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Adobe User Group Amsterdam - Correlation between Innovation & Growth Hacking

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My slides from my session at Adobe User Group Amsterdam 2015. Theme was "Hack your Growth" and a follow up of the Lean Analytics workshop from Alistair Croll at April 21st in Amsterdam. The talk is about why we need Growth Hacking to stimulate (corporate) innovation, from innovation dilemma, to lean analytics and various examples on growth hacking...

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Adobe User Group Amsterdam - Correlation between Innovation & Growth Hacking

  1. @jeroentjepkema Adobe User Group Ap(p)ril 2015 #GrowthHacking
  2. Part 1: The Innovation Dilemma
  3. (http://csinvesting.org/2012/01/06/fortune-500-extinction/) F500 Life Expectancy 75years 15years 1950 2010
  4. The slow death of corporates...
  5. “Let’s cut prices to accelerate our growth.” “Time to enter the mainstream. Cut prices.” “We may miss the quarter. Let’s do a price promotion.” “That wasn’t supposed to happen. We’ll have to lay some people off. Model 1: Revenue over time
  6. Model 2: The Adoption Curve Early adopters Late adopters
  7. Model 3: Gross Margin percent
  8. Most companies die because they fail to move to new business models...
  9. Often, this isn’t about lack of resources
  10. http://www.flickr.com/photos/maladjusted/5207565912
  11. Optimizing the probable means discounting the possible? The problem is framing.
  12. YOU ARE HERE
  13. LOCAL MAXIMUMOPTIMIZATION OF CURRENT METRICS YOU ARE HERE
  14. YOU ARE HERE GLOBAL MAXIMUM INNOVATION WITH NEW RULES
  15. YOU ARE HERE INVESTORS & MANAGERS HATE GOING DOWNHILL
  16. Three kinds of innovation
  17. Sustain (optimizing for more of the same) Improve along current metrics... ...or alter the rate of improvement
  18. Innovate (introduce nearby product, market, or method) Switch to a new value model Sustain (optimizing for more of the same) Improve along current metrics... ...or alter the rate of improvement
  19. Innovate (introduce nearby product, market, or method) Switch to a new value model Sustain (optimizing for more of the same) Improve along current metrics... ...or alter the rate of improvement Disrupt (Fundamentally changing the business model) Change the business model entirely
  20. Experiment with product, market, and method.
  21. Product (new “what”) Market (new “who”) Method (new “how”)
  22. A three-maxima model of (enterprise) innovation
  23. Current state Business optimization A three-maxima model of (enterprise) innovation
  24. Current state Business optimization Product, market innovation You can convince executives of this because some of it is familiar. A three-maxima model of (enterprise) innovation
  25. Current state Business optimization Product, market innovation Business model innovation You can convince executives of this because some of it is familiar. This is terrifying because it eats the current business. A three-maxima model of (enterprise) innovation
  26. Sustaining Next year’s car
  27. Sustaining Innovative Next year’s car Electric car, same dealer
  28. Sustaining Innovative Disruptive Next year’s car Electric car, same dealer On-demand, app-based car service
  29. ...then disruptive innovation produces exponential growth. If sustaining innovation produces linear growth...
  30. Part 2: Enter Growth Hacking
  31. An exploit (from the verb to exploit, in the meaning of using something to one’s own advantage) is a piece of software, a chunk of data, or sequence of commands that takes advantage of a bug, glitch or vulnerability in order to cause unintended or unanticipated behaviour to occur on computer software, hardware, or something electronic (usually computerised).
  32. Every successful startup has benefited from an exploit...
  33. AirBnB and Craigslist
  34. If an exploit is part of a system, then Growth Hacking is to get the system to do something it’s not designed to do. In other words, to hack an exploit.
  35. So,your growth problem is probably a marketing problem.
  36. Sergio Zyman’s 5 “mores” More things To more people For more money More often More efficiently ‣ Supply chain optimization ‣ Per-transaction cost reduction ‣ Loyal customer base that returns ‣ Demand prediction, notification ‣ Maximum shopping cart ‣ Price skimming/tiering ‣ Highly viral offering ‣ Low incremental order costs ‣ Inventory increase ‣ Gifting, wish lists
  37. What are you growing, anyway? What are we growing, anyway?
  38. $
  39. @
  40. !
