reporting Information Supply Chain Information Supply Chain Analytic Applications • Centralized customer data across all product areas • Access to customer data at the time it is needed • Data quality controls Customer Information • Capability to manage product- specific opportunities Pipeline Key: Requirements cannot be fulfilled without significant manual intervention Requirements may be partially fulfilled by existing systems Requirements can be fulfilled by existing systems; not leveraged currently • Other Product Systems • Third Party Confirm Systems • Payment Processing Systems • Custodial Systems • General Ledger • Market Data Sources Requirements Gap
  11. 11. June 2, 2014 11 Proposed Hi Level Analysis Options Pros and Cons • Leverages existing investments in core systems • Does not require significant additional investment in a new systems infrastructure • Meeting minimum business requirements will likely incur significant customization cost • Some business goals requiring close integration between systems (such as cross-system P&L reporting) will be difficult to achieve CON PRO • Leverages existing investments in core systems • Overall STP levels can be significantly increased in the short-term with centralized services such as common customer setup, limit management, etc. • Requires significant infrastructure to centralize services • Bank will continue to be bound by the challenges and constraints of the current booking systems CON PRO • Minimizes need to rely on customization to overcome booking system limitations • Overall STP levels can be significantly increased in the short-term with centralized services such as common customer setup, limit management, etc. • Requires significant initial investment to identify and select the optimal vendor product • Requires significant infrastructure to centralize services CON PRO • Provides maximum flexibility in satisfying business requirements • Bank will not be bound to external booking system vendor timelines and product support • Requires extensive investment in formulating detailed requirements for and developing a custom booking layer • Time-to-market of the solution is the longest of any option CON Rationalize current architecture direction with minimal new product investment Replace core booking systems with a vendor solution that meets a majority of Bank requirements Overcome core booking system limitations though targeted enhancements and customization Total custom build of core booking systems PRO A B C D
  12. 12. June 2, 2014 12 Analysis Phase: Option AAnalysis Phase: Option B Relationship Reporting Information Supply Chain Risk Reporting Balance Sheet Management Customer Information Pricing Product 1 Pricing Product 2 Pricing Product 3 Trading Limit Management Product Group 1 Product Group 2 Product Group 3 Wrapper Trade Capture Product 1 Trade Fulfillment Product 1 Wrapper Trade Capture Product 2 Trade Fulfillment Product 2 Wrapper Trade Capture Product 3 Trade Fulfillment Product 3 Pipeline Customer Setup Channels Investigation Booking Layer Real-Time Service Layer Analytic Applications Access Points Information Supply Chain Four Options in Total
  13. 13. June 2, 2014 13 Synthesis: Logical Architecture Proposed Future State FX Pricing Service FXConnect Intraday Limit Server ALGO Business Intelligence ASCL DDA Biz Advisor Corporate Portal ERS Customer Setup Service Exotics Pricing Cognotec BANKWEB Pricing Derivatives Pricing Service Corp Wire Transfer TIB Bloomberg UBS LPC Pricing Data Service Blotter/ Position Management CRM Sales Dashboard Investment Web FXAll Message Bus ERS Maintenance Interface Derivatives Pricing Formulas Intranet Custodial Systems Transaction Entry Interface Limit Management Connector Pricing Connector Confirmation Systems Matching Systems Connectors to other systems GL Interface GL Audit Trail Trade Workflow Documentation Workflow Investigations and Exception Processing Confirm Generator Settlement Engine Transaction Capture Interface Management Reporting Transaction Data Trade Fulfillment Messaging Trading Limits Mgt. Information Supply Chain Trade Capture Pipeline Mgt. Customer Info. Pricing Capital Markets ODS Capital Markets Dashboards Balance Sheet Mgt. MRQ Commercial Loan Sys Yields ERS Lookup Service
  14. 14. June 2, 2014 14 Trade Capture / Fulfillment Key Features Trade Capture / Trade Fulfillment Loan System Derivatives Pricing Service Blotter/ Position Management Message Bus Derivatives Pricing Formulas Intranet Custodial Systems Transaction Entry Interface Limit Management Connector Pricing Connector Confirmation Systems Matching Systems Connectors to other systems GL Interface GL Audit Trail Trade Workflow Documentation Workflow Investigations and Exception Processing Confirm Generator Settlement Engine Transaction Capture Interface Transaction Data Trade FulfillmentTrade Capture • Product Support Support for a full range of interest rate products, fixed income, foreign exchange and money markets, equity and credit derivatives • Deal Entry Data entry and display fields for dates, tenors, currencies, notionals, and other items required for deal entry and viewing • Position Management A high performance real-time position keeping server • P & L Reporting Real-time Profit and Loss reporting and calculations based on current trades, including support for complex, structured trades • Compliance and Regulatory Reporting Robust reporting for compliance and regulatory purposes. • Standards Support The booking layer provides support for FPML (Financial Products Markup Language) which is the industry standard for e-Commerce, Risk and Processing of structured products
