The Science of Growth

6,709 views

Published on

What do you do once you have product market fit? There is an entire science to generating growth once they've achieved the first milestone of p/m fit and it's not as simple as "hire a growth hacker."

The Science of Growth

  1. The Science of 
 Growth Why some companies scale while others stall in the same market? Sean Ammirati @SeanAmmirati 
 Partner, Birchmere Ventures
 Adjunct Faculty, Carnegie Mellon University SeanAmmirati.com
  2. Most startup advice today
  3. Product Market Fit = “being in a good market with a product that can satisfy that market” - Marc Andreessen
  4. Makes sense as you can’t scale until product market fit
  5. http://blog.startupcompass.co/pages/startup-genome-report-extra-on-premature-scal Prematurely Scaling = Failure
  6. However, once you have product market fit not as simple as: “hire a growth hacker”
  7. not a new reality ...
  8. Everything is either Growing Dying or
  9. The Best Technology Rarely Wins #VCcliche #clicheForAReason
  10. What are the 
 best practices for growth?
  11. Partnered with my graduate students from Carnegie Mellon to look at …
  12. Pairs of Companies Achieved product-market fit at roughly the same time Yet one scaled while the other didn’t Primarily (but intentionally not exclusively) internet companies
  13. Reinforced with five exemplar examples Only used to reinforce best practices identified in the pairs of companies analyzed … Plus
  14. There is a scientific method to growth Conclusion:
  15. Combination of Techniques An Excellent First Interaction Viral Growth Catalyzing Events After Initial Launch Complementary Team Skills Partnerships & Platform Thinking Financing Strategies Being Data Informed (but not Driven) No Single Recipe for Success but ...
  16. How customers perceive the product the first time they touch it has a huge impact on it’s ultimate scale. Create Constraints to Ensure a Great First Experience Focus on Implications from Product ArchitectureChoices An Excellent First Interaction Viral Growth Catalyzing Events After 
 Initial Launch Complementary Team Skills Partnerships & Platform 
 Thinking Financing Strategies Being Data Informed
  17. Amplify growth by leveraging customers to recruit additional customers. Build recruiting additional customers into product workflow Look for existing social connections to refer additional customers An Excellent First Interaction Viral Growth Catalyzing Events After 
 Initial Launch Complementary Team Skills Partnerships & Platform 
 Thinking Financing Strategies Being Data Informed
  18. An Excellent First Interaction Viral Growth Catalyzing Events After Initial Launch Complementary Team Skills Partnerships & Platform 
 Thinking Financing Strategies Being Data Informed “we didn't actually launch Twitter at SXSW -- SXSW just chose to blow it up. We launched it nine months before -- to a whimper.” Evan Williams, Founder
  19. An Excellent First Interaction Viral Growth Catalyzing Events After Initial Launch Complementary Team Skills Partnerships & Platform 
 Thinking Financing Strategies Being Data Informed “No matter how brilliant your mind or strategy, if you’re playing a solo game, you’ll always lose out to a team.” Reid Hoffman, Co-Founder & Chairman 

  20. An Excellent First Interaction Viral Growth Catalyzing Events After Initial Launch Complementary Team Skills Partnership & Platform Thinking Financing Strategies Being Data Informed Where are there engaged groups of customers looking for a solution to the problem your product solves?
  21. An Excellent First Interaction Viral Growth Catalyzing Events After Initial Launch Complementary Team Skills Partnership & Platform Thinking Financing Strategies Being Data Informed While it has gotten cheaper to test and build a first version, it still takes capital to scale. $100 M $200 M $300 M $400 M Seed 
 '04 Series A 
 '05 Series B 
 '06 Series C 
 '07 $375.0 $27.5$12.7$0.5
  22. An Excellent First Interaction Viral Growth Catalyzing Events After Initial Launch Complementary Team Skills Partnership & Platform Thinking Financing Strategies Being Data Informed Vision Driven Data Driven DATA INFORMED Adam Mosseri, Product “ We use data to inform certain decisions … [but] overreacting to data can lead to micro optimizations.” “Data is the voice of your customer” Riley Newman, Head Data Science
  23. THANK YOU @SEANAMMIRATI
 SEANAMMIRATI.COM
  24. Slide 10: https://www.flickr.com/photos/vkpatel/5685826217/ Slide 22: https://www.flickr.com/photos/zoramite/3993280685/

×