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Introduction to

GROWTH HACKING
Looking for a big time leverage
Omar Mohout @omohout, omar.mohout@sirris.be
Vladimir Blagojevic, @VladBlagi, vladimir@113labs.com
Jessie Dedecker, @jesterman, jessie@113labs.com
WHAT is Growth Hacking?
Acquiring and retaining customers
by
discovering levers for repeatable and scalable growth
starting from the product and be guided by data

Discovering the most effective path to reach a market and distribute a
product or service
The rise of the

GROWTH HACKER
Marketer

Developer

Growth
hacker
Data Analyst
Growth Hacking on

GOOGLE TRENDS
Before you start
Growth Hacking
Nothing kills a bad product
faster than good advertising
Jerry Della Famina
Right

FOCUS
Right time

Credit: Ash Maurya
Is Growth Hacking another term for

MARKETING?
Marketing	
  ≠	
  Growth Hacking	
  

TheFamily
LEVERAGE

The power of small increments,
combined

€ =

(Acquired leads) * (% conversion rates) * Revenue
length of sales

(1 + 5%) * (1 + 5%) * (1 + 5%)
1 – 5%

22% increase in €
VIRALITY
ü  Inherent virality is built into the product, and
happens as a function of use
ü  Artificial virality is forced, and often built into
a reward system
ü  Word of mouth virality is simply conversations
generated by satisfied users
Virality

COEFICIENT
Acquisition X Viral Coefficient – Churn > 1
100 users sending 500 invites
§ 
§ 
§ 
§ 
§ 

Invitation rate = 5
Every 10 invites, 1 activation
Conversion rate = 0.1
Viral coefficient: 5 x 0.1 = 0.5 = 50%
Every 2 existing customers gets you 1 new customer

§  Cycle time: how long before they invite somebody?
§  After 1 month with a cycle time of 2 days: 43.789
users
§  After 1 month with a cycle time of 1 days: 19.175.105
users!
The magic of

EXPONENTIAL
Growth

Weekly
1%

Yearly

4 years

x 1.7

€7,900
/month

2%

x 2.8

€61K
/month

5%

x 12.6

€25M
/month

7%

x 33.7

€1.3B
/month

10%

x 142

€407B
/month
The

PERFECT
business

ü  Touchless conversion
ü  Usually PROFITABLE early on
SAAS
ü  Numerically driven business
ü  A small tweak to a number like churn can have a very big impact
Ä“quant” (i.e. a numbers oriented type of person) a valuable hire in
a SaaS business
GROWTH
HACKING

MARKETING

ü  Growth hacking is innovative and different
(in your market)
ü  Product-channel fit
ü  No tradeoff between market coverage and control
Ä the product is the channel
The Growth Hacking

PROCESS
Guided

EXPERIMENTATION

credit:	
  Neil	
  Patel	
  
quicksprout.com	
  
The importance of

ACTIONABLE
Goals

X2

credit:	
  Neil	
  Patel	
  	
  
quicksprout.com	
  	
  
Different

HACKS

For different goals
The Growth Hacking

FUNNEL
1 ACQUISITION

Case Studies: Hacks for
	
  
Hotmail

SIGNATURES
“PS: I love you. Get your
free email at Hotmail”
Ä 6 months later 1M users
Ä One year later 10 million

	
  
Ä	
  360M users in
2011
Surpassed by Gmail
2012 (450M)

Ä	
  Sold to
Microsoft for
$400M
	
  
Skype: Need invites to

CONSUME VALUE
•  Users can only benefit if
they bring their contacts
•  Free Press
•  Co-branding with device
manufacturers

Ä  23 million users
in 1st 18 months
Ä  34% market share
of int. calls
Ä  Sold to eBay for
$2.5B
Ä  Sold to MS $8.5B
	
  
Dropbox

INCENTIVES
Invite a friend to get 500 MB
free space
back at 2004 when memory was very
expensive

Ä	
  175M users
07/2013
Ä	
  Valued at $4B+
	
  
Spotify: Integration with

FACEBOOK
Every time a user played a song
the song title & link to Spotify
showed up on the user's
Facebook feed

Ä	
  >24M active users
Ä	
  Paying subscribers
>6M
(>20%!)

