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Growth Hacking Workshop
Marketing, Experimentation, Growth @
Jared Waxman
jared@benchmark-
analytics.com
Neil Patel
CrazyEgg, KissMetrics,
Hello Bar
Andrew Chen
Uber, Mohr Davidow
Brian Balfour
HubSpot
Sean Ellis
Qualaroo, Xobn...
? ?
Discussion: Growth Hacking
1. Why is this topic in such high demand?
2. Do we all have the same definition?
3. What do you...
WIIFM? Want you to leave this with…
UNDERSTAND (1 hour)
• Understanding of macro trends
leading to it
• Understanding of t...
In the beginning…
There was brand marketing.
• Broadcast out
• Expensive
• Untrackable
Next comes Performance
Marketing:
• Scalability
• Trackable
• Precise
And there was still “Other”:
• Referrals
• Unknown origin
• Word of mouth
• Organic
?
Growth Harnesses The “Other”
Brand & Performance Marketing Growth Marketing
• Requires large budgets
• Costs are linear to...
Analog Media
Digital Media
Digital Conversations
Brand Marketing
Performance Marketing
Growth Marketing
1976 1996 2016
Growth Hacking is a Blend of Disciplines
• Experimentation
• Analytics
• Agility
• Coding
• API hacks
• Grey Hat
• Product...
Is there a platform hijack?Is there a loop?
Identifying a Growth Hack: The Test
If you answer yes to either question, it’s...
New user signs up
What’s a (Viral) Loop?
Some users
import address
book
Some users
send invites
Some friends
click through...
Viral Funnel
Viral Loops
3 Types of Viral Loops
• Natural, Delight-Driven
– Uber, Zume, X.ai
• By-Product of Offering Functionality
– F...
Hotmail
X.AI
PayPal
PayPal -> Get $10
Airbnb Referral
HotJar-> cut in line
24
Share Square -> get free processing
Candy Crush -> Unlocks
LinkedIn with Contacts Uploader
LinkedIn (Few users in early days) Your Contacts List
Referral Loop
Invite new users
Conne...
New user signs up
What’s a (Content) Loop?
Some create
new content
Some of the content gets
indexed by Search Engines
Some...
New user signs up
for LinkedIn
Content Loop for LinkedIn on Google
Creates Profile,
Indexed by
Google
Someone searches for...
Content Loops
Examples:
• Social Profiles & Directories
– LinkedIn, Facebook, FindLaw
• Reviews, Curation
– Amazon Review
...
Channels vs Platform Hijacks
“Traditional” Channels
• TV
• Radio
• Print
• Direct Mail
• Email
• Outbound sales
• Paid sea...
Channels vs Platform Hijacks
Traditional Channels
• Linear
• Obvious to marketer
• Stable
• No special tools
required
• Se...
A user of a different platform can
interact with something you’ve put
on there.
What’s a Platform Hijack?
To take full
adv...
Birth & Death of a Growth Channel
Chat bots?
Direct Mail
Overcrowded,
Noisy, Spammy,
Expensive
Email / Newsletters
Faceboo...
AirBNB Posting to Craigslist
Fill out
listing
Cross-
listed on
Craigslist
AirBNB (Fewer eyeballs) Craigslist (Lots of eyeb...
AirBNB on Craigslist
S: https://growthhackers.com/growth-studies/airbnb
AirBNB Poaching off Craigslist
Fill out
listing
Filled out
listing on
Craigslist
AirBNB (Fewer listings) Craigslist (Lots ...
AirBNB on Craigslist
S: https://growthhackers.com/growth-studies/airbnb
Beepi on Craigslist
Pinterest on Facebook
Starbucks on Office365
Dropbox on Office365
Growth Loops
Initial Acquisition
Growth Loops
New users
Conversion
process
Visits
Impressions
Linear + Loops
Cycle Time
In...
