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BUILDING A GROWTH MACHINE
BY: BRIAN BALFOUR
Brian Balfour :: @bbalfour :: http://www.coelevate.com
ONE MISSION, ONE GOAL
Brian Balfour :: @bbalfour :: http://www.coelevate.com
AUTHENTIC GROWTH
Brian Balfour :: @bbalfour :: http://www.coelevate.com
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWING IN A WORLD OF SOFTWARE
HAS CHANGED…
The Lines Between Marketing and Product Are Blurring
Where does marketing end and product begin in software? 1
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWING IN A WORLD OF SOFTWARE
HAS CHANGED…
The Lines Between Marketing and Product Are Blurring
Where does marketing end and product begin in software? 1
Marketing Has Become More Technical & Quantitative
“Mad Men” skills aren’t as important. 2
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWING IN A WORLD OF SOFTWARE
HAS CHANGED…
The Lines Between Marketing and Product Are Blurring
Where does marketing end and product begin in software? 1
Marketing Has Become More Technical & Quantitative
“Mad Men” skills aren’t as important. 2
Data Is Becoming More Accessible
Gathering quantitative and qualitative data is becoming easier 3
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWING IN A WORLD OF SOFTWARE
HAS CHANGED…
The Lines Between Marketing and Product Are Blurring
Where does marketing end and product begin in software? 1
Marketing Has Become More Technical & Quantitative
“Mad Men” skills aren’t as important. 2
Data Is Becoming More Accessible
Gathering quantitative and qualitative data is becoming easier 3
Scale and Speed Of Growth Is Accelerating
Time to 1M Users/ARR has accelerated. 4
Revenue
Referral
Activation
Retention
Acquisition
GROWTH ≠ ACQUISITION
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWTH EFFORTS REQUIRE…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
Product
Engineering
GROWTH
Marketing
Data
GROWTH AND PRODUCT IS DIFFERENT
BUILDING
CORE VALUE
GETTING THE LARGEST
% OF OUR AUDIENCE
TO EXPERIENCE CORE
VALUE AS QUICKLY AS
POSSIBLE
GETTING USERS TO
EXPERIENCE THAT
CORE VALUE AS OFTEN
AS POSSIBLE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWTH EFFORTS
CREDIT: ANDY JOHNS
0
10000
20000
30000
40000
NATURAL ADOPTION
TRUE GROWTH POTENTIAL
PURPOSE
OF GROWTH
EFFORTS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
GROWTH IS MORE ABOUT A CHANGE TO
TEAM STRUCTURE, PEOPLE, METHODOLGY,
PROCESS NOT TACTICS/HACKS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
LEARNING HOW TO GROW AUTHENTICALLY
DOESN’T START WITH TACTICS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
PROCESS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
PROCESS?!?!?!
WHAT CAN BE SO SPECIAL ABOUT PROCESS?
Brian Balfour :: @bbalfour :: http://www.coelevate.com
4 REASONS TO FOCUS ON
PROCESS FIRST, TACTICS SECOND
Brian Balfour :: @bbalfour :: http://www.coelevate.com
14
1. WHAT WORKS FOR OTHERS, WON’T
WORK FOR YOU
YOUR AUDIENCE IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR PRODUCT IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR BUSINESS MODEL IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR CUSTOMER JOURNEY IS DIFFERENT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
YOUR BUSINESS IS DIFFERENT
PLAIN AND SIMPLE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
20
2. GROWTH = SUM(1, 2, 3, 4….X)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
Brian Balfour :: @bbalfour :: http://www.coelevate.com
MOST PEOPLE FOCUS ON
WHAT HAPPENED HERE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
BUT WE SHOULD ASK
ABOUT ALL THE THINGS
HERE AND….
HERE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
BUT WE SHOULD ASK
ABOUT ALL THE THINGS
HERE AND….
HERE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
BUT WE SHOULD ASK
ABOUT ALL THE THINGS
HERE AND….
