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@jeroentjepkema
Adobe User Group Ap(p)ril 2015
#GrowthHacking
Part 1: The Innovation Dilemma
(http://csinvesting.org/2012/01/06/fortune-500-extinction/)
F500 Life
Expectancy 75years 15years
1950 2010
The slow death of corporates...
“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
Model 2: The Adoption Curve
Early adopters Late adopters
Model 3: Gross Margin percent
Most companies die because
they fail to move to new
business models...
Often, this isn’t about lack of resources
http://www.flickr.com/photos/maladjusted/5207565912
Optimizing the probable means
discounting the possible?
The problem is framing.
YOU ARE
HERE
LOCAL
MAXIMUMOPTIMIZATION
OF CURRENT
METRICS
YOU ARE
HERE
YOU ARE
HERE
GLOBAL
MAXIMUM
INNOVATION
WITH NEW
RULES
YOU ARE
HERE
INVESTORS & MANAGERS
HATE GOING DOWNHILL
Three kinds of innovation
Sustain
(optimizing for more
of the same)
Improve along
current metrics...
...or alter
the rate of
improvement
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
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
Experiment with product, market,
and method.
Product
(new “what”)
Market
(new “who”)
Method
(new “how”)
A three-maxima model of
(enterprise) innovation
Current
state
Business
optimization
A three-maxima model of
(enterprise) innovation
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
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
Sustaining
Next year’s car
Sustaining Innovative
Next year’s car Electric car,
same dealer
Sustaining Innovative Disruptive
Next year’s car Electric car,
same dealer
On-demand, app-based
car service
...then disruptive innovation
produces exponential growth.
If sustaining innovation produces
linear growth...
Part 2: Enter Growth Hacking
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).
Every successful startup has
benefited from an exploit...
AirBnB and Craigslist
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.
So,your growth problem is probably
a marketing problem.
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
What are
you
growing,
anyway?
What are we growing, anyway?
$
@
!
GROWTH
HACKING
$
Money
!
Attention
@
Reputation
GROWTH
HACKING
$
Money
!
Attention
@
Reputation
Sales/Conversion
Advertising
GROWTH
HACKING
$
Money
!
Attention
@
Reputation
Sales/Conversion
Advertising
Perceived value
Search, Virality
GROWTH
HACKING
$
Money
!
Attention
@
Reputation
Sales/Conversion
Advertising
Perceived value
Search, Virality
PREndorsement
Growth Hacking is always
an exchange between these 3
elements...
If you have a ‘Growth’ problem...
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.
Keyword: subversiveness
Think subversively.
http://www.nytimes.com/2012/08/19/opinion/sunday/why-waiting-in-line-is-torture.html?pagewanted=all&_r=0
http://answers.yahoo.com/question/index?qid=1005081200005
GROWTH
HACKING
Guerrilla
marketing
Data-driven
learning
Subversiveness
Part 4: The Nigerian Scam
Why is Nigerian spam so badly
written?
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)
Nigerian spammers
really understand their target
market and ‘customers’
One Metric That Matters
Every website has goals
Your Analytics measures the
movement towards these goals
Importance of correlation vs. causation
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
http://www.flickr.com/photos/25159787@N07/3766111564
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
Holy causation, Batman...
A leading, causal, connection is
the analytics superpower...
That’s why we pick one at at time...
‣ 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/)
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
Part 4: Experimentation
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
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.
Set your thresholds...
...find your stickiness
Validating experiments:
B.R.A.S.S. framework
Blink Relevance Availability Scalability Sum
Blink Relevance Availability Scalability Sum
5-second rule
Gut feeling
Instinct score
Don’t overthink it
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?
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?
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
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
bit.ly/brassframework
Growth hacking, demystified.
Find correlation Test causality
Optimize the causal
factor
Pick a metric
to change
behavior
Experiment:
Do AirBnB hosts get more
business if their property is
professionally photographed?
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
5,000 shoots per
month by February
2012
Defining moment:
Hockeystick growth
Part 5: Some examples
1. User Acquisition
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?
Watch the competition
• http://www.similarweb.com/
Watch my friends...
• http://graph.facebook.com/nameofpage
https://www.facebook.com/pages/?frompageid=ADD ID Here
Branding & Messaging...
Ask your top users:
What value do we offer, that no-one else does?
Emailing...
Guess email addresses
App store marketing...
App Store Review Trick (Chinese Style)
App store marketing...
1. Feature-based landing pages
2. Adapted onboarding
• 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
1. Double Down on what works
1. Double Down on what works
2. Diversify your portfolio
1. Double Down on what works
2. Diversify your portfolio
3. Find 2/3 channels that work for you
2. On Boarding
“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.”
Core Value Proposition...
Test that it works with a 5-second test:
usabilityhub.com
Competitive advantage...
Mobile app? Check out uxarchive.com
First user experience...
http://www.fastcodesign.com/1669788/the-3-white-lies-behind-instagrams-lightning-speed
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
Iz overwhelmed?
Recommended reading
http://www.meetup.com/Growth-Hackers-Amsterdam
Join the meetup!
Thanks! More questions?
M: jeroen@growthtribe.nl
T: @jeroentjepkema
W: www.growthtribe.nl
View slides: bit.ly/MW-AUG15

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