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What is growth marketing?
The document provides an overview of growth marketing, emphasizing the importance of optimizing customer acquisition, activation, retention, revenue, and referral. It discusses the roles of growth marketers and illustrates various case studies, including Zapier and Robinhood, demonstrating effective strategies for improving retention and acquisition costs. The need for experimental approaches and continuous optimization in different marketing channels is also highlighted.
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What is growth marketing?
- 1. What is growth marketing? KareemAzees Growth Marketing, Houzz Pro
- 2. About me Growth marketerwith 6+ years of experience Lover of all things marketing (especially SaaS!) Worked at Autodesk, Kujiale (2021 IPO), now at Houzz
- 3. Disclaimer Growth marketing maylook different for every company.
- 4. Marketers in tech generallysit within one of these teams Product 1 Creating core value and optimizing time to value Product Marketing 2 Positioning the product against competitors, developing personas and pricing Growth 3 Building brand, owning acquisition and engagement channels, analytics
- 5. Andy Johns Partner, UnusualVentures Previously growth leader at Facebook, Twitter, Quora, Wealthfront Finance owns the flow of cash in and out of a company. Growth owns the flow of customers in and out of a product. Source
- 6. Chamath Palihapitiya SPAC King,Founder of Social Capital Previously growth leader at Facebook How do you get people in the front door? How do you get them to an aha moment as quickly as possible? How do you deliver core product value as often as possible? Three most difficult problems any consumer product has to deal with: 1. 2. 3. Source
- 7. Growth marketers work acrossthe whole customer journey Acquisition Create and capture demand Activation Get to an aha moment Retention Continued engagement Revenue Monetize Referral Tell others
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- 9. How do customersfind you? CHANNELS Family and friends Referrals Email Customer community Watercooler communities Reseller/Partners Search engine optimization/content Outbound Search engine marketing Online advertising Offline advertising Events Podcasts EXPLANATION People you know Word of mouth and referral programs Welcome emails, onboarding emails, campaigns Slack channels, Facebook groups ProductHunt, HackerNews, Reddit, vertical specific communities Third party integrations, resellers, affiliates Keyword optimized content Sales team Paid search Targeted ads across web properties Out of home advertising like billboards Trade shows and offline events Hosting a podcast
- 10. Channels come andgo... what works today may not work tomorrow Source
- 11. Start-ups don't needevery channel to work for them, but if they can't get one to work, they fail Justin Kan Founder of Socialcam (acq. by Autodesk), Twitch (acq. by Amazon) and Atrium (failed)
- 12. Case study: Zapieris an automation company. They help people to seamlessly connect web apps.
- 13. Case study: People arealready searching for integrations. Just need to build landing pages for the integrations and continue expanding their app library. Source
- 14. Case study: New app partners Newintegrations and landing pages SEO drives new users -------> - - - - - - - > - - - - - - - > This demonstrates the concept of a growth loop.
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- 16. When a userunderstands your core product value. Uber DoorDash Notion Canva Hinge First ride taken First meal ordered First page created Editing a photo First conversation Company Aha moment
- 17. Many ways toactivate users Homepage/landing page messaging and creative New user product experience Email, SMS, push nurture flows
- 18. Case study: Twitter isa social networking site with the mission to give everyone the power to create and share ideas and information instantly, without barriers. Imagine joining a social network and having no connections, followers, and a blank feed. It'd be hard to understand the value of it. Source
- 19. Case study: Follow5 people in onboarding through suggestions. Now when they onboard into the platform, their feed is filled with content.
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- 21. Retention is theability of a company to retain its customers over a given period of time
- 22. Retention is themost important strategy related to growth It's 5 to 25 times more expensive to acquire a new customer than it is to retain an existing one. 5% lift in retention increases profits by 25-95%. Source
- 23. Tom Tunguz VC, Redpoint Churnis a limiting factor on the business. Like fiction, at some scale, churn will prevent the business from growing. To maintain the subscription revenue from the existing customer base requires ever greater mountains of cash. A $20 million ARR business losing 50% of its customers every year will have to replace $10 million worth of customers each year to achieve 0% growth. Assuming 18 month payback, that’s $15M in sales and marketing spend. That means the business will be fundraising constantly. Source
- 24. Higher retention ratesleads to higher lifetime value, acquisition budgets, virality, and lower payback periods Source
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- 26. Case study: SketchBook isa digital sketching application for creative artists. Goal was to drive repeat usage, which would improve retention rate.
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- 30. How do Imake more money? Pricing and pricing page optimizations Upsell Cross sell
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- 32. Case study: The Economistis a longstanding digital newspaper that focuses on current affairs, international business, politics, and technology. The economist used price anchoring to get people to buy their preferred subscription. Book source
- 33. Case study: Dan Arielytook the ad and ran it by 100 MIT students
- 34. Case study: Dan Arielyran this variant by 100 different MIT students An inferior choice makes a similar but superior choice look better even when other options are cheaper.
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- 36. When people love yourproduct, they'll refer others. Growth marketers create referral programs to incentivize this.
- 37. Case study: Robinhood isa stock trading app that aims to democratize finance for all. Double sided reward - referrer and referee Like playing the lottery - get up to a $500 stock 80% of new accounts come organically Acquisition cost payback period improved from 13 months in 2019 to now <5 months in 2020 Robinhood's referral program:
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- 39. Full funnel viewRun experiments Optimize time to value Many different functions Work across and think about the entire funnel Come up with ideas, run tests to validate them Figure out how to connect user to value as soon as possible Can work across different functions, depending on the size of the company Summary
- 40. I'm leading aSkillful sprint! how to pick the right acquisition channel for the business how to break down competitor strategies to inform your own how to think like a growth marketer If you want to learn: Join me :)
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