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Emails
&
Alerts
Blogs,
Content
System
Events
&
Time-‐
based
Features
Biz
Dev
Ads,
Lead
Gen,
SubscripBons,
etc
Emails
&
widgets
Campaigns,
Contests
Homepage
/
Landing
Page
Product
Features
SEO
SEM
Apps
&
Widgets
Affiliates
Email
PR
Biz
Dev
Campaigns,
Contests
Direct,
Tel,
TV
Social
Networks
Blogs
Domains
AARRR Funnel: Customer Lifecycle / Conversion Behavior
@polvallssoler
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BLOG EXAMPLE
Acquisition -‐ users come to the site from a search engine
Activation -‐ user signs up for RSS/newsletter or stays for at least 5 minutes
Retention -‐ user reads at least one post a week or opens the newsletter
Referral -‐ user promotes your blogs contests and drives traffic
Revenue -‐ user buys your ebook
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SAAS EXAMPLE
Acquisition – user comes to our landing from a FB ad
Activation -‐ user successfully makes a document
Retention -‐ user continues to make documents. As long as they're
successfully making documents they will continue to use the service.
Referral – Users send other users to our web, possibly with a coupon code
Revenue -‐ yay! money!
(﴾Web-‐based app to convert HTML to PDF or Excel documents)﴿
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AARRR Funnel: Customer Lifecycle / Conversion Behavior
Emails
&
Alerts
Blogs,
Content
System
Events
&
Time-‐
based
Features
Biz
Dev
Ads,
Lead
Gen,
SubscripBons,
etc
Emails
&
widgets
Campaigns,
Contests
Homepage
/
Landing
Page
Product
Features
SEO
SEM
Apps
&
Widgets
Affiliates
Email
PR
Biz
Dev
Campaigns,
Contests
Direct,
Tel,
TV
Social
Networks
Blogs
Domains
@polvallssoler!
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ACQUISITION
Extra tip: Reverse Engineered App Store’s ranking algorithm
(﴾approximation)﴿
AppStore Ranking = H + D + R + E + S
H = # of installs weighted for the past few hours
D = # of installs weighted for the past few days
R = Reviews (﴾star rating + number of reviews)﴿
E = Engagement (﴾# of times app opened etc.)﴿
S = Sales (﴾$)﴿
25. linkedin.com/in/polvallssoler! @polvallssoler! slideshare.net/polvallssoler!
Extra tip: Reverse Engineered App Store’s ranking algorithm
(﴾approximation)﴿
AppStore Ranking = H + D + R + E + S
H = # of installs weighted for the past few hours
D = # of installs weighted for the past few days
R = Reviews (﴾star rating + number of reviews)﴿
E = Engagement (﴾# of times app opened etc.)﴿
S = Sales (﴾$)﴿
Luck? AppStore Bot? Dark pattern?
ACQUISITION
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ACTIVATION
Key metrics to track:
• Pages per visit (﴾2-‐3+ page views)﴿
• Time on site (﴾10-‐30+ seconds)﴿
• Conversions (﴾1 key feature usage)﴿
• Clicks (﴾3-‐5+ clicks)﴿
• Bounce rate (﴾low)﴿
Activation Tips:
• Less is more
• Focus on UX / Usability
• Provide incentives & call to actions
• Perform A/B tests and iterate fast
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CLV or LTV (﴾Customer Lifetime Value)﴿
In most SaaS businesses, the gross margin % is high (﴾above
80%)﴿, and it’s quite common to use the simpler version of
the formula that is not Gross Margin adjusted.
To truly get an accurate picture of LTV, you should
take into consideration Gross Margin:
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a = initial ARPA per month (﴾ x GM %, if you prefer)﴿
m = monthly growth in ARPA per account
c = Customer Churn Rate (﴾in months)﴿
CLV or LTV in a More Complex Scenario
(﴾Where you expect ARPA to change over the lifespan
of the customer due to expansion revenue)﴿
(﴾This formula makes an assumption that revenue increases at a roughly
fixed rate every month for the entire lifetime of the customer)﴿
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Dropbox REFERRAL & REVENUE
Dropbox growth hack in numbers…
1. September 2008: 100,000 registered users
2. January 2010 (﴾15 months later)﴿: 4,000,000
3. Mostly from word-‐of-‐mouth and viral:
• 35% of daily signups from referral program
• 20% from shared folders, other viral features
• Sustained 15-‐20%+ month-‐over-‐month growth since launch
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Linkedin ACQUISITION & REFERRAL
This person passed away about a year ago. For the
majority of her life, she ran a small hardware shop
and she barely understood email, let alone LinkedIn.
From Linkedin’s People You May Know page…
(﴾NOT THE BEST THING TO DO… people can hate you)﴿
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Reverse Engineered App Store’s ranking algorithm (﴾approximation)﴿
AppStore Ranking = H + D + R + E + S
H = # of installs weighted for the past few hours
D = # of installs weighted for the past few days
R = Reviews (﴾star rating + number of reviews)﴿
E = Engagement (﴾# of times app opened etc.)﴿
S = Sales (﴾$)﴿
ACQUISITION
87. linkedin.com/in/polvallssoler! @polvallssoler! slideshare.net/polvallssoler!
Reverse Engineered App Store’s ranking algorithm (﴾approximation)﴿
AppStore Ranking = H + D + R + E + S
H = # of installs weighted for the past few hours
D = # of installs weighted for the past few days
R = Reviews (﴾star rating + number of reviews)﴿
E = Engagement (﴾# of times app opened etc.)﴿
S = Sales (﴾$)﴿
Luck? AppStore Bot? Dark pattern?
ACQUISITION
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ACQUISITION
1-‐ Setup domain with a WordPress news theme.
2-‐ Hire writers to rewrite news articles for $2 each.
(﴾Avoid copying to ensure “journalistic quality”.)﴿
3-‐ Start with 150 back-‐dated articles to show that
the site has some momentum.
4-‐ Setup a nice logo and real phone number.
5-‐ Double check that the site complies with the
Google webmaster guidelines.
6-‐ Submit for approval.
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It doesn’t need to be online (﴾initially)﴿
-‐ 1 Private domain (﴾forwarded to affiliate link)﴿ -‐ made a very easy domain name -‐ $23
-‐ 1,000 copies (﴾cut into 4 = 4,000 flyers)﴿ -‐ $40
-‐ 2 custom tshirts -‐ $50
-‐ 2 promo girls (﴾$20/hr each x 4 hrs = 8 hours total)﴿ -‐ $160
-‐ 2 accounts on the hook up site (﴾trial)﴿ -‐ $10
Total Advertising Cost = $283
Hand out all 4,000 flyers + do some heavy flirting
113. linkedin.com/in/polvallssoler! @polvallssoler! slideshare.net/polvallssoler!
It doesn’t need to be online (﴾initially)﴿
-‐ 1 Private domain (﴾forwarded to affiliate link)﴿ -‐ made a very easy domain name -‐ $23
-‐ 1,000 copies (﴾cut into 4 = 4,000 flyers)﴿ -‐ $40
-‐ 2 custom tshirts -‐ $50
-‐ 2 promo girls (﴾$20/hr each x 4 hrs = 8 hours total)﴿ -‐ $160
-‐ 2 accounts on the hook up site (﴾trial)﴿ -‐ $10
Total Advertising Cost = $283
Hand out all 4,000 flyers + do some heavy flirting
Got 118 conversions (﴾2,95% conversion rate)﴿ -‐>
118 x $45 payout = $5,310 Revenue -‐ $283 cost
= $5,027 PROFIT!