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Sean Ellis discusses growth hacking and how startups can take their business to the next level. He explains that growth hacking is not magic, but rather a rigorous process of experimentation involving generating ideas, prioritizing tests, running experiments, analyzing results, and optimizing what works best. Ellis provides examples of how companies like Dropbox, LinkedIn, and Airbnb grew through innovative experiments and by reverse engineering the growth strategies of successful startups. He emphasizes that growth requires testing many ideas, focusing on increasing user gratification, and relentlessly executing the growth hacking process.

Marketing

Growth Hacking Magic?
Sean Ellis
September 17, 2014
CEO of Qualaroo,
GrowthHackers.com
Twitter @seanellis
Going Beyond the Hype to Take Your
Business to the Next Level

Extreme Competition for Attention
@seanellis
$160
$140
$120
$100
$80
$60
$40
$20
$0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
US Online Ad
Spend per User
3.5x

Rapidly Evolving Channels
MySpace
Twitter
Craigslist
@seanellis
120
100
80
60
40
20
0
WOM
Email
Facebook
iOS
Android
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
James Currier

Yet Some Huge Startup Successes
Little or no traditional
marketing…
@seanellis

No – Rigorous Process of Experimentation
1. Ideas
2.Prioritize
5.Optimize
4.Analyze 3.Test
@seanellis

The Dropbox Growth Story
@seanellis
• Freemium reduced allowable CPA
• Natural advantages to grow with
collaboration and sharing
• Catalyze sharing with double sided
referral program
• Optimize conversions on sharing
loops
• 300 million users with no traditional
marketing

Desperation Drove Startups to Innovate
• Aggressive targets, tight resources
• Traditional approach not realistic
@seanellis
• Had to rethink growth…

The Growth Hacking Playbook
• Experiment with all
available growth levers
• Understand what’s
driving growth, test to
improve it
• Heavy focus on product
and optimization
http://www.michiganemploymentlawadvisor.com/

B2B or B2C?
• Growth hacking isn’t just for consumer-focused
@seanellis
companies.
• B2B often requires integration with sales process.

HubSpot’s Growth Hack – Free Tools
@seanellis

Yammer – Engineered User-Get-User
@seanellis

LinkedIn - Engineered User-Get-User
@seanellis

PUTTING GROWTH HACKING TO
WORK FOR YOUR BUSINESS
@seanellis

Finding Your Own Growth Hacks
@seanellis
• Areas of exploration
• Process, team and tools

Some Areas of Exploration
• Platform integrations
• Engineered user-get-user
• Free tools
Examples
25+ M users
@seanellis

Areas of Exploration (Cont)
• Powered by
• Reverse engineer success
Examples
@seanellis

Success Data: Airbnb’s Pro Photos
• Airbnb discovered that
listings with high-quality
photos received 2-3x
bookings
• Airbnb invested in
professional photography
• Booking activity explodes
as desire increases
@seanellis

Other Growth Studies for Inspiration
@seanellis

Experimentation is Key to Success
• Generate many ideas for experiments
• Prioritize by impact, confidence & effort
• Balance high impact & high probability tests
@seanellis

Double Down on Success
• Challenge is not finding
many channels that work,
but rather finding one.
• Often your best growth
opportunity is to double
down on what’s already
working.

Growth Team Often Needed
“Growth team” complements existing marketing team
@seanellis
• Multi-disciplinary
• Cross functional
• Evangelize experimentation
culture

Some Helpful Tools
• Analytics — Identify drop-off points and under-performing
pages (e.g. Google Analytics,
@seanellis
KISSMetrics)
• Qualitative Insights — Uncover the why behind the
numbers (e.g. Qualaroo, SurveyMonkey)
• A/B Test — Find better performing combinations to
drive conversion rate (e.g. Hubspot, Optimizely)

Relentless Execution of Growth Process
1. Ideas
@seanellis
2.Prioritize
5.Optimize
4.Analyze 3.Test

Key Takeaways
• Emerging marketing challenges require all to rethink growth
• Growth hacking is based experimentation, not silver bullets
• Add process/team to maximize number of experiments
• Get inspiration from data, VOC and what’s working for others
@seanellis