  15. 15. June 2, 2014 15 Complete the X/Y Interface Value: Reduces risk and eliminates manual processing of rejects for participations and syndications 1 Improve the accuracy and timeliness of feeds into ABC System Value: Improves risk exposure analysis and reporting Partially Funded (Evaluate) 2 Address issues with the UVW organizational and product hierarchies Value: Improves accuracy and consistency of reporting across lines of business Partially Funded (Evaluate) 3 Improve tools and streamline processes for data reconciliation Value: Provides more timely reconciliation and data availability Not Funded (Long-Term) 5 Automate and standardize manual data acquisition methods Value: Improves efficiency, stability and reliability of manually entered data Not Funded (Prioritize) 4 Current Interim Future Partially Complete Partially Complete Partially Complete Complete Complete Complete Improve ease and consistency of reporting across lines of business Increase confidence in data accuracy and reporting Reduce time and effort required for data reconciliation Program Objectives Roadmap High level timeline for program: Customer Relationship
  16. 16. KYODO Consulting Group Young KwonKYODO Consulting Group Young Kwon A Short Course in Growth Hacking By Young Kwon January 2014
  17. 17. June 2, 2014 17 Disclaimer I am a relatively novice growth hacker. Who is learning from titans. Therefore I did not create almost any of this content myself. Most of it was made by established growth hackers like Sean Ellis and Andrew Chen. I have tried to label the sources as accurately as possible (apologies in advance if there are mistakes). So again, I did not create this stuff but rather gathered various great stuff I found on the web and organized it. So I don’t take credit for any of the great ideas in this deck.
  18. 18. June 2, 2014 18 The growth hacker is the warrior that guides his troops to avoid this tragic end.
  19. 19. June 2, 2014 19 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  20. 20. June 2, 2014 20 Is growth hacking just like traditional marketing? “A growth hacker is a person whose true north is growth.” – Sean Ellis NO!! Traditional marketing has a very narrow focus and was built around traditional products (eg. shampoo, cars, etc.) In first phase of a startup you don’t need a marketing plan and team. You need growth!
  21. 21. June 2, 2014 21 What is the role of a growth hacker? In the digital world products are defined differently than in the physical one (eg. Twitter is a product) Due to this a product can play a role in its own adoption (eg. Facebook sharing, Dropbox) Growth hackers understand the potential of software products to spread themselves and their job is to make this happen!
  22. 22. June 2, 2014 22 So who is Growth Hacker? Typically it is an analytical person who knows a bit of everything and believes in testing and measuring everything. He is excited about learning and tries to learn every day. At a small startup a growth hacker typically has a front-end and back-end developer in his team.
  23. 23. June 2, 2014 23 A Growth Hacker is T-Shaped The flat horizontal part represents all the skills a growth hacker needs to be familiar with: psychology, viral loops, email campaigns, SEO, PPC, product design, etc. Source: Quicksprout.com The vertical line represents the skills you dominate in. You’re an expert in these skills and this is what gives your product a chance at scaling.
  24. 24. June 2, 2014 24 Growth hacking is not mysterious… “Growth hacking is less like an illusionist and more like a marathoner” – Sean Ellis Takes a lot of work to master the skills that pertain to growth. You need to train for months. More importantly you need to train in the right way. Source: Quicksprout.com …Growth hacking is a lot of hard work!
  25. 25. June 2, 2014 25 Growth hackers are curious What would happen if we made our entire product invite-only? What would happen if we made our users do something every week to keep their account from being de-activated? What if we let customers pick their own price? What if we gave away a free upgrade for our product to everyone that pays to have Chinese food delivered to our office? Source: Quicksprout.com Constantly think and try new things… some of them may even be stupid.