HERE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
23
SILVER BULLETS DON’T EXIST
Brian Balfour :: @bbalfour :: http://www.coelevate.com
24
3. RATE OF CHANGE IS ACCELERATING
Brian Balfour :: @bbalfour :: http://www.coelevate.com
SEO No Keyword Data, Author Rank, Content
Freshness, Social Shares, Search Result Format
DISPLAY RTB, No Cookies, Mobile
EMAIL Tabbed Inboxes, Inbox Actions, Unsubscribe,
Mobile
FACEBOOK
Newsfeed Ads (4 formats), Video Ads,
Optimized CPM, CTA Format, Custom Audiences,
etc, etc
Effectiveness
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
WOM
Novelty
Email
MySpace
Craigslist
Twitter
Mobile
iOS
Android
Facebook
Ooga Labs
EVOLUTION OF CHANNELS
CREDIT: JAMES CURRIER
27
4. YOU NEED A MACHINE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
A GROWTH MACHINE IS…
1
2 PREDICTABLE
SCALABLE
3 REPEATABLE
THE MACHINE PRODUCES THE TACTICS
THE PROCESS MAKES THE MACHINE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
BUILDING A GROWTH MACHINE
THE PROCESS
THE GOALS OF OUR PROCESS
1
2
LEARNING
Constant learning of our customer, product, channels
and feeding that learning into the process to improve.
3 AUTONOMY Individuals decide what they work on to achieve the
OKR’s.
4 ACCOUNTABILITY
With autonomy, comes accountability. You
don’t have to be right all the time, but there
is an expectation to improve.
RYTHYM
Momentum is powerful. Establish a cadence to fight
through failures, get to successes, and find
momentum
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Set Goals
OKR’s
Explore Data
Qualitative and Quantitative
Find Levers
Growth Model
DAILY/WEEKLY
FINDING LEVERS
BUILDING A GROWTH MODEL
GOAL IS TO FIND THE HIGHEST IMPACT AREA THAT WE
CAN FOCUS ON RIGHT NOW GIVEN LIMITED
RESOURCES.
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
YOUR TOOL IS YOUR GROWTH MODEL
FINDING LEVERS
BUILDING A GROWTH MODEL
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
BUILDING A GROWTH MODEL
GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s?
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
BUILDING A GROWTH MODEL
GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s?
WAU’s = New Activated + Retained
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
BUILDING A GROWTH MODEL
GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s?
WAU’s = New Activated + Retained
New Activated = (RegisteredFB ADS * ARFB ADS) + (RegisteredViral * ARViral)+…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
BUILDING A GROWTH MODEL
GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s?
WAU’s = New Activated + Retained
New Activated = (RegisteredFB ADS * ARFB ADS) + (RegisteredViral * ARViral)+…
RegisteredViral = Imp * Conversion Rate * Invites/User * Email CTR * Landing Page CR
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
BUILDING A GROWTH MODEL
GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s?
WAU’s = New Activated + Retained
New Activated = (RegisteredFB ADS * ARFB ADS) + (RegisteredViral * ARViral)+…
RegisteredViral = Imp * Conversion Rate * Invites/User * Email CTR * Landing Page CR
Retained = (New ActW-1 * RetentionW-1) + (New ActW-2 * RetentionW-2)…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
FINDING LEVERS
THREE THINGS TO UNDERSTAND ABOUT THE INPUTS
1
2 CEILING
BASELINE
3 SENSITIVITY 	OVER TIME
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Set Goals
OKR’s
Explore Data
Qualitative and Quantitative
Find Levers
Growth Model
DAILY/WEEKLY
HOW WE SET GOALS (OKRs)
OBJECTIVE: Qualitative statement
TIMEFRAME: 30 - 90 Days
KR1: Measurable Goal 1 (Hit 90% Of Time)
KR2: Measurable Goal 2 (Hit 50% Of Time)
KR3: Measurable Goal 3 (Hit 10% Of Time)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
AN EXAMPLE…
OBJECTIVE: MAKE VIRALITY A MEANINGFUL
CHANNEL
TIMEFRAME: 90 Days
KR1: 1.5% Viral/WAU
KR2: 2% Viral/WAU
KR3: 3% Viral/WAU
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1
2 IN OUR FACE
INPUTS NOT OUTPUTS
3 CONCRETE	
OKR’s will never be set on on the
output (WAU) the will always be
set on the inputs.
OKR’s will be somewhere that we can’t forget
them. Review daily and weekly.
Goals will change mid-OKR VERY rarely.