  41. GROWTH HACKING $ Money ! Attention @ Reputation
  42. GROWTH HACKING $ Money ! Attention @ Reputation Sales/Conversion Advertising
  43. GROWTH HACKING $ Money ! Attention @ Reputation Sales/Conversion Advertising Perceived value Search, Virality
  44. GROWTH HACKING $ Money ! Attention @ Reputation Sales/Conversion Advertising Perceived value Search, Virality PREndorsement
  45. Growth Hacking is always an exchange between these 3 elements...
  46. If you have a ‘Growth’ problem...
  47. http://solveforinteresting.com/hacker-hustler-designer-analyst/ Hacker Makes it real, finds the exploit. Hustler Builds buzz, validates customers demand Designer Designs compelling customer experience Analyst Tracks growth, drives experiments and keeps you honest.
  48. Keyword: subversiveness Think subversively.
  49. http://www.nytimes.com/2012/08/19/opinion/sunday/why-waiting-in-line-is-torture.html?pagewanted=all&_r=0
  50. http://answers.yahoo.com/question/index?qid=1005081200005
  51. GROWTH HACKING Guerrilla marketing Data-driven learning Subversiveness
  52. Part 4: The Nigerian Scam
  53. Why is Nigerian spam so badly written?
  54. Aunshul Rege of Rutgers University, USA in 2009 1000 emails 1-2 responses 1 fool and their money, parted. Bad language (0.1% conversion) Gullible (70% conversion) 1000 emails 100 responses 1 fool and their money, parted. Good language (10% conversion) Not-gullible (.07% conversion)
  55. Nigerian spammers really understand their target market and ‘customers’
  56. One Metric That Matters
  57. Every website has goals
  58. Your Analytics measures the movement towards these goals
  59. Importance of correlation vs. causation
  60. 1 100 10000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Relation between Ice cream and drownings? Ice cream consumption Drownings
  61. http://www.flickr.com/photos/25159787@N07/3766111564
  62. http://www.flickr.com/photos/25159787@N07/3766111564 1 100 10000 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec True causality Ice cream consumption Drownings Temperature
  63. Holy causation, Batman...
  64. A leading, causal, connection is the analytics superpower...
  65. That’s why we pick one at at time...
  66. ‣ A Facebook user reaching 7 friends within 10 days of signing up (Chamath Palihapitiya) ‣ A Dropbox user who puts at least one file in one folder on one device (ChenLi Wang) ‣ Twitter user following a certain number of people, and a certain percentage of those people following the user back (Josh Elman) ‣ A LinkedIn user getting to X connections in Y days (Elliot Schmukler) Some examples (From the 2012 Growth Hacking conference. http://growthhackersconference.com/)
  67. Landing page design A/B testing Cohort analysis General analytics URL shortening Funnel analytics Influencer Marketing Publisher analytics SaaS analytics Gaming analytics User interaction Customer satisfaction KPI dashboardsUser segmentation User analytics Spying on users
  68. Part 4: Experimentation
  69. A wealth of information creates a poverty of attention... (Computers, Communications and the Public Interest, pages 40-41, Martin Greenberger, ed., The Johns Hopkins Press, 1971.)Herbert Simon
  70. Focus on the desired behavior, not just the information. http://www.psychologytoday.com/blog/yes/200808/changing-minds-and-changing-towels 26% increase in towel re-use with an appeal to social norms; 33% increase when tied to the specific room.
  71. Set your thresholds...
  72. ...find your stickiness
  73. Validating experiments: B.R.A.S.S. framework
  74. Blink Relevance Availability Scalability Sum
  75. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it
  76. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive?
  77. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Is this Channel relevant to your product/service? Does your audience hang out on this channel? Can you target them effectively? Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive?