  26. 26. June 2, 2014 26 Growth hackers are obsessive Are you ready to think about growth all of the time? Even in 6 months? Do you have the capability to focus on a narrow goal for the foreseeable future? Its important because often you need to try a hundred things to find a few that work. Source: Quicksprout.com
  27. 27. June 2, 2014 27 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  28. 28. June 2, 2014 28 Step 1: Define actionable goals Example: Too broad = Increasing your DAU (daily active users) Just right = Educate members about content creation through email. How to think about it? Keep going a level deeper until the goal is an actual task that can be completed once and for all. Source: Quicksprout.com
  29. 29. June 2, 2014 29 Step 2: Track your goals with analytics Without analytics you have no way of knowing if you’ve achieved your goal Decide what you’re going to measure Find the best tool to measure it (eg. Google Analytics, Kissmetrics, Mixpanel, etc) Source: Quicksprout.com
  30. 30. June 2, 2014 30 Step 3: Leverage existing strengths first Every startup has inherent strengths or assets Do the things that take the least effort and have most result first Source: Quicksprout.com Send email list Add “What’s New” category to product • Already have large mailing list • Have strong system of email distribution • Takes 1 day • Requires at least 2 weeks of planning, mockups, programming, etc. • Engineers very busy at the moment VS. Do this first!!!!!
  31. 31. June 2, 2014 31 Step 4: Execute experiment 1. Write down hypotheses before experiment Source: Quicksprout.com • This email will have higher click rate than previously because of xxx • Content creation will increase by x% because xxx 2. Don’t get discouraged by initial results 3. Learn from success and failure THERE IS NO SUCH THING AS BAD DATA!
  32. 32. June 2, 2014 32 Step 5: Optimize the experiment 1. Try to have a control group Source: Quicksprout.com 2. Utilize A/B Testing 3. Give up on experiment only if you don’t believe it can give better results or if it requires huge resources 4. Repeat
  33. 33. June 2, 2014 33 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  34. 34. June 2, 2014 34 Growth hacking is about eventually achieving Product – Market Fit
  35. 35. June 2, 2014 35 What does Product-Market Fit Look Like? Source: Andrewchen.co
  36. 36. June 2, 2014 36Source: Andrewchen.co
  37. 37. June 2, 2014 37 The Growth Hacker Funnel is how you achieved P-M Fit Source: Quicksprout.com • You can pull them in, push them in or use the product to get them in 3 Levels to the Funnel • This is when the user takes an action that creates a relationship with you (join email list, create account, etc) • Uses your product regularly. The Holy Grail! Ch. 4: Pull Tactics Ch. 5: Push Tactics Ch. 6: Product Tactics Ch. 7: How to activate Ch. 8: Retention Ch. 9: Funnel optimization The rest of this presentation is organized according to the funnel!
  38. 38. June 2, 2014 38 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  39. 39. June 2, 2014 39 Pull Source: quicksprout.com Give visitors a reason to come to you (incentivize them, entice them, etc.). They key is that you are providing something of value. Example: You find a great Slideshare presentation when Googling for a topic Cost of these tactics are typically measured in time or personnel, but you don’t directly pay for a visitor
  40. 40. June 2, 2014 40 Pull tactic #1: Blogging Key to SEO: Blog posts are keyword rich and easily indexed by Google Typically distributed through RSS, so there is an inbuilt mechanism to deliver to others Great at educating people and pushing them through your funnel Can position you as a thought leader Guest blogging is a great inbound linking strategy as blog owners are always looking for new guest posts Source: quicksprout.com
  41. 41. June 2, 2014 41 Pull tactic #2: eBooks, Slideshares & Whitepapers Hard to ignore a detailed document on a niche you care about Have high perceived value and can ask for email in exchange for downloading Can spread well through social media Source: quicksprout.com
  42. 42. June 2, 2014 42 Pull tactic #3: Infographics Display both expertise and nice design Spread very well through social media Guidelines: 1)Pick something that is clever or noteworthy 2)Find the right data 3)Analyze the data 4)Build the narrative 5)Put into nice design 6)Distribute via all channels Source: quicksprout.com
  43. 43. June 2, 2014 43 Pull tactic #4: SEO If you are creating a lot of content Google will recognize that you are an authority on the topic SEO is a very deep topic and will take time. But you should at least understand the basic high-level stuff. Two main areas of SEO: Code & Content. Many resources available to do technical audit of your site (eg. Moz) and tell you which coding elements to change. Need to decide which keywords you are targeting. This will depend on 3 factors: Traffic, Conversion, and Competition Source: quicksprout.com High Level
  44. 44. June 2, 2014 44 Pull tactic #4: SEO Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/ The strategy in 90 seconds
  45. 45. June 2, 2014 45 Pull tactic #5: Social Media Engage with people who might be using your product. Provide value at any chance. Answer questions, etc. Don’t just take… but give. Become a hub of interesting content. Social media takes time. Tweets have a half-life of 1 hour, Facebook 1 day. Create a schedule accordingly. Don’ buy followers of any kind. Source: quicksprout.com The general playbook A Facebook post from my startup, uGift
  46. 46. June 2, 2014 46 Pull tactic #5: Social Media Answer questions on Quora. Create new questions around the topic of your product. Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/ Niche platforms Post relevant posts to Reddit, Hacker News, etc. Find potential users on Followerwonk.