OKR PRINCIPLES
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Set Goals
OKR’s
Explore Data
Qualitative and Quantitative
Find Levers
Growth Model
DAILY/WEEKLY
HOW WE GET GROWTH INSIGHTS
INSIGHT
Quantitative Qualitative
Intuition
1
2 QUANTITATIVE
QUALITATIVE User Surveys, 1 on 1 Conversations, Full Story
Videos, Customer Support Tickets
GA, Mixpanel, Datastore. Goal is to answer
questions we don’t know about our user, product,
or channel. Break it into pieces.
EXPLORE DATA
UNDERSTAND THE INPUTS OF THE INPUTS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
BUILD A MINI MODEL
UNDERSTAND THE INPUTS OF THE INPUTS
1
2 CEILING
BASELINE
3 SENSITIVITY
UNDERSTAND THE WHY
UNDERSTAND THE INPUTS OF THE INPUTS
Why do users who get to invite page not covert?
<— Super targeted to the variable we are trying to improve
<— Open ended question to allow for all types of answers
<— Email looks like a personal email to create a sense of
importance
UNDERSTAND THE WHY
UNDERSTAND THE INPUTS OF THE INPUTS
Bug
7%
Other
8%
Would Prefer To Just Share On FB
10%
Don't Want You To Spam Friends
11%
Reward Not High Enough
29%
Didn't Know Who To Invite
35%
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP ONE: BRAINSTORM
BRAINSTORM ON THE INPUTS
NOT THE OUTPUTS…
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP ONE: BRAINSTORM
ACTIVATION RATE = STEP 1 CONV * STEP 2 CONV * STEP 3 CONV
IF WE WANT TO
IMPROVE THIS
WE BRAINSTORM ON THESE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
4 WAYS TO COME UP
WITH GROWTH IDEAS
1 OBSERVE How are others doing it? Look outside of your
immediate product space. Walk through together.
2 QUESTION Question brainstorming. Why? What is… What if…
What about… How do we do more of…
3 ASSOCIATE Connect the dots between unrelated things. i.e What
if our activation process was like closing a deal?
4 NETWORK Growth mastermind groups. Build your network of
growth people. I’m on the phone every day for ideas
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP TWO: PRIORITIZE
1
2 IMPACT
PROBABILITY
3 RESOURCES	
LOW - 20%, MEDIUM - 50%, HIGH - 80%
Comes from your prediction. Take into account
long lasting effects vs one hit wonders.
Marketing, Design, Engineering
STEP TWO: PRIORITIZE
CREATING A HYPOTHESIS
IF SUCCESSFUL, [VARIABLE] WILL
INCREASE BY [IMPACT], BECAUSE
[ASSUMPTIONS].
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP TWO: PRIORITIZE
JUSTIFYING YOUR ASSUMPTIONS
1
2 QUALITATIVE
QUANTITATIVE
3 SECONDARY	
Previous Experiments, Surrounding Data,
Funnel Data
Surveys, Support Emails, User Testing
Recordings
Networking, Blogs, Competitor Observation,
Case Studies
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP TWO: PRIORITIZE
CREATE EXPERIMENT DOC
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP THREE: TEST
WHAT IS THE MVT
(MINIMUM VIABLE TEST)
TO UNDERSTAND OUR HYPOTHESIS?
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1 EFFICIENCY What is the least resource intensive way to gather
data about the hypothesis.
2 VALIDITY
The experiment must take into account how to get
a valid result by designing a control and required
amount of data.
STEP THREE: TEST
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP THREE: TEST
WRITE THE EXPERIMENT DESIGN IN EXPERIMENT DOC
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP FOUR: IMPLEMENT
GET SHIT DONE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP FIVE: ANALYZE
1
2 IMPACT
SUCCESS/FAIL
3 WHY?	
How close to your prediction?
The most important question you can ask. Why did
you see the result that you did?
Be prepared for a lot of failures.
STEP FIVE: ANALYZE
LEARNINGS + ACTION ITEMS IN EXPERIMENT DOC
Brian Balfour :: @bbalfour :: http://www.coelevate.com
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
4. Implement
5. Analyze
(Experiment Doc)
3. Test
(Experiment Doc)
6. Systemize
(Playbooks)
Brian Balfour :: @bbalfour :: http://www.coelevate.com
STEP SIX: SYSTEMIZE
1 PRODUCTIZE Productize as much as you can with technology
and engineering.
2 PLAYBOOKS For the things you can’t productize, build into step
by step playbooks to make them repeatable.