K-Factor
S: https://bothgunsblazingblog.wordpress.com/2013/10/22/the-k-factor-growth-and-going-viral/
Conv rate (c)
Avg in...
K-Factor
Initial Acquisition
New users
Conversion
process
Visits
Impressions
When k > 1
When k < 1
Growth Multiplier
When k > 1When k < 1 When k = 1
• Each loop produces
fewer users than the
one before.
• Declining system...
K-Factor
0
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
TotalUsers
Loops
k = 1 k < 1 ...
Growth Multiplier
If k < 1, Growth Multiplier = 1/(1-k)
Tells you how many users you will get from your initial set of use...
Growth Multiplier
Gives you leverage on conversion improvements
It’s just a 10% increase in conv rate but a 67% increase i...
More complete example
You will likely have more detailed steps and need to track and optimize they all.
But they easily ma...
Example – LZ FB shout-out
This loop has a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.
Cycle Time
Cycle Time is the 3rd variable to optimize in growth loops. This one is key to managing cash flows.
WIIFM? Want you to leave this with…
UNDERSTAND (1 hour)
• Understanding of macro trends
leading to it
• Understanding of t...
Growth
Fit Score
Product-
Market Fit
Talent &
Tools
Roadmap
Criteria
Core Loops &
Model
1. Product-Market Fit
Product Market-Fit Assessment
How would you feel if you could no longer
use [product]?
o Very disappointed
o Somewhat disa...
Product Market-Fit Assessment
S: Sean Ellis http://www.startup-marketing.com/using-survey-io/
40%
Where are you?
Proceed t...
Plan for Measuring Market-Fit - LZ
1. What defines the “core” of your offering?
2. How can you identify people who have us...
Setup Market-Fit Survey Now
Activity: Go here now and setup your survey: http://www.survey.io/
How will you automate and m...
“Retention is the single most
important thing for growth.”
- Alex Schultz
Alex Schultz
Facebook
Quantitative Check on Product-Fit Viability
There is a segment of the population
that finds this offering compelling to
us...
Quantitative Check on Product-Fit Viability
Adding an increasing number of
users at the top of the funnel
doesn’t help if ...
“We spent a bajillion bucks on the Tables ad. And
now we have ½ Million installs. But…installs isn’t
really the metric tha...
2. Growth Fit Score
Personal or embarrassing topic Natural topic of conversation
Long Lead Time Rapid Iteration
In person ...
Personal or embarrassing topic Natural topic of conversation
Long Lead Time Rapid Iteration
In person interaction Collects...
3. Brainstorm Your Core Loops
Sharing
Q A Applications for Growth
What about your app
would make it a topic
of conversation?
What moment in the
experien...
Interactions
Q A Growth Implications
What person-to-person
interactions does your
app already facilitate?
What interaction...
Content
Q A Applications for Growth
What kind of content
does your app create?
What kind of content
could it create?
What ...
Platform Hijacks
Q A Growth Implications
What desktop apps do your
prospects use often?
What website do your
prospects use...
Platform Hijacks
Q A Growth Implications
Which platforms that you
identified provide some
level of programmatic
access?
Wh...
Your Plan
Core Loop Secondary Loop Platform Hijack
4. Model Out Your Loops
Example – FB shout-out
This loop as a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.
Model Growth loop
Your turn.
Go here to download template:
http://bit.ly/growthmodel_tvlp
5. Draft Your Growth Roadmap
AARRR for Pirates
Dave Macclure
S: Dave Macclure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version/3-
Customer_Lifecycle_Conve...
S: http://mattyford.com/blog/2014/10/9/the-aarrr-framework-metrics-for-pirates
Growth Roadmap
0. Market-Fit
1. Acquisition
2. Activation
• Paid vs Trial vs Freemium etc.
• Tripwire sale vs Core sale
3....
Growth Roadmap
Experiments to: Potential Value
from k-factor model
Likelihood to
Succeed
Time & Money to
test it
Score
Inc...