  47. 47. June 2, 2014 47 Pull tactic #5: Social Media One of Ankur Nagpal’s biggest viral successes on the app store was an app that asked people to rate which of their friend’s profile picture was the best After a pic was chosen this sent a message to that friend Of course the friend opened it. Because we are all vain. It spread so viral Ankur had to slow it down Appeal to vanity
  48. 48. June 2, 2014 48 Pull tactic #6: Contests Source: quicksprout.com Give away prizes that are meaningful to your audience. Experiences make a great prize. Give them more entries to win the contest based on how much they give you in exchange. Make a big deal when you announce the winner Be careful not to use this too often. The people that respond to promotions tend to often not be the “right” user profile AppSumo built an email list of over 700k emails by running contests. Traditional contests
  49. 49. June 2, 2014 49 Pull tactic #6: Contests Source: http://www.kenontek.com/2014/01/27/growth-hacker-ankur-nagpal-shares-secrets/ Try some crazy ideas Ankur Nagpal ran a promotion that gave away a Pacman arcade game to the winner It created tons of buzz and free PR People were actually buying ads to try and win Non-Traditional contests
  50. 50. June 2, 2014 50 Pull tactic #7: App Marketplaces Source: quicksprout.com Reviews matter a lot so make sure you have good ones. Use tricks to ensure this (eg. on app ask “Do you like my app?” If they answer yes, then ask them for a review. Screen shots are very important. Make sure yours are great. Put a lot of thought into the name. It should be easy to find. Use other tactics besides just people finding you on the marketplace as it is too competitive these days. Use Multiple Points of Entry: Udemy creates lots of apps on the various topics that their classes cover so that they can be found across a wide range of topics on the appstore B2C (iTunes, Google Play, etc.)
  51. 51. June 2, 2014 51 Pull tactic #7: App Marketplaces Source: quicksprout.com Account for the differences between the major appstores Apple determines ranking mainly by velocity of downloads (and little else) Google Play more sophisticated. They use reviews, quality of downloads (ie. low uninstalls) and numerous other factors like keyword density, which are common to SEO. You can growthhack your reviews (and therefore your ranking) by first asking “Love my app?” and then only asking the user to review it. B2C (iTunes, Google Play, etc.)
  52. 52. June 2, 2014 52 Pull tactic #7: App Marketplaces Source: quicksprout.com Less crowded = easier to stand out Ask the marketplace to promote you on their blog or email Reviews and screenshots also matter B2B (Salesforce, Mailchimp, etc.)
  53. 53. June 2, 2014 53 Pull tactic #8: LOPA (Leverage Other People’s Audience) Source: quicksprout.com Guest blogging is one example Tweet a review or complement about a site or blogger with an audience. Try to get them to retweet you. GrowthHacker.tv asks the people they interview to promote the interview on their own social channels. Reach out to group leaders on Meetup.com and ask them to write about you Offer free accounts to leaders in your industry Create a YouTube video targeted to a specific writer and wait for them to Google themselves
  54. 54. June 2, 2014 54 Pull tactic #9: PR Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/
  55. 55. June 2, 2014 55 Pull tactic #10: Scraping Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/ Without knowing much coding you can scrape valuable user data from popular community sites and create great email lists from it.