  78. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Is this Channel relevant to your product/service? Does your audience hang out on this channel? Can you target them effectively? Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive? How scalable is this channel? Can we easily increase it? Law of diminishing returns
  79. Blink Relevance Availability Scalability Sum 5-second rule Gut feeling Instinct score Don’t overthink it Is this Channel relevant to your product/service? Does your audience hang out on this channel? Can you target them effectively? Do we have the available resources? Do we have the skills? Do we have the tools? Is it expensive? How scalable is this channel? Can we easily increase it? Law of diminishing returns 1-5 1-5 1-5 1-5 BRASS score
  80. bit.ly/brassframework
  81. Growth hacking, demystified. Find correlation Test causality Optimize the causal factor Pick a metric to change behavior
  82. Experiment: Do AirBnB hosts get more business if their property is professionally photographed?
  83. Gut instinct (hypothesis) Professional photography helps AirBnB’s business Candidate solution (MVP) 20 field photographers posing as employees Measure the results Compare photographed listings to a control group Make a decision Launch photography as a new feature for all hosts
  84. 5,000 shoots per month by February 2012
  85. Defining moment: Hockeystick growth
  86. Part 5: Some examples
  87. 1. User Acquisition
  88. Get to know your users.. ‣ Where do they hang out online? What websites? ‣ What apps and social networks does they use? ‣ What events do they attend? ‣ Which newspapers/magazines do they read? ‣ What communities online and offline are they part of?
  89. Watch the competition
  90. • http://www.similarweb.com/
  91. Watch my friends...
  92. • http://graph.facebook.com/nameofpage
  93. https://www.facebook.com/pages/?frompageid=ADD ID Here
  94. Branding & Messaging...
  95. Ask your top users: What value do we offer, that no-one else does?
  96. Emailing...
  97. Guess email addresses
  98. App store marketing...
  99. App Store Review Trick (Chinese Style)
  100. App store marketing...
  101. 1. Feature-based landing pages 2. Adapted onboarding
  102. • Search Engine Marketing (SEM) ex. Paid ads, Adwords, Linkedin ads… • Search Engine Optimization (SEO) ex. Google organic searches • Social Ads ex. Facebook sponsored posts • Affiliate Marketing ex. Placing ads on other websites • Retargeting ex. Display ads for people who have already visited your site • Offline Ads ex. Billboards, Bus ads, Taxi ads, TV, Radio • Organizing events ex. Meetups, Conferences, Workshops • Speaking engagements • BizDev ex. Partnerships, Joint Ventures • Email Marketing • Traditional PR ex. Getting featured, Press Releases • Unconventional PR ex. Stunts, Oprah’s free car give away • Existing Platforms ex. Google Play Store, Marketplace, App store • Content Marketing ex. Blogging, Infographics, Webinars, Twitter posts.. • Guest Content Marketing ex. Guest blogging = other people’s audience • Sales ex. Cold Calling 2.0 (Aaron Ross) • Taking part in events ex. Having a booth in a large conference • Community building ex. Yelp, Wikipedia, Quora • Inherent Virality ex. A project management tool requires invitations Artificial Virality ex. Dropbox’s 2-sided referral programme Customer Acquisition Channels
  103. 1. Double Down on what works
  104. 1. Double Down on what works 2. Diversify your portfolio
  105. 1. Double Down on what works 2. Diversify your portfolio 3. Find 2/3 channels that work for you
  106. 2. On Boarding
  107. “Show the Core Value in the first 5 seconds of a visit. There can be as much value in the blink of an eye as in months of rational analysis.”
  108. Core Value Proposition...
  109. Test that it works with a 5-second test: usabilityhub.com
  110. Competitive advantage...
  111. Mobile app? Check out uxarchive.com
  112. First user experience...
  113. http://www.fastcodesign.com/1669788/the-3-white-lies-behind-instagrams-lightning-speed
  114. The kayak effect: http://bit.ly/UgTneD People prefer to wait for up to a minute to get what they want from an app rather than get it instantly – if, and it’s an important if, they believe the app is working for them
  115. Iz overwhelmed?
  116. Recommended reading
  117. http://www.meetup.com/Growth-Hackers-Amsterdam Join the meetup!
  118. Thanks! More questions? M: jeroen@growthtribe.nl T: @jeroentjepkema W: www.growthtribe.nl View slides: bit.ly/MW-AUG15

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