Growth Hacking Workshop
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Growth Hacking Workshop

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Growth Hacking explained, with examples and exercises. Describes k-factor (virality score), growth multiplier leverage, market fit assessments, and growth product roadmap critieria.

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Growth Hacking Workshop

  1. 1. Growth Hacking Workshop
  2. 2. Marketing, Experimentation, Growth @ Jared Waxman jared@benchmark- analytics.com
  3. 3. Neil Patel CrazyEgg, KissMetrics, Hello Bar Andrew Chen Uber, Mohr Davidow Brian Balfour HubSpot Sean Ellis Qualaroo, Xobni, Dropbox Dave Macclure 500 Startups Alex Schultz Facebook Thanks Guys!
  4. 4. ? ?
  5. 5. Discussion: Growth Hacking 1. Why is this topic in such high demand? 2. Do we all have the same definition? 3. What do you want to learn?
  6. 6. WIIFM? Want you to leave this with… UNDERSTAND (1 hour) • Understanding of macro trends leading to it • Understanding of the disciplines involved • Clear litmus test for what a Growth Hack is • Understand two main growth loops, subtypes • Understand channel vs platform hijacks • Have examples of loops and hijacks • Understand k-factor, growth multipliers, cycle time DO (1 hour) 1. Market Fit • Qualitative measurement • Quantitative measurement 2. Growth Fit • Compute Growth Fit Score 3. Find Core Loops • Complete brainstorming exercises towards discovering your main loops 4. Model Loops • Model out your top loop 5. Growth Roadmap • Start to fill out a growth roadmap
  7. 7. In the beginning… There was brand marketing. • Broadcast out • Expensive • Untrackable
  8. 8. Next comes Performance Marketing: • Scalability • Trackable • Precise
  9. 9. And there was still “Other”: • Referrals • Unknown origin • Word of mouth • Organic ?
  10. 10. Growth Harnesses The “Other” Brand & Performance Marketing Growth Marketing • Requires large budgets • Costs are linear to sales • Must “breakthrough” noise Consumers share message with other consumers Company shouts message to consumer • Smaller, one-time investments • Potentially exponential returns • Referrals & content more persuasive
  11. 11. Analog Media Digital Media Digital Conversations Brand Marketing Performance Marketing Growth Marketing 1976 1996 2016
  12. 12. Growth Hacking is a Blend of Disciplines • Experimentation • Analytics • Agility • Coding • API hacks • Grey Hat • Product Management • Feature development • Roadmap prioritization • Gamification • Social Media • Performance Marketing • Mobile app chops
  13. 13. Is there a platform hijack?Is there a loop? Identifying a Growth Hack: The Test If you answer yes to either question, it’s a growth hack. or
  14. 14. New user signs up What’s a (Viral) Loop? Some users import address book Some users send invites Some friends click through S: Chen & Balfour, SVBR
  15. 15. Viral Funnel
  16. 16. Viral Loops 3 Types of Viral Loops • Natural, Delight-Driven – Uber, Zume, X.ai • By-Product of Offering Functionality – Facebook, Hotmail, PayPal, LinkedIn, X.ai • Incentivized – CandyCrush, PayPal, Square, HotJar
  17. 17. Hotmail
  18. 18. X.AI
  19. 19. PayPal
  20. 20. PayPal -> Get $10
  21. 21. Airbnb Referral
  22. 22. HotJar-> cut in line
  23. 23. 24 Share Square -> get free processing
  24. 24. Candy Crush -> Unlocks
  25. 25. LinkedIn with Contacts Uploader LinkedIn (Few users in early days) Your Contacts List Referral Loop Invite new users Connection request existing users Re-engagement Loop Find Connections Upload contacts (Gmail, Outlook, etc.) Accept connection Suggest more friends Create account
  26. 26. New user signs up What’s a (Content) Loop? Some create new content Some of the content gets indexed by Search Engines Some searchers see content and click through
  27. 27. New user signs up for LinkedIn Content Loop for LinkedIn on Google Creates Profile, Indexed by Google Someone searches for “John P. Appleseed” Visit to John’s profile
  28. 28. Content Loops Examples: • Social Profiles & Directories – LinkedIn, Facebook, FindLaw • Reviews, Curation – Amazon Review • Marketplaces – Craigslist, Ebay, AirBNB – CafePress, Thingaverse – SoundCloud • Information – Slideshare, YouTube – Quora, JustAnswers, Wikis – Medium, Udemy • Ad Sponsored Products – Yahoo Websites, Wix, VistaPrint Do your users generate content? Is that content indexed and public? and If both of these are true, then you have a content loop.
