How to Create Product Driven Growth - 3XE Digital

The Art & Science of Content
Promotion
Kieran Flanagan
Marketing Director (EMEA), HubSpot

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Download Slides
http://bit.ly/product-driven-growth
Follow @Searchbrat on Twitter

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Growth is …. hard

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You’re in a constant battle against
the challenges of scale.

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This is one of the first
online display ads, it's from
Hotwired's magazine in
1994.
This is one of the first
online display ads, it's from
Hotwired's magazine in
1994.

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It had a CTR of 44%

Consider that CTR versus the average of
a Facebook Ad
Hotwired ’94 Facebook ‘14

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Saturation of channels make
them less impactful and
more expensive for growth.

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The online habits of users are constantly changing

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The stagnation or decline of
certain channels impacts
your ability to extract value
from them.

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Channel Risk

There is an inherent risk in being dependent on a
3rd party platform

Channel Ceiling

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Understand how scalable
your ‘channels’ are before
committing to them.

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So Growth is hard!

But not impossible …

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There are a growing number
of SaaS businesses who’re
moving towards a product
driven growth model.

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At HubSpot, we
provide free products
for both marketers and
sales people.

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Over the past 12 months that
business has grown rapidly
achieving some major milestones.

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The following are 3 components I
feel are key to making a product
driven growth model work.

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How can my product leverage existing platforms
for growth?
How can I add virality to my product?
How can I quickly introduce the user to the value
of my product?
Product Driven Growth

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How can my product leverage
existing platforms for growth?
#1

A lot of Pinterest’s early growth came from their integration with
Facebook.

After Facebook updated their algorithm the Pinterest growth team
doubled down on Google as their growth platform.

Organizing boards around keywords that people were searching for.

Topic clustering is a really effective way to improve your
organic traffic.

RapGenius dominated SEO by providing unique features that made
their content 10X what competitors had.

AirBnB provided a plugin that allowed their listings to be
automatically posted on Craigslist.

We’ve recently built into Slacks platform with a GrowthBot to help
both marketers and sales grow their business.

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Figure out what channels
potential users of your product
spend their time on.
Use both quantitative and qualitative feedback.

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Channels Scale Predictability Ease
Google SEO Medium High Low
Google
Adwords
Medium High Medium
Facebook Ads High Medium Medium
Referral Medium Low Medium
Virality High Low Low
Stack rank them in order of scale, the
predictability of results and ease to implement.

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How can I add virality to my
product?
#2

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Viral loops are one of the best ways
to increase awareness of your
product and grow acquisition of new
users.
@Searchbrat

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Viral loops and product virality are not the same things.
Product Virality
Product spreads from one user to
another through customer to
customer contact.
Low CAC acquisition channel.
Does not include Word of Mouth,
PR or Incentivized referrals.
Viral Loops
Product spreads from one user to
another through a number of
different loops.
The objective is to find methods
of converting your existing user
base into promoters of your
product.
Does include WOM and
Incentivization.

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What kind of viral loops can I add to my product?
Word of Mouth Product Virality
(Distribution)
Product Virality
(Pull)
Incentivized
Referrals
Customers recommends
the product to other
customers or distribute
via communication
channels e.g. social
media
The product spreads
through customer to
customer contact. One
customer using the
product exposing it to
others.
The product spreads
through organic usage.
Customers require other
users in their network to
use the product.
The product spreads
through incentivized
referrals. Customers are
rewarded in some way
for referring others.
** Read: http://bit.ly/productvirality

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Word of mouth is typically measured by NPS.
[Add HubSpot Chart Here.]
Word of Mouth

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Loop of a 1 billion dollar SaaS business
User signs up to Zoom
and hosts a meeting
and hosts a meeting
Sends Zoom meeting
link to a number of
non Zoom users
Sends Zoom meeting
link to a number of
non Zoom users
% of users accept
Zoom meeting and
click on branded link
% of users accept
Zoom meeting and
% of those users sign
up for Zoom account
up for Zoom account
PV (Distribution)

and hosts a meeting
and hosts a meeting
Sends Zoom meeting
link to a number of
non Zoom users
Sends Zoom meeting
link to a number of
non Zoom users
% of users accept
Zoom meeting and
% of users accept
Zoom meeting and
up for Zoom account
up for Zoom account
PV (Distribution)
You need to know:
To track the performance of
this loop you need to know.
1. How many users will
host meetings?
2. Average number of
attendees?
3. What channel is invite
sent?
4. % of users who click on
invite
5. % of users who sign up
Loop of a 1 billion dollar SaaS business

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We’ve started to push on these loops in our own products.
PV (Distribution)

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We’ve started to push on these loops in our own products.
PV (Distribution)
You need to know:
To make this kind of loop
work, you need a lot of sign
ups and a great product
experience e.g. loop for
Zoom wouldn’t work if the
technology sucked.

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Users in Slack need to invite their network to make the
tool valuable.
PV (Pull)

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Users of our CRM also need to invite their team onto the
product to get value from it.
PV (Pull)
You need to know:
We need to measure
1. The user wants to invite
their team to start using
CRM.
2. User invites a bunch of
recipients to the CRM.
3. Email is used to send out
the invites
4. % of those users click on
the link in invite to signup.
5. % of them become new
users of the CRM.

Incentivized Referrals
Loom incentivize users to refer two friends in order to gain
access to limited features.
You need to know:
Incentivizing users with
access to limited features
works best if they’re paying
the bill.

PayPal spent up to $70 million on their incentivized referral
loop. It drove 5% to 7% of their daily growth.

You can also incentive people to refer your product before
it’s ever launched.
You need to know:
Why it works:
1. Exclusivity: Feeling part
of a group, being ‘in the
know’.
2. Anticipation: Provided
you with real time
update on position in
the list.
3. Referral: Provided you
with option to jump the
queue if you refer
others.

You can also incentive people to refer your product before
it’s ever launched.

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How can I quickly introduce the
user to the value of my product?
#3

Product onboarding should
introduce users to the value of
your product in the short
amount of time as possible.

User connects with 10 friends within 7 days
– Chamath Palihapitiya Former Growth Lead
One file in one Dropbox folder on one device
– ChenLi Wang Growth Team
2000 messages sent between a team
– Stewart Butterfield, Co-Founder
X users followed, Y% followed back
– Josh Elman, Former Growth Lead
It helps the user find your products AHA! moment

We use R analysis to find predicators of an active team
within our free CRM.
Read: http://tomtunguz.com/performance-marketing-for-startups/

We know weekly active teams
retain a lot better and
continue to use our product
for longer.

They’re upgrade rate is also 800% higher
than a non weekly active team!

Your product can do a better job of selling itself than a
typical sales person.

Getting the upgrade points right is critical

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It’s a lot easier to develop your
product with growth in mind rather
than it being an afterthought.
@Searchbrat

Join Growth TL’DR
>> KieranFlanagan.io <<

How to Create Product Driven Growth - 3XE Digital

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