Brian Balfour :: @bbalfour :: http://www.coelevate.com
6. Systemize
(Playbooks)
1. Brainstorm
(Backlog)
2. Prioritize
(Experiment Doc + Backlog)
3. Test
(Experiment Doc)
4. Implement
5. Analyze
(Experiment Doc)
REPEAT
Brian Balfour :: @bbalfour :: http://www.coelevate.com
WHAT A TYPICAL WEEK LOOKS LIKE
Monday Tuesday Wednesday Thursday Friday
Growth Meeting
- Learnings
- Goal Review
- Blocking Items/
Strategies
Predicting, Prioritizing, Implementing,
Analyzing, Systemizing
Brian Balfour :: @bbalfour :: http://www.coelevate.com
WEEKLY GROWTH MEETING
DON’T GET ATTACHED TO IDEAS
1
2 GOALS
LEARNINGS
3 BLOCKING	
Learnings, not updates. You can monitor
experiment updates in the pipeline.
Progress against goals
What blocked you from doing something this
week?
WEEKLY GROWTH MEETING
TEMPLATE
Brian Balfour :: @bbalfour :: http://www.coelevate.com
MACRO OPTIMIZATION
(REVIEW QUARTERLY)
1
2 ACCURACY
BATTING AVG
3 THROUGHPUT	
How many successes to failures? Our we
improving over time?
Are our predictions getting more accurate?
How many experiments are we running in a given
time period? How do we do more?
MACRO OPTIMIZATION
HOW WE IMPROVE
1
2 INFRASTRUCTURE
TEAM
3 PROCESS	
Improve current teams skills. Add to the team.
Experiment, analytics, and qualitative
feedback infrastructure
Refining the process for more efficiency or
quality of ideas, implementation, and analysis.
A FINAL WORD PART ONE
ITERATION DOES NOT EQUAL
INCREMENTAL
Brian Balfour :: @bbalfour :: http://www.coelevate.com
A FINAL WORD PART TWO
IT IS NEVER TOO EARLY
TO START THIS PROCESS
Brian Balfour :: @bbalfour :: http://www.coelevate.com
A FINAL FINAL WORD
THERE IS NOTHING SPECIAL ABOUT THIS
PROCESS. SUCCESS COMES DOWN TO
GRIT, FOCUS, AND PERSISTENCE.
Brian Balfour :: @bbalfour :: http://www.coelevate.com
THANKS!
Brian Balfour :: @bbalfour :: http://www.coelevate.com

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  • 2. ONE MISSION, ONE GOAL Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 3. AUTHENTIC GROWTH Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 4. Brian Balfour :: @bbalfour :: http://www.coelevate.com GROWING IN A WORLD OF SOFTWARE HAS CHANGED… The Lines Between Marketing and Product Are Blurring Where does marketing end and product begin in software? 1
  • 5. Brian Balfour :: @bbalfour :: http://www.coelevate.com GROWING IN A WORLD OF SOFTWARE HAS CHANGED… The Lines Between Marketing and Product Are Blurring Where does marketing end and product begin in software? 1 Marketing Has Become More Technical & Quantitative “Mad Men” skills aren’t as important. 2
  • 6. Brian Balfour :: @bbalfour :: http://www.coelevate.com GROWING IN A WORLD OF SOFTWARE HAS CHANGED… The Lines Between Marketing and Product Are Blurring Where does marketing end and product begin in software? 1 Marketing Has Become More Technical & Quantitative “Mad Men” skills aren’t as important. 2 Data Is Becoming More Accessible Gathering quantitative and qualitative data is becoming easier 3
  • 7. Brian Balfour :: @bbalfour :: http://www.coelevate.com GROWING IN A WORLD OF SOFTWARE HAS CHANGED… The Lines Between Marketing and Product Are Blurring Where does marketing end and product begin in software? 1 Marketing Has Become More Technical & Quantitative “Mad Men” skills aren’t as important. 2 Data Is Becoming More Accessible Gathering quantitative and qualitative data is becoming easier 3 Scale and Speed Of Growth Is Accelerating Time to 1M Users/ARR has accelerated. 4
  • 9. GROWTH EFFORTS REQUIRE… Brian Balfour :: @bbalfour :: http://www.coelevate.com Product Engineering GROWTH Marketing Data