  29. 29. Channels vs Platform Hijacks “Traditional” Channels • TV • Radio • Print • Direct Mail • Email • Outbound sales • Paid search • Display “Growth” Platform Hijacks • Craigslist • Alignable, NextDoor • Facebook, Twitter • Pintererst, Instagram, Tumblr • Reddit, YikYak, SnapChat • WeChat, WhatsApp, Line • iMessage, Facebook Messenger, Slack • Youtube, Periscope • Bloggers & Blog comments • Contacts Uploader • Office365 • Keyboard • Browser • MooCs • Add-ins, Plug-ins, Modules • Marketplaces & App Stores • Quora, StackExchange Other People’s Audience (OPA)!
  30. 30. Channels vs Platform Hijacks Traditional Channels • Linear • Obvious to marketer • Stable • No special tools required • Sets off prospect’s skepticism radar “Growth” Platform Hijacks • Exploding in size (hopefully) • Non-obvious at first • Small window of exploitation (grey hat) • May require engineering toolset • Flies under the ”I’m being sold to” radar
  31. 31. A user of a different platform can interact with something you’ve put on there. What’s a Platform Hijack? To take full advantage they sign up for your offering. They take actions within your offering Those actions lead to more chances for others to interact on the other platform S: Chen & Balfour, SVBR
  32. 32. Birth & Death of a Growth Channel Chat bots? Direct Mail Overcrowded, Noisy, Spammy, Expensive Email / Newsletters Facebook Post App Store Vchat? Early, Clever, Has Breakout, Inexpensive
  33. 33. AirBNB Posting to Craigslist Fill out listing Cross- listed on Craigslist AirBNB (Fewer eyeballs) Craigslist (Lots of eyeballs) Posted on AirBNB Visit listing Rent space Content LoopA small subset will decide to post their own listing on AirBNB, continuing the loop Links back to AirBNB
  34. 34. AirBNB on Craigslist S: https://growthhackers.com/growth-studies/airbnb
  35. 35. AirBNB Poaching off Craigslist Fill out listing Filled out listing on Craigslist AirBNB (Fewer listings) Craigslist (Lots of listing) Posted on AirBNB Emailed CL user to suggest posting on AirBNB too
  36. 36. AirBNB on Craigslist S: https://growthhackers.com/growth-studies/airbnb
  37. 37. Beepi on Craigslist
  38. 38. Pinterest on Facebook
  39. 39. Starbucks on Office365
  40. 40. Dropbox on Office365
  41. 41. Growth Loops Initial Acquisition Growth Loops New users Conversion process Visits Impressions Linear + Loops Cycle Time Invites Optimize… 1. Conversion Rate 2. # of Invites 3. Cycle Time
  42. 42. K-Factor S: https://bothgunsblazingblog.wordpress.com/2013/10/22/the-k-factor-growth-and-going-viral/ Conv rate (c) Avg invites per user (i) c x i = k Note: “i” can be invites per users for referral loops, or can be content created & published for content loops.