  56. 56. June 2, 2014 56 Pull tactic #11: Use others’ great content to get signups to your product Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/ Check out this blog post if you want to know more about how this one works: http://www.kenontek.com/2014/01/14/the-brilliance-of-tweetganic/
  57. 57. June 2, 2014 57 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  58. 58. June 2, 2014 58 Push Source: Andrewchen.co Instead of enticing, you push people to your site, often interrupting whatever they were doing. Example: Someone is waiting to watch a Youtube video but not until they see your ad To understand whether ‘Push’ works for you, you typically need to understand ‘LTV’ (Lifetime Value of a Customer). If LTV is higher than your CAC (Customer Acquisition Costs) you can scale extremely quickly.
  59. 59. June 2, 2014 59 Push tactic #1: Ad Platforms Source: quicksprout.comcc The standard ones: Google, Yandex, Facebook, Twitter More niche ones: Linkedin, Carbonads.net, Decknetwork.net. Consider the persona of your customer. Retargeting: Available via Google Adwords or thru specialized networks such as AdRoll Understand the different ad platforms
  60. 60. June 2, 2014 60Source: quicksprout.comcc How much you can pay? Is a function of your business model. If you earn more than your competitor, you can outbid them. Groupon grew almost entirely due to paid advertising. Funded by an extremely lucrative business model. Try to deal directly with content owners if you will spend a lot on a single platform Push tactic #1: Ad Platforms Everything is a function of your business model
  61. 61. June 2, 2014 61 Get good at Google Adwords. Understand how to change copy, photo, keywords, etc. Facebook’s ad platform allows to test and optimize different photos Push tactic #1: Ad Platforms Test variations of your ads
  62. 62. June 2, 2014 62 Target “Exact Match” long tail keywords on Google Adwords as it tends to be much cheaper click rates Tactic: If you advertise blog posts on Facebook and rotate them every few days the per click costs likely to be much lower than advertising a static landing page for an extended period of time. Push tactic #1: Ad Platforms Understand what impacts the cost of ads Example of ads from my startup, uGift
  63. 63. June 2, 2014 63Source: quicksprout.comcc Push tactic #1: Ad Platforms Improve the targeting of your ads
  64. 64. June 2, 2014 64 Push tactic #2: Promo swap Source: quicksprout.comcc
  65. 65. June 2, 2014 65 Push tactic #3 Affiliates Source: quicksprout.comcc This is when you pay someone (ie. a different site) for achieving a goal (eg. sending you a visitor) Essentially the affiliate does the hard work of thinking how to achieve the goal and allows you to focus on the product. Affiliate sites will work best if they target a niche that is relevant to your product. Best to use an established affiliate solution like Commission Junction or DirectTrack rather than trying to create your own. One type of affiliate are those that that charge “Cost Per Action”, which typically means a sale or filling out a form. Its typically quite expensive and therefore works best when you have a relatively high gross profit.
  66. 66. June 2, 2014 66 Push tactic #4 Reach out offline Source: quicksprout.comcc
  67. 67. June 2, 2014 67 Push tactic #5: Target specific audiences and write them direct Source: growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization
  68. 68. June 2, 2014 68 Push tactic #6: Purchase email lists A common practice here in Ukraine is purchasing of email lists. You can often get 500,000+ emails for peanuts. The trick of course is then adding them to a high-quality email platform like Mailchimp without raising red flags This takes a bit of art and a bit of algorithm But I know of a startup that was getting 7,000 unique visits per day after just a few months of operations as a result of this approach.
  69. 69. June 2, 2014 69 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  70. 70. June 2, 2014 70 Product Source: Andrewchen.co People wind up on your site because of the product itself. Example: A social network gets everyone that uses existing users to get more users. If you can use a product tactic in which each visitor brings along more than one person, than you have a K factor of 1. You’ve created a viral loop! But, most products DO NOT go viral. Especially B2B.
  71. 71. June 2, 2014 71 Product tactic#1: Network invitations Source: quicksprout.comcc Email Contacts Allow for importing of your address book. Social Contacts Allow for easily sharing your social contacts. Make it the default option.
  72. 72. June 2, 2014 72 Product tactic#2: Social sharing Source: quicksprout.comcc Make sharing your product (and important updates) extremely simple and available (ie. everywhere!) Be smart about how you get people to invite their friends. Use Facebook’s social graph to ask them to invite those people who are most likely to join! It is much easier to increase invite acceptance rates than it is to increase the # of invites!