Ä	
  Valued at $5.3B
(2013)
	
  
AirBNB: a

TRIPLE HACK
1.  Kick-off hack: professional
photo shootings for new
listings
2.  API hack: a remarkable
Craigslist integration
3.  PR Hack: Hurricane Sandy
hosting, joint press release
with the NY major

Ä	
  10M bookings (2012)
Ä	
  200K active
properties (2012)

Ä	
  Valued at $2.5B
(2012)
	
  
MANY OTHER TRAFFIC HACKS
§  Content

(Blogging & guest
blogging, podcasts, Ebooks, guides, white
papers, infographics,
webinars,
conferences…)

§ 
§ 
§ 
§ 
§ 
§ 
§ 

SEO
Social media
Contests
Market places
Deal sites
LOPA
Paid (LTV >
CAC): ads,
affiliates
§  API
integrations
§  Social sharing

Noah Kagan: hands-on tactics for 1st 100k users
§  Barter with companies with similar audience
(e.g. exchange mailing)
§  Meetup groups (200-1,000 person mailing
lists)
§  See with owners of Facebook pages if you can
do contests for an in-kind trade
§  Leave comments on subreddit related to your
biz
§  Search 5-10 keywords related to you on Google
and leave comments on those related pages
§  Email your existing users asking for
referrals. Hardly ANYONE does it
§  Leave video responses on popular YouTube
videos
§  Manually reach out to Twitter / Facebook
followers of your competitors
§  Channels with less competition (e.g.
snapchat, pinterest, instagram…)
§  Consider going international where traffic is
cheaper
§  Evaluate mobile marketing since it's more
affordable (less competition)
2 ACTIVATION

Case Studies: Hacks for
	
  
Unbounce

LANDING PAGES

4K paying customers
Our Growth Will Come From TV
Integration And Better Onboarding
Dick Costolo, CEO	
  

#users 554M, #daily
signups 135K
#daily tweets 58M

Advertising revenue
(proj. 2013): $400M
Valued at $18B
3 RETENTION

Case Studies: Hacks for
	
  
Foursquare:

GAMIFICATION
Ä	
  40M+ users
Ä	
  4.5B+ check-ins
Ä	
  1.5M+ using the
Merchant Platform
Ä	
  Valued at $600M
2011
	
  
LinkedIn: Gamification and

MUCH MORE

Ä	
  200M members
Ä	
  $1.2B revenue,
valued at $26B
	
  
Zappos: insane customer

SERVICE
ü  Sent flowers to a woman who
ordered 6 pairs of shoes due to
health problems
ü  Got shoes from a rival store for
a woman staying at a hotel
when Zappos ran out of stock
ü  Overnighted a free pair of
shoes to a best man
ü  The longest call reported is 10
hours 29 minutes…

	
  
Ä	
  2008 $1B in sales
Ä	
  2009 Sold to
Amazon for $1.2B
	
  
4

Case Studies: Hacks for
	
  

REVENUE
Groupon: users as

AFFILIATES
ü  A free deal (no matter how
much) if you get 3 friends to
buy
ü  50% gross margin
ü  This deal cost “just” 33%

Ä	
  170M deals and 33M
users 2012
Ä	
  Revenue 2012
$5.38B, up 24% yearover-year
Ä	
  Market cap $6,86B
	
  
Booking.com cocktail mix of

SCARCITY TACTICS
ü  Last booked by…
ü  # people are looking
at it now
ü  Last X rooms at this
price
ü  Book & cancel for
free

Ä	
  363,208 hotels, 24M+
reviews, 30M uniques
Ä	
  2005 acquired by
Priceline for $135M
helping to catapult Priceline from
a profit of $10M in 2003 to a
profit of $1.7B income before tax
in 2012
	
  
How to get

STARTED
1	
  PRODUCT-MARKET FIT
Establish

Before scaling
2	
  MINDSET

Adopt growth hacking

Blending of product and marketing

ü  Build stuff people want, frictionless user experience
ü  Stop trying to buy attention
ü  Start building a self-perpetuating growth machine