  43. 43. K-Factor Initial Acquisition New users Conversion process Visits Impressions When k > 1 When k < 1
  44. 44. Growth Multiplier When k > 1When k < 1 When k = 1 • Each loop produces fewer users than the one before. • Declining system. • Still very good to have a loop at all! • To figure out the total # of users or $s from one round of (linear) inputs, use the Growth Multiplier formula • Each loop produces more users than the one before. • Would go to infinity, except you eventually saturate the market and run out of potential new users. Or competition creeks in. Or the platforms shut you off. • Each loop produces the same number as the one before. • Linear growth of users with each loop • Goes on forever (in theory)
  45. 45. K-Factor 0 100 200 300 400 500 600 700 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 TotalUsers Loops k = 1 k < 1 k > 1 k = 1.1 k = 1.0 k = 0.8
  46. 46. Growth Multiplier If k < 1, Growth Multiplier = 1/(1-k) Tells you how many users you will get from your initial set of users. Sometimes it only takes 4 loops to cap out… Sometimes it takes 20 loops to cap out…
  47. 47. Growth Multiplier Gives you leverage on conversion improvements It’s just a 10% increase in conv rate but a 67% increase in users! Initially your conversion rate is 20% But then you optimize it through testing and get 22% conversion rate. 8.3 / 5 = 1.67
  48. 48. More complete example You will likely have more detailed steps and need to track and optimize they all. But they easily map back the simplified model.
  49. 49. Example – LZ FB shout-out This loop has a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.
  50. 50. Cycle Time Cycle Time is the 3rd variable to optimize in growth loops. This one is key to managing cash flows.
  51. 51. WIIFM? Want you to leave this with… UNDERSTAND (1 hour) • Understanding of macro trends leading to it • Understanding of the disciplines involved • Clear litmus test for what a Growth Hack is • Understand two main growth loops, subtypes • Understand channel vs platform hijacks • Have examples of loops and hijacks • Understand k-factor, growth multipliers, cycle time DO (1 hour) 1. Market Fit • Qualitative measurement • Quantitative measurement 2. Growth Fit • Compute Growth Fit Score 3. Find Core Loops • Complete brainstorming exercises towards discovering your main loops 4. Model Loops • Model out your top loop 5. Growth Roadmap • Start to fill out a growth roadmap
  52. 52. Growth Fit Score Product- Market Fit Talent & Tools Roadmap Criteria Core Loops & Model
  53. 53. 1. Product-Market Fit
  54. 54. Product Market-Fit Assessment How would you feel if you could no longer use [product]? o Very disappointed o Somewhat disappointed o Not disappointed (it isn’t really that useful) o N/A – I no longer use [product] S: Sean Ellis http://www.startup-marketing.com/using-survey-io/ At least 40% need to answer in the green. 40% Sean Ellis
  55. 55. Product Market-Fit Assessment S: Sean Ellis http://www.startup-marketing.com/using-survey-io/ 40% Where are you? Proceed to Growth Fit Score  Yes, it’s over 40% Check engine. Narrow in on any users who answered in the green. Find point of delight and build off it. Or fix blockers to delight. If still under 40%, pivot.  No, it’s under 40%  We haven’t collected this yet. Stop. Plan out how you will measure this.
  56. 56. Plan for Measuring Market-Fit - LZ 1. What defines the “core” of your offering? 2. How can you identify people who have used the core of your offering at least twice? 3. And within in the last 2 weeks?
  57. 57. Setup Market-Fit Survey Now Activity: Go here now and setup your survey: http://www.survey.io/ How will you automate and motivate the survey invites?
  58. 58. “Retention is the single most important thing for growth.” - Alex Schultz Alex Schultz Facebook
  59. 59. Quantitative Check on Product-Fit Viability There is a segment of the population that finds this offering compelling to use regularly. There is no segment of users that finds it compelling for ongoing use. Hypothetical Scenario where new user growth is in steady state S: Alex Schultz https://www.youtube.com/watch?v=n_yHZ_vKjno
  60. 60. Quantitative Check on Product-Fit Viability Adding an increasing number of users at the top of the funnel doesn’t help if the product doesn’t have fit. Hypothetical Scenario where new user growth increases 2% per day
  61. 61. “We spent a bajillion bucks on the Tables ad. And now we have ½ Million installs. But…installs isn’t really the metric that matters. We need Daily Active Users – people who come back to the platform.”