  73. 73. June 2, 2014 73 Product tactic#3: API Integrations Source: quicksprout.comcc Imbed sharing into the product experience (ie. it happens in the background without having to ask the user permission all of the time) Spotify leveraged Facebook’s API. After you “Facebook Connected” your activity on Spotify was automatically published to your FB feed and inside the app to anyone you are connected to. Just be careful about depending on this too much because if Facebook changes its API it may cease to work Imbed sharing into the product experience
  74. 74. June 2, 2014 74 Product tactic#3: API Integrations Source: quicksprout.comcc Another great example is Nike+’s integration with Path and Facebook, so that friends can see your activity. Friends can even cheer you on from Facebook or Path which will sound an applause while you run. The Results on Path! Asks to share your results on Path Trigger actions by users in other products
  75. 75. June 2, 2014 75 Product tactic#4: Backlinks Source: quicksprout.comcc Widgets of any kind are a great way to get backlinks, which result in clicks to your site as well as improved SEO. Widgets can serve many different purposes. Think of what you can offer which relates to your product.
  76. 76. June 2, 2014 76 Product Tactic#5: Incentives Source: Quicksprout.com Dropbox uses storage like a currency. It is relatively cheap to them but valuable to new users. So they trade it for getting new users.
  77. 77. June 2, 2014 77 Product Tactic#6: Organic Source: Quicksprout.com Some products spread organically via organic word of mouth.
  78. 78. June 2, 2014 78 Product Tactic#7: User becomes content creator Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/ Always great when you can get your user to generate the content that will attract new users to your site (ie. via long tail SEO) Quora = answering questions Linkedin = creating profiles Craigslist = listings Slideshare = presentations
  79. 79. June 2, 2014 79 Product Tactic#7: Generate scarcity Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/ If there isn’t yet huge demand for your product than artificially create scarcity When Gmail launched it was invite-only and they limited the number of invites people could send out Some SAAS products launched and only allowed 3 customers to sign up per day Limit the # of promo codes you give out to your app
  80. 80. June 2, 2014 80 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  81. 81. June 2, 2014 81 First define what it means to “activate” a customer Source: Andrewchen.co Get their email address Get them to create an account Get them to read or comment on something Get them to share something Get them to buy something Get them to fill out oa form Get them to interact with someone Get them to send a friend request
  82. 82. June 2, 2014 82 Activation Tactic #1) Make Strong Landing Pages Source: Quicksprout.com Headlines critical Call to Action that captures emails A big image or video Social Proof A few benefit statements Your unique value proposition Link to other popular pages on your site
  83. 83. June 2, 2014 83 Activation Tactic #2) Copywriting Source: quicksprout.com Headline explains your value proposition Subhead explains unique value propositions Different audiences respond to different kinds of writing Social proof is important (eg. testimonials) A great place to find good examples of headlining and copywriting is offline publications
  84. 84. June 2, 2014 84 Activation Tactic #3) Calls to Action (CTA) Source: quicksprout.com Needs to be one clear CTA Keep things simple
  85. 85. June 2, 2014 85 Activation Tactic #4) Onboarding Source: quicksprout.com Onboarding is the process of leading users to where you want them to go on your site You may want o use a video as part of your strategy People are impatient and will forget about you quickly unless you push them through the onboarding process. Twitter does this great. Clearly guiding people from creating to using an account
  86. 86. June 2, 2014 86 Activation Tactic #5) Gamification Source: quicksprout.com People love progressing, getting awards, finishing tasks, etc. It is hardwired into our brains. Use this fact. Awards LeaderboardsProgress
  87. 87. June 2, 2014 87 Activation Tactic #6) Pricing Strategies Source: quicksprout.com Offer different pricing options with various functionalities Free Trials & Money Back Guarantees Discount Codes – Udemy sends out emails on a regular basis with discount codes that are only valid for a limited time. They drive huge sales. Pricing options, Free Trials and Discount Codes
  88. 88. June 2, 2014 88 Activation Tactic #6) Pricing Strategies Source: quicksprout.com Opportunity bundle your product with other non-competitive, complementary products? If so, try services like Hacker Bundle Bundling