Questions?
THANK YOU.
Sean Ellis
CEO of Qualaroo
& GrowthHackers.com
Twitter: @seanellis

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1. Growth Hacking Magic? Sean Ellis September 17, 2014 CEO of Qualaroo, GrowthHackers.com Twitter @seanellis Going Beyond the Hype to Take Your Business to the Next Level

2. About Me • Founder/CEO of Qualaroo & GrowthHackers.com • Previously VP Marketing from customer zero to NASDAQ IPO filing at LogMeIn and Uproar.com • Then interim marketing exec roles at Dropbox, Lookout and Eventbrite

3. Extreme Competition for Attention @seanellis $160 $140 $120 $100 $80 $60 $40 $20 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US Online Ad Spend per User 3.5x

4. Rapidly Evolving Channels MySpace Twitter Craigslist @seanellis 120 100 80 60 40 20 0 WOM Email Facebook iOS Android 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 James Currier

5. Yet Some Huge Startup Successes Little or no traditional marketing… @seanellis

6. GROWTH HACKING MAGIC? @seanellis

7. No – Rigorous Process of Experimentation 1. Ideas 2.Prioritize 5.Optimize 4.Analyze 3.Test @seanellis

8. The Dropbox Growth Story @seanellis • Freemium reduced allowable CPA • Natural advantages to grow with collaboration and sharing • Catalyze sharing with double sided referral program • Optimize conversions on sharing loops • 300 million users with no traditional marketing

9. Desperation Drove Startups to Innovate • Aggressive targets, tight resources • Traditional approach not realistic @seanellis • Had to rethink growth…

10. The Growth Hacking Playbook • Experiment with all available growth levers • Understand what’s driving growth, test to improve it • Heavy focus on product and optimization http://www.michiganemploymentlawadvisor.com/

11. B2B or B2C? • Growth hacking isn’t just for consumer-focused @seanellis companies. • B2B often requires integration with sales process.

12. HubSpot’s Growth Hack – Free Tools @seanellis

13. Yammer – Engineered User-Get-User @seanellis

14. LinkedIn - Engineered User-Get-User @seanellis

15. PUTTING GROWTH HACKING TO WORK FOR YOUR BUSINESS @seanellis

16. Finding Your Own Growth Hacks @seanellis • Areas of exploration • Process, team and tools

17. Some Areas of Exploration • Platform integrations • Engineered user-get-user • Free tools Examples 25+ M users @seanellis

18. Areas of Exploration (Cont) • Powered by • Reverse engineer success Examples @seanellis

19. Success Data: Airbnb’s Pro Photos • Airbnb discovered that listings with high-quality photos received 2-3x bookings • Airbnb invested in professional photography • Booking activity explodes as desire increases @seanellis

20. Other Growth Studies for Inspiration @seanellis

21. Experimentation is Key to Success • Generate many ideas for experiments • Prioritize by impact, confidence & effort • Balance high impact & high probability tests @seanellis

22. GOAL: INCREASED UNITS OF GRATIFICATION

23. Double Down on Success • Challenge is not finding many channels that work, but rather finding one. • Often your best growth opportunity is to double down on what’s already working.

24. Growth Team Often Needed “Growth team” complements existing marketing team @seanellis • Multi-disciplinary • Cross functional • Evangelize experimentation culture

25. Some Helpful Tools • Analytics — Identify drop-off points and under-performing pages (e.g. Google Analytics, @seanellis KISSMetrics) • Qualitative Insights — Uncover the why behind the numbers (e.g. Qualaroo, SurveyMonkey) • A/B Test — Find better performing combinations to drive conversion rate (e.g. Hubspot, Optimizely)

26. Relentless Execution of Growth Process 1. Ideas @seanellis 2.Prioritize 5.Optimize 4.Analyze 3.Test

27. Key Takeaways • Emerging marketing challenges require all to rethink growth • Growth hacking is based experimentation, not silver bullets • Add process/team to maximize number of experiments • Get inspiration from data, VOC and what’s working for others @seanellis

28. Questions? THANK YOU. Sean Ellis CEO of Qualaroo & GrowthHackers.com Twitter: @seanellis

Editor's Notes

Requires really understanding how customers get a great experience…

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Editor's Notes