  • 10. GROWTH AND PRODUCT IS DIFFERENT BUILDING CORE VALUE GETTING THE LARGEST % OF OUR AUDIENCE TO EXPERIENCE CORE VALUE AS QUICKLY AS POSSIBLE GETTING USERS TO EXPERIENCE THAT CORE VALUE AS OFTEN AS POSSIBLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 11. GROWTH EFFORTS CREDIT: ANDY JOHNS 0 10000 20000 30000 40000 NATURAL ADOPTION TRUE GROWTH POTENTIAL PURPOSE OF GROWTH EFFORTS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 12. GROWTH IS MORE ABOUT A CHANGE TO TEAM STRUCTURE, PEOPLE, METHODOLGY, PROCESS NOT TACTICS/HACKS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 13. LEARNING HOW TO GROW AUTHENTICALLY DOESN’T START WITH TACTICS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 14. PROCESS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 15. PROCESS?!?!?! WHAT CAN BE SO SPECIAL ABOUT PROCESS? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 16. 4 REASONS TO FOCUS ON PROCESS FIRST, TACTICS SECOND Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 17. 14 1. WHAT WORKS FOR OTHERS, WON’T WORK FOR YOU
  • 18. YOUR AUDIENCE IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 19. YOUR PRODUCT IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 20. YOUR BUSINESS MODEL IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 21. YOUR CUSTOMER JOURNEY IS DIFFERENT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 22. YOUR BUSINESS IS DIFFERENT PLAIN AND SIMPLE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 23. 20 2. GROWTH = SUM(1, 2, 3, 4….X) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 24. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 25. MOST PEOPLE FOCUS ON WHAT HAPPENED HERE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 26. BUT WE SHOULD ASK ABOUT ALL THE THINGS HERE AND…. HERE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 27. BUT WE SHOULD ASK ABOUT ALL THE THINGS HERE AND…. HERE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 28. BUT WE SHOULD ASK ABOUT ALL THE THINGS HERE AND…. HERE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 29. 23 SILVER BULLETS DON’T EXIST Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 30. 24 3. RATE OF CHANGE IS ACCELERATING Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 31. SEO No Keyword Data, Author Rank, Content Freshness, Social Shares, Search Result Format DISPLAY RTB, No Cookies, Mobile EMAIL Tabbed Inboxes, Inbox Actions, Unsubscribe, Mobile FACEBOOK Newsfeed Ads (4 formats), Video Ads, Optimized CPM, CTA Format, Custom Audiences, etc, etc
  • 32. Effectiveness 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 WOM Novelty Email MySpace Craigslist Twitter Mobile iOS Android Facebook Ooga Labs EVOLUTION OF CHANNELS CREDIT: JAMES CURRIER
  • 33. 27 4. YOU NEED A MACHINE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 34. A GROWTH MACHINE IS… 1 2 PREDICTABLE SCALABLE 3 REPEATABLE
  • 35. THE MACHINE PRODUCES THE TACTICS THE PROCESS MAKES THE MACHINE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 36. BUILDING A GROWTH MACHINE THE PROCESS
  • 37. THE GOALS OF OUR PROCESS 1 2 LEARNING Constant learning of our customer, product, channels and feeding that learning into the process to improve. 3 AUTONOMY Individuals decide what they work on to achieve the OKR’s. 4 ACCOUNTABILITY With autonomy, comes accountability. You don’t have to be right all the time, but there is an expectation to improve. RYTHYM Momentum is powerful. Establish a cadence to fight through failures, get to successes, and find momentum Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 38. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Set Goals OKR’s Explore Data Qualitative and Quantitative Find Levers Growth Model DAILY/WEEKLY
  • 39. FINDING LEVERS BUILDING A GROWTH MODEL GOAL IS TO FIND THE HIGHEST IMPACT AREA THAT WE CAN FOCUS ON RIGHT NOW GIVEN LIMITED RESOURCES. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 40. FINDING LEVERS YOUR TOOL IS YOUR GROWTH MODEL