  89. 89. June 2, 2014 89 A common piece of advice the Founder of WP Engine, Jason Cohen, gives to entrepreneurs starting out is “Raise your prices!” Why? When it is difficult to discern the value of your product people will often attribute pricing to value Cialdini’s book, “Influence” has a great example of earrings that were not selling at all suddenly selling out because the store manager accidentally doubled their prices when she intended to halve it. When in doubt, increase prices Activation Tactic #6) Pricing Strategies
  90. 90. June 2, 2014 90 Services like Exit Monitor can detect when a visitor is about to bounce from your website They do this by tracking the mouse movements You have an opportunity to make them a special offer right before they bounce Activation Tactic #7: Try exit services
  91. 91. June 2, 2014 91 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  92. 92. June 2, 2014 92 Retention #1) Test & Measure Source: quicksprout.com Wrong = Focus on getting a lot of traffic before product-market fit. Right = Put effort into getting enough traffic to test your hypothesis. Do not exhaust your supply of beta users! Use staged traffic
  93. 93. June 2, 2014 93 Retention #1) Test & Measure Source: quicksprout.com Use cohort analysis MixPanel
  94. 94. June 2, 2014 94 Retention #2) Your “Aha” Moment Source: quicksprout.com Do you know what your “Aha” Moment is? If it takes 2 days currently, can you make it 2 hours? If its necessary to create an account to see your product in action is it possible to show them a sandboxed version of your product that will give them an “Aha” before they sign up? Don’t promote features which do not lead to the “Aha”. It is just clutter. Twitter’s “Aha” occurs after you have followed a certain number of people. So they lead people thru the process to make sure that it happens. Identifying your “Aha” Moment
  95. 95. June 2, 2014 95 Retention #2) Your “Aha” Moment It’s important to note that what you think may be your “Aha” moment may be a false alarm. Use analytics to decide. Everyone thought Infinite Scroll would be great for Etsy… But it turned out people were buying less… Validate it with analytics
  96. 96. June 2, 2014 96 Retention #3) Use email a lot Source: quicksprout.com Drip campaign = when you send pre-written emails at preselected intervals (eg. day 1, 3, 7, 14, ..) Use this to introduce people to your product, share testimonials, inspirational reasons to use your product, etc. Event-based notifications = someone retweeted your post. A new friend request on Facebook. A new response to your blog post on Disqus. “You’ve been outbid” on eBay. General Updates = new features, behind the scenes look of your company, etc. Force people to click by not giving them all of the info in the email Ex. Facebook sends an email that tells you that someone liked a photo was in, but I need to click in order to see the photo. Kinds of emails
  97. 97. June 2, 2014 97 Retention #3) Use email a lot Source: quicksprout.com A/B test every email – focus on subject lines Segment your audience and see if they perform differently Use Customer.io to follow up with people that bail out of the sign-up process Focus your energy on the time period when they are most likely to convert Optimizing emails
  98. 98. June 2, 2014 98 Retention #4) Alerts and notifications Source: quicksprout.com Especially relevant to mobile apps People can turn them off so you need to be careful not to abuse Very effective to send notifications from friends that try to get user active again Also very effective to send special offers Alerts that you send
  99. 99. June 2, 2014 99 Retention #4) Alerts and notifications Source: quicksprout.com Alerts that you encourage your users to send
  100. 100. June 2, 2014 100 Retention #5: Use surveys Source: http://growthhackers.com/slides/slides-the-ultimate-guide-to-funnel-optimization/
  101. 101. June 2, 2014 101 Retention #6) Exit Interviews Source: quicksprout.com Learn from customers that leave you Ask them the what made them cancel. Be funny about it. Offer them a discount to come back… oftentimes they cancelled not because they don’t like your product but because they didn’t see that they were getting enough value to justify paying the full price
  102. 102. June 2, 2014 102 Retention #7) Roll out the red carpet Source: quicksprout.com Send 100 free gifts to the first 100 customers Provide backlinks to your best customers or mention them in your email Keep a list of your best users and retweet them often VIP access to exclusive content I’m a paid monthly subscriber of GrowthHacker.tv and like the fact that they often retweet my Tweets
  103. 103. June 2, 2014 103 Retention #8) Continue to add value Source: quicksprout.com Ensure your product continues to add value. Some products have a network effect and do this naturally. In cases like this you can increase price to reflect the increased value. If value is decreasing then look to add important features. But beware of “feature creep” Subtract features. Sometimes the best way to increase value is to get rid of distracting features and focus on the things customers care most about.
