PM Growth Playbook: Growth Framework + Product Core Loop
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Growth Framework - 4 steps to positioning your product for growth Product Core Loop Framework - How to build engaging products
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PM Growth Playbook: Growth Framework + Product Core Loop
- 1. Strategizing for Growth PM @qualtrics, Data Driven Product Management Shek Viswanathan
- 2. Shek Viswanathan abishekv@qualtrics.com Product Management
- 3. How do you know if your enjoy your The Big Question players, customers, users playing, using game, product, service ?>< >< ><
- 4. Understanding and improving your product health comes down to breaking customer signals into a suite of metrics and identifying key levers that drive growth.
- 5. Understand the Core Loop Model for Growth Identify Leverage Growth Playbook Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
- 6. Understand the Core Loop Model for Growth Identify Leverage 1. Understand the Core Loop Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
- 7. What constitutes a Core Loop? Playing Words Playing Hands Posting Grammin'
- 8. Completing the core loop is correlated to long term retention. Someone who plays a Word in 24 hours after install, is more likely to return next week than someone who doesn’t. User with 7 friends in 10 days likely to retain forever Measuring core loop engagement is key to understanding product health
- 9. Only core action will not do. Other features that complement the core loop need to be monitored. Creating a game with others Adding Friends, posting pictures, status updates, etc
- 10. What is a Product Core Loop? Inner Loop Outer Loop Low Investment Daily Habit Medium/High Investment Trigger Notification, User Initiated Activity Passive, Active Start Task User Initiated Complete Cross a milestone Minor Reward Major Reward
- 11. 2. Modeling for Growth Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
- 12. Now that we know what core loop action to measure, how do we build a model for growth?
- 13. Modeling Audience Growth v1: Installs + Retention = DAU Modeling Audience Growth v2: Over time WAU * Engagement = DAU Modeling Revenue Growth v1: DAU * % Converting * ARPPU = Revenue Building the model Similar models can be built for lower frequency products such as Travel or Payments Choosing a right platform to measure and instrument metrics is as important as the act of measurement
- 14. A model can look like this over time… Retention Return Rates Activations Lapsers Reactivations Engagement Cohorts New Users Returning Users Payers High Value Payers High, Med, Low Engaged Txn size, Conversion
- 15. So, now you know how to measure the core loop, and also have a model for growth. How do you iterate towards success state?
- 16. Success state is usually a single metric (often termed the Northstar Metric) or a suite of metrics that are directly correlated with growth. Product teams set goals for success state and rally the team around those goals. Example: Grow Active Users by x% YoY Success State
- 17. 3. Identify Leverage Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
- 18. Understanding where your product is in its life cycle is important to establish what levers to pull to inflect growth.
- 19. Early Stage Product Life Cycle Mature Product Growth Stage Activation Core Loop Engagement Early Retention & Monetization Stability in core metrics Long Term Retention Monetization Virtuous Loops & Virality Identify Leverage Optimize Grow LTV Time Audience/ Revenue
- 20. Product A adds 100k new users every day and retains 5% of users after 30 days. Product team has two ideas for features Feature A - Increasing virality (installs) Feature B - Increasing retention (D30) What would you do?
- 21. In 1 Quarter Feature A: Hits 2.5M Users, with 5% D30 retention Feature B: Hits 2.1M Users, with 15% D30 retention
- 22. In 1 Year Feature A: Product Hits 4M Users, with 5% D30 retention Feature B: Product Hits 5.5M Users, with 15% D30 retention
- 23. Once you’ve identified leverage points, switch your hat to that of a ruthless prioritizer and help the team prioritize and build the product roadmap.
- 24. 4. Building Product Roadmap Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
- 25. The fun begins.. Brainstorm Ideate Define Set Goals Add to List Prioritize BuildMeasure Iterate
- 26. We talked about 4 things… Understand the Core Loop Model for Growth Identify Leverage Prioritize and Build Step 4. Prioritize product features, build and iterate Step 3. Identify which KPI influence growth Step 2. Build a Growth Model based on core KPI from the product Step 1. Establish the core loop. Measure Core Loop Engagement
- 27. Question: Did all of this add up for the product over time? How do we measure this?
- 28. Most important health metric is LTV… Retention How long do your users retain? Is this improving with every cohort? Average Revenue per DAU What % of your users convert? How much do they spend per day/month? Lifetime Value Revenue that a customer will bring to your company over their life time
- 29. Is the core loop engagement getting stronger over time? Will manifest in stronger LTVs over time. Measuring LTV over time reveals changes in… If retention is getting stronger - each same sized cohort will generate more revenue over time. Engagement Retention Monetization Are users converting at the same levels over time? If average revenue per daily active user stabilizes or grows, it will show in increasing LTV.
- 30. Ultimately, breaking customer signals into a suite of metrics and identifying key leverage points is vital for strategizing and building a roadmap for growth.