  • 41. FINDING LEVERS BUILDING A GROWTH MODEL Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 42. FINDING LEVERS BUILDING A GROWTH MODEL GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 43. FINDING LEVERS BUILDING A GROWTH MODEL GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s? WAU’s = New Activated + Retained Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 44. FINDING LEVERS BUILDING A GROWTH MODEL GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s? WAU’s = New Activated + Retained New Activated = (RegisteredFB ADS * ARFB ADS) + (RegisteredViral * ARViral)+… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 45. FINDING LEVERS BUILDING A GROWTH MODEL GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s? WAU’s = New Activated + Retained New Activated = (RegisteredFB ADS * ARFB ADS) + (RegisteredViral * ARViral)+… RegisteredViral = Imp * Conversion Rate * Invites/User * Email CTR * Landing Page CR Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 46. FINDING LEVERS BUILDING A GROWTH MODEL GOAL IS WAU’s, BUT WHAT EFFECTS WAU’s? WAU’s = New Activated + Retained New Activated = (RegisteredFB ADS * ARFB ADS) + (RegisteredViral * ARViral)+… RegisteredViral = Imp * Conversion Rate * Invites/User * Email CTR * Landing Page CR Retained = (New ActW-1 * RetentionW-1) + (New ActW-2 * RetentionW-2)… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 47. FINDING LEVERS THREE THINGS TO UNDERSTAND ABOUT THE INPUTS 1 2 CEILING BASELINE 3 SENSITIVITY OVER TIME
  • 48. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Set Goals OKR’s Explore Data Qualitative and Quantitative Find Levers Growth Model DAILY/WEEKLY
  • 49. HOW WE SET GOALS (OKRs) OBJECTIVE: Qualitative statement TIMEFRAME: 30 - 90 Days KR1: Measurable Goal 1 (Hit 90% Of Time) KR2: Measurable Goal 2 (Hit 50% Of Time) KR3: Measurable Goal 3 (Hit 10% Of Time) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 50. AN EXAMPLE… OBJECTIVE: MAKE VIRALITY A MEANINGFUL CHANNEL TIMEFRAME: 90 Days KR1: 1.5% Viral/WAU KR2: 2% Viral/WAU KR3: 3% Viral/WAU Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 51. 1 2 IN OUR FACE INPUTS NOT OUTPUTS 3 CONCRETE OKR’s will never be set on on the output (WAU) the will always be set on the inputs. OKR’s will be somewhere that we can’t forget them. Review daily and weekly. Goals will change mid-OKR VERY rarely. OKR PRINCIPLES
  • 52. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Set Goals OKR’s Explore Data Qualitative and Quantitative Find Levers Growth Model DAILY/WEEKLY
  • 53. HOW WE GET GROWTH INSIGHTS INSIGHT Quantitative Qualitative Intuition
  • 54. 1 2 QUANTITATIVE QUALITATIVE User Surveys, 1 on 1 Conversations, Full Story Videos, Customer Support Tickets GA, Mixpanel, Datastore. Goal is to answer questions we don’t know about our user, product, or channel. Break it into pieces. EXPLORE DATA UNDERSTAND THE INPUTS OF THE INPUTS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 55. BUILD A MINI MODEL UNDERSTAND THE INPUTS OF THE INPUTS 1 2 CEILING BASELINE 3 SENSITIVITY
  • 56. UNDERSTAND THE WHY UNDERSTAND THE INPUTS OF THE INPUTS Why do users who get to invite page not covert? <— Super targeted to the variable we are trying to improve <— Open ended question to allow for all types of answers <— Email looks like a personal email to create a sense of importance
  • 57. UNDERSTAND THE WHY UNDERSTAND THE INPUTS OF THE INPUTS Bug 7% Other 8% Would Prefer To Just Share On FB 10% Don't Want You To Spam Friends 11% Reward Not High Enough 29% Didn't Know Who To Invite 35%
  • 58. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 59. STEP ONE: BRAINSTORM BRAINSTORM ON THE INPUTS NOT THE OUTPUTS… Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 60. STEP ONE: BRAINSTORM ACTIVATION RATE = STEP 1 CONV * STEP 2 CONV * STEP 3 CONV IF WE WANT TO IMPROVE THIS WE BRAINSTORM ON THESE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 61. 4 WAYS TO COME UP WITH GROWTH IDEAS 1 OBSERVE How are others doing it? Look outside of your immediate product space. Walk through together. 2 QUESTION Question brainstorming. Why? What is… What if… What about… How do we do more of… 3 ASSOCIATE Connect the dots between unrelated things. i.e What if our activation process was like closing a deal? 4 NETWORK Growth mastermind groups. Build your network of growth people. I’m on the phone every day for ideas Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 62. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 63. STEP TWO: PRIORITIZE 1 2 IMPACT PROBABILITY 3 RESOURCES LOW - 20%, MEDIUM - 50%, HIGH - 80% Comes from your prediction. Take into account long lasting effects vs one hit wonders. Marketing, Design, Engineering