  104. 104. June 2, 2014 104 Retention #9) Community Building Source: quicksprout.com People who feel they are part of a community stay longer. So work on building a community. Customer support – provide great customer support. Eg. Zappos empowers their support to make sure customers are delighted. Customer support as a tool
  105. 105. June 2, 2014 105 Retention #9) Community Building Source: quicksprout.com Documentation / FAQ – make sure support topics are easy to find and understand. Social features – how can you let your users to interact with each other. Eg. One of the most valuable features of Growthhacker.tv is the ability to interact with the community. Documentation & Social Features as tools
  106. 106. June 2, 2014 106Source: Ken Leaver’s email Retention #10: Follow up with a personal touch
  107. 107. June 2, 2014 107 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  108. 108. June 2, 2014 108 Funnel optimization = improving each step of the conversion funnel Source: Andrewchen.co
  109. 109. June 2, 2014 109 Let’s try a real example of optimizing conversion A Blogging Product (version 1) Source: Andrewchen.co Optimizing Conversion Example
  110. 110. June 2, 2014 110Source: Andrewchen.co Optimizing Conversion Example
  111. 111. June 2, 2014 111Source: Andrewchen.co Optimizing Conversion Example
  112. 112. June 2, 2014 112 Next, measure… Measure conversion between steps using Google Analytics or KissMetrics Your baseline conversion is 5.6%. This is your starting point. Examining the above chart, you can see exactly where people drop off! Source: Andrewchen.co Optimizing Conversion Example
  113. 113. June 2, 2014 113 Now its time to optimize Think about what you can do to improve on the 5.6% How you can shorten the funnel? Try to rearrange the flow so the receiver receives a lot of value upfront. (nobody likes to start by giving their email address) Think about how to improve conversion on each step of the funnel Try different types of landing pages (A/B testing using Unbounce and Optimizely) Try different types of logins (eg. Facebook, Twitter, email, etc) Remember… no matter what, get users to sign up so you can target them later. Source: Andrewchen.co Optimizing Conversion Example
  114. 114. June 2, 2014 114 Let’s see what this looks like in an example A Blogging Product (version 2) Source: Andrewchen.co Essentially you have: -combined the first 2 pages into one -removed the ‘Choose Template’ page Optimizing Conversion Example
  115. 115. June 2, 2014 115 Finally forecast and test Now forecast what the result might look like… Why bother forecasting? Because it helps you think systematically about your decisions! After forecasting, build it and see if your forecasts were correct If they were not, figure out why. Then optimize and repeat. Source: Andrewchen.co Optimizing Conversion Example
  116. 116. June 2, 2014 116 Now let’s try using the funnel approach to decide how to monetize our product Let’s imagine we have a SAAS startup (like KissMetrics or Mailchimp) that is determining how to price our product. You are not sure whether you will make more money by charging right from the beginning or whether it is better to offer a free trial Optimal Monetization Example
  117. 117. June 2, 2014 117 Convert Now Source: Andrewchen.co Optimal Monetization Example
  118. 118. June 2, 2014 118 Convert Now Assuming CPC of $0.60 the cost of a customer (CAC) would be $200 Source: Andrewchen.co Optimal Monetization Example
  119. 119. June 2, 2014 119 Free Trial Now let’s see what it would could look like if they offered a free trial First hypothesize what the funnel will likely look like using a Free Trial conversion funnel Assuming CPC of $0.60 the cost of a customer (CAC) would be $44 (much less than $200) Now let’s test our hypothesis Source: Andrewchen.co Optimal Monetization Example
  120. 120. June 2, 2014 120 Free Trial Did you achieve the 1.35% conversion rate? If not, optimize and test until you do. Or until you figure its not possible. Decide… better to stay with Free Trial or return to “Convert Now”. Source: Andrewchen.co Optimal Monetization Example
  121. 121. June 2, 2014 121 Chapter 1: What is Growth Hacking Chapter 2: The Growth Hacking Process Chapter 3: The Growth Hacker Funnel Chapter 4: Pull Tactics for Getting Visitors Chapter 5: Push Tactics for Getting Visitors Chapter 6: Product Tactics for Getting Visitors Chapter 7: How to activate Chapter 8: Retention Chapter 9: Funnel Optimization Chapter 10: Summary
  122. 122. June 2, 2014 122 So to conclude, if you wanna be a growth hacker… Keep experimenting and learning. Every day. There are rarely huge breakthrough moments. Often you find lots of pockets of growth that eventually result in a big whole. Be obsessed about growth. Live it, breathe it, dream it. 1 2 3

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