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Unlocking the 4 Gateways of Growth

Every startup faces a few key roadblocks that prevent you from moving forward. Not only will you learn how to grow past each roadblock, you'll also see the same process that KISSmetrics uses to increase conversions, discover new channels of growth, and accelerate acquisition at every step. You don’t need any data or traffic either, you can do it as early as day 1.

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Unlocking the 4 Gateways of 
Growth 
Lars Lofgren
Hit me up 
@larslofgren
We’ll cover… 
1 4 gateways and the metrics for each 
2 How to go hunting for big wins 
3 Where to find ideas for testing 
#KISSwebinar
I’m not going to spend any 
time on Google Analytics.
How healthy is this business?
Gateway 
Metrics

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Unlocking the 4 Gateways of Growth

  • 1. Unlocking the 4 Gateways of Growth Lars Lofgren
  • 2. Hit me up @larslofgren
  • 3. We’ll cover… 1 4 gateways and the metrics for each 2 How to go hunting for big wins 3 Where to find ideas for testing #KISSwebinar
  • 4. I’m not going to spend any time on Google Analytics.
  • 5. How healthy is this business?
  • 7. Use metrics that measure your biggest problem. Ignore the rest.
  • 8. When picking metrics, always ask yourself: What’s my biggest constraint right now and which metric will tell me if I’m making progress?
  • 9. Gateway #1: Is your idea any good?
  • 10. Your main metric: Get someone to pay or use your product regularly.
  • 11. Bad metrics for this gateway: 1 Asking people if they’ll pay 2 AdWords clicks 3 Beta or waiting list signups 4 Traffic
  • 12. Gateway #2: Is your product good enough?
  • 13. Your main metric: Ask 500 users the Product/Market Fit Question
  • 14. What is the P/M Fit Question? How would you feel if you could no longer use [your product]? 1 Very disappointed 2 Somewhat disappointed 3 Not disappointed (it isn’t really that useful)
  • 15. Your goal for the P/M Fit Question: At least 40% of users should say “Very disappointed.” *Sean Ellis and Hiten Shah get credit for this one.
  • 16. How do you get to the first 500 users/customers? Hustle.
  • 17. The P/M Fit Question isn’t perfect, verify with a retention metric.
  • 18. Gateway #3: Can you grow?
  • 19. Pick just one channel to start Work on your channel for at least 3 months. Assume it’ll work and get the resources needed to execute.
  • 20. Your main metrics: Your main business metric and acquisition funnel.
  • 21. Main business metrics: 1 SaaS: Monthly Recurring Revenue 2 Ecommerce: Monthly Revenue 3 Consumer Tech: Monthly Active Users
  • 22. Start tracking your acquisition funnel here
  • 23. Gateway #4: Do you have a stable model?
  • 24. Your main metrics: Depends entirely on what business model you have.
  • 25. The SaaS Model 1 LTV is at least 3x acquisition cost 2 Recover acquisition cost within 12 months 3 Get monthly churn below 2%
  • 26. The Ecommerce Model 1 2 3 It’s all about profit margin.
  • 27. The Consumer Tech Model 1 Virality > 1 2 Usage 3 out of 7 days 3 30% of users active day a"er signup 4 Organic growth of 100s signups/day. 5 Clear path to 100,000+ users *Andrew Chen’s “Zero to Product/Market Fit”
  • 28. Find someone in your industry that knows the key benchmarks.
  • 29. Start with constraints, hack together what you need to measure them.
  • 31. A/B tests don’t ma#er, they come later
  • 32. Big Win Hunting 1 Get qualitative insights for hypothesis 2 Launch, do it LIVE 3 Use the eyeball test #KISSwebinar
  • 33. 1. Get qualitative insights So we’re on a KISSmetrics sales call…
  • 34. 2. Launch, do it LIVE 1. New email 2. New deck
  • 37. Whenever you’re not sure what to test, get qualitative data.
  • 38. 5 ways to get qualitative insights 1 Customer Development 2 Surveys 3 Feedback Forms 4 Customer Analytics 5 Usability Tests
  • 39. 1. Your customers want to help you, go talk to 20 of them
  • 40. How to structure your interviews: 1 Brief overview of who they are 2 Deep dive into their problems 3 Present solution for feedback #KISSwebinar
  • 41. 2. Start running surveys with these rules: 1 Expect a 10% response rate 2 Only ask questions that you need 3 Don’t exceed 10 questions #KISSwebinar 4 Start with open response 5 Categorize responses to see trends
  • 42. Use Qualaroo surveys to target steps in funnel #KISSwebinar
  • 43. 3. Our feedback form at KISSmetrics:
  • 44. 4. Pull user activity logs on two groups
  • 45. Find 20 of each: 1 Ideal customers 2 Customers that started but le" How are these two groups different?
  • 46. 5. Start doing usability tests
  • 47. Great for general UX, not good for market-specific insights.
  • 48. Big Win Hunting Recap 1 Get qualitative insights for hypothesis 2 Launch, do it LIVE 3 Use the eyeball test #KISSwebinar Run through this cycle at each gateway until you get past it.
  • 49. Q&A Time! Lars Lofgren @larslofgren llofgren@kissmetrics.com