Experimentation

ü  Use your strengths and your imagination
ü  Make mistakes early
ü  In data we trust

Commitment & relentless focus on growth
3	
  FUNNEL ANALYTICS
Install

“86%	
  of	
  all	
  my	
  experiments	
  fail”,	
  —	
  Noah	
  Kagan	
  
4	
  EXPERIMENTS
Start

Milk every experiment for what it’s worth!
5	
  

Understand your business

NUMBERS

Growth can also
kill a business

before activating your growth machine
THIS MEETUP IS
A GROWTH HACK J
Cost of getting you here was $19. total
Room & catering is courtesy of our sponsors

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Growth Hacking Belgium (kick-off)

  • 1. Introduction to GROWTH HACKING Looking for a big time leverage Omar Mohout @omohout, omar.mohout@sirris.be Vladimir Blagojevic, @VladBlagi, vladimir@113labs.com Jessie Dedecker, @jesterman, jessie@113labs.com
  • 2. WHAT is Growth Hacking? Acquiring and retaining customers by discovering levers for repeatable and scalable growth starting from the product and be guided by data Discovering the most effective path to reach a market and distribute a product or service
  • 3. The rise of the GROWTH HACKER Marketer Developer Growth hacker Data Analyst
  • 6. Nothing kills a bad product faster than good advertising Jerry Della Famina
  • 8. Is Growth Hacking another term for MARKETING?
  • 9. Marketing  ≠  Growth Hacking   TheFamily
  • 10. LEVERAGE The power of small increments, combined € = (Acquired leads) * (% conversion rates) * Revenue length of sales (1 + 5%) * (1 + 5%) * (1 + 5%) 1 – 5% 22% increase in €
  • 11. VIRALITY ü  Inherent virality is built into the product, and happens as a function of use ü  Artificial virality is forced, and often built into a reward system ü  Word of mouth virality is simply conversations generated by satisfied users
  • 12. Virality COEFICIENT Acquisition X Viral Coefficient – Churn > 1 100 users sending 500 invites §  §  §  §  §  Invitation rate = 5 Every 10 invites, 1 activation Conversion rate = 0.1 Viral coefficient: 5 x 0.1 = 0.5 = 50% Every 2 existing customers gets you 1 new customer §  Cycle time: how long before they invite somebody? §  After 1 month with a cycle time of 2 days: 43.789 users §  After 1 month with a cycle time of 1 days: 19.175.105 users!
  • 13. The magic of EXPONENTIAL Growth Weekly 1% Yearly 4 years x 1.7 €7,900 /month 2% x 2.8 €61K /month 5% x 12.6 €25M /month 7% x 33.7 €1.3B /month 10% x 142 €407B /month
  • 15. SAAS ü  Numerically driven business ü  A small tweak to a number like churn can have a very big impact Ä“quant” (i.e. a numbers oriented type of person) a valuable hire in a SaaS business
  • 16. GROWTH HACKING MARKETING ü  Growth hacking is innovative and different (in your market) ü  Product-channel fit ü  No tradeoff between market coverage and control Ä the product is the channel
  • 19. The importance of ACTIONABLE Goals X2 credit:  Neil  Patel     quicksprout.com    
  • 23. Hotmail SIGNATURES “PS: I love you. Get your free email at Hotmail” Ä 6 months later 1M users Ä One year later 10 million   Ä  360M users in 2011 Surpassed by Gmail 2012 (450M) Ä  Sold to Microsoft for $400M  
  • 24. Skype: Need invites to CONSUME VALUE •  Users can only benefit if they bring their contacts •  Free Press •  Co-branding with device manufacturers Ä  23 million users in 1st 18 months Ä  34% market share of int. calls Ä  Sold to eBay for $2.5B Ä  Sold to MS $8.5B  
  • 25. Dropbox INCENTIVES Invite a friend to get 500 MB free space back at 2004 when memory was very expensive Ä  175M users 07/2013 Ä  Valued at $4B+  
  • 26. Spotify: Integration with FACEBOOK Every time a user played a song the song title & link to Spotify showed up on the user's Facebook feed Ä  >24M active users Ä  Paying subscribers >6M (>20%!) Ä  Valued at $5.3B (2013)  