  62. 62. 2. Growth Fit Score Personal or embarrassing topic Natural topic of conversation Long Lead Time Rapid Iteration In person interaction Collects lots of data Incremental features Game changer Consumption only Outputs user generated content Hard to locate prospects Unwalled garden of prospects exists Vitamin Painkiller Solo usage Facilitates interaction FasterSlower
  63. 63. Personal or embarrassing topic Natural topic of conversation Long Lead Time Rapid Iteration In person interaction Collects lots of data Incremental features Game changer Consumption only Outputs user generated content Hard to locate prospects Unwalled garden of prospects exists Vitamin Painkiller Solo usage Facilitates interaction
  64. 64. 3. Brainstorm Your Core Loops
  65. 65. Sharing Q A Applications for Growth What about your app would make it a topic of conversation? What moment in the experience can you nudge user to share? What human emotion can you tap to motivate sharing? What added non- monetary incentives can you offer to propel more sharing? What sort of monetary incentives could you offer? How would you model out the ROI?
  66. 66. Interactions Q A Growth Implications What person-to-person interactions does your app already facilitate? What interactions could your app facilitate? What sort of value can you create for those persons on the non-user side of the interaction? How much activation energy would that require from the non- user and how can you leverage that?
  67. 67. Content Q A Applications for Growth What kind of content does your app create? What kind of content could it create? What kind of user generated content may be related to this same problem?
  68. 68. Platform Hijacks Q A Growth Implications What desktop apps do your prospects use often? What website do your prospects use often? What mobile apps do your prospects use often? Where do your prospects live & work? Where do they play? Who are the biggest influencers for your prospects? Who are the biggest intermediaries for your prospects? From where do your prospects draw inspiration?
  69. 69. Platform Hijacks Q A Growth Implications Which platforms that you identified provide some level of programmatic access? Which platforms that you identified can you build your own programmatic access into? How can you flow your content into their platform? How can you flow their users into your platform?
  70. 70. Your Plan Core Loop Secondary Loop Platform Hijack
  71. 71. 4. Model Out Your Loops
  72. 72. Example – FB shout-out This loop as a low k-factor, but the growth hack is cheap to implement and raises revenue 6%.
  73. 73. Model Growth loop Your turn. Go here to download template: http://bit.ly/growthmodel_tvlp
  74. 74. 5. Draft Your Growth Roadmap
  75. 75. AARRR for Pirates Dave Macclure
  76. 76. S: Dave Macclure http://www.slideshare.net/dmc500hats/startup-metrics-for-pirates-long-version/3- Customer_Lifecycle_Conversion_Behavior_Websitecom
  77. 77. S: http://mattyford.com/blog/2014/10/9/the-aarrr-framework-metrics-for-pirates
  78. 78. Growth Roadmap 0. Market-Fit 1. Acquisition 2. Activation • Paid vs Trial vs Freemium etc. • Tripwire sale vs Core sale 3. Referrals & Hijacks • Find main loops and hijacks • Raise k-factor – Tests to increase i – Tests to increase c – Tests to shorten cycle time 4. Revenue • Pricing, packaging • X-sells, upsells 5. Retention • Hooked framework • Octalysis framework Potential impact from growth model Evaluate ideas based on: Change of it succeeding Time & Effort to test it x x Perhaps most important. Go big or go home. Hard to predict Important, but don’t only test the easy things or you could miss out on biggest opportunities Tips on Weighting
  79. 79. Growth Roadmap Experiments to: Potential Value from k-factor model Likelihood to Succeed Time & Money to test it Score Increase # of invites Increase conversion Decrease cycle time

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