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Nilan Peiris (VP Growth, TransferWise) - Building A High-Growth Startup Sustainably

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This video for this talk from Business of Software Conference Europe 2018 will be published here soon: http://businessofsoftware.org/2016/07/all-talks-from-business-of-software-conferences-in-one-place-saas-software-talks/

Nilan shares his experiences building TransferWise from a loss-making startup to a profitable business powered by word of mouth growth. Nilan shares the challenges he’s faced at TransferWise and other business in scaling through increasing marketing spend – 80% of TransferWise users come in through word of mouth as well as how cash constraints, drove the eventual success of the business.

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Nilan Peiris (VP Growth, TransferWise) - Building A High-Growth Startup Sustainably

  1. 1. @nilanp Building a high growth startup sustainably
  2. 2. @nilanp What I’ve learned …. 1. Marketing in early stage startups 2. Word of mouth growth 3. Economics of Mission Driven business
  3. 3. @nilanp What I’ve learned …. 1. Marketing in early stage startups 2. Word of mouth growth 3. Economics of Mission Driven business
  4. 4. @nilanp @cataflu
  5. 5. Revenue
  6. 6. Revenue
  7. 7. Revenue
  8. 8. Death Zone
  9. 9. Revenue
  10. 10. Marketing
  11. 11. Loss
  12. 12. @nilanp The logic of marketing led growth
  13. 13. Revenue Marketing $$$$
  14. 14. Revenue Marketing $$$$
  15. 15. Revenue Marketing $$$$
  16. 16. THE INFINITELY SCALABLE MARKETING CHANNEL DOESN’T EXIST Revenue Marketing $$$$
  17. 17. @nilanp There are no short cuts to growth…
  18. 18. @nilanp …its all about creating value for customers
  19. 19. @nilanp … but what does that MEAN ?
  20. 20. @nilanp What I’ve learned …. 1. Marketing in early stage startups 2. Word of mouth growth 3. Economics of Mission Driven business
  21. 21. …First a bit about TransferWise
  22. 22. TransferWise was started to solve a problem @nilanp@nilanp
  23. 23. What is TransferWise What is borderless
  24. 24. @nilanp @cataflu > £2 Billion per month
  25. 25. @nilanp @cataflu > £60m per month
  26. 26. @nilanp @cataflu > 1,000 TransferWisers
  27. 27. @nilanp @cataflu Profitable for 2 years
  28. 28. @nilanp @cataflu Evangelism is the biggest driver of growth
  29. 29. What have we learned about WoM at TransferWise ?
  30. 30. Why do people recommend our product ?
  31. 31. @nilanp Would you recommend us to your friends? 1 2 3 4 5 6 7 8 9 10 Detractors Neutral Promoters
  32. 32. @nilanp Would you recommend us to your friends? 1 2 3 4 5 6 7 8 9 10 Detractors Neutral Promoters Total Promoters - Detractors = NPS
  33. 33. @nilanp The NPS Richter scale
  34. 34. @nilanp 1 2 3 4 5 6 7 8 9 10
  35. 35. @nilanp
  36. 36. @nilanp
  37. 37. @nilanp
  38. 38. @nilanp
  39. 39. @nilanp
  40. 40. @nilanp
  41. 41. @nilanp If promoters > detractors you WILL grow
  42. 42. @nilanp N.B. This is hard.
  43. 43. It works ! (But barely)
  44. 44. It works ! (But barely) It works with no significant issues !
  45. 45. It works ! (But barely) It works with no significant issues ! It works. Wow that was slick
  46. 46. It works ! (But barely) It works with no significant issues ! It works. Wow that was slick You’ve just blown my socks off that was incredible
  47. 47. RATIONalRational Emotional
  48. 48. RATIONalProduct Mission
  49. 49. RATIONal Speed Price Convenience Coverage Mission
  50. 50. To achieve advocacy your product needs to be an order of magnitude better than the alternative