  • 27. AirBNB: a TRIPLE HACK 1.  Kick-off hack: professional photo shootings for new listings 2.  API hack: a remarkable Craigslist integration 3.  PR Hack: Hurricane Sandy hosting, joint press release with the NY major Ä  10M bookings (2012) Ä  200K active properties (2012) Ä  Valued at $2.5B (2012)  
  • 28. MANY OTHER TRAFFIC HACKS §  Content (Blogging & guest blogging, podcasts, Ebooks, guides, white papers, infographics, webinars, conferences…) §  §  §  §  §  §  §  SEO Social media Contests Market places Deal sites LOPA Paid (LTV > CAC): ads, affiliates §  API integrations §  Social sharing Noah Kagan: hands-on tactics for 1st 100k users §  Barter with companies with similar audience (e.g. exchange mailing) §  Meetup groups (200-1,000 person mailing lists) §  See with owners of Facebook pages if you can do contests for an in-kind trade §  Leave comments on subreddit related to your biz §  Search 5-10 keywords related to you on Google and leave comments on those related pages §  Email your existing users asking for referrals. Hardly ANYONE does it §  Leave video responses on popular YouTube videos §  Manually reach out to Twitter / Facebook followers of your competitors §  Channels with less competition (e.g. snapchat, pinterest, instagram…) §  Consider going international where traffic is cheaper §  Evaluate mobile marketing since it's more affordable (less competition)
  • 31. Our Growth Will Come From TV Integration And Better Onboarding Dick Costolo, CEO   #users 554M, #daily signups 135K #daily tweets 58M Advertising revenue (proj. 2013): $400M Valued at $18B
  • 33. Foursquare: GAMIFICATION Ä  40M+ users Ä  4.5B+ check-ins Ä  1.5M+ using the Merchant Platform Ä  Valued at $600M 2011  
  • 34. LinkedIn: Gamification and MUCH MORE Ä  200M members Ä  $1.2B revenue, valued at $26B  
  • 35. Zappos: insane customer SERVICE ü  Sent flowers to a woman who ordered 6 pairs of shoes due to health problems ü  Got shoes from a rival store for a woman staying at a hotel when Zappos ran out of stock ü  Overnighted a free pair of shoes to a best man ü  The longest call reported is 10 hours 29 minutes…   Ä  2008 $1B in sales Ä  2009 Sold to Amazon for $1.2B  
  • 36. 4 Case Studies: Hacks for   REVENUE
  • 37. Groupon: users as AFFILIATES ü  A free deal (no matter how much) if you get 3 friends to buy ü  50% gross margin ü  This deal cost “just” 33% Ä  170M deals and 33M users 2012 Ä  Revenue 2012 $5.38B, up 24% yearover-year Ä  Market cap $6,86B  
  • 38. Booking.com cocktail mix of SCARCITY TACTICS ü  Last booked by… ü  # people are looking at it now ü  Last X rooms at this price ü  Book & cancel for free Ä  363,208 hotels, 24M+ reviews, 30M uniques Ä  2005 acquired by Priceline for $135M helping to catapult Priceline from a profit of $10M in 2003 to a profit of $1.7B income before tax in 2012  
  • 41. 2  MINDSET Adopt growth hacking Blending of product and marketing ü  Build stuff people want, frictionless user experience ü  Stop trying to buy attention ü  Start building a self-perpetuating growth machine Experimentation ü  Use your strengths and your imagination ü  Make mistakes early ü  In data we trust Commitment & relentless focus on growth
  • 42. 3  FUNNEL ANALYTICS Install “86%  of  all  my  experiments  fail”,  —  Noah  Kagan  
  • 43. 4  EXPERIMENTS Start Milk every experiment for what it’s worth!
  • 44. 5   Understand your business NUMBERS Growth can also kill a business before activating your growth machine
  • 45. THIS MEETUP IS A GROWTH HACK J Cost of getting you here was $19. total Room & catering is courtesy of our sponsors