  • 64. STEP TWO: PRIORITIZE CREATING A HYPOTHESIS IF SUCCESSFUL, [VARIABLE] WILL INCREASE BY [IMPACT], BECAUSE [ASSUMPTIONS]. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 65. STEP TWO: PRIORITIZE JUSTIFYING YOUR ASSUMPTIONS 1 2 QUALITATIVE QUANTITATIVE 3 SECONDARY Previous Experiments, Surrounding Data, Funnel Data Surveys, Support Emails, User Testing Recordings Networking, Blogs, Competitor Observation, Case Studies Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 66. STEP TWO: PRIORITIZE CREATE EXPERIMENT DOC Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 67. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 68. STEP THREE: TEST WHAT IS THE MVT (MINIMUM VIABLE TEST) TO UNDERSTAND OUR HYPOTHESIS? Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 69. 1 EFFICIENCY What is the least resource intensive way to gather data about the hypothesis. 2 VALIDITY The experiment must take into account how to get a valid result by designing a control and required amount of data. STEP THREE: TEST Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 70. STEP THREE: TEST WRITE THE EXPERIMENT DESIGN IN EXPERIMENT DOC Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 71. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 72. STEP FOUR: IMPLEMENT GET SHIT DONE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 73. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 74. STEP FIVE: ANALYZE 1 2 IMPACT SUCCESS/FAIL 3 WHY? How close to your prediction? The most important question you can ask. Why did you see the result that you did? Be prepared for a lot of failures.
  • 75. STEP FIVE: ANALYZE LEARNINGS + ACTION ITEMS IN EXPERIMENT DOC Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 76. 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 4. Implement 5. Analyze (Experiment Doc) 3. Test (Experiment Doc) 6. Systemize (Playbooks) Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 77. STEP SIX: SYSTEMIZE 1 PRODUCTIZE Productize as much as you can with technology and engineering. 2 PLAYBOOKS For the things you can’t productize, build into step by step playbooks to make them repeatable. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 78. 6. Systemize (Playbooks) 1. Brainstorm (Backlog) 2. Prioritize (Experiment Doc + Backlog) 3. Test (Experiment Doc) 4. Implement 5. Analyze (Experiment Doc) REPEAT Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 79. WHAT A TYPICAL WEEK LOOKS LIKE Monday Tuesday Wednesday Thursday Friday Growth Meeting - Learnings - Goal Review - Blocking Items/ Strategies Predicting, Prioritizing, Implementing, Analyzing, Systemizing Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 80. WEEKLY GROWTH MEETING DON’T GET ATTACHED TO IDEAS 1 2 GOALS LEARNINGS 3 BLOCKING Learnings, not updates. You can monitor experiment updates in the pipeline. Progress against goals What blocked you from doing something this week?
  • 81. WEEKLY GROWTH MEETING TEMPLATE Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 82. MACRO OPTIMIZATION (REVIEW QUARTERLY) 1 2 ACCURACY BATTING AVG 3 THROUGHPUT How many successes to failures? Our we improving over time? Are our predictions getting more accurate? How many experiments are we running in a given time period? How do we do more?
  • 83. MACRO OPTIMIZATION HOW WE IMPROVE 1 2 INFRASTRUCTURE TEAM 3 PROCESS Improve current teams skills. Add to the team. Experiment, analytics, and qualitative feedback infrastructure Refining the process for more efficiency or quality of ideas, implementation, and analysis.
  • 84. A FINAL WORD PART ONE ITERATION DOES NOT EQUAL INCREMENTAL Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 85. A FINAL WORD PART TWO IT IS NEVER TOO EARLY TO START THIS PROCESS Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 86. A FINAL FINAL WORD THERE IS NOTHING SPECIAL ABOUT THIS PROCESS. SUCCESS COMES DOWN TO GRIT, FOCUS, AND PERSISTENCE. Brian Balfour :: @bbalfour :: http://www.coelevate.com
  • 87. THANKS! Brian Balfour :: @bbalfour :: http://www.coelevate.com