  51. 51. But don’t do this as “growth hack” do it because its the right thing to do
  52. 52. RATIONal Speed Price Convenience Coverage Mission
  53. 53. Money without borders. Instant, convenient, transparent and eventually free We’re powering money for people and businesses: to pay, to get paid, to spend, in any currency, wherever you are, whatever you’re doing
  54. 54. You can’t copy that !
  55. 55. So… 10x product + Cause driven marketing = Word of Mouth growth @nilanp @cataflu
  56. 56. ONE question: @nilanp @cataflu
  57. 57. So how you do build a 10x product ? @nilanp @cataflu
  58. 58. @nilanp Singapore
  59. 59. @nilanp @cataflu Bank of England @nilanp
  60. 60. How does this scale ? @nilanp @cataflu
  61. 61. Autonomous independent teams that focus on KPIs that make a difference to customers and drive growth @nilanp
  62. 62. Autonomous independent teams that focus on KPIs that make a difference to customers and drive growth @nilanp Regulated and available Instantly and almost zero cost IdentityOnboarding Worry Evangelism Problem awareness
  63. 63. Autonomous independent teams that focus on KPIs that make a difference to customers and drive growth @nilanp Currencies OperationsVerificationConversion Experience ViralityMarketing Regulated and available Instantly and almost zero cost IdentityOnboarding Worry Evangelism Problem awareness
  64. 64. @nilanp So in summary. Building a sustainable high growth business is slow hard work. It starts by working on hard problems. Solving these takes time but creates a huge amount of value for customers - which translates to growth
  65. 65. @nilanp What I’ve learned …. 1. Marketing in early stage startups 2. Word of mouth growth 3. Economics of Mission Driven business
  66. 66. @nilanp ! I need to transfer £2000 to Europe
  67. 67. @nilanp ! 5%
  68. 68. @nilanp ! 7%
  69. 69. @nilanp ! 3%
  70. 70. @nilanp ! 5% Price to extract maximal value from consumers
  71. 71. @nilanp ! £100 Price to extract maximal value from consumers
  72. 72. @nilanp ! £100 Slow inconvenient Service
  73. 73. @nilanp ! £100 😡 Unhappy customers looking for alternatives
  74. 74. @nilanp ! £100 😡 Challenges with retention, organic growth
  75. 75. @nilanp ! 0.5%
  76. 76. @nilanp ! 0.35%
  77. 77. @nilanp ! 0.2%
  78. 78. @nilanp ! £7
  79. 79. @nilanp “I’d hate to think we could have a business twice as valuable if we charged twice as much and didn’t lose any customers”
  80. 80. @nilanp ! £7 £93 - Consumer surplus
  81. 81. @nilanp ! £7+♥♥♥ £93 - Consumer surplus
  82. 82. @nilanp ! £7+♥♥♥ £93 - Consumer surplus !
  83. 83. @nilanp Valuation = f(growth rate, profitability)
  84. 84. @nilanp Create more value for your customers than you capture
  85. 85. @nilanp …the consumer surplus you create turns into consumer goodwill + profitable growth
  86. 86. @nilanp … and economic value
  87. 87. @nilanp What I’ve learned …. 1. Marketing in early stage startups 2. Word of mouth growth 3. Economics of Mission Driven business
  88. 88. @nilanp But what about marketing ?
  89. 89. @nilanp 50% ⬇ Marketing Spend New Users 10% ⬇ 1% ⬇ Revenue
  90. 90. What is the problem marketing is solving ?
  91. 91. Viral growth.
  92. 92. SEO.
  93. 93. Marketing teams can also focus on helping customers understand the value products create
  94. 94. @nilanp What I’ve learned …. 1. Marketing in early stage startups 2. Word of mouth growth 3. Economics of Mission Driven business … marketing can help if done properly :-)
  95. 95. @nilanp Building a high growth startup sustainably ?
  96. 96. @nilanp Create value for customers sustainably
  97. 97. @nilanp Onwards Jobs.TransferWise.com

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