Hila Qu discusses how to build a growth model, which is an equation that maps the key variables and user journey in a business to understand how they translate to growth. She outlines the following steps: 1. Identify a "North Star" metric that indicates the core value delivered to users. 2. Map the user journey from a new user to achieving the North Star. 3. Assemble the growth model by translating steps into variables and mapping how they relate in an equation. The growth model provides a framework to systematically grow a business by identifying leverage points and focusing efforts.

1. Hila Qu
VP Growth, Acorns
2019-02-07
AppGrowthSummit, LA

5. BoughtIPO
Closed
Still alive

6. THERE ARE ALWAYS 100 THINGS YOU CAN DO
Press
Paid Marketing
Push notifications
Resurrection offers
Content
New Features
New Product Lines?
International
Partnership

8. “Any business can be summarized into a simple
math equation”
- Anonymous

9. Tomasz Tunguz
Venture Capitalist at
Redpoint

11. Inputs OutputEquation
A growth model is an equation that tells you what are the
different variables in your business and how they work
together and translate into growth.It comes with:

13. §Step 1: Identify A North Star Metric
§Step 2: MapYour User Journey
§Step 3: AssembleYour Growth Model

14. Single metric to guide the direction of the company
like a north star
• Indicates that your user experienced the core value of
the product
• This is the output of your growth model

15. Total Listen
Time
# of nights
booked
# of File
Operated
# of Questions
Answered
Total
Sales
Time Productivity Transaction
# of
Messages

16. North Star Step 1 Step 2 Step 3 Step 4 Step 5 Step 6
Music App Listen Time Download Browse
Songs
Register Listen to 1st
song
Listen to
more songs
Longer
session
SaaS Paid Subscriber Landing
Page
Trial
registered
Trial Usage Upgrade to
paid
Continued
usage
Continued
payment
Ecommerce Sales Visit site Browse
products
Register 1st purchase Repeat
purchase
Higher
Order value
● From Brand New User to Ideal State (North Star)

17. ● Translate steps into variables
Total Listen
Time
X X
Total Listeners #
New Listeners # Existing Listeners #
Browse %App install First Song % Existing User Listen %X
+
Install %
Average session timeX
Appstore visit X

19. Total Daily Listen Time
300,000 minutes
X X
Total daily listeners #
30,000 users
New daily listeners #
(5,000 users
Existing daily listeners #
(25,000 users
Browse %
(50%
App install
(30,000 install
First Listen %
(33%
Existing User
(500,000 users
Listen %
(5%
X
+
Install %
(10%
Average daily session time
30 minutes
X
Appstore visit
(300,000 visit
X

20. Total nights
booked
Nights booked
by New Users
Nights booked
by existing users
Average nights
per user
New Traffic New User
Booking %
Team 1:Traffic Team Team 2: Activation Team

23. ● 1.What is a growth model?
● 2. How to build one?
● 3. So what do you use it for?
New Active
User
Existing
Active User
Total Active
User
+
XTraffic
Activation
%
XExisting
User
Retention
%
=

24. ● Growth is hard, use a growth model to:
○ Have a big picture
○ Grow more systematically
○ Identify leverage and focus
○ Find a little bit of Zen
@HilaQu https://medium.com/@HilaQu
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